Pelikan is an established German stationery brand and company since 1838. Today it is one of the leading and pioneers in writing instruments and stationery industry worldwide. Pelikan aims to create products that inspire creativity and imagination, encouraging people to express themselves in diverse ways, be it through painting, writing or drawing. Pelikan Group under the helm of Pelikan International Corporation Berhad manufactures and distributes Pelikan products to over 160 countries and runs 5 manufacturing facilities worldwide.
Fundamentally is has quite a solid business and good track financial performance record
As the business focuses on the supplies of stationary, we have to look at the overall demand of stationary especially during critical time i.e. starting of school seasons and reopening of educational institution post COVID-19.
However, it is still unclear of how will be the demand of stationary with the impact of digitalisation such as ipad for education . As for now we have seen a significant trend where university students starts to prefer ipad more than the traditional way of writing notes.
What do you think of this company? I have no doubt over the short term considering COVID-19 has brought the company value down due to the virality of the virus and lower demand following closure of businesses and schools. When the business and schools starts to re-open, I believe you will see a significant uptrend like what it has been doing for the last month.
However, on the long run, it is still debatable... We have seen COVID-19 changes the way people see technology. How does it change the consumer product demand/preference?
Fundamentally is has quite a solid business and good track financial performance record
- Market Cap: 228mil
- Last price: RM0.375
- EPS: 1.27 cent (OK)
- EPS @ 8.1: RM0.10 < current price
- PE Ratio: 29.53 OK
- ROE: 1.74 OK
- NTA: 0.730 (undervalue)
- Financially, the company has made a good consistent profit since 2015.
- The CEO, Loo Hooi Keat has been increasing his share recently showing a good sign that the business is recovering from the bottom from COVID-19 impact. Who knows better inside out other than the CEO itself?
As the business focuses on the supplies of stationary, we have to look at the overall demand of stationary especially during critical time i.e. starting of school seasons and reopening of educational institution post COVID-19.
However, it is still unclear of how will be the demand of stationary with the impact of digitalisation such as ipad for education . As for now we have seen a significant trend where university students starts to prefer ipad more than the traditional way of writing notes.
What do you think of this company? I have no doubt over the short term considering COVID-19 has brought the company value down due to the virality of the virus and lower demand following closure of businesses and schools. When the business and schools starts to re-open, I believe you will see a significant uptrend like what it has been doing for the last month.
However, on the long run, it is still debatable... We have seen COVID-19 changes the way people see technology. How does it change the consumer product demand/preference?