Watch out for XMH's near-term growth spurt

43% growth forecasted in FY14.

"On top of a high 22% core growth driven by the orderbooks, the consolidation of MPG will raise FY14F growth to 43% vs FY13," said OSK-DMG in its latest XMH company update following the diesel engine distributor's latest 1QFY14 results.

XMH has started off the financial year in the right note, delivering a "healthy" set of 1QFY14 numbers, with its bottomline expanding 23% y-o-y. XMH's orderbook remains strong while there is now zero debt on the company’s balance sheet, reckoned OSK-DMG, and XMH is now hunting for more acquisitions on which to spend its huge cash pile.

"We are factoring in another 4% growth from the next acquisition, which leaves a lot of room for upward revisions," OSK-DMG added.

The current year is headed for a strong growth and stock price finish, said the property research firm, due to a number of catalysts.

"This year will catapult XMH’s ROE to 32%, in the absence of gearing. Contract wins by both XMH and MPG, and the unveiling of the next acquisition(s) are expected to perk up the stock price," said OSK-DMG.