tag:blogger.com,1999:blog-294624822024-03-14T15:09:34.053+08:00nexttradeThis is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.comBlogger4264125tag:blogger.com,1999:blog-29462482.post-12507016744045277622022-02-22T08:04:00.001+08:002022-02-22T08:04:38.494+08:00GCB: Earnings Improved On Increased Sales Volume & Higher Profit Margins<p><b>Results Update</b></p>For QE31/12/2021, GCB's net profit rose 49% q-o-q or 8% y-o-y to RM51 million while revenue rose 9% q-o-q or 6% y-o-y to RM1.088 billion. Revenue rose y-o-y mainly due to increase in sales volume of cocoa products. Profits rose mainly due to improved margin.<br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgaFavuvOPj-fh207b46etnKmrcMvqDg3i2zdv-BsDTLsdRWvK3Lsogudh5ymwzyR97TPHBOtX2rN4PHTTELZB68ZDrczwIZevE2Fz1274nyrCLtqQm06SlC92WQcsrWh7kKUfqXQujU_zrC0d8TmfKhV42ynxRLuQ8xLjZ__N0AhTF4q6TGw=s960" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="472" data-original-width="960" height="157" src="https://blogger.googleusercontent.com/img/a/AVvXsEgaFavuvOPj-fh207b46etnKmrcMvqDg3i2zdv-BsDTLsdRWvK3Lsogudh5ymwzyR97TPHBOtX2rN4PHTTELZB68ZDrczwIZevE2Fz1274nyrCLtqQm06SlC92WQcsrWh7kKUfqXQujU_zrC0d8TmfKhV42ynxRLuQ8xLjZ__N0AhTF4q6TGw=s320" width="320" /></a><br /><i>Table: GCB's last 8 quarterly results</i><br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEj6E06Nyp9jMIa5grZ9zWWwWlPmB9SkTm6xTX1fFF2LlpirbJvNh9yxql5hmvVC6EA8TrrF2S_a7nVbPuaDjQquuZnSfsePgiqR7MtReAjVPkiHKCL1T_CGdBvjIJK_MWeyDzWSaT0x7SemZJHZnoxRkkmNHJ4Pykw46Ym8xts19MWFiNclzQ=s809" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="794" data-original-width="809" height="314" src="https://blogger.googleusercontent.com/img/a/AVvXsEj6E06Nyp9jMIa5grZ9zWWwWlPmB9SkTm6xTX1fFF2LlpirbJvNh9yxql5hmvVC6EA8TrrF2S_a7nVbPuaDjQquuZnSfsePgiqR7MtReAjVPkiHKCL1T_CGdBvjIJK_MWeyDzWSaT0x7SemZJHZnoxRkkmNHJ4Pykw46Ym8xts19MWFiNclzQ=s320" width="320" /></a><br /><i>Graph: GCB's last 69 quarterly results</i><br /><br /><b>Financial Position</b><br /><br />As at 31/12/2021, GCB's financial position is deemed fair while current ratio at 1.49 times and gearing ratio at 1.58 times. The high gearing was due to the suppliers' credit and bank borrowings taken to finance high inventory. The increase in inventory is attributable to weaker demand for cocoa butter in Europe and America. Cocoa butter is used in the production of chocolate, which has seen a drop in demand due to the pandemic. <br /><br /><b>Valuation</b><br /><br />GCB (closed at RM3.05 yesterday) is now trading at a trailing PER of 20 times (based on last 4 quarters' EPS of 15.03sen). At this PER, GCB is deemed fairly valued.<br /><br /><b>Technical Outlook</b><br /><br />Since the start of 2021, GCB has been trading sideways between RM2.60 and RM3.20. Until a breakout is attained, GCB is expected to be range-bound.<br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgrKCmHDwtVEQndvMxzxWwI_zsMcC-RatwpGCmHO4SK6KHhGpvsFHIz5WmezixSjxhm5X2IezqY2DUjOQNqZDdc53j-ZkHwReuZOMFppi3cG6deFrZbRLmOeDVPMLIBwDKIohNiN7FE2mBuJLSBMExRGM-FSlM3GmAwQwCUJhIJy5u43YqMmw=s1340" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="732" data-original-width="1340" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEgrKCmHDwtVEQndvMxzxWwI_zsMcC-RatwpGCmHO4SK6KHhGpvsFHIz5WmezixSjxhm5X2IezqY2DUjOQNqZDdc53j-ZkHwReuZOMFppi3cG6deFrZbRLmOeDVPMLIBwDKIohNiN7FE2mBuJLSBMExRGM-FSlM3GmAwQwCUJhIJy5u43YqMmw=s320" width="320" /></a><br /><i>Chart : GCB's weekly chart as at Feb 21, 2022 </i><i>(Source:<a href="https://www.isaham.my/stock/gcb"> isaham.my</a>)</i><br /><i><br /></i><b>Conclusion</b><br /><br />Despite the improved financial performance, GCB will likely remain in a dull holding pattern until a technical breakout is attained. <br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><b><i style="mso-bidi-font-style: normal;"><br /></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b><span style="font-style: italic; font-weight: bold; text-align: center;"> </span>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-81889408820990415322022-02-22T07:47:00.001+08:002022-02-22T07:47:23.753+08:00CSCSTEL: Earnings Soared On Higher Selling Prices<p><span style="font-weight: bold;">Results Update</span></p>For QE31/12/2021, CSCStel's net profit rose 290% q-o-q or 81% y-o-y to RM39 million while revenue rose 164% q-o-q or 45% y-o-y to RM532 million. The higher revenue was mainly due to significant increase in steel price, while the sales volume has reduced by 16.5% compared to preceding year’s corresponding quarter. Despite the decrease in sales volume, the Group reported a higher profit before tax of RM51 million in the current quarter, an increase of 77% compared with a profit before tax of RM29 million a year ago.<br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi7SRyoC9qnoiO-eihzyyrTxCJDbEZDVv2D5AFr1QLp8Bwi5IGTYRyDf1h79IO-xuw6eev8pqo2aRYIjd5Mg_ERmPJiNr6rp_ilXD_SC21lSCnmargjKWfxOalLKes1jNJqo8jb5VALQ6YscWMfoX1wqZ0cxrdz5iFSqOqwiwStW0DI3uC9gQ=s879" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="539" data-original-width="879" height="196" src="https://blogger.googleusercontent.com/img/a/AVvXsEi7SRyoC9qnoiO-eihzyyrTxCJDbEZDVv2D5AFr1QLp8Bwi5IGTYRyDf1h79IO-xuw6eev8pqo2aRYIjd5Mg_ERmPJiNr6rp_ilXD_SC21lSCnmargjKWfxOalLKes1jNJqo8jb5VALQ6YscWMfoX1wqZ0cxrdz5iFSqOqwiwStW0DI3uC9gQ=s320" width="320" /></a><br /><span style="font-style: italic;">Table: CSCStel's last 8 quarterly results</span><br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjjOALyCiP-b-FeGFW0i7nVQ63sIEPz4HxsIECT5dWd09ge_x32neW7FwTeQh-CquifdRcK3KW4fc_JeSoGQLeyFsJpHhwcLj-Euw8FsMn4Y0bH0ISNOxTrXsS02NpHNLFLigbDesqGd5giQmc8vMLnVMyzaU88qOuusSjbmjK2O99BNiC_ew=s748" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="748" data-original-width="626" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEjjOALyCiP-b-FeGFW0i7nVQ63sIEPz4HxsIECT5dWd09ge_x32neW7FwTeQh-CquifdRcK3KW4fc_JeSoGQLeyFsJpHhwcLj-Euw8FsMn4Y0bH0ISNOxTrXsS02NpHNLFLigbDesqGd5giQmc8vMLnVMyzaU88qOuusSjbmjK2O99BNiC_ew=s320" width="268" /></a><br /><span style="font-style: italic;">Graph: CSCStel's P&L for last 57 quarterly results</span><br /><br /><b>Financial Position</b><br /><br />As at 31/12/2021, CSCStel's financial position is deemed very healthy with current ratio at 6.2 times and gearing ratio at 0.18 time. It has net cash of RM162 million which is equivalent to RM0.44 per share.<br /><br /><span style="font-weight: bold;">Valuation</span><br /><br />CSCStel (RM1.37 yesterday) has a PER of 5.9 times (based the last 4 quarters' EPS of 23.3 sen). If the cash balance of RM0.44 per share is deducted from the share price, CSCStel's PER would be reduced further to only 4 times. At this PER multiple, CSCStel is deemed very attractive. In addition, CSCStel has proposed a dividend of 14 sen for the current year- an increase of 100% over last year's dividend. At this dividend payout, CSCSTEL's dividend yield stands at 10.2%.<br /><br /><span style="font-weight: bold;">Technical Outlook</span><br /><br />CSCStel has been trading in a wavy pattern. The share price appears poised to begin its next wave upwards.<br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiZc5_rsToEoGHrXEQxj2hIt5UUT7VcfWZysLZtk4tPzCk1AWMmi44vniZ__OlnOvtQ2Gw0EJ4PLYHvw2AIeelH2Z00tSI9pCdmZGtKecofFco7chozEZucns4GtduJfWeEc2mVLQFOw6uTWuPtXA2BAO3P--geKD4TThd9242ywKmI6BQs2g=s1333" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="730" data-original-width="1333" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEiZc5_rsToEoGHrXEQxj2hIt5UUT7VcfWZysLZtk4tPzCk1AWMmi44vniZ__OlnOvtQ2Gw0EJ4PLYHvw2AIeelH2Z00tSI9pCdmZGtKecofFco7chozEZucns4GtduJfWeEc2mVLQFOw6uTWuPtXA2BAO3P--geKD4TThd9242ywKmI6BQs2g=s320" width="320" /></a><br /><span style="font-style: italic;">Chart: CSCStel's monthly chart as at </span><span style="font-style: italic;"><span>Feb 21, 2022</span>(Source:<a href="https://www.isaham.my/stock/cscstel"> isaham.my</a>)</span><br /><br /><span style="font-weight: bold;">Conclusion</span><br /><br />Based improved financial performance, healthy financial position and attractive valuation, CSCStel is a good stock for long-term investment.<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-63991482213808829792022-02-21T08:01:00.001+08:002022-02-21T08:01:16.486+08:00MSC: Earnings Soared As Tin Prices Made New Historical High<p><span style="font-weight: bold;">Results Update</span></p><div>For QE31/12/2021, MSC's net profit rose 121% q-o-q or 329% y-o-y to RM64 million while revenue rose 16.7% q-o-q or 9.7% y-o-y to RM255 million.</div><div><br /></div><div>Revenue rose y-o-y due to higher tin price has negated the drop in refined tin production quantity as a result of continued operation disruption from the declaration of force majeure because of coronavirus-related disruption to production. The force majeure, which has been in force since 7 June 2021 (<a href="https://www.theedgemarkets.com/article/total-lockdown-malaysia-smelting-corp-declares-force-majeure-after-suspending-tin-mining">here</a>), had been lifted on 20th December 2021 (<a href="https://www.bernama.com/en//news.php?id=2034780">here</a>).</div><div><br /></div><div>The Group recorded a profit before tax of RM85.2 million in 4Q 2021 as compared with RM20.5 million in 4Q 2020, mainly due to higher average tin prices of RM158,267 (4Q 2021) as compared with RM76,870 (4Q 2020) per metric tonne. </div><div><br /></div><div>The <b>tin smelting segment</b> recorded a profit before tax of RM13.9 million in 4Q 2021 as compared with RM17.8 million in 4Q 2020, mainly due to the absence of a reversal of inventories written down of RM21.1 million that was recorded in 4Q 2020. The tin smelting segment has also benefited from higher profit margins from sales of refined tin derived from its tin intermediates, and also from higher average tin prices. </div><div><br /></div><div>The <b>tin mining segment</b> recorded a profit before tax of RM57.9 million in 4Q 2021 as compared with RM11.4 million in 4Q 2020, mainly due to higher average tin prices in 4Q 2021. </div><div><br /></div><div>The Group’s share of results of associates and joint ventures recorded a net share of profit of RM1.0 million in 4Q 2021 as compared with a net share of loss of RM4.1 million in 4Q 2020.</div><div><br /></div><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhQusfbIoWR0nzWdxjjcN7T_vbTsexwlfBy3AHOpEu855RaeoglI7c7XUN6QTjpu4emkJ5mSmOOxo1Gh8HZlPlYiZtxvcUOPV9VXe7ccbRVZq6MQrnQcpeY-akMK4xu9lRCrRCG2HMi4O-42aLzCFCclViw3KdwWt6faYLqQJIui7NkVwa7Dw=s965" style="font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="917" data-original-width="965" height="304" src="https://blogger.googleusercontent.com/img/a/AVvXsEhQusfbIoWR0nzWdxjjcN7T_vbTsexwlfBy3AHOpEu855RaeoglI7c7XUN6QTjpu4emkJ5mSmOOxo1Gh8HZlPlYiZtxvcUOPV9VXe7ccbRVZq6MQrnQcpeY-akMK4xu9lRCrRCG2HMi4O-42aLzCFCclViw3KdwWt6faYLqQJIui7NkVwa7Dw=s320" width="320" /></a><br /><span style="font-style: italic;">Table: MSC's last 8 quarterly results</span><br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgCvl6GN9ChO-yPChoxoT7Q3VdgSzcfdBy0pEQU5B9HOFLauWhMd07a8P13CdELwKiWnbn1MyhWX0-ixcO7looXhIwK-Gzuqdc8pL0ZHPFPnfzknVurLv_B9hm7xOtuqqjRckd8JPJvgHexDL2FJacMkTl55JspO47FgcTSMsyX4dGjiwUAkg=s855" style="font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="670" data-original-width="855" height="251" src="https://blogger.googleusercontent.com/img/a/AVvXsEgCvl6GN9ChO-yPChoxoT7Q3VdgSzcfdBy0pEQU5B9HOFLauWhMd07a8P13CdELwKiWnbn1MyhWX0-ixcO7looXhIwK-Gzuqdc8pL0ZHPFPnfzknVurLv_B9hm7xOtuqqjRckd8JPJvgHexDL2FJacMkTl55JspO47FgcTSMsyX4dGjiwUAkg=s320" width="320" /></a><br /><span style="font-style: italic;">Graph; MSC's last 60 quarterly results</span><br /><br /><span style="font-weight: bold;">Tin Price Movement</span><br /><br />Like prices of many commodity, tin prices rose sharply after the start of the pandemic, from a low of USD13,350 in March 2020 to the current price of USD44,200. The sharp price rally is driven by increased demand for tin used in the production of electronics and electrical products
coupled with constrained supply due to the COVID-19 pandemic. Any change in this supply & demand dynamics will have an impact on the prices of tin. <br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiklsR-1TQRWIpA9y-RLtd9Z69tDy7en5032JNBIi3JioYeDjGLdzfn_ZmMTmhUl2yEHUyh1riZ5wpUDpTu-wdS-J1zgznULseEeACBrEOgwQqSfl3gsEOl9TaM6rCrwXTlha6UhkfAsvbzD7G7N78QTF3J3YfYpCccwMgBuUhBv41dZD54vQ=s664" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="640" data-original-width="664" height="308" src="https://blogger.googleusercontent.com/img/a/AVvXsEiklsR-1TQRWIpA9y-RLtd9Z69tDy7en5032JNBIi3JioYeDjGLdzfn_ZmMTmhUl2yEHUyh1riZ5wpUDpTu-wdS-J1zgznULseEeACBrEOgwQqSfl3gsEOl9TaM6rCrwXTlha6UhkfAsvbzD7G7N78QTF3J3YfYpCccwMgBuUhBv41dZD54vQ=s320" width="320" /></a><br /><span style="font-style: italic;">Chart 1: Tin price chart as at 18 Feb 2022 (Source: <a href="http://Investing.com">Investing.com</a>)</span><br /><br /><span style="font-weight: bold;">Valuation</span><br /><br />MSC (closed at RM4.08 last Friday) is trading at a PE of 14 times (based on the last 4 quarters' EPS of 28.50 sen). As such, MSC is deemed fairly valued.<br /><br /><span style="font-weight: bold;">Technical Analysis</span><br /><br />MSC rose sharply after it broke above the line connecting its peaks from 2011 to 2020 (R1-R1) at RM1.00 in December 2020 (see Chart 2). This bullish breakout sent the share price to a high of RM2.93 in February 2021. Thereafter, the share prices consolidated until October 2021 under the downtrend line, RR (see Chart 3). In middle of October 2021, MSC broke above the downtrend line, RR at RM2.50 and the uptrend resumes.<div class="separator" style="clear: both; text-align: center;"><br /></div><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiIwSf84Tv6Sd--dwggiz-RyoRzjuRBRRkZVb96_TrjAo8Yyx0EVjGc5CtJ5azxmte96rvrqX5KxChAICJOQqb0BzGNBPhaKQc7wtCltI1epARXoyro9RIvrvZ4O3AGYUMC2u7D83nuRuD2msogY-AicjI_whm5hoHoXdplyhROWRKE-ParXA=s1333" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="730" data-original-width="1333" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEiIwSf84Tv6Sd--dwggiz-RyoRzjuRBRRkZVb96_TrjAo8Yyx0EVjGc5CtJ5azxmte96rvrqX5KxChAICJOQqb0BzGNBPhaKQc7wtCltI1epARXoyro9RIvrvZ4O3AGYUMC2u7D83nuRuD2msogY-AicjI_whm5hoHoXdplyhROWRKE-ParXA=s320" width="320" /></a><div><span style="font-style: italic;">Chart 2: MSC's monthly chart </span><span style="font-style: italic;">as at Feb 18, 2022 (Source: </span><a href="http://isaham.my" style="font-style: italic;">isaham.my</a><span style="font-style: italic;">)</span></div><div><i><br /></i><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiMgmyg_XTyWnomYz7vezGAN_7_dvVlH3rnZnpwPS_zHzoMtGHJPdzal-LaKbAkaXZYr_D0FjZYpXbcd0IX08-xjZahZH7X0RdlPgxYcCbJqHIc0IPgW8BhPZR0l-JdfxazLXgM-N66nYqqdZ9rLWyuIsMLdEwIJUWaDENVIs1uit16Z9D8Lw=s1333" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="730" data-original-width="1333" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEiMgmyg_XTyWnomYz7vezGAN_7_dvVlH3rnZnpwPS_zHzoMtGHJPdzal-LaKbAkaXZYr_D0FjZYpXbcd0IX08-xjZahZH7X0RdlPgxYcCbJqHIc0IPgW8BhPZR0l-JdfxazLXgM-N66nYqqdZ9rLWyuIsMLdEwIJUWaDENVIs1uit16Z9D8Lw=s320" width="320" /></a><br /><span style="font-style: italic;">Chart 3: MSC's daily chart as at Feb 18, 2022 (Source: <a href="http://isaham.my">isaham.my</a>)</span><span style="font-weight: bold;"><br /><br />Conclusion</span></div><div><span style="font-weight: bold;"><br /></span>Based on good financial performance, fair valuation & bullish technical outlook, MSC could be a good stock to ride the rally in tin prices. <br /><br /><b><i>Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-7672941178952108632022-02-11T09:08:00.002+08:002022-02-11T09:22:30.765+08:00BJFOOD: Earnings Soared!<p><b>Results Update</b></p>For QE31/12/2021, BJFood's net profit rose by 234% q-o-q or 250% y-o-y to RM38.9 million while revenue rose 45% q-o-q or 57% y-o-y to RM273 million. BJFood explained its improved performance as fllows:<div><i><br /></i><div><i>The Group registered a revenue of RM272.75million and pre-tax profit of RM60.28 million in the current quarter ended 31 December 2021 as compared to a revenue of RM174.1 million and pre-tax profit of RM16.8 million reported in the previous year corresponding quarter. With the resumption of interstate and overseas travel starting from 11 October 2021, together with the calendar year end festive sales and Christmas season, the Group recorded a significant increase in revenue. The higher revenue was mainly due to higher same-store-sales growth particularly from Starbucks cafe outlets. The Group's pre-tax profit jumped 259% to RM60.28 million against RM16.79 million in the previous year corresponding quarter. The significant increase was in tandem with the higher revenue recorded in the current quarter as well as improved performance from the KRR operations in Malaysia.</i><div><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEj9EVj1r0UwYkDylFmBwOBD6W24k03JzWHAt4CarrwV103daTpAi8LsAtWJwZa7MQpFByQ6tXNNwZWgnlfUrZs36lLVrgL7W4ugqwPCv70ntv_6uuSiWa4eGblK6NED7rIkcBoKnHhFRj23ufVvJSgeoA6U4V8RVJG1cWz7uNNq86VxtA0NDw=s1012" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="634" data-original-width="1012" height="200" src="https://blogger.googleusercontent.com/img/a/AVvXsEj9EVj1r0UwYkDylFmBwOBD6W24k03JzWHAt4CarrwV103daTpAi8LsAtWJwZa7MQpFByQ6tXNNwZWgnlfUrZs36lLVrgL7W4ugqwPCv70ntv_6uuSiWa4eGblK6NED7rIkcBoKnHhFRj23ufVvJSgeoA6U4V8RVJG1cWz7uNNq86VxtA0NDw=s320" width="320" /></a><br /><i>Table: BJFood's last 8 quarterly results</i><span style="font-size: 11.5pt;"></span><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgdxkTp2mALt5WEWokjrvfbHqNai8oGqVUbGPlJrER-o2g6OFCa1GiEMFqQtg87MjlA1JsfqoND48wmPpKna5quFStYJVyyPWj4MftBzT6TRuLViY3VehwGD_lPXOwQna9iu-rUlCK6peUgPGQMw21Ej3hJ3C1lQ0SYaUA7NrMLrFzJ8_09KA=s526" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="526" data-original-width="487" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEgdxkTp2mALt5WEWokjrvfbHqNai8oGqVUbGPlJrER-o2g6OFCa1GiEMFqQtg87MjlA1JsfqoND48wmPpKna5quFStYJVyyPWj4MftBzT6TRuLViY3VehwGD_lPXOwQna9iu-rUlCK6peUgPGQMw21Ej3hJ3C1lQ0SYaUA7NrMLrFzJ8_09KA=s320" width="296" /></a><br /><i>Graph: BJFood's last 20 quarterly results </i><br /><br /><b>Valuation</b><br /><br />BJFood (closed at RM2.40 yesterday) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 21.33 sen). At this PER, BJFood is deemed vary attractive.<br /><br /><b>(Note: At 9:20 am, BJFood was trading RM3.01- a gain of 61 sen!! At this price, BJFood's PE is at 14 times. Notwithstanding the sharp rise, BJFood is still deemed fairly attractive.)</b><br /><br /><b>Technical Outlook</b><br /><br />BJFood has broken above its trading range at RM2.30. This upside breakout, coupled with the previous long-term "irregular" downtrend line, RR breakout (see the weekly chart below), means that the stock could be finally free to trend higher.<br /><i><br /></i><div><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjpc0VbAWaSzBvoEMNK777iziF_UwtRuElCjbdKc-CVBhl3ZGnSX_TJMRKoM_e_QorXec7PBmhLmmz3DwC6JlChaj-a__xRszDLMyTAwlCcdm1hnFQsuqdutrtVsUBeGpsgg9n5mMyRy_PjMlw1bq9yLaIh1-8bVSg6vKMxO4cu_0AkGixITg=s1334" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="721" data-original-width="1334" height="173" src="https://blogger.googleusercontent.com/img/a/AVvXsEjpc0VbAWaSzBvoEMNK777iziF_UwtRuElCjbdKc-CVBhl3ZGnSX_TJMRKoM_e_QorXec7PBmhLmmz3DwC6JlChaj-a__xRszDLMyTAwlCcdm1hnFQsuqdutrtVsUBeGpsgg9n5mMyRy_PjMlw1bq9yLaIh1-8bVSg6vKMxO4cu_0AkGixITg=s320" width="320" /></a></div><div><i>Chart 1: BJFood's daily chart as at </i><i>as at Feb 10, 2022 (Source: <a href="http://iSaham.my">iSaham.my</a>)</i><br /><br /><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh9e1hEOUKj2Gyw3zc84oe70jtFIedJTuyGW4Iz8c7X_FnEmTuYkbi-2_WsP0Jt6Jx1WnaX_H4Y86uHOfmAJIjOlzybfsIYffpkb0Yhzdru1rhTlt0nz7tXvz_4yqfX44XRdwsgfP2rVfJbCsUh2lcVejQSAkHwbZM_vXRZejwbSnKgRnRDwg=s1334" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="730" data-original-width="1334" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEh9e1hEOUKj2Gyw3zc84oe70jtFIedJTuyGW4Iz8c7X_FnEmTuYkbi-2_WsP0Jt6Jx1WnaX_H4Y86uHOfmAJIjOlzybfsIYffpkb0Yhzdru1rhTlt0nz7tXvz_4yqfX44XRdwsgfP2rVfJbCsUh2lcVejQSAkHwbZM_vXRZejwbSnKgRnRDwg=s320" width="320" /></a><br /><i>Chart 2: BJFood's weekly chart as at Feb 10, 2022 (Source: <a href="http://iSaham.my">iSaham.my</a>)</i><br /><br /><b>Conclusion</b><br /><br />Based on improved financial performance, attractive valuation and bullish technical outlook, I revise BJFood's rating from a HOLD to a BUY. <br /><br /><b><i>Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div></div></div></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-58769403358935885122022-02-08T22:11:00.002+08:002022-02-08T22:11:50.674+08:00BAT: Green Shots of Recovery<p><b>Result Update</b></p>For QE31/12/2021, BAT's net profit dropped 9.4% q-o-q or 2.0% y-o-y to RM71.5 million while revenue rose by 40.6% q-o-q or 30.5% y-o-y to RM862 million.<br /><p class="MsoNormal">As explained in its <a href="https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=217232&name=EA_FR_ATTACHMENTS">press release</a>, BAT "performed remarkably in 2021 with the<b> volume
growing for the first time since 2002, profit growing for the first time since
2015 and strong quarter on quarter improvement in our financial performance.</b>
The growth momentum comes from an increase in volume and share of market which,
in turn, improved revenue and profit from operations. <b>The volume increase was
mainly due to the reduction in the tobacco black market by 6.1% compared to
FY2020.</b> This growth in volume led to a revenue of RM2.6 billion for FY2021
compared to RM2.3 billion in FY2020 (growth of 14%) and a profit from
operations of RM411 million compared to RM346 million in FY2020 (increase of
19%)."</p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRhfctxZg3Qb-wvaFC6wJXacPxz7L0HQyf8EG6i2XliGrZw96gKP9AiA5KgGrcJ-8nV4Z05JD_0IvjLTvYYkrA0ovWFBQC3qg1-qHS7-VDnqiugENl_39iaxqaRW8G9Ky-osAXYZJIbfJl4Pcb2ePQNPU-TSuK9m0SYJ2qAeShWHUh7k1-qg/s1075/BAT's%208Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="798" data-original-width="1075" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRhfctxZg3Qb-wvaFC6wJXacPxz7L0HQyf8EG6i2XliGrZw96gKP9AiA5KgGrcJ-8nV4Z05JD_0IvjLTvYYkrA0ovWFBQC3qg1-qHS7-VDnqiugENl_39iaxqaRW8G9Ky-osAXYZJIbfJl4Pcb2ePQNPU-TSuK9m0SYJ2qAeShWHUh7k1-qg/s320/BAT's%208Qs.gif" width="320" /></a><br /><span style="font-style: italic;">Table 1: BAT's last 8 quarterly results</span><br /><br />In fact, the improved performance was seen mainly in the last quarter, ie. QE31/12/2021. See the sharp spike in the revenue in the graph below.<br /><br /><span style="font-style: italic;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigPGFO--yUszx3C5VQDa9tqUwlSxKKnLFqN0bYW-FgK2hMwEEBrKTdRlpfruNdYB2H-kERTIbvVJ_iPwW8NVVEKob1T6GQl6kwKa0oQ6FpYpNzT0_No1reJ-sHPgNOp38HVoDO1Q8oSrgCV4-S5GlXvkXoTKMLdts6HzH7sW_12czEWB_kYQ/s1398/BAT's%2060Qs.gif" imageanchor="1" style="font-style: normal; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1398" data-original-width="844" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigPGFO--yUszx3C5VQDa9tqUwlSxKKnLFqN0bYW-FgK2hMwEEBrKTdRlpfruNdYB2H-kERTIbvVJ_iPwW8NVVEKob1T6GQl6kwKa0oQ6FpYpNzT0_No1reJ-sHPgNOp38HVoDO1Q8oSrgCV4-S5GlXvkXoTKMLdts6HzH7sW_12czEWB_kYQ/s320/BAT's%2060Qs.gif" width="193" /></a><br /></span><div><span style="font-style: italic;">Graph: BAT's last 53 quarterly results</span><br /><br />However, BAT's bottomline did not increase because the company made additional charge-off in the form of inventories write-down and restructuring expenses. See the table below.</div><div><br /></div><div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF-zP-vWzSlD_XD6ZEzWND4B0QmcxfPGuFFHmChUFsvZUb_gR8Vf0-DzxAr3oWA4qu54W-z_DqTUDfFxnMnBjcgLvaLcTsJuIY6IyxgZfhx_U4orW18Yu2Mjgv0d9IvzS6BiuflWTNXAzXQZIPmm2K62TplChQ_LA27-ym0Dwy9lYKPRXS8g/s846/BAT's%20main%20changes%20in%20expenses.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="756" data-original-width="846" height="286" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiF-zP-vWzSlD_XD6ZEzWND4B0QmcxfPGuFFHmChUFsvZUb_gR8Vf0-DzxAr3oWA4qu54W-z_DqTUDfFxnMnBjcgLvaLcTsJuIY6IyxgZfhx_U4orW18Yu2Mjgv0d9IvzS6BiuflWTNXAzXQZIPmm2K62TplChQ_LA27-ym0Dwy9lYKPRXS8g/s320/BAT's%20main%20changes%20in%20expenses.gif" width="320" /></a></div><div><i>Table 2: Changes in P&L items in QE31/12/2021, QE30/9/2021 & QE31/12/2020</i><br /><br /><b>Valuation</b><br /><br />BAT (closed at RM12.40 today) is now trading at a PER of 12.4 times (based on the last 4 quarters' EPS of 99.8 sen). BAT has paid out quarterly dividend payment totaling of 98 sen over the past 4 quarters; thus giving a Dividend Yield of 7.9%. Based on the above, BAT is considered fairly attractive for a recovery play.<br /><br /><b>Technical Outlook</b><br /><br />BAT dropped from its high of about RM74.00 in Dec 2014 to a low of RM9.20 in Mar 2020. In the last 12-13 months, the share prices were well-supported at the horizontal line at RM12.20-12.30. <br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7sE-Koj06foYPMOEdNUzoKWwLhrxoSxnvp6da09oDl2tEjNgxeBf6Xflifq2S1Pf9oa-lG65D6qnFmIoHWDao_eDf71xuqYSYgAQf25QMay0OSTxaR8kd5W5kGurpT66ZsN2VyCS0CcydMJEzwiGPW2wG9LOotA12GePkcZwa4qvbq9YL_Q/s1333/BAT%20m20220208.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="725" data-original-width="1333" height="174" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7sE-Koj06foYPMOEdNUzoKWwLhrxoSxnvp6da09oDl2tEjNgxeBf6Xflifq2S1Pf9oa-lG65D6qnFmIoHWDao_eDf71xuqYSYgAQf25QMay0OSTxaR8kd5W5kGurpT66ZsN2VyCS0CcydMJEzwiGPW2wG9LOotA12GePkcZwa4qvbq9YL_Q/s320/BAT%20m20220208.gif" width="320" /></a><br /><span style="font-style: italic;">Chart 1: BAT's monthly chart as at Feb 8, 2022 (Source: <a href="http://isaham.my">isaham.my</a>)<br /></span><span style="font-style: italic;"><br /></span></div><div><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmZmjHs9M7oRO3ftFqBDMMgWLCmZk8EYJ1IRNXy_JYLQKmFAsx7uZ0MOr9Ah0APOizIqh5XUk--Y7lfYSi7zDDaWdvnNqUeMtfDUFXtFtSmJNvS0vUHGOm8ee_whpuugZj22LIDSLGgv02pQ2Af-03cbMQVdPCVOaUhYpNRHNz8GJ9g8fyVg/s1333/BAT%20d20220208.gif" imageanchor="1" style="font-style: italic; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="730" data-original-width="1333" height="175" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmZmjHs9M7oRO3ftFqBDMMgWLCmZk8EYJ1IRNXy_JYLQKmFAsx7uZ0MOr9Ah0APOizIqh5XUk--Y7lfYSi7zDDaWdvnNqUeMtfDUFXtFtSmJNvS0vUHGOm8ee_whpuugZj22LIDSLGgv02pQ2Af-03cbMQVdPCVOaUhYpNRHNz8GJ9g8fyVg/s320/BAT%20d20220208.gif" width="320" /></a></div><div><span style="font-style: italic;">Chart 2: BAT's daily chart </span><span style="font-style: italic;">as at Feb 8, 2022</span><span style="font-style: italic;"> (Source: </span><a href="http://isaham.my" style="font-style: italic;">isaham.my</a><span style="font-style: italic;">)</span><br /><br /><b>Conclusion</b><br /><br />Based on an improved financial performance, BAT is a good stock for a recovery play. This is notwithstanding its technical outlook remains bearish as the downtrend has yet to be reversed.<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-55091709781045707642021-12-29T08:50:00.000+08:002021-12-29T08:50:10.420+08:00SCGM: Earnings Continued To Stall<p> <b>Results</b> <b>Update</b></p><p></p><p></p><div class="MsoNormal">In QE31/10/2021 (2Q22), SCGM's net profit dropped 6% q-o-q or 19% y-o-y to RM7.8 million while revenue increased 5% q-o-q or 19% y-o-y to RM72.5 million. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">For 2Q22, the Group revenue increased 5% q-o-q "resulting from higher sales of F&B packaging and extrusion sheet. Local sales increased by 4.7% to RM49.207 million from RM46.990 million in 1Q22 while export sales increased by 4.6% to RM23.335 million from RM22.312 million in 1Q22. Despite the 4.7% increase in Group revenue, the Group’s profit before tax decreased marginally by 0.1% to RM9.872 million in 2Q22 compared to profit before tax of RM9.880 million in 1Q22 mainly due to costs of COVID-19 vaccination exercise and related expenses for workers and loss on foreign exchange during the current quarter. The Group recorded 5.6% lower net profit of RM7.825 million in 2Q22 versus RM8.289 million in the preceding quarter due to higher deferred tax expenses".</div><div class="MsoNormal"><br /> <a href="https://blogger.googleusercontent.com/img/a/AVvXsEi-sVaUS5TbRuVI5gUTGJIdJkIrlZmCZ26VqnXGd066Kk4LNkuSNcYoVnMSvz_DjHlfyFWVKd6pMd7JJ6I3-NiwJuuAS0lNlfViWO4d2ii6uKC75j3sWIAGDDrW1rc0lUmJkpLaJfuOWDCLzeygp8w2J57ONFMXqHih6NIseIxEQJzUPW13Xw=s859" imageanchor="1" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="810" data-original-width="859" height="302" src="https://blogger.googleusercontent.com/img/a/AVvXsEi-sVaUS5TbRuVI5gUTGJIdJkIrlZmCZ26VqnXGd066Kk4LNkuSNcYoVnMSvz_DjHlfyFWVKd6pMd7JJ6I3-NiwJuuAS0lNlfViWO4d2ii6uKC75j3sWIAGDDrW1rc0lUmJkpLaJfuOWDCLzeygp8w2J57ONFMXqHih6NIseIxEQJzUPW13Xw=s320" width="320" /></a><br /><i>Table: SCGM's last 8 quarterly results</i><br /><br /> <a href="https://blogger.googleusercontent.com/img/a/AVvXsEgi_5d0iyVDKFmgge_mCj8f1dhmuJBUoCyB1uXkbOWlRRGd3JdAeGJx3B-0kiQg_Mdpp6YSbEx4R5ZmHLuDaHEM5Gr7OELYxjRODma5mIuqxBJ7QlD27AsSsA4WLm47iyLgjRFiKkEXAwYHYIwNCt6Ts_AlmHble3ntJKQrF-l4VxjzrkFEJg=s770" imageanchor="1" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="770" data-original-width="699" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEgi_5d0iyVDKFmgge_mCj8f1dhmuJBUoCyB1uXkbOWlRRGd3JdAeGJx3B-0kiQg_Mdpp6YSbEx4R5ZmHLuDaHEM5Gr7OELYxjRODma5mIuqxBJ7QlD27AsSsA4WLm47iyLgjRFiKkEXAwYHYIwNCt6Ts_AlmHble3ntJKQrF-l4VxjzrkFEJg=s320" width="290" /></a><br /><i>Graph: SCGM's last 51 quarterly results</i><br /><br /><b>Financial Position</b><br /><br />SCGM's financial position is deemed healthy with current ratio at 1.65 times while gearing ratio is elevated at 0.55 time.<br /><br /><b>Valuation</b><br /><br />SCGM (closed at RM2.42 yesterday) is now trading at a PE of 15X (based on the last 4 quarters' EPS of 16.54sen). At this PE, SCGM is deemed fairly attractive.<br /><br /></div><p><b>Technical Outlook</b><br /><br />SCGM's medium-term uptrend may have ended after the share prices went below the uptrend line, SS. Its next support should be at the horizontal line at RM2.35.</p><div class="separator" style="clear: both; text-align: center;"><br /></div><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjwUJ3xVpJzOXeRA-mCqx9duPjKIAMral_EBpokijjkNl5EY7C8Giov98CIU-5fojVES6dzJen6QlI3dUfZETcCyo8Rt9oAiBO4vxxXuFQfSVaOaCfbHHcorL0HF-HnSYm0Q6RocP7_RX70cjmyTFcEmc5w4FGIFj8zVwZWEzhlqDylsK_Vqw=s1321" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="676" data-original-width="1321" height="164" src="https://blogger.googleusercontent.com/img/a/AVvXsEjwUJ3xVpJzOXeRA-mCqx9duPjKIAMral_EBpokijjkNl5EY7C8Giov98CIU-5fojVES6dzJen6QlI3dUfZETcCyo8Rt9oAiBO4vxxXuFQfSVaOaCfbHHcorL0HF-HnSYm0Q6RocP7_RX70cjmyTFcEmc5w4FGIFj8zVwZWEzhlqDylsK_Vqw=s320" width="320" /></a><br /><i>Chart 1: SCGM's daily chart </i><i>as at </i><i> Dec 28, 2021 (Source: iSaham.my)</i><br /><br /><p></p><p><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg99tzynJn_N3yFZkBjWSMx0ReGXgL-4Kk8ajB1fZ_Ifeua5urO3lFxqLWjMx-hEFV4Kap91CoBAAO4U_ZC-bhG-JTtAUNS8i5dIf9iVS4RLrXz1wollJ0yfWkEefVvHR71MxELjgSJ6KjlTJekx5cuool9T0R72150AJ4OQ9_txLc4rqLOxg=s1319" imageanchor="1" style="font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="669" data-original-width="1319" height="162" src="https://blogger.googleusercontent.com/img/a/AVvXsEg99tzynJn_N3yFZkBjWSMx0ReGXgL-4Kk8ajB1fZ_Ifeua5urO3lFxqLWjMx-hEFV4Kap91CoBAAO4U_ZC-bhG-JTtAUNS8i5dIf9iVS4RLrXz1wollJ0yfWkEefVvHR71MxELjgSJ6KjlTJekx5cuool9T0R72150AJ4OQ9_txLc4rqLOxg=s320" width="320" /></a><br /><i>Chart 2: SCGM's month</i><i>ly chart </i><i>as at </i><i> Dec 28, 2021 (Source: iSaham.my)</i><i><br /></i><br /><b>Conclusion</b><br /><br />Despite the weaker financial performance, SCGM is still a good stock for long-term investment based on healthy financial position & fair valuation,<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-86550787022269812252021-12-10T16:21:00.002+08:002021-12-10T16:47:44.140+08:00Topglov: Revenue & Profits Have Landed<p><b>Result Update</b></p><p></p><p>For QE30/11/2021 (1QFY2022), Topglov's net profit dropped 69% q-o-q or 92% y-o-y to RM186 million while revenue dropped 25% q-o-q or 67% y-o-y to RM1.584 billion. <span style="font-family: "Times New Roman", serif;">The Group’s weaker quarter-on-quarter performance for 1QFY2022 was mainly attributed to declining </span>average selling prices ('<span style="font-family: "Times New Roman", serif;">ASPs') and higher operating costs as a result of lower utilisation rates, while raw material costs reduced at a much slower pace in comparison to glove ASPs, thereby impacting profit. Raw material prices for the quarter ended 1QFY2022 have reduced from 4QFY2021, with average natural latex concentrate prices reducing by 8% from RM5.54/kg to RM5.09/kg, whilst nitrile latex price fell 19% from USD2.21/kg to USD1.79/kg.</span></p><p><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhcuCxkuQJ2iP83vWizQWX9wW63BPz6v7BBVLIBq3loYD1JRzNP7tXpV3cHPrzTMrdp9LruHCyUrwfD7sjA9Zw5CThC6BAReTkjTUUaRI0v_3HFS1wtGnab7xGCrtI8XKehQAysEJAgCDqG7DQJ_4Zg6TDBibuvPMpqa1nceNoU8T1JRIPHyw=s1489" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1489" data-original-width="1024" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEhcuCxkuQJ2iP83vWizQWX9wW63BPz6v7BBVLIBq3loYD1JRzNP7tXpV3cHPrzTMrdp9LruHCyUrwfD7sjA9Zw5CThC6BAReTkjTUUaRI0v_3HFS1wtGnab7xGCrtI8XKehQAysEJAgCDqG7DQJ_4Zg6TDBibuvPMpqa1nceNoU8T1JRIPHyw=s320" width="220" /></a><br /><i>Table: Topglov's last 8 quarterly results</i><br /></p><p>Looking at the quarterly result graph below, we can see that revenue, profits and even profit margins are now lower than QE31/5/2020. Not surprisingly, dividend is lower than that paid out in QE31/5/2020.</p><p><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjSIwm-b0O6-fBlKjiZhztmuoNQixuhJ7vvCuojpBSMNtRsTXHHl9U8zCdq4APysXDRocrIiLZUP4heXvzSdypo6Cln_-lhko8ONZ4shrWzzGsg-PRQzTtPnV8gU2JGnXuP0fJf7JrzqmUbHYzd--G3I418k4O164Nf9ecx_z7WAbMCw88s0A=s1157" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1157" data-original-width="695" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEjSIwm-b0O6-fBlKjiZhztmuoNQixuhJ7vvCuojpBSMNtRsTXHHl9U8zCdq4APysXDRocrIiLZUP4heXvzSdypo6Cln_-lhko8ONZ4shrWzzGsg-PRQzTtPnV8gU2JGnXuP0fJf7JrzqmUbHYzd--G3I418k4O164Nf9ecx_z7WAbMCw88s0A=s320" width="192" /></a><br /><i>Graph: Topglov's last 77 quarterly results</i></p><p>The perennial qustion - are we there yet? - has to be asked. To be frank, I don't think anyone has a quick answer. The mismatched between increased supply and reduced demand could lead to a period of lower ASPs. If that's a serious problem, imagine what would happen if a price war broke out. You may ask why would anyone engage in a price war at a time like this. The need to increase sales to match the increased capacity, would drive the players to engage in a price war! </p><p>The price war would lead to lower revenue & lower contribution. With lower contribution, you would not be able to cover the increased overhead expenses from the increased capacity. You may note that Topglov's Property, Plant & Equipment has risen by 42% from RM2.874 billion as at May 2020 to RM4.090 billion as at November 2021. </p><p>Based on the above, I think the prospect of further decline in profit cannot be ruled out.</p><p><b>Financial Position</b></p><p>As at 30/11/2021, Topglov's financial position is deemed healthy with current ratio at 2.0 times and Total liabilities to Total equity at 0.30 time.</p><p><b>Valuation</b><br /><br />Topglov (closed at RM2.18 as at 4.05 pm) is now trading at a PE of 23 times (based on annualized EPS of 9.28 sen). That's a fair valuation if we assumed that Topglov's profit remains steady at current level. As discussed above, the prospect of lower profits or even losses, could not be discounted.</p><p>Its planned listing on the HKEX may give an indication of the management's "outlook" for the share price (<a href="https://www.theedgemarkets.com/article/top-glove-slashes-hong-kong-stock-offering-again-now-plans-raise-rm221b">here</a>). The amount it plans to raise from its proposed Hong Kong
listing is about RM2.21 billion. The number of shares it
will issue for the Hong Kong listing remains at 793.5 million shares. That
means the IPO price will be about RM2.785 per share. However, things are moving so fast that the expected share price may not be achieved. Nevertheless, this is an indication of the internal thinking of its management.</p><p class="MsoNormal"><o:p></o:p></p><p><b>Technical Outlook</b></p><p>Topglov's downtrend after peaking in October 2020, is still intact. The immediate support is the psychological level of RM2.00.</p><p><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjF392SsgZJvlZcTqzKL5HPZ87j-h0yJ5_mGgPv6vl0FZ_mFmvTmh2xn1WAsYoIp4A4AuGtlau6fjCQ0j9drdVB0Ay4l2c4o4ZXbPUJZD_7odXbBpJxKMxSXJiwMA7GxD8VEOKvgycE4YwULwGYMeCaMGS5xZEDc43gbU1cVcvDdnBaN3kTEw=s1333" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="729" data-original-width="1333" height="175" src="https://blogger.googleusercontent.com/img/a/AVvXsEjF392SsgZJvlZcTqzKL5HPZ87j-h0yJ5_mGgPv6vl0FZ_mFmvTmh2xn1WAsYoIp4A4AuGtlau6fjCQ0j9drdVB0Ay4l2c4o4ZXbPUJZD_7odXbBpJxKMxSXJiwMA7GxD8VEOKvgycE4YwULwGYMeCaMGS5xZEDc43gbU1cVcvDdnBaN3kTEw=s320" width="320" /></a><br /><i>Chart: </i><i>Topglov's daily </i><i><i>chart </i><i><i><i><i>as at </i></i></i></i></i><i>Dec 10, 2021</i><i> (Source: <a href="http://isaham.my">isaham.my</a>)</i><br /></p><div class="separator" style="clear: both;"><b><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Conclusion</span></span></b></div><p><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Based on the current poor financial performance and industrial outlook, Topglov is a stock to be avoided.</span></span><br /><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><br /></span></span><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;">As investor, you should fully research any security before making an investment decision.</span></i></b></span></span></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-52378435483147110742021-06-30T09:08:00.002+08:002021-06-30T09:08:48.694+08:00HIAPTEK: Earnings Remained Strong<p></p><div class="separator" style="clear: both; text-align: left;"><b>Results Update</b></div><div class="separator" style="clear: both; text-align: left;"><b><br /></b></div>For QE30/4/2021, Hiaptek's net profit rose 117% q-o-q or 12-fold to RM66 million while revenue was mixed- down 7% q-o-q but up 100% y-o-y to RM330 million. Its revenue decreased by 7% q-o-q due to lower sales volume for both the Trading and Manufacturing divisions attributable to the Chinese New Year holidays in February 2021. Despite the lower revenue, Profit from Operations increased by 67% to RM63.53 million due to higher steel prices and cost optimization efforts undertaken during the quarter under review. "Together with an improved contribution from the JV entity of RM19.81 million in the current quarter as compared to RM2.88 million in the immediate preceding quarter, the Group recorded a 114% improvement in Profit before Tax to RM80.16 million in 3Q2021 as compared to RM37.42 million in 2Q2021". <div><p class="MsoNormal">The company is positive on its outlook, post lockdown, given
the strength of steel prices and the JV entity’s continuous investments in
plant and equipment to achieve cost efficiencies. The JV entity’s first 200,000
tonnes of coke oven plant is expected to complete by the second half of 2021,
in which substantial cost savings can be achieved. For more, go <a href="https://www.theedgemarkets.com/article/hiap-teck-ventures-3q-net-profit-doubles-rm66-mil-higher-steel-prices">here</a>.</p><a href="https://1.bp.blogspot.com/-MB1sVipERlY/YNshSW-wVHI/AAAAAAAAx7U/cfobEVpmIMwhTNwbL6v_8uQ7a9KWQ0wQACLcBGAsYHQ/s888/Hiaptek%2527s%2B8Qs.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="681" data-original-width="888" src="https://1.bp.blogspot.com/-MB1sVipERlY/YNshSW-wVHI/AAAAAAAAx7U/cfobEVpmIMwhTNwbL6v_8uQ7a9KWQ0wQACLcBGAsYHQ/s320/Hiaptek%2527s%2B8Qs.gif" width="320" /></a><br /><i>Table: Hiaptek's last 8 quarterly results</i><br /><br /><a href="https://1.bp.blogspot.com/-kIm7m4KN05k/YNshR6bt1CI/AAAAAAAAx7M/mDPx0hHTrYo6zIcKfh25bcmP7qOi7pR6QCLcBGAsYHQ/s881/Hiaptek%2527s%2B70Qs.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="881" data-original-width="698" height="320" src="https://1.bp.blogspot.com/-kIm7m4KN05k/YNshR6bt1CI/AAAAAAAAx7M/mDPx0hHTrYo6zIcKfh25bcmP7qOi7pR6QCLcBGAsYHQ/s320/Hiaptek%2527s%2B70Qs.gif" /></a><br /><i>Graph: </i><i>Hiaptek's last 70 quarterly results</i><br /><br /><b>Financial Position</b><br /><br />Hiaptek's financial position as at 30/4/2021 is deemed satisfactory with current ratio at 1.63 times and gearing ratio at 0.49 time. <br /><br /><b>Valuation</b><br /><br />Hiaptek (closed at RM0.565 yesterday) is now trading at a PE of 6.8 times (based on last 4 quarters' EPS of 8.29 sen). At this PE ratio, Hiaptek is deemed fairly attractive.<br /><br /><b>Technical Outlook</b><br /><br />Hiaptek has broken above its long0term downtrend line at RM0.20 in September 2020.<br /></div><div><br /><a href="https://1.bp.blogspot.com/-zd_eCksb3hw/YNshRtdEXSI/AAAAAAAAx7I/7qAB6w41T8seA5HxOjsjCdgj2atgLVjiQCLcBGAsYHQ/s1410/Hiaptek%2Bm20210629.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="872" data-original-width="1410" src="https://1.bp.blogspot.com/-zd_eCksb3hw/YNshRtdEXSI/AAAAAAAAx7I/7qAB6w41T8seA5HxOjsjCdgj2atgLVjiQCLcBGAsYHQ/s320/Hiaptek%2Bm20210629.gif" width="320" /></a><i> </i><br /><i>Chart 1: Hiaptek's monthly chart as at Jun 29, 2021 (Source: </i><i>Kenanga BTX)</i><br /><br />Hiaptek then rallied to a high of RM0.70 in May 2021. Like other steel stocks, Hiaptek has corrected substantially in the past few weeks. However it is still in an uptrend line with support at RM0.52. <br /><br /><a href="https://1.bp.blogspot.com/-CG-oqLmTtr4/YNshR4Uhg4I/AAAAAAAAx7Q/9WfEfM5ZbRM7TN4mDEFLvrafAF3--_2xgCLcBGAsYHQ/s1691/Hiaptek%2Bw20210629.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="863" data-original-width="1691" src="https://1.bp.blogspot.com/-CG-oqLmTtr4/YNshR4Uhg4I/AAAAAAAAx7Q/9WfEfM5ZbRM7TN4mDEFLvrafAF3--_2xgCLcBGAsYHQ/s320/Hiaptek%2Bw20210629.gif" width="320" /></a><br /><i>Chart 2: Hiaptek's weekly chart as at Jun 29, 2021 (Source: </i><i>Kenanga BTX)</i><br /><br /><b>Conclusion</b><br /><br />Based on improved financial performance & financial position, reasonable valuation and mildly bullish technical outlook, Hiaptek is a good stock for medium-term investment.<div><br /></div><div><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-56927110930012557022021-06-29T09:29:00.001+08:002021-06-29T09:29:37.038+08:00Market Outlook as at 29 June 2021<p>Yesterday, FBMKLCI dropped 15 points to close at 1545. The break below 1550 level may lead to an acceleration of the decline in our market. While the index may rebound back above the 1550 mark, the steady flow of negative news has instilled a level of fear among investors and traders, which until recently were driven by unchecked greed. If the market failed to climb back above 1550, then it will quickly slide to the next support at 1520 or the immediate psychological level of 1500. </p><p><a href="https://1.bp.blogspot.com/-TTcXPxDjyQM/YNpqzLYEm7I/AAAAAAAAx64/8xHQUeSb9awrnL9WmXM5n0SOL57GPrFVwCLcBGAsYHQ/s1282/FBMKLCI%2Bd20210628.gif" imageanchor="1" style="font-style: italic; margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="872" data-original-width="1282" src="https://1.bp.blogspot.com/-TTcXPxDjyQM/YNpqzLYEm7I/AAAAAAAAx64/8xHQUeSb9awrnL9WmXM5n0SOL57GPrFVwCLcBGAsYHQ/s320/FBMKLCI%2Bd20210628.gif" width="320" /></a></p><p><i>Chart 1: FBMKLCI's daily chart as at Jun 28, 2021 (Source: Kenanga BTX)</i></p><p></p><div class="separator" style="clear: both; font-style: italic; text-align: left;"><a href="https://1.bp.blogspot.com/-I7MFviYuOGc/YNpqzOEu1oI/AAAAAAAAx68/NiKWbucRjx4hnjm_rgk_OCLijcUd7lMkQCLcBGAsYHQ/s1287/FBMKLCI%2Bw20210628.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="872" data-original-width="1287" src="https://1.bp.blogspot.com/-I7MFviYuOGc/YNpqzOEu1oI/AAAAAAAAx68/NiKWbucRjx4hnjm_rgk_OCLijcUd7lMkQCLcBGAsYHQ/s320/FBMKLCI%2Bw20210628.gif" width="320" /></a></div><div class="separator" style="clear: both; font-style: italic; text-align: left;"><i>Chart 2: FBMKLCI's weekly chart as at Jun 28, 2021 (Source: Kenanga BTX)</i></div><div class="separator" style="clear: both; font-style: italic; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Thus yesterday's announcement by the Prime Minister of a new aid package, known as the National People’s Well-Being and Economic Recovery Package
(PEMULIH) totaling RM150 billion is critical in the effort to help the people & businesses that have been badly hit by the pandemic (<a href="https://www.edgeprop.my/content/1870369/highlights-national-people%E2%80%99s-well-being-and-economic-recovery-package">here</a>). If this belated aid package can achieve its objectives, then our economy can stabilize and will have a decent chance of recovery once the pandemic has been brought under control. If it failed to do so, then our economic recovery, post the pandemic, will be a Herculean task.</div><p></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-11207876556159968902021-06-29T08:55:00.005+08:002021-06-29T10:27:24.493+08:00SCGM: Steady Earnings Growth Continued <p></p><div class="separator" style="clear: both; text-align: left;"><b>Results</b> <b>Update</b></div><p></p><p></p><div class="MsoNormal">In QE30/4/2021(4Q21), SCGM's net profit dropped 6% q-o-q or rose 11% y-o-y to RM7.6 million while revenue increased 5% q-o-q or 32% y-o-y to RM66 million. </div><div class="MsoNormal"><br /></div><div class="MsoNormal">The Group Revenue increased q-o-q resulting from 13%-increase in local sales to RM46.106 million from RM40.757 million (due to higher deliveries of F&B packaging due to higher demand in general) which offset the 9.8% decline in export sales to RM19.638 million from RM21.768 million (due to lower sales of F&B packaging, in line with the past trend in which export sales would be higher during the few months prior to Christmas and New Year). </div><div class="MsoNormal"><br /></div><div class="MsoNormal">The Group recorded a 24% higher profit before tax of RM9.792 million, which is in line with higher local sales recorded in 4Q21. Despite the increase in revenue, the Group recorded 6% lower net profit of RM7.621 million due to higher income tax expense and deferred tax expense.</div><div class="MsoNormal"><br /> <a href="https://1.bp.blogspot.com/-0YQK9NWqMl8/YNna5kdVVDI/AAAAAAAAx6Y/xqK5gn8EbYMG8-hfSJmS7w6UQnL6dT__wCLcBGAsYHQ/s1154/SCGM%2527s%2B8Qs.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1154" data-original-width="859" height="320" src="https://1.bp.blogspot.com/-0YQK9NWqMl8/YNna5kdVVDI/AAAAAAAAx6Y/xqK5gn8EbYMG8-hfSJmS7w6UQnL6dT__wCLcBGAsYHQ/s320/SCGM%2527s%2B8Qs.gif" /></a><br /><i>Table: SCGM's last 8 quarterly results</i><br /><br /> <a href="https://1.bp.blogspot.com/-B5GAtSO6-iA/YNna5jc4OEI/AAAAAAAAx6c/bOl9K4sOeBQuNXveIzee8SrGGXj2TBDSQCLcBGAsYHQ/s845/SCGM%2527s%2B49Qs.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="845" data-original-width="698" height="320" src="https://1.bp.blogspot.com/-B5GAtSO6-iA/YNna5jc4OEI/AAAAAAAAx6c/bOl9K4sOeBQuNXveIzee8SrGGXj2TBDSQCLcBGAsYHQ/s320/SCGM%2527s%2B49Qs.gif" /></a><br /><i>Graph: SCGM's last 49 quarterly results</i><br /><br /><b>Financial Position</b><br /><br />SCGM's financial position is deemed healthy with current ratio at 1.55 times while gearing ratio is elevated at 0.62 time.<br /><br /><b>Valuation</b><br /><br />SCGM (closed at RM2.45 yesterday) is now trading at a PE of 14 X (based on the last 4 quarters' EPS of 17.36 sen). At this PE, SCGM is deemed fairly attractive.<br /><br /></div><p><b>Technical Outlook</b><br /><br />SCGM has been on a steady rise, from the low of RM1.69 recorded in March this year. It is rising on an uptrend line, with support at RM2.30.<br /><br /><a href="https://1.bp.blogspot.com/-f9hCS7tPAZ8/YNpqRGFtBPI/AAAAAAAAx6w/jZZAq85pb7wbQ62AG5QMhJVjRuL5D7cawCLcBGAsYHQ/s1467/SCGM%2Bd20210628.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="716" data-original-width="1467" src="https://1.bp.blogspot.com/-f9hCS7tPAZ8/YNpqRGFtBPI/AAAAAAAAx6w/jZZAq85pb7wbQ62AG5QMhJVjRuL5D7cawCLcBGAsYHQ/s320/SCGM%2Bd20210628.gif" width="320" /></a><br /><i>Chart 1: SCGM's daily chart </i><i>as at Jun 28, 2021 (Source: Kenanga BTX)</i><br /><br />Prior to this, it had a big drop from its all-time high of RM3.95 in August 2020. </p><p><a href="https://1.bp.blogspot.com/-PQMKJQwoFek/YNna5iA6ygI/AAAAAAAAx6g/gLzfsjHKIi0DPVVZt1uesyJ8DrYANVdsACLcBGAsYHQ/s1386/SCGM%2Bw20210628.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="749" data-original-width="1386" src="https://1.bp.blogspot.com/-PQMKJQwoFek/YNna5iA6ygI/AAAAAAAAx6g/gLzfsjHKIi0DPVVZt1uesyJ8DrYANVdsACLcBGAsYHQ/s320/SCGM%2Bw20210628.gif" width="320" /></a><br /><i>Chart 2: SCGM's weekly chart </i><i>as at </i><i> Jun 28, 2021 (Source: Kenanga BTX)</i><br /><br /><b>Conclusion</b><br /><br />Based on improved financial performance, healthy financial position & fairly attractive valuation, SCGM is a good stock for long-term investment. <br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-28512903276391826502021-06-28T14:30:00.002+08:002021-06-28T14:30:00.293+08:00Expiry of warrants<p>One of the most regrettable oversight that any remisier can make is the failure to inform your clients that his warrant is about to expire. This information is available in Bursa website. </p><p>To get the list of company-issued warrants that will be expiring within 30 days, you click on "Company Announcements" and then click on "Expiry/Maturity/Termination of Securities". See the steps below or just go <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement?tab=securities-expiry-report">here</a>.</p><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-Fz1al10pE-c/YNiHO37UMeI/AAAAAAAAx5w/c59QkrDNZ8kcoZOdTrR3dMex70iGQG8ygCLcBGAsYHQ/s1507/Company%2527s%2Bwarrants.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="831" data-original-width="1507" src="https://1.bp.blogspot.com/-Fz1al10pE-c/YNiHO37UMeI/AAAAAAAAx5w/c59QkrDNZ8kcoZOdTrR3dMex70iGQG8ygCLcBGAsYHQ/s320/Company%2527s%2Bwarrants.gif" width="320" /></a></div><div><br /></div>To get the list of structured warrants that will be expiring within 30 days, you click on "Structured Warrants" and then click on "Expiry/Maturity/Termination of Securities". See the steps below or just go <a href="https://www.bursamalaysia.com/market_information/announcements/structure_warrants?tab=securities-expiry-report">here</a>.<div><br /><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-4I6fGqNWhW4/YNiHPAvlAhI/AAAAAAAAx50/2zJN0dmdfZIPy8emEym9rqCwzjrkgOKYgCLcBGAsYHQ/s1500/Structured%2Bwarrants.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="839" data-original-width="1500" src="https://1.bp.blogspot.com/-4I6fGqNWhW4/YNiHPAvlAhI/AAAAAAAAx50/2zJN0dmdfZIPy8emEym9rqCwzjrkgOKYgCLcBGAsYHQ/s320/Structured%2Bwarrants.gif" width="320" /></a></div><p>Bursa Malaysia does not make any distinction between call or put structured warrants.</p><p style="text-align: center;">****</p><p>You may have noticed that warrants with short expiry period tend to trade at very low prices. Some even trade at a discount. In order to get a better price for your warrant, you should try to sell them earlier than the last 30 days to expiry. One of the way of doing that is to use the warrant screener of klsescreener.com (<a href="http://www.klsescreener.com/v2/screener-warrants">here</a>).</p><p>If you want to test out this filter, just select "CALL" under Type and key in "30" for "max days" under Maturity (leave min days as "0"). This should give you the list of company-issued and structured call warrants expiring within 30 days. An example is given below.</p><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-ar0P9AVcfr4/YMXFAJczdLI/AAAAAAAAxvY/kMiPUj_AOq4pHgvmdLhVG1AL-Aq-IxHdACLcBGAsYHQ/s1089/Call%252C%2B30%2Bdays.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="622" data-original-width="1089" src="https://1.bp.blogspot.com/-ar0P9AVcfr4/YMXFAJczdLI/AAAAAAAAxvY/kMiPUj_AOq4pHgvmdLhVG1AL-Aq-IxHdACLcBGAsYHQ/s320/Call%252C%2B30%2Bdays.gif" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">If you want to select call warrants with expiry dates between 30 & 60 days, you need to select "CALL" under Type and key in "30" for min days and "60" for max days under Maturity. This should give you the list of company-issued and structured call warrants expiring between 30 & 60 days. An example is given below.</div><br /><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-7JXbkOuj04Y/YMXFAEiFzSI/AAAAAAAAxvc/jn0lW9laySA2kE5B-m-34F_XJUzL3E2_ACLcBGAsYHQ/s1098/Call%252C%2B30-60%2Bdays.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="638" data-original-width="1098" src="https://1.bp.blogspot.com/-7JXbkOuj04Y/YMXFAEiFzSI/AAAAAAAAxvc/jn0lW9laySA2kE5B-m-34F_XJUzL3E2_ACLcBGAsYHQ/s320/Call%252C%2B30-60%2Bdays.gif" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The above steps are for filtering out expiring call warrants. You can easily do the same for expiring put warrants (note: they are mainly put structured warrants). However, the latter seldom happens as most investors or traders deal with call warrants, and not put warrants.</div><p></p></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-42698220904931102302021-06-27T21:57:00.000+08:002021-06-27T21:57:02.841+08:00ASTINO: Good Earnings in a Weak Market<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><p></p>In QE30/4/2021, Astino's net profit rose 22% q-o-q or 447% y-o-y to RM22.8 million while its revenue dropped 11% q-o-q but rose 70% y-o-y to RM156 million. Revenue has decreased q-o-q primarily due to decrease in local market demand. Profit before taxation increased by RM8.9 million to RM29.8 million, due to higher selling prices and improved operating cost. In addition, the allowance for diminution in value of inventories was RM2.3 million lower than the immediate preceding quarter. (Note: Astino is essentially a building material producer. For more, go <a href="https://www.astino.com.my/products/">here)</a>.<br /><br /><a href="https://1.bp.blogspot.com/-CXm_2jyPv_4/YNhNFxUVdXI/AAAAAAAAx4k/m8vY2nYkvoQXujCafFLL0w5eR_PaumfagCLcBGAsYHQ/s888/Astino%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="655" data-original-width="888" src="https://1.bp.blogspot.com/-CXm_2jyPv_4/YNhNFxUVdXI/AAAAAAAAx4k/m8vY2nYkvoQXujCafFLL0w5eR_PaumfagCLcBGAsYHQ/s320/Astino%2527s%2B8Qs.gif" width="320" /></a><br /><i>Table: Astino's last 8 quarters' results</i><br /><br /><a href="https://1.bp.blogspot.com/-rToMpzNK354/YNhNF3H0c2I/AAAAAAAAx4o/agNV7hR0xFwXtBERpNYKUSIGmcNRtRoKACLcBGAsYHQ/s872/Astino%2527s%2B56Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="872" data-original-width="713" height="320" src="https://1.bp.blogspot.com/-rToMpzNK354/YNhNF3H0c2I/AAAAAAAAx4o/agNV7hR0xFwXtBERpNYKUSIGmcNRtRoKACLcBGAsYHQ/s320/Astino%2527s%2B56Qs.gif" /></a><br /><i>Graph: Astino's last 52 quarters' results</i><br /><br /><b>Financial Position</b><br /><br />Astino's financial position as at 30/4/2021 is deemed healthy with current ratio at 5.56x and gearing ratio at 0.15x.<br /><b><br /></b><b>Valuation</b><br /><br />Astino (closed at RM1.40 last Friday) is now trading at a trailing PER of 6.4x (based on last 4 quarters' EPS of 21.74 sen). At this PER, Astino is deemed fairly attractive.<br /><br /><b>Technical Outlook</b><br /><br />Astino has rallied strongly off its March 2020 low of RM0.37 ti make a high of RM1.70 in May 2021.<div><br /></div><div><a href="https://1.bp.blogspot.com/-ow1fTfcA45o/YNhNF-26F-I/AAAAAAAAx4g/urfC0b1CRTAYy5WgzfY3_yqTQLQE42WOQCLcBGAsYHQ/s1197/Astino%2Bw20210625.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="733" data-original-width="1197" src="https://1.bp.blogspot.com/-ow1fTfcA45o/YNhNF-26F-I/AAAAAAAAx4g/urfC0b1CRTAYy5WgzfY3_yqTQLQE42WOQCLcBGAsYHQ/s320/Astino%2Bw20210625.gif" width="320" /></a><br /><i>Chart 1: Astino's weekly </i><i>chart as at Jun 25, 2021 (Source: Malaysiastock.biz)<div class="separator" style="clear: both; text-align: center;"><br /></div></i>From the monthly chart, we can see that Astino has been moving within a large expanding triangle since 2014. Until it can break above the upper line at RM1.60, Astino is likely to move within the triangle. Since it has just tested the upper line, the more likely move is downward notwithstanding the good financial results achieved.<div class="separator" style="clear: both; text-align: center;"><br /></div><a href="https://1.bp.blogspot.com/-JHpYR4GDRFs/YNiBc1Nkr3I/AAAAAAAAx5o/M56GcwyYs7QJtxMwkNSJnDqsXYcYqFTGgCLcBGAsYHQ/s1283/Astino%2Bm20210625.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="712" data-original-width="1283" src="https://1.bp.blogspot.com/-JHpYR4GDRFs/YNiBc1Nkr3I/AAAAAAAAx5o/M56GcwyYs7QJtxMwkNSJnDqsXYcYqFTGgCLcBGAsYHQ/s320/Astino%2Bm20210625.gif" width="320" /></a><br /><i>Chart 2: Astino's monthly </i><i>chart </i><i>as at Jun 25, 2021 </i><i> (Source: Kenanga's BTX)</i><br /><br /><b>Conclusion</b><br /><br />Based on good financial performance & financial position and fairly attractive valuation, Astino is a good stock for long-term investment. The near-term upside potential is limited as the share price will face strong resistance from the upper line of the expanding triangle. <br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-87443105828653330492021-06-23T15:50:00.006+08:002021-06-23T15:50:55.145+08:00CMSB: Another Irregular Affair<p><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Another stock which has been hit with financial
irregularity is CMSB. On April 22, CMSB’s Deputy Chairman resigned from the
company amid allegations of conflict of interest (<a href="https://www.theedgemarkets.com/article/cahaya-mata-sarawaks-deputy-chairman-goes-leave-absence-amid-conflict-interest-allegations">here</a>). Shortly thereafter,
its CFO was suspended on May 5 (<a href="https://www.theedgemarkets.com/article/cahya-mata-sarawak-suspends-cfo-facilitate-probe-financial-mismanagement-claim">here</a>).</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">CMSB’s management did the right thing to quickly appoint KPMG to probe the allegations of financial mismanagement in relation to its
investments and operations (<a href="https://www.theborneopost.com/2021/05/06/cahya-mata-sarawak-to-hire-external-consultant-in-financial-management-probe/ ">here</a>). This sent a strong signal to the market that
the management is working to resolve the problem, if any.</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Two days ago, two of its non-executive directors, Yam
Kong Choy and Ho Heng Chuan resigned from the company (<a href="https://www.theedgemarkets.com/article/yam-kong-choy-and-ho-heng-chuan-resign-cahya-mata-directors">here</a>). This development
threw a spanner in the works. Why did these 2 non-executive directors resign from the board? Is the financial mismanagement in CMSB bigger than expected? Are there other serious problems in the company?</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Meanwhile the share price has continued to decline. It
went below the uptrend line, AB at RM1.28. It may revisit the Oct-Nov 2020 low
of RM1.06.</span></p><p class="MsoNormal"><a href="https://1.bp.blogspot.com/-JD8OtvXvI8g/YNLkICfTcMI/AAAAAAAAx0w/hrn7Lko4EGUWgmJwW-lz1xipmw40dPepwCLcBGAsYHQ/s1473/CMSB%2Bd20210623_2.45.gif" imageanchor="1" style="clear: left; font-family: "Times New Roman", serif; font-size: 16px; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="857" data-original-width="1473" src="https://1.bp.blogspot.com/-JD8OtvXvI8g/YNLkICfTcMI/AAAAAAAAx0w/hrn7Lko4EGUWgmJwW-lz1xipmw40dPepwCLcBGAsYHQ/s320/CMSB%2Bd20210623_2.45.gif" width="320" /></a></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;"><i>Chart: CMSB's daily chart as at Jun 23, 2021_2.45pm (Source: Kenanga's BTX)</i></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Hopefully by then, the KPMG probe would have been
completed, and the management of CMSB can announce its plans to tackle any
problem or weaknesses that have been unearthed. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">CMSB is a solid conglomerate with exposure to good business
segments that benefit strongly from continued economic development in the State
of Sarawak. The shareholders of CMSB are well-aware of its major shareholder’s
political connection. Whatever the stance of the investors on this political connection,
no one can deny that the connection has benefited the group as much as it has weighed down on the share price generally, except
for periods of heightened political interest ahead of election times.</span></p><p class="MsoNormal"><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Until the dust has settled, it is best to avoid the stock for now. If you are however stuck with it, the share price is low enough that you might as well just hang onto the shares. After all, the management appears to be ready to bite the bullet even though the resignation of the </span><span style="font-family: "Times New Roman", serif; font-size: 16px;">2 non-executive directors has raised more questions about the seriousness of the financial mismanagement in CMSB.</span></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-70406709176885323072021-06-23T12:18:00.002+08:002021-06-23T15:00:04.847+08:00SERBADK: A Lost Cause! <p><span style="font-family: "Times New Roman", serif; font-size: 12pt;">Serba Dinamik has been in the news since May 25 when
it was first reported that the company's external auditor, KPMG had filed a
complaint to the company's independent directors regarding a matter of
serious concern. How did the company's management handle this complaint?</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Let me give you a bit of background of my training
& experience in the field of accountancy & auditing. My first job was
as an audit clerk in Ernst & Young (formerly, Ernst & Whiney) in its
Sandakan office in 1983. It was a very exciting time for me as I had the
opportunity to work with the audit team that handled such diverse clients like
Harrison Holdings (M) Bhd (formerly, Harrison & Crosfield), Kretam &
WMG (formerly, Tekala). As a result of this working experience, I decided to
pursue a career in accountancy & auditing. I went to Tunku Abdul Rahman
College to obtain a professional accountancy qualification.</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Now back to the story: Accountancy is a highly regulated profession with
strict rules to follow. One has to know all the accounting standards to ensure
that the correct treatment is applied to the recording & presentation of
accounting information. To the uninformed laymen, an accountant is often
mistaken as a book-keeper. This applies even to some worldly businessmen too
(think Donald Trump). These businessmen want the accountants to report whatever
they wish to reveal to the world- be it their bankers or the tax authorities.
Alas, we have been witnessing the same behaviour exhibited by Serba Dinamik,
the one time O&G darling stock in Bursa Malaysia.</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Since the report of irregularity filed by KPMG more
than 3 weeks ago, the investing public has learned very little about the
problem or issue at hand. This is a very unfortunate affair for Serba Dinamik
and its shareholders. And, it is entirely the fault of the major shareholder
& management of Serba Dinamik. It is not the fault of KPMG as the
publication of damaging information that could cause further harm to the
company and its many stakeholders is professionally prohibited.</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Let me venture a guess as to what actually happened:
KPMG has discovered something in the course of the auditing of the company (or,
the group) and it wished to report these in the financial statement. If these were
irregular transactions, KPMG wants to include these in the report together with management's explanation. If these could
lead to losses to the company (or, the group), KPMG wants to make a provision for
the losses. I am confident that the KPMG team leader has brought the matter up to the management in order to seek an explanation and then he would have recommended the
proper course of action. The management disagreed with the recommendation. What could KPMG team leader do? It must
have been a very serious matter which may jeopardise KPMG’s professional
reputation as well as exposing it to professional liability if it chose not to
do anything. As such, it has no choice but to bring the matter to the audit
committee comprising of independent directors of the company. And, that's when the whole thing blew up.</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> </span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">The best course of action for Serba Dinamik would have been to appoint an
independent audit firm to investigate the matter. The fact that
this option was initially considered, however reluctantly but now no longer pursued, is simply because
it is a dead-end. The named independent audit firm, Ernst & Young would in
due course come to the same conclusion as did KPMG. So what can Serba Dinamik's management team do?</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Yesterday, Serba Dinamik announced that it has hired a
lawyer to sue KPMG. I read thru the news with incredulity (<a href="https://themalaysianreserve.com/2021/06/23/serba-dinamik-takes-legal-action-against-kpmg/">here</a>). Even more
shocking are the Q&A during the press conference following the press
briefing (<a href="https://www.theedgemarkets.com/article/what-serba-dinamik-says-its-audit-issues-today">here</a>). The gem is this exchange:</span></p>
<blockquote style="border: none; margin: 0px 0px 0px 40px; padding: 0px; text-align: left;"><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;"><i>Some say the suit against KPMG is a distraction to the
actual issue by Serba Dinamik. Can you comment?</i></span></p><p class="MsoNormal"><i><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Mohamed Ilyas: I don't know where you get your information
from, but I think you should verify your information. If KPMG can mislead our
directors, Bursa and the SC with trivial issues, I don't think we are supposed
to work with them anymore. This is why we took the decision to take legal
action on them.</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> </span></i></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;"><i>Plus they (KPMG) mentioned they were going to stop the
audit process. How can you work with your auditor when you pay them a few
hundred thousand ringgit and they dictate what to do? They should be working
with us, not taking our money and behaving like this.</i></span></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;"><i><b>They are behaving like official gangsters,</b> hiding
behind the veil of whatever act they have. I have got all the information, I
spoke to SC and I spoke to Bursa. I think you better clarify your information.</i></span></p></blockquote>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">Hiring a fancy lawyer to sue KPMG looks less like the
Charge of the Light Brigade but more like Don Quixote battling out with the
windmills. But, I digress...</span></p>
<p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;">If you are holding shares in Serba Dinamik, you should
seriously consider doing what EPF has been doing in the past few days- disposing of the shares (<a href="https://www.theedgemarkets.com/article/epf-sells-15-million-more-serba-shares-open-market">here</a>). Sad to say, this one is a lost cause!<o:p></o:p></span></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-66241545179020077912021-06-20T20:00:00.001+08:002021-06-20T20:00:00.303+08:00BAUTO: Strong Earnings Due to Better Domestic Operation<p><b>Results Update</b></p><p>For QE30/4/2021, BAuto's net profit rose 102% q-o-q or 26-fold y-o-y to RM67 million while revenue rose 7% q-o-q or 114% y-o-y to RM641 million.<br /><br />Group revenue improved 7% q-o-q largely due to improvement in sales volume from the domestic operations. Higher sales volume from the domestic operations was achieved when the consumers rushed to buy new vehicles in the new calendar year 2021 and before the end of the SST Exemption in June 2021. The Group pre-tax profit for the current quarter under review has increased by RM41.3 million or 97.8% mainly because of improvement in the profit contributions from the domestic operations, higher share of profit contribution from Mazda Malaysia Sdn Bhd ("MMSB"), partly offset by lower contribution from the Philippines operations. Higher profit contribution from the domestic operations was mainly attributed to higher gross margin as a result of the discontinuation of aggressive promotional campaign, favourable foreign exchange of Japanese Yen against Malaysian Ringgit and other cost savings. Higher profit contribution from MMSB was mainly due to the improvement in gross profit and reversal of over-accrued provisions. Lower contribution from the Philippines operations, despite higher revenue, was mainly due to lower margin arising from higher promotional activities being carried out during the quarter.<br /><br /><a href="https://1.bp.blogspot.com/-NWZTJLOLK8g/YM7wfWZZTZI/AAAAAAAAxwQ/DNkcMuK3MaEo-VdQ6qnPp_YAJ126RmseACLcBGAsYHQ/s1070/BAUTO%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1070" data-original-width="888" height="320" src="https://1.bp.blogspot.com/-NWZTJLOLK8g/YM7wfWZZTZI/AAAAAAAAxwQ/DNkcMuK3MaEo-VdQ6qnPp_YAJ126RmseACLcBGAsYHQ/s320/BAUTO%2527s%2B8Qs.gif" /></a><br /><i>Table: BAuto's last 8 quarters' financial performance</i></p><p><a href="https://1.bp.blogspot.com/-cp2Wpr-mecE/YM7weutIToI/AAAAAAAAxwE/NTBqCgyKC_w1cpTnTG5RsW4Qrj70F2clwCLcBGAsYHQ/s1182/BAUTO%2527s%2B36Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1182" data-original-width="728" height="320" src="https://1.bp.blogspot.com/-cp2Wpr-mecE/YM7weutIToI/AAAAAAAAxwE/NTBqCgyKC_w1cpTnTG5RsW4Qrj70F2clwCLcBGAsYHQ/s320/BAUTO%2527s%2B36Qs.gif" /></a><br /><span style="font-style: italic;">Graph: BAuto's </span><i>last 36 quarters' financial performance </i><br /><b><br /></b><b>Financial position</b><br /><br />As at 31/4/2021, BAuto's financial position has deteriorated with current ratio at 2.41 times and total liabilities to total equity at 1.18 times.<br /><br /><b></b><b>Valuation</b><br /><br />BAuto (closed at RM1.48 last Friday) has a fair PER of 12.8 times (based on last 4 quarters' EPS of 11.53 sen). BAuto paid quarterly dividends which totaled 6.5 sen over the past 4 quarters. This translates to a decent dividend yield of 4.4%. Based on the above, BAuto is deemed fairly valued.<br /><br /><b>Technical Outlook</b><br /><br />BAuto has been trading sideways for about 12 months. If it can go above the line connecting the recent reaction high at RM1.50-1.52, its uptrend may finally begin.</p><p><a href="https://1.bp.blogspot.com/-3_jUQNs8loM/YM7wekjZ3vI/AAAAAAAAxwI/EJ38OKGZfIkvojjKazUzFcgVWrGgcs2LgCLcBGAsYHQ/s1197/BAUTO%2Bd20210620.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="736" data-original-width="1197" src="https://1.bp.blogspot.com/-3_jUQNs8loM/YM7wekjZ3vI/AAAAAAAAxwI/EJ38OKGZfIkvojjKazUzFcgVWrGgcs2LgCLcBGAsYHQ/s320/BAUTO%2Bd20210620.gif" width="320" /></a></p><p><i>Chart 1: BAuto's dai</i><i>ly chart as at Jun 18, 2021</i><i> (Source: Malaysiastock.biz)</i></p><p><a href="https://1.bp.blogspot.com/-umRIndPwZ_Q/YM7weo1bkCI/AAAAAAAAxwM/hT3mr9hZrsETlcZaA9mGAsK1tNCZMFheQCLcBGAsYHQ/s1197/BAUTO%2Bw20210620.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="736" data-original-width="1197" src="https://1.bp.blogspot.com/-umRIndPwZ_Q/YM7weo1bkCI/AAAAAAAAxwM/hT3mr9hZrsETlcZaA9mGAsK1tNCZMFheQCLcBGAsYHQ/s320/BAUTO%2Bw20210620.gif" width="320" /></a><br /><i>Chart 2: BAuto's week</i><i>ly chart as at Jun 18, 2021</i><i> (Source: Malaysiastock.biz)</i><br /><i><br /></i><b>Conclusion</b><br /><br />Based on improved financial performance & strong financial position, I revised my rating for BAUTO to a HOLD. If BAUTO can go above the resistance at RM1.50-1.52, its uptrend will turn bullish.<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-19293360916806504442021-06-13T16:30:00.003+08:002021-12-10T16:18:25.507+08:00TOPGLOV: Top-line & Bottom-line Finally Reversed<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><p></p><p>For QE31/5/2021 (3QFY2021), Topglov's net profit dropped 29% q-o-q but rose 485% y-o-y to RM2.036 billion while revenue dropped 22% q-o-q but rose 147% y-o-y to RM4.163 billion. <span style="font-family: "Times New Roman", serif; font-size: 12pt;">The Group’s softer quarter-on-quarter performance for 3QFY2021 came on the back of adjustments in line with glove market pricing trends, after ASPs had peaked in February 2021. The Sales Volume (Quantity Sold) dropped 4% quarter-on-quarter mainly due to reduction in sales to the U.S., following a temporary halt in shipments to the U.S. from Malaysia, in compliance with requirements of the U.S. Customs and Border Protection. Raw material prices for the quarter ended 3QFY2021 rose from 2QFY2021, with average natural latex concentrate prices up by 8% from RM5.85/kg to RM6.31/kg, whilst nitrile latex price increased marginally by 0.4% from USD2.30/kg to USD2.31/kg.</span></p><p><span style="font-family: "Times New Roman", serif; font-size: 12pt;">There you have it; lower sales volume coupled with lower ASPs mean lower revenue, and</span><span style="font-family: "Times New Roman", serif; font-size: 12pt;"> lower ASPs coupled with slightly higher raw material cost mean lower profit margins. </span></p><p><a href="https://1.bp.blogspot.com/-9dfgBPSI6Qo/YMW8MYP6-XI/AAAAAAAAxvA/1NCRMTudLckicjJAGTrfdibNYtLjWvH5QCLcBGAsYHQ/s1108/Topglov%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1108" data-original-width="1023" height="320" src="https://1.bp.blogspot.com/-9dfgBPSI6Qo/YMW8MYP6-XI/AAAAAAAAxvA/1NCRMTudLckicjJAGTrfdibNYtLjWvH5QCLcBGAsYHQ/s320/Topglov%2527s%2B8Qs.gif" /></a><br /><i>Table: Topglov's last 8 quarterly results</i><br /></p><p><a href="https://1.bp.blogspot.com/-fPjxCGoGxfo/YMW8MVsJVnI/AAAAAAAAxu8/_gRFMvgKC3EoOCdSL8FTp_mCOAJ4oXL2gCLcBGAsYHQ/s1088/Topglov%2527s%2B60Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1088" data-original-width="690" height="320" src="https://1.bp.blogspot.com/-fPjxCGoGxfo/YMW8MVsJVnI/AAAAAAAAxu8/_gRFMvgKC3EoOCdSL8FTp_mCOAJ4oXL2gCLcBGAsYHQ/s320/Topglov%2527s%2B60Qs.gif" /></a><br /><i>Graph: Topglov's last 60 quarterly results</i></p><p><b>Financial Position</b></p><p>As at 31/5/2021, Topglov's financial position is deemed healthy with current ratio at 1.9 times and Total liabilities to Total equity at 0.50 time.</p><p><b>Valuation</b><br /><br />Topglov (closed at RM4.72 last Friday) is now trading at a trailing PE of 4.4 times (based on last 4 quarters' EPS of 106.80 sen). This exceptionally low PE ratio reflects investors' perception that Topglov's future earnings must decline in the near term due to average selling prices & profit margins normalization. This is not unreasonable given the glove demand has been driven by the Covid-19 pandemic, which is expected to be brought under control with the arrival of vaccines worldwide.</p><p>I wrote about the possible scenarios of ASPs & profit normalization in my last post on Topglov (<a href="https://nexttrade.blogspot.com/2021/03/topglov-fantastic-earnings-for-now.html">here</a>). If Topglov were to trade at its past PE of 31-32 times, then the market is now projecting its <b>4-quarter</b> net profit of RM1.344 billion in next few quarters. <b>That means its quarterly net profit would be about RM336 million. </b></p><p>As noted in that post, if the above projection is proven to be too pessimistic, then the market will revise its outlook and the share price will go up, or <i>vice versa</i>. </p><p><b>Technical Outlook</b></p><p>Topglov's immediate support is at the horizontal line of RM4.70. If that support failed, the next support is at the horizontal line of RM4.50.</p><p><a href="https://1.bp.blogspot.com/-Q1Qb3pVCjFs/YMW8MSMeXaI/AAAAAAAAxvE/DtqiE_zSI_0q8Pw791wLMLPeCq3NFGnrACLcBGAsYHQ/s1325/Topglov%2Bd20210611.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="805" data-original-width="1325" src="https://1.bp.blogspot.com/-Q1Qb3pVCjFs/YMW8MSMeXaI/AAAAAAAAxvE/DtqiE_zSI_0q8Pw791wLMLPeCq3NFGnrACLcBGAsYHQ/s320/Topglov%2Bd20210611.gif" width="320" /></a><br /><i>Chart: </i><i>Topglov's daily </i><i><i>chart </i><i><i><i><i>as at </i></i></i></i></i><i>June 11, 2021</i><i> (Source: Malaysiastock.biz)</i><br /></p><div class="separator" style="clear: both;"><b><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Conclusion</span></span></b></div><p><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Based on the current strong financial performance, healthy financial position and fairly attractive valuation, Topglov makes a very appealing case as a value stock for long-term investment. However the arrival of vaccines and their positive impact in controlling the spread of the pandemic have changed the narrative of investing in pandemic stocks. The question of whether Topglov is a value stock or a value trap still remain unchanged for now.</span></span><br /><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><br /></span></span><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;">As investor, you should fully research any security before making an investment decision.</span></i></b></span></span></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-85762172925457376452021-06-02T08:58:00.000+08:002021-06-02T08:58:02.294+08:00Webinar: Foundation of Technical Analysis<p>This evening, I will be presenting on the topic of Technical Analysis as part of Bursa Webinar 2021. </p><p>The title: The Foundation of Technical Analysis</p><p>Date: 2 Jun 2021 (Wed)</p><p>Time: 8.30pm - 10pm</p><p>Learning Outcomes:</p><p>✅ Learn what is technical analysis</p><p>✅ Understand the basic tenets of technical analysis</p><p>✅ Know how to draw trend lines and and recognize important chart patterns</p><p>✅ Learn the basic technical indicators and overlays</p><p>If you like to attend the webinar, you can register: https://us02web.zoom.us/webinar/register/1716222791266/WN_JDfGE6hrSzulyUvY4DiU2A</p><div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-7nmL76awCJU/YLbXLuVX5CI/AAAAAAAAxu0/j6-bqnQo3pMjGKO8ZaOQU5giwRq-Qz64ACLcBGAsYHQ/s1334/Foundation%2Bof%2Btechnical%2BAnalysis.gif" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1334" data-original-width="586" height="400" src="https://1.bp.blogspot.com/-7nmL76awCJU/YLbXLuVX5CI/AAAAAAAAxu0/j6-bqnQo3pMjGKO8ZaOQU5giwRq-Qz64ACLcBGAsYHQ/w176-h400/Foundation%2Bof%2Btechnical%2BAnalysis.gif" width="176" /></a></div><br /><p><br /></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-64579081769818759772021-05-26T20:00:00.003+08:002021-05-26T20:00:00.321+08:00AMWAY: Attractive Enough for Long Term Investing<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><p></p><div>For QE31/3/2021, Amway's net profit rose 371% q-o-q or 97% y-o-y to RM20 million while revenue rose 12% q-o-q or 51% y-o-y to RM354 million. Revenue was higher than the preceding quarter by due to stronger demand for nutrition and wellness products, home appliances and new customer segment namely Amway Privileged Customer (APC) program launched in January 2021. The Group’s profit before tax increased by 433% as compared to the preceding quarter due to higher sales volume and lower selling and administrative expenses.</div><p><a href="https://1.bp.blogspot.com/-7AxpP0TdS7k/YK33rMtxrRI/AAAAAAAAxuM/W7rsMTmLDCo6F0Q5tYnKEe5d7ID7S5JAQCLcBGAsYHQ/s966/Amway%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="731" data-original-width="966" src="https://1.bp.blogspot.com/-7AxpP0TdS7k/YK33rMtxrRI/AAAAAAAAxuM/W7rsMTmLDCo6F0Q5tYnKEe5d7ID7S5JAQCLcBGAsYHQ/s320/Amway%2527s%2B8Qs.gif" width="320" /></a><br /><span style="font-style: italic;">Table: Amway's last 8 quarterly results</span><br /><br /><a href="https://1.bp.blogspot.com/-1wTfXZ3HNiM/YK38flWzu7I/AAAAAAAAxuk/inPA-t-8jeM_hSPupTxSe8whlelw__PQgCLcBGAsYHQ/s1264/Amway%2527s%2B54Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1264" data-original-width="738" height="320" src="https://1.bp.blogspot.com/-1wTfXZ3HNiM/YK38flWzu7I/AAAAAAAAxuk/inPA-t-8jeM_hSPupTxSe8whlelw__PQgCLcBGAsYHQ/s320/Amway%2527s%2B54Qs.gif" /></a><br /><i>Graph: Amway's last 54 quarterly results</i></p><p><b>Financial Position</b></p><p>As at 31/3/2021, Amway's financial position is deemed healthy with current ratio at 1.4 times while total liabilities to total equity appeared high at 1.2 times. However, it has cash balance of RM162 million or about RM0.99 per share.<br /><br /><span style="font-weight: bold;">Valuation</span><br /><br />Amway (closed at RM5.19 yesterday) is trading at a trailing PER of 15 times (based on last 4 quarters' EPS of 34.6 sen). At this PER, Amway is deemed fairly attractive. In addition, investors may take comfort in receiving a decent dividend yield of 5.3%.</p><p><span style="font-weight: bold;"><b>Technical Outlook</b></span><br /><br />Amway has dropped from a high of RM12.50 in 2013 to a recent of RM4.50 in Mar 2020 (during the selldown at the start of the pandemic).<br /><br /><a href="https://1.bp.blogspot.com/-9HUKDTaU0Mg/YK33rPZNDbI/AAAAAAAAxuQ/4wXZ4EZH8BYlrRMUZwDWZnUuGXB3gJ2TACLcBGAsYHQ/s1080/AMWAY%2Bm20210525.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="666" data-original-width="1080" src="https://1.bp.blogspot.com/-9HUKDTaU0Mg/YK33rPZNDbI/AAAAAAAAxuQ/4wXZ4EZH8BYlrRMUZwDWZnUuGXB3gJ2TACLcBGAsYHQ/s320/AMWAY%2Bm20210525.gif" width="320" /></a><br /><span style="font-style: italic;">Chart 1: Amway's monthly chart as at May 25, 2021 (Source: Malaysiastock.biz)</span><br /><br />From the daily chart below, Amway has been rising slowly in an uptrend line (in blue) with support at RM5.20.</p><p><a href="https://1.bp.blogspot.com/-cQArNGkCCog/YK37d0uzlxI/AAAAAAAAxuc/ZqOPBnQDGNQmnrZcToQWXvi3mkwJuS1RQCLcBGAsYHQ/s1325/AMWAY%2Bd20210525.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-cQArNGkCCog/YK37d0uzlxI/AAAAAAAAxuc/ZqOPBnQDGNQmnrZcToQWXvi3mkwJuS1RQCLcBGAsYHQ/s320/AMWAY%2Bd20210525.gif" width="320" /></a><br /><span style="font-style: italic;">Chart 2: Amway's daily chart as at May 25, 2021 (Source: Malaysiastock.biz)</span><br /><br /><span style="font-weight: bold;">Conclusion</span><br /><br />Based on decent financial performance, good financial position, attractive valuation & a constructive technical outlook after a long decline, Amway could be a good stock to consider for recovery play. <br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-52625559975002529172021-05-12T19:23:00.001+08:002021-05-12T19:23:00.345+08:00 Selamat Hari Raya Aidilfitri<p> I wish all my readers a safe and blessed Hari Raya Aidilfitri.</p><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-eEhHOAxJ20k/YJuCpj7vgcI/AAAAAAAAxuA/wjVAmn4sZuoBGMBAfraShEhc1xzbcVkCwCLcBGAsYHQ/s612/Hari%2BRaya%2B2021a.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="306" data-original-width="612" src="https://1.bp.blogspot.com/-eEhHOAxJ20k/YJuCpj7vgcI/AAAAAAAAxuA/wjVAmn4sZuoBGMBAfraShEhc1xzbcVkCwCLcBGAsYHQ/s320/Hari%2BRaya%2B2021a.png" width="320" /></a></div><br /><p><br /></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-41593712812789701622021-05-12T08:51:00.001+08:002021-05-12T08:51:30.579+08:00PBBANK: Quarterly Profits Soared<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><br />For QE31/3/2021, PBBank's net profit rose 333% q-o-q or 15.1% y-o-y to RM1.530 billion while revenue was mix- up 2.3% q-o-q but down 8.8% y-o-y to RM5.03 billion. The improved performance on a q-o-q basis was mainly attributable to lower loan impairment allowance of RM358.1 million (+64.3%), higher net interest income and net income from Islamic banking business of RM137.6 million (+7.1%) and RM61.4 million (+16.5%) respectively, and higher net fee and commission income of RM52.9 million (+9.8 %). These were partially offset by lower other operating income of RM78.6 million and higher other operating expenses of RM36.1 million.<br /><br /><a href="https://1.bp.blogspot.com/-GXHNoSlgIPM/YJshxidliXI/AAAAAAAAxts/5t78r3Dyz2M1z-G0aXwPRv3l_vPdNDqRQCLcBGAsYHQ/s1020/PBBANK%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="509" data-original-width="1020" src="https://1.bp.blogspot.com/-GXHNoSlgIPM/YJshxidliXI/AAAAAAAAxts/5t78r3Dyz2M1z-G0aXwPRv3l_vPdNDqRQCLcBGAsYHQ/s320/PBBANK%2527s%2B8Qs.gif" width="320" /></a><br /><span style="font-style: italic;">Table: PBBank's last 8 quarterly results</span><br /><br />From the graph below, we can see that PBBank's profits & profit margins have reached the all-time high achieved in QE30/6/2011.<br /><br /><a href="https://1.bp.blogspot.com/-ELAlImpM6Ls/YJshwulNZmI/AAAAAAAAxtk/Ced4cLD0md0CRKYBtBYmoxWzhUfY4pQXwCLcBGAsYHQ/s865/PBBANK%2527s%2B61Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="865" data-original-width="720" height="320" src="https://1.bp.blogspot.com/-ELAlImpM6Ls/YJshwulNZmI/AAAAAAAAxtk/Ced4cLD0md0CRKYBtBYmoxWzhUfY4pQXwCLcBGAsYHQ/s320/PBBANK%2527s%2B61Qs.gif" /></a><br /><span style="font-style: italic;">Graph: PBBank's last 61 quarterly results</span><br /><br /><b>Valuation</b><br /><br />PBBank (closed at RM4.10 yesterday) is now trading at a PE of 15.7 times (based on last 4 quarters' EPS of 26.13 sen). At this PE multiple, PBBank is deemed fully valued. It pays a decent dividend yield of 3.2%.<br /><br /><b>Technical Outlook</b><br /><br />PBBank has been rising in an irregular upward channel (see parallel blue lines in Chart 1). Immediate support is at the horizontal line at RM4.10 while immediate resistance is at the horizontal line at RM4.50. <p></p><p><a href="https://1.bp.blogspot.com/-ksJSeXoI2L8/YJshwj5TXDI/AAAAAAAAxto/L_7F8U1tnJwBEiu9eifXKaw9-Cvf5emKQCLcBGAsYHQ/s1325/PBBANK%2Bd20210511.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="812" data-original-width="1325" src="https://1.bp.blogspot.com/-ksJSeXoI2L8/YJshwj5TXDI/AAAAAAAAxto/L_7F8U1tnJwBEiu9eifXKaw9-Cvf5emKQCLcBGAsYHQ/s320/PBBANK%2Bd20210511.gif" width="320" /></a><br /><span style="font-style: italic;">Chart 1: PBBank's daily chart as at May 11, 2021(Source: MalaysiaStock.biz)</span><br /><br /><a href="https://1.bp.blogspot.com/-1i1LT_fOCO8/YJshwjuOWiI/AAAAAAAAxtg/EJz0ai15fS4qGNA-i6JHyBvVVeWp2ZUIwCLcBGAsYHQ/s1325/PBBANK%2Bw20210511.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="812" data-original-width="1325" src="https://1.bp.blogspot.com/-1i1LT_fOCO8/YJshwjuOWiI/AAAAAAAAxtg/EJz0ai15fS4qGNA-i6JHyBvVVeWp2ZUIwCLcBGAsYHQ/s320/PBBANK%2Bw20210511.gif" width="320" /></a><br /><span style="font-style: italic;">Chart 2: PBBank's weekly chart as at May 11, 2021(Source: MalaysiaStock.biz)</span><span style="font-style: italic;"></span><br /><br /><b>Conclusion</b><br /><br />Based on good financial performance and fair valuation, PBBank is still a good stock for long-term investment. <br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b> </p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-17601322786600307802021-04-30T08:28:00.006+08:002021-04-30T08:28:54.701+08:00LCTITAN: Earnings Soared<p><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Background</b></span></p><div><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;">Lotte Chemical Titan Holdings Bhd ("LCTitan") is a petrochemical producer. Its main products are polyolefins and olefins.Polyolefin products accounts for 18% & 9% of revenue & segmental
results respectively while olefins & derivative products accounts for 82%
& 91% of revenue & segmental results respectively.</p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Financial Performance</b><o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;">For QE31/3/2021, LCTitan's net profit rose 191% q-o-q to RM440 million on the back of a 23%-increase in revenue to RM<span>2.367 billion. As compared to the results in the corresponding quarter last year, LCTitan has returned to the black due to increased sales volume & selling price. This, combined with higher plant utilization of 88%, helped to results of the group.</span></span></p><div class="separator" style="clear: both; text-align: center;"><br /></div><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"> </span><a href="https://1.bp.blogspot.com/-sHQdmr5kl_k/YItMvDHxCrI/AAAAAAAAxtQ/5M-wIB_WvDoasqrNoEOAT2e0aDfyxDW2wCLcBGAsYHQ/s932/LCtitan%2527s%2B8Qs.gif" imageanchor="1" style="font-family: "Times New Roman", serif; font-size: 17.3333px; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="904" data-original-width="932" src="https://1.bp.blogspot.com/-sHQdmr5kl_k/YItMvDHxCrI/AAAAAAAAxtQ/5M-wIB_WvDoasqrNoEOAT2e0aDfyxDW2wCLcBGAsYHQ/s320/LCtitan%2527s%2B8Qs.gif" width="320" /></a></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"> </span><i>Table: LCTitan's last 8 quarterly results</i></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;">Looking at the graph below, we can see that LCTitan's profit has exceeded the high achieved in QE30/6/2016.</p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><a href="https://1.bp.blogspot.com/-cOGDbEuafEU/YIq3VwFzdqI/AAAAAAAAxs0/Z2AYczRl7psidqOcXqqZvOkgQFcUuH2wgCLcBGAsYHQ/s607/LCtitan%2527s%2BP%2526L.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="607" data-original-width="506" height="320" src="https://1.bp.blogspot.com/-cOGDbEuafEU/YIq3VwFzdqI/AAAAAAAAxs0/Z2AYczRl7psidqOcXqqZvOkgQFcUuH2wgCLcBGAsYHQ/s320/LCtitan%2527s%2BP%2526L.gif" /></a></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><i>Graph: LCTitan's last 21 quarterly results</i></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Financial Position</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;">As at 31/3/2021, LCTitan's financial position is deemed healthy with current ratio at 7.03 times while gearing ratio was at only 0.14 time. </span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Valuation</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;">LCTitan (closed at RM2.99 last Wednesday) is now trading at a PE of 9 times (based on last 4 quarters' EPS of 33 sen). </span><span style="font-family: "Times New Roman", serif; font-size: 17.3333px;">Based on this, LCTitan is deemed to be an attractive investment.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Technical Outlook</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;">Looking at the weekly chart below, we can see that LCTitan broke above its downtrend line (in red) at RM1.80 in May 2020. Its uptrend since then has been capped just below RM3.00 (to be more precise at RM2.95). Last Wednesday's results announcement boosted the share price passed the resistance of RM2.95-3.00. This may mark the continuation of the uptrend in LCTitan's share price.</span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"> </span><a href="https://1.bp.blogspot.com/-ojTalSthjb0/YIq3V6GKwOI/AAAAAAAAxs8/GGG4mO4W6FwGMQS19GhkmnPvMq_mpVYYwCLcBGAsYHQ/s1325/LCTitan%2Bw20210428.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-ojTalSthjb0/YIq3V6GKwOI/AAAAAAAAxs8/GGG4mO4W6FwGMQS19GhkmnPvMq_mpVYYwCLcBGAsYHQ/s320/LCTitan%2Bw20210428.gif" width="320" /></a></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><i>Chart: </i><i>LCTitan's weekly </i><i><i>chart </i><i><i><i><i>as at </i></i></i></i></i><i>April 28, 2021</i><i> (Source: Malaysiastock.biz)</i></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 0cm;"><span style="font-family: "Times New Roman", serif; font-size: 13pt;"><b>Conclusion</b><o:p></o:p></span></p></div><div><br /></div><div>Based on the good financial performance & position, attractive valuation & positive technical outlook, LCTitan is a good stock for long-term investment.</div><div><b style="font-family: "times new roman"; font-size: 16px;"><i style="mso-bidi-font-style: normal;"><br /></i></b></div><div><b style="font-family: "times new roman"; font-size: 16px;"><i style="mso-bidi-font-style: normal;">Note:</i></b><br style="font-family: "times new roman"; font-size: 16px;" /><br style="font-family: "times new roman"; font-size: 16px;" /><b style="font-family: "times new roman"; font-size: 16px; mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="font-family: "times new roman"; font-size: 16px; mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="font-family: "times new roman"; font-size: 16px; mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-6471610800168189662021-03-10T08:40:00.001+08:002021-03-10T09:22:12.477+08:00TOPGLOV: Fantastic Earnings For Now? (UPDATED)<p><b>Result Update</b></p><p>For QE28/2/2021, Topglov's net profit rose 20.8% q-o-q or 24-fold y-o-y to RM2.869 billion while revenue rose 12.7% q-o-q or 336% y-o-y to RM5.365 billion. <span style="font-family: "Times New Roman", serif; font-size: 12pt;">The Group’s strong and healthy Sales figures were
attributed to the continued demand for gloves globally while the improved
Profit came on the back of higher sales output, high utilisation levels which
amplified production efficiency, coupled with higher average selling prices
(ASPs) in line with market pricing. The Group’s healthy profit was also
attributed to ongoing enhancements across its operations, through digital
transformation, continuous R&D and innovation, quality and productivity
initiatives and talent acquisition and development.</span></p><p> <a href="https://1.bp.blogspot.com/-xAZvnp8dqqg/YEduvaqK7rI/AAAAAAAAxrY/0jggHno9ka0DcYFuJKaCIijp7hwIcdZkQCLcBGAsYHQ/s1036/Topglov%2527s%2B8Qs.gif" style="font-family: "times new roman"; font-size: 16px; font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="929" data-original-width="1036" src="https://1.bp.blogspot.com/-xAZvnp8dqqg/YEduvaqK7rI/AAAAAAAAxrY/0jggHno9ka0DcYFuJKaCIijp7hwIcdZkQCLcBGAsYHQ/s320/Topglov%2527s%2B8Qs.gif" width="320" /></a><br /><i>Table 1: Topglov's last 8 quarterly results</i><br /></p><p><a href="https://1.bp.blogspot.com/-2gMWatVNnCY/YEduvfthPHI/AAAAAAAAxrc/eYygYxZOboU3gsukx7lksKcxrjyW_U6kgCLcBGAsYHQ/s1282/Topglov%2527s%2B74Qs.gif" style="font-family: "times new roman"; font-size: 16px; font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1282" data-original-width="698" height="320" src="https://1.bp.blogspot.com/-2gMWatVNnCY/YEduvfthPHI/AAAAAAAAxrc/eYygYxZOboU3gsukx7lksKcxrjyW_U6kgCLcBGAsYHQ/s320/Topglov%2527s%2B74Qs.gif" /></a><br /><i>Graph: Topglov's last 74 quarterly results</i></p><p><b>Financial Position</b></p><p>As at 28/2/2021, Topglov's financial position is deemed healthy with current ratio at 1.9 times and Total liabilities to Total equity at 0.51 time.</p><p><b>Valuation</b><br /><br />Topglov (closed at RM5.19 yesterday) is now trading at a trailing PE of 6 times (based on last 4 quarters' EPS of 85.89 sen). This exceptionally low PE ratio reflects investors' perception that Topglov's future earnings must decline in the near term due to average selling prices & profit margins normalization. This is not unreasonable given the glove demand has been driven by the Covid-19 pandemic, which is expected to be brought under control with the arrival of vaccines worldwide.</p><p>My previous 2 earnings reports on Topglov prior to the pandemic were in June 2019 (<a href="https://nexttrade.blogspot.com/2019/06/topglov-bottom-line-plunged.html">here</a>) and October 2018 (<a href="https://nexttrade.blogspot.com/2018/10/topglov-earnings-remained-healthy.html">here</a>). In these reports, Topglov was trading at a PE of 31-32 times. Assuming that Topglov's fair PE is 32 times, the only way that Topglov's current share price can be justified is for its quarterly earnings to drop by a whopping 81% from RM2.869 billion to RM545 million! Is that too extreme?! </p><p>To get a better feel of how much Topglov's net profit has risen, let's compare the financial performance in the last 4 quarters against the performance in the preceding 4 quarters. Ssee Table 2 below. </p><p><a href="https://1.bp.blogspot.com/-F9RJW5MCtUc/YEgPH4HoP1I/AAAAAAAAxr4/N6xMP-H3W40sYbBYNcsV_DKIMZ_sCGs2wCLcBGAsYHQ/s1372/Topglov%2527s%2Blatest%2B4Qs%2Bcf%2Bprevious%2B4Qs.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="224" data-original-width="1372" height="65" src="https://1.bp.blogspot.com/-F9RJW5MCtUc/YEgPH4HoP1I/AAAAAAAAxr4/N6xMP-H3W40sYbBYNcsV_DKIMZ_sCGs2wCLcBGAsYHQ/w400-h65/Topglov%2527s%2Blatest%2B4Qs%2Bcf%2Bprevious%2B4Qs.gif" width="400" /></a></p><p><i>Table 2: Topglov's latest 4 quarterly results compared to the previous 4 quarterly results</i></p><p>The first thing that would jump up is the staggering 18-fold increase in net profit from RM382 million to RM6.885 billion! This was achieved on the back of a 210%-increase in revenue from RM4.819 billion to RM14.922 billion. From the foregoing, I would highlight 2 points:</p><p>(a) Topglov's net profit margin has shot up from a mere 7.9% to 46.1%. </p><p>(b) As a result, quarterly net profit rose from an average of RM95 million to RM1.721 billion. </p><p>With the pandemic being brought under control, it is likely that the abnormally high net profit margin will decline over the next few quarters. I have computed 4 scenarios of lower net profit margin. See Table 3 below.</p><p><a href="https://1.bp.blogspot.com/-Cu9eZt3cJ9Y/YEgPHxGqxUI/AAAAAAAAxr8/CcG1IiqHyfUDeIvKYi3al5ZiFDyZVL1FACLcBGAsYHQ/s802/Topglov%2527s%2Bprofit%2Bscenarios.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="174" data-original-width="802" height="86" src="https://1.bp.blogspot.com/-Cu9eZt3cJ9Y/YEgPHxGqxUI/AAAAAAAAxr8/CcG1IiqHyfUDeIvKYi3al5ZiFDyZVL1FACLcBGAsYHQ/w400-h86/Topglov%2527s%2Bprofit%2Bscenarios.gif" width="400" /></a></p><p><i>Table 3: Topglov's 4 possible scenarios of net profit margin & valuation estimate</i></p><p>If we accept that Topglov would eventually trade at its past PE of 31-32 times, then the market is now projecting its <b>4-quarter</b> net profit would go down to RM1.344 billion in next few quarters. <b>That means its quarterly net profit would be about RM336 million. </b></p><p>Nothing is a sure thing in investing. If the above computation and assumptions are too pessimistic and proven wrong later, then the market will revise its outlook and the share price will go up, or <i>vice versa</i>. For now, this is what's the market is telling us.</p><p><b>Technical Outlook</b></p><p>Topglov has peaked at RM9.76 in early August, and then went into a gradual decline. If you plot a semi-log chart, it is possible to draw an uptrend line, SS with support at RM4.60.</p><p><a href="https://1.bp.blogspot.com/-SJQ7j8ZRFQ0/YEduvnr_ezI/AAAAAAAAxrg/T7rob1qS58A7m69F65vCNIs3n_8d1XJHQCLcBGAsYHQ/s1325/Topglov%2Bd20210309.gif" style="font-family: "times new roman"; font-size: 16px; font-style: italic; font-weight: 700; margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-SJQ7j8ZRFQ0/YEduvnr_ezI/AAAAAAAAxrg/T7rob1qS58A7m69F65vCNIs3n_8d1XJHQCLcBGAsYHQ/s320/Topglov%2Bd20210309.gif" width="320" /></a><br /><i><i>Chart 1: </i></i><i>Topglov's semi-log daily </i><i><i>chart </i><i><i><i><i>as at </i></i></i></i></i><i>Mar 9, 2021</i><i> (Source: Malaysiastock.biz)</i><br /></p><div class="separator" style="clear: both;"><b><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Conclusion</span></span></b></div><p><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;">Based on the current strong financial performance, healthy financial position and fairly attractive valuation, Topglov makes a very appealing case as a value stock for long-term investment. However the arrival of vaccines and their positive impact in controlling the spread of the pandemic have changed the narrative of investing in pandemic stocks. Is Topglov a value stock or a value trap? Only time will tell. </span></span><br /><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><br /></span></span><span style="font-family: "arial";"><span style="font-family: "times new roman"; font-size: 12pt;"><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;">As investor, you should fully research any security before making an investment decision.</span></i></b></span></span></p><p></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com2tag:blogger.com,1999:blog-29462482.post-76607378871944464942021-02-28T22:04:00.004+08:002021-03-01T09:30:43.350+08:00LATITUD: Earnings Growth Continued (UPDATED)<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><p></p><p></p>In QE301/12/2020, Latitud's net profit rose 103% q-o-q or 269% y-o-y to RM26.6 million while revenue rose 4% q-o-q or 17% y-o-y to RM244 million. The Group revenue rose q-o-q mainly attributable to higher sales recorded by furniture plants due to higher shipment in current quarter and higher local sales recorded by panel board lamination plant, which were offset by weakening of US Dollar (“USD”) against Ringgit Malaysia (“RM”) by 1.2%.<div><br /><div>The Group has recorded a 80%-increase in PBT from RM16.8 million to RM30.3 million mainly attributable to the increase in gross profit; lower foreign exchange loss of RM1.1 million recorded in current quarter compared to preceding quarter; and final insurance compensation of RM7.8 million received by a furniture plant in Vietnam in current quarter for a fire incident occurred in FY2018.</div><div><br /></div><div>The Group has recorded 26%-increase in gross profit from RM30.3 to RM38.1 million mainly attributable to the increase in revenue and higher sales of better margin products.</div><br /><a href="https://1.bp.blogspot.com/-DxelaZ8T3Q4/YDnqvcALs-I/AAAAAAAAxrA/8Lo7AYD2Zx4Rqi_G4TM_Cti6-OUMpatywCLcBGAsYHQ/s984/lATITUD%2527S%2B8qS.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="984" data-original-width="917" height="320" src="https://1.bp.blogspot.com/-DxelaZ8T3Q4/YDnqvcALs-I/AAAAAAAAxrA/8Lo7AYD2Zx4Rqi_G4TM_Cti6-OUMpatywCLcBGAsYHQ/s320/lATITUD%2527S%2B8qS.gif" /></a><br /><span style="font-style: italic;">Table: Latitud's 8 quarterly results</span><br /><br /><a href="https://1.bp.blogspot.com/-SnLuZvi3sk4/YDnqufJ6hCI/AAAAAAAAxq0/s7si0ns2yDYjGeiN-8Rs5CmG09EiDCISQCLcBGAsYHQ/s787/lATITUD%2527S%2B62qS.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="787" data-original-width="687" height="320" src="https://1.bp.blogspot.com/-SnLuZvi3sk4/YDnqufJ6hCI/AAAAAAAAxq0/s7si0ns2yDYjGeiN-8Rs5CmG09EiDCISQCLcBGAsYHQ/s320/lATITUD%2527S%2B62qS.gif" /></a><br /><span style="font-style: italic;">Graph: Latitud</span><span style="font-style: italic;">'s P&L for last 62 quarterly results</span><br /><br /><b>Financial Position</b><br /><br />As at 31/12/2020, Latitud's financial position is deemed healthy with current ratio at 2.2x and gearing ratio at 0.5x.<br /><br /><b>Valuation</b><br /><br />Latitud (closed at RM4.19 last Friday) is now trading at a trailing PER of 9.4 times (based on last 4 quarters' EPS of 44.7 sen). If we exclude the one-off exceptional gain from insurance claim of RM7.8 million received by a furniture plant in Vietnam, the PE ratio is still quite attractive at 11.4 times.<br /><br /><b>Proposed Bonus Issue</b></div><div><br /></div><div>Latitud has proposed a 1-for-1 bonus issue in January (<a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3119645">here</a>). The ex date for the bonus issue has just been fixed on 12 February (<a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3133938">here</a>). This will likely attract retail buying interest which will boost the share price in the near term.<br /><br /><b>Technical Outlook</b><br /><br />Latitud is in an uptrend line with support at RM3.90. Immediate resistance is at the horizontal line at RM4.50.<div><br /></div><div><div class="separator" style="clear: both; text-align: left;"><a href="https://1.bp.blogspot.com/-EKEp3GzTY8E/YDnqudQZjgI/AAAAAAAAxq4/9ADaXzWEkkMoLGpbLcQEwg9mjIA4nUdwACLcBGAsYHQ/s1325/lATITUD%2BD20210226.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-EKEp3GzTY8E/YDnqudQZjgI/AAAAAAAAxq4/9ADaXzWEkkMoLGpbLcQEwg9mjIA4nUdwACLcBGAsYHQ/s320/lATITUD%2BD20210226.gif" width="320" /></a></div><div class="separator" style="clear: both; text-align: left;"><i>Chart 1: </i><i><span>Latitud</span>'s daily chart as at Feb 25, 2021</i><i> (Source: Malaysiastock.biz)</i></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Looking at the monthly chart, we can see that Latitud has broken above the long term downtrend line at RM2.50 in October 2020.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div><a href="https://1.bp.blogspot.com/-JicO4W7BsP4/YDnquShJ8vI/AAAAAAAAxq8/RA09dqAqz9wkHxLNuaQbohIdLKIqtQ9OACLcBGAsYHQ/s1325/lATITUD%2Bm20210226.gif" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-JicO4W7BsP4/YDnquShJ8vI/AAAAAAAAxq8/RA09dqAqz9wkHxLNuaQbohIdLKIqtQ9OACLcBGAsYHQ/s320/lATITUD%2Bm20210226.gif" width="320" /></a><br /><i>Chart: </i><i><span>Latitud</span>'s monthly </i><i>chart as at Feb 25, 2021</i><i> (Source: Malaysiastock.biz)</i><br /><br /><b>Conclusion</b><br /><br />Based on good financial performance & position, fairly attractive valuation and bullish technical outlook, Latitud is a good stock for long-term investment.<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div></div></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-69870512377262783862021-02-25T09:06:00.002+08:002021-02-25T09:06:48.750+08:00EFORCE: Revenue & Earnings Continued to Grow<p><b>Result Update</b></p><p>For QE31/12/2020, EForce's net profit rose 48% q-o-q or 142% y-o-y to RM3.9 million while revenue rose 3% q-o-q or 59% y-o-y to RM9.2 million. Revenue grew steadily due to "<span style="font-family: "Times New Roman", serif; font-size: 12pt;">continuing interest of retail investors in Bursa
securities sustained the overall high daily trading volume in quarter 4. Hence
the sustained growth in our increase in Application Services Providers (“ASP”)
revenue. However, our Application Solution (AS) segment performance was flat to
last year. System enhancement project implementations resumed earnestly in this
quarter, and billings for work done expected next year."</span></p><p class="MsoNormal"><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></p><p><a href="https://1.bp.blogspot.com/-MX-Ek5MPIdA/YDbz_tqIx_I/AAAAAAAAxqg/4KVulaU5OXk1LsrgUpqxqTvcpOOkJM3IgCLcBGAsYHQ/s898/Eforce%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="439" data-original-width="898" src="https://1.bp.blogspot.com/-MX-Ek5MPIdA/YDbz_tqIx_I/AAAAAAAAxqg/4KVulaU5OXk1LsrgUpqxqTvcpOOkJM3IgCLcBGAsYHQ/s320/Eforce%2527s%2B8Qs.gif" width="320" /></a><br /><i>Table: EForce's last 8 quarterly results</i><br /><br /><a href="https://1.bp.blogspot.com/-48XJbwDH4dc/YDbz_Xqa-7I/AAAAAAAAxqc/N-uht9LhpRkIhdzD1LuzLOi9JjxVqgE0QCLcBGAsYHQ/s599/Eforce%2527s%2B48Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="588" data-original-width="599" src="https://1.bp.blogspot.com/-48XJbwDH4dc/YDbz_Xqa-7I/AAAAAAAAxqc/N-uht9LhpRkIhdzD1LuzLOi9JjxVqgE0QCLcBGAsYHQ/s320/Eforce%2527s%2B48Qs.gif" width="320" /></a><br /><span style="font-style: italic;">Graph: EForce's last 48 quarterly results</span><span style="font-weight: bold;"></span><b> </b></p><p><b>Financial Position</b></p><p>As at 31/12/2020, EForce's financial position is deemed very healthy with current ratio at 5.7 times. The company has cash balance of RM22.9 million (or equivalent to 3.7 sen per share). It has no borrowing. <br /><br /><b>Valuation</b><br /><br />EForce (closed at RM0.46 yesterday) is now trading at a PE of 24 times (based on last 4 quarters' EPS of 1.90 sen). Based on this PE ratio, EForce is deemed fairly valued.<br /><br /><b>Technical outlook</b><br /><br />EForce is trading not far from the line connecting the last 5 years' lows (excluding the Mar 2020 extreme low) at RM0.40-0.42. If we drew a line connecting all the lows (including the Mar 2020 extreme low), that baseline will act as support at RM0.25. At this moment, there is no sign that EForce share price is poised for an upside move.<br /><br /><a href="https://1.bp.blogspot.com/-5SS9Qzpk9gI/YDb2yRukX3I/AAAAAAAAxqs/0w6nACsN4n0JNyqdOFxj5Y29fZsoesxJACLcBGAsYHQ/s1325/Eforce%2Bm20210224.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-5SS9Qzpk9gI/YDb2yRukX3I/AAAAAAAAxqs/0w6nACsN4n0JNyqdOFxj5Y29fZsoesxJACLcBGAsYHQ/s320/Eforce%2Bm20210224.gif" width="320" /></a><i> </i><br /><i>Chart: EForce's monthly chart as at Feb 24, 2021 </i><i>(Source: Malaysiastock.biz)</i></p><div class="separator" style="clear: both; text-align: left;">Conclusion </div><p>Based on improved financial performance, good financial position & reasonable valuation, EForce is a good stock for long term investment.<br /><br /><b><i style="mso-bidi-font-style: normal;">Note:</i></b><br /><br /><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></p>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0tag:blogger.com,1999:blog-29462482.post-39711970841108452792021-02-25T08:30:00.001+08:002021-02-25T08:30:05.989+08:00BOXPAK: Decent Earnings Continued<p></p><div class="separator" style="clear: both; text-align: left;"><b>Result Update</b></div><p></p>For QE31/12/2020, Boxpak's net profit dropped 7% q-o-q but rose 101% y-o-y to RM5.9 million while revenue rose 8% q-o-q or 10% y-o-y to RM187 million.<div><br /></div><div>The group revenue increased q-o-q mainly contributed by increase in sales volume in Malaysia, Vietnam and Myanmar operations. As a result of improvement in revenue, the Group's gross profit improved q-o-q from RM21.7 million to RM23.0 million. Consequently, the Group recorded a profit before taxation of RM7.3 million in QE31/12/2020.<br /><br /><a href="https://1.bp.blogspot.com/-ixAWKz4IoN0/YDZSv4kF0mI/AAAAAAAAxqA/qm11GNV514MgYKVqnQwFzWOplN9OTcsUwCLcBGAsYHQ/s859/Boxpak%2527s%2B8Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="751" data-original-width="859" src="https://1.bp.blogspot.com/-ixAWKz4IoN0/YDZSv4kF0mI/AAAAAAAAxqA/qm11GNV514MgYKVqnQwFzWOplN9OTcsUwCLcBGAsYHQ/s320/Boxpak%2527s%2B8Qs.gif" width="320" /></a><br /><i>Table 1: Boxpak's last 8 quarterly results</i><br /><br />Looking at the full year segmental reporting, you can see clearly that Boxpak's earnings turnaround was due to lower operating expenses. <br /><br /><a href="https://1.bp.blogspot.com/-8h-nnJZTkeA/YDZSw8fvxdI/AAAAAAAAxqI/AT58DEcw7vEwtiaqLWApoX9TJyP5hH3FQCLcBGAsYHQ/s917/Boxpak%2527s%2BFY2020%2B%2526%2BFY2019%2Bresults.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="822" data-original-width="917" src="https://1.bp.blogspot.com/-8h-nnJZTkeA/YDZSw8fvxdI/AAAAAAAAxqI/AT58DEcw7vEwtiaqLWApoX9TJyP5hH3FQCLcBGAsYHQ/s320/Boxpak%2527s%2BFY2020%2B%2526%2BFY2019%2Bresults.gif" width="320" /></a><br /><i>Table 2: Boxpak's full year segmental performance for FY2020 and FY2019</i><br /><br /><a href="https://1.bp.blogspot.com/-hSqKxyBnEOI/YDZSv01UjZI/AAAAAAAAxp8/Y5fCRP0hQC8wT4zUVlQRvDRq4jcnPDlKACLcBGAsYHQ/s708/Boxpak%2527s%2B53Qs.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="708" data-original-width="596" height="320" src="https://1.bp.blogspot.com/-hSqKxyBnEOI/YDZSv01UjZI/AAAAAAAAxp8/Y5fCRP0hQC8wT4zUVlQRvDRq4jcnPDlKACLcBGAsYHQ/s320/Boxpak%2527s%2B53Qs.gif" /></a><br /><span style="font-style: italic;">Graph: Boxpak's last 53 quarterly results</span><span style="font-weight: bold;"></span><b></b><br /><br /><b>Financial Position</b><br /><br />Due to its rapid growth, Boxpak's financial position is a bit stretched. Liquidity is tight with current ratio at 0.94 time as at 31/12/2020 while gearing is elevated with total liabilities to total equity at 1.6 times.<br /><br /><b>Valuation</b><br /><br />Boxpak (closed at RM1.50 yesterday) is now trading at a PE of 15 times (based on last 4 quarters' EPS of 9.95 sen). While the PE ratio is fair, this ratio can improve as the earnings of the company continue to improve. <br /><br /><b>Technical Outlook</b><br /><br />Boxpak has started on its uptrend. While the uptrend is not strong, it is likely to pick up pace once the MACD cross into the positive territory.<br /><br /><a href="https://1.bp.blogspot.com/-URXT5KMpej0/YDZSv04JJRI/AAAAAAAAxqE/7TCoP_cXxaAKKKA5H-8ndZHerc3nPuYAACLcBGAsYHQ/s1325/Boxpak%2Bm20210224.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="813" data-original-width="1325" src="https://1.bp.blogspot.com/-URXT5KMpej0/YDZSv04JJRI/AAAAAAAAxqE/7TCoP_cXxaAKKKA5H-8ndZHerc3nPuYAACLcBGAsYHQ/s320/Boxpak%2Bm20210224.gif" width="320" /></a><br /><i>Chart 1: </i><span style="font-style: italic;">Boxpak's monthly chart as at </span><span style="font-style: italic;">Feb 24, 2020 (Source: Malaysiastock.biz)</span><br /><br /><b>Conclusion</b><br /><br />Based on improved financial performance and positive technical outlook, Boxpak is a good stock for long term investment.<br /><br /><i><b>Note:</b></i><br /><div class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post.</i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="mso-fareast-language: EN-US;"> However, I could have an indirect interest in </span>the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. </i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">As investor, you should fully research any security before making an investment decision.</i></b></div></div>Alex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.com0