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Friday, August 17, 2018

KPJ: Tentative Signs of Earning Expansion

Result Update 

For QE30/6/2018, KPJ's net profit dropped 0.3% q-o-q but rose 32% y-o-y to RM42 million while revenue dropped 2.6% q-o-q but rose 1.1% y-o-y to RM801 million. Revenue rose y-o-y mainly contributed by the increase in number of patient episodes and complex cases per inpatient particularly for KPJ Rawang, KPJ Bandar Maharani and KPJ Pasir Gudang. Besides, increased activities at the support companies also contributed to the revenue growth. In current quarter, KPJ Perlis has commenced its operation on 17 May 2018.

Profit before zakat and tax has increased to RM62.0 million during this quarter, an increase of 26% from RM49.1 million in the same quarter in 2017, contributed by the cost optimisation initiatives by the hospitals mainly the new hospitals which were under gestation period.


Table: KPJ's last 8 quarterly results

KPJ's quarterly revenue has been on a steady uptrend for the past 10 years. Its earning has been flattish in the past 5-6 years due to expansion program which led to lower profit margin as higher administrative expenses were not fully absorbed by revenue from the newly hospitals opened. However profits & profit margins seem to be curving upward. If these trends persist, we may see a breakout in profits next few quarters.


Graph: KPJ's last 46 quarterly results

Valuation

KPJ (closed at RM1.14 yesterday) is now trading at a PE of 23.4 times (based on last 4 quarters' EPS of 4.87 sen). At this PER, KPJ is fully valued. 

Technical Outlook

KPJ has been moving sideways for the past 5-6 years. If it can break above the red band between RM1.15-1.20, KPJ's uptrend will continue.


Chart 1: KPJ's monthly chart as at Aug 16, 2018 (Source: ShareInvestor.com)


Chart 2: KPJ's weekly chart as at Aug 16, 2018 (Source: ShareInvestor.com)

Conclusion

Based on good financial performance and exposure to a growing consumer service sector, KPJ could be a good stock for long-term investment.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

Wednesday, August 15, 2018

TCHONG: Earning Recovery Hasn't Begun Yet

Result Update

For QE30/6/2018, TChong's net profit increased by 190% q-o-q to RM12 million while revenue rose 5% q-o-q to RM1.088 billion. Revenue rose q-o-q mainly due to higher number of vehicles sold and EBITDA & net profit rose q-o-q due to improvement in the margins with the favourable sales mix.


Table: TChong's last 8 quarterly results

TChong's revenue, profits and profit margins appear to have turn the corner in the last few quarters.


Graph: TChong's last 47 quarterly results

Financial Position

As at 30/6/2018, TChong's financial position is deemed satisfactory with current ratio at 1.4 times and gearing ratio at 0.9 time.

Valuation

TChong (closed at RM1.69 yesterday) is now trading at a PBR of 0.4 times (based on NTA of RM4.28 as at 30/6/2018). As the group has yet to make a profit on cumulative basis for the 4 quarters to 30/6/2018, TChong is unable to give out any PER.

Technical Outlook

TChong appears to be making a base at around RM1.60.


Chart 1: TChong's monthly chart as at Aug 14, 2018 (Source: ShareInvestor.com)


Chart 2: TChong's weekly chart as at Aug 14, 2018 (Source: ShareInvestor.com)

Conclusion

Based on improved financial performance & adequate financial position, TChong could be a good stock for recovery play.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

Tuesday, August 14, 2018

Market Outlook as at August 13, 2018

Our market declined broadly yesterday in line with decline in global markets. This global decline is brought on by uncertainty and confusion generated by reckless action in Washington- the latest being tariff to be levied against Turkey. We will never be able to keep up with a madman, and we will do more harm to ourselves if even tried to match. For that reason, we must avoid being suck into the fear-and-greed cycle and keep calm in this man-made storm. 

Looking at the major indices in our market, I believe that FBMKLCi & FBM70 are merely consolidating after a sharp rally while FBMSCAP & FBMACE are getting ready to follow in the footsteps of FBMKLCI & FBM70. This period of uncertainty could be a time for us to slowly buy into beaten down stocks.


Chart 1: FBMKLCI's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 2: FBM70's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 3: FBMSCAP's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


Chart 4: FBMACE's daily chart as at Aug 13, 2018 (Source: Shareinvestor.com)


GCB: Strong Earning Maintained

Results Update

For QE310/6/2018, GCB's net profit rose 9% q-o-q or 88% y-o-y to RM43 million while revenue was mixed - down 5% q-o-q but up 2% y-o-y - to RM492 million. Revenue increased y-o-y mainly due to increase in sales volume of cocoa products. The profit before tax rose y-o-y mainly due to improved margin.


Table: GCB's last 8 quarterly results


Graph: GCB's last 55 quarterly results

Valuation

GCB (closed at RM2.06 yesterday) is now trading at a trailing PER of 6.9 times (based on last 4 quarters' EPS of 29.9 sen). At this PER, GCB is deemed attractively valued.

Technical Outlook

GCB is likely to test the January high at RM2.20. If it can break above RM2.20, GCB may reach RM3.00-3.50 (depending on the time frame) based on a 1-to-1 extension.


Chart 1: GCB's weekly chart as at Aug 13, 2018(Source: Shareinvestor.com)


Chart 2: GCB's monthly chart as at Aug 13, 2018(Source: Malaysiastock.biz)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, GCB is a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

YSPSAH: Earning Rose on Better Profit Margins

Results Update

For QE30/6/2018, YSPSAH's net profit rose 54% q-o-q or 227% y-o-y to RM10.4 million while revenue was mixed - down 5% q-o-q but up 13% y-o-y - to RM67.8 million. Revenue dropped q-o-q mainly due to a slight reduction in demand from local market. Net profit rose q-o-q as a result of higher profit margin from changes in product mix during the quarter under review


Table: YSPSAH's last 12 quarterly results


Graph: YSPSAH's last 24 quarterly result

Financial Position

As at 30/6/2018, YSPSAH's financial position is deemed very healthy with current ratio at 4.3 times and gearing ratio at 0.3 time.

Valuation

YSPSAH (closed at RM2.80 yesterday) is now trading at a trailing PER of 14.7 times (based on laat 4 quarters' EPS of 19 sen). At this PER, YSPSAH is deemed fully valued.

Technical Outlook

YSPSAH may test the line connecting the highs made in 2015 & 2017, AB at RM3.00.


Chart 1: YSPSAH's weekly chart as at Aug 18, 2015 (Source: Malaysiastock.biz)


Chart 2: YSPSAH's monthly chart as at Aug 18, 2015 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance & position, YSPSAP is considered a good stock for medium-term investment. The stock's upside is limited due to technical resistance ahead as well as being fairly valued.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

Thursday, August 09, 2018

Asian Markets Are Divided

Asian stock markets are divided into two camps; those that broke their uptrend lines and those that are still in an uptrend. In the first group, we have SSEC, HSI & STI. SSEC broke its uptrend line in February- right after Trump started talking about having a trade war with China. HSI & STI were able to hold out for a while but they too succumbed to the selling pressure, and broke their uptrend lines in June. 


Chart 1: SSEC's daily chart as at Aug 8, 2018 (Source: Stockchart.com)


Chart 2; HSI's daily chart as at Aug 8, 2018 (Source: Stockchart.com)


Chart 3: STI's daily chart as at Aug 8, 2018 (Source: Stockchart.com)

The second group of stock markets that manage to continue to trend higher are NIKK, BSE and, surprise, surprise, TWII.


Chart 4: NIKK's daily chart as at Aug 8, 2018 (Source: Stockchart.com)


Chart 5: BSE's daily chart as at Aug 8, 2018 (Source: Stockchart.com)


Chart 6: TWII's daily chart as at Aug 8, 2018 (Source: Stockchart.com)

FBMKLCI appears to fall in between these 2 groups; we have to drifting higher (if that's ever possible). As noted in the immediate preceding post, FBMKLCI has surpassed the 200-day SMA line and it may begin to go into an upswing. Hopefully we will join the latter grouping and be among the performing stock markets in this region.

Market Outlook as at August 8, 2018

FBMKLCI broke above the 200-day Simple moving average line yesterday. In the past 18 months, the 200d SMA line serves very well as the support and resistance for the index. An upside breakout was followed by a rally to the upside while a downside breakout was followed by a further decline. If this pattern continued, we can expect a rally for FBMKLCI. 


Chart 1: FBMKLCI's daily chart as at Aug 8, 2018 (Source: Shareinvestor.com)

I have looked thru the various sectoral indices. Only 2 indices stood out- Finance and Technology. That means we should pay more attention to stocks in these sectors. Good luck!


Chart 2: Finance's daily chart as at Aug 8, 2018 (Source: Shareinvestor.com)


Chart 3; Technology's daily chart as at Aug 8, 2018 (Source: Shareinvestor.com)

Wednesday, August 08, 2018

FRONTKN: Strong Earnings Continued

Background

Frontken Corp Bhd ("Frontkn") is involved in the provision of surface and mechanical engineering solutions for industries such as Oil & Gas, Power generation and Marine. For more on its services, go here.

Historical Financial Performance

The past 12 years P&L shows Frontkn's top-line and bottom-line have been on a steady uptrend.

Graph 1: Frontkn's last 12 yearly results

Latest Financial Performance

For QE30/6/2018, Frontkn's net profit rose 92% q-o-q or 107% y-o-y to RM12 million while revenue rose 15% q-o-q or 16% y-o-y to RM82 million. Revenue rose q-o-q due to improved business performance for the Group’s subsidiary in Taiwan, Malaysia, Singapore and the Philippines. PBT soared mainly due to higher revenue and foreign exchange gain as compared to foreign exchange loss in the immediate preceding quarter.


 Table: Frontkn's last 8 quarterly results


Graph 2: Frontkn's last 25 quarterly results

Financial Position

As at 30/6/2018, Frontkn's financial positon is deemed healthy with current ratio at 2.6 times and gearing ratio at 0.34 times. It has net cash in hand totaling RM105 million (or, RM0.08 per share).

Valuation

Frontkn (closed at RM0.64 yesterday) is trading at a trailing PER of 18 times (based on last 4 quarters' EPS of 3.55 sen). At this PER, Frontkn is deemed fully valued.

Technical Outlook

Frontkn broke above the high of RM0.52 recorded in January this year. It may potentially hit a high of RM0.67-0.70 based on 1-to-1 extension.


Chart 1: Frontkn's weekly chart as at Aug 7, 2018 (Source: Shareinvestor.com)

Frontkn's uptrend is very sharp, rising from RM0.13 in 2016 to the current price of RM0.64. All exponential rallies are beautiful events- until pullback set in. Then they would leave a bloody trail. Be careful.


Chart 2: Frontkn's monthly chart as at Aug 7, 2018 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance & healthy financial position and positive technical outlook, Frontkn can be a good stock for long-term investment. As always, you should consider buying only when the price weakness.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

DUFU: Earning Soared

Result Update

For QE30/6/2018, Dufu's net profit rose 105% q-o-q or 72% y-o-y to RM12 million while revenue rose 11% q-o-q or 43% y-o-y to RM59 million. Revenue rose strongly q-o-q due to the strong demand in the HDD segment and together with the favorable USD exchange rates against MYR also attributed to the increase in profit before tax.


Table: Dufu's last 8 quarterly result


Graph: Dufu's last 20 quarterly result

Financial Position

Dufu's financial position as at 30/6/2018 is deemed healthy. Its current ratio and gearing ratio stood at 3.6 times and 0.3 times respectively.

Valuation

Dufu (closed at RM1.62 yesterday) is now trading at a trailing PER of 8.8x (based on last 4 quarters' EPS of 18.4 sen). At this PER, Dufu is deemed fairly attractive.

Technical Outlook

Dufu broke above its downtrend line, RR at RM1.05 in mid-July. The stock has been rallying higher ever since the bullish breakout. It may soon test the May 2017 high of RM1.65. To go higher, Dufu must break above this level. We will have to wait and see whether it can do so.


Chart 1: Dufu's weekly chart as at Aug 7, 2018 (Source: ShareInvestor)


Chart 2: Dufu's monthly chart as at Aug 7, 2018 (Source: ShareInvestor)

Conclusion

Based on good financial performance, healthy financial position and fairly attractive valuation, Dufu is a good stock for long-term investment. However the share price may be due for some correction after its recent sharp rally. It will be safer to buy on weakness than to charge in right now.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

HARTA: Strong Earning & Revenue Growth

Result Update

For QE30/6/2018, Harta's net profit rose 7% q-o-q or 30% y-o-y to RM125 million while revenue rose 15% q-o-q or 18% y-o-y to RM706 million. Revenue increased q-o-q driven by higher sales volume which increased by 6.4% and higher average selling prices. PBT rose 8% q-o-q in line with higher sales revenue attained, lower heat cost, chemical cost, upkeep of plant & machinery and improved operational efficiency.


 Table: Harta's last 8 quarterly results


Graph: Harta's last 43 quarterly results

Valuation

Harta (closed at RM6.17 yesterday) is trading at a trailing PER of 44 times (based on last 4 quarters' EPS of 14.16 sen). At this PER, Harta is deemed fully valued. However, its PEG ratio is fairly reasonable at 1.2 times based on EPS CAGR of 37% over the past 2 years.

Technical Outlook

Harta is trapped within a symmetrical triangle. If it can break to the upside of the triangle at the RM6.20, its uptrend will likely continue.


Chart 1: Harta's daily chart as at Aug 7, 2018 (Source: Shareinvestor.com)


Chart 2: Harta's weekly chart as at Aug 7, 2018 (Source: Shareinvestor.com)

Conclusion

Based on improved operating performance, strong leadership in the glove sector and capable management team, Harta is considered a good stock for long-term investment. Its rating is kept at HOLD due to its demanding valuation.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

Friday, August 03, 2018

Unisem: Earnings Rebounded

Results Update

For QE30/6/2018, Unisem's net profit rose 4-fold q-o-q but dropped 26% y-o-y to RM31 million  while revenue rose 7% q-o-q but dropped 6% y-o-y to RM343 million. Revenue & net profit dropped y-o-y primarily due to the depreciation of USD/MYR exchange rates as compared to the prevailing rates a year ago. The decline in net profits for the current quarter and financial period to date was further impacted by the lower profit margins arising from change in product mix. PBT rose q-o-q mainly due to foreign exchange gain of RM10.02 million as opposed to the foreign exchange loss of RM9.95 million previously as well as improvement in sales volume.


Table: Unisem's last 8 quarterly results


Graph: Unisem's last 55 quarterly results

Valuation

Unisem (closed at RM2.59 yesterday) is now trading at a PE of 17 times (based on last 4 quarters' EPS of 14.9 sen). At this PER, Unisem is deemed fully valued. It has a decent dividend yield of 3.9% fro those who wants to hold it for longer term.

Technical Outlook

Unisem tested its long-term uptrend line, SS at RM1.80 in May, and rebounded.


Chart 1: Unisem's monthly chart as at Aug 2, 2018 (Source: Shareinvestor.com)

However Unisem may not have broken above its downtrend since it peaked in August last year.


Chart 2: Unisem's weekly chart as at Aug 2, 2018 (Source: Shareinvestor.com)

Conclusion

Despite the improvement in its financial performance, Unisem's near term outlook is still uncertain due to negative technical outlook and fairly demanding valuation. I think one should take profit (if any) if Unisem reached the RM2.70 mark. 

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.

Thursday, August 02, 2018

BPPLAS: An Attractive Packaging Stock

Background

BP Plastics Holding Bhd ("BPPLAS") is a Polyethylene (PE) Film manufacturer, supplying Cast Stretch and Blown Shrink films, and other PE packaging films and bags. It exports almost 80% of its products mainly to the Asian, Middle East and European region countries. 

BPPLAS has 2 manufacturing locations within the Sri Gading Industrial Estate in Batu Pahat, Joho. These factories have a total built-up area of 295,000 square feet and a production capacity of 6,500 metric tons per month.

Recent Financial Results

BPPLAS has just announced its result for QE30/6/2018. Its net profit rose 3% q-o-q or 192% y-o-y to RM4.75 million while revenue was mixed- down 3% q-o-q but up 12% y-o-y to RM82.6 million. Revenue dropped q-o-q due to more public holidays.

PBT dropped 10% q-o-q mainly due to lower production output arising from more public holidays. Net profit rose 3% q-o-q mainly due to deferred tax adjustment.

Table: BPPLAS's last 8 quarterly P&L

Graph 1: BPPLAS's last 19 quarters' P&L

Historical Financial Performance

BPPLAS's revenue has been rising steadily over the past 7 years. Profits jumped in FY2015 & FY2016 due to favorable forex regime. This benefit has dissipated as our RM rebounded in 2017. However, RM has weakened somewhat lately and this may help to boost the bottom-line for BPPLAS.


Graph 2: BPPLAS's last 11 years' P&L

Financial Position

As at 30/6/2018, BPPLAS's financial position is deemed healthy with current ratio and gearing ratio at 6 times and 0.2 times. Cash in hand amounted to RM36 million or RM0.19 per share.

Valuation

BPPLAS (closed at RM1.00 yesterday) is now trading at a PER of 11 times (based on last 4 quarters' EPS of 9.1 sen). If the cash in hand is deducted from the share price, then BPPLAS's PER will be lowered to 9 times. BPPAS also paid a decent dividend totaling 4 sen last 4 quarters- giving it a dividend yield of 4%. Overall, BPPLAS is deemed fairly attractive.

Technical Analysis

BPPLAS has tested and rebounded off its long-term uptrend line, SS at RM0.85 in April. It is still in an intermediate downtrend.


Chart 1: BPPLAS's monthly chart as at Aug 1, 2018(Source: Shareinvestor.com)  


Chart 2: BPPLAS's mweekly chart as at Aug 1, 2018(Source: Shareinvestor.com)  

Conclusion

Based on good financial performance & position and relatively attractive valuation, BPPLAS could be a good stock for medium-term investment. However its upside potential depends on whether it can break above the intermediate downtrend. If the share price can go above RM1.10, the stock may begin its next upleg.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in 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. As investor, you should fully research any security before making an investment decision.