Monday, 9 October 2017

Malaysia Budget 2018 potential beneficial is here!!!

Knowledge is the key to success - That is a very general saying for motivating students in excelling at their studies. So, what about turning this question into the ever challenging equity market?

What are the keys to success in the equity market ?
Honestly, there is no one single solution for this. As for me, I had to tell you that information and knowledge is one of the vital ingredient, but that is not enough to ensure you success in the equity market. Getting a piece of information is one thing, understanding the piece of information is another thing, but able to foresee how this piece of information can be applied into the market before the majority of the market does is what you need to strive to achieve in order to be successful in the equity market.

Which one do you want to understand more ?
The Red Ferrari or Pink Dressed Model ?
To make this happen, one of the most important things to do is to do a lot of reading. As for me, I read a lot of materials. For a start, I consume the local newspaper and financial dailies for the latest news and event happening both in our own social, political and financial arena. Then, I will also take it extra supplement such as medical journal and magazine, building and architectural design and concepts, IT software and hardware, automobile magazine. You might wonder, what heck use is there to read up automobile magazine have to do with stock market ? Of course, if you are just looking at hot models standing beside the car, or just glancing through the design and looking at how fast this car can go from 0 to 100kmh, that is quite useless. To make that reading more informative, you have to drill down to details such as what are the material used for the body frame, what kind of specification and what kind of sensor used, what kind of light bulb. In fact, the booming electric automobile development is the one behind pumping in the demand for aluminium because of it's lightweight function. And the multiple sensor around the car are fueling stock such as KESM and Gtronic. And the usage of LED is behind the reason for LED maker to gather steam.

Same piece of information, different reading technique, different interpretation.

However, one sad reality - Not many people can do this, because all these kind of reading require a lot of time and effort.

But fret not, because I will be doing all this work for you and sharing to you all for free. And if that is not enough, you can get latest update by liking my facebook page here and get the latest update. Of course, you can also ask me question while I will try my best to answer them - Great deal altogether?

And as for today, I want to bring your attention to the upcoming Budget 2018 and it's potential beneficiaries.

According to online news portal FreeMalaysiaToday, one of the potential beneficial hit list will be focused at the digital economy, automation, robotic development, big data industry and cloud services.


This is one of the reason why IT related companies at boosting upwards in share prices recently.

Let's look at one of the example - Kronologi Asia Berhad, a service provider for online data storage and protection solution.


This share had been rocketing upwards from a lowly 30 cents in the beginning of this year. If you asked me, I would say I had no freaking idea on what sort of hype is happening to this company. If you can see the below result, you can assume that Krono is currently trading at almost PER x 20 based on annualize earning of 5 cents for FYE 2017.


But, if I were to tell you that Kronologi could be one of the recipient to benefit from the Budget 2018 in terms of tax incentives for being involved in Cloud Service, that would make a good sense of why this company had been flying up since this year.

As for me, I am not telling you to get into Krono now, because Krono is already quite hyped up already.

What I am pointing to you is this one overlook stock that had just restructured itself and involve in the big data industry. And this stock is no stranger to you - Media Prima Berhad (Media - 4502).


As you can see, I had previously informed you why Media is a powerful stock ever since it had acquire RevAsia online content marketing unit which comprises of several popular online content marketing sites.

If this doesn't convince you enough to invest into Media, you have to know that the upcoming Budget 2018 is possibly going to give Media a definite game changer as they start their involvement into Digital Economy, Digital Media and Advertising and Big Data Industry.


So what is BIG DATA ?

According to a popular site, the definition of Big Data Analysis is the process of examining large and varied data sets -- i.e., big data -- to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful information that can help organizations make more-informed business decisions.

20 years ago, nobody will know what kind of news you like to read, nobody will know what time you like to read newspaper, nobody will know whether you read the front page big news or end page sport news first, nobody will know you will show interest in which advertisement, nobody will know how you react towards a particular of news.

Thanks to the evolving digital technology, today, everything can be tracked and all these data can be processed into a meaningful set of data that is valuable to business owner to make accurate decision based on consumer patterns.


So how does this work?

Let me give you an example. So now Astro want to know what is the Malaysia public taste for Hollywood movie, in order to get a response, they engage popular online content marketing site, Says.com for a poll to get reader responses.


As you can see, this 1 single post can garner 62k of reads and 2.3k of shares. Most importantly, it got 15.5k of votes from the public. Of course, for Says.com to write this post, Astro might probably have to pay them like RM 20k to RM 30k, or even more, I don't know. But I can tell you that it is not cheap.

But compared to the conventional style, it could even cost more, and much slower. If you had ever worked as interviewer in research company such as Acorn, then you will know how "mafan" it is to gather 1 response, not to mention 15.5k response from all over the places in Malaysia. For 15.5k response, it would had probably cost Astro a whopping RM 1.55 million if 1 response is charged at RM 100.

So do the math, pay RM 1.55 million or RM 30k ?

Of course, what I am showing you now is just the very surface. There are deeper analysis with the use of Google Analytic that can show you reader came from which region, what keyword they type, how long they spend in the post and etc.

I know all these are very confusing and complicated to you right now.

In order not to complicate you further, I want to place a conclusion that Media is having big time to benefit from the coming Budget 2018. As you know, I had been advocating for Media when it is just 72 cents, and I had to tell you that this company is full of potential from A to Z, and that is one critical reason why Morgan Stanley had been buying in in bulk, non stop, everyday action!!!

In no time, Media will be at RM 1.00 with or without you. But since you are reading this post until the end, I have to tell you that if you had missed the previous one, it is not too late now. RM 1.00 is a no brainer target. With new revenue from online division, lesser losses from physical print division, tax incentive from government - How to prevent Media from blowing up ??? 

Don't think too long, better act fast now !!! And like my Facebook page here as well.

Wednesday, 4 October 2017

Good Models will enrich your eyes, Good Business Models will enrich your wealth

Everyone know what is a model, but not everyone know what is a business model.

Today I am not going to tell you about models, but I would want to share with you some new knowledge about understanding a business, and how a business function. In short, it is the BUSINESS MODEL that is the core mechanism of the company.

In order for you to understand what is BUSINESS MODEL all about, I can refer you to this Youtube video that can give you a very brief knowledge on BUSINESS MODEL.


The most important part of the business model is the Value Proposition. This is where your company's product deliver the value in order to fill up the demand gap in the market. If your company is offering something that none other market competitor are able to offer, that is where the value stand out.

Every business looking for profit must have a viable business model, and not only that, the business model must keep on changing and adding in value in order to keep up with the evolving market. As you see, Kodak used to dominate the retailer segment in camera when everything is still using film, however, when digital camera become more advance and cheaper, Canon and Samsung had overtaken Kodak into this segment as retailer shift to digital camera for more shots without wasting films. Moreover, the ability of a digital image to be transferred from device to another device is easier, especially when the generation nowadays likes to share their photo in social media.

Whether you agree or not, a lot of things in our life are going digital. Unless you are planning to spend the rest of your lives in cave, you have to either embrace digital or face extinction - Brutal Reality.

Now that is Brutal Reality

So for the case of Sasbadi, what is the brutal reality ???

According to the Malaysian Education Blue Print 2013 - 2025, one of the segment that the government will enhance is to leverage ICT to scale up quality learning across Malaysia.

As you can see from this excerpt taken out from the executive summary, this phase involve in providing internet access and virtual learning environment via 1BestariNet for all 10,000 schools.

Aside from that, this phase will also augment online content to share best practices starting with a video library of the best teachers delivering lessons in Science, Mathematics, Bahasa Malaysia and English language.

It also focuses in the use of ICT for distance and self paced learning to expand access to high quality teaching regardless of location or student skill level.

And to sum it all to you, I have to tell you that all these 3 important points in the Malaysia Education Blue Print will find a suitable solution from Sasbadi.

Why ?

Because Sasbadi is currently the only pioneering company that is involved in providing online e-learning platform through it's i-LearnAce online web education.

The i-LearnAce platform will not only cater for revision exercise, there are also video lesson for student to do referenced as well. What is more, Sasbadi is one of the contracted publisher for the printing of text book for schools throughout Malaysia.

And to answer you that, this could be one of the very core reason why EPF is buying and loading up Sasbadi for the future!!! Imagine how much for proprietary rights and provision of service that the government need to pay to Sasbadi when this is implemented at a massive scale ? It might not happen now, but what about the next 5 years, 10 years ?

Albeit having spent RM 6 billion, it is not enough. Of course, if Malaysia Government start to spend RM 2 to 3 billion for Sasbadi to develop, implement and execute, why not ? 

Now coming back to the Business Model, I would like to share with you my simple thoughts of the Business Model of Sasbadi i-Learn Ace. Okay, hear me, I am refering to i-Learn Ace product only.


So what is so special in this i-Learn Ace business model ?

This capability of i-Learn Ace is that this platform is able to transfer the equivalent amount of knowledge that can be learned from the physical books - through the thin air!!! Amazing right ?

Alright, the thin air I am referring to is through the digital media. As digitalized content do not have physical appearance, hence this will eliminate all the printing cost, logistic cost, warehouse holding cost, inventory defects and damage cost, inventory theft or lost cost and etc. And I had to tell you that all this cost when added up together is a hell lots of money involved.

All the user need to access such content is
1. Internet
2. A smart device (Computer, Laptop, pads, smart phones)
3. And of course, ticket fees to access the content

Let me give you an example by comparing iLearnAce potential profit and traditional book print profit.

Let's say we are talking about a pool of 100,000 students every year.
For traditional method, the publisher need to print 100,000 books to cater for 100,000 students every year. So let's assume the total all in cost is RM 5 per book, and profit margin of RM 3, total RM 8 per book in average. So for this, the company earn RM 300,000 each year. This is perfect scenario, assume petrol no hike, electric no hike, books not printed wrongly and etc.

Now, let's put it to iLearnAce business model for 100,000 students every year.
For iLearnAce, the cost will be a 1 time development cost for the whole system. Let's assume the 1 time development cost is RM 300,000. And since there are no physical form of delivery, hence a lot of cost are saved. Now, let's assume 1 student need to pay RM 5 for the access to the content of the system, so 100,000 student will be paying RM 500,000 each year.

For the 1st year comparison, traditional method might be seeing a higher profit or RM 300,000 while the iLearnAce will derive RM 200,000 only. But for the next subsequent year, iLearnAce will be deriving RM 500,000 as there will not be a need to develop the content again. But, the traditional print method might be exposed to higher cost due to raw material and logistic cost which can impair the profit margin.

According to my knowledge, iLearnAce will only need approximate RM 350 for a 1 year access to 6 subject, which is like RM 1 a day. It is only a matter of time that once iLearnAce gain enough publicity, then the system will be able to benefit from the massive of scale usage.

For now, I had shown you the massive potential of Sasbadi, and also the reason why EPF is buying into Sasbadi without in huge chunks.

In conclusion, the Brutal Reality will strike you with regret in the next 2 years if you did not invest in Sasbadi now. Yea, no joke, just like how I had mentioned about GCB at RM 1 when cocoa price hit rock bottom!! I had teach you how a lower material price will bring benefit to GCB here and now GCB is RM 1.70. Now I am telling you how this iLearnAce business model will be bringing in big chunk of $$ to Sasbadi now!! Is up to you and in your hands now.

Tuesday, 3 October 2017

EPF is not letting this company away from it's portfolio, which is why you shouldn't either!

Equity market had been riding tough and rough for the past few weeks. The weaker than expected financial result in most of the companies financial reporting announced in the 3rd quarter this year had took investor to reassess their investment portfolio. When this happen, institutional fund will start to do the buy and sell, and of course, this will also represent a good time period to do some good accumulation.

If you had been following me for the past weeks, you would notice that 1 of my notable finding on Media which highlight the potential possibilities of why Morgan Stanley had been buying into Media continuously without fail lately.

As for today, I would like to show you this 1 stock that had been accumulation by our very own EPF. For a stock to be qualified into EPF list of purchase, the stock must had a track record, making profits, paying dividends and potentially is a company that provide services that are crucial for the country.

You might had probably used the products of this company during your school days - Text Books and Exercise Books. For this case, I would want to introduce Sabadi Holdings Berhad (Sasbadi - 5252) into your radar.

So what is so interesting that is happening in Sasbadi that resulted in EPF buying into the company shares ?


EPF had been buying and selling Sasbadi shares previously. However, according to official records, EPF had started to become the net purchaser of Sasbadi shares in the open market starting this year. As you can see, EPF stake in Sasbadi during January is almost 6%.


However, rolling on 9 months later, EPF had increased it's stake to a total of 9.77% of Sasbadi shares now, with the latest acquisition being done on 25th September 2017 with 300,000 units at the price range of RM 0.88.

If you are a thorough investor, it would had strike your mind that - Why is EPF accumulating on the shares of Sasbadi despite some suppressed earning as of lately? This is a very valid question for every investor, and knowing the most accurate answer is important because it is the very key towards the success of the investment.

For commoner, Sasbadi is known for printing text books, exercise books and some other general titles for adult that had left the "academic" process. Other than printing books and selling books, most do not know what else is Sasbadi is involved in - Am I right to say so ?

One of the major move that the company had made in 2016 is that Sasbadi is actually diversifying into network marketing in order to derive more revenue from a new business sector. As reported in The Edge, Sasbadi sees a good prospect in the network marketing business and had obtained a network marketing license in April 2016 in order to conduct that business. I had to tell you that Sasbadi is not going to sell you health food like what other network marketing companies do,  but they are going to compliment it's existing business in education by providing an online learning platform that is able to cater to students from as young as 10 years (Standard 4) old to middle school student (Form 5)

As I know some people might be triggered by the word MLM, I had to tell you that not all MLM are scams. Some MLM are really legit, conduct proper business dealing and are even listed companies in the KLSE. And I had to point out to you that MLM companies in Malaysia are not too bad either, because some are really doing good, and some really had their very good season when the time comes.

If you do not know, Hai-O Enterprise Berhad is actually a traditional herb company that also have it's network marketing arm beside it's retail outlet. As you can see, Hai-O share price had been increasing steadily for the past 2 years, where revenue from the network marketing contributes a lot to the bottom line of the company growth.


Another MLM company - Zhulian. Based in Penang, this company involves in health food, beauty, home improvement products and jewellery.


Coming back to Sasbadi. The question here to ask is - What is so special about the network marketing product and services that Sasbadi is offering ? Will Sasbadi network marketing product be able to replicate the success like Hai-O, where share price rocket without fail for 2 years ?

If you are keen to know, then you will have to read below and click to the links and study further.


The product is called i Learn Ace. Basically, this product is an online learning platform that have a lot of exercises and revision material that can cater to students through online access using computer, laptop or smart phone devices.


The platform comprises of most of the important syllabus of the main stream subjects.
 
There are a lot of function in this iLearnAce, such as mind mapping, video lesson, dictionary and even competition board. Of course, if you want to give it a try, then you can contact Mindtech Education for more information.

As for me, I want you to know that Sasbadi will be a great emerging company to be invested into because education never dies, despite of economic uncertainties or downturn, education will have to continue and resemble an important process for every single children to go through.

Today, I had highlighted to you Sasbadi and it's latest product offering. Following on, I will share to you my insight on One of the reason why EPF is buying into Sasbadi and will decrypt the latest business model of Sasbadi for you to understand how explosive can this new product iLearnAce contribute into the bottom line of the company in the future.

If you are looking for a long term investment with future growth and dividend, look no further and Sasbadi will be your correct choice. I am confidently pointing to you to invest into this stock, because in my next article, all beans will be spilled out, and I am afraid that you might need to pay a premium for that.