Thursday, 27 November 2014

Nicorp - A Tale of 3

Nicorp had finally saw an even solid development with the emergence of Ar. Hud bin Abu Bakar as the executive director of Nicorp.


So who is Hud Abu Bakar actually?


Nicorp - Foraging into Properties?

Ar. Hud Bin Abu Bakar is one of the core principal for the well known architecture firm - RSP Group. A UC Berkeley graduate with Master of Architecture in 1988, Hud Abu Bakar had been putting in different taste of designs and creativity into the masterpieces and land marks in Kuala Lumpur.

Under his belt, he had proven his abilities through spectacular landmarks like Felda Tower, Miti HQ, Menara BIMB, Matrade Center, Paradigm Mall, KL Hilton, Le Meridian Hotel, Great Eastern Mall, Platinum Park KLCC and many other top notch development that had been undertaken by reputable developer.

His work recognition had earned him distinguish awards such as FIABCI award, Asia Pacific Property Awards, PAM Award and The Edge Dream Home Award.


With his current appointment as the Executive Director of Nicorp, bringing his expertise of architecture and designs with him, Nicorp will be marking for a remarkable come back. After a series of rife speculation on Nicorp which might possibly run into the oil and gas sector, the emergence of Hud Abu Bakar had definitely turn the game around and this time around, Nicorp will have a higher chance of foraying into the property market.


In the big property market with a lot of different players, a strong and above the par position will definitely put you ahead of any other competitor. While Tan Sri Liew Kee Sin will be always regarded as the life and heartbeat of SPSetia back then, his departure from SPSetia into EcoWorld had definitely left SPSetia as a company without the kind of vision that it used to have for a moment.

Hud Abu Bakar had been spending 24 years putting up stylish end into his artwork for big developers and government, and this could be a good time for Hud Abu Bakar to come out with another masterpiece, however, this time should be selling under his own flagship should Nicorp had become the intended vehicle for Hud Abu Bakar to take off his plans.

As one of the top notch architect in Malaysia, Hud Abu Bakar is highly sought after because of his inspirational and creative designs which had been never failed to deliver.

Now with the latest appointment as the executive director of Nicorp, Nicorp vague direction had just becoming clearer after a series of top management reshuffling. With a team that comprises of Dato Siaw Swee Hin, Dato Abdel Aziz and Hud Abu Bakar in the executive position in Nicorp, what will Nicorp become in the coming days had just became more and more interesting, while the current stakes are high that Nicorp might foray into the property development.


Looking at the development that had been happening in Nicorp, no doubt that Nicorp future development will be an interesting with big and bigger names appearing in the management level of Nicorp. At the level of RM 0.12, Nicorp will be a good price to lock into as the same price of private placement exercise that was placed out 3 months ago, while most of the accumulation from Dato Siaw and Dato Abdel Aziz had also been at the range of RM 0.115 to RM 0.125.

Deciding whether to buy a ticket for a Nicorp mega show down? You decide.

Bone's short term TP : RM 0.25 (Maintained)

Cheers and have a nice day.

Regards,
Bone

Tuesday, 25 November 2014

Nicorp - Unveiling The Truth

Naim Indah Corporation Berhad (Nicorp - 4464) had finally started to unveil more solid corporate development in the public scene.


To recap, Nicorp had been slated to see a series of corporate exercise to restructure the company. After the fiasco from Raymond Chan in Nicorp, the company had finally seen a more solid direction under the lead of Dato Siaw Swee Hin now.

Dato Siaw Swee Hin had earlier buyout partial of the stakes from Raymond Chan on his disposal, while another small portion had been taken up by Quantum Discovery Sdn Bhd, which was then owned by Datin Khoo Lay Wah.

The latest development on 11th November 2014 had saw Dato Siaw Swee Hin, along with his brother, Siaw Sween Woon, taking over Quantum Discovery Sdn Bhd after buying out from Datin Khoo Lay Wah and her partners.


The buy out will see Dato Siaw having a direct stake of 39,172,600 shares and indirect stake of 67,847,976 shares from Quantum Discovery Sdn Bhd, totaling almost 14% in a short period of time.

While doing so, Siaw Swee Woon had also started to accumulate shares from the open market as to add up his interest from the indirect stakes that he owned at Quantum Discovery Sdn Bhd.


 The recent most encouraging moves in Nicorp had been the appointment of Dato Siaw Swee Hin as the Managing Director of Nicorp, and the complete exiting of Datuk Raymond Chan in Nicorp, paving way for an even solid development.



Let's take a look at the past and current price chart of Nicorp.


In fact, a quick look at Nicorp will suggest that Nicorp had a certain degree of corporate development that had been in the process to materialize back then at May 2013. Nicorp shares had been heavily traded in the month of May 2013, with daily transacted volume reaching more than 160 millions of shares exchanging hands, and touched RM 0.25.

However, due to the delay in the private placement process in which had just went through at RM 0.12 a share, Nicorp is now geared up for a mega change under the new lead of Dato Siaw Swee Hin.

The share price had been trading at a fairly rock bottom price at the range RM 0.12, considering the insider accumulation at the range of RM 0.115 to RM 0.125, and private placement exercise being placed at RM 0.12 as well.

Should Nicorp be able to hit above RM 0.145 with a strong breaking volume, then Nicorp will be heading to challenge the psychological barrier of RM 0.20, then RM 0.25.


I believe Nicorp is a worthwhile mid-long term investment. Despite it's pitiful fundamental outlook at the current scene, notable development and changes had been seen in the top level management and a visible white knight - Dato Siaw Swee Hin, who is a low profile businessman that had establish business in Malaysia, Singapore and Vietnam will be the main core driver in Nicorp.

Nicorp will be a good consideration based on
- Dato Siaw Swee Hin appointment as Managing Director of Nicorp
- Dato Siaw Swee Hin and brother, Siaw Swee Woon buying over Quantum Discovery Sdn Bhd, increasing indirect stakes to 8.78%
- Complete exit of Datuk Raymond Chan in Nicorp
- Executive Chairman, Dato Abdel Aziz's increasing interest in Nicorp and intention to deal with Nicorp shares at closed period.
- Private placement priced at RM 0.12 fully subscribed.
- Insider and director's accumulation being at RM 0.115 to RM 0.125.
- Potential RTO target for Alltrust International Berhad.


Nicorp will be looking good to challenge a short term TP of RM 0.20, while a longer term TP will be able to see Nicorp trading at RM 0.30 to RM 0.50 should there be more solid development.

Bone's short term TP: RM 0.25 (upgrade)

Reference
Nicorp - Throttle Forward

Cheers and have a nice day

Regards
Bone

Wednesday, 19 November 2014

SUCCESS - Lighting the Way Up

While global market had been in an upbeat mode, Malaysia had been trailing behind most of the party after foreign investor view Malaysia outlook as "a lack of catalyst" as foreign funds pared down holdings. However, with the month of November that is full of quarterly reports, would there be something that will be interesting to look out at?

It had came to me on Success Transformer Corp Berhad (SUCCESS - 7207), which is dealing with lighting and transformer will be a good company to be vested in with their bright business prospectus.

Let's have a look at their latest chart

SUCCESS had been in a gradual uptrend. SUCCESS had been consolidating at the range of RM 1.85 to RM 2.00 in a lower volume manner. However, with the tight consolidation focused at the range of RM 1.95, SUCCESS could be pending upon a break above RM 2.00 in the coming days with a strong anticipation on a stronger quarterly performance.


SUCCESS - Lighting the LED way

The latest trend had been going the LED way for cost saving and environmental friendly. Success Transformer Corp Berhad, being the largest LED Lightning manufacturer in Malaysia would be looking to see this trend as a booming prospect for it's business.

LED had been in a strong trend as of lately, and it's widely supported in the European countries as it consumes lesser energy while providing a brighter light, which in turn, reducing green house gases that had been a cause of global warming.

SUCCESS had been seeing steady growth in it's revenue since 2009.




According to the latest Q2 FYE 2014 performance, Success had been seeing a cumulative revenue of RM 189.6 million.


A quick simple calculation will see SUCCESS maintaining their 2014 performance will be seeing a possible revenue around RM 380 million, as EPS can hit a potential 28 to 29 cents. A quick valuation based on PER x10 will easily see SUCCESS being valued at the range of RM 2.80.

Currently, SUCCESS had been aggressively expanding it's network and production to Thailand and Singapore. SUCCESS is currently catering to more than 60 countries and will be looking to see more demand coming in to their door.

Based on the current outlook, SUCCESS will be looking to see a 15% to 20% growth in their revenue for the next 3 years, which could potentially hit up to RM 500 million revenue in FYE 2016.


In my opinion, SUCCESS will be a good fundamental company to be vested in for the long run, with good business prospectus, good management team, and good financial control within the company. A long term outlook will place SUCCESS at RM 3.00.

Bone's short term TP : RM 2.20

Cheers and have a nice day

Regards,
Bone