Friday, 27 February 2015

Symphony - Simply Symphonic

Symphony House Berhad is known for its business outsourcing process, share registration solutions and corporate secretarial solutions.

Back then, Symphony shares that is listed in the KLSE had not seen any interest from the public due to it's normal usual day to day business operation which will be unlikely to see any surprise that would be rewarding for the shareholder. In fact, Symphony had been running between the red and black line. However, everything in Symphony took a huge change when CIMB arranged Ranhill Energy and Resources Berhad to be listed in the KLSE through a RTO process.

Let's have a look at the latest price chart of Symphony.

Symphony House Berhad (Symphny -0016) had been trading at the range of 12 to 13 cents before the news of RTO came into picture. Prior to that, Symphony saw it's saw leaped to a high of RM 0.315 in April 2014, where a few occasion had saw more than 150 million of shares change hand. However, the share price had took a consolidation effect which had saw a good consolidation price at the range of RM 0.22.

Symphony got shake up and broke down lower when the global equity market took a plunge over the worries of a sharp plunge in the oil price from October to December 2014, putting Symphony trading at an incredible attractive level at the range of RM 0.15 now.

As time draw closer towards the completion of the RTO process, we will expect to see a build up in the volume, and Symphony will be easily challenging back into the previous support line at RM 0.22, while a higher resistant might be seen at RM 0.30.

Symphony - Transforming to Ranhill

Symphony had been disposing off it's business assets prior to the arrangement for the Ranhill Energy and Resources Berhad RTO process. To date, Symphony had sold Symphony BPO Solutions Sdn Bhd, Xen Solutions Sdn Bhd, Symphony Xen Solutions Pte Ltd and BCS Information System Pte Ltd. Symphony. Currently, Symphony is sitting on a cash pile of RM 40 million, with zero debts on it's belt, translated to a net cash of RM 40million. Symphony last business asset - Symphony HRS, which is looking to be sold for around RM 25 million will possibly put Symphony with a total cash pile of RM 65 million, which could be easily be translated into a cash of 9.8 cents per share

Ranhill Energy and Resources Berhad (RERB) which will be looking to inject approximately RM 800 million worth of water and power asset into Symphony under the exercise will provide the current minority shareholder with an opportunity to benefit from businesses with a more robust prospect. Currently, RERB asset will see it's valuable water concession in Johor and 2 power plant - Powertron which is operating in a full operating capacity. RERB also had exposure in Thailand and China in it's water processing arm. Currently, it's China water processing asset is delivering 270 million liters a day (MLD), and will be looking to boost it's figure to 1000 MLD in the end of 2015.

Under the transformation process, Symphony shares of par value RM 0.10 will be merge in 10 to 1 share, hence par value will become RM 1.00, however, outstanding shares will be shrink into 66 million shares. We believe that there will be more corporate exercise that will increase the liquidity of the shares in order to prepare for a RM 800 million asset injection.

The new RERB could be potentially seeing approximately 533.4 million shares at RM 1.50 to reflect a market capitalization of RM 800 million for the value of it's assets injection.

With this inline, there is a possibility of a special dividend from the cash pile of RM 65million in order to avoid the cash dilution to the new shareholder upon their placement. Currently, the cash in hand is translating towards 6 cents a share. (approx RM 40m / 660m shares), which is 40% of the current share price of RM 0.15. Should Symphony HRS be sold, the cash might rise to RM 65 million, which will translate to 65% of the share price at RM 0.15 is net cash in hand.

Symphony will be a very interesting share to be monitor in the coming days due to
- RTO process to Ranhill Energy & Resources Berhad
- Net cash position of RM 40m, and a possibly RM 65million after the sale of Symphony HRS
- Possible special dividend payout to shareholder
- Current cash value being 40% of the share price at RM 0.15
- Huge accumulation at the range of RM 0.20 and above

Transform along? You decide

Bone's short term TP: RM 0.22

Cheers and have a nice day


Wednesday, 25 February 2015

February Focus - Dataprep - The Wild Card

Dataprep Holdings Berhad is a Malaysian based ICT company that had been involving in the trading of IT related products, payment solutions, Enterprise Content Management System and also consultation and deployment on data warehouse and cloud computing infrastructure and services.

Back then, Dataprep had limbed into financial difficulties, however, the company was being rescued when Encik Ahmad Rizan took over the helm on 2011 and padded the company with more than RM 100 million in orderbook from government linked entities such as EPF, Tenaga Nasional, Telekom Malaysia and Celcom Axiata Berhad.

While those contracts are just good enough to keep Dataprep alive, major shareholder, Datuk Lim Chee Wah, which is the youngest son of the late Lim Goh Tong definitely have a high fuel package instill for Dataprep.

Let's have a quick glance at Dataprep recent share price performance.

Dataprep Holdings Berhad (Dataprp - 8338) had been consolidating at the support price of the previous trading range of RM 0.245 to RM 0.30 before the equity shake up that is caused by the oil markets. On the 21st August 2014, Dataprep had saw more than 30 million of shares traded, with an almost full solid white candle to support the fact on the heavy accumulation behind the scene.

Recent filings had also shown that Director Muhammad Fauzi Bin Abd Ghani had previously accumulated on Dataprep at the range of RM 0.245 to RM 0.255.

With the current price at RM 0.215, Dataprep will be looking to inch back to it's previous consolidation region at RM 0.245, while a greater volume will be able to charge Dataprep forward towards testing RM 0.30.

Dataprep - Double Wild Card

Dataprep had been appointed as the main ICT and project delivery partner for the mega USD 6 billion (RM 21.7 billion) major international tourism destination in China - Secret Garden Resort which is in the city of Chong Li, Province of Hubei, China. The project is also the brainchild of major shareholder Datuk Lim Chee Wah, who is the principal shareholder for Dataprep and project owner, VXL group.

Dataprep, which will be monitoring all ICT related project, which include hardware to software will be seeing more than 20 projects in phases to be implemented from stage to stage for a period of 10 to 12 years. With the huge project across the line, Dataprep will be appointing vendors to implement the work, and will be taking 6% from the total project value. IT had been estimated that the total value allocated for the ICT related works will be looking to worth around RM 800 million to RM 900 million, putting a good 54 million net income in the pipeline.

The Genting based Secret Garden Resort had already started its operation with 5 star Genting Grand Hotel. With the cutting edge facilities and breathtaking scenery, Secret Garden Resort will be targeting to host the Winter Olympic in 2022.

Dataprep, being one of the project delivery partner in the building and creation of Secret Garden Resort will be looking to see steady flow of recurring income from all the ICT related matters in the resort.

While good thing never comes alone, the second wild card that is in Dataprep hand will be the reformation in card payment system in Malaysia.

With Malaysia heading towards a cashless society, Bank Negara undertook significant reformation in the card payment industry which will remodel the way Malaysian make payments. Amongst the framework including
- Increasing card terminal to 800,000 by 2020 from the current 200,000, in which a portion of them to be wireless and contactless.
- Contactless terminal consist of 30% of all terminals.
- All debit card to be recarded with contactless enabled.
- All card transaction to be using PIN based by 2017.

Bank Negara will be targeting to see an increase of 96,000 terminals a year and will also foresee to see the debit card usage to increase by 10 fold by year 2020.

Based on the target of 800,000 terminal, at the average terminal rental of RM 100 per month will be equivalent to a big sum of RM 80 million of terminal rental's revenue in the industry. While GHLSYS had been the primarily known company in providing terminal, the overlooked Dataprep will not be shy of putting a fierce front in competing with the others competitor for this big chunk of cake that is prepared for them.

While the downstream payment system will see an increase in Terminal, close sources had tipped off the involvement of Dataprep in the upstream system upgrade in banks and financial institution to improvise the system to replace the current signature based to the PIN based verification during the transaction.

Dataprep will be a possible dark horse in 2015, and could be a raging bull in 2016 to 2017. At the current price of RM 0.215, Dataprep will be interesting to be vested in based on:
- Involvement as Core ICT and Project Delivery Partner for Secret Garden Resort in China
- Project implementation cost looking to be value at approx RM 800 - 900 million, in which Dataprep will be netting 6% from the total cost.
- Steady income flow from Secret Garden Resort from maintenance and upgrading contract related to ICT.
- Bank Negara reformation in Payment System, encouraging more terminal usage.
- Terminal rental business revenue worth RM 80 million a month by 2020.
- Dataprep involvement in the security upgrade of the payment system through 55% owned Solsis (M) Sdn Bhd, a MOF registered Bumiputera IT Service provider, partnering NSFOCUS from China.

On a long term outlook, Dataprep could be easily looking to trade towards RM 0.50 once all the puzzle pieces assemble together.

Throw in the wild card? You decide

Bone's short term TP: RM 0.30

Cheers and have a nice day


Tuesday, 24 February 2015

Ancom - Brewing Out RedBerry

Ancom Berhad is the holding company that had a diversified business ranging from petrochemical products, logistics and media & advertisement sector. It's listed subsidiaries includes Ancom Logistic Berhad and Nylex (Malaysia) Berhad.

Ancom Berhad had been embroiled with in the hot screen back then at the end of 2013 and beginning of 2014, which had news circulating that the company had sold it's "The Malaysian Reserve" financial daily to billionaire Syed Mokhtar after the division had been chalking up huge cost into the company financial.

However, the sale of "The Malaysian Reserve" had yet to come to public even though close sources confirmed on the deal, putting a big question mark on the next possible corporate moves in the coming days.

Let's have a quick look at the chart of Ancom

Ancom Berhad had been trading at the range of RM 0.55 to RM 0.70 before the weakened global outlook due to weaker oil prices sent almost all equity down the drain. While a number of companies had saw their prices bounce back into the previous trading zone, Ancom had yet to see such an action for the time being.

Ancom had been heavily accumulated during the period of May to July 2014. Solid accumulation are sighted with insider buying averaging at the range of RM 0.55, of which most of it being open market purchases from Dato Siew Ka Wei, the Managing Director of the company.

A quick resistant outlook will see Ancom testing RM 0.55, while breaking above that will put Ancom back into the previous trading range between RM 0.55 to RM 0.70.

Ancom - Brewing out the Berry

The recent financial result had saw Ancom inching back to the black. Although the group had recorded a lower revenue, the profit margin had increase due to lower operating expenses, which could be highly due to the disposal of "The Malaysian Reserve" division to be bankrolled by Syed Mokhtar. The latest FYE 2014 for Ancom's media division saw a segmental profit of RM 1.3 million compared to a segmental loss of RM 25.4m in FYE 2013.

It had been a known move that Dato Siew had roped in Datuk Wong Sai Wan to be in charge of Redberry Director of Special Projects, which will be spearheading their new online news portal - The Malay Mail.

While The Malay Mail is not directly linked with Ancom, it's connection to the group is through the common shareholder of Dato Siew Ka Wei and non independent director Tan Sri Al Amin Abdul Majid, both having indirect stakes of 46.79% in the Malay Mail. Currently, The Malay Mail is running on a deficit with net weighing around RM 10million, however, will be looking to turn into the black during FYE 2015.

According to insider sources which are familiar with all the events and happening brewing in Ancom, Ancom had been looking to list their media arm Redberry Sdn Bhd into the market, and inject The Malay Mail into RedBerry as well. However, Redberry Sdn Bhd most prized asset is from the 75% owned Meru Utama Sdn Bhd, which had concession rights to advertising mediums in the KLIA and KLIA , in which the latest registered profit propping up to RM 5.68 million.

Insider prediction is that Ancom will probably privatized Meru Utama away from Redberry Sdn Bhd and inject The Malay Mail so to prepare their media arm for a public listing. Meru Utama, a solid cash cow for Ancom, could be looking to worth more than RM 120million due to it's exclusive rights in the KLIA and KLIA2 airports.

Ancom is currently running in tight timeline, and the urgency to list their media arm into the public to leverage on the public for the business is a vital move for Dato Siew Ka Wei and Ancom.

Ancom will be an interesting outlook due to
- Huge corporate action in the coming days
- Trading at support level of RM 0.45 range, with insider buying range at RM 0.55 and above
- Trading at 35% of the NTA of RM 1.30
- Possible sale of Meru Utama Sdn Bhd which is worth more than RM 120 million
- Unpublicized sale of the Malaysian Reserve financial daily
- 47% shareholding in Ancom Logistic Berhad, which is sitting on net cash of RM 29 million.
- Possible listing of Media Arm - Redberry Sdn Bhd

Boil the Redberry Soup? You decide

Bone's short term TP : RM 0.60

Cheers and have a nice day


Friday, 20 February 2015

Wishing You a Happy Chinese New Year

Wishing you a Happy Chinese New Year 2015.

Good health and good wealth

Wednesday, 11 February 2015

Sycal - Cycling North

Sycal Ventures Berhad (9717), previously known as Cygal Berhad, is a low profile construction based company. While the company had it's property arm, most of the revenue and income is derived from the construction arm of the group.

Sycal Ventures Berhad had recently caught attention of some investor after putting up a several consistent quarterly performance that had been growing. For the past 4 quarter, the quarterly result had been better in terms of higher revenue and EPS than their previous corresponding quarterly result.

Where could Sycal be heading in the coming days, especially when the coming final quarter for FYE 2014 that will be going to announce soon around the corner. Let's have a quick look at the price movement of Sycal.

Based on the price chart, Sycal had been trying to pitch forward during the middle of September as a convincing strong volume is head for a test at RM 0.50. However, the attempt had fall short after the global equity market had weakened. Sycal had spent most of it's time consolidating at RM 0.40.

Should Sycal be able to break above RM 0.40 in a convincing manner in the coming days, Sycal will form a new trading range between RM 0.40 and RM 0.48.

Sycal - Cashing in

Sycal's focus had always been in the construction sector. While Sycal local construction base might be at Perak, it's services might not fall short in Kuala Lumpur as well. Sycal had been getting construction works from Cygal Development Sdn Bhd, which is one of the core client that had common owner. The most recent project is being the Pullman Hotel in Bangsar that was being contracted to Cygal Development Sdn Bhd and constructed by Sycal's construction arm.

To date, Cygal Development Sdn Bhd had owned approx RM 69 million, which will see periodic repayment starting from year 2014 to 2016, averaging RM 23 million a year into the cash flow of Sycal Venture Berhad. The huge cash coming in might rings an opportunity for Sycal to finally reward the patient shareholder with a possible dividend.

Cygal Development Sdn Bhd had a 12 year contract with Pullman Hotel until 2022, which puts up opportunity for Sycal for more jobs in the coming days when Pullman Hotel starts to expand for their next spot. Currently, there are 3 Pullman Hotel in Kuching, Bangsar KL and Putrajaya. There are possible outlook for Pullman to expand to Johor and Penang in the coming days.

Based on FYE 2013 result, Sycal had managed to put up 5.37 cents in EPS with a NTA at 0.59. For the year 2014, the cumulative 3 quarters EPS is standing at 4.56 cents, with huge growing revenue and net profit. NTA inched up higher towards RM 0.64 per share.

Sycal performance had been very consistent since 2013. Should Sycal start to give out dividend, it will definitely attract more investor towards this company in the coming days.

According to sources familiar with the company, Sycal's book order is currently sitting on more than RM 600m of jobs, a work good enough to keep the company busy for the next 2 years.

With the growing trend in Sycal, the projected EPS for FYE 2014 will be looking at a possible 6 cents, trading at a conservative PER x8 will value the company at RM 0.48.

Sycal will be an interesting stock in the coming days based on :
- Anticipated better result in FYE 2014, with EPS projection at 6 cents, valuing the shares at RM 0.48 based on PER x8
- Indirect business opportunity with Pullman Hotel through Cygal Development Sdn Bhd
- Cygal Development Sdn Bhd repayment of RM 69m from 2014 to 2016, averaging RM 23million a year, boosting company cash position, and also putting up chances for a dividend for shareholder
- Huge order book amounting more than RM 600m in hand.

Cycling along?
Bone's short term TP: RM 0.45

Cheers and have a nice day


Tuesday, 10 February 2015

AWC - Bursting Forward

AWC Berhad (7579) is an investment holding company that see it's subsidiaries involves in facilities management services, engineering and environment sectors.

Recently, AWC Berhad had came to a small spot light when substantial shareholder, Md Shah Bin Abu Hasan had been busy upping his stake from time to time in the open market. With Dato Ahmad Kabeer Bin Mohamed Nagoor as the new driver for the company since 2013 along with 35.26% shareholding in the company, what will be brewing in AWC Berhad?

Let's have a quick look at the latest price chart of AWC.

AWC had been seen trading at the trading range of RM 0.35 prior before the volatile shake off in the equity market that had sent most of the stock down under. However, as for AWC, it had not been far too bad as it lingers at the range of RM 0.30, which is still within the trading range of between RM 0.30 and RM 0.37.

Technically outlook had saw AWC seeing a good consolidation at the range of RM 0.30 as volume starts to dry up. AWC will be looking set to pick up in momentum soon. Technically looking, AWC can be looking set to retest RM 0.37 in the coming days, before trying above RM 0.40.

AWC - Great Start Ahead

AWC core income is mostly derived from the facilities management services which is mainly from the government concessions on the maintenance of the federal government buildings. Previously, AWC had a 9 year concession to provide management and maintenance services of the federal government building in the southern zone and Sarawak.

The total budget allocated for this segment will see more than RM 6 million monthly to provide maintenance of 60 federal complex buildings nationwide. AWC is handling 23 building complexes in Sarawak alone, which includes the Bintulu Port Authority building.

Other leading corporation and clients of AWC includes OCBC Bank, Telekom Malaysia, Bangunan KWSP, KLCC, KL Tower and PPB Harta Bina. AWC services also extends to the public sector such as Ministry of Works, Public Works Department, Prime Minister's Office, and Bank Negara Malaysia.

AWC had ended the FYE 2014 in a better EPS at 3.18 cents, and moving forward to 1Q FYE 2015, AWC continued to display strength with a 20% increase in revenue and 593% increase in the EPS compared to the previous corresponding quarter.

Currently, AWC had been sitting on a pile of RM 43.5million cash, equivalent to approx RM 0.19 a share on it's current cash level. While the group is currently in a net cash position at RM 40.5million, which is around RM 0.18 net cash value per share.

With the plans to expand their services to penetrate more into the private sector, AWC had seen breakthrough with the cornerstone foray into the healthcare sub-segment involving  provision of biomedical and facilities engineering maintenance services in Hospital Rehabilitasi Cheras, and also secured new contracts to extend integrated facilities management services to telco stores and outlets of Celcom Axiata and the new Heriot-Watt University Malaysia campus in Putrajaya.

Another boost came for the group as AWC had secured a new 10 year concession with higher revised prices from the federal government in providing their facilities management and maintenance services is southern zone and Sarawak.

While the environment division still looks challenging, AWC believes that the STREAM will be the next "smarter environment" system that will see more country embrace the system. The automated pneumatic waste collection system under the proprietary name of STREAM had on going projects in Malaysia (Iskandar region), Singapore and Middle East.

AWC will also be looking to see more opportunity through their collaboration effort with CMSB (Cahya Mata Sawarak Berhad), which is involved in construction, property and infrastructure development in Sarawak.

Moving forward, AWC will continue to expand its services by planning to add more non-concession business to it's facilities management business segment through tenders, joint venture or even acquisition.

AWC looks great both fundamentally and technically with summarized pointers as below
- Improving revenue and earnings from past 2 quarters
- Net cash position of RM 40.5 million, or 18 cents a share (cash value is 58% of current market price at RM 0.31)
- Substantial shareholder open market buying, increasing stake to 7.77% or 17.5million shares
- New 10 year concession for facilities management services in Southern Zone and Sarawak
- Strong opportunity in Sarawak state with collaboration with CMSB
- Provider of "Smart Environment System" under the name of STREAM, an automated pneumatic waste collection system which is used in Malaysia (Iskandar Region), Singapore and Middle East currently.
- Current price of RM 0.31 is at the support price of the trading range.

AWC will be an interesting company in the coming days. With the higher anticipation of a better result for the coming quarterly result, AWC Berhad will define itself in the future.

Bone's short term TP: RM 0.40

Cheers and have a nice day


Thursday, 5 February 2015

Master - One Masterpiece

Master-Pack Group Berhad is primarily engaged in the business of manufacturing corrugated cartons and providing one stop packaging solution and services to customers.

What could be so interesting about this packaging company?

Let's have a look at the latest share price movement of the company.

Master-Pack had been seeing a long consolidation at the range of RM 0.80 for more than 10 months. The consolidation had been long enough to see Master-Pack getting ripe enough to see a break above in it's share price. With the recent huge momentum volume, Master-Pack is currently all set to challenge above RM 0.90 technically, while a strong challenge backed with a substantial volume will see Master putting up against RM 1.00 very soon.

Master - Master Plan

 Master-Pack had been performing better for the FYE 2014. For the 3rd quarter of FYE 2014, Master-Pack had saw gradual increase in it's revenue and also a significant increase in it's EPS. A quick comparison saw Master-Pack 3 consecutive quarters result improving by 22.75%, or 1.24 cents.

Master-Pack revenue saw a rise when more companies start to adopt a greener process in their business operation, which is what Master-Pack can provide through corrugated carton packaging which are recyclable, cheap, light and good cushioning effects as compared to plastic foams, metal and wood containers.

While Master-Pack had been performing better, it's underlying freehold assets in Penang which had a net book value back at 2009 is a great reserve to the group potential NTA booster when revaluation takes effect. Currently, Master-Pack NTA is standing at RM 1.15 per share. At the current price of RM 0.81, Master-Pack is trading at a 29.5% discount to it's current NTA.

Coming up Catalyst

Beside from it's improving business revenue and net profits, Master will be finalizing it's FYE 2014 in the month of February 2015 which most will be anticipating a surely better result for FYE 2014.

Master-Pack is anticipated to reflect a 2014 EPS of around 9 cents to 9.5 cents. Taking a 9 cents EPS with a PER x10 will see Master being valued at RM 0.90.

While result are coming up, a better catalyst might not fall short for it's latest private placement proposal that is getting approval from the Bursa Malaysia soon.

According to the regulation of the placement, the price of the private placement shall not be lower than the par value of Master-Pack shares, which is RM 1.00. This automatically will be looking at the lowest possible price placement of RM 1.00. Current price of RM 0.81 is a 19% discount to the lowest possible private placement price. With this in line, Master-Pack shares are looking set to soar nearer to RM 1.00 or above RM 1.00 in order to cope with the private placement.

Master-Pack will be a good look out with the following pointers
- Improving quarterly results
- Current price is 30% discount from it's NTA of RM 1.15
- FYE 2014 result might comes with a dividend announcement
- Projected EPS of 9 cents for FYE 2014, trading at PER x10, Master to be valued at RM 0.90
- Incoming Private Placement that will be seeing a lowest possible price of RM 1.00. Current price is 19% discount towards the lowest possible placement price.

Hit before the placement? You decide.

Bone's short term TP: RM 1.00

Cheers and have a nice day