Tuesday, 4 April 2017

Can this company repeat the feat of VS Industry ?

Entering April, it is notable that the market continue to remain robust. As for KLSE, the bull defense at 1750 could be signalling a push towards 1780 in the coming days. One of the major contributing factor had to be attributed towards the inflow of foreign fund once again into the local equity market.

However, I had to agree that a lot of stock are actually being "fried" up in the midst of this 3 months. Now, some are in the stage of "refrying", while some are actually getting ready to be fired up.

One of the recent performer in the market that is contributed from it's stronger performance based on quarter to quarter comparison had to be Astino Berhad. As you can see, I always like to look upon the company that have potential, but neglected in the sense of seeing their share price no reflecting the true value, or forward looking potential. In fact, I had show you guys how I analyze into Astino using my simple method. And that was just 2 months ago where I had recommended on Astino when it is just laying at 70 cents. Today Astino is RM 1.00, and the public had started to realize on the potential of Astino now.

Now, I would like to take this opportunity to show you once again on my latest finding, where this company, which is dealing with EMS (Electronic Manufacturing Services) is liken to the Geshen and VS Industry 3 to 4 years ago.

As you can see here, Geshen and VS had saw their share prices rocketed upwards strongly due to more EMS contract secure, where one of the contributing factor is largely to do with the weakening of MYR against the USD, making Malaysia an ideal place in terms of manufacturing cost savings.

Of course, Geshen and VS already created their history, and you can only be jealous of it's past moment if you are not inside the ride.

But, I am now taking this opportunity to tell you about this company which is able to walk the path where both Geshen and VS had walked. But again, I have to tell you that please do not proceed to read if you are not willing to take excessive risk in such company that are turning around. It will be better for you to invest your money in fundamentally sound but boring company like Kfima, where you can at least taste some dividend.

However, if you insist in knowing this particular company, then I will tell you that this unknown company that many of us do not even know it's existence in the KLSE.

This company is - BSL Corporation Berhad (Bslcorp - 7221)

So what is so interesting in this company that it have the potential to become the next Geshen and VS ? I will extract the main point from the latest annual report of the company and tell you it's potential.

According to the official news, the company had secured production and delivery for a reputable TV maker for back chassis. Basically, other than the LED Screen, the rest of the TV are back chassis. Looking on, the profitable contract will be the EMS contract for air purifier as well as hand sanitizer.

Not only that, BSLCorp also had embarked into the renewable energy scene quietly without much people noticing. BSL Eco Energy is a 51% owned subsidiary of BSL. It can handle the EPCC of a project site.
While a lot of big company had been making big headline with 1MW, BSL Eco Energy had already built up the 1MW solar car park roof for UTM, KL.

This project is already completed and commenced operation since January 2017. Should there be nothing wrong, BSL Eco Energy will be deriving income from the renewable energy generated from the 1MW Solar Car Park roofing, benefiting the bottom line for BSLCorp.

Although a small company, I can see that this company is a doer without much talking. A few years back, the company had been net positive cash. However, much of the cash are invested into new operations to cater for EMS, and also the renewable energy segment. Now, this will be the time for BSLCorp to reap income from it's investment.

As you can see from the chart, BSL had been without any significant trading volume for a very long time, but not until the very recent that there are some open interest. As BSLCorp already broken above it's resistance line, I would like to take this opportunity to highlight this potential company to you before he start to run without brake pads again like how Geshen and VS did during it's bull run.

Now this is your decision time again. If you believe that BSLCorp can take the path taken by Geshen and VS through EMS contract, then invest in him. If you do not believe BSLCorp can perform, then shy away from it. Of course, BSLCorp now will also enjoy recurring income from their 1MW solar carpark in UTM, which is a plus point.

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