Thursday, 30 March 2017

Fixed Deposit in this company will pay you more than 5% now

With a diverse base of readership on my KLSE share trading journal, it is my pleasure to put some fundamental picks into my investment journey as well. As you can see, I am very versatile, and will not stick to a single method of investing, because I believe investing should be a very interesting journey, and a lot of factor will influence the investment decision.

To a lot of people, fundamental picks are at times very boring. It can be boring in a sense that there might not be much hoo-haa in the corporate scene such as corporate exercises, new acquisition or any other merger exercises. It is just business as usual, and keep improving the existing business. Well, i tend to agree and disagree, that is because sometimes, a fundamentally strong company can be as interesting as a speculative company in nature.

So today, I will introduce to you a very fundamentally sound company which you can virtually treat it as your Fixed Deposit investment if you are purely looking for the annual dividend. Of course, this package will come with a little bit of share price fluctuation in the mean time. But since the fundamental is strong, i would reckon that your capital is prone to the upside swing of the appreciation.

This time around, I will be very straight forward to point out to you this company, which is Kumpulan Fima Berhad (Kfima - 6491).

I will not go through this company with you like an annual report, but good enough extract to have you make your own decision in deciding whether this company will be your next Fixed Deposit destination or not.

I will attached the latest chart of Kfima here first, then I will go through with you on 4 different views on analyzing Kfima.

As a fundamental strong company, we will first talk about dividend. I will take the past 3 years dividend history as a benchmark.
2014 - 8 cents
2015 - 8.5 cents
2016 - 9 cents

Now we are in 2017, and at the trend that we are looking, probably Kfima will be declaring 9.5 cents to 10 cents dividend for the shareholder this coming May, and payable in September 2017.

Let's assume dividend for 2017 will be 10 cents. At the current price of RM 1.88, you will be getting a yield of 5.31%, where you will need to hold for approximately 6 months. Even if Kfima is at the price of RM 2.10, a 10 cents dividend will still be yielding 4.76%. And for your information, the current FD promotion that is going around Malaysia is giving around 4% per annum. If you are IT savvy, you can opt for Hong Leong Bank Tuesday FD promotion at 4.15% for 9 mths through FPX. But for now, are you going for a 4% FD or a 5.31% FD, that's your decision again.

Secondly, we will look at the latest 3 quarter earning of Kfima. This is as easy as Do-Re-Mi-Fa forecast.

1st Quarter - 4.31 cents

2nd Quarter - 5.2 cents

3rd Quarter - 6.59 cents

So as you can see, the total 3 quarter cumulative earning is at 16.12 cents. According to the growth of the earning, let's assume the 4th Quarter will be 7 cents, very feasible and practical right?

If that is so, the total FYE 2017 will be ending on a high note of 25 cents in EPS, which can be value Kfima at RM 2.50 based on PER x 10.

Thirdly, we will look at some technical chart now. I will put up very simple understanding drawing, no need to see MACD, Stochastic, MA and all sort of indicator, just resistance line.

If you refer to the chart, you can obviously see that Kfima had finally awaken from it's sleep, and ready to move forward after a hibernating for 2 years. The technical chart show that Kfima is ready to break above the long term down trend resistant line, back by growing fundamental.

Lastly, Kfima will also be going to have a 10 to 1 bonus issue.

As you can see, Kfima have 282 million shares outstanding, and share premium account is having RM 29.5 million, so that is just good enough measure to give a 10 to 1 bonus issue. Yea, you might be arguing that the latest Company Acts is bla bla bla and so, but according to the latest development, corporate with share premium account are given 24 months to settle it. Since Kfima do not have any losses to write off, then it will be bonus shares. So, that will be either this year, or next year, 10 shares held for 1 bonus share.

Regardless of that, Kfima also have a very strong cash balance of almost RM 400 million, which supersede any debt obligation they are currently carrying. So in short, Kfima is net cash company, and hence, you can be certain that for the next 5 years, you will still be getting consistent dividend.

This company is really for those who are eyeing for a long haul, and growing along with the company year to year basis. But for now, I had informed you about the possible corporate exercise involving bonus issue, which is one of the sexier part of this company.

If you are going to boom your cash load on FD promotions, why not allocate some towards Kfima, for a better yield, capital appreciation and some bonus shares as well ?

Friday, 17 March 2017

What happen to IWCITY will also happen to this company

The global equity market had welcomed the decision of the US Federal Reserve in raising it's interest rate, sending out a confirmation to the global market that the US economy had improved and forecast to continue it's strength as more jobs are added and lesser unemployment.

Of course, if you had been standing at the bearish side of this hike, I would reckon that you would had missed out a lot of great opportunities, especially in the equity market.

As for me, I am a dedicated market analyst, and also looking to bring to you exciting pieces of news, back with my own findings, research, analysis and forward making predictions. And this is the reason why you are still reading my KLSE stock market journal, because you would not be able to find it anywhere else, for FREE.

Just few days ago, I had mentioned on this very potential company - Notion Vtec. Although it's share price had already flew way up, but due to it's future prospect, I still decided to highlight to you in order for you to make your own decision, which is to Buy In or Stand Out.  Of course, if you had followed me on Notion and decided to Buy In, now you are richer by 100% if you had traded into Notion-wb at the price of RM 0.14, because the latest closing price is RM 0.285.

As you can see, this kind of opportunity doesn't come every time, and you have to make the crucial decision. There is no right or wrong in any of the decision made, but only different consequences in the end.

If you are thumping your own heart now for missing out on Notion, I am now giving you another chance to make back your glory in this company. Although this company is not dealing in the same industry as of what Notion is doing now, however, it's forward looking prospect is just as great as Notion, if not, could be even greater than that.

But you have to remember again, you have to be fast to decide, because the seats are limited. And once it takes off, I do not know when can I meet such an opportunity to share with you again.

As for now, basically, the talks of the KLSE market as of lately is all about Tan Sri Lim Kang Hoo's company, primarily Ekovest, and subsequently IWCITY. I have to agree that both these 2 companies are making a ruckus in the market with up soaring share prices that defy gravity. In fact, the latest corporate move by Tan Sri Lim Kang Hoo to merge Iskandar Waterfront Holdings (IWH) into Iskandar Waterfront City Berhad (IWC) by offering a take over offer of RM 1.50 for each share in IWC had spook the share price of IWC into almost reaching RM 3.00.

Actually, this is a much anticipated move, because of the large scale of development that IWH is having, the easiest way is to leverage with the public through fund raising, which will ultimately put the asset into public listing. The most prized asset injected from IWH into IWC will be the Bandar Malaysia land and Danga Bay in Johor.

Because of this ultimate event, I have the urge to tell you that what you had seen in IWCITY will most probably repeat itself in this company called - Dataprep Holdings Berhad.

As you can see in this graphical comparison, both Tan Sri Lim Kang Hoo and Dato Lim Chee Wah had privately held asset which are not listed. If Tan Sri Lim Kang Hoo got Danga Bay and Bandar Malaysia, then Dato Lim Chee Wah have Genting Secret Garden Resort which is the ultimate hosting place for Winter Olympic in 2022 that is going to be held in China. The Genting Secret Garden Resort is a USD 6 billion project, in MYR sense is RM 27 billion!!! And not forgetting, Dataprep too have contract with VXL as Project Delivery Partner for Genting Secret Garden.

Not only that, the VXL group is also having on-going program in developing integrated casino resort in Cambodia and Vietnam.

With such a huge project in pipeline, the one and only public listed company that Dato Lim Chee Wah is controlling now is none other than Dataprep Holdings Berhad (Dataprep - 8338)

Now, if you had been following me on Dataprep, you would had know that I had mentioned on the prospect of Dataprep since January 2017. In this post that I had made, you will see how VXL increase it's stake in Dataprep from 53% to the current 64.2%.

Prior to my introduction of Dataprep, they are a lot of critics locking their guns and shooting at me for promoting such a company, and they are looking for Dataprep to fall back below the 20 cents region.
But I am sorry to tell you that even though I keep quiet on Dataprep for 2 months, despite a flat result on it's financial report, Dataprep had been trading at it's range of RM 0.21 to RM 0.25. However, the latest move in breaking out above of RM 0.25 had confirmed that Dataprep is moving forward to a new range. Looking at this, Dataprep will be challenging above RM 0.30 in no time.

Now you have saw how the did the puzzle of IWH and IWC unravel. As you can see, all this big negotiation that Tan Sri Lim Kang Hoo did is parked under his privately held asset - Iskandar Waterfront Holdings. Why? The simple reason is because they do not want you to speculate on the share price and affect their collection of shares (Accumulation). This scenario is totally the same with Dato Lim Chee Wah's VXL. VXL is being privatized and engaged in large project in China, such as the Genting Secret Garden and the upcoming Integrated Casino Resort in Vietnam and Cambodia.

So now, I am here to tell you that if you had missed out on IWCity, you would better not choose to miss Dataprep again infront of your eyes. On the event when Dato Lim Chee Wah had decided to do corporate exercise which involved merger and acquisition between it's own companies, that could be a little too late, or too expensive for you. I really had no idea what will the price be. Maybe RM 1.00 or maybe RM 2.00, because the asset are big names such as Genting Secret Garden or Cambodia Vietnam Integrated Casino Resort City.

Now at the price of RM 0.27, which is still below 30 cents, I had presented to you once again - Dataprep.

You would had miss it when it is 15 cents, or 20 cents, or 25 cents. Before it goes beyond 30 cents, now you have the key to choose, because when it is 40, 50, 60 cents and all the way up, you will be sighing and regretful if you do not own any Dataprep shares.

Alright, no joke here. Dataprep is your once in a lifetime chance. You had saw how IWCITY unveiled it's plan, and I have to tell you that it will be Dataprep soon. At the end of the day, when Dataprep is RM 1.00, you will be either toasting your champagne, or drinking a cup of plain water.

What you decide to do today will determine, a champagne of success or a cup of regretful water.

Wednesday, 15 March 2017

Driverless Technology land Mobileye's shareholder USD 15 billion jackpot, this Malaysian company is the next in line

The search for the solution in the next generation disruptive technology in the automotive industry is none other than - Autonomous Driver-less Technology. In fact, big names in the industry such as BMW and Tesla had started on the pursue on this disruptive technology, and this new segment is going to make some industry rich and booming, while those that are not in line with this will be relegated into the bygones.

The question now is -
1.) How attractive is this new disruptive technology ;
2.) How much money is the leading corporation is willing to pour into this segment.

In order to answer the above 2 question, I will point towards the first big move in the global arena by Intel, which is a USD 15.3 billion buy out deal for Mobileye, a pioneer in car sensor and camera manufacturer.
Now, I have to tell you, USD 15.3 billion is really a lot of money involved. In MYR terms, that is RM 69 billion, which is more than the market capitalization of Sime Darby Berhad. (Currently Sime Darby market capitalization is RM 62 billion)

This new disruptive segment of driverless technology in the automotive industry is not only heavily pursue by existing big automotive player, but had took the interest of major tech company such as Apple, Google and Uber into the arena. As a matter of fact, I have to tell you that this industry will going to take on a big rampage, either with or without you.

Now, if you are planning to be involved in this boom, then I had the right piece of news for you. But if you are not ready for this, please for goodness sake, stop reading and quickly close the browser.

Alright! Now, I assume that as you are reading this, you had consented it on your own into exposing your money into this risk of having too much money to spend when the next jackpot hit your hand. Yea, I am not joking here because this jackpot can land you into your wildest dream that you can imagine.

But before that, I have to outline to you on how government policy and the available of new industry technology can influence a particular industry. As we are talking about the automotive industry, I will give you a sample on some of the latest development here.

As developed country are moving towards reducing carbon footprint, one of the most effective ways into handling this problem will be reducing the weight of the automobiles, hence saving fuel. In order to handle this, the solution is towards using aluminium as the body frame of the automobile. So this is a straight forward case - Look for aluminium producer and invest in them to make your fortune.
You do not need to look into other countries to find where are the producers, because Malaysia's Press Metal Berhad (Pmetal8869) is one of the largest aluminium producer in the world. As a matter of fact, this share had saw 2 bonus issue, paying consistent dividend, and looking at the trend, it is not going to stop anytime soon.

If you had followed me thoroughly, I am sure you would not have miss this wonderful piece of company that I had highlighted which will be the beneficiaries of the use of aluminium in the automotive industry. And to point out, I had highlighted on Arank at a freaking cheap price of 67 cents on 3rd May 2016 !!! Yes, a freaking cheap price of 67 cents, because Arank is now trading at RM 1.16. That is almost a 100% gain in the coming days, not counting the dividend received.

Now, I am going to tell you THIS company that is creeping up without you noticing, is a jackpot right in front of your door step.

But before this, I would like to tell you that this is not what I used to do in recommending share that are flying in the skies. But due to the opportunity, prospect and the hot money lurking out there waiting to barrage into this company, I had to thicken up the skin of my face by a freaking 5mm, and tell you what is happening in this company.

But, if you are not ready for this, I beg you to close it immediately before it poison your eye and mind!!! Do it immediately!!

Now this company is formerly known for it's involvement in the HDD manufacturing. But in the next 3 years, major revenue and profit will be derived from automotive industry. And this company is none other than Notion Vtec Berhad (Notion - 0083)

I am going to show you some mind blowing facts on Notion, and most importantly, it's co-relationship with the latest big hit - Mobileye.

As you know, Mobileye has 2 core products
1. Motion Sensor
2. Camera Lens

So, what about Notion ? Although Notion do not have motion sensor, but it is well known for it's digital imaging and camera lens technology, where they supply 80% of their products to Canon and Nikon.

As you can see, the digital imaging is essential for driver-less car, and a strong camera lens will be needed in order to support this. These are no ordinary lens, they are anti fog, strong weather resistant and in high precision, so do not expect it to be cheap at all, just like how DSLR camera lens can cost up to more than RM 20k.

And to put Notion and Mobileye on chart comparison, you will definitely be shocked!!!

Mobileye had started trend upwards in the beginning of January 2017, which is exactly the same as Notion. While the fairy tales of Mobileye had already came to a conclusion when Intel announce their buy out with USD 15.3 billion cash deal, the current surge or price in Notion is literally not known at all, and literally no research house have any solid findings on the development of the company despite the strong surge in share price.

Yes, I have to agree it is a little bit slow for me to spot this, but as I had mentioned, I had to thicken up my face and inform you that this is nothing compared to Mobileye USD 15.3billion deal. At the current pricing, Notion is only having a market capitalization of RM 300 million, which is a meager USD 66 million. This autonomous market is expected to be worth USD 6.7 trillion by 2030 according to Mckinsey research report. Mckinsey in a report also stated how this autonomous driving could redefine the whole automotive world.

Now, we are talking about Intel splashing USD 15.3 billion into this industry, and Notion being closely involved in this industry and just valuing USD 66 million. In fact, Notion is already involved in the automotive industry with the manufacturing of EBS (Electronic Braking System), and supplying them to customer such as ZF Friedrichshafen AG and Continental AG.

Now it's technology and plants in manufacturing lenses is very highly sought after by all the automotive manufacturer that are involved in the development of autonomous car.

The defining time is NOW! Yes, it is not later, but NOW!!! Intel did not wait, and strike the first deal in this industry. In fact, if you are familiar with the ongoing of Notion, you can see that the company is focusing in the digital imaging segment, which produce lenses.

According to a very close industry sources, Notion is already on a HIGHLY WANTED list by some big guns, and could potentially see an offer from USD 200 million to USD 400 million. Now Intel had started the fire cracker, it is time to see other splurging cash into securing trademark technologies and production.

Sources are looking at the supply chain of BMW, Nissan, Toyota and Honda to see big moves within 6 months. For these big guns, USD 200 million will not dent their bank account at all, but in the other end, it is up to you to decide now, how much do you want to benefit from USD 200 million, which is RM 900 million.

At RM 900 million, this will mean Notion can be looking at RM 3 now.

Yes, I admit that I am a bit late on putting in Notion for your reference, but for this case, it is better to be late than never, because the moving forward opportunity and prospect is just too bright to deny. I had shown you facts, shown you the charts of Mobileye and Notion with high co-relationship, and is telling you now right on your ears that Notion is on HIGHLY WANTED TAKE OVER LIST.

Before things unveiled further, now it is your time to decide. If it happened without you inside it, you have nothing to blame but your own.

Monday, 13 March 2017

Korean buy at 50% premium and you are doing nothing?

There is no doubt that the KLSE equity market continue to perform with more participation sighted in the market. As of last Friday, the total valued traded is worth RM 3.4 billion, while 3.19 billion shares exchange hand, a feat that had not been seen for quite some time in the KLSE. Honestly speaking, I do not know what is the real factor behind such bullish view. It could be due to the coming GE 14, the investment of USD 7 billion from Aramco into Pengerang RAPID, and the much anticipated Bandar Malaysia project that will see more than RM 300 billion in GDV. What ever the reason are, it could be too bad a choice if we do not choose to flow along with the big funds, right?

Albeit the local market still looking attractive to be traded, it is upmost important that we still need to do our very best in selecting prospective company to be invested. Hitting on blindly will still be able to spell trouble very easily.

Today, I would like to show you a company involving in logistic industry where the price is still sitting at 35% discount from the entry of the new owner. But before I would like to show you this company, I would like to go through with you on another similar case in this industry.

When we study law, we will study about landmark case as a precedent. Likewise, if you are looking to invest in the logistic industry, you will also be advice to study the precedent case, which is the case of GD Express Carrier Berhad (Gdex - 0078).

Basically, it all happen back in 2013 when news rippled out into the market where GDEX is going to see great expansion with an entry of a new strategic shareholder in order to help in expansion and add massive value through expansion network. In the year 2011, SingPost increased it's stake in Gdex from 4.98% into 27.08%. Back then, e-commerce is at its infant stage in Malaysia, however, it is a very promising market as more and more e-commerce platform are sprouting out and consumer continue to adopt to e-commerce platform such as Groupon, Alibaba, Lazada, and 11 street.

According to Kenanga Research, the domestic trend of B2C e-commerce delivery will grow 50 to 70% in the next 3 years, and will surpass the delivery revenue generated from B2B in 2019. (Source - The Star). The e-commerce arena is getting hotter, with Hong Leong Group joining into the bandwagon with GemFive.

Due to the future promising growth potential in the door to door parcel delivery, Gdex market capitalization multiply by more than 10 times. Currently, Gdex is sitting at a market capitalization of RM 2.3 billion.

A look at the latest quarterly result of Gdex show that the company is trading at x5.5 times the value of the NTA. If we annualized the EPS at 3 cents per year, it is currently trading at the PER of x55.

At this kind earning and current share price, Gdex is definitely a very expensive share. However, due to it's involvement in the lucrative promising business of express B2C delivery, it has even attracted Japan largest logistic player, Yamato Holdings Co Ltd into taking up 22.8% stake in the company. (Source - The Star)

Now, you had seen how powerful is the e-commerce platform, and how demanding will the express courier service will be, and how international player are willing to pay such a high price and high valuation in order to tap into the market.

For this instance, I would like to point into the current logistic player which had saw new foreign owner - Century Logistics Holding Berhad (Century - 7117)
On September 2016, CJ Korea Express had bought in 31.44% stake in Century at RM 1.45 per share. Now, that is really something that you have to look into seriously. If Gdex have the largest Japanese logistic player - Yamato, then Century too have the largest Korean Logistic player - CJ Korea Express, as their strategic investor. Compare strategic investor, then it is Century 1 - 1 Gdex now.

One of the most attractive asset that CJ Korea had saw in Century is definitely it's Multi Storey warehouse that is situated in Klang. I don't think Gdex have this, so Century 2 - 1 Gdex.

According to reliable sources, Century will be offering express B2C parcel delivery once the multi storey warehouse start to operate. The new service will put a new rerating catalyst into Century share prices.

If we do a back to back comparison on the latest quarterly result on Gdex vs Century, it is notable that Century command a higher revenue (Gdex 66 million vs Century 74 million), a higher EPS (Gdex 0.67 cents vs Century 1.64 cents) a higher NTA (Gdex 0.29 cents vs Century 0.78 cents) as well as a higher dividend. On current fundamental and earning that is Century 3 - 1 Gdex now.

Prior to the news where Datuk Phua had disposed of his holdings at RM 1.45 to CJ Korea, the share price shot towards RM 1.05 before starting to consolidate at the range of RM 0.90. According to the latest technical chart, Century had saw 3 occasions where the barrier of RM 0.90 was tested. While the first 2 incident saw the share price failing to sustain, the latest attempt which substantial volume is promising to see Century putting an uptrend after a series of consolidation.

Now that you had saw how Century (market cap - RM 360 million) is comparable to Gdex (market cap - RM 2.3 billion) in terms of financial performance, but Gdex is command a huge premium of PER x 55. The only differences that separate Century and Gdex is it's offer for express B2C door to door delivery services.  On current services of express B2C door to door, Gdex win. So Century 3 - 2 Gdex.

However, I am sure Century will be offering this service soon, because CJ Korea have delivery service contract with Lazada, and will be in charge of all the delivery of goods made in Korea that customer buys in the SEA market. So very soon, Century will be able to capture that 1 point back, and make it Century 4 - 2 Gdex.

Lastly, on price wise, Century had yet to boom, while Gdex had undergone 2 series of bonus issue and free warrants. So Century is liken to a rocket waiting to blow up soon. That add 1 more point to Century. Century 5 - 2 Gdex.

Conclusion, as CJ Korea Express buy in at RM 1.45, so, now are you going to wait and buy in at RM 1.45 or buy in now at RM 0.93 now is your decision.

Wednesday, 8 March 2017

Aramco had invested, what about you now ?

Today, I had to tell you that this bull in the KLSE is not looking to give up anytime soon despite having run for almost 2 months. Although there is a rest in February, this bull is looking set to continue it's charge. Albeit the known problems in the financial market, such as high level of debts, I think we have to realize that there are also high level of cash in the market, waiting to prey into good deals.

As the oil market plays a substantial role in the Malaysian economy, it is notable that the stabilizing of oil price above USD 50 per barrel is encouraging big corporate in pouring out the cash load and churn the economy moving again. The cartel movement in the reduction of oil output by the OPEC and Non OPEC members had also put a golden key into restarting the activities in the oil and gas industry.

Now, I have to tell you that I am looking back into the oil and gas industry in Malaysia due to
- Saudi Aramco confirmed to invest USD 7 billion (RM 31 billion) for a 50% stake into selective Petronas Rapid project in Johor. (Source - The Star)
- The stabilization of the WTI Crude Oil Price above USD 50 per barrel
- Oil and Gas industry rebalancing on business cost structure, adapting to lower oil price

For me, I viewed that the USD 7 billion investment of Saudi Aramco into Petronas Rapid Project is the top most important factor to start looking out at the local oil and gas company. And this project will also give the very needed confidence for the local oil and gas industry in ploughing back the cash into projects, and also equity market to hunt into bargain deal, especially those that are still being able to perform despite the challenging environment.

So before I am going to tell you this gem company that had been hidden away from the investor radar, let me show you 2 examples where the company share price are not punished despite the heavy losses in it's financial statement.

The first example is definitely Bumi Armada Berhad. (Armada - 5210). The oil recovery sentiment is so strong until even Armada, which posted massive losses for it's FYE 2016 is able to spare from a massive bloodshed.

As you can see from the below, Armada posted RM 1.9 billion in losses for FYE 2016, which is translated into a EPS of -32 cents. Although the share open gap down in a huge manner, the strong eat up is just mind blowing and eyes popping. So is the market telling us that even a company which performed so terribly does not deserve to be punished in it's share price because investor had went gaga over the recovery of oil market???

Honestly, I had no idea, but the amount of money that is put into buying up Armada ain't a joke at all. It takes real guts to buy in such amount, and real guts usually come with considerable amount of facts in hand.

The second example is E.A Technique (M) Berhad. Now this is a not so bad example as Bumi Armada, but it's 4th quarter also dipped into the red zone, putting up an EPS of -4.3. However, the total FYE 2016 EPS is still positive at 1.74 cents. Looking at the share price, it had similar effect like Armada where the share gap down, however, recovered to it's position during the end of day. Albeit Eatech trading at 67 cents, it is considered pricey in terms of earning, and also trading above it's NTA value.

So again, mind blowing facts. Can these 2 example summarized that oil investor are too rich until they just bang into anything, disregard it's valuation ???

Here comes the 3rd company, which is the company which I think you should be seriously looking into if you would want to add an oil and gas company into your investment portfolio.

Yea, the company is as below.

*** "What the f*** !!?? Are you showing me a Goat ???"  ***

And oh yeah, this company is called "Big Goat". In Mandarin, it is called (da) (yang). So, do you get it now ?

Now, what is so interesting about Dayang Enterprise Holdings Berhad (Dayang - 5141) now ? 

I am going to be very direct to the point, and we will talk about it's financial performance. As you can see, the last 2 quarter performance, it's result had been very encouraging. During the 3rd quarter, the company came back from the red, and record an EPS of 4.12 cents.
And subsequently on the 4th quarter FYE 2016, the company again posted a positive EPS of 5.37 cents.

The revenue and profits are generated from service, maintenance and repair contracts, which are business revenue and profits. Although there had not been big changes in the revenue, the profits are hugely attributable from the lower operational and input cost from the whole oil and gas industry supply chain, which is a very good thing for the industry as a whole. At the current costing, Dayang could be looking to put in a total EPS of 18 to 19 cents for 4 rolling quarters, which can effectively value Dayang at RM 1.80 to RM 1.90 based on PER x10.

As you can see in the chart, there had actually been a massive accumulation of Dayang at the price of RM 1.10 to RM 1.40 back then at February 2016. Supported with the good underlying result, it will be in no time that Dayang will revisit the resistant level of RM 1.40. I believe that with the current lower operational cost in the whole general oil and gas industry, Dayang is one of the best option if you are planning to put in a oil and gas company into your investment profile. 

Comparing to Armada and Eatech,  Dayang had 9 cents EPS from 2 quarters, and can be annualized towards 18 cents for 4 rolling quarters. Above that, the NTA of Dayang is also above it's share price, which is RM 1.45. Both figures are better than Armada and Eatech, however, Dayang had yet to really saw it's share price moving upwards for the time being.

Now, again. If you are not a risk taker, please do not invest in this volatile commodity based counter. However, if you see the potential in this company despite the current challenging environment, I believe that your investment will be greatly rewarded when the right time comes. You wouldn't know if Dayang could be ringing at RM 2.00 at the end of this year, who knows ?

Tuesday, 7 March 2017

What are you waiting now if this company is a future MidValley

As you know, one of the criteria of being successful in investing had to be attributable towards the ability to foresee the long term potential when nothing is built yet. Of course, in order to reap the great success of this opportunity, it is utmost important that the holding power have to be very strong, and the investor much have high tolerance towards resisting the urge to take a premature profits, and also being able to ride through rough moments in the market, controlling emotions.

Before I would present to you this company that had such potential in replicating successful malls such as MidValley and One Utama, you must ensure that you have a good solid cash that is prepare to go long haul, for at least 3 to 4 years.

Now, I foresee this very precious company is going to happen exactly what I had went through with the other 2 companies I am involved in 4 to 5 years ago.

Before I am going to tell you what company is this, let me tell you what I had went through 4 to 5 years ago.

As some might know and some might not know, I am involved in the real estate industry 4 to 5 years ago. Prior in dealing with sub-sales market, my first experience in selling a new project from a developer is with i-Bhd (iBhd - 4251). As some of you might know, iBhd is previously dealing in air conditioner, however, the company took a major change shift and turnaround, and got involved into property development. Basically, iCity Shah Alam is the first big maiden project of iBhd, which comprises of SOVO, SOHO, Residential, Service Suites, Offices and Shopping Complexes. As for me, I am involved in the sales and marketing of iSOVO, which is erected above the carpark. During that time, Shah Alam is selling for about RM 500 per square feet. Sales are crazy and most units from 2 blocks of SOVO taken up in 1.5 months. As I am seeing the sales bombing in so easily like chicken laying eggs, it intrigued me into looking into iBhd share price.

That was in 2012 where iSOVO is launched, and iBhd is only a mere 80 cents. The rest is history, where in 2014 before the share split, it is trading at RM 3.50. You do the maths and see what is the return.

So, prior after the completion of iSOVO in iBhd, I continue my real estate journey, and seize the opportunity in my 2nd project sales with Gadang. During that time, Gadang is known as a construction outfit player, and not too well known on property development as it's previous portfolio consist of lower end housing. However, the launching of The Vyne - Sungai Besi is one of the maiden high end flagship project by Gadang. With a total of 5 blocks in the whole master plan, I am involved in the 2nd and 3rd block of the sales (Block B and Block C). Block A was fully sold out then.

To my amaze, Block B take up rate was again amazing. If I am not wrong, the whole of Block B is fully taken in 3 weeks. Since I had saw what happened to iBhd on their first maiden project, I told myself not to miss Gadang, especially if I am also involved in the sales.

At that point of time, Gadang is just trading at 80 cents. And the share price sky rocketed into RM 2 region due to improving revenue and profits.

So, can you see it now that investing is really that easy ? Based on the above 2 example, both companies saw share price sky rocket a lot on their first maiden project.

Now, I foresee that this company that is going to provide the same feat!!! You better be ready for this, honestly!

This company is previously plagued with financial problem, and it took Dato Tiong to rescue this ailing company from being delisted, now into a coming up mega rock star in the property arena. Ecofirst Consolidated Berhad (Ecofirs - 3557) is the rising major star player that every property and share market investor need to look on.

Now the company maiden flagship project will be a 87 acre prime freehold land at Ukay Perdana. According to Google Maps, it is 7.2km away from KLCC, 8 minutes drive. This mega project that is undertaken by Ecofirst carries more than RM 5 billion in GDV. And with it's official launch of Liberty Arc in March, this is going to be the time where the share price will start to melt the brake pads. According to reliable information, Block B and Block C are 95% sold out and the remaining Block A will be going out fast too. (Source - AmpangUkay)

While there aren't any recognition of revenue for Liberty Arc, things are not going slow at the site.
According to Google Maps, the earthwork are being done and latest update reveal that even the foundation pilling had carried out and going to be completed soon.

If you have doubt on me, I will show you the financial statement. It is stated that "Property Development Cost" in it's current asset at RM 200 million!!! Now that is a big figure that if once recognized into sales revenue, you know what will happen into the financial result.

Now after seeing so much of lucrative facts and example, it is your time again to do the decision making. I have wrote on this company back then when it is still 20 cents in 2013, that is when this company is forming up after a series of restructuring.

Now in 2017, the company is starting on it's maiden project on the 87 acre freehold land with more than RM 5 billion in GDV, where the share price is sitting at just RM 0.28 cents. Yes, I am introducing Ecofirst to you before this company start to rampage all the way up like how iBhd and Gadang did for their First Maiden Project.

After sacrificing the cash cow 1Segamat mall in Johor in order to improve cash flow and reduce debts, the integrated development in this place which comprises of malls, hotel and service suites will put a strong recurring income for the whole group, and it is potential to replicate into the MidValley of Ampang Ukay.

3 to 4 years ago, IGBREIT is around RM 1.00. To date, it is RM 1.71, not counting into the dividends throughout the journey. You would had sighed on the opportunity missed out 3 to 4 years ago, and you cannot go back into the time.

Now, Ecofirst is 28 cents. I am telling you that in 3 to 4 years down the road, it could be 70 cents, 80 cents, and who knows, more than RM 1.00. Don't be surprise, but everything starts with the action now.