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Tuesday, April 25, 2017

OCNCASH- are you too late?



OCNCASH stock.
Oceancash Pacific Bhd.
Share price: RM0.68
PE ratio TTM 15 times.

Listed in 2004, Oceancash Pacific Berhad is primarily involved in the manufacture of felts and non-woven fabrics. The company, which commands about 60% of the Malaysian felt market, mainly produces thermoplastic and resinated felts that are used in the automotive and air-conditioning industries. In the non-woven segment, OCNCASH’s fabrics are supplied to disposable hygiene product manufacturers. An estimated 80% of its non-woven fabrics are exported to more than 10 countries across the globe.
Source: CIMB




Why OCNCASH?
Potential transfer to Main Market, or the uncle aunty like called it Main Board. They already made more than RM20 million in the last 3 or 5 years and the latest financial year more than RM6 million. 

Initiated research by CIMB with Buy recommendation on 3rd April, with target price of RM0.88. CIMB said...... Felt demand shifting into high gear through automotive industry. OCNCASH’s felt division contributes up to 37% and 58% of OCNCASH’s revenue and EBITDA, respectively. Moving forward, we project significant volume growth on higher demand, especially from the  automotive segment. OCNCASH recently secured more orders from new and existing customers in both Indonesia and Malaysia. This is expected to raise total monthly outputs significantly, albeit on a progressive basis. Higher auto production in Malaysia once Proton secures a foreign partner by mid-2017 is another catalyst.




On another report on 11th April, see what CIMB said in its report......
From Indonesia with love.
We recently hosted a meeting between Oceancash Pacific’s management and 12 analysts and fund managers.
There were no major surprises from the meeting, with management having a positive view (which we share) premised on its strong earnings growth. 
The group expects strong volume growth in the felt division, mainly driven by rising demand from Indonesia, especially from the automotive industry.
Management also expects higher demand from the air conditioning industry. 
Maintain Add with an unchanged TP of RM0.88. Total upside stands at 27.7%.

New orders to drive the non-woven segment. For the non-woven (hygiene) segment, the group expects rising customer enquiries to translate to significantly stronger  production. Note that our -woven segment. For the non-woven (hygiene) segment, the group expects rising customer enquiries to translate to stronger orders in the near term. Management said that it is still in the midst of finalising orders from a new customer, which can lead to significantly stronger demand for its hygiene products. In the event that demand is stronger than expected, OPB did not discount the possibility of adding a new line to increase production. Note that our earnings estimates have yet to take into account any significant new orders.



CONCERNS:
Are you too late in OCNCASH?

According to CIMB....... Since our initiation on OCNCASH, the stock has appreciated by 25%. However, we still advocate that investors accumulate the stock, given its strong growth prospects. We are projecting the group recording a 3-year CAGR of 18.6% (FY17-19F), premised on: i) higher sales of felts in Indonesia, ii) better economies of scale from felt volume growth, and iii) higher global demand for non-woven products, especially in China and South East Asia. We maintain our Add call, with an unchanged SOP-based TP of RM0.88.

You see, when CIMB recommended, the price was only RM0.56. However, CIMB said although up 25% already you are not too late. However, when I spotted OCNCASH, it was on 23 February the price was only RM0.45, now up more than 50%. Are you too late?

If you wonder why I did not share when it was RM0.45. I check the stock, it was good but the info was everywhere. News, picture, result, blog, etc. It will take me many hours to share. At that time, my conclusion was on the stock was good” but I cannot just share one word good, I must tell why. Furthermore, I see no research coverage, I thought can wait a while. There are also some articles or stocks queing up for me post. Before I got time to share, it already went up substantially so I put on hold first until recently I saw CIMB report which makes things easier to share. I can just summarise the reports but it also took me few hours. Trying to explain (or justify) a bit in case of you think that I'm Ma Hou Pao (Cannon Behind the Horse) LOL.





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Friday, April 21, 2017

Matrix Concepts- is it about high dividend yield?



MATRIX CONCEPTS HOLDINGS BHD
Share Price RM2.55
PE Ratio ending 2017 March 6.4x
Dividend Yield 5.5% and projected to increase to 7.8% after two years.


Why Matrix share?
The dividend yield is 5.5%, relatively high as compare with many other listed companies.
Some may say they are very generous in paying dividend. Well, this is half-truth. No doubt, they are very generous, but their pay-out ratio of about 35% is quote normal. What make them to have the high yield is because of the low PE ratio, only 6.4x.

Low PE ratio is nothing if the company is not growing, but we can draw comfort that the dividend yield is quite high.

I hope nobody will buy shares solely based on dividend yield. If the share price drops 15%, then3 years of dividend only can break-even.

Look at growth. Based on forecast by Hong Leong, Matrix will continue to grow or expand and the PE ratio will drop to 4.5x for financial year March 2019.

According to Uncle K, we should not buy property stock now. The profit that we are seeing “now” is the sales transacted few years. Due to downturn in the property market, sales were really bad for the past two years and it will be reflected in the financial result in the coming quarter or years. I fully agree with him. In fact, some property counters have already reported lower profit and the prices have also reacted accordingly. However, when investors buy shares, they are also not buying for the profit now, or what the public already knew. They are buying for the future. If someone buying property stock, he probably has factored in the drop in profits for the coming quarters and years, and anticipating a rebound in the property market.

Having said that, does Matrix sales or property “booking” drop?  See what Managing director Datuk Lee Tian Hock said recently……

………. For the financial year ended March 31, 2017 (FY17), Matrix Concepts surpassed its sales target of RM850 million by 23.5% to hit RM1.05 billion. For FY18, it aims to achieve RM1 billion in total sales.
“We have only come towards the [third week] of FY18 but we are very confident about hitting our target. We just clocked in RM200 million in sales from the recent launch of the first residential phase at Ara Sendayan,” Lee said.
Matrix Concepts currently has a total land bank of 2,000 acres (809 ha), with 1,500 acres situated in Negeri Sembilan and the remaining 500 acres in Kluang, Johor.
The group’s existing land bank carries a gross development value of RM12 billion and will keep it busy for the next eight to 10 years, Lee said…………..

From what I see, they will be able to match their 2017 result.

One minor development…… Through its subsidiary Matrix IBS Sdn Bhd, Matrix Concepts (80%) has entered into a joint venture (JV) with Nissin Ex. Co. Ltd (12%) and Nihon House Corporation (8%) to set up a manufacturing plant to manufacture prefabricated building materials using the technology of Industrialised Building System (IBS).
The factory will be located at its Sendayan TechValley, Bandar Sri Sendayan with a planned capex of RM30m (excluding the cost of a 12 acre industrial land). The factory is expected to be completed in 3QCY18 and has a production capacity of 700 terrace houses p.a.
According to Hong Leong…….. We are positive on this development as Matrix stands to benefit from the transfer of IBS technology from both the reputable Japan counterparts, potential cost savings, better built quality and improve efficiency.
While the manufacturing plant is currently targeted to fulfil their in-house development, the JV does not rule out the possibility to supply to other housing developers in the longer term when IBS is widely adopted by the industry.

Matrix are recommended buy by both Hong Leong and Kenanga Investment Bank with target price of RM2.89 and RM2.65 respectively.

If they are able to achieve the forecast by Hong Leong, do you think the price will stay at this level when the PE ratio is 4.5x?


Why Matrix is not our cup of tea?

As mentioned earlier, growth is more important than dividend yield. Can they achieve growth?

Risk of prolong downtrend of the property market.

Matrix is a stock that is being researched by some brokers and we may not get any super cheap price.

Low target price by brokers.

If I may sum up, Matrix share price probably may not “fly” 50% or 100%. But it probably may not “dive” also. The reason I post this is because I saw the article about their sales which is quite encouraging, and also the reasonable high dividend yield. I know there are many people who just like high dividend yield stocks. Maybe they really have no time to study so many stocks or news in the stock market and dividend yield has proven to improve their wealth year after year. Some people may be looking for some property stock because they have a feeling that property stock will rebound soon.



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Tuesday, April 18, 2017

KGB- will MADE IN CHINA lift their profit?


KELINGTON GROUP BERHAD.
PE ratio currently 15 times.
Dividend yield 1.8% after the proposed dividend today.

Why KGB?

See what the management said in the last quarter.....
During the 12 months period ended 31 December 2016, the Group had secured new orders amounting to RM323.44 million. This is the highest amount of new orders ever to be secured by the Group within a year.
Combined with the orders carried forward from the previous year, and new orders secured to-date in 2017, the Group has an orderbook on hand of RM546.99 million, of which RM206.76 million remains outstanding.

Under the current competitive business environment, the Group is focused on delivering the projects on a timely manner and is vigilant in managing costs.
Based on the Group’s orderbook level and barring unforeseen circumstances, the Group is confident that the Company will continue with the good performance in the coming year.

=========  

BENEFITS FROM “MADE IN CHINA 2025” INITIATIVE.
“Under the Made in China 2025 initiative, China aims to become a superpower in the manufacturing of high technology industries by 2025. The China government is undergoing a significant capacity expansion growth and is expected to invest heavily to increase its production 
of memory chips and semiconductors.”
“According to industry reports, China aims to produce 70% of its total consumption of integrated circuits, from approximately 10% now. This augurs well for players like us as we aim to gain a  share of the capex expansion activities of these technology players,” he added further.

The Group is optimistic that it will be positively impacted by the expected capacity expansion growth in the China electronics market.

=====

Dividend.
Although growing, still paying RM0.01 dividend. Last year RM0.005

Expand to have recurring income.
KELINGTON SECURES FIRST INDUSTRIAL GAS SUPPLY CONTRACT.

Under the contract, Kelington will setup an onsite generator to produce nitrogen gas at the Hanwha Q CELLS’ manufacturing plant in Cyberjaya, Malaysia. In return, Hanwha Q CELLS will pay a fixed facility fee amounting to approximately RM20 million over a period of ten years.

Hanwha Q CELLS is one of the world’s largest manufacturers of solar cells and modules and uses nitrogen in its manufacturing process.

Ir. Raymond Gan, Chief Executive Officer of Kelington Group Berhad said, “Our expansion plan into a recurring long-term business is taking place as planned. This is our first industrial gas supply contract, marking our successful foray into this new area. This new business is long-term in nature and would add a stable and recurring income stream to the Group. It would enhance our earnings visibility, providing sustainable returns to our shareholders.”


See what Hong Leong said.....

 KGB was a leading Ultra-High Purity (UHP) Gas and Chemical Delivery Solutions Provider in Malaysia, China, Taiwan and Singapore. KGB is an integrated engineering solutions provider specializing in ultra-high purity (UHP) gas and chemical delivery systems, mechanical process engineering, mechanical systems and electrical systems. The Group provides end-to-end engineering solutions ranging from system design to fabrication and installation of equipment to testing and maintenance. 

Outstanding orderbook about RM277m. 
Yesterday, KGB announced that it has secured RM24m contract to Givaudan Singapore (a leading flavour and fragrances manufacturer). Together with the RM19m contract to a China global semiconductor MNC (secured on 3 Apr) and its first industrial gas supply contract of RM20m (secured on 28 Mar) to Hanwha Q CELLS (one of the world’s largest manufacturers of solar cells and modules), KGB’s has an outstanding orderbook of ~RM277m. 

Serving diversified industries. 
Established since 2000, the Group serves customers in the high technology industry across different sectors such as Industrial Gases, Wafer Fabrication, Solar Energy, TFT-LCT, Bioscience and Light Emitting Diode (LED). KGB has also expanded its industry focus to include the F&B, pharmaceutical, healthcare and oil and gas sectors. In FY2016, Singapore contributed 39% to the revenue, followed by Malaysia (38%), Taiwan (10%), China 98%) and other (5%). 

Potential downtrend reversal. 
KGB is currently trading at 8.3x FY16 P/E (7.1x if excludes 7.9 sen netcash). The stock has retraced from 52-week high of RM0.64 (5 Apr) to a low of RM0.53 (14 Apr) before ending at RM0.565, above the 30-d SMA level (now at RM0.545). Short term rebound seems taking shape and we expect prices to bottom up amid the formation of hammer-liked candlestick. 

A decisive breach above RM0.59 (10-d SMA) is likely to spur prices higher towards RM0.64 and our long term objective of RM0.70 (123.6% FR). Key supports are RM0.53-0.545. Cut loss at RM0.525. 

Source: Hong Leong Investment Bank Research - 18 Apr 2017

According to a blogger excelyou, some of KGB's major customers are growing.

Net cash about RM0.079

Although price has up 100%, it has dropped 16% from RM0.63 in April to RM0.53, but now has reserved and resumed uptrend. Can refer chart analysis by Hong Leong above.



Concerns.
For those who are concerned on the price, KGB up from RM0.30 in January 2017 to slightly less than RM0.60 now.

If their result not good, price will be under great pressure. 

The gas supply project is something new to them and may not be easy to execute.

I don't know how Hong Leong got the profit RM15.4 milion for 2016, from what I see from announcement is only RM8.7 million. Maybe they excluded certain one-off item.


If Hong Leong's figures stand, the buying interest for this stock will be high. Now hard to find a growing stock with less than PE ratio 10.

End.


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Friday, April 14, 2017

Why Peggy Should be nominated for mini Nobel Prize in Bursa Malaysia

Peggy wanted to know why pump and dump counters went up but many people still lose money in the long run and overall still lose. In order to understand, Peggy went to experience it.

After her experience by following tips by fomous bloggers, she found some major points.


Each individual has different behaviour so there will be different timing, cut loss, capital, risk, fear, etc. Therefore, many points are hard to discuss. Below are just some major points.



Confuse Short or Long Term.

Why people rush to buy immediately after seeing an article published by pump and dump operator?
Answer is fast money. This = short term.
When the price doesn't move up for them to make the desire profit, they hold, because the article is on long term. Oh oh. People are confused here. When people are confused, normally they lose money. If they want long term, there are plenty of long term stocks, why rush to buy this. Don't be confused. Furthermore, most of these articles just showing good points to attract people and not sure whether are good for long term.


Another point is.... Price already up one or few days earlier.

People will say don't worry if the price already up if we invest for long term and the future is more important than the past. But these people want fast money, they tend to lose out because as the name called, pump and dump, the price already pumped up, and when many people rush to buy, pump up again, and in the end the buying price is very very high. Inflated price. Pumped up price. Premium price, or whatever name. Big disadvatage here for short term people. If some say don't worry if price already up, buy for future, you see, again people are confused with fast money and long term.



Another point.... Percentage Gain.

The percentage gain make from so called tips are much lower. Imaging if we buy a long term stock, recommended by some genuine analysts or bloggers, at RM1.00, the share price continue to go up, until it reaches RM2.00, first we have plenty of time to buy around RM1.00, or RM1.05 if a bit late or too early. Then sell at RM2.10, RM1.80 or RM1.90, plenty of time if we feel that the price has exceeded the potential. Still have time to eat a pao and have some coffee to ponder whether to sell. Or even go to Australia for a week, plenty of time to think. Easily can make 20% 30% 50% 100% or more.

But if we buy based on the tips, we have to rush to buy. Sell? WE DO NOT KNOW WHEN TO SELL. If we use our normally sell decision making process, hold as long as got potential, then we are not for fast money. See you, we are confused again. If we want to sell fast to make fast money, when to sell?

Buy RM0.30, up until RM0.32, sell? RM0.34, sell? Drop back to RM0.28, sell? RM0.50, sell?

If we hold, are we trading long term? If we sell at RM0.34, more than 10% return, the stock goes up to RM0.50, we feel that the blogger is very good, next time hold longer. We always use the highest price to judge a blogger. Wow, recommeded at RM0.30, went up as high as RM0.50. But who can sell at RM0.50? Who know RM0.50 will be the highest.


Because of these difficulties, sometimes make profit, sometimes lose, people tend to invest smaller amount. Smaller amount can't really make much. Those who have made big gain, invest big again and incur big loss. Ended up nothing.


Why must we invest in smaller amount when follow tips? If sometimes gain, sometimes lose, net still having good gain, why must we invest in smaller amount? Because deep in our heart we know this kind of investment following tips are risky, end of the day we may lose.



From the experience, it seems not so easy to make fast money following tips share by bloggers.


Price already up (pumped up), volumn few days ago already up maybe someone waiting to sell , confuse whether short or long term, investment amount whether go big or small also we are not sure, not sure when to sell. % gain also low, don't know how to sell at highest because never know. We judge people by comparing the highest price with the recommended price. All these cause making money from tips very difficult.


However, if those who are making good money after many rounds of following tips, share with us how.


Those who sometimes make, sometimes lose, make 5%, lose 20%, confuse, gain from RM5k capital but lose when invested RM10k, quickly re-examine.


I know for sure some will make very hugh gain.


Recommeded stock A. Up a bit then down a bit. So some people make a bit some lose a bit.

Recommeded stock B. Up a bit then drop a lot. So some make a bit some lose a bit some lose a lot. Different people buying and selling at different price.
Recommened stock C. Up a lot. Some sold early make a bit. Some hold and make huge gain.

Out of so many people follow, some really make a lot. But only a few. Can we be so fortunate among the few?



======

Two Australian scientists, Robin Warren and Barry Marshall were awarded Nobel prize for physiology and medicine for their "unexpected" discovery that has saved millions of people from the pain of stomach ulcers.

Dr Barry Marshall succeeded in cultivating the bacterium, which became known as helicobacter pylori. To emphasise their point, in 1985, Dr Marshall deliberately infected himself with the helicobacter pylori bacterium to prove it caused acute gastric illness.


======


To show erection not just emotion, but can be physical, in 1983 Sir Giles Skey Brindley [Brindley had] injected himself with papaverine in his hotel room before coming to give the lecture, and deliberately wore loose clothes (hence the track-suit) to make it possible to exhibit the results. He stepped around the podium, and pulled his loose pants tight up around his genitalia in an attempt to demonstrate his erection.


======


From 2016 to 2017, Peggy went to real experiment in order to find out why majority of people keep losing money following famous bloggers.





Tuesday, April 11, 2017

Notion- Keep Boiling

Today a quick post because the warrant is going to be suspended from trading immediately.

Notion share price RM1.16

Why Notion?
Recommended Buy by Kenanga (Notion VTec - Expansion at Boiling Point) with target price of RM1.58, 36% upside. Look at the words "Boiling Point". I hope analysts will not use exaggerate words loosely and hope they really mean it. In July 2015 that was how I found OCK Group - Making The Next (Big) Leap by RHB. You saw the words Big? The word Leap? Up 100% after about one year.

See what the management said.
1) The demand for Auto EBS plungers will grow 30% Year-over-Year (YoY) in 2017 and again in 2018 and a new hard anodising line has been successfully installed and 50 new auto-lathe CNCs catering for the growth are being installed over Jan to May 2017 period.
2)The new Johor rented factories in Gelang Patah was set up in late 2016 to target new businesses and with a new energetic team we expect new business from a few new customers in the fasteners and engineered products, electrical consumer goods and EMS sector.
3)The Board is optimistic of more growth and earnings in the coming quarters.
4)With all our new planned projects, I am cautiously confident that for FY2017, our Group is expected to be on a much stronger
footing and will continue to be in the positive territory.

At least got some dividend and yield is about 1%, projected to grow.


Concerns?

For those who are concerned about price up already, Notion share price already up 200% from Nov 2016.
But further back, it was RM3.50 in March 2010 and keep dropping 37% to RM2.20 until April 2014. Then ex for warrant and bonus became RM1.25. Now also RM1.16, not much change from 3 years ago RM1.25.

Why the price was so low then? See what RHB said in January 2017 report, they said ........... Light at the end of the tunnel. Notion VTEC (Notion) was hit by a series of unfortunate events over the last five years, ie a major flood at its Thailand facility in 2012, a fire accident in its Klang production plant in 2013, losses from non-core investments in 2014, and losses suffered from its currency-related derivatives exposure in 2015 and 2016. All these are set to come to an end as it has managed to recover due to insurance claims and clean-up of its books by writing off non-core investments, as well as settling all its derivatives exposure.

Warrant is expiring, and some people may sell Notion and buy warrant to arbitrage to make few %. This will provide some pressure to the share price.

PE Ratio is 35x, very high. Agree. Part of the reason was due to provision of differed tax earlier.

Notion may not achieve the growth as per forecast. PE ratio so high, if no growth, it may not provide support to the share price.



Warrant.
Look at the warrant at RM0.125, exercise price RM1.00. Date & Time of Suspension : 13/04/2017 09:00 AM. Expiry date 02/05/2017.

For those with experience, what can we do?
Those with experience who are holding Notion, may sell Notion eg RM1.15 and buy Warrant RM0.09+RM1.00 to convert. Gain(or difference) is RM0.06.
100,000 shares = RM6000 excluding brokerage cost and other small cost.

Those with experience who already wish to buy Notion, may buy warrant and convert, rather than directly buying Notion stock.

The gap was RM0.06 to RM0.08 but now the gap is getting smaller. Based on closing, the gap is only RM0.025.

Only those with experience, I repeat that, because last day of trading is 12/04/2017 and maturity is 02/05/2017. Make one mistake, 100% total loss. Please consult your remisier/dealer even for those who are have experience.

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Monday, April 10, 2017

PRESTARIANG BERHAD- Alibaba came before and will concession agreement be signed in April?



PRESTARIANG BERHAD
Share Price RM2.40
Dividend yield: 1.2%


MERITS:

Alibaba.
A lot of excitement are on Alibaba over the past few weeks where some counters up 20% or hitting limit up during the day. This is not a company that have potential to tie-up with Alibaba, but in fact, they had already tied-up with Alibaba in January 2017 on EduCloud. Read more on The Star Friday, 13 January 2017, Prestariang, Alibaba and Conversant form IT tie-up. The Star Thursday, 12 January 2017, Alibaba collaborates with Prestariang.

The CEO said . . . .. "EduCloud will capitalise on our existing footprint, help grow our customer base, and expand our offering to include not just licensing and training, but also online application and services," said Prestariang president and group CEO Dr Abu Hasan Ismail.

See what Public Bank analyst said..... As for the recently-announced EduCloud project, the launching is expected this year though a little more preparatory work is needed at this juncture. It is seen to be creating a lot of excitement for the group over the longer-term as cloud-based systems are still relatively new in Malaysia........


Recommended Buy by few brokers.
Public Bank with Target Price RM2.87.
CIMB Research with Target Price of RM3.00
In March 2017 AmInvestment Research has initiated coverage on Prestariang with a Buy recommendation and a fair value of RM2.60 a share.
RHB (old report) RM2.57 in November 2016. That was before the mini bull run in 2017.




SKIN Project.
Prestariang received a letter dated 15 Nov 2016 from the Government to confirm that the Cabinet has approved the implementation of its proposed National Immigration Control System (SKIN) project. According to Public Bank analyst, they are expecting big earnings jump this year. See what they said.. . .. . . ..  As the National Immigration Control System (SKIN) project is expected to start sometime this year, we see new earnings being recognised during the construction period. Assuming a 10%-15% profit margin, the SKIN project could generate at least RM20m-30m per annum to the Group's bottomline upon commencement.......


Potential catalysts
As reported in The Star Wednesday, 29 March 2017, CIMB said " Potential catalysts are the signing of the contract for SKIN concession"..... " However, following the signing of the agreement with Thales as the technology partner, we believe the concession agreement would be signed with the government in April".


If I understand correctly, Prestariang will earn the construction profit during the construction period. Then 12 years to maintain and operate where they have not gotten the deal yet.


Time for Rebound?
2016 result was very bad. Public Bank analyst said . . .. . .....Nevertheless, we think the worst is over and the company should do better going forward as the SKIN project is going to start this year. We maintain our Outperform stance with an unchanged TP of RM2.87.....


Share price has been beaten down. If Prestariang manage to recover the profit, and add in additional profit from new project, the price may recover.


The price was RM3.20 in early 2016. With most stocks traded exceeding the multi-year high, Prestaring may have potential to trade higher if their profit recover.


The company said,..... The Company viewed its lower profit margin for FY2016 as a short term effect as business conditions in the reporting year were adversely impacted by the delay in several high margin businesses especially in Training and Certification........

Dividend.
The Group continues to maintain a minimum of 50% profit payout dividend policy. They normally pay 4 times a year. Current dividend yield is only 1.2% because of the drop in profit, but as per the forcast made by various analysts, we can expect more than 2% dividend yield for 2017 and onwards.


Price is stabilizinh and steadily on the uptrend



DEMERITS
High PE Ratio
If one would to look at the PE ratio, he may stop reading. PE Ratio is more than 100x, that is why I didn't put in the beginning. LOL.
Based on the many forecasts, it will drop to 20x within the next few years due to strong earnings growth.


Lower Profit and Lower Margin
Past few quarters their profit dropped a lot. Not sure how they can recover.


Delay in projects.
As usual, somehow many projects will be delayed due to unforeseen circumstances. Any delay may cause the delay in profit recognition and impact of stock price.


NOTE: This is not my ususal stock sharing. It just happened I saw Alibaba and potential April signing catalyst. With the 50% dividend payout, it provides some support to share price in case something goes wrong.



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Reading Material
Statement from the company......
Driving two landmark projects for the nation
Prestariang was awarded 'Sistem Kawalan & Imigresen Nasional' ("SKIN") ~ a Public Private Partnership project valued at RM3.5 billion to be implemented over 15 years through Build, Operate, Maintain and Transfer method. SKIN will be a pathway for Prestariang into servicebased platform businesses by developing competencies in emerging technologies such as big data analytics ('BDA"), Internet of Things (IoT), cloud computing and cybersecurity. At the same time, SKIN will also be a beacon to attract talents while providing a dynamic environment for students under our Talent business to gain leading-edge industry
experience;

And

eduCloud ~ Prestariang signed an MoU with Alibaba Cloud and Conversant Solutions Pte Ltd in January 2017 to jointly build an integrated service-based platform that will transform the digital education landscape in Malaysia. EduCloud will be a single platform to deliver all activities linked to education and related services. These cloud-based services will include campus management, teaching and learning, entertainment, digital payment, and many other services and online applications.


Saturday, April 8, 2017

Prolexus Bhd



Prolexus Bhd
Share price RM1.47
Trailing 12 months (TTM)
P/E ratio: 9.54x
Dividend yield 2%

Actually wanted to post on Thursday night but I saw there is a big block of seller at RM1.45 and price dropped to RM1.41, so no urgency because i only completed 90% of my writing. But Friday suddenly it cleared the RM1.45. So fast fast post in my facebook this afternoon saying tonight will post on this. Afraid people want to goreng.

Merits
PE Ratio not too expensive.
Strengthening of USD.
It was in Fong Siling’s 30 recommended stocks end of 2016.
In sifu ICON’s comment….. Anyway, my interest in this topic is limited to apparel, furnitures and cling wraps because I have Poh huat, latitude, Prolexus, thong guan, etc. Wake me up when SoftBank starts making those products in US. Zzzzz
Recommended Buy by AMMB with Target Price of RM1.61 (March 28, RM1.36). Maintain BUY: Relatively stable margins seen for Prolexus for remainder of FY17. Maintain buy with a lower fair value of RM1.61: While we believe Prolexus Bhd deserves to trade at a premium to its three-year average price-earnings ratio (PER) of 8.2 times, we lower the PER peg to reflect Prolexus’ moderated growth outlook. Valuations are rolled over to financial year 2018 forecast (FY18F), from FY17F, as we lower our PER peg to 10 times from 12 times.
Yesterday the warrant up 7% but the mother dropped by RM0.01. People may got some good news and buy the warrant first. Not sure.
Saw a comment from someone that Nike reporting good sales......
.................
............................
Yipman Wow.. Excellent growth of NIKE. QoQ and EPS keep on increasing.
 Does this reflect PRLEXUS coming result?
I trust the data below will prove it to you.
NIKE, INC. REPORTS FISCAL 2017 THIRD QUARTER RESULTS
• Revenues up 5 percent to $8.4 billion; 7 percent growth on a currency-neutral basis*
• Diluted earnings per share up 24 percent to $0.68
• Inventories up 7 percent as of February 28, 2017
NIKE, INC. REPORTS FISCAL 2017 SECOND QUARTER RESULTS
• Revenues up 6 percent to $8.2 billion; 8 percent growth on a currency neutral basis*
• Diluted earnings per share up 11 percent to $0.50 compared to prior year
 • Inventories up 9 percent as of November 30, 2016 ........
.....................................
As mentioned in my blog earlier, they have this two new plant/mills commencement in 2017 in Johor and Vietnam and joint-venture with Taiwan company. This will add in additional profits for them.
If they can increase some profits, add in the contribution from new plant/mill and Taiwan joint venture, the prospect should be bright.
Many of the stocks have gone up crazily in the past few months, but Prolexus not yet move (belum jalan lagi). Any down turn in the market, this may not drop so much if not much change to their profits.
Demerits
PE Ratio is not very cheap, with potential warrant dilution of 31%.
Latest quarter result not so good, and may be a sign of slowing.
This year no major sport events like Olympics, World Cup or European Cup to boost their sales.
Have a nice weekend.

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Dollar Cost Averaging and PEGGY Method. Sharing info on cheap (low PE) company with high growth, low Gearing or Net Cash and High Dividend Yield.

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