YOCB - SLEEPING BEAUTY AWAKE?

YOCB (5159) Yoong Onn is a leading integrated designer, manufacturer, distributor and retailer of home linen and bedding accessories in the region.

Founded in 1966, Yoong Onn has evolved from a home linen trading business to a full-fledged home linen and bedding accessories provider with a approximately more than 1000-strong staff force currently.

Yoong Onn’s products have enjoyed astounding success overseas, and are currently exported to the following countries: Singapore,Taiwan,Australia,Brunei,Fiji,Indonesia,Japan,Mozambique,New Caledonia,Turkey,Vietnam.

WHY I say YOCB is sleeping beauty? Because the business itself are very much related to sleeping. Yet Its so beautiful ! The price is cheap, the company is great, what more to say? Its not yet meletup !

Lets us look at the stock movement. To see how pretty is this sleeping beauty. From head to tail. 

Ever since IPO price 0.88, listing on 23/12/2009, YOCB reach highest prices on 27/6/2014 which is 1.39 and closed at 1.30. The price have come down during August which I expect due to surprising lower profit on that quarter. Price lowest at around 0.80. Recently its start to climb back to 1.0 which attract my attention very much. Is it the sleeping beauty awake !?

Lets us look at the body of YOCB sleeping beauty,

Wow, its never get sick and always stay healthy ! YOCB must be exercise a very good business management ! More to say, this year result is astonish ! Beside consistently making profit, its give dividend very often. Dividend Yield return at least around 4% which is considered very high yield now. 

Is that all? Lets us see inside the stomach of this sleeping beauty whether she very hungry?

Wow ! Cash is more than bank borrowings ! Its a nett cash company with zero risk ! Trade receivable have 59 million and trade payable only 16 million, YOCB still have many cash to collect ! This sleeping beauty is very full and not hungry at all. We don't have to feed her already :)

Any more surprise from YOCB the sleeping beauty? 

Hey hey, the retained profit is higher than share capital ! This sleeping beauty is ready to born baby bonus already ! If you love her, you will surely fall in love with her ! Check back history, she already gave birth before ! 

BONUS ISSUE OF 1 BONUS SHARE FOR EVERY 3 EXISTING SHARES on

14 Oct 2011

Since YOCB have giving bonus record, its pretty high chance to see YOCB give again !


Anymore surprise? 

Oh that's about export once again, we can see that last year foreign exchange rates show in 2014 Annual report for USD is around $3.21. But now? its about $3.80 ! SGD 2.8 ! How much different would it be?

USD around 18% increase and SGD around 8%.

Its will definitely benefit YOCB when RM is depreciating, exactly same like others furniture company !

So is buying now consider cheap? 

As of today price around RM 1.08, 4 rolling quarter PE at 9.0

Comparing with other furniture stock, mostly are over PE 10 to 15 at least. 

Lets us do some very simple projection once again, exactly same like previous post on JHM, 

Financial Year 2015

First quarter           3.3 Mil = 0.0207 EPS

Second quarter      6.5 Mil = 0.0412 EPS

Third quarter         6.7 Mil = 0.0423 EPS

Coming quarter     2.0 Mil = 0.0125 EPS  (I put very low to show if result bad still worth how much)

Total EPS year 2015 = 0.01167 EPS

0.1167 EPS x PE 10 = RM 1.16

0.1167 EPS x PE 12 = RM 1.40

0.1167 EPS x PE 15 = RM 1.75

What if coming August result is 6 Mil or more? If its 6 mil or more, YOCB at least worth  RM1.75 - RM 3.0.

As a conclusion,

1. YOCB is sleeping beauty that just awake.

2. Company are doing export business which got earn from USD appreciate as well.

3. Current trend of goreng stock are onto USD related, exported related.

4. Price still cheap..

5. Quarter result never make losses.

6. Nett cash company.

7. Potential to give bonus.

8. Its much better than many other furniture stock at higher valuation.
9. Its result potential to be good, that's why price got action now!

My first Target price RM 1.30, second target price RM 2.0, long term RM 3.0 if result maintain good. 

JHM - The Shining Of High Brightness LED

JHM Consolidation Berhad (0127) is listed in my 40 good fundamental stocks picks on 05/07/2015, and shared in my telegram group, because of several simple reason. And today I am very happy because its start meletup !! Why we should continue put more focus into this company?

JHM currently focused on the design, development and provision of the following categories of MECs:-

(a) Components related to High Brightness Light Emitting Diode (“HB LED”);

(b) Fine pitch connector pins

(c) Other electronics component

Anything special about this company? Yes, the increasing demand of LED is the main reason to kick this company to move to recent new high. 

Lets look at the price movement first. 

Ever since the IPO price at around 0.40-0.45 year 2006, it move to highest around 0.63 and unluckily face the storm of 2007-2008 financial crisis and hit this company badly in their profit and recent years slowly recover back and this year will be their brightest shining year of 2015.  

This can be assured by looking at annual report 2014, chairman statement viewing on financial year 2015 outlook. 

Without explaining much on that sentence mean, we look closer to fundamental data. 

In year 2006 when they first listing, their annually net profit is standing at about 5.845 Million. EPS 6.06 cent. Estimated that time shares issues is around 96.45 Million. As of today, JHM total shares have increased to 123.00 Million, which still consider little. Why I highlighted this so much? Its important to see the potential of "MELETUP" and comparison with other similar sector, similar size of company.

As you can see, JHM and MMSV have many similarities, both are doing LED related and both have little shares inssued, and most probably JHM might outshine MMSV in futures because the shares issues is much lesser than MMSV !! PENTA also have many similarities as well ! 

Lets back to some calculation: 

Previous quarter result of JHM show flying record after so many years of struggles, now with the rising demand of LED, JHM finally have good result. Do not forget that in year 2006, JHM annual profit is 5.845 Million. In year 2015 single quarter, its have 1.571 Million. 

So what does it mean? Since today the price actions, the chairman confidence, tell us below:

With projections of profit for coming quarter result maintain at average only, 

 (however chairman think it will do better)

Year 2015

First quarter (May 2015) 1.571 Million profit = 1.45 EPS

Second quarter (August 2015) 1.5 Million profit =  1.21 EPS (projected)

Thirds quarter (November 2015) 1.5 Million profit = 1.21 EPS (projected)

Fourth quarter (Fedruary 2015) 1.5 Million profit = 1.21 EPS (projected)

Adding up of full year EPS = 5.08 EPS Its almost closed to IPO 2006 EPS 6.06. 

By calculate simple PE 

5.08 EPS x 10 = 0.508

5.08 EPS x 15 = 0.762

5.08 EPS x 20 = 1.016 !!

Peers such as MMSV are trading at PE 10.77 rolling 4 quarter, PENTA at PE 14.60.

Therefore I would say that JHM should trading at above PE 10 which is at least above 0.50 !  

What if the result is much better than first quarter !? It will meletup just like what MMSV and PENTA did!! 

As a Conclusion:

1. JHM is another very classic LED related company that will outshine in Bursa Stock Market. 

2. Its obvious that coming quarter result will be good by looking at today price movement.

3. Its have UMA, DNA, most of the stock that call for UMA have extra ordinary power. 

4. Based on simple PE calculation, JHM still cheap and its will fly high. 

5. JHM shares issues is very little, therefore it will definitely move up !

6. In the month of big sell down in June, JHM did not shy away at all.

7. Its time heading to previous new high RM 0.63 without any doubt.

8. Today I walk into lighting shop, and the salesman tell me choose LED ! Save energy ! 

My First TP 0.50, Second TP 0.63, Third TP 1.0. 

Selamat Hari Raya Aidilfitri YEAR 2015