Disclaimer: This is my personal logic trading analysis blog that show my own personal analysis. All information provided here are for sharing purposes only. The author should not be held liable for any informational errors, incompleteness or for any actions taken in reliance on information contained herein. Buy at your own risk.

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Tuesday, April 18, 2017

MLGLOBAL - Quality Service in Construction Design and Build

Today will be sharing this company as many might not yet notice the potential of this company:

MLGLOBAL BERHAD (7595) Shariah Compliance,
home page : http://www.mlglobal.com.my/

To get into detail quickly, we cut the introduction from their website:

ML Global Berhad (“MGB”) was first debuted to the market as a roof tile product manufacturer. Throughout our business expansion journey, we have successfully diversified the Group’s business into project management and construction to enhance our value proposition in the market.

Notwithstanding that, MGB had on 14th September 2016 entered into a Shares Sales Agreement for the acquisition of the entire issued and paid up share capital of MITC Engineering Sdn Bhd (“MITCE”) for a purchase consideration of RM300 million (“Proposed Acquisition”). 
The newly acquired subsidiary MITCE was an established construction player that had accumulated its track record in building high rise and landed residential properties as well as commercial properties for more than 10 years.

From line above, one important msg is that MLGLOBAL has already transforming into a construction company since last year end. Which many might still not familiar with this company simply because not much news on it. Here I come to remind you :

So if you quick enough, actually MITEC was actually LBS construction arm, which mean most of the LBS project built by MITCE. In case you don't know what is LBS, here I show you the chart: 
Chart can easily tell LBS (5789) over the years, have been moving strongly up after crisis of 2008. A very strong and prominent property developer in Malaysia. 

It's still very normal up till here you can't see any future potential or anything is interesting about MLGLOBAL, because it's not a goreng stock, it did not have a lot of news for you to understand. 

Lets make it simple, we check some fundamental of this company first: 

We already see obvious change in revenue however not yet see any profit for the latest quarter. That's again causing investor lack of interest. Here I share with you, there might be something others have miss out in this company ! 

From the latest quarterly result report, actually there are few one off expenses that causing the company not showing profit. this is still not as important as below:

The contribution from MITCE only show 1 month result in the latest quarter result !!

Here we share how we see the potential earning in May result: 
From the past many quarter result, 
Averagely each quarter make RM 10 million Revenue. 
Latest quarter result make RM 60 million Revenue (with only 1 month contribution)
Which mean RM 60 million - RM 10 million (average without MITCE contribution) = RM 50 Mil. 
So if MITCE 1 month can contribute RM 50 mil, what if 3 month?

Can it be at least RM 50 mil x 2 or x 3 ? 
WHICH MEAN coming MAY revenue potentially show RM 100 Mil to RM 150 Mil of revenue !
If that's right, RM 100 mil should easily see net profit of RM 10 mil which translate into EPS about 2.7 cent.

RM 0.027 cent x 4 = RM 0.108, if PE 12 it worth RM 1.296 !

How sure it can deliver good result? Looking at news, they still got RM 1.0 billion of project in hand, which can last for 2 years
Which mean averagely RM 1000 million / 24 month, each month can get RM 41 million revenue, and x3 month mean RM 123 million, which exactly correct as our estimate just now. 
This not yet include in future when they secure more project !! 

What more to say, the boss it self also buying the share lately. 

Looking at MLGLOBAL stock price, slowly trending up and I believe this company already transform into a strong construction company, therefore upside are quite positive to me. 

As a conclusion,
1. MLGLOBAL already transforming into a strong construction stock.
2. MLGLOBAL got strong backup from LBS BINA BERHAD. 
3. MLGLOBAL management team also mostly from LBS BINA BERHAD.
4. MLGLOBAL project can last at least 2 year.
5. MLGLOBAL may result potentially do better.
6. MLGLOBAL / LBS boss also buying the stock lately.
7. MLGLOBAL technically uptrend.

8. MLGLOBAL just done transformation, price did not flying much yet.
9. MLGLOBAL will be known by more people after this post.

As usual, this is a stock that potential for investment only, not for pump and dump !

My own personal "hope" for short term price to reach RM 1.30, mid term hope RM 1.80, long term hope RM 2.50. 

Above are purely sharing information that might have errors cause by human mistake, miscalculation, and for education and personal reference only.

Monday, April 10, 2017

REXIT - Another Big Opportunity For Growth

Today I would like to share my study about this company. Which is totally for own study, not recommend reader to make buy/sell or any intention to promote it. 
Just blogging about what I study lah !

Please invest at your own risk and do not try to PUMP and DUMP which is not good for market !

REXIT (0106) , this company is interesting, because it look like macam got inherit MYEG, GHLSYS 's DNA.

What's the Formula of these company DNA ?

Let me share about MYEG first:

In year 2013, that's the starting point where MYEG start to rise and forever and ever until last week still break new high. Do you ever ask why MYEG price can keep going up?

Look at the Bonus History of MYEG:

Don't look at the share price which only RM 2.0, but it's actually worth RM 52.80 if without any Bonus split from 2007 until now. It's about 10 year, from RM 0.10+ become today RM 50+. Of course the able to give bonus are mainly due to profit strong growth over the years.

How about GHLSYS ?

has even longer history in Bursa compare to MYEG.

MYEG IPO on  November 2006 at RM 0.55 PER SHARE, while
GHLSYS IPO on March 2003 at RM 0.20 PER SHARE.

If we look at GHLSYS stock price, it's also break new high, and once again don't look at current price only RM 1.55, it's once again because of many time of BONUS issue.

From IPO RM 0.20, until today without Bonus split, it's actually about RM 2.38 (if not count mistakenly.)

From what we learn here is that MYEG and GHLSYS doing pretty well in the past 10 years.

Why is this so?

What is the DNA of MYEG and GHLSYS that make them so successful? The genetic instructions in the growth, development, functioning and reproduction (bonus) in MYEG and GHLSYS are mostly based on few thing below:

1. Payment system though internet
2. Government related services
3. Almost Monopoly Business
4. Very high recurring income which mean sales repeated
5. Both are started from Ace Market before
6. Using Technology to grow business
7. Once got profit growth then Meletup
8. Able to keep on growing in market/product/service
9. Fit to latest FINTECH trend

And so what is so Exciting about this REXIT after looking at MYEG and GHLSYS? 

First we compare the stock chart:

Technically REXIT stock price has just breaking nearly 8 year high, A sign of bullishness in the making and I believe it's a preparation for all the reason below:

REXIT IPO during October 2005 at RM 0.32. We can see after IPO the company enjoy strong growth in profit and its stock price Meletup so big to as far as RM 3.10. And there after the financial crisis of 2008, caused it crash and have been big sideways until now almost 8 years, lowest we see about RM 0.30. And the price now are just only times 2 of IPO price, but MYEG and GHLSYS already far more beyond. Why? We will tell you later.

Although market crash, we still see the company able to retain its earning, and gives dividend every year without a missed !!??

From year 2006, start giving dividend until now, total dividend paid RM 0.305 almost 100% return from IPO price of RM 0.32.

The company are actually very generous in giving out dividend which become one of the reason share price din't really move up a lot because cash reserve always paid as dividend. Then why are we finding REXIT remain interesting?

Even the Bonus History only one after year 2006. Compare to MYEG, GHLSYS seem to be unmatched. If you think like that, then you will missed the future things that you might not foresee !!

We got to tell you REXIT are ready to give BONUS again like MYEG or GHLSYS ! 

Look at REXIT latest quarter result, Retained profit already more than Share capital, which enough to give at 1 for 1 Bonus. Just it's matter of time and whether the company wanna give. And look at they have so much cash of RM 28 Millions (ready to acquire new business or other company), and debt are just so little, just based on this already know this company are very safe in investing point of view !

How about do REXIT have DNA of MYEG and GHLSYS ? 

We can see MYEG big spike up after get the foreign renew permit and possible of GST monitoring system, steady profit grow, while GHLSYS although profit grow slowly (look similar like REXIT) but once they got news with ALIPAY, limit up !

What REXIT have in order to Fly like MYEG / GHLSYS? 

Actually over so many years, REXIT business has been very stable which main income from E-Cover, which is the general insurance system.

We can actually notice quite many famous Insurance company using this E-Cover platform. I myself also ask my car service centre to handle the renewal of car Insurance, and they will send to one of the insurance company listed above. This tell me that, the business are repeated every year, and we can see so many new car and motors everyday, so the business unlikely die or slow down much.

This year, finally will be game changer for REXIT to stage another stage of growth after so many years due to latest De-tariffication of General Insurance in Malaysia.

Please refer to this link to understand more:

This De-taffication will start on 1, JULY 2017, so time will tell whether market will go shout this stock or not that time. Just like how MYEG price rocket when take foreign permit and others, GHLSYS got deal with ALIBABA.

Not only that, again, we notice REXIT are doing international business !! This show that REXIT business is not limited in Malaysia only, the growth opportunity remain high !!

We notice REXIT already cover to few country now, what if they expand to INDONESIA? Or other Asian country? That will immediately see super growth rate and especially if they come out with more product and services, then can immediately sell to all these country.

New product such as LIFE INSURANCE sell online? That's something going to happen in Malaysia too !

Lets look at how 2016 annual report say on year 2017 outlook :

Company are expecting positive contribution from De-Tarffied Module in 2017 this year !!!

Seems like 2016 Annual report has already tell everyone that they have successful e-Cover system in Hong Kong, Singapore and Thailand. Interestingly Malaysia are just started this de-tariff module which is exactly right timing for growth business !

The e-Cover portal also seems to be upgraded to able to support all type of device and system, which show a very good improvement as well. (The company ins't sleep for past 10 years, they actually did something, just not yet show on balance sheet)

Another reason that MYEG and GHLSYS able to rocket up but REXIT still not ! 

It's simply due to MYEG and GHLSYS already move to Mainboard, only if move to Mainboard then big local fund can start buying (I guess), that's the reason REXIT still lag behind. But WAIT !!

From year 2013 to 2016, net profit RM 4.7+3.4+5.3+6.8 = RM 20.2 Million

REXIT already eligible to apply transfer to Mainboard ! 

For the past 4 year, REXIT has made more than RM 20 millions profit, which already enough to transfer to Mainboard. It's matter of time the company proposed to transfer, if they want to get more investor attention, they will sooner apply, maybe they are now busy with Malaysia De-tariff projects, who know after complete, by year end or next year they apply?

Once success go Mainboard, I don't think it still can stay below RM 1.0. Remember my words !

You should know that, in ACE market, there are total 113 company, not much can continue profit for the past 10 years. We can see stock like JHM, OCNCASH that listed in ACE stock has finally show successful story after bank cover on it, after strong result, and price Meletup big. 

This is something we should take note as it show the company future prospect !

As a conclusion:

1. REXIT potential to be next MYEG or GHLSYS.
2. REXIT give a lot dividend, good yield !
3. REXIT is a nett cash company.
4. REXIT balance sheet ready for BONUS ISSUE.
5. REXIT going to benefit from Malaysia De-tariff plan.
6. REXIT doing international business.
7. REXIT is ready to go Mainboard.
8. REXIT are the very few remaining good FA stock in Ace market.
9. REXIT technically just break 8 year high, look bullish

My own personal "hope" for short term price to reach RM 0.90, mid term hope RM 1.50, long term hope RM 2.80. 

By the time I write this post, I already own a little REXIT shares, and please don't try to PUMP and DUMP this stock as I want to invest peacefully.

Above are purely sharing information that might have errors cause by human mistake, miscalculation, and for education and personal reference only.

Saturday, April 1, 2017


JF Technology Berhad (0146) Shariah Compliance

Before go into details, please visit their website for some understanding of what they do here: http://jf-technology.com/company-profile/

You are highly recommended to view their website to learn more here:



We can see that the growth of IC devices demand will definitely related to JFTECH business.

I guess everyone know about VITROX, just break new high, however JFTECH has been lagged behind and its time to let everyone know !

We also learned that JFTECH are doing INTERNATIONAL business ! To make sure a company can do well, they must expand and do business beyond own country, this also we learn from IQGROUP case.  Click here to learn IQGROUP case <------

JFTECH products also protected as they have filed 9 patents which can last for 20 years. (no body can copy)
2016 Annual report also mentioned that they have product pending patents.

We have more reason to like this company: 

Why I like this company? 
Will it be next LTA's JHM or IQGROUP?

Yes this company is related to latest technology and market trend of INTERNET OF THINGS (IOT), AUTOMOTIVE, MOBILE, SEMICONDUCTOR, yes its the most explosive business as we can see from recent big uptrend from MPI, KESM, VITROX, UNISEM, PENTA, IQGROUP, DUFU, NOTION, MMSV and many more, all at least gone up 50% to 100%.

can refer: this link

(3 good reason for JFTECH growth, growing of Internet of Things, Car required more chips, and benefit from weak RM currency !)

There are totally no doubt that any stock that related to this field should can do well.

Let us look at their recent result first:

If we look at the result closely, past two quarter revenue has increase, and profit also doing better compare to last year. If coming May result also positive, going attract a lot of attention as last year same quarter are not making profit, many will see a very big % jump up in profit. So do look into this company closely.

This is also how we cover JHM (0127) 2 years ago when only RM 0.40+, when still no body really mention about it.
Read Here <------

If we comparing JHM and JFTECH we notice that both have almost same amount of share issued at 120 Million shares only. One of the very important key for share price to go up fast is small share issued, which we already see the Meletup Up from JHM.

Beside the JHM also have a very small paid up capital of RM 12 million, which JFTECH also exactly the same too !!

However a big different that JHM market capital already far away compare to JFTECH this is simply due to JHM the stock price rocket up a lot. This showing JFTECH still got big room to go up higher too !

So is the company value at high price?
Many look at the PE ratio get pissed off as it's as high as 38.56 ! However it's so wrong if you look at this way. Let me share what it should be:

First quarter net profit      : RM 1.491 mil = EPS 1.18
Second quarter net profit : RM 1.171 mil = EPS 0.93

From here, we have to estimate the future already ! We use very low profit of RM 1.00 million will do. If doing better, it's going to greatly impact the PE and stock price.

Third quarter net profit estimate   : RM 1.00 mil = EPS 0.79
Fourth quarter net profit estimate : RM 1.00 mil = EPS 0.79

Total EPS = 1.18+0.93+0.79+0.79 = EPS 2.853 in RM its RM 0.02853 per share.

RM 0.02853 it's about PE 28 if based on RM 0.80. However if coming two quarter able to deliver better than just RM 1.00 million net profit, it's expect to much lower down the PE value !

(for example if Q3, Q4 post RM 1.5 mil, total EPS = RM 0.0449. Price RM 0.80/EPS 0.0449=PE 17 only.) If earning more than RM 2.0 mil, just like what happen to JHM last year, then the price definitely Big Meletup Up.

What about its balance sheet? Any debt?

It's Nett Cash company ! Nett Cash Company always can see higher price value in stock market. Therefore PE higher also normal. As long as they can improving profit.

To make sure they can grow and got good business, we have to know who their customer. After some studies, finally we found their customer are all very familiar name:

Just look at familiar name INARI, AEMULUS, UNISEM, CARSEM, AVAGO, and many more strong leader in the market.

UNISEM (M) BHD ! AEMULUS BERHAD ! This two are familiar name as it listed at BURSA !

FORD, BMW, DELL, CANON, SAMSUNG these few are International BIG Brand and all very well-known, especially SAMSUNG that has just launch its GALAXY S8 on 29/3/2017, am sure they need a lot of test for their chip and application this round to ensure not going to repeat the S7 explosion problem. BMW 5 Series also just launch new model last week, which integrated more function and technology with their touch panel. (JFTECH specialty is doing testing of chips and sockets).

CARSEM (M) Sdn Bhd ? What is this? Let me tell you !

Yes it's effectively belong to MPI Pacific Berhad ! See the stock price rocket so much already know how strong MPI and how good business it is. Refer to here: Link

Well, how about JFTECH stock price movement?

Still not yet break previous high ! It has reach lowest at average of RM 0.55 and been sideways for almost one year. Recently we start to see volume coming in as maybe some of the smart investor start to notice this company ! It's still not yet too late as the price not yet reach previous high and the volume only started to growth active. I see the future of this company can easily surpass previous high !

Ever since listed on year 2008, it has reach as high as RM 0.86 and correction down to about RM 0.50 mainly due to the legal case. (Not due to business slow down so its Opportunity !!) According to annual report, the legal case only affect one single product, and others are still doing fine. And the legal case might possible end this year too.

What else is possible in this company? 


JFTECH still ACE BOARD, and the BOSS is looking opportunity to go MAINBOARD in future.

Read here: http://www.theedgemarkets.com/my/article/jf-technology-eyes-main-market-transfer-2018

Looking at this, we learn that recently SALUTE just move to mainboard then stock price Meletup !

This mean from now to year 2018, it's highly possible the company doing better and move to mainboard as plan ! If can move to Mainboard, the price easily up 50% !

Well we got some more info about JFTECH for you to study.:

JFTECH subsidiary's JF Microtechnology has been grand by MIDA as PIONEER STATUS, which mean they able to enjoy tax allowance ! Save cost !

Last and not least, let us view what the Boss view in coming years:

Keyword :

New product - Mean this company is not sleeping and keep growing.
IOT - The company also riding on the IOT waves.
Automotive market - One of the hotest market they capturing.
Faster Pace in FYE 2017 - Profit should can sustain or even grow fast.

As a conclusion:

1. JFTECH business are related to the most exciting sector, IOT, SEMI-CON, AUTOMOTIVE.
2. JFTECH products are very unique and owned many patents that other can't copy.
3. JFTECH are doing international business. Unlimited opportunity.
4. JFTECH nett profit highly potential to maintain or even increase.
5. JFTECH is a nett cash company, very low debt.
6. JFTECH customer from all very strong company, highly visible and sustainable business.
7. JFTECH stock price has been reach bottom and sideways consolidate 1 year and never fall further.
8. JFTECH got chance move to mainboard in year 2018.
9. JFTECH are beneficiary of weak RM, RM expecting to remain low.
10. JFTECH subsidiary got tax allowance, pioneer status by MIDA.
11. JFTECH 2016 Annual Report sound highly positive towards year 2017.
12. JFTECH just covered by LTA on APRIL!

I am sure JFTECH will be a growth stock and will shine in future with so many good reason.

My own personal "hope" for short term price to reach RM 0.85, mid term hope RM 1.18, long term hope RM 1.72. 

Above are purely sharing information that might have errors cause by human mistake, miscalculation, and for education and personal reference only.