MINETEC - Blasting and Meletup the Bursa Market

MINETEC started as a drilling and blasting service in 1977 by the founder, Mr. Michael K S Chin, has since developed into one of the largest aggregate mining business in Malaysia. To date, Minetech Resources Berhad (MRB) operates an expanding network of 9 quarries around Malaysia and overseas. With over 30 years of industry experience, MRB has also positioned itself to provide quality and specialised civil engineering works including drill and blast services, earthworks, road pavement projects and building construction.

Why this company caught my attention? It's again very much related to construction theme and when I zoom detail onto this company, it's seems very interesting and I decided to invest onto it.

Although the company making a few quarter of losses, to me it's very normal because construction company always have their bad times and I hope it's good time coming soon. However look at their latest balance sheet, it's nett cash company !! RM 30.512 million cash while debt total around RM 19.33 million. 

30.512mil-19.33mil = RM 11.182 nett cash / total share issued 665.094mil = net cash per share RM 0.0168

Not much PENNY STOCK are net cash plus their business prospect are looking healthy and potential to growth when all the big projects roll out !



Imagine with so many quarry and premix at Most important Selangor state, MRT projects, highway will for sure need those product in futures.

We all know that MRT2 projects will be awarding soon, and the Tunneling job worth a big value of RM 12 billions. souce: http://www.thestar.com.my/business/business-news/2016/02/11/bidding-starts-for-mrt-2/

*Apart from having a more expensive tunnel, MRT 2, also known as the Sungai Buloh-Serdang-Putrajaya line, will offer more main civil engineering and construction packages from the first line.

Is this all really going to benefit MINETEC? Looking at MINETEC, they are specialize in drilling, blasting, infrastructure works, rock drilling ! What else company can do all this? Yes it's MINETEC.

According to many professional in construction field, before starting this tunneling projects, soil stabilizing job needed to be done and who can do? MINETEC again !!

I can't explain too much on how much MINETEC will indirectly benefit from those big projects, it's all on future outlook and own views.

Lets looking some other reason that Buaya maybe interested to goreng this stock. A few good result here:

1. Share issed only 665 mil, 58% 385 mil floating on market only (easy to move)
2. Got warrant at price only RM 0.025 !! Exercise price RM 0.15 and expired Nov 2019 (still many years)

Buaya will definitely take the opportunity to collect the warrant because it's so damn cheap. And once they push the mother to above RM 0.10, it's easily turn double or triple for the warrant. (wild guess) I saw this happen to MPAY few year backs.

Looking at technical chart part, some collection and volume appear lately. I strongly believe this stock going to Meletup very soon. And it's very lucky we caught it before it Meletup. 

First time closing at RM 0.08 cent strongly after almost one year (about 9 month price below RM 0.08) , is it indicating a strong will of going higher? Why those buyer at below 0.08 don't want to take profit immediately?

DID YOU SEE WHAT I SEE or YOU still can't see ??

Something is going to Blast and Meletup kuat soon !! 

HSL - GOOD BUSINESS 30 YEARS AND BEST 2016

Hock Seng Lee Berhad (HSL)'s origins date back to the mid-1960s when the three eldest brothers of the Yii family established what was principally a sand dredging and land fill operation.

The company was named after the first timber dredging vessel, Hock Seng Lee which the brothers purchased to start their partnership. Hock Seng Lee sounds like "good business" in the local Hokkien dialect and indeed it was.

Hock Seng Lee Development Company Sendirian Berhad, as the company was first known, grew rapidly and was incorporated in January 1979.

For more than thirty years, HSL has taken on land reclamation projects of increasing size and complexity acquiring complementary expertise in soil improvement works, shore protection, drainage and water reticulation activities.

On 10 June 1996, HSL was listed on the Main Market of Bursa Malaysia on the construction counter and it has been profitable every year since its listing.

It has diversified into a wide range of civil engineering and construction works, including prestigious road works and new township developments, tunnel boring and complex infrastructure projects.

Today, HSL some over 800 full time staff, thirty per cent of whom hold tertiary or technical qualifications. Its headquarters is in Kuching and its operations extend throughout the state of Sarawak.

Lets look back on the company price performance, ever since after the shoot up on 5 May 2013, it has been super huge sideways consolidate until last week 18 March finally super "strong breakout" with super volume. There are few things to highlight why this strong breakout happens:

1. Manage to increase order book to triple ! Worth Roughly RM 1.82 Billions Order Book
RM 58 Mil + RM 563 Mil + RM 1.2 Billions = RM 1.82 Billions
Add existing order book RM 621 Mil = RM 2.44 Billions Order Book

2. Bank Research upgrade to BUY  from HONG LEONG Research (RM 2.53) and MAYBANK Research (RM 2.40) - Both calculation seems not yet factor in the latest RM 1.7 Billions Pan Borneo Projects. 

After getting latest awards PAN BORNEO for RM 1.70 Billions, I am expecting more BANK research house will upgrade to BUY due to high order book and high potential to get more awards again.

3. SARAWAK ELECTION is almost around the corner ! Expecting APRIL - MAY

Why is this important? Although everybody think the same party will win, nothing to be surprise, but it can be a extra vitamin to kick this stock move higher. Trader likes story and theme related. Not just HSL, other Sarawak counter will possible goreng up before ELECTION or After election. This can obviously see from 3 years back, after 5 May 2013 Election, price shoot up immediately !

That's is jut not convinces enough for a real investor because construction company usually very high in debt, therefore many earning usually gone into bank interest payment. However extra bonus given investor to consider HSL is because its 100% Debt free company, and Cash Rich ! 

Besides construction, HSL also developing housing project, latest project seems doing pretty well:

http://www.lapromenade.com.my/development/

High end housing selling each roughly RM 1 Mil, 44 units = RM 44 Millions revenue. (80% sold)

Still have other mid range housing if you check their website.

Lets us sneak peak some on going project: 

I think, with their current order book, and new order book, HSL seems going to continue GOOD BUSINESS until Years 2020 !!

With such, as a conclusion: 

1. Very strong History Construction Company In Sarawak

2. Financially sound and it's a Nett Cash company, Debt free

2. Dividend payout ratio about 20%

3. Latest Value of projects in hand roughtly stands at RM 2.44 billion 

4. Expecting to continue to be benefit from Pan-Borneo Highway Project (RM 16 Billions Total) 

5. Expecting to continue benefit from Kuching sewerage project worth RM 4 Billions that would be implemented in 8 phases. (1 & 2 phases awarded to HSL) 

6. After listing of 20 years, every quarter make handsome profit

7. Very strong relationship with Sarawak Government

8. Best Sarawak Election Theme Counter, latest April-May

9. Finally breakout with strong volume closing high at RM 2.10

10. Major Bank upgrade BUY with high TP RM 2.53, RM 2.40, may more will upgrade. 

My personal target for short term RM 2.20, mid term RM 2.50, long term to be re review RM 2.80.

Logic Trading Analysis(LTA) - Watchlist for March 2016

My FACEBOOK PAGE : https://www.facebook.com/logictrading.analysis/
TELEGRAM CHANNEL : https://telegram.me/ltachannel
To join groupchat : Msg me your hp number to my page

After the big fall of January till Early March, it's time we shall come back to pay attention to our stock market after DJIA posting strong gain pointing upwards, which will definitely kick all other country market to be more positive, and of course to FBMKLCI as well.

Refer to here:
http://www.marketwatch.com/story/dow-breaks-above-bullish-chart-level-first-time-this-year-2016-03-11

I not here to explain how overall market outlook will be, just take note if DJIA suddenly close below 17000 again this week then we may need to revise our plan. Or else you may pay attention to some of the stock pick below.

Since RM getting stronger, export theme about USD over, market struggle to find new theme or stock worth to collect or goreng stock, obviously market shy away for almost 3 month. BUT I here to tell you, take note on some of the stock below which might have potential to go higher. (I am not SIFU, if I wrong, I not take any responsibility, scolding are not welcome)

One of the theme may come next shall be Construction related (may just last a short time). As we already spotted some of the construction counter begin action.

Refer here: http://www.thestar.com.my/business/business-news/2015/10/26/construction-sector-main-beneficiary-of-budget-2016/

I am expecting more projects such as the Refinery and Petrochemicals Integrated Development (Rapid) in Pengerang, Johor, the Pan Borneo Highway, mass rapid transit 2 (MRT2), light rail transit 3 (LRT3) and PRIMA housing, flood mitigation will be awards and start soon. (many area kick start selling PR1MA housing project)



Construction index have been long depressed and sideways consolidated for half year, and it's getting closer to 200days moving average.

Stock below are some consider good construction counter we may look see for short term.

KIMLUN - (one of my Meletup stock picks on last year) ALL major bank upgraded to further buy and higher target price after getting PAN BORNEO PROJECTS. I believe KIMLUN will bagged few more projects soon ! Upgrade to BUY, TP: RM2.23 !!

Refer more about KIMLUN here: http://klse.i3investor.com/blogs/hleresearch/92904.jsp
http://klse.i3investor.com/blogs/sin_chew_hot_stocks/92943.jsp

This stock picks was shared in premium group during 3/12/2015. Already more than 20% profit.

GAMUDA & GAMUDA-WE -GAMUDA have passed 200 days moving average after 9 month of consolidate. It's very high possible to goreng towards RM 5.0 soon looking at latest list GAMUDA-WE demand. GAMUDA-WE (closed RM 0.965) exercise price RM 4.05, equal to RM 5.015.

Due to long expiry date till year 2021, high premium of GAMUDA-WE are expected to make it move above RM 1.0 very very soon (maybe Monday). Note that if market did not crash or fully recover on year 2018 onwards, GAMUDA will confirm go above RM 6.0 due to heavy construction works towards national goal of WAWASAN 2020, another things is before 2018, Malaysia must ready for better infrastructure, greater Kuala Lumpur to cope with TPPA.

(If GAMUDA reach RM 5.0, warrant without premium should trade at RM 0.95, but due to long expiry date, normally 10-30% higher premium will be given. Therefore Gamuda-WE will be roughly between RM RM 1.045 - RM 1.235) Remember this is based on market stable and mini bull scenario, if bear come attack again all will diminish, don't ever act like crying baby and complaining the tips doesn't work ! Do your own homework !

 

SUNCON - After the big spike last Friday, it has move into uncharted territory. This new IPO never move much since last year IPO. However something important to note that which is During the big fall of January-March 2016, it continue moving sideways and totally did not fall. This is obvious and strong signal that something good is coming. I assume it can go further. Maybank TP RM 1.65. Whether it will have some correction before Meletup further or straight Meletup all the way are up to the market decide.



GKENT - Another construction that still doing well in year 2016. This month will post its result, if good then will first challenge RM 1.70, then next RM 2.0 should not be any problem. And of course if bad then will slowdown its uptrend movement. But with its high order book in hand, this counter remain strong in outlook.

Refer some here:
http://klse.i3investor.com/blogs/vincenthkb/89405.jsp



MITRA & MRCB & GADANG - All seems potential to move higher. Remember to put in watch list !

After sharing Construction stock picks, some other stock picks that in my watch list are such as: 

TAANN - I been telling about this stock in groups when it's below RM 4.65.  I am expecting it to hit back RM 5.0 soon due to free bonus of 1 : 5 coming soon.

HSI-C17 - This is highly speculative and super high risk call warrant betting Hang Seng Index up in near term. An overnight of super DJIA +218.18, HSI FUTURES +331.0, I guess Monday gonna gap up at least RM 0.38 - RM0.40 (and I already brought it :)). If DJIA wanna big show one more day up, then this HSI-C17 and other HSI call warrant gonna Meletup so damn kuat. But please, it may not work out right totally and if you don't know how to trade, stay away and don't touch and lose and cry baby. Monitor DJIA futures often. 

AAX, AIRASIA, TUNEPRO - This 3 company are best performer after February result release. You cannot ignore this company because some people

You can find people are almost want to 

 Sell Your Car, Sell Your House. Time To Sai Lang for AIRASIA (JOKE)
Refer here: http://klse.i3investor.com/blogs/icon8888/92726.jsp 

I did not give a very high target price but RM 1.80 and RM 2.0 are achievable. This is simply because turnaround from previous quarter with lower oil cost and next quarter will be reporting on Feb, March and April result, which is also peak season for travelling especially during Chinese New Year. During this 3 month oil price remain low and I can notice many friends start travelling to Japan and other country already !



AAX - This would be much more exiting compare to AIRASIA because of cheap price and finally turnaround to profit after so many quarter since IPO at RM 1.20. Looking at the volume never been so huge already know that the demand are extreme and expectation towards higher price are very high. I looking at a target of RM 0.40.



TUNEPRO - Riding the wind of AIRASIA and AAX, start to see big volume and very low price too. Latest result show very stable improving income which are consider a very safe entry. My first target at RM 1.50 which is also very conservative.

RSENA - The strong volume spike on Thursday hint something good is coming, guess they have finally find the right company to be acquire. Even they cant find any within 3 years time, there are still cash RM 0.46 per shares in account. If they able to find, then definitely will unlock this company value and further higher to go !

 -
(from RSENA Annual Report year 2015, it's not hard to find, it's whether you put effort to read and understand it or not.)

GENTING, GENTING-WA & ASTRO and some other INDEX stock shall move higher due to FBMKLCI gonna break 1700 level once again.


Are you ready to GORENG?

GORENG  TETAP GORENG

By
Logic Trading Analysis

KIMHIN - MONSTER ALIVE FROM EARTH

KIMHIN (5371) have come into our coverage after we monitor the price around RM 2.00 and its get our attention more now. We been mentioned this stock since last week 18/11/2015 in our telegram free groups, today close at RM 2.44.

After I mentioned this company, I quickly swim out from middle of the sea and go to visit this one of their factory past weekend.

(By looking at their company outlook, well maintain even the flower also nice, it's a sign they have lots of money to do maintenance, company are doing well) 

KIM HIN INDUSTRY BERHAD, is a very old and strong company, its have been go through at least a few generation already. What business they do you should google yourself. I here to share something might cannot google out. And I believe it's time for KIMHIN to super shine once again.  Lets look at the stock price:

In 90's, KIM HIN was a super expensive stock that value more than RM 10. From the chart I manage to get, the price show during 1995, it was trading at RM 18.00 !! Now you should know, how why I call this a Monster. And it's awake from the earth after long buried.

Why this Monster suddenly awake once again? This you must read a bit from this news yourself:

Kim Hin acquired United Kingdom-based Norcros Industry Pty Ltd, one of the major importers and distributors of Johnson Tiles in Australia, for some RM6.9mil last year.

Refer :
http://www.thestar.com.my/Business/Business-News/2015/09/01/Kim-Hin-to-promote-Johnson-Tiles/?style=biz

Lets get back some picture for my visit first before I explain more detail why this Monster may worth a look seriously. Over the weekend, staff are still working, and do you see that, it's clay or soil that can turn into $$$$$$. Those are very low cost stuff and its locally available, and exported in USD when turn into beautiful MOSAIC ! Interesting !

Busy busy busy ! So many staff doing work in the weekend, many businesss??

I quick quick ask one of the staff, recently very busy ka? Weekend masih kerja. The staff just reply yah many kerja. Hahahahaha.. Thanks his hardworking contribution.

As the Director, Chua said group earnings are expected to improve with the falling liquefied petroleum gas (LPG) price, which had dropped to RM2.37 from RM2.50 per kg in June and RM3.50 per kg before the plunge of global crude oil prices late last year.

As the company’s Kuching plant consumes an average of 800 tonnes of LPG a month, he said the fuel price reduction would translate into savings of some RM10 million a year, thereby boosting its profit margin. The fuel expenditure made up about 35% of the plant’s operational costs. Save RM 10 Million = Earn extra RM 10 Million !! Equal to last quarter result RM 10 Million !! That is a big saving !

Talking about their doing export business, look like busy loading their stock up to container, good business yo? Let us have a quick testing, how much KIMHIN should worth : 

By looking at latest 2 quarter result,

1st quarter RM 11 Million               = EPS 7.86 CENT
2nd quarter RM 10.6 Million           = EPS 7.18 CENT
3rd quarter (upcoming) RM 7 Mil    = EPS 4.44 CENT
4th quarter (next coming) RM 7 Mil = EPS 4.44 CENT

(I put lower estimate for Third and Fourth quarter just to not too over positive let say a RM 7 Million is good enough:)

Total EPS = RM 0.2392 Cent. By PE 10 = RM 2.392 !! If PE 12 RM 2.87, If PE 15 RM 3.58.

This estimation are already put their result as low as RM 7 Mil, what if upcoming result got more than RM 10 Million??? 

Another things are their retain earning are very high ! Already can give 1:1 Bonus if the company want to !

As a conclusion after our visit and finding, 

1. KIMHIN business back on track and expanding fast.
2. KIMHIN doing export business benefit if USD up.
3. Trading at low PE now but company growing.
4. Nett Cash Company, very low small debt, huge cash and other investment.
5. Fuel and gas price drop, help lower a lot cost.
6. I just brought RM 6k of their mosaic for house renovation.
7. Balance sheet show ready for BONUS issues ! Wish they give !
8. Major development are still in progress, mosaic are still major building material to be use.

My first TP RM 2.80, second TP RM 3.50, third TP RM 4.80 (pe 20), based on weaker result estimation. 

If post better result, KIMHIN this monster will meletup kuat !!

Where is our FBMKLCI heading ?

Well, this is a very big question for all Malaysian trader. Today I like to shares some of my views again on our FBMKLCI, our Bursa Malaysia Stock Market. Conclusion at the end of this writings. 

Let me use my own method to check on Top 30 Index counter performance first :

Ambank      NEGATIVE Financial year 2016 1st quarter poor than 2015

ASTRO      POSITIVE         Financial year 2016 1st quarter better than 2015

AXIATA      POSITIVE       Financial year 2015 2nd quarter better than 2014

BAT              NEGATIVE Financial year 2015 2nd quarter poor than 2014

CIMB      NEGATIVE Financial year 2015 2nd quarter poor than 2014 

DIGI      NEGATIVE Financial year 2015 2nd quarter poor than 2014

GENM      NEGATIVE Financial year 2015 2nd quarter poor than 2014

GENTING    NEGATIVE Financial year 2015 2nd quarter poor than 2014

HLBANK     POSITIVE         Financial year 2015 4th quarter better than 2014

HLFG      NEGATIVE Financial year 2015 4th quarter poor than 2014

IHH              POSITIVE         Financial year 2015 2nd quarter poor than 2014

IOICORP     NEGATIVE Financial year 2015 4th quarter poor than 2014

KLCC      POSITIVE         Financial year 2015 2nd quarter poor than 2014

KLK      NEGATIVE Financial year 2015 3 quarter poor than 2014

MAXIS      NEGATIVE Financial year 2015 2nd quarter poor than 2014

MAYBANK POSITIVE Financial year 2015 2nd quarter better than 2014

MISC         POSITIVE Financial year 2015 2 quarter better than 2014

PBBANK POSITIVE Financial year 2015 2 quarter better than 2014

PCHEM      NEGATIVE Financial year 2015 2 quarter poor than 2014

PETDAG       POSITIVE     Financial year 2015 2 quarter better than 2014

PETGAS       POSITIVE         Financial year 2015 2 quarter better than 2014

PPB              POSITIVE         Financial year 2015 2 quarter better than 2014

RHBCAP     AVERAGE         Financial year 2015 2 quarter average with 2014

SIME      NEGATIVE Financial year 2015 4 quarter is poor than 2014

SKPETRO   NEGATIVE         Financial year 2016 1st quarter poor than 2015

TENAGA      NEGATIVE Financial year 2015 3rd quarter poor than 2014

TM              NEGATIVE Financial year 2015 2 quarter poor than 2014

UMW      NEGATIVE Financial year 2015 2 quarter poor than 2014

WPRTS        AVERAGE         Financial year 2015 2 quarter poor than 2014

YTL          NEGATIVE Financial year 2015 4 quarter poor than 2014

(when i do this, I just glance very quick, mistake is possible)

17 NEGATIVE result, 11 POSITIVE result, 2 AVERAGE result. 

This show that our TOP 30 giant index link counter are mostly not doing great. It's tell why our market start to fall right after all May quarter result released. Will this company recover in coming month? I felt very unlikely !! 

Let us look at FBMKLCI daily chart. hanging around 1589.16. There is one very big volume down candle happen, a big gap up and close red on 1/9/2015. For me, I think this is a deadly candle It's very hard to be able to climb above this candle, which is 1660.22. 

What weekly chart say? I only can say, I saw two very big black down candle. It's telling me there have been 2 week, that index fall so badly. If there is another week big black down candle, I am pretty sure, our FBMKLCI is hopeless already, and very very high chance to break 1500. Why all this happen ? Just because of poor result? No, it's too many bad egg spoil the soup.

Lets look at our iShares MSCI Malaysia ETF that listed in NYSE Arca.

The iShares MSCI Malaysia ETF seeks to track the investment results of an index composed of Malaysian equities.

1. Exposure to large and mid-sized companies in Malaysia
2. Targeted access to 85% of the Malaysian stock market

3. Use to express a single country view 

And you see what happen to its price. 52 week high at 16.15. Now only traded soon half at 9.64, last Friday drop another 3.5%. It's express a very bad view for Malaysia stock market. . 

Let us look at our USD/MYR, it's MELETUP and break new HIGH ! Wow ! 

What will this impact to our stock market? Very obviously, foreign fund will continue running away. Our cost of living will also MELETUP ! Food, imported product, many products price will increase at least 10-20% ! We just have GST 6% few month back, that time almost all product price increase 10-20%, now second round ! It's will impact big for lower income people. And you have to think seriously, did your salary increase even 5% this few month? 

I not yet even mentioned about Interest rate, China economy slow down, Political problem, Country Debts, which all seems to be negatives to us. 

Until here, I have my conclusion that, I think our FBMKLCI, and our stock market are seriously doing very badly because:

1. Most of the index counter have poor result. 

2. Technically index are very bearish. 

3. RM depreciate too fast that cause many problem.

4. Many others big issues will impact Malaysia Economy.

5. Foreign fund have no reason to stay.

6. Government fail to improve efficiency.

What we can do with our stock market ? Still any way to trade ? It's covered in my Facebook and telegram group chat. Welcome to add me. 

My short term target on FBMKLCI at 1500, medium 1400, bottom if worst happen 1100-1300. 

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