[duit] 2017 Sunzen Biotech * 山珍·宏诚生物科技
[duit] 2017 Sunzen Biotech * 0山珍0海味在0宏诚生物科技
duitKWSPkita
Publish date: Mon, 29 May 2017, 08:19 PM
duitKWSPkita
0 69
Dear Reader,
Every year I will find at least one counter for long term investment and start to plant the seed when nobody see it.
Last year my focus was AYS Venture and proudly to say it continue deliver steady and consistent result throughout these quarters. The same selection criteria complied in Sunzen Biotechnology , hence, I will invest in it.
Happy investing
Every year I will find at least one counter for long term investment and start to plant the seed when nobody see it.
Last year my focus was AYS Venture and proudly to say it continue deliver steady and consistent result throughout these quarters. The same selection criteria complied in Sunzen Biotechnology , hence, I will invest in it.
Happy investing
Disclaimer for Duit's publication
This publication is for general discussion only. It does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser regarding the suitability of the sharing for you. If you do not wish to seek financial advice, please consider carefully whether the finding is suitable for you.
Dear Esteemed Reader,
Every year I will try to discover at least one silent stock and invest it as long term portfolio. Last year I eyed on AYS ventures (5021) when it was still silent, non active trading and price flat at RM0.275 during my article (https://klse.i3investor.com/blogs/duitKWSPkita_AYS_Ventures/88891.jsp). Thereafter it delivered steady revenue and consistent net profit in last few quarters. I like this company because of the management proven to us that eventhoughduring volatile period of ringgit currency and fluacture global steel price the company managed to mitigate it and deliver QoQ/YoY fantastic profit and dividend (humble starting) to share holders. Many investors missanalyze this counter when they scrutinize the past results because it was belong to Nirvana Group but not the newly listed steel and construction material trading business. Salute the management for impressive P&L so far.
In 2017, I discovered a company named Sunzen Biotechnology which complied my selection criteria such as long term plan, business acumen, position in the indutry by SWOT score, competency of key management but not limited to price action vs risk reward.
This article covers
1) Introduction of company
2) Fundamental Analysis
3) Catalyst
4) References
5) Conclusion
We are not strange to the name of Pfizer as Sunzen was part of Pfizer back in 1997. Today the company is specialized in the niche market of premix, acidifier, pet food, medicine, vaccine, fat powder and latest palm oil mill and trading business. After numerous quarter loss making results the company welcomed new line up of major shareholders, technical based key management as well as resterling company strategy to encompass the mission of management specialization, technical specialization and market diversification. On the necessity of the focus of food safety & security the company play an important role in the segment of antibiotic-free "green" products and the latest plant your own healthier living through "My City My Farm 2016" campaign. The company working closly with AUstralian High Commision, AUstralian Chamber of Commerce for the OzMade Liquidplant product which believe to be the key to My City MY Farm business.
Give my fullest support to Mr. Hong Choon Hau and Mr. Lim Eng Chai and we shall see biggest and most sustainable turnaround in future.
2) Fundamental Analysis
The company reported second consecutive profit on 25th May 2017 which recorded Revenue of RM45.7 million vs RM8 million in 2016. Net profit improved to RM1.05 million from previous loss of RM1.2 million. EPS recorded RM0.210 vs -RM0.40 at last year Q1.
Profit & Loss: It's second consecutive quarters gain after seven (7) consecutive losses. EPS roars 183% compare to last year Q1.
Revenue:
Revenue grew 24.18% to RM40.01 mil from RM32.22 mil in previous FY. The higher revenue was due to the higher sales of powder fats and also Australia improted products such as Ozmade and liquid Plantfood which contributed significant figure of RM3.24 million.
Q1 reported the single quarterly result of RM45.7 million and believe the following quarters remain robust.
Profit After Tax:
PAT shown an impressive turnaround result from last FY loss of RM373k to a small loss of RM60k. This is not the commercial loss but was due to tax credit from the reduction of deferred tax liabilities provision, which was mainly attribute to timing differences on PPE acquired during the FY.
YTD PAT is amounting of RM1.1 million for the latest Q1 31st Mar' result.
Cash and Balance
The cash and bank balances has increased to RM50.55 million as at 31st Dec 2016 after the Rights issue of shares of RM44.85 million. As at 31st Mar' 2017 the balance sheet stood at a net-cash position of RM55.5 million with a Current Ratio of 3.5X.
Remarks: With the conservative estimation of 5% growth in Revenue (Q2, Q3 and Q4) and also 4.3% Profit Margin I estimate Financial Year 2017 will register total Revenue of RM80 million and PBIT of RM3.40 million. This PBIT estimation is exclusive of trading contribution from palm based like CPO and kernel products.
3) Catalyst
In every investment we either purchase the company share to take benefit of the company value (stable & dividend payout) or invest in future growth. I would say catalyst is very crucial and decisive for my long term holding. I am not in the best position to hard sell or whatsoever to give imaginative justification to make any blind followers to fall in love with that. My absolute foreseen catalysts are:
-
Higher demand from "My City My Farm" initiative from high income households.
"It is now importing and distributing OzMade Liquidplant, an earthworm extract fertiliser from New South Wales, Australia.
“We are targeting to sell the product to more than 1,000 farmers in Malaysia, as well as to supermarkets, Baba Products and Jasmine Food Corp. We believe this product will generate more sales for Sunzen,” he told Business Times at the “My City My Farm 2016” campaign, here, recently."
-
Strong brownfield investment income from palm oil investment
I realize that Sunzen Biotech has aggresively acquired two(2) oil mills in Northern Penisular but they are still in very low profile in the market. The CEO Mr. Jim has remarked that current strong Revenue was contributed by trading of crude palm oil, palm kernel oil and kernel cake & shell products. How can oil mill make windfall gain? Despite CPO price at RM2,500 or climb up to RM3,000 miller will still pay B grade and C grade prices of FFB to estate owners and we hardly see small holder could receive A grade (big palm fruit) price. -
Strong cash reserve for greater acquisition opportunity
It is logic and most welcomed should the company look into more acquisition such as Brand new licensed animal health products, highly efficient oil mill or palm oil refinery to leverage the resources in the company. When Sunzen acquire a palm oil refinery it has the supply chain advantage to convert commodities reliant CPO into value added end product or specialities fats which can be exported oversea for greater margin. Any breakthrough of new vaccine product will not only claim back tax rebate but to penetrate new market in emerging countries since developing countries have larger demand in farm livestocks. -
Share price in charging phase
Technically, the share price hit RM0.450 and retracted back to RM0.380. The price is trading above Ichimouku cloud and also we can see MACD cross over volume bar. It has widen cushion to derive for its uptrend.
This is a buy on dip strategy before further accumulation on Q2 result. Execute stager buying strategy.
Phase 1 - acquire 40% at RM0.380
Phase 2 - acquire 30% at RM0.370
Phase 3 - acquire 30% at RM0.350 or RM0.380 (if fail to dip to that point)
4) References
- http://www.bursamalaysia.com/market/listed-companies/company-announcements#/?category=all&sub_category=all&alphabetical=All&company=0148
- http://m.klse.i3investor.com/servlets/forum/903571743.jsp
- http://www.malaysiastock.biz/GetReport.aspx?file=AR/2017/4/28/0148%20-%201059583231550.pdf&name=SUNZEN%20AR%202016.pdf
- https://www.nst.com.my/news/2016/06/154902/sunzen-biotech-bullish-new-market-prospects
5) Conclusion
Everything look nice but I'd hope management will update us more info and more structured plans how the turnaround strategy will create better yield for mid term and long term investors.
This article is for LEARNING AND DISCUSSION PURPOSES only. OBVIOUSLY IT IS NOT A PROMOTION OR BUY CALL. Please dont let OTHER cloud your judgement.
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Discussions
9 people like this. Showing 50 of 74 comments
In lui gor thread , always fun to see your comments ma.
Sometimes too serious boring lor... but , I do agree important message should say it clearly and be serious :)
2017-05-30 09:00
duit ... buy on dip is always a good approach but how far will price pull back ?? will it stop at the black horizontal line or somewhere in the yellow box ?? some count waves .. some check fibo retracement ... some look out for reversal candlestick .. some wait for bullish MA crossover on lower TF etc etc !! try to avoid the anguish of averaging down when there is no sign of imminent uptrend continuation yet ... what say u ?
https://invst.ly/40jf7
2017-05-30 14:25
ok ok ... perhaps going down to yellow box first !! owner taking advantage of bad market sentiment :)
2017-05-30 14:30
because sell high buy low mar.. So I already sold high last week now wait buy low :D wakakakaka...
2017-05-30 16:27
yes.. I wait for you.. I bz wedding stuff now.. I parking very low.. unless u give signal..
2017-05-30 16:38
connie, i see 2 consolidation areas, 31-35 and 28-29. then fibo call for 35, 32, 29.
impatient me already take some position at 31-35 >.< hug duit sink or swim together. would have back off if read ur message earlier! woman sixth sense always zhun one, especially the queen.haha
Posted by connie > May 30, 2017 02:25 PM | Report Abuse
duit ... buy on dip is always a good approach but how far will price pull back ?? will it stop at the black horizontal line or somewhere in the yellow box ?? some count waves .. some check fibo retracement ... some look out for reversal candlestick .. some wait for bullish MA crossover on lower TF etc etc !! try to avoid the anguish of averaging down when there is no sign of imminent uptrend continuation yet ... what say u ?
https://invst.ly/40jf7
2017-05-30 16:55
bon must trust Con.. everytime she draws a chart for me I have yet to lose a single dime... One summore went explosive and became almost 300% multibagger.
Thanks for the wedding sponsorship Conjie!!!
2017-05-30 17:02
bojio!!300%!!
of cos i trust her!but the finger lack discipline! mayb need to borrow ur dog d. guard my trading pad, dont let me trade when con gives warning!
abangadik bon must trust Con.. everytime she draws a chart for me I have yet to lose a single dime... One summore went explosive and became almost 300% multibagger.
Thanks for the wedding sponsorship Conjie!!!
30/05/2017 17:02
2017-05-30 17:30
High risk stuff bro....I got jio in CC house..I ask connie Jftech at 0.51...today closing 1.44...
This type I dont share publicly, many holland or stuck, got few never sell when I ask sell end up die. So I decided not to ask in public anymore, I dont like see people lose money.
2017-05-30 19:05
gentlemen u gotta trust duit on sunzen !! at least now if u go down to m60 there are some bullish candles and some kinda visible micro-structure (that enables one to work out a trading plan) to justify one's entry yes ??? earlier there wasn't enuf odds to be stacked in buyers' favour if one is using TA for entry signal ... lets's see tomorrow if we get a show as illustrated below :) or it cud be a V-shape rebound which means no need to retest the support level and go straight-up ??
https://invst.ly/40lqp
2017-05-30 19:39
Abangadik , good to hear your Big Day has come.
New couples always blessed with good luck.
No wonder Jftech up like huat .
Congrats bro.
2017-05-30 21:29
Lui gor, thx to bring us SUNZEN another low profile but with many possibility growth counter after Ays & Insas .
2017-05-30 21:48
If one who is searching for a gd Fa penny , Sunzen definitely worth your attention.
2017-05-30 21:49
Thanks bro! Spend less time on public forum and more time for charity. :D
for JFtech I believe I almost didn't go into that tread to comment because it is a high beta invesment that many won't understand and I won't want ppl to be mislead and think I am part of a syndicate. I have a few more that I had shared with some but those will take longer time because it is not the theme in play.
Have a great week and be prepared for superbull next week!
2017-05-30 21:53
morning duit ... ya this investing.com chart when u zoom in zoom out there is a distortion like that :( no wrong tagging ... 0.37 is correct which is the previous swing low !!
hmmm fgv eh ??? if the QR is not acceptable, then the H&S pattern shall continue to develop !! this fgv got 3 heads :):) hehehehe ... else if it's the other way around and price goes back up above the neckline, the bulls may take over ! let's buy some popcorn and watch the matinee !!
https://invst.ly/40rto
2017-05-31 08:49
duit .. if price manages to close back ABOVE the neckline, then only we draw your W :) and chop off the 3 heads !!
2017-05-31 09:08
Good morning duit,connie and to all.....KLSE is rdy to trend higher today.....happy trading !!
2017-05-31 09:14
duit.....I hv an exciting profitable run on fcpo,fkli n hsif warrants. Was having a busy time helping members to recover their losses on hsif. Am happy that most of them hv recovered their losses this month.....Cheers !!
2017-05-31 09:27
morning hawk ... great to know that u have helped members to recover their losses :)
2017-05-31 09:33
duit.......will try to find time to discuss with u more often.....Cheers !!
connie....i see that u r doing v good in trading now.....hope one day u would join me in trading the futures,,,,:):):):):)
2017-05-31 09:43
Lots of my fren hit jack pot from Insas after I recommend them since Duit comment it to me , now they owing me many Jumping Budha. Got to schedule their thanks dinner.
2017-06-20 23:04
呵呵，
烽火连三月，家書抵萬金。 白頭搔更短， 渾欲不勝簪。可惜钱小弟不是来送家书的。
再宁静的大拉茨湖都会有波动的一刻，更何况是刚形成的幼小湖泊。耐心吧。
“山震”“M比爱“永不同行，
恨似路人双肩同评。
春天一击见一一零，
今天再击见一四零，
下季被击有一六零，
小鱼祷告十九不灵，
大鱼号召三四都行。
股市场上比技能，
短期买卖伤心神，
长线投资山震疼，
你我大家成功人
2017-06-21 11:12
nET pROFIT RM1.50 MILLION.....
VERY SOON TO ACHIEVE 700% EPS IN YEAR END....
2017-08-25 17:21
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Duit kor, give you a Like!
2017-05-30 08:39