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Chin Well Holdings Bhd - Koon Yew Yin ( can comment here)

newb1995
Publish date: Sun, 04 Sep 2016, 12:51 PM
newb1995
0 1
Money !!!!
Following Message

My purpose of writing this piece is because I have not seen any financial institution publicizing this stock. As I said before, when you see analysts publishing articles on any stock, you have to be careful. Do you know why?   

The above picture is a snap shot of the company from Bursa. You can notice the following:

  1. The price down trend is over. As I said before, you must not buy down trending stocks because the price can go further down and you will lose money.
  2. The trend is just reversing which is the best time to buy.
  3. On 30th Aug, Mr Lim Chien Cheng, the company Chairman and the controlling shareholder is buying back its share. Do you know why he is buying back his shares?   
  4. On 25th Aug the company announced its annual profit of 21.16 sen EPS which is better than last year of 14.37 sen.
  5. It was selling Rm 1.69. Do not try to pronounce the figures in Cantonese and it complies with my share selection golden rule. It is selling P/E 8.
  6. Moreover, it is cash rich and pays reasonably good dividend.
  7. In January 2016, it was selling at Rm 2.30 with mush higher daily trading volume than what is being traded currently. My average cost is higher than the last closing price and I am buying it to reduce my average cost.

Company Profile

It is among the largest manufacturers of steel fasteners, a few hundred types of screws, nuts bolts and other fasteners. They also manufacture galvanized wires, annealing wires and PVC coated wires.

Together with their sister companies in Taiwan and China, they are certainly the largest manufacturers of fasteners in the world. We must be proud to have such a reputable company in Malaysia. Yet so many commentators in i3investor.com did not know. 

The next time when you are told to fasten your belt before takeoff by an air stewardess and when you screw, you must remember CHIN WELL. 

Roman Philosopher Seneca quotes which are relevant to all investors

 

Luck is what happens when preparation meets opportunity.

 

If one does not know to which port one is sailing, no wind is favorable.

 

It's not because things are difficult that we dare not venture. It's because we dare not venture that they are difficult.

 

If you wished to be loved, love.

 

True happiness is... to enjoy the present, without anxious dependence upon the future.

 

I shall never be ashamed of citing a bad author if the line is good.

Discussions
Be the first to like this. Showing 10 of 10 comments

shortinvestor77

Kyy is staying in Chinwel Hotel Presidential Suite. Do you want to live with him there?

2016-09-04 13:39

pisanggoreng

it was report in the Vietnamese newspaper Chinwel draining untreated waste water into the river andfound buries industrial waste under the ground.

do you feel safe to put you hard earned money in the hands of such unscrupulous businessman

http://e.vnexpress.net/news/news/malaysian-owned-firm-faces-sanctions-for-polluting-in-southern-vietnam-3452277.html

https://m.vietnambreakingnews.com/2016/08/formosa-dong-nais-facilities-charged-with-environmental-violations/

https://m.talkvietnam.com/2016/08/malaysian-company-blamed-for-polluting-environment-in-dong-nai/

https://m.vietnambreakingnews.com/tag/chin-well-fasteners-vietnam-co/

2016-09-04 13:59

buddyinvest

Don't buy for the following reasons:

1. Pollution means possible sanction. Even if they are left off the hook, Chinwel needs to build a treatment plant to treat the waste which is a cost that will eat into its margin.

2. No more anti-dumping duties imposed on China fasteners, meaning this is a dog-eat-dog industry.

3. Ringgit strengthening will bite into its margin.

4. We buy means they (KYY and its cyber trooper OTB) will has chance to unload.

2016-09-04 14:08

pisanggoreng

if really want to follow KYY recommendation

then , read what i share my 2 sen view in Gadang thread


Posted by pisanggoreng > Sep 3, 2016 01:48 PM | Report Abuse X

I have no intention to ask you to buy if you still have not bought .

I am just telling what is best for myself

To me

Now is not the time to sell

Why?

Both its construction and properties segments will still contribute positively to its earning for the coming one and a half years even though without new contract.

Is that not enough time time for a good company to top up its order book ?

Then how many years do you want ? 3 years, 4 years or 10 years...

For me any prediction beyond 2 years is fortune telling
If You believe that then you better pray hard everyday

Ask yourself , one and a half year from now is it good enough time for gadang to secure new contract?

Gadang has good fundamental value nobody can deny, it is a magic formula counter based on the knowledge I learnt from KCCHONG. If you are lazy to do you homework then go bursa market place to see for yourself . Cash flow may not look so beautiful because a big amount of cash had been use to increase its landbank for future property development which carry a higher profit margin than construction works . I do not see anything wrong with that since it is going into affordable housing which still has good demand .

Now its utilities segment is contributing steady and improving net income , next financial year its plantation unit will join in . Moreover the capital city project jv has an agreed contract sum of net profit 300M which is equivalent to a sure contribution of net income of about 50M every year for a period of 5 and a half years starting from 2015 . It is stated in the agreement . No one can turn truth into myth .

Now Gdang is proposing bonus , share splitting and free warrant . Everybody said this doesn't add value to the company , including my sifu KCCHONG. Mathematically it is true, absolutely true. 1+1 and 2 carry same value is mathematically correct that no body will say wrong. But in reality and in the share market ,is it really true that 1+1 and 2 have no different? Look at Scientx , Hevea , VS and many more, make a comparison before and after the announcement , ask yourself why you are so happy when your company announces a bonus issue, ask yourself honestly, really has no different, share market always follow simple mathematics 1+1=2 never fail ?

There are people also said , now the price of Gadang is at its peak in its history. Don't chase high. I feel hard to concur, do you ever come across or remember which Big GOD or sifu had taught us such theory, moreover it is still below most of the IB analysts' fair value. And many a time their fair value will be adjusted upward when new contract or good news is announced.

Do not follow my words blindly
Do not buy gadang because I told you so
Do not buy gadang if you can't sleep well when the price drops
Do not buy gadang If you dare not add more when the price drops
Do not buy gadang if you can't wait
Do not buy gadang if you have better choice
Do not buy gadang if you do not know why

Most important

Be a gentleman

Do not blame others if you fail

Lagi important

Do not score me if you fail

But I know

You won't.

Because you know when to sell and how to sell

2016-09-04 14:20

VenFx

Superln better lar...

2016-09-04 14:23

pisanggoreng

goo suggestion

I will but "tam-po" ,tam-po... ( buy some )

Posted by VenFx > Sep 4, 2016 02:23 PM | Report Abuse

Superln better lar...

2016-09-04 14:29

ckliew88

Read the Edge 10 recommended stocks

2016-09-04 18:01

johnny cash

Post removed.Why?

2016-09-05 11:54

einvest88

chinwell, mid term commit suicide stock

2016-09-05 11:56

newb1995

CHin well well supported.

2016-09-13 15:01

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