52 cents now, PANTECH. Tick tock.

Buy more Calvin? Consolidate? All in?

I have never showed off. In fact I still work and do mlm and part time project management with my trusty Nissan teana.

But the problem is if I don't "show off", no one will take your investment philosophy seriously or your results with clarity.

Just as I do not take you seriously Calvin tan.

Your investment philosophy is just too amateurish to work efficiently long term.

Notice how Calvin always prefaces with his words "sifu" as if only he has direct access to him. It's the same strategy the pastor's and church leaders do by acting as if I am holier than thou because I stand in the stage, therefore I am nearer to Jesus than you.

That's the tactic they use to get more donation and subscription money for you and justify their living expenses saying they do God's work. As if we don't do anything in Jesus name.

Then they start living in big houses and sending their wives for hollywood singing careers.

SSLEE,

Don't mistake dividends and earnings.

Dividends should only be given if the company cannot grow their earnings better with reinvested capital. Aka, too much money, cannot reinvest, give back to shareholders.

Earnings is a measure of what the company is doing by deploying the equity efficiently.

You look at QL small dividend and you see bad company.

If small dividend is bad company, then Berkshire Hathaway must be a crook!

Note how I never said INARI was a bad company. I said INSAS is a lousy one. Just because insas share 19.3%(and dropping) exposure to INARI and they sounds kinda similar, it does not make INARI= INSAS.

So funny, you didn't notice he is acting on his own behalf, he make INSAS sell good company inari into profit himself directly?

Market price of 1.47, sell directly to him for 1.43.

Transferring dividends and future of good inari from INSAS to others.
Why at 1.235 did they not make INSAS but more shares in INARI instead? They would have made 30 cents profit?

Why director personally buy? Not INSAS?

I pity the company where the management is not acting in shareholder best interests.

>>>>>

Director's Particular:
Name DATO' SRI THONG KOK KHEE
Details of Changes:
Currency -
Date of Change Type Number of Shares Price
26-Dec-2018 Disposed 10,000,000 1.430
Registered Name Insas Technology Berhad
Nature of Interest Indirect Interest
Consideration RM1.43 per share
26-Dec-2018 Acquired 10,000,000 1.430
Registered Name M & A Nominee (Asing) Sdn Bhd for Media Lang Limited
Nature of Interest Indirect Interest
Consideration RM1.43 per share

If anyone is attending, just for fun help me goreng slee having on his INSAS by asking him these questions:


How much is numoni generating and earning? How much they bought it for?
How much is sengenics revenue and earnings? How much they bought it for?
What is management reasoning in buying dgsb with money generated from selling INARI shares? Dgsb just had bad quarter this year, should INSAS invest more into dgsb and be associate?
What is management reasoning in selling INARI shares with it's consistent dividend every quarter? What purpose is there in killing their golden goose? What are they buying with that capital?

Thank you.

P.s if can be more blunt, ask them wtf happened with that Mongolian vigcash thing? Who invested in that Mongolian?


Thanks.
I heard he is having lunch with INSAS CEO at the gardens later today. Hope for some concrete answers. I can deploy 10% of INSAS market cap to invest long term if the answers are satisfactory.

Btw SSLEE,

I won't be going. I have better things to do in life like bringing my wife to eat seafood breakfast konloumee in simsim Sandakan ( highly recommended, but you need to be there by 5, at 8am all sold out closed shop)

But if you can help me answer a few questions.

How much is numoni generating and earning?
How much is sengenics revenue and earnings?
What is management reasoning in buying dgsb with money generated from selling INARI shares?
What is management reasoning in selling INARI shares with it's consistent dividend every quarter? What purpose is there in killing their golden goose? What are they buying with that capital?

Thank you.

P.s if can be more blunt, as them wtf happened with that Mongolian vigcash thing? Who invested in that Mongolian?

Inflation? Ql is 19.5% growth year on year.

Other people want to sell you their share of the shoplot for 50pe, up to them. I ask them, sell my subang inti Starbucks rented shoplot and buy what?

That nasi goreng shop next door selling for 1.6 millions? No thanks INSAS.

Got future meh?

I don't buy properties, I have to pay tax on rental income.

I stick to stocks. Almost the same thing if you think about it.

No tax.

Btw, I'm just giving example the Starbucks lot doesn't actually belong to me. Just an example.

Not if your tenant is MacDonald's or Starbucks. Directly opposite INTI college. Opening 24/7.

Which again brings me back to my point,

Average companies for wonderful prices.
Or wonderful companies for fair prices.

Your choice.

If you looking for cheap deals, go buy INSAS.

Location not so good la, in jinjang.
Shoplot valued around 1.6 million, rental 92 million a year.
But the tenants sometimes borrow money from you. ( warrants, rights issue).
And I heard they selling off their daughter inari to an arranged marriage somewhere. To bad every year she helps warm for the family 40k to pay off the rental. Once she is gone no more money to pay for the rental. So have to start selling parts of the shop I guess.

You have crystal ball? If don't have, look at QL track record since 2000, until today. Has it ever not grown? Has it ever lost money? If you put in the growth rates, in 10 years from now, how much will the eps be? Has it ever given you any doubt in it's earnings growth?

Nosh. Eps net assets
1,623,161 10.69. 1,915,330. (* Ytd. With one more quarter left to go)
1,622,438 12.71. 1,800,906
1,247,904 15.70. 1,747,066
1,247,660 15.39. 1,597,005
1,247,838 15.34. 1,422,536

2010
391,463 27.1 501,536



You have family Mart growth. Vietnam and Indonesia growth. Marine international growth especially ramp up for Japan Olympics in 2020.

If layhong don't perform I can understand. QL already performing for you every year. Why not stick for the ride?

If you bought ql in 2010, your purchase price will get you asset+ business+ license+ workers.

you bought a shoplot valued 450k that gave you 100 k every year. And the best workers in the market included for free.
2017, your shop lot is now valued 1.8 million and it gives you higher rental of 200k every year. Worth it?
In 2018, your shop lot valued at 1.9 million, and rental expected this year of 240k this year.

When you buy QL for 50pe, you not only buy the earnings every year. You buy the assets, the management, the future growth. The good will. The monopolistic nature.

If I told you that you would be paying top dollar for a growing Malaysian Nestle, you would laugh. But it would also be true.

Expensive yes. But will people let it go for less?

I wouldnt let go my shoplot in subang ss15 in front of INTI if you paid me 8 million for it. But 50 million of course la....

>>>>>>
Even EPS grow 10%(2019 but 2020,2021 still possible?) is PE 50 justified?

FYI, SSLEE don't think take this as me trying to promote ql to you. I could give a flying fox damn if you Bought QL at these prices or not. I'm not asking you to buy QL, ( it would be far better for me if traders start away from QL for as long as possible). I'm trying to change your mode of thinking in buying the stock market.

I have bought and never sold ql since 2009, because if all the salient points above. The last purchase I made was December 2018 @6.25 for 50k shares.

You keep trying to compare QL to INSAS as if there is some comparison. There is none.

Nearly same net assets deployed. 1.9 billion versus 1.6 billion.
This quarter, QL is 978 million with 75 million earnings.
This quarter, INSAS is 56 million with 8 million earnings.

Question is, what can you do with INSAS? Can you forced him to sell those unused assets? INSAS is still holding unto unutilized funds from it's rights issue generated in 2015, even until today. It pumps the capital raised into Pacific rental ( still losing money today), fashion ( barely making end meet), sengenics ( zero earnings or revenue generation), numoni( money burned and wasted), dgsb( 30% stake in a loss making company with limited prospects). Insolent in hohup ( small sized developer with horrible assets).

But you still practise 1st level thinking that they have 1.6 billion so things just be good. Here is some news based on long experience. You will never sniff that 1.6 billion. It will never be given to you. Sooner or later management will cut dividends if prospects don't improve. Each quarter they cut their golden goose inari up for parts until one day no more golden eggs can be found.

And then what will you have? More weird investments into businesses that are not succeeding or earning money. Not buckets into the ocean looking for the next INARI.

Good luck. SSLEE, don't go on margin. Please. As a fellow UM graduate, if things become difficult, I won't be borrowing you money, but I will give you lifelong good advice.

There is no winning you. All you see is still share price, share price, share price. Why are you still stuck with level 1 thinking? Can't you think about the business itself first and let the share price take care of itself? Do you suddenly sell your subang shop lot in front of Tailors that you are renting for 15k month just because suddenly someone offer you 5 million for it?(when you bought it for 1 million?) When you know if you can hold it for 20 more years it will be worth much more?

The secret to business has always been about earnings and revenue, the growth of which is the Fundamental of share price increase. If the revenue and earnings has shown that it can grow with COMPOUNDED RETAINED EARNINGS consistently with bigger and bigger value without losses or reduction in yearly revenue, and if it doing so in a efficient manner, you should take a deep look into the company.

These are the BASIC salient points if QL ( the things that matter)

1. QL is growing efficiently in the biggest market in the world (consumer food production) that has
A) a HUGE market size( compare semiconductor manufacturing market to palm oil market, poultry and egg market, marine production market. Which do you think is the bigger pie?)
B) cutthroat margins and requirements to be integrated vertically to be successful ( anyone can make hot chocolate, not everyone can be Nestle)
C) HUGE CAPEX requirements where size and volume efficiency trumps all. Aka 1 hectare with own palm oil refinery is stupid. 15,000 hectare with own palm oil refinery is a minimum to be successful. How many planters can do that?

2.QL has grown for 20 YEARS WITHOUT LOSSES. It has become VERTICALLY INTEGRATED, making huge money when companies that started far far earlier like LAYHONG and cck are still stuck in penny stock size.

3.QL has show a TALENT FOR DIVERSIFYING. Not like INSAS which diversify into loss making companies, businesses that they have no competence or skill in managing ( biotech, fintech, car rental, fashion), but DIVERSIFYING INTO STRONG, GROWING POWERFUL BUSINESSES like family Mart, layered farming, Marine processing, of palm oil activities. All businesses within their SCOPE OF COMPETENCE. And competent they have been. They started as a company selling feedstocks, collecting and trading fishmeal. And turned it into a 11 billion dollar industry. While LAYHONG is such as a few hundred million dollar company in years of mismanagement.

4. QL has never given you any doubt that it can continue to perform. It has given you ALL TIME HIGH REVENUE AND NETT PROFIT. It did 215 million last year and will probably do 250 million earnings this year. This matters. Consistent ROE for 20 years running MEANS something.

5.Ask yourself, any company that can keep growing COMPOUNDED EARNINGS is a wonderful company. Nta wise, INSAS I think has 1.6 billion in net assets (which spent frivolously won't be there any longer). In 2017, it used that 1.6 billion in net assets to produce 350 million in revenue, 90 million in earnings.
Ql in 2017, used 1.8 billion in net assets to produce 3 billion in revenue and 200 million in earnings.

What happens in this financial year? Do you think INSAS will overperform and do better with it's retained earnings? I know what QL is doing. It is doing the best it can for it's shareholders (70% being his own self) by managing everything as efficiently as possible and with lowest risk.

I stick along for the ride. I've been investing in QL since 2009 with all my assets. It has been a Carly rewarding ride.

You have been investing in INSAS since 2016. Has it been financially rewarding?

I think if you are emotionally invested in INSAS b because you have lost a lot buying it at rm1. And now that it is at rm0.8, you are happy, but still overall losing some money or break even.

But take a deep breath, stand back and be unemotional. Don't fall in love with your stock. Fall in love with the performance of your stock. If the stock is not performing, fall out of love and start reading

I find your disinterest in reading about investing and business disconcerting. Perhaps you should invest in index funds instead?


>>>>>
QL market price on 28th FEB 2019: RM6.90, an increase of 40% is this not running ahead of Fundamental?

Nigeria is very different from other parts of Africa. FYI, the John agyeum is already deployed in Africa as well. Already money earning.

>>>>>
qqq3 > Feb 28, 2019 08:03 PM | Report Abuse X

better go check whether Nigeria will take them to holland...........don't ask them........check yourself. what if there is revolution In Nigeria? capital controls? Default?

My honest input sslee?

Are you sure you want to be doing investment talks and teaching investors how to buy INSAS?

It would be like blind teaching the blind.

I think you will be better off just sharing to others my free articles, it would be more useful for future investors.

QL results this quarter:

Palm oil business 12.28% profit. How many palm oil business hit that this quarter? Don't compare with United plantations la(27.9%). Ioi plantations, 10.4%. Hap Seng plantations? 6.3%. fgv -7.36%

And you say it will be negative......

You follow Calvin tan too much I say.

Segment information in respect of the Group's business segments for the 3rd quarter ended 31.12.2018
RM'000 RM'000
Sales PBT
Marine products manufacturing 51,787 279,394
Palm Oil Activities 8,668 70,450
Integrated Livestock Farming 32,510 629,014
Total 92,965

Highest quarterly revenue of ALL TIME.
Highest quarterly profit of ALL TIME.

>>>>>>

P/S: Predicting QL quarter result:
Segment information in respect of the Group's business segments for the 2nd quarter ended 30.9.2018.
Marine products manufacturing: Sales RM 266,756,000. PBT RM 39,098,000
Palm Oil Activities: Sales RM 82,453,000. PBT RM (1,631,000)
Integrated Livestock Farming: Sales RM 571,046,000. PBT RM 29,532,000

Most likely Palm Oil activities more losses as of other segment need Philip input.

Stoneco is a Brazilian company btw...

Investing is really not easy though. But It's not hard. Thing is, it takes so much effort, it's only worth it if you enjoy reading and thinking.

To buy PCHEM, I had to read Japanese chemical stock, German chemical stock, Thailand chemical stock. US chemical stock Read LCTITAN. Read chemical feedstocks trade journals. Read crude oil trend. Read PCHEM customers annual reports. Read their competitors annual reports. Read on Saudi aramco production and oil finding costs. Dig up petronas oil finding costs.

And while doing that build a few mental models of how overall things work in chemical industries, what is pchem competitive advantage, how it will grow in the future. What are it's challenges, how much it can produce. When will it reach terminal growth rate?

Then I read into Pangerang PIC, how much is overall production after completion. What is mpta. What feedstocks can be generated in PIC, what is isononanol.

After all that, then I look at the stock price, p/e, book value, growth rates, directors, shareholders, ESOS?, Warrants, share dilution etc etc.

Then I buy 1 stock.

It constantly amazes me how someone can have 30-50 stocks. I barely have enough time to follow up on my 5 stocks....

Maybe once I early retire next year I'll go into full time investing. Hire staff to help me collect data... Very very tiring work.

I totally did not know that. I knew they already shortlisted to top 3 with modec Japan and the other French company, but I guess Malaysians can work for cheap. Lowest cost producer in fpso market by a mile.

Now for the big one in Brazil. Fingers crossed. Also shortlisted down to 2 companies, modec Japan and YINSON. That is the biggest deal ever. If yinson gets that one, we will be the 3rd biggest fpso company in the world!

I say we because I own 500k shares in YINSON. I'm an owner!


>>>>>>
Amazing Philip, Yinson bags another contract in some africa country. Thanks
28/02/2019 19:39

No need to pay, I will share all my articles on the internet. I only have 5 stocks in my portfolio. And I rarely buy new ones.

My only hope is that local investors turn bursa not into a casino, but into it's original purpose. A sharing platform for investors to profit together in the growth of well managed, growing and successful companies through the years.

*stock.

Heavenly punter: you forgot my biggest pick of 2019.
January 4 2019.

I bought with my partners Liu sin and brother in law, 200k shares in NYSE:STNE at usd19. It's the duck that Berkshire Hathaway and Alibaba ipo together.

You should check it out. The returns so far have beat all my stocks combined.

https://klse.i3investor.com/m/blog/philip2/191042.jsp

POA's current quarter sales decreased 32% against corresponding quarter mainly due to lower CPO price (RM1,916 current qtr vs RM2,592 corresponding qtr).
and higher unsold stock.lthough CPO price dropped 26%, POA's current quarter earnings however only decreased 7% against corresponding quarter due to higher FFB produced
and better CPO milling margins.

Guess what, efficient business and integrated business practise wins out.

Imagine if CPO price is low they still making money due to efficient business practise ( with their own Mills).

Now imagine if the price of CPO goes up to 2,592 again. Or up to 3,125. Or all time high 4,300.

Then you add efficient milling work and margins and growing poa in kalimantan expansion.

Any questions?

My honest input sslee?
Are you sure you want to be doing investment talks and teaching investors how to buy INSAS?

It would be like blind teaching the blind.

I think you will be better off just sharing to others my free articles, it would be more useful for future investors.

Palm oil business 12.28% profit. How many palm oil business hit that this quarter? Don't compare with United plantations la(27.9%). Ioi plantations, 10.4%. Hap Seng plantations? 6.3%. fgv -7.36%

And you say it will be negative......

You follow Calvin tan too much I say.

Segment information in respect of the Group's business segments for the 3rd quarter ended 31.12.2018
RM'000 RM'000
Sales PBT
Marine products manufacturing 51,787 279,394
Palm Oil Activities 8,668 70,450
Integrated Livestock Farming 32,510 629,014
Total 92,965

>>>>>>

P/S: Predicting QL quarter result:
Segment information in respect of the Group's business segments for the 2nd quarter ended 30.9.2018.
Marine products manufacturing: Sales RM 266,756,000. PBT RM 39,098,000
Palm Oil Activities: Sales RM 82,453,000. PBT RM (1,631,000)
Integrated Livestock Farming: Sales RM 571,046,000. PBT RM 29,532,000

Most likely Palm Oil activities more losses as of other segment need Philip input.

All time high revenue, all time high net profits. But what do I know about investing?

Any questions Calvin tan and sslee and icon8888?

Damn. Didn't hit my thesis of 1 billion in revenue in one quarter. Sorry guys, I failed you. QL going to the dogs tomorrow...

haha i luckier than you, i bought PCHEM, YINSON and QL.

Hi jona0724,

I replied here before in air Asia group berhad.

https://klse.i3investor.com/blogs/Buffettology/193719.jsp

Note that my salient points were brought up BEFORE the latest quarterly reports of AAX and AA.

Note the 1st level thinking if the blog who only saw numbers and figures,

And my replies using 2nd level thinking on business sense.

Somehow I always get into weird discussions with icon passive aggressive remarks.

I get the feeling the icon is not as old as he says he is, and probably not as wise.

He replies like a 30+ year old kid sometimes.

What makes you think I don't have a 5 year old television? I do subscribe to 5 papers a day including financial times and Bloomberg and Malaysiakini(online) I do sell the papers for recycling. No need to be shabby, read and let go.

Are you awed yet?

>>>>>

One of them lives in a shabby apartment stuffed with old newspapers and magazines

and a 5 years old television

This kind of people awes me

Glass half indeed. Glad you learned something today.

Kyy investing pattern and mine are totally different. I tend to stay away from kyy because he ALWAYS buys penny stocks where he can cause havoc. Because major shareholder of a penny stock company dai sai?

I look at the business and management foremost. And I have followed them for a long long time.

I have the proud record of looking at 100 stocks to pick just 1 to add to my portfolio.i have read every annual report in bursa, monitoring more than 600 hundred companies in my updated list with potential. I have added 5. Out of those I add, I have a proud record so far in 10 years of never getting a margin call or cut loss.

I'm happier for the fact that I never needed to cut loss than anything else.

It gives my compounding gains a big long term advantage

I am more like a sponge. I have been in the market so many years, I can see what can work and what can't work. Those that can't work long term, study it read it but don't absorb it.

The secret to stocks is to not lose money in the long run. Compounding will do the rest. How not to lose money? Don't try so hard and do complicated investments. Hoping to do magic and get outsized returns. Small consistent returns with big sums over a long term can do magic.

Why buy unstable small penny stocks like CARIMIN, AZRB, PANTECH, or Upgrading and repairing plants like HENGYUAN and LCTITAN when simple, guaranteed profit earners with wonderful management, balance sheet and fantastic consistent moats like PCHEM just next door?

You can earn just as much money buying simple consistent businesses that won't lose you money. Can earn big money by jumping off the side of the pool, why need to do 3.5 difficulty degree flip into triple somersault,

In investing you just need to be consistent. Why need to be fantastic?

Well, I'm looking at long term growth of a stock or it's ability to beat the competition. Just keep monitoring and revisit PANTECH and DAYANG 1 year and 2 years from now. You will find that I'm right, for exactly the reasons I pointed out.

If you think CARIMIN can go to rm2, and with 5 cent earnings for 4 quarters ( I was right about kyy not having a crystal ball. He sold that stock at 80). I knew that topside maintenance was not going to be like clockwork. I called that bullshit.

Same thing with DAYANG and PANTECH. If you think Pantech will suddenly go above its 2017 of rm0.7, and it's 2014 high of rm1? I doubt you will find those kind of performance.

DAYANG? 2017 price was rm1. 2014 price was rm4. You think it will suddenly overperform in 2019 or even 2020?

Those stocks are just reverting to it's mean. If DAYANG can average 100 million net profit for the next 3 or 4 quarters consistently I'm a turtles egg.

I've actually done work on a platform before. Not topside maintenance, but PLC, scada and pumping sequence.

I know for a fact those big maintenance and refurbish projects come like over every 4 or 5 years.

You are right, I don't buy those things like talam, SASBADI, perisai, protasco and karambunai which Calvin loves so much. I put that in my too hard pile. I prefer going for rambutans I can pick with my hand, not the ones which I have to climb up the big tree.

P.S. I don't think Calvin knows how to pick those stocks either. If you put money in all those stocks Calvin promoted to buy last year, you probably won't have any more money to buy the new stocks that Calvin is promoting to buy this year.


>>>>>>>
Correct loh
Don't listen to Philip
He does not know how to buy

Cyclical
Turnaround
Or asset play stocks

Naim was 50 sen and Philip missed

Philip will miss pantech, Azrb and penergy

So much for Calvin tan Holland drive promotion.
Up the hill then down the hill again...

How to keep track of so many bad stocks?
>>>>>>

03/01/2019 19:03

calvintaneng Some thoughts on Giant Treasure at current level

WHEN Jtiasa was Rm2. 60 Calvin told Uncle Koon to sell.
Now at 50 sen is 80% discount

AND favorable factors:

1. India cut tax helps cpo competes against soy and other seed oils

2. China cut tax for palm feeds for its pigs

3. Indo and Msia increase biofuel usage give support

4. Cpo stocks expect to deplete soon

5. More cpo export to China as New Year approaching

For plywood

Tokyo Olympic needs plywood

Jtiasa landbanks

Pan Borneo will unlock the value of lands in Sarawak. In Pulau Bruit freehold land is valued at only few cents psf. Sarawak is getting oil royalties for development

All are positive long term booster for jtiasa fundamental
03/01/2019 21:39

ICAP is a good fund? I thought it is a horrible closed ended fund controlled by ttb who gets paid money every year to do nothing. The shareholders the are starting a revolution to remove chairman.

We treat INSAS as a horrible company also?

Book value alone is silly as a judge of a company. It is merely a historic number of what the company has done before, and does nothing to reflect is earning power today or the companies future prospects.

Just because your father rich doesn't exactly guarantee you will do well in the future.

FYI, Warren dropped his book value calculation in his latest annual letter. He realized it is a poor value for intrinsic value in today's world, as many companies with low book value in Berkshire holdings are performing far better (earnings and revenue growth) than his other businesses which is very big on net assets but very little in the way of earnings ( which is very important when you value INSAS).

Net asset per share in vacuum as a measurement tool is silly.
1MDB bought a lot power plant assets from Ananda and ytl.

Big beautiful looking assets.

The IPP contracts don't make much sense though.

I mean think about it, in 2017, using a net asset of more than 1.65 billion dollars, insas managed to earn a mighty 97 million ringgit!. That's like 5+% return on your equity. And I haven't factored in for dilution from ESOS, preferred shares and warrants. Which lowers your return on equity even more...

My son's piggy bank could do better in EPF. And it is always par value rm1 per share.

https://www.thesundaily.my/archive/1216499-GRARCH279633

For me this part unnatural.


2013. 2014. 2015. 2016. 2017
Profit Before Tax (RM’000). 24,807 50,023 55,730 60,920 86,502
Profit After Tax (RM’000) 24,063 49,109 44,322 64,849. 83,019

No need to pay income tax? If so, is a great business strategy, buy sadly unsustainable.

Hmmm, results not flat leh. They did extra 10 million revenue this quarter. But their profit margin is consistent. I think not bad la.

But I don't understand the industry well enough to know if vitrox profit margins and growth is because they really have something special going on, or if their performance is due to artificial support from government tax free pioneer status. (Ends in a few years anyway)

I suspect ( not sure) if someone goes to them during the AGM and ask a direct question, if they lose the Pioneer status today, will they be competitive tomorrow, you may have an interesting answer.

I take the example of mikro MSc, a Sabah company and good friend of mine.

They were also enjoying 20+% profit margins on a very good niche product ( only protection relay and power meter manufacturer, designer and supplier in Malaysia), which they exported to Vietnam and Africa.

They enjoyed it until end of 2017, when their profit margins suddenly became very much affected due to Pioneer status lost, 24% income tax being introduced (from0%), benefits from duty import and levies all gone.

You can see what the net effect was on the stock and earnings.

Now I don't know if the same thing will happen to VITROX, as I'm not smart enough to judge how big the market is, how capable VITROX is at competing with international market, or even what their basic competitive advantage is, ( Location? Quality? Price? Reputation? R&D?) What is so special about VITROX anyway versus the Korean competitor? What's the extra secret sauce?

As far as I can tell, what VITROX has is nothing the industry has not seen before, except that they sell it much cheaper. Their production times are quite long for a machine, and it's quite new in the market so won't know the reliability of it but it seems quite popular especially in USA.

Problem is I don't see it in big wins like supplying to big company like intel, tsmc, lg, etc etc which can be used as a marketing tool.

I don't know if income tax will effect it or not in the future, but time will tell.

Good luck all.

Hi Tracy92,
Here is how I evaluate DAYANG. They are a topside and maintenance contractor. In its long history it has not diversified into new business units, so I assume they are either concentrated or management not talented enough to expand into new business.

In topside maintenance, there is a limited number of sites that need to be maintained within a fixed amount of time. DAYANG has a limited number of ships and competent people therefore they cannot bid for more jobs than they can safety handover. There are other contractors who do the exact same thing in the sphere like CARIMIN, Petra, barakah etc, all of which are no different from each other, no special difference or equipment. Therefore, they will all get the same jobs as to how much they can do.

So now you get to my concept of terminal growth. There are a limited number of oil platforms and refineries offshore that need maintenance, and that maintenance needs to be done to a standard which maximises the duration of length into the next scheduled maintenance.

The last big contracted maintenance? 2014. DAYANG did 874 million. 181 million pat. 18.7 roe. After that? No more business until recently. How much money dayang making 2019? 930 million, 197 million pat. Notice the cycle of maintenance? Do you think we will have more offshore platforms moving forward in Malaysia? Or will it be a net replacement of depleted platforms (like hibiscus) which is sold and with new platforms.

Is dayang growing or just performing? If you take into account inflation, is DAYANG taking market share or just coasting. Obviously coasting.

My opinion is DAYANG has reached terminal growth already, with small growth prospects to look forward to. They are labor intensive with no skillset and competence to take international competition. They don't have the money to do m&a and expand into different industries. They also don't have obvious skill to take market share from other competitors.

All we have to look forward to is a cycle of boom/bust.

I suggest you move on.

>>>>

tracy92 Hi Philip, thanks for your great sharing. Can I have your views on DAYANG?

It has outstanding orderbook of RM3b, earnings seem sustainable hinted in last QR under prospect section. They’re service provider who is not directly benefited from oil prices, however, due to good oil prices in 2018, Petronas accelerates to carry out their maintenance activities - benefits dayang

I already opened mouth in his other articles long time ago son.

I don't buy penny stocks.

I don't speculate don't worry.

Unlike Calvin who keep promoting karambunai, talam petisai etc. But don't buy a single cent.

I only have 5 stocks in my portfolio, held and bought since 2009. Every quarter I top up those stocks only.

I have QL, bought in 2009.
TOPGLOV, bought in 2010.
YINSON, bought in 2013.
STNE (NYSE), bought in Jan 2019 @19.
PCHEM, bought in Jan 2019 @8.15.

I buy wonderful companies at fair prices.

Oh no, could Calvin tan be wrong again?

BASF is the main technology partner and designer for pangerang project. it is a huge German multinational. Their biggest automation and valve sorts are from Siemens. Flow meters and mechanical works are from ABB, best in the world.

Do you think anyone will use PANTECH for anything but the most basic of things?

Extrapolate yes, but within reason.

Don't take a look at a shroud from Turin and say that it is the cloth of Jesus when he went to the tomb.

Do some research at least.

Carbon dating and blood splatter analysis found that it came from the 14th century, and blood splatter analysis showed the blood flow location and dispersal did not show that it was trauma, but more staged and placed.

So much for faith based belief.

Just look at the group of companies.

https://pantech-group.com/group-of-companies/

What do they do? Trading.

Nautic steels ltd is a new acquisition, they do flange and pipe fittings based on others design and specs which they license. You think it is crazy profitable? Buy the CTOS report and find out.

Pantech Stainless & Alloy Industries Sdn Bhd supplies and manufactures stainless steel pipes and fittings. Do you think it is a foundry and integrated plant? Of course not. They buy and assemble, oxygen weld, but fusion and resell.

Do you think it is an amazing business?

Buy the CTOS report and find out.

Average companies for average price.

But what does a retiring soon technical manager know about high pressure pipes, I'm sure Calvin knows best.

Why drop?

Because PANTECH is not actually doing oil & gas.

They are selling and cut & bend pipes, fittings and accessories which is also used in oil & gas. The do galvanising work on steel structure. And since got cut and bend factories they do structural work.

I buy my flowcon actuators and motorised valves from panaflo, but if got budget I always choose to buy from Siemens or ABB first.

They do trading, buying and selling ( which is why their profit margins are so low, 7% similar to ANNJOO)

They do not do epcc, design and build and other high margin activities.
You cannot look at a chicken and call it a duck.

If you are providing a service, similar to YINSON you will have high net profit margins (25% advice) which is very niche and hard to dislodge, you will have PRICING POWER.

Most of the flanges, pipes, fittings they stock and trade all come from CHINA. Do you think they melt their own steel, produce their own foundries, R&D and make their own pipes, fittings, flanges and valves?

Of course not.

The only reason why anyone use PANTECH is because they can sell cheap and keep stock.

If a company only way to fight is by selling cheap stuff with no innovation or market advantage, do you think they have a long term future? If you have quantity and money, anytime you can go to China to buy containers of steel material and kill PANTECH.

Calvin tan says he knows PANTECH?

I think not.

QR already released in December lo...

Mr market really likes YINSON today... I wonder why

Sorry, never mind. Forget that. Target invest you should stop investing in holland stocks.

I was once very much like you.

https://klse.i3investor.com/blogs/phillipinvesting/188844.jsp

Aren't you the guy who was putting his seatbelt on and pumping money into opcom? Right into disastrous results this quarter?

Any reason why we should trust targetinvest this time?