Fiscal year is January-December.
All values MYR Millions. 2023 2022
Sales/Revenue 14,772 6,437
Sales Growth 129.48% 282.50%
Cost of Goods Sold (COGS) incl. D&A 13,745 7,695
COGS excluding D&A 12,016 6,245
Depreciation & Amortization Expense 1,729 1,449
Depreciation 1,728 1,442
Amortization of Intangibles 1 8
COGS Growth 78.63% 83.65%
Gross Income 1,027 -1,257
Gross Income Growth 181.67% 49.84%
Gross Profit Margin 6.95% -
SG&A Expense 1,288 740
Other SG&A 1,288 740
SGA Growth 74.13% 30.07%
EBIT -261 -1,997
Unusual Expense 8 -494
Non Operating Income/Expense 2,017 -490
Non-Operating Interest Income 99 40
Interest Expense 1,298 1,005
Interest Expense Growth 29.18% 47.82%
Gross Interest Expense 1,298 1,005
Pretax Income 548 -2,958
Pretax Income Growth 118.51% 16.19%
Pretax Margin 3.71% -

FISCAL YEAR ENDING 2023
PRICE 0.65

MARKET CAP (MILLION) 2,720.25

ROE -8.00%
ROA 3.00%
P/B -0.26
P/E 3.25
EARNINGS YIELD 30.77%
DIVIDEND YIELD #VALUE!

Fiscal year is January-December.
All values MYR Millions. 2023 2022 2021 2020 2019
NET INCOME 837 -2,626 -2,991 -5,112 -316
NOSH (DILUTED) 4,185 4,053 3,786 3,342 3,342
FREE CASH FLOW 782 -373 -726 -2,259 1,792
DIVIDENDS #VALUE! #VALUE! #VALUE! #VALUE! 3,409

Fiscal year is January-December.
All values MYR Millions. 2023 2022 2021 2020 2019
TOTAL EQUITY -10,469 -9,517 -6,423 -3,570 2,911
TOTAL ASSET 27,907 19,928 20,030 19,866 25,595

CASH AND EQUIVALENT 703 470 1,257 533 2,588
ST DEBT & CURRENT PORTION OF LT DEBT 6,241 4,872 4,793 4,263 2,614
LT DEBT 17,444 13,123 11,812 9,461 10,275
TOTAL DEBT 23,685 17,995 16,605 13,724 12,889
NET CASH (DEBT) -22,982 -17,525 -15,348 -13,191 -10,301

ACCOUNT RECEIVABLE 878 334 308 309 178
ACCOUNT PAYABLE 1,546 1,243 1,306 1,420 601

Why do you choose to jump over a 7 feet hurdle? Choose the 1 foot hurdle?

(Of course, I assume Yinson is a 1 foot hurdle for SSLee but for me, it is a high hurdle for now. )😀

>>>

Net Net Working Capital Formula – Further Analysis and Discussion:

Net Net Working Capital is a subset of Graham’s Net Working Capital and this is itself a subset of Net Working Capital (also known as Working Capital).

1) Net Working Capital = Current Assets – Current Liabilities

2) Graham’s Net Working Capital = Current Assets – Total Liabilities

3) Net Net Working Capital = Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% – Total Liabilities

Note that the results of each formula are presented in a decreasing order. That is to say Net Net Working Capital will provide the lowest and hence, most conservative, value.

In other words, all else being equal, of the three formulas above, a stock trading below Net Net Working Capital provides the investor with the largest margin of safety.

Value investing is about buying a stock at a sufficient discount to intrinsic value. Graham’s “Net Working Capital” or the “Net Net Working Capital” formulas can be used as preliminary screens to identify potentially undervalued stocks or deep value stocks.

>>>


Even when using the net working capital or net-net working capital, Benjamin Graham still demanded a margin of safety, buying only when the market price is at least 30% below these values.

Net Net Working Capital Formula – Further Analysis and Discussion:
Net Net Working Capital is a subset of Graham’s Net Working Capital is a subset of Net Working Capital (also known as Working Capital).
1) Net Working Capital = Current Assets – Current Liabilities
2) Graham’s Net Working Capital = Current Assets – Total Liabilities
3) Net Net Working Capital = Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% – Total Liabilities
Note that the results of each formula are presented in a decreasing order. That is to say Net Net Working Capital will provide the lowest and hence, most conservative, value. In other words, all else being equal, of the three formulas above, a stock trading below Net N et Working Capital provides the investor with the largest margin of safety.
Value investing is about buying a stock at a sufficient discount to intrinsic value. Graham’s “Net Working Capital” or the “Net Net Working Capital” formulas can be used as preliminary screens to identify potentially undervalued stocks or deep value stocks.11

Summary: (my opinion)
Its business is challenging, requiring a lot of capital to grow.: it requires lots of working capital, and lots of capex for maintainance and growth.
Its debts are accordingly high and its interest high too. It has a debt of 11.5b compared to its equity of 4.7b.

I see a lot of business risk investing in this company.

I classify this company as at most a GOOD but not in the category of a GREAT business, the type I like.

YINSON

2019 TO 2023

Its net cash from operations were negative during this period.
It had huge capex during this period.

A great company is one that generates healthy consistent and growing earnings that translate into healthy cash flows from operations. A great company requires to spend <25% of its CFO on capex, thus generating a lot of FCF that can be used to pay down the debts, buy back its own shares, give dividends or invest to grow.

At market price of RM 2.35, its market cap is at RM 6.368 b.

Its ROA is 2.35% and its ROE 9.69%.
(I like company with ROA > 10% and leveraged < 1.5x. This company is highly leveraged too. Total Asset/Total Equity = 4.1x.)

YINSON

Its account receivable doubled from 2022 to 2023, in keeping with its doubling of its revenues over the same period.

Is the rising Long-term Note Receivable worrying? This has increased from 15m to 10.3b from 2019 to 2023.

YINSON

2019 to 2023
Though reporting profits from its operations, these are not so healthy profits, as these generated little cash. In fact, the company had to raise funds (through issuing new shares in 2023. Its total debt had increased from 4.7b to 11.5b during the last 5 years.

This company's operation destroyed cash. It was debt cash positive over the last 5 years and this had increased during the period.

YINSON
From 2019 to 2023
It grew its sales from RM 1b to RM 6.3b.
Its net income grew from 235m to 452m.
Gross profit margins shrunk from 55% to 28.3%.
Net profit margins shrunk from 22.7% to 7.15%.


Comments: It grew its business hugely. However, profit margins have shrunk.
A great company has a gross profit margin of >40% or more.
A great company has a net profit margin of 10% or 20% or more.

Why had its profit margins shrunk?

YINSON 19.4.2024

Fiscal year is February-January. All values MYR Millions. 2023
TOTAL EQUITY (Book Value) 4,666.00
TOTAL ASSET 19,259.00

Fiscal year is February-January. All values MYR Millions. 2023
NET INCOME 452
NOSH (DILUTED) 2,710

Fiscal year is February-January. All values MYR Millions. 2023
FREE CASH FLOW -2,752
DIVIDENDS -87

FISCAL YEAR ENDING 2023
PRICE 2.35

MARKET CAP (MILLION) 6,368.50

ROE 9.69%
ROA 2.35%
P/B 1.36
P/E 14.09
EARNINGS YIELD 7.10%
DIVIDEND YIELD 1.37%

Fiscal year is February-January. All values MYR Millions. 2023 2022 2021 2020 2019
ACCOUNT RECEIVABLE 1,023 644 575 548 433
ACCOUNT PAYABLE 462 202 178 148 113

Long-Term Note Receivable 10,334 6,688 4,405 1,501 15


[Often, a business will allow customers to convert their overdue accounts (the business’ accounts receivable) into notes receivable. By doing so, the debtor typically benefits by having more time to pay.]

Fiscal year is February-January. All values MYR Millions. 2023 2022 2021 2020 2019
CASH AND EQUIVALENT 1,660 2,873 2,050 1,465 1,290
ST DEBT & CURRENT PORTION OF LT DEBT 1,257 662 808 489 401
LT DEBT 10,208 9,967 7,173 5,221 4,324
TOTAL DEBT 11,465 10,629 7,981 5,710 4,725
NET CASH (DEBT) -9,805 -7,756 -5,931 -4,245 -3,435

All values MYR Millions. 2023 2022 2021 2020 2019
Cash Dividends Paid - Total -87 -64 -64 -65 -108
Change in Capital Stock 754 3 -33 -77 -30
Issuance/Reduction of Debt, Net 668 2,509 2,173 979 791

Fiscal year is February-January. All values MYR Millions. 2023 2022 2021 2020 2019
Net Income before Extraordinaries 855 716 580 331 344
Funds from Operations 1,052 615 580 391 683
Changes in Working Capital -2,689 -1,963 -1,846 233 -94
Net Operating Cash Flow -1,637 -1,348 -1,266 624 589
Capital Expenditures -1,119 -68 -285 -1,223 -1,172
Free Cash Flow -2,752 -1,415 -1,548 -592 -200

Yinson
Fiscal year is February-January. All values MYR Millions. 2023 2022 2021 2020 2019
Sales/Revenue 6,324.00 3,607.00 4,849.00 2,519.00 1,035.00
Gross Income 1,792.00 1,276.00 1,270.00 561.00 567.00
Net Income 452.00 401.00 315.00 210.00 235.00
Gross Profit Margin 28.34% 35.38% 26.19% 22.27% 54.78%
Net Margin 7.15% 11.12% 6.50% 8.34% 22.71%

Insas retains lots of cash. How good is it in allocating its capital?

Buffett's and Munger's forte is their capital allocation ability. They are just fantastic in allocating the excess capital to capture high rates of return for a long period.

Insas

Current Assets 1989 m
Total Liabilities 531 m
________________________

CA - TL = 1458 m

Market Cap = 663 m (@share price of RM 1)

Net-Net value 1458m - Market Cap 663 m = 795m

Therefore, you can take this company private, settle all the liabilities and still pocket RM 795 m cash.

Benjamin Graham loved such net-net companies. However, after 2 years of investing into these undervalued stocks, should they not perform, he sold them. There must be a reason for doing so? Probably, the opportunity costs for holding onto the non-performers.

Yes, Insas is severely undervalued. How do you capture the gains? When? (The story of Aesop as told by Buffett).

Fiscal year is July-June. All values MYR Millions. 2023 2022 2021 2020 2019
Cash & Short Term Investments 1,270 1,163 1,124 827 885
ST Debt & Current Portion LT Debt 213 248 224 338 441
Long-Term Debt 183 162 161 29 74

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
Non-Operating Interest Income 25,551.00 12,137.00 10,690.00 14,712.00 19,973.00
Equity in Affiliates (Pretax) - - - - 43,902.00
Interest Expense 18,775.00 16,188.00 15,217.00 21,452.00 23,220.00

SSLee

As you realise, I always study the fundamentals of a company. Knowing which company to avoid, is just as important and perhaps, more important, than the occasional one that one loads up on in a big way.

Look for the big elephant with your loaded gun. 😀 Look for the multi-baggers. Not easy but possible.


With the internet, the world is opened up to all of us for our investing.

Is Insas a company that is severely undervalued and will continue to remain severely undervalued, longer than its shareholders ability to remain solvent? 😀😀

In the absence of a "catalyst", I am afraid so.

DPO over the last 5 Yrs was 10.5%. This company retained about 90% of its earnings.

Did these retained earnings translate into increase earnings? Is the return on retained earnings positive or negative?

Its earnings are erratic year on year. We like company with earnings that are CONSISTENT and GROWING.

Also, we like company that is able to generate high ROE (preferably > 15%).

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
NET INCOME 122,754 215,145 257,561 14,867 81,831 (5 Yrs Total Earnings 692,158 )

Fiscal year is July-June. All values MYR Thousands. 2023 2022 2021 2020 2019
FREE CASH FLOW 181,434 77,770 180,927 113,548 -5,915 (5 Yrs Total FCF 547,764)
DIVIDENDS -16,575 -16,575 -13,260 -13,260 -13,260 (5 Yrs Total Dividends -72,930 )

With ROE of 4.91%, it is not surprising it is trading at below its book value.

INSAS 19.4.2024

Fiscal year is July-June. All values MYR Millions.
TOTAL EQUITY (Book Value) 2,500.00
TOTAL ASSET 3,031.00

Fiscal year is July-June. All values MYR Thousands.
NET INCOME 122,754
NOSH (DILUTED) 663,021

Fiscal year is July-June. All values MYR Thousands.
FREE CASH FLOW 181,434.00
DIVIDENDS -16,575.00

FISCAL YEAR ENDING 2023
PRICE 1.00

MARKET CAP (MILLION) 663.02

ROE 4.91%
ROA 4.05%
P/B 0.27
P/E 5.40
EARNINGS YIELD 18.51%
DIVIDEND YIELD 2.50%

Posted by calvintaneng > 22 hours ago | Report Abuse

Happy morning

At this juncture due to heavy selling by major holders are actually opportunity to buy

>>>>


The problem with one without a firm philosophy.

In TSH, major shareholder was buying repeatedly. Calvin shouted it was time to buy. The price then was 1.78 and Calvin said it was cheap. Otherwise why would the major shareholder bought 500,000 shares repeatedly. (See my post on manipulation. 🤔. The price dropped from 1.78 to 1.00. (Facts).




Now in JTiasa, major shareholders were selling millions of shares. Calvin reappeared and shouted it is the best time to buy. His followers must be totally confused by Calvin’s postings.

Of course, a few here just noted the manic depressive behaviour of his wanton promotions to enrich only “her-self”.



Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

12,702 posts

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 4 weeks ago | Report Abuse

Jtiasa is now >> rM 1.00 amd Calvin asked to buy.

It was at a low of 30 sen when on hindsight, it must be undervalued.

In 2014, Calvin asked to buy when its share was 1.40+ and gave a target price of 2.50 at that time. However, after some slight fluctuations around 1.40 which excited Calvin a lot (observing hisposting activities), it soon trended downwards to below rM1 and then to 70 sen and eventually to 30 sen. Calvin too disappeared, as observed by total silence during this period.

The price drifted to 50 sen or so. Then a sudden jump to 80 sen (?2019). Calvin posted to sell to take profit and to reinvest into other stocks he liked. (I think for many it was Cut loss from their and calvin’s Buying price of > 1.40+).


Do you think Calvin is good in spotting undervaluation?
Was he rational in his approach?
How discipline was he in his investing?

If he lost money in Jtiasa from his promotion of this stock Jtiasa in 2014, how does he value Jtiasa today.

Maybe at today’s price, this stock is already overpriced? This maybe among a reason for a major shareholder selling shares, among many other reasons.

Good morning.

3iii

05 Apr 2024 Disposed
200,000 MR HO CHEUNG CHOI
05 Apr 2024 Disposed
200,000 MR CHANG MENG
05 Apr 2024 Disposed
200,000 GENINE CHAIN LIMITED
04 Apr 2024 Disposed
2,214,700 GENINE CHAIN LIMITED
04 Apr 2024 Disposed
2,214,700 MR HO CHEUNG CHOI
04 Apr 2024 Disposed
2,214,700 MR CHANG MENG
03 Apr 2024 Disposed
800,900 GENINE CHAIN LIMITED
03 Apr 2024 Disposed
800,900 MR HO CHEUNG CHOI
03 Apr 2024 Disposed
800,900 MR CHANG MENG
02 Apr 2024 Disposed
200,000 MR HO CHEUNG CHOI

Just visited the market, and it is so "red" today! Wonderful!!!😀

----- the silly one. 🤣

Don't be fearful when a stock price dropped by half. If you are confident in the business and have the conviction that its price should be higher and that in the future, its price (based on valuation) will be higher than its previous highest price, continue to own the stock for the long run.

33.120
Volume 22,000
VWAP 33.436
Change -1.000 (-2.9%)
Trade Value MYR 735,596

Use "normalized income after taxes."

(1) If you are calculating ROE on your own, it should be calculated using the most “stripped-down” income available; i.e., “normalized income after taxes,” which excludes all non-recurring and extraordinary items from the income derived from continuing operations. This is not all that easy to come by. Either you, or your data provider’s analysts must estimate the tax implications for the non-recurring items excluded, since such items appear above the tax line on the income statement. At this time, the only data providers I know of that offer normalized earnings are Value Line (www.valueline.com) and Market Guide (www.marketguide.com).

(2) As a practical matter, the second best and probably the “most likely to succeed” would be income available to common shares from continuing operations excluding extraordinary items.

(3) And the net income after taxes would be a near next choice.

More often than not, it is the politicians who have been messing up people’s life with their communal stand, bigoted views, ethnocentric posturing. But why should the people listen to them or allow them to govern with impunity?

Power ultimately resides with the people and they can - through the ballot box - reject and cross out all those politicians who sow the seeds of national discord.

👋👋👋👋

https://myinvestingnotes.blogspot.com/2020/10/hidden-hands-behind-penny-stock-surge.html

Hidden hands behind penny stock surge
Old article

https://theedgemalaysia.com/article/special-report-hidden-hands-behind-penny-stock-surge?type=malaysia


Special Report: Hidden hands behind penny stock surge

By The Edge Malaysia / The Edge Malaysia
30 Sep 2020, 06:00 pm

This article first appeared in The Edge Malaysia Weekly on September 21, 2020 - September 27, 2020

ASTUTE market observers would have noticed on the local bourse a group of individuals, supposedly acting in concert, who have amassed shares in more than 20 publicly traded companies. These companies — linked via shareholding and directorships — are often on the most actively traded list, with huge, fluctuating share prices.

“It (the companies) is all linked to the same person; usually, the most actively traded list on a daily basis involves these counters,” one source says when asked which are the companies that are linked.

https://theedgemalaysia.com/article/special-report-hidden-hands-behind-penny-stock-surge?type=malaysia


Special Report: Hidden hands behind penny stock surge

By The Edge Malaysia / The Edge Malaysia
30 Sep 2020, 06:00 pm

This article first appeared in The Edge Malaysia Weekly on September 21, 2020 - September 27, 2020

ASTUTE market observers would have noticed on the local bourse a group of individuals, supposedly acting in concert, who have amassed shares in more than 20 publicly traded companies. These companies — linked via shareholding and directorships — are often on the most actively traded list, with huge, fluctuating share prices.

“It (the companies) is all linked to the same person; usually, the most actively traded list on a daily basis involves these counters,” one source says when asked which are the companies that are linked.

https://theedgemalaysia.com/article/special-report-hidden-hands-behind-penny-stock-surge?type=malaysia

Home
Special Report: Hidden hands behind penny stock surge
Edge Weekly
Special Report: Hidden hands behind penny stock surge
By The Edge Malaysia / The Edge Malaysia
30 Sep 2020, 06:00 pm
Updated - 08:45 pm

main news image
This article first appeared in The Edge Malaysia Weekly on September 21, 2020 - September 27, 2020

ASTUTE market observers would have noticed on the local bourse a group of individuals, supposedly acting in concert, who have amassed shares in more than 20 publicly traded companies. These companies — linked via shareholding and directorships — are often on the most actively traded list, with huge, fluctuating share prices.

“It (the companies) is all linked to the same person; usually, the most actively traded list on a daily basis involves these counters,” one source says when asked which are the companies that are linked.

NVIDIA

Forecasted High Price: 1,187.4 Minus Forecast Low Price: 298.3

Buy Zone: 298.3 to 520.6
Hold Zone: 520.6 to 965.1
Sell Zone: 965.1 to 1,187.4
Current Stock Price of 853.64 is in the HOLD Zone.

Yields jump, futures plunge.

Core CPI YoY 3.8% vs 3.7% EST.

(March Inflation data hotter than expected)

Interest rates differential between US and Malaysia widen.

US$ will strengthen against the MYR.

For every transaction, there is a seller and there is a buyer. The seller thinks the share price will go down in future, the buyer thinks the share price will go up in future.

The rational investor, analyses the business of the company and comes to an intrinsic value for this stock. Then he/she acts accordingly, and to him/her, rationally. :-)

Price has risen a lot over last 2 weeks.

pang72 is bullish
calvintaneng is bearish

34.500

Volume 217,300
VWAP 34.459
Change 1.140 (+3.4%)

Trade Value 7,487,918

7.6.2012

Here are some examples of KLSE listed companies that have grown their earnings over the last 5 years. Their earnings (green lines on the chart) have doubled or almost doubled over this period. Therefore, assuming you have paid the fair PE for these stocks, your capital appreciation on the stock price would likewise have shown the corresponding gains. Investing can be as simple as this: invest into good quality growth companies at fair or bargain prices, and holding them forever, unless their business fundamentals deteriorated permanently.

Stock Performance Chart for Dutch Lady Milk Industries Berhad

Stock Performance Chart for Padini Holdings Berhad

Stock Performance Chart for Petronas Dagangan Berhad
Lastest EPS of PetDag was 91 sen.

Stock Performance Chart for Nestle (Malaysia) Berhad

Stock Performance Chart for Guinness Anchor Berhad

Stock Performance Chart for LPI Capital Berhad

Stock Performance Chart for Public Bank Berhad

Stock Performance Chart for Guan Chong Berhad
Guan Chong has shown rapid growth over the last year.
Do not expect this growth rate to be sustained at the same level.
It doesn't have the same level of quality as the other companies above.


How many of these stocks do you need in your portfolio?
Over-diversification will lead to attenuation of your potential gains in your portfolio.

THURSDAY 7 JUNE 2012

The Reasons You Should Invest in Quality Growth Companies for the Long Term. Illustrated examples.

The reasons you should review your philosophy and strategy in stock investing:

1. You can create wealth only by adding value to resources or by providing a service of value.
2. Only investments in active businesses are capable of adding value.
3. Owning a business, though very rewarding, is expensive and risky; but owning shares in a variety of successful businesses eliminates most of the risk while retaining most of the reward.
4. Buying the stock of quality growth companies and holding it for the long term provides substantial, predictable returns.
5. Short term trading (BFS/STS) is unpredictable and stacks the odds against you, because it relies upon winning at some loser's expense and because there's no assurance that you won't be the loser.
6. The benefits of long-term investing include carefree portfolio maintenance, the potential to double your money every five years, the deferment of taxes, and the fact that there are rarely any losers.



Let's review the simple mathematics that makes this method work:

1. Assume that 15 times earnings is a fair multiple for a good company and that the company earned $1 per share last year.
2. You will therefore pay $15 for the stock.
3. In five years, the earnings will have grown to $2 per share.
4. At 15 times earnings, the price will then be $30.

The value of your investment will have doubled - in five years!


Hopefully you're satisfied with the logic behind this investing approach and can see its advantages.

Let's dispel any doubts you might have about whether you can be successful.



The best way to minimize the risk is to invest in good quality companies for the long-term, expecting not to make a killing but to earn as much as good quality companies are capable of earning for their shareholders.

I have committed many mistakes and errors too. These resulted in permanent losses. Learning from these mistakes is humbling and yet rewarding.

By always focusing on the risks and the downsides ( keeping losses small), the upside takes care of itself.

WEDNESDAY 20 SEPTEMBER 2023

Comparing Farm Fresh with Dutch Lady
Market cap of Farm Fresh (RM'000) 2,283,742

Market cap of Dutch Lady (RM'000) 1,433,600


Farm Fresh
Adj PER – Latest 45.35
Dutch Lady
Adj PER – Latest 14.03

Performance Info
Farm Fresh
ROE - 5 Yr Avg10.56
ROE - Latest FY 7.94
Dutch Lady
ROE - 5 Yr Avg 62.91
ROE - Latest FY 11.66


Farm Fresh
Latest YR D/E 0.55
NAB/Share (RM) 0.34 Latest PX / NAB 3.59
EV/EBITDA 25.43
Dutch Lady
Latest YR D/E 0.02
NAB/Share (RM) 6.20 Latest PX / NAB 3.61
EV/EBITDA 14.72

FOMO - fear of missing out. (BUYING IN A RISING MARKET driven by GREED)

FOCO - fear of crashing out (SELLING IN A FALLING MARKET driven by FEAR).