"While emphasising that the global market demand for rubber gloves has seen single-digit growth y-o-y over the last few years, Wong is not expecting a significant rebound in the group’s performance for FY18." Gloomy outlook by the management themselves. If TopGlove wants to acquire a former manufacturer, i think companies like Mediseram will be a better target than ESCeramics...

I have a slightly different point of view that I would like to hear your responses.

1) Global oil inventory is declining although the persistence of its decline is still open to debate
2) Assuming an upward trajectory for US interest rate, capital financing will be more costly that the degree of cash flow-burning operation by shale oil producers will reduce
3) Ongoing geopolitical risk in the Middle East and the Opec "put" although the latter is rather weak in this cycle

I am not implying that crude oil price will continuously go up but rather the turn of the cycle may be close. I hope to hear your opinions and feedback including Probability's

Thank you for the good write-up KC. However, I have a few question in mind I would hope to be able to receive your clarification:

1) What is the basis for your assumption of 12% growth rate during the supernormal growth period?
2) How did you come up with 30% reinvestment rate during the supernormal growth period?
3) Is it prudent to assume the profit margin for year 6 (which is eventually used to derive the terminal value) is the same as the profit margin for the supernormal growth period? My concern lies primarily in the industry dynamics (i.e. competition, currency, cost escalation etc..)

https://cilisos.my/this-village-headman-from-sarawak-wrote-a-heartbreaking-letter-to-the-pm-of-japan-why/ charismatic leader..

i guess syndicate was pushing this up yesterday...

TopGlove has their own former production facilities now and TG was never a customer of ESCeram. In addition, ESCeram does not pose any threat to TG and at the same time does not offer any synergistic benefit for TG given its miniscule size..

@tkt66

a) I took a focused approach whereby I only want to look at their palm oil plantation business since their property business as of 2016 was really small although it is expected to be bigger due to completion of their various Property Development projects. Simply speaking, I personally have no grasp of their future direction with their property segment which is why I try not to put a hard figure for it.
b) Acquisition of additional shares in an associate is 0 in 2016
c) I must have left out this figure by accident as it was a very small figure
d) Same mistake with (c) I apologize for these mistakes

Acquisition net of cash should generally be included in capital expenditure requirement because some companies grow through acquisition instead of investing into new property, plant and equipment. The reason it should be net of cash is because you are acquiring the enterprise (i.e. you acquire the counter-company's debt and cash too so the total price paid is actually market cap + total debt - total cash).

The decrease in trade payables (516091) is just the result of SOP's management of their working capital. It can be because the late payment interest charges are about to be commence that motivate them to pay off the account payable or it can be of other reasons too. I can't confidently say I will know "WHY" they decided to pay off those payables.

If you read page 20 of 2016 annual report, you can see that the company acquired ShinYang with a combination of different financing strategies. I may not be 100% right but these are my takes on this company.

https://klse.i3investor.com/blogs/kianweiaritcles/133059.jsp interesting

there is topline growth but any idea why the profitability margin is decreasing over the decade? No doubt the management is very competent

Not quite. Given 2017's performance, this business is quite overvalued especially when comparing to its stellar 2016's performance. No doubt the company has secured a sizeable orderbook but the slow execution is a little worrying and since I am not a property market expert, my reference to Frank Knight's real estate report doesn't point to a rebound in luxury real estate yet (no clue about the actual sentiment). Moreover, their cost is increasing I believe due to escalation of MDF price which if i remember correctly some manufacturers pointing out (Evergreen Fibreboard...etc..). KUBIQ on the other hand hasn't showed any significant success. No doubt the business model is quite decent but the entry point may not be the best. However, this is just my personal opinion, feel free to express yours

they fairly revalued their investment properties which resulted in revaluation gain in their accounting earnings. Stripping that off gives you the core earnings unless u view their property investment activities as part of their core business too.

2017 2016
Profit before tax 25008 61987
Write back of provision -5241 -1198
Gain & loss from disposal 0 -28844
Investment P. Adjustment -6089 346
Adjusted Profit before tax 13678 32291
Adjusted EBIT per share 4.2 cents 8.7 cents

Even after removing the one off gain from land disposal in 2016, 2017 EPS is still lower than 2016 EPS.

can you share your opinion on their aggressive acquisition strategy? It seems that these aggressive acquisitions are draining the free cash flow and there is no indication that the management will stop these inorganic growth strategy No doubt earnings will increase but their profit margin itself has been declining since inception

Price of palm oil product fell QoQ% by 10.7% and price of palm kernel products fell QoQ% by 35% but revenue increased by 9% and operating profit increased by 44%. Given the age profile of their plantation, this company is going to be generating huge amount of growth especially when CPO price experiences a turnaround

@yoona8904 Taiwanese got one of the highest divorce rate in Asia i think
http://focustaiwan.tw/news/asoc/201606040016.aspx
but i like Focus Lumber Berhad busines tho

it's his wife selling tho. maybe they are getting a divorce haha

566700 units sold so far, with the biggest seller being a 201600 units seller. The rest are medium or small fish. I believe the lower production volume is not due to lack of market demand but rather a temporary disruption from their physical shift in operation...same goes to increase in operating cost.

insiders keep accumulating at retailers' ignorance...

sellers did not even noticed the remarks and how cash flow from operations still remain the same...

thank you @enning22 for the extra information. I totally agree about the Indonesian production fear plus Indonesia has been seizing bigger market share over the years. In my own opinion, SOP is highly undervalued and found a bottom already

thank you for your support and feedbacks :)

Agree, it seems to me like their margin is so small that the inventory value consist a huge part of their revenue figure...

Lotte Group is well known in South Korea for being a notorious company that does shady things. Sadly, it is one of the reason why their parent company in Korea is being undervalued based on what I've heard despite their profitable operation...

total RV shipments in 2017 June is 18.3% higher than 2016 June

Kian joo faces decrease in demand for their products, milk powder price up, sugar price up, tin price up, aluminum price up