HL Rubber Industries Sdn Bhd is making RM8m net profit in 2015. Vendors giving RM10m profit guarantee collectively for 2018-19. At RM33m for 55% stake, that works out to 12x PER (based on profit guarantee), and 7.5x 2015 P/E.

Buy buy buy! Monday will go up

Gogogo

Oh wow RM 8.6b contract. 5% margin also equal RM 430m in profits over 4 year.

@Jackielee22 what's on 21st dec?

how long is the another round?

Heard some announcement is expected today. e-wallet?

Bet the ranch?

What announcement tomorrow?

Habis. Looks like they lost a major part of their revenue stream.

The Board of Directors of RMH (“Board”) wishes to announce that Rhone Ma Malaysia Sdn Bhd (“RMM”), a subsidiary of RMH, had on 12 December 2017, received a signed amendment dated 8 December 2017 to the distribution agreement dated 7 November 2000 between RMM and Merial (as amended on 31 July 2001, 31 January 2003, 6 June 2003 and 23 July 2014) to replace the current products list with a new products list which excludes swine, poultry, ruminant and veterinary public health products (“Excluded Products”) (“Amendment”).

Currently, RMM is the distributor of Merial products comprising products for swine, poultry, ruminant and companion animals as well as veterinary public health products. Pursuant to the Amendment, RMM will continue to distribute companion animal products of Merial. In respect of the Excluded Products, Merial or its affiliate or any nominated designated third party shall be entitled in its sole discretion to repurchase the remaining inventory of the Excluded Products in the possession of RMM which meets the criteria specified in the Amendment.

In the event where Merial decided not to repurchase the Excluded Products, Merial shall inform RMM in writing and RMM shall use its best efforts:

(i) to sell all remaining inventory of the excluded swine, veterinary public health and ruminant products for the period up to 31 December 2017; and

(ii) to sell all remaining inventory of the excluded poultry products for the period up to 30 March 2018.

Notwithstanding the above, in the event that RMM, despite its best efforts, is not able to sell the remaining inventory as stated in (i) and (ii) above, Merial or its affiliate or any nominated designated third party shall have the sole discretion to purchase the remaining unsold inventory of the Excluded Products in the possession of RMM which meets the criteria specified in the Amendment at the price in accordance with the product list annexed to the Amendment.

In addition, RMM shall, as required and/or when requested by Merial, continue importation and sell the Excluded Products as annexed to the Amendment, up to when the marketing authorisation and/or all regulatory assignments and product registrations for the Excluded Products are successfully transferred to Merial and/or to its nominated third party.

The Amendment is not expected to have any material impact on the earnings of the Group for the financial year ending 31 December 2017 but is expected to have a negative financial impact to the Group for the financial year ending 31 December 2018 as the sale of the Excluded Products supplied by Merial collectively contributed approximately 31.54% and 47.77% of the total revenue and profit before taxation (excluding the one-off charge of listing expenses which amounted to approximately RM4.14 million) of the Group for the financial year ended 31 December 2016, respectively.

Notwithstanding the above, the Board is of the view that the negative financial impact would be mitigated by the following:

(i) the Company will explore options with other major international suppliers of animal health products for the distribution of their products for poultry, swine and ruminants;

(ii) the sales and marketing team will increase their efforts to market and sell other products particularly the in-house manufactured products; and

(iii) the Company will enhance its sales and marketing efforts to expand its market share in regional markets which have growth potential.

The Company also anticipates that upon the completion and operation of its new warehouse and GMP-compliant plant, the Company will be able to increase the volume of production and sales of its own animal health products.

This announcement is dated 12 December 2017.

Habis

Maybe big shark shaking people out before action

Just announced the hgpt acquisition. Huat ah!

Huat ah!

Think they will be able to get the chinese contracts? like ECRL, HSR, BM, etc? since citic backing them up? And citic got lots of cash to fund the working capital

Even if they don't get bandar malaysia, their JV with Citic should help to secure lots of contracts? Seems like chinese contractors are getting everything in Malaysia

Short term target price is 45-50 sen.

Strong close. Think another 5-10% to go by Monday. And RM3.50 TP in 1 year

Annualising this quarter earnings and the stock is 90m net profit. That means it's trading at 11x P/E. Quite cheap for a plantation / hospital company

Owh wow. a strong turnaroud. 22.5m net profit XD

Woah!! Affin report say this stock is worth RM1.70. The strategic investors CJ bought the stock at RM1.45.

Century Logistics is on the cusp of transforming from a total integrated
logistics pure play to an emerging parcel delivery provider by
leveraging CJ Korex’s strong parentage as Korea’s largest logistics
provider. Riding on the exponential growth potential in e-commerce
and the digitization of Malaysia’s retail economy, Century aims to
differentiate itself with high service quality and superior efficiencies in
automation. The merger with CJ Korex’s Malaysian operations could
yield significant synergies, increase product offerings and expand its
client base to underpin near-term earnings growth for its core
operations. We initiate coverage with a BUY and a 12M TP of RM1.70

https://researchnews.affinhwang.com/Research/DailyReports/20170519/Affin%20Hwang%2020170519%20CLH%20IC.pdf

Good asset. But big sharks get the most benefit from this - in terms of % of share ownership, and how much gains they made from up and down of the shares. MWSG should go to the EGM and question it, and SC should put a stop to this nonesense.

Sweetheart deal for the big sharks. Why the company don't issue the shares at 20 sen to the big boys, and can reduce the amount of shares by half. Less dilutive that way. Don't know why SC and the regulators approve this? Openly fleecing minorities.

Lol champion analysis

too bad fully loaded up already. Serba falling for no reason is such a good opportunity to accumulate. Low P/E, decent fundamentals and diversification seems a good thing, as it will provide recurring income. Dilution is also much lower than expected, as Affin said they only intend to hold 40% stake in the JV entity.

WHy you think 1Q will be good?

5.5 sen in 2017 according to Affin report

Good news coming soon? Then why stock price don't shoot up? Big shark pressing down price to buy more?

Agree with B4b4. My broker say this stock can make 100m profit next time. The market cap itself only less than 200m. No brainer to me.

Let's hope strong 2nd half

Wah. Heng sounds like a big shark. Me small small nibble only.

Gogogo

Morning all

Why the syndicate want to push the price down? To collect more?

This is the report that I read also. Just got it from my broker today.

Oo. is that a good thing or a bad thing? high volume sell means people is trying to control the price to collect the stock?

I got the report from my broker. Can't seem to find the news online.

RHB issues a report with FV of 42 sen. Woots