KUALA LUMPUR (May 22): Hong Leong IB Research has downgraded the woodbased manufacturing sector to “Neutral” (from Overweight) and said that 1Q18 earnings will be weaker (both year-on-year and quarter-on-quarter) mainly due to (i) new implementation of foreign labour levy, (ii) rising crude oil price, (iii) stronger ringgit vs US Dollar, and (iv) long festive season (Chinese New Year).

In a note today, the research house said it removed its positive stance on HeveaBoard Bhd and Evergreen Fibreboard Bhd as the particleboard players are impacted by ongoing intense price competition.

“The higher packaging, coating and labour cost will also pressure furniture makers in the near future.

“In view of continuous hike in cost and slowdown in expansion plans in the sector, we downgrade the sector to Neutral from Overweight,” it said.

http://www.theedgemarkets.com/article/hlib-research-downgrades-woodbased-sector-neutral

Geary, you always share those articles, I thought you are deep value investor? Good luck.

Bought at 1.60 sen. Finally join the boat.

Dividend received, thanks!

THE national infrastructure for digital terrestrial television (DTT) broadcast should achieve at least 95% population coverage by the end of the year, says MYTV Broadcasting Sdn Bhd executive chairman Syed Md Najib Syed Md Noor.

Newly appointed Syed Md Najib tells The Edge in a brief phone conversation that 36 of the 60 transmission towers needed nationwide are already in place.

“When we started relooking at some of the sites, a small number was found to be not suitable and we had to find alternatives,” he says, explaining the delay.

“If you look at the analogue broadcast at the moment, the coverage is approximately 95%, so we are only 3% away from that.”

The infrastructure readiness is vital to complete Malaysia’s transition to fully digital television broadcasting.

The previous deadline to hit 98% readiness was June 30, 2018 — the analogue switch-off (ASO) date after which all analogue broadcasting in Malaysia would cease.

However, in March, the government said the June 30 date would be deferred without specifying a new date, only noting that the rollout must be in tandem with that of Malaysia’s close neighbours.

When asked about his mandate, Syed Md Najib says his role to ensure MYTV’s direction aligns with that of Altel Sdn Bhd, a telecommunications firm owned by Tan Sri Syed Mokhtar Albukhary.

Syed Mokhtar also controls Puncak Semangat, the holding company of MYTV, which is spearheading the DTT rollout.

Syed Md Najib says the convergence of both broadcast and broadband is inevitable. He denies that his appointment is meant to supersede the mandate of current MYTV CEO, Michael Chan.

He declined to comment on whether MYTV is arranging financing.

Another question hanging over MYTV is why the distribution of free set-top boxes (STBs) to 4.2 million households eligible for the government’s 1Malaysia People’s Aid (BR1M) has been halted indefinitely.

Approximately 500,000 free STBs have been distributed to eligible households, with another 3.7 million or so units remaining.

When asked, Syed Md Najib says the deferment of the ASO presented an opportunity to review the specifications of the STBs.

He adds that due to rapid technological advances, newer STBs are now available with more features such as internet connectivity and the capacity to deliver internet-based content to viewers.

He adds that the company is confident the remaining 3.7 million units can be distributed to eligible households by year-end.

“We are working with MCMC on finalising the desirable specifications,” he says. “We are waiting for the final go-ahead on that.”

He adds that to facilitate the distribution speed, there is a possibility that the STBs may be sourced from multiple vendors.

On Jan 23, Green Packet Bhd announced it had inked a contract with MYTV to supply up to 3.6 million decoders over a two-year period from the date of signing.

In its annual report released last week, Green Packet said the contract is worth RM272 million and that the 3.6 million decoders will be distributed to selected Malaysian households under a government subsidy programme.

http://www.theedgemarkets.com/article/minimum-95-readiness-yearend

KUALA LUMPUR: Matrix Concepts Holdings Bhd is teaming with two Indonesian companies, among them a JV owned by Salim Group, to look into the possibility to develop an Islamic Financial District in Pantai Indah Kapuk 2, Jakarta.

The company said on Tuesday it had inked an MoU with PT Bangun Kosambi Sukses (BKS) and PT Nikko Sekuritas Indonesia (NSI) to jointly undertake the project.

BKS is jointly owned by Agung Sedayu Group and Salim Group, which is involved in the property development of PIK 2 Sedayu Indo City Indonesia. NSI is an investment banking firm.

Matrix Concept said the MoU was to create a platform for the parties to commit their intention and to strengthen their mutual understanding to undertake the project.

“The proposed Islamic Financial District, is initiated by the Indonesian Government in their quest to position themselves as an Islamic Financial District in view of their large Muslim population,” it said.

Matrix Concept said the definitive JV would affirm its first step to establish its presence in Indonesia, being one of the biggest and growing markets in Asean.

https://www.thestar.com.my/business/business-news/2018/05/15/matrix-concept-plans-islamic-financial-district-in-jakarta-with-salim-group/

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1057290

Bought at 0.76 sen.

KUALA LUMPUR (May 7): Industrial chemical distributor Luxchem Corp Bhd is targeting a 10% year-on-year revenue increase for the current financial year ending Dec 31, 2018 (FY18) as the group contends with foreign exchange fluctuation and higher crude oil prices.

Luxchem managing director cum chief executive officer Tang Ying See said fluctuation in foreign exchange rates will remain a key factor deciding Luxchem's future performance. This is because the company's purchases and exports are mainly denominated in US dollars.

He said higher crude oil prices are expected to hike Luxchem's raw material cost, which could be passed through to customers. "Orders are done on the basis of monthly negotiations," Tang told reporters after Luxchem's annual general meeting here today.

"We have potential, it's just other variables such as competition and market scenario. But at least, we have capacity to achieve that [growth], we think this year should be better than last year, barring unforeseen circumstances," he said.

For FY17, Luxchem reported a lower net profit at RM40.75 million compared to RM43.5 million a year earlier. Revenue rose to RM806.68 million from RM701.55 million, the company said.

https://www.theedgemarkets.com/article/luxchem-targets-10-revenue-growth-fy18

Stupid SLP announced wrong figure in the Bursa.
PAT is 5170, NOT 1,272 (total comprehensive income).

我不买REIT，不过KIP股息率确实很诱人

也对，Steve Job去世后至今竞争对手仍未能超越苹果

Whole year impairment loss on receivables is 8.41mil (mostly came from F&B division), look at AR2017 pg 114 Debtor Ageing Analysis, they fully impaired those more than 1 year overdue which supposedly shld do so in FY2016 actually.

The Management already done they shld done. If they able to recover back the bad debts, that's extra income to them. Hopefully they shld stringent the customer collection pattern and monitor closely the overdue credit term.

Extracted from AR2017:

Ara Sendayan

BSS’ first hilltop development, Ara Sendayan is set across 78.5 hectares of land, with a GDV of RM900 million and comprises 1,300 units of residential homes to be built over four (4) phases. Adira Terraces, Phase 1 of Ara Sendayan consisting of 269 units of 2,398 square feet link houses saw strong take up during its launch. The overall development is targeted to be fully completed in the next three (3) years.

With an average take up rate of approximately 80% worth RM489 million, the overwhelming response received at our projects clearly demonstrates that Matrix has put in place the right strategy in delivering well-designed, affordable homes for the general public. This has spurred the Group to launch a pipeline of new projects, consisting of both affordable and premium properties amounting to RM778 million in the next 12 months.

This high-premium project is worth 1,400 units x RM609,888 = RM854mil and the Group just started to recognize sales in recent quarters, can imagine this is new pipeline for these 2-3 years.

Matrix Concepts to complete project by next year

SEREMBAN: Matrix Concepts Holdings Bhd expects to complete the development of its Ara Sendayan project here, comprising 1,400 double-storey link houses, by next year.

Managing director Datuk Lee Tian Hock said the residential project sprawled over 78 ha was being developed in four phases.

"We have launched two phases comprising more than 800 units, and the 400 units in the first phase have been fully taken up,” he told reporters after launching the company's sales gallery, Matrix Galleria @ Ara Sendayan, yesterday.

Lee said the opening of the gallery would enable potential buyers to choose their dream houses in a comfortable environment.

"I am confident that the houses in Ara Sendayan will be fully taken up due to its higher-ground location and reasonable prices, which begin at RM609,888,” he added. — Bernama

https://www.thestar.com.my/business/business-news/2018/04/23/matrix-concepts-to-complete-project-by-next-year/

@ sosfinance
For the Semenyih, Melawati & Kwasa Land, my record is this's future development project, not specified it will be launched in FY2019.

Based on their latest QR using "sluggish" this word to describe current property market, maybe you need to fine tune again the Gadang property division earning power.

Do you aware that Liihen to spend RM20mil to acquire new subsidiary (Domain Partners S/B) in Nov 2017 and subsequently proposed to acquire 1 plot land in Parit Jawa, Muar cost about RM6.3mil?

Greater return on growth in future or consistent generous dividend payout depends on different people interpretation.

jv1758 Past few dividends (except Special) has been 4 sen but now drop by 25% to 3 sen. Even though 1 sen is no big deal but look at the sudden change. Exercise caution.
02/05/2018 17:15

RM15mil is not the mushroom target revenue pls.

Extracted from MD&A pg 6, AR FY2017:
In FYE 2017, the Group invested about RM15.0 million in equipment, research, training and knowledge transfer for its venture in the cultivation of Eryngii, or more commonly known as king oyster mushroom.

DualShock Good news if new RTA plant start production or more & more orders coming from Japanese Market..
Mushroom Target Revenue RM15mil = Good contribution to Hevea 2018 bottomline..
02/05/2018 16:36

这篇根本是照抄文告而已，没有自己的想法吗？

Weaken USD can be addressed by sales volume boost or capacity expansion/growth. Major issue is rising raw materials cost & labour cost cause them unable to pass-on cost to customers with immediately effect. Generally it will take 3-6 months for the selling price lagging effect. Good thing is Homeriz having high product margin, that's why they wont making loss, but making lesser profit for temporarily time only.

People always look at profit performance only but even din know to read its financial position:

Financial Position:
- Gadang NTA improved to RM1.03/share (3Q17: RM0.91/share)
- Current ratio of 3.24 means working capital is very healthy
- debt/equity ratio is 0.41 due to loan & borrowings increased to RM284.28mil for financing of investment property in Damansara Perdana of RM45mil, projected expenditure for concession assets in Indonesia, CAPEX in construction & property development division

Prospects:
Construction division: RM1.59bil outstanding order
Property division: RM134mil unbilled sales. Currently they have total land bank of 442.20 acres or RM3.89bil GDV.
Utility division: Main hydro project in Indonesia is expected to generate income by 2nd quarter of FY2019

Others:
Capital commitment: RM141.5mil for the balance of acquisition for 2 parcel land in Pontian, Johor.
Corporate exercise: Acquisition of 49% equity interest of Datapuri as announced on 16/4/18

A bit upset that they are using "sluggish" this word to describe current property sector. But pls, if look at single construction division only, does the market fairly reflect its true value based on its solid balance sheet and huge order on hand?

Bought at 0.77.

Congrats to all shareholders!

芒格说：股市不是预料别人心理的地方，因为人心难测

Bonus issue ex-date on 26 Apr 2018, entitlement date on 30 Apr 2018 and will be reflected in the Bursa on 2 May 2018.

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1050263

Gadang acquired remaining 49% equity interest of Datapuri S/B for cash consideration of RM2.5 million. Thus, Datapuri would be wholly subsidiary of the Group.

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1050360

从来我们不看是不是被时代淘汰，只看是否真材实料

Tan Sri Kok Onn is very busy to sapu while you guys saying this is lousy stock XD

Last Friday, Gadang closed at 81.5 sen per share, its lowest point since July 2016. That marks a 28.95% drop since the start of the year.

At the time of writing, its price-earnings ratio (PER) stood at a meagre 3.62 times. The share price drop has pushed its yield to 3.7%, according to Bloomberg data.

Back in January, when the PER was roughly double at seven times (share price at RM1.14), RHB Research called the PER level “undemanding” and “unwarranted”.

It cited Gadang’s RM1.6 billion in outstanding construction order book, which should sustain earnings for the next three years. Meantime, its lacklustre property business was already priced in at the time, RHB said.

Gadang is vying for contracts from the Light Rail Transit Line 3 project and Pan Borneo Sabah highway construction to replenish its orderbook.

All three research houses tracking Gadang have buy calls on the stock, with target prices between RM1.48 and RM1.69.

http://www.theedgemarkets.com/article/small-and-midcap-firms-watch-out

Big fish & investment bank has huge capital, we as small fish only have limited bullet. Anyway, buy or sell is own decision.

Hi Godhand I agree with your point. That's why I rather waiting for 18Q1 result first. Of course always good to buy low if you wish to hold it for long term.

Before corporate exercise, the highet share price is about RM3.22, which is equal to RM1.28 after share split & bonus share. Compare to recent lowest price at RM0.80, it dropped by 37.5% in 3 years time. But need to check again how much mother shares being increase following the conversion of warrants to shares.

http://www.theedgemarkets.com/article/labour-shortage-weighs-earnings-heveaboard

Stay tune, I wish to wait for FY2018 1st QR first.

神鬼都是他

Tan Sri Kok Onn keep average down his cost although under closed period.

Green Packet sees 3.88% stake traded off-market

KUALA LUMPUR (April 5): Green Packet Bhd saw 3.88% of its shares traded off-market today, via two separate transactions at 19.5 sen a piece totalling RM5.69 million.

The shares were purchased at a 39% discount to its closing price of 32 sen.

According to Bloomberg data, the first block consisted of 26.5 million shares or 3.53% of Green Packet’s share base, while the second block of shares comprised 516,550 shares.

The parties involved in the transactions were unknown at the time of writing.

The company had reported a net loss of RM2.62 million for the fourth quarter ended Dec 31, 2017 (4QFY17), from a net profit of RM451,000 a year earlier, amid lower revenue, higher finance cost, as well as associate losses.

Quarterly revenue fell to RM97.79 million, from RM109.66 million.

Its unaudited net loss for the year stood at RM16.62 million, versus a net profit of RM70.69 million a year earlier, while revenue fell to RM356.97 million from RM366.25 million.

https://www.theedgemarkets.com/article/green-packet-sees-388-stake-traded-offmarket

Does it mean some party is looking good to Green Packet? But that's unfair to us which buy at fair value price!

The Board and Management also same with us own and buy shares, do they think:Shit, labour issue yet to settle, really jialat la this time. But fine, I love Hevea very much so I want pay cash to buy more shares since share price is so cheap now. Don't you know?

Hi Free2invest, the interesting part is FY2017 EPS dropped by 5.33 sen or 31% compared to FY2016, but DPS slightly dropped by 0.30 sen or 4%.
FY2017 finance performance is the worst in these 3 years (PAT FY17: RM64mil, FY16: RM81m, FY15: RM74mil). Based on current solid financial position, I would think they can achieve better results for FY2018. You may calculate again the prospects & risk to make up your own decision. :)

Dividend yield is 0.068 sen/0.70 share price = 9.71%, very attractive~
and current share price equal to 16% discount to NTA per share of RM0.83 as at 31.12.17
Others - EBIT/EV = 24%, ROIC = 18%

QR to be released by Homeriz in this month is very important as it gonna reveal how's that furniture industry performance by latest.

Malaysian Furniture Exports Hit RM10.13 Bln In 2017 - Mah

MUAR -- Malaysia’s furniture exports increased to RM10.13 billion last year compared with RM9.52 billion in 2016.

Plantation Industries and Commodities Minister, Datuk Seri Mah Siew Keong, said wood-based furniture constituted RM8.05 billion of the total exports.

“The United States is the largest importer of Malaysian furniture in 2017 valued at RM3.59 billion, followed by Singapore (RM790.1 million), Japan (RM785.6 million), Australia (RM710.5 million) and the United Kingdom (RM476.1 million),” he said at the media conference after the launch of the Muar Furniture Park and the Bumiputera Furniture Entrepreneur Scheme Programme (SuperBumi) in Bakri, here today.

The launches were officiated by Prime Minister Datuk Seri Najib Tun Razak, and also present were Minister in the Prime Minister’s Department Daruk Seri Dr. Wee Ka Siong and Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.

Mah said the SuperBumi programme, which was initiated by the Malaysian Timber Industry Board in strategic cooperation with the Muar Furniture Association, involved non-Bumiputera furniture companies training Bumiputera participants.

“The SuperBumi programme is a win-win situation and last year, 10 participants were involved in the programme, and this will increase to 100 in 2018.

“I am sure this programme will continue on a larger scale and I encourage more Bumiputeras to join SuperBumi,” he added.

Meanwhile, Mohamed Khaled said Muar’s potential to continue to emerge as a global furniture player is increasing as there are now around 700 factories exporting 6,000 containers of furniture monthly.

The Menteri Besar said that based on this achievement, together with Muar’s contribution to the furniture exports of both Malaysia and Johor, the state government had undertaken a comprehensive initiative to strengthen the furniture sector here.

“The government’s efforts to emplace all factories within the Muar Furniture Park is an integrated solution to the problem faced previously by establishing an industrial zone that is clean, orderly and according to standards.

“Following our earlier plans, the Muar Furniture Park will have around 230 industry lots equipped with infrastructure such as roads, street lights, telecommunications system, water and electrical utilities as well as high security standards,” he added.

http://www.malaysiandigest.com/news/731100-malaysian-furniture-exports-hit-rm10-13-bln-in-2017-mah.html

Muar Furniture Park to be game-changer for local furniture industry

MUAR: The development of Muar Furniture Park in Bakri will be a game-changer for the local furniture industry and will boost the industry further.

Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said the park forms part of efforts to improve the export of local furniture and ensure that the industry will continue to grow.

“The park is the first of its kind as all the facilities needed by the industry would be located in one place. This will turn Muar into the centre of the furniture industry in Malaysia,” said Mah.

He said last year, Malaysian furniture exports stood at RM10.14 billion, a 6.4 per cent increase from RM9.53 billion recorded in 2016.

“Malaysian furniture is known for its quality and competitive prices. The development of the park would ensure the industry’s continued growth,” said Mah.

He was speaking to the media after the opening of the park by Prime Minister Datuk Seri Najib Razak.

Also present was Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.

The park is being developed by TPM Technopark Sdn Bhd, a subsidiary of Johor Corp, on a 399.2 hectare land in Bakri.

It is expected to be completed in two years.

At the event, Najib also launched the Bumiputra Furniture Entrepreneur Scheme (SuperBumi).

SuperBumi is a programme to train Bumiputra furniture entrepreneurs who would eventually become vendors in the industry.

It is a collaboration between the Malaysian Timber Industry Board and the Muar Furniture Association.

Mah said the programme would create a win-win situation for all parties.

“The industry is currently dominated by Chinese companies. With this programme, we would create more Bumiputra entrepreneurs in the industry who would eventually become vendors and suppliers for the existing companies,” said Mah.

https://www.nst.com.my/business/2018/04/352512/muar-furniture-park-be-game-changer-local-furniture-industry

Tan Sri Kok Onn very busy, keep makan own shares every day/week

Yea agree. To look at when the downtrend will slow down.

Will be delighted if Jaycorp can win any package for Sabah Pan Borneo Highway, although the possibility is very low.

http://www.theedgemarkets.com/article/pan-borneo-highway-job-awards-out-soon

Been told that Kimlun does not have intention to bid for Sabah Pan Borneo Highway. Instead, will be interesting which company will be awarded for this tender?

http://www.theedgemarkets.com/article/pan-borneo-highway-job-awards-out-soon

妹妹很漂亮下

A bit surprise. Hevea is so generous to pay 6.8 sen dividend compared to last year 7.1 sen (dropped by 4.2%), even through PAT dropped by 20.3%. Good dividend yield may possible push share price to RM1 level.

From Aug'17 to as at today, 18.29 mil units warrants exercised and bring cash inflow of RM4.57mil to Hevea. At the same timing, Hevea bought back 692,000 shares with consideration paid of RM763k.
The both exercises resulted that:
1) net cash inflow with RM3.81mil from open market
2) buyback action does not improve much EPS as it represented 0.23% of adjusted shares only.

We can't stop the management to buyback as they get shareholder approval to buyback max 10% own shares in last year AGM. Those against this, pls attend the AGM this year and voice out your opinion.

Thanks.