Liihen is going to acquire 1 plot of agriculture land with cost of RM10mil within this year.
Besides, they also acquired new subsidiary (Domain Partners S/B) with the cost of RM19.74mil.
Both exercises will be funded entirely by internally funds and this is the real reason why dividend slightly dropped in FY2017.
Long term investors shall welcome such acquisitions as it will convert long term growth & sustainability to get the better value & reward in the future.

Bought at 0.92.

Bought at 2.63.

Oops.. Megasale is coming.

Since you talk about China, I think JayCorp will benefit from carton box (China's sky blue policy) and taking advantages to get more sales directly to US actually (China furniture maker is facing shortage of woods). But again still come back to forex risk at that period even I know they did well of the hedging. Anyway, just sharing my view only.

Forex is one issue. High material cost is another issue plus renewable energy plant shut down 1-2 mths at the end of 2017 (both highlighted in last QR).

马来西亚加盟事业为什么停滞不前？最大的原因是加盟主什么都要赚，从天价的加盟费、装潢、食物、月营收等等。+1

But hopefully JayCorp prove I'm wrong.

Very agree that current price is undervalued. But look at other peers eg. Homeriz and Pohuat's latest poor results, I rather more conservative approach and waiting JayCorp QR release first.

Superln's main raw material is butadiene (sort of rubber).

I dun think Pacific-Mudajaya-JEC can win the MRT3 award but anyway this is good try to them.

Tan Sri Kok Onn continues to accumulate more while you people continues to shoot them.

CiPek Teh

Newsbreak: MMC-Gamuda-George Kent consortium, CCCC joint venture shortlisted for MRT3

TWO consortiums have been shortlisted for the coveted job of constructing the RM45 billion Klang Valley Mass Rapid Transit Line 3 (MRT3).

The candidates are the MMC Corp Bhd-Gamuda Bhd-George Kent Bhd consortium and China Communications Construction Company Ltd-China Communications Construction Company (M) Sdn Bhd joint venture (CCCCJV), sources say.

According to a source privy to the matter, Prime Minister Datuk Seri Najib Razak chaired a high-level meeting last Monday to discuss the awarding of the contract. Both consortiums were chosen based on their technical capabilities.

“MMC-Gamuda-GK and CCCCJV were shortlisted because of their technical capabilities, which met the technical requirements outlined by MRT Corp,” says the source. “The financing rate was also a consideration but it was not a deal breaker. The government placed higher weightage on technical capabilities and tunnelling experience.”

The MRT3, or Circle Line, will be completely underground, running through high-density areas in central Kuala Lumpur. The government approved the project on Oct 30 last year, and a briefing for the turnkey project contractor was held on Nov 15.

On Jan 19, Mass Rapid Transit Corp Sdn Bhd announced that four consortiums had submitted bids for the turnkey contractor role.

Besides MMC-Gamuda-GK and CCCCJV, the other candidates were the Sapura Group-Top International Engineering Corp (TIEC) and Pacific Construction Group Company Ltd- Mudajaya Group Bhd-Jaycorp Engineering and Construction Sdn Bhd (JEC) consortiums.

According to another source, Sapura-TIEC had the lowest financing rate of all the candidates, at 2.3% per annum, funded by a consortium of Chinese banks. MMC-Gamuda-GK offered a financing rate of 4.7%, while CCCCJV had secured financing at a rate of 5% per annum.

However, Sapura-TIEC was not shortlisted for the turnkey contractor role because their technical partner, Samsung C&T Corp, had yet to complete the Riyadh Metro project in Saudi Arabia.

Samsung C&T is part of a consortium led by Spanish construction group FCC and Alstom, which is building Lines 4, 5 and 6 of the Riyadh Metro. The total length of the three lines is 64.6km, with 26.6km running underground.

While Samsung C&T is not part of the Sapura-TIEC consortium, it has been named as the technical partner, as Sapura and TIEC do not have the technical capability and tunnelling experience, says the source.

TIEC is a civil engineering company owned by the Shaanxi provincial government. It was involved in the construction of the Xi’an Metro station and other public, industrial and commercial buildings in China, Asia-Pacific, South America and Africa.

“The government was being really technical with the requirements, which disqualified Sapura-TIEC and possibly Pacific-Mudajaya-JEC. Only the two shortlisted consortiums met the technical requirements, despite their financial rate being high,” says the source.

The technical requirements listed by MRT Corp stated, among other things, that the tenderer must have successfully completed civil works for either two urban metro projects worth at least RM5 billion each or one project worth at least RM10 billion on a design and build or turnkey basis.

MMC-Gamuda-GK will be funded by borrowings from local banks led by CIMB Investment Bank Bhd, to be raised by DanaInfra Nasional Bhd, says the source. CCCCJV will be funded by Chinese banks through US dollar-denominated debt, the source adds.

While the turnkey contractor role is supposed to go to only one consortium or JV, the source says the prime minister asked MRT Corp to see whether MMC-Gamuda-GK and CCCCJV could share the job.

“The PM asked MRT Corp to see whether there is a possibility, not that he wants both candidates to get the job. The contract value of RM45 billion is very big and this is a crucial project, so he doesn’t want it to be delayed or run into problems,” says the source.

Having two main contractors for a single project has been done before in Malaysia with the construction of the Petronas Twin Towers. Hazama Corp of Japan and Samsung C&T each built one of the towers.

And even though it has not been shortlisted, Sapura could still benefit from the MRT3 contract because its expertise in communications technology could give it a head start for the communications package of the line, say observers.

“If the government is serious about developing local expertise, capable local companies should be given opportunities to take part in large infrastructure projects such as this,” says an observer.

Pohuat 拖衰家

Shall be this Friday, same date as AGM.

Ken Holding fundamental is good. But price just dont move.

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1042192

OKA proposed to acquire new land to construct a new factory in Senai.
About RM26 per sqft. Is cheap to buy especially in the southern region.
But look back the Annual Report list of properties, OKA hold quite a lot of vacant lands on hand. Any strategies or future directions they are moving to?

Where the photos you took? is beautiful!

Ic. Is JTB awarded the contract to outsider. My apology.

I just realised that Johotin also have construction arm within the Group.
Awarded RM14 mil construction contract.

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1042220

You sell more, Tan Sri Kok Onn buy more. Kekeke.

Would be great if you could further explain or evaluate how good they are.
Won't too easy to justify the stock is good or bad if you just simply look at the chart only?

babihutanlol Gamuda and Suncon is better than gadang...
Gadang Chart still down trend
14/03/2018 18:18

Today price is RM0.95 vs NTA per share of RM0.99. I couldn't predict whether the price will further go down. But it is creating margin of safety now to lest downtrend losses.

https://www.thestar.com.my/business/business-news/2018/03/13/kimlun-eyes-rm600mil-to-rm900m-construction-jobs-in-fy18/

Market does not give the fair valuation to Jaycorp.

Fine. Grab @ 1.07.

Liihen made a good deal. The agriculture land is for factory expansion purpose, and just opposite the newly developed furniture estate of Bukit Bakri.
And cost only RM15 per sqft, is quite cheap.

Indeed very good result and another angpao dividend again. Thanks Dato Lee!

Some comments here:
The Board published in the AR 2016 that the total projected capex is RM48mil but look in the cash flows now, the total capex spent is RM58mil but there still got capital commitment of RM27mil as at reporting date. I suspect that they are doing additional investments to enhance more automation efficiency in RTA division to mitigate labor shortage issue. Since the Board saying that shortage of workers in RTA division is currently being solved, we can expect FY2018 PBT margin can be recovered back at double digit % (2017: 9.55% vs 2016: 14.49%)

Meanwhile Particleboard PBT margin also improved from 9.19%at 3Q17 to 13.10% at 4Q17. I would think the impact of rising raw material cost is being minimised as they can pass-on costs to customers due to high-graded product and value-added product. Currently RM/USD rate is stabilizing at 3.90. It can help those exporters to reduce the risk of forex fluctuation. But the main concern is overcapacity caused the production efficiency not achieved. It should be the big challenge to Hevea in the coming year 2018.

Unexciting of 1.6 sen dividend per share declared following the QR release, but investors should be patient to wait for final dividend to be proposed soon in April or May.

I agreed with you as I noted that OCK EBITDA margin is high as 18% for 9MFY17, almost double of PBT margin.
My concern is, the free cash flows look not so nice and debt to equity ratio is high. I would think that their cash flow is quite tight actually due to heavy loans & borrowings and capex proceeds.

xxxxxxxxxxxxxxxxxxxxxxx

sosfinance
(misconception of high PE. Normally for long term project, IPP, toll roads, water concessions, towerco, the capex is high (but come with >20 years contract from major telco), its initial years PE is very high due to gradual pay down of loan and high depreciation. About half of Shareholders' Funds or RM200m from rights issue and private placement is injected into towerco biz in 2016/7. It need some time to achieve its optimum tenancy ratio.)
24/02/2018 08:45

YTL Power International Bhd’s second quarter net profit fell 18.15% to RM136.49 million, from RM166.76 million a year earlier, upon dips recorded in a majority of its operating segments.

Earnings per share (EPS) stood at 1.74 sen in the second quarter ended Dec 31, 2017, compared with 2.15 sen in the previous corresponding quarter.

The group said in a stock exchange filing that its power generation (contracted) unit returned to the black with a RM14.42 million profit before tax from a RM26.11 million loss before tax.

The group's segments comprising multi utilities business (merchant), water and sewerage, and investment holding activities recorded lower contribution. Its mobile broadband network segment posted wider losses before tax at RM20.11 million from RM15.42 milliom previously.

Revenue for the second quarter grew 7.15% to RM2.64 billion from RM2.46 billion, the group added.

For the cumulative six months, YTL Power’s net profit slipped 14.16% year-on-year to RM268.95 million from RM313.3 million, while EPS fell to 3.44 sen from 4.05 sen.

Cumulative revenue climbed 8.61% to RM5.22 billion from RM4.81 billion.

Going forward, YTL Power said its power generation project in Indonesia is in a development stage and is expected to achieve financial close.

As for its 45%-owned Attarat Power Co — which is developing a 554 megawatt shale oil fired power generation project in Hashemite, Jordan — construction has commenced, with operations expected in mid-2020.

YTL Power said its multi utilities business expects the electricity market in Singapore to remain competitive due to volatility across global markets and generation capacity oversupply in the wholesale electricity market.

However, it will continue to focus on customer service, diversification beyond the core business into integrated multi-utilities supply and non-regulated ancillary businesses in steam sales, oil storage tank leasing, bunkering services and potable water sales.

As for the mobile broadband network business, YTL Power said it will come up with more competitive products to raise subscriber base to generate higher revenue, supported by the launch of its nationwide 4G LTE and Voice-over-LTE (VoLTE) services in the preceding year.

YTL Power's share price fell two sen or 1.64% to RM1.20 today, for a market capitalisation of RM9.41 billion.

You can keep track the GP margin quarter by quarter and you will know how well Superln is able to pass on cost to its customers.

Definitely Gadang is for long term play. I hold it near 3 years but price still hovering. But my reward is good dividend and bonus split/share :)

Do you think that there's hedging policy in place in 2016 only but not 2017 or 2018?
Anyway, policy is one thing, effective or not is another story.

Beza That was 2016. Not 2017 nor 2018.
23/02/2018 08:57

The Group is exposed to foreign currency risk on sales that are denominated in foreign currency other than the functional currency. The uncertainty on the movement of US Dollar against RM has posed a material impact on the Group’s earnings, performance, financial condition and liquidity. However in year 2016, the appreciation of US Dollar was to the Group favour compared to previous years. The Group has in place a hedging policy and costing mechanism to monitor currency fluctuation.

Extracted from Liihen AR2016 pg 8.

Forex effect shall be included when calculating the core operating profit. This is because revenue & purchases registered with higher or lower forex rate will be subsequently addressed by realised & unrealised forex loss or gain at the certain period, which give us clearer overall picture.

People keen to find out the threats/risk, I'm looking for opportunities/strength.

Liihen registered the second highest revenue of RM185mil, slightly lower than 3Q17 of RM190mil. And inventories balance is at RM88mil, up by 11% compared to 3Q17, in line with increase in trade payables by 16% at RM79mil. That's mean Liihen's customer order on hand still growing and increasing. And Liihen did diversify its market base to avoid over-rely on US market. You may check that Malaysia and Asia market improved by 50% and 20% compared to FY2016 from the Segment Information.

And don't you think while most of the exporter companies suffered troubles for the increase in material costs and unable to pass-on cost to customers, that's only 2 main risks to Liihen eg. forex fluctuation and increase in labour cost. And btw increase in labour cost and material costs, which impact is more critical to the manufacturers?

No buy or sell call, think yourself carefully.

Insurance claim already recognised in this quarter, amounted to RM5.857mil, almost offset against assets and inventories written off totaling RM5.925mil.

Jon Choivo For those looking quarter to quarter. Next one should be good, as we will get the insurance payout gain. And its back to full capacity production, with no overtime charges.

Fairly ok with the results. My expectations for the results is not high considering how cheap it is.
22/02/2018 18:30

Do note that this is just the special dividend which is extra given to all shareholders.
I cannot blame them so much because Liihen is one of few counters which able to declare dividend every quarter and special dividend in Bursa Malaysia!

With the upcoming possible good QR, at least 15 sen final dividend proposed and acquisition of companies completed by 4 March, Favco share prices could climb further higher.

@RainT you did not learn from mistake from the past. You worry before you did not do well homework on fundamental analysis.
Pls read and digest what Darkstar shares on the stock selection guidance. It's simple but effective.

Patience in the right path is the most important skill in the investing world.

http://www.malaysiastock.biz/Company-Announcement.aspx?id=1035221

EPS improved compared to same quarter last year, but look carefully, profit increased due to gain on disposal of diluted investment.
Anyway, delight to see revenue is keep growing.

I din mention about Chap Goi Mei, I mean is bai tian gong.
You aren't a Chinese, right?

Beza I think next Friday is the Chap Goi Mei, the peak pf CNY, not this Friday lah!
Are you a Chinese, btw?

Congrats to those collected below RM1.50. Looking forward for the coming QR next month.

This analyst have met with the Board so I guess they know the announcement date. Of course I wont trust them at all. Hahaha!
Btw, this Fri could be a lot people busy preparing for 拜天公. is the MD and his family hokkien lang?

Beza Hevea normally releases result on Feb 23/24. Since 24 is Sat, thus this Friday will see the result. You trust analyst so much? Ha! Ha! Ha!

Dont argue so much. 4Q17 figure will tell us the story. According to JF Apex securities, Hevea shall release QR on 27 Feb 2018. Let's see it!

https://klse.i3investor.com/blogs/kianweiaritcles/147569.jsp

李典和是位值得尊重的前辈