Is this result good? Foundpac should be the better performer

45% of the market cap of RM 200m is cash. The board should announce a special dividend or a share buy back if they have no good use of the extra cash.

Great result!

FPI getting the recognition they deserve. With China factories going offline, FPI might get more orders?

How is it stretched? Frontken 36x P/E, Vitrox 46x P/E, Penta 30x P/E

Foundpac will and should be rerated at higher P/E due to the lack of growing companies in Bursa

Thanks Philip. Learnt a lot today. Hope to see more sharing from you.

Is Vitrox and Penta competing in the same business?

Hi uptrending. Mind to share snippets of the report related to FPI prospect?

The interruption in China supply chain might benefit Malaysian EMS companies. PIE has gone up. FPI will be recognized as well.

At this price, I felt that PCHEM is reasonable. The new PIC plant will be using Naptha instead of natural gas. I have a feeling that margins might come down from the incremental output.

Philip, May I ask what is the long term growth prospect for PCHEM in both segments of their business? They just built one of the biggest refinery in the world. Further CAPEX seems unlikely to come from the plastic chemical business.

I love CCB. Went to see C300 AMG the other day. CCB offered the most competitive rate compared to other dealerships. They can even beat Hap Seng Star in price.

Is Krono not just an appointed distributor of Quantum storage products in South East Asia? This is the same business model as Prestariang who is an appointed distributor of Microsoft related products

Nonsense. As much as I love Salutica to be a TWS play, Jaybird is far from capturing market from AirPods. This is coming from an AirPods pro owner. AirPods is currently at the top of the pyramid especially among Apple product users

Who are the overseas competitors to Foundpac group?

Any books that I can read to learn more about analyzing and identifying quality companies? How do I understand an industry better? Information on an annual report is nuance

If you look at Kerjaya's revenue in the last four years, it definitely does not qualify as a growth stock. For the market to appraise this stock better, the orderbook has to grow substantially higher than the internal target of RM 1.2 billion at a consistent/year after year pace.

In my opinion, it is quite myopic to purchase Kerjaya shares on the prospect of few project wins. What the market wants is a company that can grow its orderbook substantially than the "guaranteed" RM 1 billion orderbook that the company could replenish each year.

How to achieve such growth rate?

Management has guided that they will not venture overseas. Besides, starting a construction company ground up in neighbour countries is not cheap and easy. Thus, Kerjaya business will most likely be limited in Malaysia only.

Will Kerjaya venture into different construction segment such as rail construction? Unlikely. Since the company has no expertise/competitive advantage in fulfilling such projects.

The future of Kerjaya will hinge largely on how well STP2A performs. If STP2A sold well, I believe Kerjaya could see at least low double digit growth in its order book on top of the customary RM 1 billion orderbook replenishment.

Hi Choivo, that was a very good article on chemical business.

Thanks for sharing with us.

Looks like the rally in plastic related companies have legs

Kerjaya is the most efficient construction company in Malaysia

While most construction companies make 5-7% net profit margin, Kerjaya commands a big fat 12-13% net profit margin that is twice its competitors.

Most analyst report highlighted Kerjaya Prospek's superior margin but they did not explore this subject deeper.

The reason why Kerjaya is able to command superior margin is because of the early adoption of Industrialized Building System where it had invested more than RM 100m into Mivan construction technology which was fully depreciated.

This IBS technology is an important competitive advantage for Kerjaya Prospek because it allows;

a) Faster construction speed where it takes only 7-10 days to build each level as compared to 14 days using the traditional method

b) Reduced labour force requirement by at least 30%

While IBS construction method is not a trade secret, competitors who are late to the game would have to sacrifice their margin by purchasing IBS building materials that are 5 to 10% more expensive than conventional building materials.

Thus, it is hard to compete with Kerjaya in terms of cost and speed of construction.

If a competitor uses the traditional building method, they will have higher cost and longer construction lead time. If a competitor tries to match Kerjaya in terms of construction speed using IBS, they have to sacrifice their margin even more.

This is a sweet competitive advantage to have.

The moment Warren Buffett is brought up, I knew people had lost the plot

The lost of RHB business is a significant one.

When management had to release Bursa announcement to placate the public, you know the business has to be affected in some way

Kerjaya has just announced two big contract wins early in the year. Yet, share price is only up few cents.

The market is pricing Kerjaya like a zero growth stock.

If Kerjaya orderbook exceeded last year’s, the market has to wake up.

Most importantly, E&O will launch its maiden project in STP2 in the second half of the year.

Kerjaya management holds a collectively 28% stake in E&O.

Kerjaya is a proxy to the growth of STP2 without the exposure to the huge debt and capital required for land reclaimation.

MPI secured new business from Bosch not long ago.

The new product from Bosch is a silicon carbide chip that will be used in powering electric vehicles.

Bosch claims 6% improvement in driving range when their chips are used.

Currently only Tesla is using silicon carbide chips in their vehicles.

Investors got to have some imagination to visualize a world where Bosch SiC chips are more widely used which brings more business to MPI from the current 10-15% level.

If Bosch SiC chips gained traction in the automotive industry, the market has to rerate MPI

All paper stocks gonna crash hard tomorrow

All it takes is a bonus issue for this stock to trade at higher valuation. One can only hope because Hong leong group doesn’t do bonus issues

Nobody could predict accurately when sentiment would turn.

The banking sector at a whole is trading at depressed valuation even lower than the financial crisis.

Since the financial crisis, local banks have buffed up their balance sheet with additional capital and instilled disciplined underwriting.

I would say the downside risk is limited from here due to the fact that banks are financially strong and the lack of interest from investing public.

As for the upside, it may never come. All it takes is BNM to loosen up and banks will see another spring again.

A few kawan here focused on interest rate movement which I think is shortermist.

Most banks has a cost plus business model. Any changes in interest rate will be adjusted in one quarter.

You want the best bank, invest in public bank and pay 1.8 times book value.

You want to make money, invest in an ugly duckling like ABMB and pay 0.7 times book.

If you are investing in ABMB on a thesis of well managed, conservative and growth bank, I think you are confused

Suzhou full plant capacity and orders from Bosch will be reflected in the next quarter.

Coupled with positive news flow from Apple and battery car manufacturers, MPI will be RM 16 in no time.

So far, no facebook bloggers had covered this stock.

Harry teo even cited its stagnant revenue growth

When facebook bloggers start to cover MPI, that is the best indicator to sell

https://www.fundsupermart.com.my/m/research/article/11463

How to drop below 2 ? ABMB loan loss coverage is one of the highest in the industry. Unless you are talking about ABMB carrying junks in its balance sheet

I recommend interested investors reading their analyst presentation slides.

Management guided impaired loans will come down in the next two quarters with the substantial improvement in Q4.

Next quarter results will be similar to the latest at sub RM 100m. We have six months to accumulate before the crowd discover about this fundamental change.

Alliance is no public bank. It is not the best managed bank in our country. Investing in Alliance bank is a bet on earnings recovery. With valuation at historical low, what seems to be a mediocre bank could be a good investment. First level thinking suggests Alliance bank earnings will continue to be affected by poor loan underwriting in the past. However, second level thinking would suggest Alliance bank had made a full provision and impairment of their riskiest loan and such provision would reduce in future.

Anybody looked into Redtone cash flow statement? The figure seems too simplilistic

This is an interesting exercise by the management. It reminds me when Citibank consolidated its shares back in 2010 or 2011. A share consolidation is often made to discourage share speculation and shrug off penny stock status. There must be a reason behind this move. For now, we can only monitor what they are trying to do.

Why is this counter going up everyday?

When I look at GHL, the company that has better scale and operational track record did not even inch up. If this rise was attributed to the government initiative of promoting ewallets, GHL should have moved together since it is an industry wide development.

Is Revenue taking market share off GHL? What is Revenue doing better?

FPI product portfolio does not include wireless headset yet. They do wireless speakers. Only Salutica does wireless headset I believe

PNB has sold out their stake in FPI. Biggest institution holder is currently Hong Leong Asset Management

How do you guys see the election? Which party winning is the best outcome for EWINT?

We should focus on FPI business instead of the buying and selling of major shareholders. For the next six months, expect FPI capacity expansion to bear fruit. Key surprise, if there is one, will come from the new plant next to Roland.

I am a firm believer of a prolonged trade war. The relocation of manufacturing services from China to the rest of the world is a mega trend. FPI will benefit from their close business relationship with Wistron.

Fundamentals has been reflected in the share price

The long term prospect for Salutica remain bright. This is due to the mega trend of consumers switching from wired headset to wireless headset. The recent popularity of Apple AirPods will further accelerate the adoption of any wireless audio accessories.

The share price has ran up quite a bit. However, the company has yet to deliver business wise on the back of an industry tailwind.

Cold eye entry price is around RM 0.50. The key to making money in this stock is when the post Cold Eye shareholding announcement euphoria has dried up. I will take a position in this company when Salute becomes RM0.50+ again.

The best entry point for this counter is when the stop loss point being taken out at 1.48. To be a successful investor, we have to be a contrarian. Buying FPI now when the sentiment is low is definitely a contrarian move.

The fundamentals are written on the wall. A growing contract manufacturer for Sony, Bose and Roland trading at 6x PE ex-cash. I have seen companies like this being overlooked by the market time and time again. They all have seen the same ending, which is up.

Based on the selling rate, perhaps around 6 mil shares left for sale. By the middle of the month, PNB could have completed the selling

PNB completely selling out their stake does not guarantee rebound either. For historical lesson, refer to Magni when vincent tan tried to pare down his stake. Magni stayed low for quite sometime before price discovery

If I am not mistaken, FPI has a new plant catering for Wistron since December last year. The higher sales recorded in the last few quarters could be mostly from the new plant. Based on AGM minutes, Wistron has taken up 50% of the new plant capacity. The X factor here is another new plant which was ready in June 2019. We do not know whether Roland rented that plant for expansion purpose. If Roland did rent the new plant, FPI sales will go through the roof

Why is everybody ejaculating prematurely over a meager profit? Construction business still see no light. Plenty of undervalued construction counters available besides Mudajaya.

Retailers do not need to care about KLCI. We need to benchmark against the small/mid caps.

It is a supplier of Dyson business product, not household product. How many hotels or shopping malls bought Dyson hand dryer? Very few.

Notion may have secured new business. Due dilligence should be made on whether new sales would translate into profit. Notion does not have a great profitability record.

The next quarter will be an important one for FPI. Looking at the revenue trend, it is highly likely FPI will continue to record strong sales. In the absence of any impairment, next quarter earnings should improve.

In my opinion, they should announce a higher dividend exceeding the usual 10 cents. Once they do, the market will start appreciating this stock again. People forgot that FPI is also a beneficiary of the trade war and is in every sense, an EMS player.

Solid results. A re-rating is imminent.