Hahahahaha tak faham faham lagi

Kelakar la ni

Another very important factor

Serba is bumi
Serba is Petronas vendor

These 2 points already very strong for them to be able to price their jobs so that they can maintain their overall PAT margin. Probably they landed some of their jobs on direct nego basis too.

No need RM50K salary punya accountant but work in construction/engineering punya senior accounts exec also will understand what I've been saying la aiyo hahaha

Tak pernah dengar cost escalation clause in contracts?

You doing O&M, EPCC, you are not doing korek dan jual petroleum. Minyak naik turun ada apa kena mengena dengan you?

Never heard of currency hedging techniques?

Hahahahaha

Hahahahahaha lucky none of my auditor's punya surname is "Huang"

Else I will ask my CEO remove my auditor like how Serba fired KPMG too

That is why Huang is not a CEO or CFO lo

If my company has been delivering 15% PAT margin regularly.

And we're not desperate for jobs.

And my CEO go tender for a job that can only net 8% PAT margin.

My Board gonna give him a frying good time at Board Meeting.

Why is this so difficult to understand?

You know your staff salaries.
You know your material costs.
You know your fixed overheads.
You know your PPE depreciation charges.
You know how much interest your lenders charge you.

You are a listed co. You are answerable to your shareholders. You have been distributing dividends so regular that it has somewhat created an expectation in your shareholders.

E.g. recent past dividend yield of your stock is 6.0%

If there is a job that will give equity holders earnings yield of less than 6.0%, you wouldn't accept it, you wouldn't even tender for the job.

Hard to understand meh?

If you understand concept of contract budgeting and industry tendering process, you would understand that it's perfectly normal to maintain your profit margin across different jobs

If you understand milestone billing and contract accounting, you would understand there will be a mismatch between earnings and cash flows

Accountants do and understand the numbers

CEOs know the business

Armchair auditors and investors, if you know the stuff of accountants and CEOs, you wouldn't need to be paying them high salaries to do their job.

Armchair accountants and auditors duno contract accounting and contract/engineering industry

Tak faham apa itu cost-plus pricing to include financing costs in budget costing

Tak faham system of contract tendering where if margin not to liking, can choose not to tender for a job

Tak faham milestone billing concept

JJchan worked in Hong Leong Industries ka?

I rest my case la

Not in to win. My opinion is shared and that's it

Which part of "pricing in financing costs" that you do not understand?

My company when doing tender, we price in banking and finance costs, if that's what you're asking.

This is how engineering and construction firms get mismatch of earnings and cash flow. It is perfectly normal.

Contract Value RM200m
Budgeted Contract Cost RM150m

You spent RM75m
Accounting, you can recognise 50% revenue i.e. RM100m revenue

But the contract billing is on Milestone basis, i.e. complete 1 Section you get paid RM50m

There is Section A items, e.g. the East Wing
Section B items, West Wing
And Section C items for North Winh, and Section D items for South Wing
Let's say each Section worth RM50m

But if the RM75m you spent, you completed PARTIALLY all the Sections i.e. none is FULLY completed

The client gonna pay you ZERO. ZERO cash inflow

But accounting wise, you are PERFECTLY CORRECT to recognise RM100m revenue

Welcome to Contract Accounting

Huangbk72, u never audited or worked in construction/engineering firm before? Ever heard of cost-plus pricing?

If you have the competitive advantage i.e. your services is well sought after, you CAN price your job tender in a way that maintains your profit margin, by pricing in your finance costs.

See concession business like Taliworks for example, they fork out a large chunk of money first, then accounting wise depreciate it over the concession period.

Construction contracts too can be lumpy, you recognise your revenue as you incur your costs, in percentage of completion basis. You have your revenue, but your client are not paying you according to revenue you recognise in your accounts. Go Google what is meant by "Milestone Payments".

I work in engineering/construction, and I do the accounting.

Those that are not interested in Serba, save your breath and time la

Such irritating pests

Unless you are here to spread negativity so that you can short it

Wow, early first dividend for FY 2021!

Results must be quite good for Board to announce first dividend so early. Must add next week!

@Steady Punpipi but this quarter no dividend

What u think about this?

@idunwork your statement is partly true

Atrium Shah Alam 4 just acquired, yet to have tenant

Start accumulating for next quarterly dividend next month. In such uncertain and low interest environment, dividend is king!

A stock with zero dividend. What's the appeal here?

EPF keep acquiring yet price keep falling...really no hope for capital gain. I keep as fixed deposit-substitute now.

Chong Kong Hui if wanna preserve capital, with quarterly dividends, I recommend you take a look at a pretty good ETF

AXJREITS-ETF

@PSAi3alert I prefer Ta Ann and United Plantations hahaha

Fundamentals intact.

Hold.

HAHAHAHAHA finally some cold hard truth from this well-seasoned uncle.

Yes, women are utterly unpredictable creatures.

DLLKT is more pro, he has all the industry news and data

I only share with you guys the maths that u need to be aware of when it comes to investing, such as dividend yield, comparison with other saving tools such as bank deposits and FDs and so on

Good luck!

hahahahaha @Lanmum thx for summoning me there to read those nice words

I was summoned here by someone hahaha

Thanks for your guys' nice words

Yea, I UNLUCKILY sold off ONE DAY BEFORE "THAT" ANNOUNCEMENT, because if there were no privatisation, the dividend yield % start to look not so attractive to me, hence I exited and took the money elsewhere

Nvm la, we can never expect to buy at the bottom and to sell at the top. I earned a respectable profit from MMC as I entered way before all the hype began

Wish you guys all the best :)

Mmc already want privatise, price already stuck there ma...

The pullback isn't as strong as expected, flushing out the contra players.

Uptrend shall continue.

To recap, TAANN is a palm oil player and a major Sarawak timber player

2 sector exposure in 1 stock.

The previous fair value hit to Allianz was due to rise of INTEREST RATE, not rise of OPR.

Rise of interest rate may, or may not be due to rise of OPR

Allow me to illustrate

Let's say BNM cuts OPR from 1.75% to 1.50%

HOWEVER, the MARKET may perceive that Malaysian government bonds carries a high risk (be it risk of default or risk of weak forex etc)

Hence, the market will SELL DOWN MGS, causing YIELD to go up

Eh eh eh sorry sorry sorry

Mabuk FMCO dah XD

5% dividend yield palm oil counter with growth, takut apa?

KFIMA and TGUAN, 2 totally different creatures.

Why don't you compare BAT, UTDPLT and UOADEV with TGUAN la if wanna talk about dividends? Haiz...

Allianz holding a lot of MGS, Malaysian Government Securities a.k.a. bonds.

When OPR is cut, fair value of existing MGSs will fall.

I explained it in detail the reason and mechanism for this fall in this forum thread, go dig my post a few months ago and read for yourself.

Wah auditor, why today BAT so strong

Another OPR cut will impact Allianz negatively again

TGUAN is now my "HOLD" share

Will hold until the dividend yield becomes lower than the worst FD rates.

@auditor

WFH is terrible

At office, you can have some document on hardcopy which you can scribble on and can check against documents/info on your computer screen.

WFH...everything on the screen. Have to switch between windows all the time. Very pening...

How could you...I'm still loyally holding.

auditor is promoting BAT now

hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

Ini cerita bodoh dari armchair investor

https://www.reuters.com/world/uk/kpmg-faces-call-record-fine-british-accounting-watchdog-2021-06-21/

Steady je...investing is a cruise, not a race :)

So many armchair investors/traders talking here...

1. Chairman and Directors of a company DO NOT get involved in the day-to-day operations of the company. Say, if you go ask them about the suppliers or even customers of the company, except maybe the biggest/main ones, probably they do not even know about them. Board is looking at things at a high level, they are not sitting there in the office daily looking at the running of the company.

2. Now Serba is talking about things like customer/creditor confirmation, address of supplier/customer, all these are operational/accounting/admin matters. My directors do not get involved about such matters. If auditors go to my Board, saying that they could not locate my customer/supplier, chances are they gonna get shoo-ed away. 1st thing that my Board would ask would be, "Have you tried to iron out these matters with the accountant or finance director?"