Steel prices have eased from a peak of RM2,800/t in 2Q16 to RM1,900/t currently. Any good catalyst?

<Scicom> The Malaysia's largest outsourcing company, to benefit from the growing global business process outsourcing (BPO) market.

<SunCon>

- A well-managed company with commendable execution capability, putting it in a prime spot to ride on the robust flow of mega contracts expected.

-6MFY16 earnings within expectations.

-Healthy balance with net cash position of RM315m (RM0.24/ share).

-NDPS of 2.5 sen declared.

-YTD, the group has secured RM2.4bn of new orders.

-Outlook remains bright .The outstanding order book is at RM4.9bn , which translate into 2.6x FY15 revenue with more potential wins. This could provide earnings visibility for the next 2 to 3 years.

-Expecting a stronger 2H16 performance as the construction billings for its newly started projects pick up pace i.e. Putrajaya Parcel F building works and works package V201 of MRT line 2 respectively.

-The share price is supported by its net cash position of RM106m (US$26m) and undervalued plantation assets.

-At the current share price, the implied EV/ha for its estates is only RM52k, below the market price of RM70k-80k for Sabah estates.

-2Q16 net profit grew 22% yoy thanks to higher prices and output. 2Q production was boosted by recent acquisition of 476 ha of oil palm estates.

-Declared an interim dividend of 3 sen, similar to last year's payout.

-The management is optimistic of achieving satisfactory results for the full year.

-Maintain our BUY call on SUNCON for its superior ROE (FY16f: 23%) and healthy balance sheet with a net cash position of RM298m (RM0.23/ share).

-Group orderbook expanded to RM4.9bn, or approximately 36 months construction backlog. Thus far in FY16, SCGB has clinched projects amounted to RM2.4bn.

Stock on radar.

A well-managed and efficient planter that offers a good dividend yield.

-Share price is supported by:

1. undervalued plantation assets.
At the current share price, the implied EV/ha for its estates is only RM50k, below the market price of RM70k- 80k for Sabah estates.

2. net cash position of RM95m (US$23m) or 12sen a share.

3. 32% Q-o-Q rise in FFB output and 27% Q-o-Q rise in CPO output in 2Q16.

Every 1% rise/drop in FFB output assumption would result in a 3% increase/decrease in our FY16 net profit.
Every RM100/tonne change in CPO price could impact FY16 net profit by 13%.

4.coupled with higher Certified Sustainable Palm Oil (CSPO) premium due to shortages in the market.

Recent shortages in CSPO due to FGV’s withdrawal and IOI’s suspension from RSPO certifications have boosted the premium for CSPO, which is positive for HSP.

5. its dividend policy to distribute 60% of its net profit to shareholders.

There was sharp rally in CPO in the past 4 weeks. CPO rose from a low of RM2270 to touch a high of RM2950. Based on the recovery in CPO prices, plantation stocks can recover further.

--Buy recommendation due to its cheap valuation and rich assets.

--Despite the substantial cash outlay in 1QFY16, its balance sheet remains strong with a net cash position of RM98.62m as at 1QFY16, translating into RM0.37/share.

--The management aims to match its dividend yield to prevailing fixed deposit rate. Based on the net dividend of 5.0 sen/share, it also comes with an attractive dividend yield of 6.4%.

--For its property development division, GUH has planned to launch RM100m worth of residential projects in Taman Bukit Kepayang, Seremban in Negeri Sembilan in FY16. This comprises a mixture of terrace (RM45m) and semi-D (RM50m) houses.

--Expect earnings contribution to pick up in the subsequent quarters due to higher progress billings from property and water and wastewater divisions(unbilled sales of RM100m ).

-Today, HLIB research retains a BUY rating (pending the release of 2Q16 results on 26 Aug) with a SOP TP of RM1.92, in anticipation of a pickup in earnings over the coming quarters.

-The research house opines that current share price 30.5% correction from 52-week high of RM1.87 offers opportunity for LT investors to accumulate SCABLE, given its undemanding valuation of 9x FY17 P/E (against HLIB’s average 12x construction’s P/E) and 1.25x P/B (10-year average 1.7x), supported by a steady 2015-18 earnings CAGR of 11% and decent FY17 yield of 3.3%.

-SCB has an order book of RM1.42bil, comprising RM900mil worth of construction projects (mostly power transmission lines) and RM520mil in manufactured products.

This year’s target sales for the group’s manufacturing segment is RM1bil.

-Besides power and telecommunication cables, SCB also makes and supplies galvanised products and steel structures.

On the Pan Borneo Highway project, SCB was targetting to supply guard rails and lamp posts, which had been used in road construction projects in the state, for the Sarawak’s largest single infrastructure project.

SCB have registered as a supplier with Lebuhraya Borneo Utara Sdn Bhd (LBU).

-After a slower first quarter, SCB was expecting power cable sales to pick up in the second quarter to over RM300mil compared with RM200mil in the January to March quarter as well as improving profit margins brought about by the new orders.

-On SCB’s joint venture hydro power plant project in north Sumatra, Indonesia, the project was expected to be completed by September. The 10MW plant estimated to cost RM80mil is scheduled for commissioning in the fourth quarter.

Cross trade,10/8/2016 Volume: 17177, Rm1.68, Value : Rm2,885,736. 12pm.

Cross trade, 9/8/16 Volume: 2500, Rm1.66, Value : Rm415,000.

10/08/2016 14:27

Cross trade, 5/8/2016 Volume: 9960, Rm0.86, Value : Rm856,560.
Cross trade, 1/8/16 Volume: 6896, Rm0.86, Value : Rm579,264.

Homeritz: An excellent proxy for high dividend yield seekers, especially in an environment of tepid earnings outlook and ultra low/negative interest rates.

1)the company would benefit from strong US$; (2) lower leather price which will boost its margin; 3)FY16 DY of 5.9%, based on 50% payout ratio. 4)strong balance sheet with net cash of 16.7sen/share.

-Management guided that 1Q16 could be the bottom and earnings is set to turnaround in 2Q16 in anticipation of a robust profit in 2Q16 results on the back of progress billings and an estimated ~RM40m net gain from the divestment of China water assets coupled with the impact from potential forex gains due to the recent weakening of the RM.

-Further downfall cushioned by expanded warchest coupled with attractive dividend yield.
a)To recap, the completion of the disposal will see Salcon’s netcash to soar to ~RM200m from RM162m end Mar 16,translating into netcash/share of RM 0.295, equivalent 48% of the current share price.
b)supported by attractive dividend yield of 5% (industry 4.2%).

---Risks to the downside are further selldown in BST shares by BL.---

Berjaya Land’s sale of BST shares is an overhang In May-Jun 16, BL sold 14.2m BST shares at average prices of RM2.86-2.95. This represents a 1.1% stake in BST and raised c.RM40m cash, likely to help BL repay its medium-term-notes (MTN) of RM55m due in Jun 16. BL’s stake in BST now stands at
40.1%. BL’s next MTN repayments are RM50m in Oct 16 and RM150m in Jun 17.

-Speaking to reporters after its AGM yesterday (20/6/2016), group managing director Datuk Ang Cheng Siong said, the group’s outstanding order book stands at about RM700 million, which can keep the group busy for the next two years.

-For the current financial year ended Dec 31, 2016 (FY16), Ang said, the group has set the target of clocking an almost 50% increase in turnover to RM400 million, from RM268.7 million it recorded in FY15, which will be driven by its strong order book as well as tender book.

-Ang explained that the decrease in the group’s revenue in the first quarter ended March 31, 2016 (Q1FY16) is due mainly to its newly secured projects, which are still at the beginning stage.

“We just got our project in the first quarter, where we procured about RM500 million worth of jobs. Normally, when it (the project) just starts, it is a bit sluggish. But I believe in the second quarter it should pick up,” he added.

Over the years, Ikhmas Jaya have established an extensive track record with a portfolio of completed projects for both the public and private sectors with a total value of approximately RM1.7 billion.

The Group owns and operates its own diversified fleet of machinery and equipment to support piling and foundation works as well as bridge and building construction.

*Current outstanding order book stands at a healthy RM636.2m.

The Group’s clear earnings visibility is anchored by current healthy order book, which translates into 2.35x FY15’s earnings given a margin of 9%.

*Gearing up for wider job scope.

Its tender book remains at RM3bn, which comprises infrastructure jobs (50%), piling (30%), superstructure (20%). On top of that, IKHMAS is bidding for expressway infrastructure works namely DASH, SUKE, DUKE 3 and Pan Borneo Highway, which are expected to be awarded in stages starting mid-June this year. Meanwhile, the Group is venturing into track laying, i.e KVMRT2, LRT3.

Capital repayment of RM0.75 for each ordinary share of RM1.00 each in Golden Land Berhad ("GLBHD") ("Capital Repayment").

EX-date: 29 Jun 2016

GLBHD's shareholders whose names appear in GLBHD's Record of Depositors as at 5.00 p.m. on 1 July 2016 shall receive a cash distribution under the Capital Repayment of RM0.75 for each ordinary share of RM1.00 each held in GLBHD on the Entitlement Date.

The trading of GLBHD Shares on the Main Market of Bursa Malaysia Securities Berhad will not be suspended for the purpose of the Capital Repayment. GLBHD's shareholders are not required to take any action in respect of the Capital Repayment.

With Rm1.43 per share you own a cash rich company with net assets per share of Rm3.01 (before capital repayment of RM0.75 per GLBHD share ).

GLBHD will be exciting in the next few months.

<<<Cash is King.>>>

-Net cash per share of Rm1.53 represents 108% of GLBHD’s market capitalisation.
-Net assets per share attributable to ordinary equity holders of the parent= Rm3.01.

With Rm1.41 per share you own a cash rich company with net assets per share of Rm3.01 (before capital repayment of RM0.75 per GLBHD share )

2Q16: A strong recovery in earnings in the quarter ahead.

-Salcon reported a core loss in 1Q16 (excluding forex losses).

-Expects 2Q16 to be a blowout quarter due to:

>>>> gains from China water assets divestment with an estimated RM30m-35m net gain;

>>>>strongly return to profitability on the back of progress billings;

>>>>the impact from potential forex gains due to the recent weakening of the RM could also further boost bottomline.

-Management guided that the operating losses from property development are bound to turn around in 2H16, backed the Res280 project in Selayang.

-1Q16 net cash stood at a healthy RM163m (US$44.5m) – RM0.25/share or 38% of market cap.

-For FY16-17F, dividend yield of 5-6%.

<<<<<<Commands a healthy balance sheet with net cash position.>>>>>

Net cash per share of 22sen (RM0.22/ share) represents 48% of GOB’s market capitalisation.

Director Off-market transactions:
Volume: 5 million,
Average price: Rm0.63,
Value: Rm3.15m,
% of total share: 0.7378

Salcon: A bombed-out stock and highbeta recovery in share price stock in 2016!

The water infra backlog story remains unchanged for 2016.
Salcon could emerge as the dark horse for this segment this year.
The group’s order pipeline stands at RM2.4bn, with a likely 20% success rate.

----Harrisons Holdings: an undervalued distributor of FMCG small-cap stocks.----

-Harrisons is involved in the marketing warehousing and distribution of fast moving consumer goods (FMCG), building materials, liquor products, agricultural and industrial chemicals, engineering and the operation of shipping, insurance and travel agencies.

-Harrisons’s major clients include Nestle, which has been with the group for 75 years, Asia Pacific Brewery,Malex, Maerskline, SCA Hygiene (Drypers), Reckitt Benckiser (Dettol, Shieldtox), Kao (Biore, Laurier) and Fraser & Neave.

-<In East Malaysia>.

The company derives most of its revenue from the distribution of FMCG in East Malaysia.
For year 2016, the Group’s strategies will be to strengthen sales by adopting a more aggressive approach to secure new agencies and to have a deeper penetration of market especially in rural areas. On the cost side, strategies have been employed to reduce operation costs.

-<Dividend>

Declared dividend of 15 sen per share (Ex-date: 28/06/2016) , this should provide short term catalyst for the stock as it represents a significant 4.96% dividend yield at the current share price.


-<Strong balance sheet>.

Harrisons had RM124,174,000 cash at end-2015, which excludes RM20,350,000 liquid assets. In addition, net working capital (receivables + inventory -payables) was a healthy RM262,665,000. At end-2015, net liquid assets totalled RM407,189,000 or RM5.94/share.
-Net liquid assets valuation. The stock is trading at a 98% discount to its net liquid assets/share of RM5.94. The big discount reflects Harrison’s small market cap role and its role as just a distributor.
-Assuming apply 35% discount to its net liquid assets/share of RM5.94 valuation in view of the stock’s poor liquidity, this works out to RM3.86, which implies share price upside of 29%.

SP Setia: --Attractive dividend yield proxy in property sector with 6.0% expected in FY16.--

<Dividend>
Declared dividend of 19 sen per share, this should provide short term catalyst for the stock as it represents a significant 5.9% dividend yield.
-Full year dividend to 23 sen share, translating to 7% of dividend yield in 14MFY15.


<Strong earnings visibility>
SP Setia achieved total property sales of RM4.3bn while unbilled sales stood at RM9.2bn as at end-Dec 2015. This will provide the group with about 2 years’ earnings visibility.


<Focus on affordable housings, landed properties and township developments for resilient future sales and earning.>
SP Setia will continue to focus on mid-range affordable products and township development.
-About 42% of the upcoming launches are affordable housing (i.e priced below RM300k/unit).
-SP Setia’s focus on township development will make it less vulnerable to the weaker sentiment, judging by the strong demand for its recent launches.
On top of the on-going townships such as Setia Alam, Setia Eco Park and Setia Ecohill (Semenyih), SP Setia is expected to unveil two new townships in 2016, namely, Setia Eco Templer in Rawang and Setia Ecohill 2 in Beranang.
-Concentration in Klang Valley.
SP SETIA launches are concentrated in Klang Valley with launches value of RM3.55b (74% of total launch). Within Klang Valley, Setia Alam (GDV of RM839m; 1810 units) will be the biggest contributor (24% of Klang Valley launch and 18% of Group’s total launch).

<Balance sheet>
-Strong balance sheet with net gearing at 0.18x.
-SP Setia boasts a vast land bank of 3,907 acres (worth RM71bn GDV) which will generate revenue for decades.

The recent series of earthquakes in Japan and Ecuador --- may generate ---buying interest on building material stocks such as HEVEA and EVERGREEN.

Hevea: Best is yet to come!

Hevea (closed at RM1.19 today) is now trading at a PE of 6.5 times (based on last 4 quarters') EPS of 18.4 sen and ex-cash at a PE of 5.5 times). At this PER, Hevea is deemed very attractive. It may command a PER of 10-12 times- giving the stock an upside of at least 30%.

-Balance sheet is healthy with net cash per share is still high at 17 sen or equivalent to 14.2% of its share price.

-With minimal capex for FY16 and net cash per share of 17 sen as at end-4Q15, Hevea’s quarterly dividend is set to rise. Analyst forecasts net cash per share to rise from 17 sen in FY15 to 75 sen per share in FY18, which would be more than 58% of its current market capitalisation, implying ample scope for substantial dividend surprises.


-Since 11 Feb 2016, Hevea has commenced a share buyback programme. It has
acquired 180k shares at an average price of RM1.19. While this represents only 0.05%
of its paid-up capital, this sends a strong positive signal to investors.

-Hevea is expected to benefit from the rebuilding in Japan in the aftermath of recent earthquake given that the company exports ~50% of its products to the country.

The stock is currently trading at 12m trailing P/E of 9.4x.

Balance sheet is healthy with net cash per share is still high at 28 sen or equivalent to 44% of its share price.

Good dividend yield of 4.72%. (12m: 6.2%)

The Commercial Operation Date (COD) for Tanjung Bin Energy(TBE) is slightly ahead of consensus estimate of an April 2016 commencement. TBE raises Malakoff’s effective capacity by 19% from 5,346MW to 6,346MW.

The COD for TBE could not have come at a better time following TNB’s announcement last week that electricity usage reached a new high of 17,175MW due to the current heat wave thus reducing the electricity reserve margin to ~21%. This is below the 25% benchmark which is more conducive for electricity security.

The Board will distribute the remaining RM0.75 per GLBHD Share after obtaining all requisite approvals for the Proposed Capital Repayment. Shareholders of GLBHD had at the extraordinary general meeting dated 29 October 2015 approved the resolution for the Proposed Capital Repayment. The Proposed Capital Repayment is currently pending confirmation by the High Court for the cancellation of GLBHD’s share capital and the approval/consent of the financiers/creditors of GLBHD, if and where required. Barring any unforeseen circumstances, the Proposed Capital Repayment is expected to be completed by the second (2nd) quarter of the year 2016.

Finally,

7382 GLBHD GOLDEN LAND BERHAD
Special Single-Tier Dividend RM0.13

Entitlement Details:
Special Single-Tier Dividend of RM0.13 per ordinary share of RM1.00 each


Entitlement Type: Special Dividend
Entitlement Date and Time: 28/03/2016 05:00 AM
Year Ending/Period Ending/Ended Date: 30/06/2016
EX Date: 24/03/2016
To SCANS Date:
Payment Date: 12/04/2016

Felda Global Ventures Holdings Bhd (FGV) said the completion of its
acquisition of an oil palm plantation land in Beluran, Sabah, together with four
subsidiaries from Golden Land Bhd (GLB) has been postponed by a week to
March 14. It added that the postponement of the RM655m acquisition was
agreed to by both parties. (Financial Daily)

An Awakening Gem Waiting To Be Unearthed Which Can Worth RM11.71 Per Share. Buy Call In Long Term.

Finally,

Final Single-Tier Dividend 12 Sen & Special Single-Tier Dividend 38 Sen

Entitlement Details:
Final Single-Tier Dividend of 12.0 sen per Ordinary Share of RM1.00 eachand a Special Single-Tier Dividend of 38.0 sen per Ordinary Share of RM1.00each for the financial year ended 31 October 2015


Entitlement Type: Others
Entitlement Date and Time: 05/04/2016 05:00 AM
Year Ending/Period Ending/Ended Date: 31/10/2015
EX Date: 01/04/2016
To SCANS Date:
Payment Date: 15/04/2016

With 58sen per share you own ----a cash rich company---- with net assets per share of Rm2.06.

成本1.46令吉，扣除88仙后只有58仙，相对2.06令吉净资产来说，实在是太低了。

Net cash per share is around Rm0.26 or equivalent to 18% of its current share price. (Rm1.46)

To recap,
The Company had on 22 July 2015 announced that it proposes to undertake a cash distribution of RM0.88 for every GLBHD Share, which amounts to approximately RM190.33 million, by way of the following :-
----Proposed capital reduction and repayment of RM0.75 via reduction of the par value of each existing GLBHD Shares pursuant to Section 64 of the
----Proposed distribution of a special cash dividend of RM0.13 each.

On 8 December 2015, GLBHD announced that the conditions precedent stated in the SPA has been fulfilled and accordingly the Proposed Disposal has become Unconditional.

According to the management, the above proposal will be completed by early March 2016.

Trade and other payables (Rm268,991,000) had increased significantly (176%) as compared to last financial year mainly due to deposit received from the disposal of 4 subsidiary companies and redemption of bank borrowings by Pontian United Plantations Berhad.


GLBHD will be exciting in the next few months.

<<<Nine month net profit increased 185.11%>>>


-Expect stronger 2H with the ongoing roll-out of High-Speed Broadband phase 2 (HSBB2) and Suburban Broadband (SUBB) infrastructure project by TM.

-Strong balance sheet and attrative net cash.

Opcom has Rm 4,301,000 borrowing. It has cash of RM45,574,000. Net cash per share is around Rm0.26 or equivalent to 34.4% of its current share price. (Rm0.755)

Opcom (closed at RM0.755 yesterday) is now trading at a PER of 13.7 times (based on last 4 quarters' EPS of 5.48sen). If the cash in hand is deducted from the share price, the PER would be lowered to 9 times.

Based on good financial performance, healthy financial position & positive technical outlook, Opcom is a good stock for long-term investment.

-Excluding the foreign exchange loss impact (RM 1m), Hovid’s net profit in the second quarter grew 87% yoy on the back of higher revenue.

-A stronger ringgit is negative for Hovid’s profit margins because more than half of its sales are derived from exports.

-Expect stronger 2H.
Expect profit margins to recover on the back of higher utilisation of its two new production lines commissioned in 2Q. Boosted Hovid’s previous tablet and capsule production capacity by 30%.

Below expectations due to higher amortization for its Pharmacy Information System of Rm26.4m(PhIS) and lower than expected government orders. PBT declined 10.4% to RM112.5m.

Pharmaniaga’s manufacturing division charted higher PBT by 17% (FY15: RM109.5m vs. FY14: RM93.7m) resulting from better productivity and efficiency as well as cost management.

Pharmaniaga has spent c.RM170m to install the PhIS in government hospitals. This amount was capitalised and will be amortised over the tenure of its concession agreement (expires in Nov 2019).

FY16 earnings could remain unexciting due to:
-Sales growth could be capped by the government’s budget recalibration.
-The amortisation charges related to the PhIS will continue to suppress its profit margin.

Low business risk profile

-The largest domestic IPP with a gross generating capacity of 7,249MW in Malaysia and its low business risk profile stemming primarily from fairly predictable cash flows from its portfolio of power plants under long-term power purchasing agreements (PPA) with Tenaga Nasional Bhd (rated AAA/Stable)

Tanjung Bin Energy Sdn Bhd (TBE).

-TBE’s construction progress reached 99.26% as at end-2015 against scheduled progress of 99.65%, narrowing the progress variance substantially through increased manpower and working hours to expedite construction progress.
TBE is scheduled to achieve commercial operations on March 1, 2016.


AA-IS rating.

-Malaysian Rating Corporation (MARC) has affirmed its AA-IS rating on Malakoff Power Bhd’s (MPower) RM5.40bil Sukuk Murabahah with a stable outlook.
The outlook also assumes that TBE will achieve commercial operations within six months from the scheduled commercial operations date and the refinancing risk of EBL will be adequately addressed well before 2017. (25/01/2016)

<<<<<<<<A cash rich company.>>>>>>>

Based on the share price of RM1.50 @ 216,279,000 shares (net of 6.63miliion treasury shares) = market capitalization of RM324,418,500.

GLBHD sold its plantation at Rm655,000,000 which is about rm3.03 per share. GLBHB just sold part of it, not all its assets.

The proposed disposal is expects to realise an estimated gain on disposal of Rm89.15m or Rm0.41 per share.

According to proposal on 29/10/2015, as at 30 June 2015, the total group unaudited borrowings amounting to RM 211,000,000.
The company still holding RM444,000,000 of cash after less the above borrowings figure.

Net cash stood at Rm2.05 per share before the utilisation of proceeds.

Proposes to undertake a cash distribution>>>>Total dividend payout (Capital repayment + special dividend) = Approximately RM190.33m or Rm0.88 per share.

Current market capitalization RM324,418,500 - dividend payout RM 190.33mil = RM134,088,500 which mean per share @ 62sen after the dividend payout.

Cash in hand after undertook the cash distribution = Approximately RM253.67m or Rm1.17 per share.

Net assets per share after undertook the cash distribution will be approximately Rm2.06.

Cost per share = Rm1.50
Cost per share after the cash distribution Rm0.88 = Rm 0.62.

With 62 sen per share you own a cash rich company with net assets per share of Rm2.06

成本1.50令吉，扣除88仙后只有62 仙，相对2.06令吉净资产来说，实在是太低了。

The biggest distributor of medical products to Malaysia's MOH .
>>>>>>>>A strong defensive play support by decent yield!<<<<<<<<

>>>>>>>> A safe haven for investors given its recession proof nature!<<<<<<<<

--Best-known as the biggest distributor of medical products to Malaysia's MOH (Ministry of Health), supplying 50% of the Ministry's needs.

-4Q should be stronger. Expect sales to recover in 4Q as MOH’s hospitals and clinics replenish their inventories.

-Earnings growth for Pharmaniaga should remain resilient despite the presence of rising costs pressures, subdued consumer sentiment and economic uncertainty.

-Valuation is considerably attractive compared to other pharmaceutical-related stocks. Expects higher contribution from its Indonesia and non-concession segment in 2016.

-Decent dividend yield between 4.8% to 5%.

*****Earnings driver for the group would be:*****

(a)Contribution from its three teaching hospitals;

(b)European Union Good Manufacturing certification which would provide the group with stronger footing in European market. Pharmaniaga could see another period of strong earnings growth in 2016 (+33% yoy to RM116m) as its small-volume injectable (SVI) plant should receive approvals from the EU authorities for the sale of its SVI products to the EU market by then.

(c)Beneficiary of patent cliff . The group is also set to benefit from a "patent cliff" − the expiry of patents for bestselling drugs with US$133bn annual sales worldwide over the next 3 years. The patent cliff will allow generic drug makers such as Pharmaniaga to enter once-protected segments of the pharmaceutical market via the introduction of generic versions of the patented drugs;

(d)Growth exposure in the healthcare and pharmaceutical industry supported by an ageing population.

(e)Concession agreement (CA) is the jewel in the crown. Defensive earnings as the sole concession holder to purchase, store, supply and distribute drugs and medicinal products to 148 government hospitals and 1,400 clinics, The concession agreement ends in Nov 2019 and allows for upwards revision in prices every three years.

(f)To benefit from the RM4.6bn allocation stated in Budget 2016 to supply medicines, consumables, vaccines and reagents to all government hospitals and clinics.

Global personal computer shipments fell 10.6 percent in the quarter ended in December from a year earlier, IDC said on Tuesday, the largest decline since the research firm started tracking PC shipments.

The fourth quarter of 2015 marked the fifth consecutive quarter of worldwide PC shipments decline, according to rival research firm Gartner.

Global personal computer shipments fell 10.6 percent in the quarter ended in December from a year earlier, IDC said on Tuesday, the largest decline since the research firm started tracking PC shipments.

The fourth quarter of 2015 marked the fifth consecutive quarter of worldwide PC shipments decline, according to rival research firm Gartner.

Approximately Rm45.55 million of deposit with all profits will be released to GLBHD on the Unconditional Date.
This means Rm45.55 million will be booked in 2QFY2016 quarter report??????

Deep in value;
Offering High FD-like Returns!
Special dividend emerges!


On 8 December 2015, the SPA between GLBHD with Pontian United Plantations Berhad (“PUPB” or “Purchaser”), a wholly-owned subsidiary of Felda Global Ventures Holdings Berhad (“FGV”) for a total cash consideration of RM655.0 million (“Disposal Consideration”), has been fulfilled and accordingly the Proposed Disposal has become unconditional.


Unconditional Date: The date the SPA becomes unconditional.

The sale and purchase of the GLBHD Land and the Sale Shares shall be completed (“Completion”) within 3 months from the Unconditional Date or on such other date as may be agreed between GLBHD and PUPB (“Completion Date”)

To recap,
The Company had on 22 July 2015 announced that it proposes to undertake a cash distribution of RM0.88 for every GLBHD Share,
which amounts to approximately RM190.33 million, by way of the following :-
----Proposed capital reduction and repayment of RM0.75 via reduction of the par value of each existing GLBHD Shares pursuant to Section 64 of the
----Proposed distribution of a special cash dividend of RM0.13 each.

GLBHD will be exciting in the next few months.

Yesterday, Top Glove held an analyst briefing to provide updates on its
1QFY16 results and outlook.

During analyst briefing ,its chairman Tan Sri Lim Wee Chai said that aside from growing organically, with a burgeoning war chest, the group remains active on the lookout for synergistic M&A opportunities.

We are looking at the glove sector, printing, packaging and chemical sectors, and even the glove mould sector.

Acquiring one to two companies a year is part of the group’s key performance indicators (KPI). YoY, its net cash position has almost doubled (+96.1% YoY) from RM186.7mn in 1QFY15 to RM366.1mn in 1QFY16. To reiterate, acquisitions can be up to RM1.0bn and ideal candidates include companies both locally and abroad.

The company has shortlisted three local companies for an M&A exercise, to be concluded within the company's financial year ending Nov 30, 2016 (FY16) in the glove-related sector and is looking to seal a deal by August this year.

-A company which produces ceramic formers subscribed by the glove industry throughout Malaysia.

-A cash rich company with net cash of RM25,277k cash in hand.

-There are rumours that big glove counter plans to buy over ESCERAM.

-Top Glove will be adding annual capacity totaling 7.8bil over the next 2 years; Hartalega plans to add annual capacity of 28.4 billion gloves, Kossan 22.0 billion gloves and Supermax 10.8 billion gloves.

-Looking at those billions and billions figures, these major expansion exercises will drive demand for ceramic hand formers, and ESCERAM is the only listed company who is doing the formers. These 4 giant glove counters might be ESCERAM's customers.

Target price: Rm3.56

NFO players, BJTOTO is trading at their multi-year’s lows.

BJTOTO continues to be TOP PICK for the gaming sector for its dividend yield and defensive earnings.

Given that the gaming sector is highly regulated and matured, earnings prospect remains unexciting and expect ticket sales to grow at 2%-3% annually with usual 20 extra special draws each year while the luck factor is the determining factor for bottom line.

But, BJTOTO is always about valuation and yield. One should a look into the attractive yields that are as high as 6%-8% which is among the highest on Bursa Malaysia.(Kenanga Research)