Luxchem : Leader in supplying nitrile and related chemical additives for glove producers.

The emerging trend in the industry is favourable to Luxchem Corp Bhd, which supplies nitrile (synthetic latex) to glove producers, such as Hartalega Holdings Bhd, Top Glove, Supermax, and Kossan Rubber Industries Bhd.

Glovemakers are on investors’ radar but not Luxchem.

According to its customers, Topglove, Supermax, and Kossan are dedicating more of their production lines to nitrile gloves.

>Topglove

Topglove is increasing its product mix from purely a latex-based gloves producer into the higher margin nitrile gloves.
In its latest quarter report,Top Glove continues to increase its nitrile segment contribution, which grew by 8% pts from 24% in 1QFY15 to 32% in 1QFY16.


>Supermax

In its latest quarter report,Supermax operating margins helped by stronger USD and better sales mix (i.e. increased sales of higher margin nitrile products).
Growth going forward is expected to be driven by two new plants.
The building structures for Plant #10 and Plant #11 i.e. Lot 6059 and 6058 in Meru, Klang are up and the first batch of lines has been commissioned. Lot 6059 and 6058 will have 24 and 16 production lines producing 3.2b and 2.2b pieces of nitrile gloves p.a., respectively, bringing the total nitrile production capacity from 6.9b (including the 1.4bn in Lot 6070) to 12.3b pieces p.a. or 52% of the total installed capacity.

>Kossan

In its latest quarter report,to fulfill strong demand for nitrile gloves, Kossan plans to double its current 22.5bn pcs capacity by 2021. The expansion plan will be executed in 5 phases from end-2015 onwards.
The group will continue to focus on light weight nitrile gloves and aim to achieve a product mix of 80:20 - nitrile (SR) and natural rubber latex (NR) in FY16 respectively (YTD - 68:32 SR vs. NR).



>Hartalega, leader in nitrile glove market.

In its latest quarter report,Hartalega expect its earnings to jump upon the gradual ramp up of the Next Generation Integrated Glove Manufacturing Complex (NGC) (known as Plant 7). Presently, NGC has commissioned 17 lines. Upon full commissioning, the first two plants will add c.8b pieces (+56%) new capacity by 1Q16.

A brisk outlook for Luxchem.


Luxchem has a strong market reputation and established record with over 700 customers in 14 countries.

Its revenue segment can be segregated into four divisions equally divided into: (i) rubber, (ii) latex, (iii) coating, and (iv) FRP. This also means that half of the group’s revenues are derived from the rubber glove industry.

>A resilient play for its defensive earnings.
Nearly half of its earnings are derived from the defensive rubber glove industry, based on rubber and latex segments. As it is a one-stop centre, all the rubber glove makers are customers of LUXCHEM, which is able to supply a full range of additives and chemicals.

>Defensive play.
The company is generous with dividends.Given its steady earnings growth coupled with above average yield of 4%-5%. The dividend yield is based on 50% payout, which is in line with the company’s unofficial dividend payout policy.

Financially, the company has a strong balance sheet. In 3QFY15, LUXCHEM has a healthy set of balance sheet with RM106.75m cash or RM51.98m net cash.

-Malaysian palm oil futures rose for a second day on Wednesday, reaching their highest level in 18 months, on concerns year-end monsoon rains and El Nino-related dryness may lower future output.

-The benchmark palm oil contract for March on the Bursa Malaysia Derivatives Exchange rose 0.4 percent to RM2,495t ($581.86) a tonne at the end of the trading session. The contract hit an intra-day high of RM2,504, the most since June 25, 2014. (StarBiz)

<A must buy planter : Sterling results, cash-rich balance sheet and steady dividend the key attraction.>

Kim Loong: Earnings soared and continued to rise!!

For QE31 Oct 2015,
The PBT rose 17% q-o-q or 61% y-o-y.
The FFB production rose 8.8% q-o-q or 14% y-o-y.
Total CPO production rose 16% q-o-q or 25% y-o-y.
The milling operations, FFB processed rose 7% q-o-q.

-Undemanding valuations with strong net cash per share of RM0.68 as at 31 October 2015 or accounted for 23.5% of the current share price.

-Kim Loong offers an attractive dividend yield that can be sustained in light of its strong cash inflows from its core plantation operations.

For the financial year ending 31 January 2016, management expect:
-the FFB production to be marginally higher.
-the growth in CPO production would be in the region of 15%, comparing to the quantity achieved in the financial year 2015.

<<<<A Hidden Gem In Damansara Heights>>>>

To recap, the recent completed land sale of 6.34 acres at MYR1,629 psf at Pusat Bandar Damansara - Damansara Heights (on 30 September 2015)and progress of MRT works should trigger a re-rating of Selangor Properties’ RNAV. MRT and plot ratio expansion could encourage redevelopment of its existing office buildings.(12 acres).

-It is the largest land & asset owner in Damansara Heights.
With strategic landbank in Pusat Bandar Damansara – Damansara Heights, adjacent to 2 MRT stops along MRT Blue Line, SPB’s RNAV could grow by RM11.71 in 3-5 years. (at RM1, 300psf)


-Very illiquid counter but very solid company. Potential M&A/privatisation candidate - major shareholder Kayin Holdings holds its stake to 68.23% as at 31 October 2015

-Undemanding valuation with gross cash and short term investments of RM1268.74 million. Net cash and short term investments is around RM1027.95 million, as at 31 October 2015, which translates to RM2.99 per share, or 53.8% of the current share price.

-Proposed a single tier first and final dividend of 50 sen per ordinary share, comprising 12 sen ordinary dividend and 38 sen special dividend, in respect of the financial year ended 31 October 2015, share price should be supported by dividend yield ^9%^.

Why pick Kim Loong in long term:

-Prudent management.
Embracing techniques for better yields. The cost of production during FY2015 dropped to RM1,200/MT of CPO compared to RM1,300/MT in the last financial year, due to higher production and better utilization of milling capacity.

-EFB growth engine.
In January 2014, the Group has successfully implemented and commissioned a plant capable of extracting dried long fibre from empty fruit bunch (“EFB”) which is normally considered as waste product from palm oil milling. This dried long fibre plant is expected to contribute positively from the financial year 2016 onwards.

-FFB production continues to grow.
The Group expects the FFB production by the plantation operations and FFB intake by the milling operation to be marginally higher in FY2016 compared to FY2015. Note that latest 3Q FFB production increased by 14% YoY while CPO production also rose by 26% YoY.

-Strong balance sheet strength. As of July, its total net cash stood at MYR268.72m (or MYR0.86 per share).

- Attractive and highest dividend yield stock in plantation sector,. Because of its stable milling business, Kim Loong is able to consistently pay dividends. Since FY2011, its payout ratio has ranged from 50-70% of net profits. The company paid a special dividend of 10 sen per share in August, bringing total dividends to 23 sen in the past 12 months. This translates to an above-average net yield of 8.2%.

-Potential proposed bonus issue.

OPCOM 1H net profit 3.541 million (increased 254.10%)

Be alert!!!!!!!

The latest quarter registered a foreign currency gain of RM8.0 million rising from the weakening Ringgit versus the United States Dollar.

As the result of the above factors, profit after tax improved sharply to RM9.9 million.

27/11/2015 09:23

APB had benefited from forex gain in the current quarters.
These exceptional gain amount to RM8 million helped to boost the company's earnings but they may not recur in the future.

If the exceptional gains noted above are excluded, its latest quarters' EPS would drop from 8.21sen to 0.99en.

According to latest TM’s CEO Tan Sri Zamzamzairani Isa and CFO Datuk Bazlan hosted the company’s quarterly conference call:

Negotiations with the government on HSBB2 and Suburban Broadband (SUBB) have been finalised and TM is now waiting for the signing of the agreement. Meantime, TM continues to roll out its HSBB network and expects certain areas that it recently expanded in to be included in the HSBB2 agreement, making it eligible for government grants later on.

Earning lifted by an amount of RM24.838 million arising from the increase in fair value of investment properties located in Jalan Tuanku Abdul Rahman.
If the fair value gains noted above are excluded, its current quarters' EPS would drop to 4.3 sen.

Be watchful of a rollback of earning for FIAMMA in the next few quarters.

UMSNGB had benefited from forex gain in the past 3 quarters.
These exceptional gain amount to RM2.86 million helped to boost the company's earnings but they may not recur in the future.
If the exceptional gains noted above are excluded, its last 3 quarters' EPS would drop from 8.8sen to 5.24sen.

Malakoff : A stable dividend play stock in future.

To recap, Malakoff’s listing share price was fixed at RM1.80 on 17/3/2015.

-Malakoff is the largest independent power producer (IPP) in Malaysia owning 5,346MW of capacity through equity stakes in 6 power plants. This is equivalent to 26% of Peninsula Malaysia’s total installed capacity and is second only to Tenaga Nasional Berhad (TNB) which controls 47% and who also happens to be the off-taker for Malakoff.

-Combined, both Malakoff and TNB supply 73% of Peninsula Malaysia’s energy needs (source: Energy Commission).

<<<<Malakoff’s earnings view as defensive with future prospects intact due to:>>>>

i. The securing of long-term power purchase agreements (PPA) with TNB with fuel cost pass-through (FCPT) mechanism in place to eliminate risks arising from commodity price fluctuations.

ii. Its ability to contest for the next cycle (year 2020 onwards) of power projects as Malaysia’s reserve margin has fallen to 20-25% range in FY14, prompting a need for capacity plant-ups to a more secure >30% reserve for energy security to cater to demand growth and unscheduled plant outages (source: EC).

iii. An additional new earnings driver. Its 7th power plant (Tanjung Bin Energy Unit 4) with an additional 1,000MW set to come on-stream in 1HFY16 ( commercial operation date (COD) target of 1 Mar 2016) which will increase Malakoff’s net effective capacity by 11% to 5,910MW (PD Power 436MW to be retired) and will support 15% EBITDA growth in FY16E.

iv. Its export opportunities given the proximity to Singapore and Thailand and the availability of sites to accommodate more power plants.

v) Malakoff provides a good alternative to perennial yield favourites (telcos). Its dividend yields are decent at 4-6% in 2016 is supported by free cash flow yield of 10%.

The higher PBT (Q3) recorded was mainly contributed by foreign exchange gain of RM591,000 (A).


Core EPS without (A) for Tecfast in FY15Q3 should be 0.34sen (total shares 155,367,000).




Am I correct?

Be alert with Guan Chong Warrant.

Exercise Price:Rm1.34
Maturity date:16/02/2016 (83days)

The recovery lifted by the higher net gain on commodity future contract and lower inventory write down.

Financial Position


As at 30/9/2015, GCB's financial position is fairly tight with current ratio at 1.03 time and gearing ratio at 3.4 times. The high gearing is the result of high borrowings to finance its inventory & trade receivable. Inventory holding period had improved from 160 days in 31/3/2015 to 104 days while debtors' turnover period had deteriorated from 43 to 73 days over the same period.

Valuation

GCB (closed at RM0.85 yesterday) is now trading at a trailing PER of 31 times (based on last 4 qaurters' EPS of 2.75 sen). If GCB can continue to chalk up results similar to QE30/9/2015, its PER would reduce to less than 5 times. This plus its PBR of 1.1 times its NTA (of 80 sen @30/9/2015) means that GCB is probably fairly valued today.

By Alex Lu.

The higher PBT (Q1) recorded was mainly contributed by the higher interest income and unrealized foreign exchange gain of RM4.70 million (A) in the investment segment.

After deducting the (A), core PBT in FY16Q1 should be Rm3,186,000.

Core EPS without (A) for Hexza in FY16Q1 should be 1.58sen (total shares 200,380,036).

Is this a good or bad news?

Am I correct?

Amended. <<<< A Dominant Local Player in Fiber Optic Cables>>>>

Opcom is estimated that it has approximately 65% to 75% market share for fiber optic cables in Malaysia, making it the leading player in the segment.


OPCOM had been flattish for FYE 2015. However, OPCOM had been seeing a strong growth in the 1Q FYE 2016 which was driven by the 3-year contract secured with Telekom Malaysia Bhd (TM) for supply and delivery of cable and related systems ( RM 210m).
While this is just the start, OPCOM will definitely benefit more from the launch of the high-speed broadband phase 2 (HSBB2) and sub-urban broadband projects. The 10-year contracts are worth RM1.8bil and RM1.6bil respectively. This, in turn, means Opcom will see a constant and stable demand and growth for fiber optic cable and solutions from TM in future.

To recap, the HSBB2 and SUBB projects were already tentatively awarded to TM, further details with regards to government grant and tax incentives (if any) are still lacking. According to TM management had earlier said that further details and formal award of the two projects should be concluded by Nov this year (2015). TM is expected to invest RM1.8bn in HSBB2 over 3 years and RM1.6bn in SUBB over 5 years.

According to the 11th Malaysia Plan, the HSBB 2 proposes to cover all state capitals and selected high-impact growth areas that will see 250k ports encompassing 410k premises by end-2016. It also eyes 100Mbps broadband being made available to all households in the areas involved by 2020. On the other hand, under the SUBB initiative covering suburban and rural areas, it is targeting additional 420k ports encompassing 750k premises will be installed within five years from the start of the project with 20 Mbps broadband made available to 50% of households by 2020.


-As at 30 June 2015, Opcom has net cash of 25 sen per share.

-Strong and favorable political ties.

Focus is on Dato’ Seri Mukhriz Mahathir who is the largest shareholder while his brother Tan Sri Mokhzani Mahathir is the Chairman and Chief Executive Officer of the group.

-Expand its overseas business.

Opcom unit Opcom Niaga Sdn Bhd’s move last year to buy a 40% equity in Unigel (UK) Ltd, in which Executive Director Eric Chhoa has a controlling 60% stake, will help expand its overseas business. Unigel manufactures thixotropic gel at two plants in the UK and US that is sold to over 60 customers globally in the fibre-optic cable industry.
The increasing fiber optic cable production globally means increasing demand for the gel, especially from developing countries in Asia. OPCOM expects its investment in Unigel to bring positive contribution to OPCOM Group results.
Eric Chhoa said the acquisition would contribute positively to the company’s profit as Unigel’s profit was expected to average around US$1.5 million for the year of 2015.

The higher PBT (Q3) recorded was mainly contributed by the gain on fair value adjustment on other investment( A:Rm 1,835,000) and unrealised gain on foreign exchange (B:Rm 2,890,000).
After deducting the A+B, core PBT in FY15Q3 should be RM7,715,000.

Core EPS without A+B for Elsoft in FY15Q3 should be 4.26sen (total shares 181,132,000).

Is this a good or bad news?

Am I correct?

In the latest top 30 major shareholders, surprisingly there are 9 fund houses had injected their money into Opcom. If compare to their Annual Report 2014, there are not even fund house there. But in Annual Report 2015 alone , there are 9 fund houses. There are:

-Kenanga Growth Fund,
-Eastspring Investments Small Cap Fund,
-Great Eastern Life Assurance (Malaysia) Berhad (NULF 1),
-Great Eastern Takaful Berhad (Mekar),
-Great Eastern Takaful Berhad (Credit Takaful PIA),
-Overseas Assurance Corporation (Malaysia) Berhad (MGF),
-Great Eastern Life Assurance (Malaysia) Berhad (LBF),
-Great Eastern Takaful Berhad (Majmuk),
-Great Eastern Takaful Berhad (Operator)

I think all these fund houses are Smart Enough to find Emerging Opportunities in Opcom.

<<<<Strong Growth in future: A Dominant Local Player in Fiber Optic Cables>>>>

Opcom is estimated that it has approximately 65% to 75% market share for fiber optic cables in Malaysia, making it the leading player in the segment.


OPCOM had been flattish for FYE 2015. However, OPCOM had been seeing a strong growth in the 1Q FYE 2016 which was driven by the 3-year contract secured with Telekom Malaysia Bhd (TM) for supply and delivery of cable and related systems ( RM 210m).

While this is just the start, OPCOM will definitely benefit more from the launch of the high-speed broadband phase 2 (HSBB2) and sub-urban broadband projects. The 10-year contracts are worth RM1.8bil and RM1.6bil respectively. As the main supplier to Telekom Malaysia, the country’s largest consumer of fiber optic cables. Opcom’s prospects looks to be bright.This, in turn, means Opcom will see a constant and stable demand and growth for fiber optic cable and solutions in future.

To recap, the HSBB2 and SUBB projects were already tentatively awarded to TM, further details with regards to government grant and tax incentives (if any) are still lacking. According to TM management had earlier said that further details and formal award of the two projects should be concluded by Nov this year (2015). TM is expected to invest RM1.8bn in HSBB2 over 3 years and RM1.6bn in SUBB over 5 years.

According to the 11th Malaysia Plan, the HSBB 2 proposes to cover all state capitals and selected high-impact growth areas that will see 250k ports encompassing 410k premises by end-2016. It also eyes 100Mbps broadband being made available to all households in the areas involved by 2020. On the other hand, under the SUBB initiative covering suburban and rural areas, it is targeting additional 420k ports encompassing 750k premises will be installed within five years from the start of the project with 20 Mbps broadband made available to 50% of households by 2020.


-As at 30 June 2015, Opcom has net cash of 25 sen per share.

-Strong and favorable political ties.

Focus is on Dato’ Seri Mukhriz Mahathir who is the largest shareholder while his brother Tan Sri Mokhzani Mahathir is the Chairman and Chief Executive Officer of the group.

-Expand its overseas business.

Opcom unit Opcom Niaga Sdn Bhd’s move last year to buy a 40% equity in Unigel (UK) Ltd, in which Executive Director Eric Chhoa has a controlling 60% stake, will help expand its overseas business.
Unigel manufactures thixotropic gel at two plants in the UK and US that is sold to over 60 customers globally in the fibre-optic cable industry.
The increasing fiber optic cable production globally means increasing demand for the gel, especially from developing countries in Asia. OPCOM expects its investment in Unigel to bring positive contribution to OPCOM Group results.
Eric Chhoa said the acquisition would contribute positively to the company’s profit as Unigel’s profit was expected to average around US$1.5 million this year (2015)

Amended.

The most cash rich FMCG packaging company with the highest dividend yield in BURSA.

Price: Rm2.05.
Par Value: Rm 1.00
Number of share: 20.50m ( one of the small cap stock which has lowest liquidity in BURSA, this is the reason why investors stay away from it !!!!!!!)
NTA: Rm 1.61 (end June 2015 )
Total number of shares purchased and/or held as treasury shares against the total number of outstanding shares of the listed issuer : 7.27%

Advanced Packaging Technology (M) Bhd produces high-quality flexible packaging materials (single and multi-layers ) catering to a wide cross-section of industries in both the local and overseas markets such as snack foods, instant noodles, sweets and confectionery, liquid condiments, frozen foods, spices, beverages, medical/surgical products and pharmaceuticals, among others.

ADVANCED PACKAGING TECHNOLOGY (M) BHD will be a great and interesting company to be invested into based on:

--Very strong balance sheet.
Zero short-long term borrowings. Net cash per share of 79.80 sen (end June 2015 ) or circa 39% of share price.

-Attractive dividend yield.

Although the Group has no official dividend policy, it has been paying dividend consistently since listing. As for FY2014, it paid total dividend of 12 sen translating into 5.85% dividend yield. Dividend could be on rising trend to track earnings and become a potential re-rating catalyst for the Group.

----Dividend will be announcing in December, 2015 by looking back at the trending.----

-Inelastic demand.
Over 90% of the products produced by Advanced Packaging Technology (M) Bhd are supplied to the food and beverage packaging industry. The company supplies flexible packaging products to MNCs in the food industry. The food and beverage industry is generally a resilient business during periods of economic downturns.

-Better times ahead.
FY15 promises to be a better year for the company. Prices of raw materials like polyethylene (PE) and polypropylene (PP) films have been falling since 4Q14, in line with the decline in crude oil prices. This is not a surprise as PE and PP films are derivatives of crude oil.

PROPOSED BONUS ISSUE?

Deep in value!!!!


Hwang Capital (M) Bhd. is organised into the following operating segments: moneylending, investment holding and property investment.

To recap, Hwang Capital (M) Bhd. has on 7 April 2014 completed the disposal of its entire equity interest in Hwang-DBS Investment Bank Berhad (HDBSIB) and its subsidiaries and associated companies to AFFIN for a total cash consideration of RM1,300.4m. Hwang Capital (M) Bhd. is required to maintain its listing status for a period of two (2) years from the date of the Sale Purchase Agreement (SPA) signed between HDBS and AFFIN. The SPA was dated 22 January 2014.

More capital repayments / special dividends in the future? In the event that Hwang Capital (M) Bhd. is not able to identify and acquire any potential businesses in the next few months , it understand that the Board of Director of Hwang Capital (M) Bhd. has no intention to maintain the listing status. Under such circumstance, Hwang Capital (M) Bhd. is likely to carry out capital repayment and to go through liquidation exercise for the remaining assets and to return any net cash recoverable to the shareholders.

=====Safe-Heaven!!!!=====

-Strong and almost all-cash for its net assets.

A cash rich company with net cash position and zero borrowings .
Net assets per share is Rm3.24 for the financial year ended 31 July 2015..

Attractive dividend yield of of 4.9%. (A final dividend of 10 sen per share will be reward to shareholders in November 2015).


It will be exciting in the next few months if and when it liquidate all its assets and return the proceeds to its shareholders.

-----Harbour, a logistics leader with stronger earnings ahead from Sarawak-----


- A dominant logistics player in East Malaysia (in Sabah and Sarawak)
with a market share of >50% and a solid track record.

-A resilient company benefiting from the major SCORE project in Sarawak.
Benefitting from the logistics demand and mammoth construction projects from the local construction industry (PETRONAS Train 9, Samalaju Industrial Park, Balingian power plant) and industries at Samalaju Industrial Park (for the handling of raw materials/finished products).

-Financial Position.
It has net cash 5 sen per share. Thus Harbour is a fairly healthy company.

-Declared a DPS of 5.5sen for the financial year ended 30 June 2015.(21% of EPS).

-For QE30/6/2015, Harbour's net profit increased by 26% q-o-q or 23% y-o-y to RM15.6 million while its revenue increased by 17% q-o-q or 48% y-o-y to RM147 million. Projecting core EPS growth of 21% in FY6/16, underpinned by its logistics division (which will benefit from the increasing outsourcing logistics demand in East Malaysia), potential logistics contracts for Baleh and Baram hydro-dams and lumpy property earnings recognition in FY6/16.


- A “lumpy” income from property development in FY16.
The group has launched and developed a 130 acres land with into a mixed commercial and industrial zone with a potential gross development value (GDV) of RM1 billion spanning over 10 years. The project is expected to generate strong margins due to their low land cost with land and construction cost expected to constitute only six per cent and 50 per cent of GDV. Response from buyers has been encouraging so far with 60 per cent take-up rates for the first phase of the project (industrials/shoplots) launched, which is estimated to be worth circa RM120 million.

Investment case:

-SHH Resources is mainly engaged in manufacturing and sale of solid wood furniture and exports to the US. As an export oriented company, SHH is one of the beneficiaries of US economic growth.

-SHH better margin had been contributed by it's in-house processing of the timbers and woods, which had been a definite boost for the company operation profits.

-Benefiting from US economic recovery and Ringgit weakening;
Having majority of the sales denominated in foreign currencies, mainly USD, expect the strengthening of the USD against the Ringgit Malaysia to boost the group’s bottom line.
The weakening of the ringgit against the greenback in the recent months was good for local furniture exporters as Made-in-Malaysia furniture was becoming cheaper for US buyers.

-Attractive dividend yield of of 6.17% (A final dividend of 10 sen per share will be reward to shareholders in October 2015).

-Strong balance sheet to withstand external shocks.
It has net cash per share of 31 sen (Based on 49,998,00 shares).

-Strong coming 1Q 2016 with stronger revenue.

-Undervalued land and properties with properties valuation done back at 1994 to 1996. It has fully integrated furniture manufacturing facilities on 17ha in Pagoh, Johor. (Pagoh Education Hub is located 3km from SHH manufacturing facilities)

1Q net profit 79.128 million (increased 1201.88%)

The better results for both revenue and pre-tax profit in the current quarter was mainly attributable to the completion of the sale of two parcels of leasehold land in Seri Kembangan coupled with higher revenue recognition and profit contribution from da:men mixed development project in USJ, Subang Jaya.

1H net profit 8.563 million (increased 26.34%)

Undervalued stock?????

Issued & Paid-Up Share Capital RM276,617,000(276,617,000 ordinary shares of RM0.50 each)

-No borrowing.
-Strong net cash position, net cash is around Rm137,629,000 or net cash per share is around Rm0.50,-----accounted for 87% of share price-----.
-Dato’ Ng Boon Thong @ Ng Thian Hock and his son control 68.5% of Hil shares.
-Will Dato’ Ng make a move to take over the company?
Assumed he making an offer of Rm0.80 per share or Rm70 m @ 31,5% of Paid-Up Share Capital 276,617,000 ordinary shares of RM0.50 each, he will immediately own the Rm68m cash of the company.

Why Litrak value has emerged again ?


-The next toll hike for Litrak’s LDP concessions is scheduled in 2016 (entitled to a 48% toll increase from January 2016 under the concession agreement).

-SPRINT starts generating profit this year.
As a result of the improvement in traffic volume on SPRINT Highway plus the increase in toll rates on 1 January 2015, for Damansara and Kerinchi Links, as allowed for under the Concession Agreement, SPRINT finally managed to be in a profitable position for the current year ended 31 March 2015.


Why Litrak upgrade to buy?

Due to:
-steady dividend payout, dividends will be at least 20sen in FY16.
-growth certainty from rate hikes bound by the concession agreement (if the toll rates are not revised, it will get compensation from the goverment as stipulated in the CA).
-its stable earnings trajectory (defensive nature),
-traffic volume continues to grow.
-strong free cash flow.

<<<<Hidden Gem In Bandar Bukit Puchong >>>>


****The overlooked landbank.****

TAHPS owns ****353acres of freehold vacant land**** in Bandar Bukit Puchong, Puchong, Selangor since 1993.
Currently net book value of the 353acres land showed at financial year ended 31 March 2014 is Rm 63,439,000. It sits on the balance sheet or book value at RM179,717 per acre or at Rm 4.12 per sq ft.
According by valuers, the market value for the above vacant land currently is worth between Rm60 to Rm120 per sq ft or between RM2,613,600 to RM5,227,200 per acre.

This shows that TAHPSs ~353acres of prime landbank in Bandar Bukit Puchong, Puchong worth between RM922,600,800 to Rm1,845,201,600.

It sees deep underlying value in the company as its 353acres of freehold vacant land already could worth at least RM RM922,600,800 or RM12.33 per share with issued and paid-up capital Rm74,853,000. (74,853,000 ordinary shares of Rm1 each).

TAHPS is an asset play. The company’s balance sheet and operating cash flows are healthy, solid and with zero borrowings .
Though there is no dividend policy but the payout does seem attractive currently. Expects a DPS of 32sen to be announced soon.

A Bright Recovery Year?

Bright Packaging is a cash rich, well-established regional FMCG packaging company ( serving the tobacco, liquor, confectionery and pharmaceutical industries) and one of the largest aluminium foil packaging players in Asia Pacific.

Bright Packaging will be a great and interesting company to be invested into based on:

-Capacity expansion.
The expansion may allow the company to meet its current and future demand of the growing clientele and possibly to cater to new markets.(expanding into the Russian market). With two new production lines becoming operational in April 2015, Bright Packaging is positioned to double revenue for 2015.

-Declining raw material prices positive for FY15.
FY15 promises to be a better year for the company. Prices of raw materials like polyethylene (PE) and polypropylene (PP) films have been falling since 4Q14, in line with the decline in crude oil prices. This is not a surprise as PE and PP films are derivatives of crude oil.

-Diversified exports markets with reputable clientele.
More than 90% of its products are export oriented. Major clients include Philip Morris and its affiliates, Marlboro, Dunhill, Lucky Strike, Kent, Pall Mall and Benson & Hedges. In the household goods and beverage segments, the group supplies to Johnnie Walker, Chivas Regal and various affiliates of Diageo, Unilever and Procter & Gamble.

-Inelastic demand.
Over 90% of the products produced by Bright Packaging are supplied to the food and beverage packaging industry. The company supplies flexible packaging products to MNCs in the food industry. The food and beverage industry is generally a resilient business during periods of economic downturns.

-Favourable USD/MYR impact.
Expected to benefit significantly from foreign exchange moving in company favour. Bright Packaging sales are denominated in US dollars which has appreciated 15% against the Ringgit. The global macroeconomics indicators continue to show signs of dollar strength for 2015 which should bode well for Bright Packaging.

-Very strong balance sheet with undemanding valuations.
Bright Packaging is a debt free company with strong net cash per share of RM0.29 (accounted for 64% of share price).

Bright Packaging will be looking to trend higher in the coming days.

-Latest result showed that netcash per share is around Rm1.13 (Diluted is around Rm1.00), accounted for 75.3% of its current share price.

-Declared a second interim dividend of 3 sen per RM1 share on Thursday. The dividend will go ex on June 12.

-Dividend yield is around ^10%^.（ a first interim dividend of 12 sen plus a second interim dividend of 3 sen）

-Will cash rich company Goh Ban Huat (with PN16 cash-company status), with zero borrowing to become as a largest timepieces retain chain in Malaysia through reverse takeover (RTO) in future?

An Awakening Gem Waiting To Be Unearthed Which Can Worth RM12.33 Per Share. Buy Call In Long Term.

<<<<A good candidate for a privatization exercise with dividend yield 4.7%. >>>>
-Issued & Paid-Up Share Capital RM74,853,000 (74,853,000 ordinary shares of RM1.00 each)


It appears to be a good candidate for a privatization exercise based on prevailing valuations due to :

-Very illiquid counter but very solid company. Therefore, well positioned to pursue value accretive acquisitions or return more cash to shareholders or it could be a potential privatization candidate.

-Undemanding valuation with strong netcash position, netcash is around Rm134,133,000 as at 31 March 2015.

-Netcash per share is around Rm1.79, accounted for 26% of its current share price.

-It holds land bought at low prices.

-Proposed a first and final single tier dividend of 32 sen per share in respect of the financial year ended 31 March 2015, share price should be supported by dividend yield ^4.7%^.

----Why Signature with a BUY recommendation?----

Trading at a low trailing P/E, which is undervalued as compared to its peers.
-Healthy balance sheet and cash flows.
-Net cash position.
-Potential higher dividend yield in future. Its high DY would certainly make it an income stock.
- It is on track to meet our full-year forecast, despite the increasingly challenging economic environment. Its resilient earnings are due to a large secured order book, which will sustain earnings for the next 12-18 months.
-Profit margins should expand due to growing of economies of scales.
-It will sustain double-digit EPS growth for more than three years.


<<<Confluence of opportunities>>>
-While the overall property sector is seeing signs of a slowdown, Signature's operations have just started to gain momentum.
Signature's earnings will be supported by:-
-Being the industry’s dominant player for modular kitchen systems (60% to 70% ofmarket share), the company is poised to handle most of the industry’s major contracts.
-The strong domestic property boom particularly in the high-end market. Job secured this year should be even stronger than last year.
-Favourable housing trends for premier kitchen players;
-An intensified 11MP and IDR, hence, contributing to stronger Project Sales.
-Rising demand and supply of luxury homes;
-Increase in housing supply.
-Management has guided that its current order book stood at RM160mn as at Apr-15. This outstanding RM160mn would be converted to revenue and recognised in FY16 and FY17. In the meantime, Signature’s tender book has hit a record high level of RM400mn, which can be used to replenish its order book, given the tender success rate of 50-60%.

冷眼
---现金为王---
从消极角度看，长期拥有大量现金，被视为企业主没有充分利用资源，以加速企业盈利的增长。
但从积极的角度看，此类股票具有强韧的生命力，经得起暴风雨的吹袭，“现金为王”，此言不虚。
Cash is King. Farlim is a company which has net cash per share of Rm0.69 as at Dec 31, 2014. .

The highest dividend paying stocks in July with dividend yield of ^8%^.
Dividend is 5 sen per share. The entitlement date for this dividend is on 08 Jul 2015.

Up!Up!Up!Up!Up! Bravo, for Farlim management. We, minor shareholders got something from its assets sales!

----Why YSP with a BUY recommendation?----
-A cheaper proxy to healthcare stocks.
-Operating in a defensive industry.
-Well positioned in the regional generic pharmaceutical market.
The company will be able to tap on more blockbuster drugs as and when the patents expire. In addition, there would be shift in demand from original patented drug to its generic substitute given the latter’s price advantage.
-Solid marketing network have been established in ASEAN region.
Diversifying its manufacturing based around the region, the group would be able to plan strategically its drug production based on target export destination, which could translates to cost savings in term of operations and logistics.
-Trading at a low trailing P/E, which is undervalued as compared to its peers.
-Healthy balance sheet and cash flows,
-Diluted net cash per share is around Rm0.24.
-Generating reasonably high dividend yield as compared to its peer.
-Potential higher dividend yield in future.
-Dividend proposed 6.5 sen for the financial year ended 31/12/2014 is around the corner, share price should be supported by dividend yield ^4%^.

2015E dividend of 5 sen is just around the corner should help support the share price.

<<<<A good candidate for a privatization exercise with dividen yield 8%. >>>>

FARLIM GROUP (MALAYSIA) BHD: Issued & Paid-Up Share Capital RM140,326,100 (140,326,100 ordinary shares of RM1.00 each)

The company is involved in property development. It is currently (Nov 2014) developing the Bandar Baru Ayer Itam township.

It has not been very aggressive in undertaking new projects. Property development cost had been flattish between rm17 million and rm20 million in the past four years.

Its book value stood at rm1.08 per share. Its assets understated as it holds land bought at low prices. The company has 208 acres of land in Terengannu (Mukim of Kertih, Kemamam) with a book cost of rm1.6 million or 17.7 sen psf and 2.23 acres in Penang carried at rm4.2 million or rm43.3 psf. Both plots have not been revalued since 1998.

It appears to be a good candidate for a privatization exercise based on prevailing valuations due to :

-With borrowing only Rm531,899.
-Cash is King. Strong net cash positon, net cash is around Rm96,815,624 as at Dec 31, 2014.
-Net cash per share is around Rm0.69,accounted for 110% of share price.
-It holds land bought at low prices.
-Proposed a first and final single tier dividend of 5 sen per share in respect of the financial year ended December 31, 2014, share price should be supported by dividen yield ^8%^.
-TAN SRI DATO’ SERI LIM GAIT TONG through Farlim Holding Sdn Bhd owns a 43.2% stake. Will TAN SRI DATO’ SERI make a move to take over the company?
==========================================================
To privatize the company, assumed TAN SRI DATO’ SERI making an offer of Rm0.70 per share or Rm56m @ 56.8% Paid-Up Share Capital 140,326,100 ordinary shares of RM1.00 each, he will immediately own the Rm40m cash of the company.
==========================================================

@@@@Near -term re-rating catalyst@@@@
EPMB (a tier-1 automotive component supplier for Honda and Perodua : Anticipation of a stronger 1Q as production will be boosted by the rush in prior to the effective implementation of GST in April 2015.

Based on MAA report, automotive sales recorded significant improvements in Mar 2015.


Perodua reporting record monthly sales of 22.5k units (+37.8% yoy; +21.0% mom) in Mar on the back of strong heighten deliveries for Axia and MyVi. Axia has received bookings of 100k units by mid-Apr and delivered 60k units by end Mar.

Proton reported mom improvements in Mar with 10.5k sales (-14.5% yoy; +27.6% mom) after sales campaign launched by end Feb.

Honda maintained its top spot among foreign marques with record month sales of 9.6k units (+94.9% yoy; +58.6% mom) attributed to the highly demanded HRV (mini SUV) and existing sales campaigns boosting other models.

Potential re-rating catalysts for the stock:
- Honda is expanding its presence in Malaysia by establishing regional office, part warehouse, distribution center, training facilities and more 3S centers.
Expect the supply of parts for the new Honda model will significantly boost EPMB’s revenue base over the next few year.
.

Why pick Turbo?

-Able to sustain very high profit margins and superior ROIC even in tough business environment.
-Debt free with excess cash of RM0.44 per share.
-Generates a good amount of free cashflow.
-Profit margin should be improved further due to appreciation of Singapore Dollar vs Rm.
-5 sen dividend is around the corner.

Catalyst for First quarterly rpt for the financial period ended 31/12/2015

---Earnings recognition of the Axia (Perodua) is set to accelerate as production is ramped up from 7K-8K/month to c. 9K- 10K/month.

---Proton’s Iriz sales picked up in March, with more than 4,000 units sold.
Management is targeting 5,000 units of sales per month for Iriz and 12,000
per month overall for Proton from April onwards.

---In 2015 thus far, Honda's sales has been the leading non-national brand.

This bodes well for EPMBs parts units.

Undemanding valuation?????
Undervalued stock?????

GBH: Issued & Paid-Up Share Capital RM185,757,033 (185,757,033 ordinary shares of RM1.00 each)

-No borrowing.
-Strong net cash, net cash is around Rm230,000,000 or net cash per share is around Rm1.23,-----accounted for 78% of share price-----.
-Assumed GBH chairman Tan Sri Tan Hua Choon controls 64% of GBH shares.
-Will Tan Sri make a move to take over the company?
Assumed he making an offer of Rm2.00 per share or Rm140m @ 36% Paid-Up Share Capital 185,757,033 ordinary shares of RM1.00 each, he will immediately own the Rm80m cash of the company.
-Potential an undertaking a reverse takeover (RTO) of GBH?
Kindly advised.

The next gem?
Will cash rich company Goh Ban Huat, with zero borrowing to become a retail chain operator of timepieces through reverse takeover (RTO) in future? Potential bonus or special dividend?

Land sale completed.

GBH chairman Tan Sri Tan Hua controls 64% of GBH share.

Disposal of 13.93 acres of land that currently houses it ceramic ware manufacturing operation to another Tan-linked company, Keladi Maju Bhd, for RM192.37 million was completed on 30/03/2015.
Net gain arising from the land sale was RM71.2 m.

Following the land diposal, GBH will fall into the PN16 cash-company status, whereby it has to submit a regularisation plan to the regulator within 12 months.
No borrowing. Net cash is around Rm230,000,000.

What will Tan Sri do? Capital repayment call or make take over offer?

Cash is King.

Why pick UPA?
-Largest diary manufacturer in Malaysia.
-Higher N.T.A Rm2.43, net cash per share Rm0.32.
-Healthy balance sheet and cash flows;
-Profit margin should be improved further due to lower raw materal prices...low petrochemical prices, depreciation of the MYR;
-Potential proposed bonus issue;
-Dividend proposed 8 sen for the financial year ended 31/12/2014, share price should be supported by dividen yield ^5%^.

Insas-PA 拥有以下优点：
-享有每年4%的利息回酬 = 4 sen per share 以 Rm1.00 发行价计算。
-五年后会被赎回。赎回价格为Rm1.00 （如果没有任何变卦）
-相等于五年内将会获取共 Rm0.20 的利息。

For example：本钱Insas-PA 股价（Rm0.88）

<五年回酬 （Rm)>
$$$$利息回酬$$$$ <Rm0.20> plus 资本增值$$$$ <Rm0.12>
五年总回酬 <Rm0.20> plus <Rm0.12> = Rm0.32 (36%), 平均每年回酬 7.2%.
这回酬不会很出色，但应该是很稳定.
注：$$$$资本增值$$$$为五年后，赎回价格为Rm1.00 所带来的潜在回酬。

Financial year end net profit 6.575 million (increased 26.49%)

Why pick SCC?
-Asset-light
-Net profit margin was decent.
-Yield-seeking investors, dividends 10 sen per share in 2012-2013, translating into a higher-than-market average net yield of 6.7%.
-Experienced and conservative management,
-Strong free cashflow with minimal capex,
-Net cash balance sheet, net cash of RM15.0 million or 35.1 sen per share.