Dividends $$$ A first and final dividend of 8 sen was declared in 4Q.(FY13: 5 sen).$$$ PW Financial year end net profit 11.283 million (increased 111.77%)
-Net assets per share is Rm3.76.

<<<<4QFY14 recorded a lower profit, this was largely due to weak selling price of broiler during the quarter, the impact of the east coast floods to the sales of broiler in December, loss on disposal of investment properties and impairment of receivables.>>>

PW VS Teoseng
TEOSENG --- Financial year end net profit 48.792 million (increased 108.74%) ---
PW , already reported strong net profit growth in 9M14 by 125% to RM10.5m from RM4.7m in 9M13 on the back of 14.4% hike in revenue. This means 4Q14 results release should be very impressive if refer to Teoseng financial year end result?

To clinch Phase 2 of the Kuching Central Wastewater project with an estimated contract value of RM700 to Rm800m soon.

Look forward to its dividend payout expected this month in conjunction with its 4Q14 results release. Thus, PW can be a dark horse with very low projected PE & PB ratio, along with satisfactory dividend yield.

$$$$$$$$ Layer business to lead growth & Good potential in egg layering.$$$$$$$$
- It just made its first venture into table eggs production since 2013 (Phase 1) with its new layer farm at Pendang, Kedah. With the layer operation, PW earnings are set to be better than pre-FY13.
The expansion program, known as Phase 2, in the existing Phase 1 farm is on-going, which will be ready by this year-end or early 2016 with the same capacity of Phase 1.
-The group is also under the planning stage for Phase 3 & 4 in the same area of Pendang for similar egg production capacity as Phase 1 & 2 (850,000 eggs) with the same total capex of RM40m. Phase 3 will kick start once Phase 2 is completed.

- Layer operation will increasingly become a significant earnings driver of PW Group once the four phases of layer farm expansion are completed with contribution likely to enlarge to more than 40% from 10% currently.

Besides Teo Seng & LTKM, PW is also worth a look.

PW which is also the country’s leading livestock player reported strong net profit growth in 9M14 by 125% to RM10.5m from RM4.7m in 9M13 on the back of 14.4% hike in revenue.
-Currently, the group operates the largest broiler farming business in Penang, Perak and Kedah.
- It also operates one of the country’s largest feed mills in Bukit Minyak, Penang .
-Net assets per share Rm3.710

Financial year end net profit 10.116 million (increased 10.75%) .

Why pick CSB?
-Has an excellent track record of capital management, having paid out dividends of at least 90% of annual net profits since 2009.

-Potentially commencing quarterly dividends, which will further add to its dividend appeal and boost its trading liquidity.
-Experienced and conservative management,
-Beneficiary of recovery in US consumer spending,
-Strong free cashflow with minimal capex,
-Beneficiary of a strengthening US$,
-Net cash balance sheet,

---CSB’s balance sheet has been in a net cash position since its listing in 2004. As at end-Sept 14, the company was in a net cash position of RM18.4m or 15.3 sen per share. It has no outstanding debt or dilutive warrants.---
---Believe final dividend of 5-6 sen per share is possible, which will translate into a full-year dividend of 10-11 sen (8.8-9.6% annual dividend yield).---

Its products are zero-rated for the purpose of GST calculation as
98% of its revenues are derived from exports.
Expect a stronger 2H as customers ramp up orders ahead of the Christmas sale period. Full-year FY14 revenues should exceed RM60m, while net profit should surpass Rm11m.

CSB sells over 90% of its products in US$, even to non-American locations,
such as UK and Australia. As is typical of an export industry, it is a beneficiary of a strong US$ and a weak RM. For every 1% appreciation in the US$ vs. RM,CIMB research estimates that CSB’s revenues and earnings will rise by 0.9% and 3.8%.
As the wooden picture framing industry is already matured in North America,
CSB’s revenues should remain stable, in line with fluctuations in the US
consumer spending cycle and the growth of its major US customers – Michaels Stores, Hobby Lobby and Larson Juhl.

---A joint development land project with Malton which comprised shop offices, service apartments, offices and hotel, Bukit Jalil City or shopping mall also known as “Pavilion 2” will be officially launched by 1Q15 (estimated GDV over RM4bn).---

---The Crown jewel Bukit Jalil city project – the next property hotspot. The proposed development on the 60-acre prime land in Bukit Jalil is set to be the next property hotspot being strategically situated in the suburb south of KL and has good accessibility to transportation networks by four major highways, namely the Shah Alam Expressway, Puchong - Sungai Besi Highway, Damansara – Puchong Expressway as well as Maju Expressway. 
It is also served by the Ampang Line Bukit Jalil LRT station and Sri Petaling LRT station.---

--- Thus, there will be a growing demand for properties within the vicinity especially from the growing vibrancy via Pavilion 2 upon completion. ---
---Apart from the location, the growing university population such as the International Medical University (IMU), the Asia Pacific University College of Technology & Innovation (UCTI) and Asia Pacific University (APU) will also drive demand for students’ accommodation.---

---This year could be a big year for HSL. ---

Expect HSL to clinch Phase 2 of the Kuching Central Wastewater project with an estimated contract value of RM700 to Rm800m in 1QFY15.
HSL trading at close to historical mean despite earnings growth potential.

Its strong balance sheet with a ---net cash--- of MYR129.3m or 22 sen/share as at 30 Sep 2014, and amongst the highest margins in construction space.

HSL has the Letter of Intent to undertake Phase 2 and materialisation to an award would boost its orderbook by 73%. The award of Phase 2 has been long delayed due to financing issues but this has been resolved.
With its track record and specialised equipment, HSL is poised to clinch the P2 that could lead its orderbook surging to a new high.

What to expect for HSL in 2015?
Road and water infrastructure works in Kuching (Phase 2 of Kuching Wastewater treatment plant (RM700m)), Pan Borneo highways (RM27b), SCORE (Samalaju, Tanjung Manis, Mukah) infra-related works.

Why HSL be selective in 2015.
(i) has strong orderbook, (ii) face minimal earnings risk i.e. high probability of meeting new orderbook replenishment expectations and sustainable margins, (iii) will benefit from the news/contract flows in 2015, and (v) have compelling valuations.

HLIB Researh
---Patience will be rewarded. The amicable solution to the water impasse in
Selangor State (which is expected by 1H15) could be a re-rating catalyst to
ENGTEX, given that the long overdue cement asbestos pipes replacement for over 6000km in Klang Valley. This, together with over 40,000km of aged cement asbestos pipes in Malaysia would provide strong growth potential to ENGTEX earnings in the medium to long term amid Federal and Selangor governments ’renewed non-revenue water (NRW) reduction drive.

ENGTEX: Beneficiary of water pipes replacement
----Opportunity in market selldown after 1:2 bonus issue ex on 5 Dec 14.
ENGTEX share prices corrected 32% from a 52-week high of RM1.47 (Apr 2014)
to a low of RM1.00 (15 Dec) before ending at RM1.07 on 5 Feb. At RM1.07,
ENGTEX is grossly undervalued at trailing P/E multiple of 5.9x, about 52%
discount to its peers .