oil price is matter. If it is good, they will not have issue to get the financing.

definitely initial cheated by IB RHB and HL. Great lesson learnt.

Later you will see government fund to push up the price.

Election coming. They want to collect cheap n sell with profit for funding.

Good result like DRB. Loss reduce by 50%.

Next month Hari Raya will rise. No worry. Buy and keep.

DRB will still lose money in two more quarterly report. Dun over optimistic.

EPF throw again. Next 2 days will up back.

Safe wait for result out only buy.

the trend look similar to last quarter. before result out is at the top. just week before result out starting to drop. When bad result out, drop even more on the same day.

If everyone expect it come, most likely it will not come. If not it will not called tsunami.

MO1 goreng up. So many GLC funds buy.

Ya we should check what is the different of major shareholder for Salutica and Dancing versus Ptrans and Hsseb.

Ya agree. Check the trend of Salutica IPO.

No support and it had break 0.76 support.

It will not come better in this year. Proton turn around is not easy and RM will keep on dropping.

share buy back 0.905. No need worry.

safe to buy. Nett asset per share is much higher than current share price.

RHB new TP RM2.

Banking On Water Filtration Products Potential Market Cap: USD400m
Bloomberg Ticker: VSI MK
VS Industry is acquiring a 20% stake in NEP for MYR60m, which we view
positively as this will help boost its earnings. It will also allow the group to
ride on the success of NEP’s famous Diamond water filter products as the
latter expands into China and beyond. Maintain BUY with a higher SOP-
derived MYR1.72 TP (from MYR1.68, 24% upside) based on an unchanged
11x P/E. We favour its increasingly diversified earnings base, which is
underpinned by increasing orders from new and existing customers.
Share Data
Avg Daily Turnover (MYR/USD) 5.54m/1.38m
52-wk Price low/high (MYR) 1.03 - 1.68
Free Float (%) 51
Shares outstanding (m) 1,170
Estimated Return 24%
Shareholders (%)
Datuk Beh Kim Ling 9.8
BNP Paribas Wealth Management
Singapore
8.8
Koon Yew Yin 8.8
Share Performance (%)
YTD 1m 3m 6m 12m
Absolute (11.5) 17.8 13.0 1.5 25.5
Relative (10.1) 15.7 15.7 (1.1) 28.6
Source: Bloomberg
Source: Bloomberg
Source: Bloomberg
Earnings accretive at bargain valuations. VS Industry is to acquire 20% of the
enlarged issued and paid up share capital of NEP Holdings (Malaysia) (NEP) for
MYR60m in two tranches. This will be fully satisfied in cash. Based on a profit
guarantee of MYR40m (or MYR8m in proportion to VSI Industry’s stake), the
deal implies an FY17F acquisition P/E of 7.5x. This is below NEP’s peers’
average of ~18.3x and VS Industry’s own 8.8x. The acquisition will be funded
via a combination of internally generated funds and borrowings, and is expected
to be completed by 1Q of 2017.
NEP in a nutshell. NEP is famous for its award-winning Diamond brand water
filtration products (incepted in 1995). These are certified to meet stringent
NSF/ANSI water safety standards and distributed via a wide network of 3,000
dealers. Diamond is a market leader locally (estimated at 30%) and has a
prominent presence across regional markets like Singapore and Hong Kong
(~20-30% market share). NEP booked an FY16 (Jun) PAT of MYR29m and has
been growing at a 3-year CAGR of 19% between FY13-16. Going forward, the
firm’s prospects will be driven by its expansion into China, where it has already
seen early signs of success – in Jul 2015, it secured a deal to distribute CNY2bn
worth of water purifier products over the next five years.
Our take. The acquisition is synergistic for both VS Industry and NEP. As the
latter looks to ramp up its manufacturing scale to meet growing demand for
Diamond products in China, it will be able to harness VS Industry’s expertise in
original design manufacturing (ODM) and manufacturing. At the same time, this
translates into a new revenue stream for VS Industry’s China operations and
allows it to share in NEP’s profits as an associate. In the longer term, we think
the residential treatment market bears promising potential, as concerns over
contaminated water in polluted cities in China continue to drive demand for safe
drinking water. According to Launch Factory 88, the country’s water purification
market has been growing at ~20% pa.
SOP-derived TP raised to MYR1.72. We raise our FY17F-18F earnings by 3-
4%, as we factor in higher associate profits from the NEP acquisition, estimated
at MYR5-8m pa. We pare FY16F earnings by 8%, as we expect more Keurig
sales to spill into FY17 rather than FY16. Maintain BUY, as we continue to
favour its increasingly diversified earnings base, which will be driven by growing
orders from new and existing key customers, including Keurig and Dyson. Weak
consumer sentiment, plant accidents/shutdowns and forex movements are the
key risks to our call.
Source: Company data, RHB
Forecasts and Valuations Jul-14 Jul-15 Jul-16F Jul-17F Jul-18F
Total turnover (MYRm) 1,715 1,937 2,050 2,593 3,050
Reported net profit (MYRm) 54 133 124 185 217
Recurring net profit (MYRm) 36 107 124 185 217
Recurring net profit growth (%) 130.5 201.6 15.6 49.3 17.0
Recurring EPS (MYR) 0.04 0.09 0.11 0.16 0.19
DPS (MYR) 0.02 0.05 0.04 0.07 0.08
Recurring P/E (x) 36.3 15.1 13.1 8.8 7.5
P/B (x) 2.46 2.09 1.91 1.69 1.49
P/CF (x) 28 143 7 13 8
Dividend Yield (%) 1.7 3.4 3.2 4.8 5.6
EV/EBITDA (x) 13.4 7.7 7.7 5.8 4.9
Return on average equity (%) 10.7 20.4 15.2 20.5 21.2
Net debt to equity (%) 44.7 17.2 4.4 5.9 1.7
Our vs consensus EPS (adjusted) (%) (11.4) 9.4 1.4
86
102
117
133
148
0.9
1.1
1.3
1.5
1.7
VS Industry (VSI MK)
Price Close Relative to FTSE Bursa Malaysia KLCI Index (RHS)
5
10
15
20
25
30
35
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Vol m 8
10
12
14
16
18
Jan-13 Jan-14 Jan-15 Jan-16F
Core rolling P/E (x)
Analyst
Christine Chua
603 9207 7620
christine.chua@rhbgroup.com

Dun know how to attach the report. From Research plus RHB OSK. They sent the update to my email.

RHB OSK had increase the TP to 1.72. Positive for the new purchase of NEP.

But the synergy is make sense and good. One is expert on manufacturing the other is good on marketing. The truth value is on the synergy effect.

To be correct 60mil just 20%. Which mean Min nett profit 8 mil for 2017 only.

Definitely good news. The insider alr buy bf the news.

buy vs lah. All the way up.

Long term should go back above RM3.

Ya when every oil company not invest, future will have sudden shoot of oil price due to fall of output. But near term target 1.8 is reasonable.

ya agree. current price is even lover than when oil price USD 29.

https://m.facebook.com/story.php?story_fbid=1284822444879107&id=975768935784461

Apple can grow even without Steve Job. Who do you think HB ex-CEO and A-team is? More important than Steve Job at Apple. Amazing! If this is the case, HB should be the major shareholder in BA. What do you think?

I believe 24.5 bil book order is enough for 2015 as long as no big screw up
. Hong Leong research say below:
FSRU and FLNG segments provide new growth opportunity
going forward. We understand the company has high chance
to secure a FSU/FSRU project with 18 years contract
duration in Europe. We have not captured any contribution
from FSRU projects in our earning assumptions. This will be
the wildcard for the company.

I believe in the new management and I think they are smart. From CIMB:Excluding three one-offs amounting to RM147m (RM66m allowances for trade receivables, RM32m impairment charge for assets held for sale and RM49m provision on additional works for an FPSO vessel installation), Bumi Armada posted FY14 core net profit of RM366m, down 15% yoy due to weakness at the offshore support vessel (OSV) and transport and installation (T&I) businesses.
They reduce the overall profit for 2014 and reduce tax at the same time they buy some insurance for 2015. This is prudent management for risk. I dun think they are the gamble type. If you buy now actually they already help the investor to take care some risk.

Consider this counter is good. Q4 result lose money and only drop few cent and stable down. Compare with FGV Q4 earn money and now the share free fall.

Wah if BA become penny stock should be the hottest one. Let prepare your money to goreng.

When there is dividend by logic EPF will not continue sell the share. Their investment strategy is secure return. Actually EPF had bought many share on last Dec during the lowest point, before the Q4 financial result I believe they just par down for better risk management. Their strategy is when there are large volume of buyer and they will dispose some for good price.

There are no really reliable negative news to cause more panic sell. If you consider there are substantial of foreign investor holding in this counter, I believe they will not believe the rumor. And since all banker analyst remain the buy call for this counter, it will prevent the share continue to fall. Logic to consider.

Brent crude oil had rebound faster than expected. Not much expert predict it will fall back to USD 40. Since the crude oil fell sharply last year due to speculation and not merely on supply and demand. It can be rise sharply due to speculation and optimist due to all oil company cut spending, oil rig exploration reduce and etc. So, I believe it will not fall back to the price of last year Dec due to market panic sell.

Besides, it give you more than 1% of return for dividend based on current share price. 2014 people lose money and sell the share and do not get any share of profit for 2014. And now you buy it and directly you share the profit for 2014 plus some potential future value of the company and share. Act logically and I believe the share will not drop to RM1.

I believe a company which give dividend is a good company. If the company really in deep shit, it can give many excuses not to give dividend. Besides, when you buy now, you are riding on the benefit of strong cash flow which is the bonus of exercise right issues previously. You may think for it and for those sell it after exercise the right issues will be a big loss.