wait lar....

today vol must go at least 1M, no less than 2.35

Fiamma stands to benefit from the housing boom of the last 2-3 years.While its distribution business is experiencing annual resilient growth of 4-13%, property development is a new growth driver. A few strategic land parcels are now held at low costs, which mean high development margins. The company is also in a net cash position. Based on our SOP valuations, the stock could be valued at MYR3.20-3.30.
 Distribution: a resilient business. Fiamma distributes home appliances and has a property development division, which indirectly and directly ride on the local property cycle respectively. Despite the housing market’s mini ups and downs, its distribution segment has achieved 4-13% growth per annum previously. It has been strong in the home appliances market with a wide distribution network nationwide. This segment typically yields 30-40% gross margins.
 Property – a new source of growth. Fiamma will see a new growth driver led by its property development wing. The market may not be aware of this business as yet, but it contributes ~25% of total turnover.While Fiamma’s existing Centara project is expected to be completed in Oct/Nov 2014, it has >MYR1bn worth of projects in the pipeline, including MYR600m high-rise developments at Jalan Yap Kwan Seng (Kuala Lumpur) and the MYR400m VIDA residenz (Johor Bahru). By end-2015, management also plans to utilise its land behind Wisma Fiamma for development after an existing warehouse there is moved to Klang.
 Low land costs creates RNAV re-rating angle. The property development division gives gross margins of 30-35%. This trend is expected to continue as Fiamma’s landbank is carried at low book costs.The most significant contributor to RNAV is the 1.4-acre Jalan Yap Kwan Seng land, with a land cost of only MYR631psf. The current market price for land parcels in the vicinity is already going at above MYR3,000 psf.
 Net cash now. Fiamma is currently in a MYR54m net cash position. We expect it to gear up gradually to ~20-30% over the next two years in view of its upcoming slew of high-rise projects. Dividend payout should remain at about 30%, translating into a decent yield of almost 4%.
 MYR3.20-3.30 FV. Fiamma’s land parcels are in deep value while the distribution segment provides stable income growth. Based on our SOP valuations, the stock could be valued at MYR3.20-3.30. It is currently trading at an undemanding 6.2x FY15f P/E

but ICULS is another or this LR?

like i predicted, same like BONIA, after rights.. all went down... aiks

as long as not yet announce the share prices of placement of private shares... chart shows downtrend, looking for bull flag

still testing RM2.50 this week before reach RM2.90

meanwhile, have a look at fiamma :)

federal let go this time...so should run as normal... let see if any strong support at 1.34 before start collecting

RM2.50 today!

vol low today

still have 0.5 hour!

good gap today! lets see how good it can move... RM2.50!

good news.. no hike in interest for now

bad timing!

0.958... good lar, collect! until end of this month

short term TP 2.5!, next RM3!

gap up today!

good to collect at 0.950

lets ride!

see FIAMMA which i almost let go but suddenly up when the chart shows bad.... they will drive it when it becomes almost bad/worst...

need 0.78 first! :(

hope this week they will update TP into the Price Targets column and let's see Oct property news!

great price movement in FIAMMA today, if continue for 3 days, it will be wonderful, TP3.20!

helmi, when you will collect? 0.415 or lower?

i think can collect at 0.415

to me, still need to break 0.78

what good news? still no update on the pricing right?

im waiting :)

i got info from my dealer, if you didnt get your form by 19/9/14,
Pls call the registrar AGRITEUM Share Registration Services Sdn Bhd
2nd Floor, Wisma Penang Garden
42 Jalan Sultan Ahmad Shah
10050 Penang

Telephone No.: 04 - 228 2321
Fax No.: 04 - 227 2391

RHB starts coverage, TP: 3.20!

Earnings forecasts and valuations
Forecasts. Fiamma’s distribution segment is expected to maintain a single-digit growth in FY14 while the earnings from its property development business will largely drive bottomline growth. Going into FY15, the Centara project will be completed, and earnings from VIDA residenz and the Jalan Yap Kwan Seng project will start to kick in. We, therefore, estimate 15% growth in FY15 . This growth is expected to be more material in FY16 as progress billings from the property developments come in higher.Valuations. We value Fiamma at MYR3.20-3.30, based on SOP valuations. Using our FY15 earnings projections, the stock is currently trading at an undemanding FY15f P/E of only 6.2x. We apply a P/E of 8.8x for the company’s distribution division, which is 30% higher when compared with Khind Holdings (KHIN MK, NR)’s 6.8x. This is justifiable given Fiamma’s ability to achieve much higher margins. We
believe the stock is undervalued, given its: i) resilient growth in the distribution business and earnings kicker from property development, ii) deep landbank value as land parcels were acquired many years ago – hence significant surplus in RNAV, and
iii) high margins from both the distribution and property development businesses.Given Fiamma’s net cash position and consistent dividend payout of 30%, the company’s dividend yield of about 3-4% looks sustainable. We also think there is a
scope for a bonus issue, considering its solid balance sheet and shareholders’ funds.This could potentially enhance the liquidity of the stock.

A Beneficiary Of The Housing Boom
Company background
Fiamma started up marketing mainly the Elba brand of electrical home appliances in 1997. Since then, the company has managed to pick up a number of other brands to widen its distribution reach. Key brands currently carried include Elba, Rubine, Faber, MEC, Tuscani, Haustern and EBAC Home. It also handles agency brands (sole distributorship) such as Omron, Whirlpool and Braun. Given the number of brands it carries, Fiamma has a wide product range to cater for the mass and high-endmarkets. These cover kitchen appliances, pre-fabricated kitchen cabinets, electrical home appliances, bathroom accessories and sanitary ware. Currently, the company has a nationwide distribution network and these products are distributed mainly to electrical shops/outlets and hypermarkets.


While the distribution business has been generating resilient earnings, management decided to have property development exposure a few years ago. In Dec 2008, Fiamma completed the acquisition of two subsidiaries – Uniphoenix Jaya SB and
Oaksvilla SB – that own landbank in Kota Tinggi, Johor. Note that property development is not a new venture for the company, as these subsidiaries were previously owned by its founders. Over the years, Fiamma acquired several other
land parcels, such as the 1.12 acres at Jalan Tuanku Abdul Rahman and 1.4 acres at Jalan Yap Kwan Seng. Currently, the company’s distribution and property development segments contribute 75% and 25% of the company’s earnings
respectively.


Fiamma is now managed by Mr Lim Choo Hong, who is the CEO/group MD of the company. Choo Hong, Mr Lim Soo Kong (non-executive director) and Mr Ngo Wee Bin are the founder members and major shareholders. Choo Hong has more than 30 years of experience in dealing in home appliances. He also has more than 15 years of expertise in property development.

Distribution segment – a resilient but high-margin business
Given the 10 brands and the wide range of products it carries, Fiamma’s distribution segment has managed to achieve an average growth of 4-13% per annum over the past 4-5 years. Earnings from this business have been rather resilient despite the yo-y changes in residential property units

17 SEPTEMBER 2014 08:24AM:
Fiamma stands to benefit from the housing boom of the last 2-3 years.While its distribution business is experiencing annual resilient growth of 4-13%, property development is a new growth driver. A few strategic land parcels are now held at low costs, which mean high development margins. The company is also in a net cash position. Based on our SOP valuations, the stock could be valued at MYR3.20-3.30.
 Distribution: a resilient business. Fiamma distributes home appliances and has a property development division, which indirectly and directly ride on the local property cycle respectively. Despite the housing market’s mini ups and downs, its distribution segment has achieved 4-13% growth per annum previously. It has been strong in the home appliances market with a wide distribution network nationwide. This segment typically yields 30-40% gross margins.
 Property – a new source of growth. Fiamma will see a new growth driver led by its property development wing. The market may not be aware of this business as yet, but it contributes ~25% of total turnover.While Fiamma’s existing Centara project is expected to be completed in Oct/Nov 2014, it has >MYR1bn worth of projects in the pipeline, including MYR600m high-rise developments at Jalan Yap Kwan Seng (Kuala Lumpur) and the MYR400m VIDA residenz (Johor Bahru). By end-2015, management also plans to utilise its land behind Wisma Fiamma for development after an existing warehouse there is moved to Klang.
 Low land costs creates RNAV re-rating angle. The property development division gives gross margins of 30-35%. This trend is expected to continue as Fiamma’s landbank is carried at low book costs.The most significant contributor to RNAV is the 1.4-acre Jalan Yap Kwan Seng land, with a land cost of only MYR631psf. The current market price for land parcels in the vicinity is already going at above MYR3,000 psf.
 Net cash now. Fiamma is currently in a MYR54m net cash position. We expect it to gear up gradually to ~20-30% over the next two years in view of its upcoming slew of high-rise projects. Dividend payout should remain at about 30%, translating into a decent yield of almost 4%.
 MYR3.20-3.30 FV. Fiamma’s land parcels are in deep value while the distribution segment provides stable income growth. Based on our SOP valuations, the stock could be valued at MYR3.20-3.30. It is currently trading at an undemanding 6.2x FY15f P/E

anyone have any TP?

how to know ar? i still have not get anything yet.

Nordi, why you say within a month from now? FBM is getting better?

1.36, very near to 1.34 liao

RHB new TP RM2.60

vol is reduced... have a nap lar

may be not today :)

are you guys ready?

2.11 is quite low.. will it rebound?

I also don't know how it works.. Asked dealer but said its not auto in, but wait for the forms.. But offer must be replied this week? Tue is holiday..

im in!

ok, im in 770 already.. wait for the push!

buy more now?

so fast? im waiting at 340 :)

i wait at 1.33 :)

AWC, chart is good.. can buy... looking for its bottom