what are you guys' opinions?

seems like the business is still very gloomy ahead.. else the management would not have said so...

guys.. i saw this commentary on prospects in the latest Q4 2015 report:

The Board expects business to be slow and challenging in the next financial year. The Group will stay focused on the
logistics business while continuing to explore new business opportunities that will enhance the growth of the Group.
Barring unforeseen circumstances, the Board is optimistic that the financial performance for the next financial year
will remain positive.

Hi R40s, yes, I am also as curious as weng... where did you get that % info from?

value88, you have got a good point there.. it is better to monitor for the next few quarterly results before we decide if this is a good investment.. after all, at current PE ratio (compared to Magni which is an even bigger player with higher earning yield), it is not cheap.. by looking at its P/BV, it is close to 2x (much higher than the 1.5x ratio)... so I think it is a bit overpriced... just my 2 cents.

JN88, dun simply say.. any proof Evergreen boss is celaka? Honestly speaking, the COO Mr Kuo called me before explaining to me via phone on my questions previously.. i can feel that the management is honest and not giving flowery promises... I bought it at around 60-70sen (before the bonus issue) and it has more than doubled now.. but i still hold onto it as I see the growth from the conversation with Mr Kuo.

Rocky is just talking Kok without any facts.. sometimes I also feel lazy to reply to him...

smartly, u r smart... give u a *LIKE*.... with strong oderbook yet to be recognized (from recent mega contracts win), HSL has a guaranteed revenue for the next 5-10 years... and it is a free cash flow company, strong earning track record... and high ROE.. where to find in construction sector? just look at its past 10 years results u will know how consistent and how good the management is... they are timely in delivering construction projects (as stated in the annual report) and they have expertise in marine engineering where most of the construction companies do not own... this is called niche market and they have limited competitors at such scale and complexity/competency...

and i suspect you copied and pasted my sentence.. i used to say Evergreen is the number 1 MDF player in ASEAN...

abcb... u must be kidding me... Evergreen is the biggest MDF exporter la in ASEAN region... pls do ur homework before saying so... so funny... haha...

haha.. good one from buckbunny

let me put some more money in your pocket...

Evergreen net asset is RM1.37 per share.. if you understand what value investment is about on the intrinsic value of the share... it is trading at 0.78x P/BV.... (way lower than 1.5)...

total debt/equity is 0.1656... (very low gearing)....

and i am open if you can openly discuss why Evergreen is not better than Hevea.. instead of just saying Hevea better, please give some facts like what I did... diehard fans talking loud without facts will die hard...

oh ya.. gogogogo and kser.. u like ppl to PLP you right.. okok... Hevea is the best stock in the world.. you guys are the smartest investors in the world.. happy? haha.... you guys just wanted praise and agreement... u guys dun welcome discussion... poor fellows..

yes, i am promoting evergreen.. i admit that.. just like you guys (diehard fans) are promoting Hevea... what is wrong about that... EliteTrader, I am already in Evergreen so thanks for your concern... it is funny for these fellows (gogogogo & kser) to being not open to other's comments.. if you are living in our own fantasy land or utopia, please continue that way... it is sad that when ppl provided comments, they immediately jump into conclusion that these ppl are bad guys... you are just too pathetic and cynical... i feel sad for you... good luck...

next is Tanjung Rambutan for the critically insane Rocky...

yes, for dividend play.. dun forget about the fallen angel - Zhulian.. strong USD helps boost MYR revenue and profit. And they are giving very good dividend... and recently they expand into Laos and Cambodia (after Thailand and Vietnam)... a trend of recovery in sales...

for export play, don't forget about Evergreen Fibreboard... nice counter, better than Hevea in my opinion...

Zhulian is trading at its lowest price since it hit >RM5 a few years ago... and with its recent breakthru to Cambodia and Laos, the sales is expected to grow again.. and with strong USD now (due to Brexit), they have forex gain... and dun forget during low times, Zhulian is still constantly giving RM6 sen dividend. They used to give 12 sen when the business was real good. I dun expect them to get back to their peak but if any improvement to their earning, they may give higher dividend at 8sen or 10sen? the dividend yield is really good...

Hi R40s, appreciate your detailed explanation. Most of them sounds logical to me. There are still 2 items that are haunting me and stop me from buying the shares:
1) I agree that the ex-share price has taken into the account of all warrant conversion. But my concern is: the EPS dilution is still a concern as more shares will be converted from warrant. The current estimate of full year 13-14sen EPS has not included the possibility of any warrant conversion. if all warrants are converted in future, the EPS will be heavily diluted.

2) On expansion, yes, all investors like the companies to expand... however, please do not forget if you are spending RM56.8million to expand but you only expect to gain additional a few million of net profit (or less), that kind of investment is not worth. Magni, on the contracy, uses much lower capital expenditure to grow their business and earning. Can you forecast how much additional earning will PRLEXUS gain after the vietnam and China expansion? We need to know how many years will be required to breakeven on the capital invested to see if that is a good investment.

I would prefer Evergreen to Hevea... Evergreen is the number 1 MDF player in ASEAN region and they are good in controlling the production cost at its high volume. Besides that, they are venturing into higher profit margin business like furniture now... and they actively look ways to cut down man labor (using more machines or upgraded machines)... this has seen improvement in their operating costs (if you follow their reports)... just my 2 cents sharing...

this is definitely an undervalued share...

rocky, you should go to those opera school instead of lingering around here... we don't need your drama here and no one is telling a fortune. The fact is, the company's good performance will tell by itself in future... the share price has not moved now but that does not mean it is not worth more than its current price.. please do some proper homework and fundamental/value studies before talking cock here... from all of your comments, I can deduce that you know nothing about value investment... sad for you... i havent see any good piece of info/fact shared by you instead of those negative/pointless arguments...

Paperplane, bingo... just like what I mentioned above...

Icon, I don't see how Tony can send us to Holland other than flying us to Holland with his Airbus (but with air fare charged of course!!)

another remark of mine is on the "intrinsic value" of this share after the right issue..
current Net asset is RM1.19/share. after right issue, it will be RM1.19x108.35/165.15=RM0.78.
Price/Net asset = RM1.40/RM0.78=1.79 (>1.5 ratio)... which means we are using extra money to buy lower value shares... (if you follow "value investing" method)...

another remark of mine is on the "intrinsic value" of this share after the right issue..
current Net asset is RM1.19/share. after right issue, it will be RM1.19x108.35/165.15=RM0.78.
Price/Net asset = RM1.40/RM0.78=1.79 (>1.5 ratio)... which means we are using extra money to buy lower value shares... (if you follow "value investing" method)...

typo: we should "also" weigh on the potential risk

R40s, perhaps you can share more on their expansion plan (in more detail) and we can further discuss if their expansion plan has any bright prospect... thanks...

Hi R40s, thanks for your feedback. I agree to some extent of your comments. I do know that there is a conversion/exercise price of RM1.20 for the "free warrant"... what I wanted to say is the effect of dilution of warrants (once exercised) will be greater than the effect of getting the additional cash from the conversion charges. It is not anti-dilutive as compared to other warrant situation (when the exercise price is higher than the current share price). I do agree than it is likely Q4 will be better than Q3 (if you read my comment clearly) that I expect them to improve the net profit to be RM4.5million... and my calculation has included the assumption of "better Q4"... my question is, what "if" Q4 turns out to be worse.. we should only weigh on the potential risk... and I know you may say this is short term...ok, let me rephrase, with more competition in garment business, especially in China and Vietnam, what are the strengths of PRLEXUS that can guarantee they will outperform in future. Garments are not rocket science and can be easily manufactured by anyone...

Hi R40s, thanks for your feedback. I agree to some extent of your comments. I do know that there is a conversion/exercise price of RM1.20 for the "free warrant"... what I wanted to say is the effect of dilution of warrants (once exercised) will be greater than the effect of getting the additional cash from the conversion charges. It is not anti-dilutive as compared to other warrant situation (when the exercise price is higher than the current share price). I do agree than it is likely Q4 will be better than Q3 (if you read my comment clearly) that I expect them to improve the net profit to be RM4.5million... and my calculation has included the assumption of "better Q4"... my question is, what "if" Q4 turns out to be worse.. we should only weigh on the potential risk... and I know you may say this is short term...ok, let me rephrase, with more competition in garment business, especially in China and Vietnam, what are the strengths of PRLEXUS that can guarantee they will outperform in future. Garments are not rocket science and can be easily manufactured by anyone...

Izam.. yes, 0.48 and 1.0 are both possible... but please ask yourself honestly, what is the likelihood of hitting RM1.00 for a small cap like this (without proven earning record track and without a single sen of dividend)... we have to ask ourselves, can recent quarterly results be repeatable? (most of the earning growth was driven by their property development projects, whereas the property market is extremely slow now)... can they sell good in future on their properties?

there is a reason for recent hike on the share price... GESHEN finally decided to fully own Polyplas, a very profitable and growing plastic injection molding company in Penang... I would expect coming quarterly results to be better due to the additional 25% of net profit contributed by Polyplas...

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5110969

Further to the announcement made on 5 December 2014, the Board of Directors of the Company wishes to announce that the Company had on 31 May 2016, acquired the remaining five hundred thousand (500,000) ordinary shares of RM1.00 each in Polyplas Sdn. Bhd. ("Polyplas") [Company No. 172364-A] representing 25% equity interest in Polyplas for a purchase consideration of RM18,329,494.18. Consequent thereto, Polyplas became a wholly-owned subsidiary of the Company.

after the right issues, the total shares will be increased from 108.349million to 170.881million shares... if u take a close look at last quarter earning RM3.450million... adjusted EPS is only about 2sen... and let's say Q3 is the weakest quarter per record of past 3 years... and assume Q4 improve slightly...they made RM4.5million net profit... full year EPS = (18.195+4.5million)/170.881milion = about 13sen full year EPS... but dun forget they did underperform in Q4 too (in 2012, Q3 result > Q4)... if Q4 is weaker than Q3 2016, u will get less than adjusted 13sen EPS... so it is not trading at low PE.. (many may be misled as they forgot the latest quarter still showed the total shares before the right issues)... and do not forget about the "so-called" free warrant yet....

having said so 13sen EPS is the "optimistic" number.. and at current price of RM1.40.. PE is about 11 (optimistic)... if anything goes wrong to Q4... price will drop further... just my 2 cents sharing...

This is a good article. Thumbs up!

Icon, i believe Tony did this for the good of AirAsia, and or course to the shareholders too.
Potential reason why Tony wanted KLIA2 to be renamed to LCCT2:
- MAHB is charging AA (the biggest user at KLIA2) at "KLIA2" rate but the service provided is at "LCCT2" or "sub-LCCT2" level.
- by changing the name to "LCCTs", Tony has the bargaining power to pressurize MAHB to reduce the airport service charges.
- Who will benefit from lower airport service charges? Definitely the shareholders and also AA customers.

Please really think this into a deeper picture and you will understand why Tony wanted the rename to happen.

If the rename is done, more cost savings can be achieved by AA, the share price may reach RM3.50 faster.. haha...

going to touch RM0.48 soon (which is what I originally thought it should be valued at , 6sen EPS x PE8 = RM0.48)... any price over RM0.50 is conisidered expensive for small cap like this (without good earning records in the past, and not giving a single sen of dividend).. what PE can you expect? PE=8 is reasonable.

yeah, i agree with batman 11... Brexit selldown is more like a market sentiment/over panick by the investors (or more likely the speculators)... unless more and more EU countries decided to leave EU and EU has eventually dissolved, otherwise Brexit itself would not have too much impact on global business... UK GDP may drop slightly as it wont enjoy the tax-free items from other EU countries, thus delimit the sales (and maybe those EU countries who have a lot of business with UK may also be affected a bit) but other than that, the impact is minimal.

YTLPower has a lot of revenue that is denominated in Pound (for their water supply and waste water treatment business in UK)... Brexit will cause Euro and Pound to fall, and revenue that is converted back to MYR will drop... of course profit drops too.. that is why Brexit is hitting hard on the already-poor YTLPOwer results...

haha... rocky has been talking without any points but contrarily I have been providing facts... forumers will judge by themselves...

feiloh, it is actually a good news to Uchitec as these sales (even though in Europe) are denominated in USD. USD will further strengthen due to weaker Pound and Euro... today itself USD has strengthened from 4.03 to 4.11 now... please see Uchi Q1 2016 report comments below:

Revenue in RM and Operating Profit for the quarter ended March 31, 2016 increased by 20% and 16% to RM30.6
million and RM13.5 million respectively as compared to the quarter ended March 31, 2015 (Revenue: RM25.6
million; Operating Profit: RM11.6 million) mainly due to appreciation of USD against Ringgit Malaysia during the
reporting quarter.

That means uchitec relies quite heavily on USD revenue...

after Brexit is confirmed, strong USD will benefit Zhulian in its export sales to Myanmar and Cambodia... good news indeed for this long-asleep counter...

yeah... after Brexit is confirmed, export counters will benefit significantly again on strong USD!! Just today itself, USD rose from 4.03 to 4.11!!!

Izam, you have got a point here.. if Brexit does materialize, USD is gonna strengthen and this helps a lot of export counters... unfortunately strong USD does not help SYF much.. see this link below: as stated by SYF management:

However, Chee pointed out that the group exports its furniture to 87 countries, unlike other listed furniture companies, where most of their sales come from US customers.

As such, SYF Resources is not enjoying as much US dollar-translation gains as its counterparts because some of the company’s export markets are facing slowdowns and currency depreciations, he said.

“Since the US dollar is so strong, we have to give some discount to a few of our export markets. But this discount doesn’t hurt us, just that we’re not enjoying the foreign-exchange translation upside as much,” Chee said.
http://www.stockhut.com.my/news/88306

no one will be able to earn someone else's money if he does not deserve it... you are losing your money to others just because you deserve it.

sokowanda, i am seeing only one person who is bullshitting here which is you.. we are all discussing points here but you are apparently not... we are talking about facts and possibilities. You are dreaming on virtual reality and mere hopes without any sound data.

Property. With phase 1 of La Promenade sold out, HSL is looking to unveil Phase 2 by end-2016. La Promenade is the Group’s gated and guarded development, located c.7km from the Kuching city center. Developable land size is c.200 acres with GDV in excess of RM1bn. We understand the GDV for phase 2 is c.RM100m and would be sold on ‘build-then-sell’ basis. Hence, this could boost Q1FY17 earnings if the sales are better than expected as most of the earnings can be recognized upon signing of sales and purchase agreement

HOCK SENG LEE BERHAD - Healthy Orderbook
Author: PublicInvest | Publish date: Tue, 14 Jun 2016, 09:05 AM

We met with management recently to get updates on current progress of its key jobs especially the Pan Borneo Highway and Kuching Centralised Wastewater System, its tender book and property launches. After securing two major projects worth c.RM1.8b recently, its outstanding orderbook has now ballooned to c.RM2.4bn. Going forward, HSL will be more selective on tendering for new jobs with key focus being on infrastructure and reclamation works that command higher margins. Also, we understand that it might bid for more sub-station jobs with its current partner, Larsen & Toubro Limited from India. Construction earnings are expected to be intact with the recent job replenishments. As such, we maintain our Outperform call and TP of RM2.25, pegged at 12x FY17F EPS. Balance sheet is strong with net cash of RM132m or c.24 sen per share.

Outstanding order book of RM2.4bn. The successive job wins in 1QFY16 saw the Group’s outstanding orderbook quadruple to RM2.4bn from RM600m a quarter ago, incidentally also the Group’s highest order book ever. To recap, the biggest job win is the Pan Borneo Highway package which has a contract sum of RM1.7bn with contract period until late-2020. HSL has 70% stake with the remainder owned by a private company, Dhaya Maju Infrastructure (Asia) Sdn Bhd. The package involves sections on low-lying land, hence will leverage on the Group’s expertise in marine engineering. Margins are believed to be higher as compared to other packages on account of this. The other main job win is the Kuching Centralised Wastewater System that has a value of RM750m via its consortium of Kumpulan Nishimatsu Hock Seng Lee in which it holds a 75% stake. This job is expected to be completed by 2022. As for billings, we understand that only 10% of the Pan Borneo Highway contract will be recognized in FY16 while the Kuching Centralised Wastewater System is expected to be c.5% completed. With the currently healthy outstanding order book, we believe earnings visibility for its construction business will be good in the next 3-4 years. As for tender book, we understand that HSL is eyeing few sub-station jobs with its current partner Larsen & Toubro and, could also bid for other Pan Borneo subcontract packages.

as SYF management has highlighted, they are only focusing on a very small scaled property development at the moment (at Sg Long & Cheras area only)... and they do not have a long term plan/roadmap down 5-10 years about their property development projects... question is: what if after the recent property sales, they are not going to defer the property development due to softer demand? will this year EPS be repeatable? we have to ask ourselves.. i have seen IJM and even Setia defer some of their projects due to softer demand now.. and the subsequent question is, even if they continue to build houses, will they sell good again? I personally do not think property market is good now... in fact, it is not getting stagnant but worse...

ktsk88, sometimes we must not be deceived by the low PE... especially when that particular year's EPS has peaked and there is no clear sign that upcoming years' EPS can be sustained or improved... we have seen that in many cases, so if next year's EPS dropped, the PE will no longer be attractive... just my 2 cents thought.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=all&sub_category=all&alphabetical=All&company=6238

EPF is constantly buying HSL shares since May while it is undervalued...