Did anyone noticed that the organic noodle mostly export to other countries ?

Hi Icon8888, can you enlighten us the revenue recognition of Vietlott ? Since BJCorp own 40% of equity interest. The 3 months revenue from July-Oct16,Nov-Jan17 shown in BJCorp QR only RM20mil++ each quarter.

it won't limit down today.

CanCan168, after went through the latest quarterly result. I believe you can find better counters in Bursa. Besides, this year the dividend might drop to 6sen max.

HJey, my dividend yield is 11% as I bought YL since 2009.

Not easy to have corporate exercise, as this will affect the exercise price for the warrant. Besides, still got ICULS need to take into consideration. Any corporate exercise will affect both.

We believe the domestic automotive sector will remain challenging as consumer appetite is still weak with the strict financing approval guidelines in the current economic environment.

The Group will continue to remain disciplined and maintain our focus on key priorities to ensure
sustainable financial position. Sales and marketing activities will be enhanced to maintain our
competitiveness in Malaysia. Overseas sales and distribution are expected to continue expanding in tandem with the robust economic growth in Vietnam, Laos, Cambodia and Myanmar. However, as for Myanmar, its operations commenced production and sales activities in Q1 2017.

TChong has taken a smart move which is hedge the currency. Gain on derivative has helped them in this quarter result.

Tguan will announce quarterly result in May. From 1 Jan 2017 to 31 Mar 2017, additional listing around 1.8mil or 1.5% diluted to EPS.

Recently, Spritzer's share price moved up from 2.30+ to 2.50. It could be due to the oversea sales have been achieved satisfactory result. Spritzer's result will contribute positively to Yeelee as YL holds more than 30% of Spritzer. Though, YL's dividend yield still below FD rates, but once free cash flow (Operation cash flow - CAPEX) increases to certain level, they will propose better dividend to loyalty shareholders. I believe this FY will see better result for YL as well as Spritzer.

Based on annual report, KYY disposed more than 1.5 mil shares, Dr Neoh disposed all his shares and warrant under Dynaquest Sdn Bhd. Director Ang See Ming disposed 600k shares.

big shuffles to the 30 largest shareholders list.

excelyou, thanks for your clarification. However, my thought on the CA 2016 is different from yours. CA 2016 need to consolidate share capital and share premium/capital reserve, if the company is having losses, the share premium/capital reserve can act as capital reduction for them. But if the company is profitable, they have higher chance to give bonus issue since the grace period is 2 years to utilize it. After consolidated the share capital and share premium, the so-called par value can be more than RM1. (share cap + share premium/capital reserve) / no. of shares.

Yeelee's free cash flow closed to RM50mil.

excelyou, please try to understand further on CA 2016.

Toyo (Viet) – Dofico Print Packaging Co. Ltd (“TVDP”)
The principal activity of TVDP is the provision of printing
services for tobacco packaging and packaging services in
general. The company, commenced on 1 January 2016 as a
50:50 joint venture with Dong Nai Food Industrial Corporation
(“DOFICO”), a major conglomerate in Vietnam with a variety
of businesses including the packaging of tobacco products.
TVDP turnover in 2016 was RM16.3 million with a loss after tax
of RM1.1 million, which was disappointing as a result of the
delay in the transfer of purchase requirements by DOFICO to
TVDP due to changes in design and specification requirements.

For manufacturing company, investors cannot just look at demand and supply. Bear in mind that the fixed costs of the company and the efficiency level before it can convert into profits.

Re-emphasize again, I use BAT's result to calculate the revenue for TW.

This coming quarter result would not be good compared to last year or last quarter. As the raw material cost increasingly burden to Tguan's operation. Commodities is bullish in that sense.

Finally the warrant is trading at premium now.

Plastic and packaging also got upstream and downstream. Commodities price movement is temporary impacting Tguan (downstream) players, perhaps can look at those upstream player if you think commodity price is fluctuating..

99% of the investors thought that Tguan is cheap now.

It looks like everyone is expecting Tguan will propose any surprises to shareholders. But it turns out differently each time.

Commodities is too challenging. Price fluctuate that impacted Tguan.

The discount is getting smaller.

The flow of fresh offers in the spot resin markets remained inconsistent and prices were mixed, reports the (Chicago) in its Market Update for the week of March 13. Transacted volumes were better than average, though heavily skewed toward polyethylene (PE) over polypropylene (PP). After securing a $0.05/lb increase in February, PE producers are seeking to raise March contracts by as much as $0.06/lb. PP contracts have already jumped $0.165/lb during this young year, and producers are seeking to pass along their soaring monomer costs, which have continued to rise this month. Incremental exports are challenged by high prices and lack of availability; notes that it is seeing a huge gap develop between high domestic PE and PP levels and workable export prices.


Spot PE trading was solid. While the overall market was mostly priced lower, there was some variance among grades and even some strength seen. Processors with ample material on hand shied away from spot (railcar) offers that included $0.04 to 0.06/lb of the March price increase, as direct contracts are generally protected if the increase does not stick. Though still being negotiated, it would not be surprising to see at least a $0.03/lb increase take hold. Some view this as the potential peak pricing for this cycle. There was a run on HDPE for injection, which has been hit with production issues. It bucked the rest and gained at least a cent, with little reasonably priced material still to be found.

On the other hand, LDPE and LLDPE resins, which had been trading at a healthy premium to other grades, gave back $0.01 to 0.02/lb. While the typical base for offshore PE sales is still largely intact, the arbitrage for extra export orders has been closed based on price. However, the PE market is far from awash with resin, as producers have faced planned and unexpected outages, which have limited overall resin supplies, thus reducing the need to offset slacking domestic demand with a major export purge. This lull has allowed the railcar log-jams and packaging back-ups in the Houston area to substantially clear.

PP demand remained slack, which has capped spot levels even as contract prices continue to leap higher. Spot HoPP and CoPP prices actually eased another penny this week, reports the . Those processors locked into contracts or specific brands are feeling the brunt of the monomer rally, as another cost-push increase, which is starting to target near a nickel, will imminently be implemented in March. This will bring the 2017 PP contract gains to $0.20/lb plus. It is a very rare occurrence to see spot prices develop an ever-growing discount to rising contracts, writes the , adding that it is not referring to a few loads here and there. Many millions of pounds of prime and off-grade PP are packed and ready to go in various warehouses around the country.

While occasional softening of the PGP monomer market lends unsubstantiated relief hope to processors, deeper insight could actually reveal spot monomer sales that result from reduced reactor rates. While this temporarily weighs on monomer prices, it also tightens resin supplies. Indeed, the forward PGP market indicates lower feedstock costs ahead. However, supply/demand dynamics are tight and, given reduced production, will probably remain snug in the months ahead. As was seen throughout 2015, if and when monomer prices do subside, PP producers then will rebuild their margins as they lower resin prices less than the drop in their costs.

Not sure whether should say Tguan mother share is overvalued or Tguan's warrant undervalued ? The discount of warrant is not justifiable. Is either investors do not have confident in Tguan's mother share or investors think that the mother shares' downside is high ?

Hi Icon8888,

We are not sure why the warrant can be traded at discount since last quarter result released during end of the month. Why other warrants can trade at 200% premium? Maybe your expert explanation can enlighten us.

KYY does not hold Yeelee, since this industry is totally new to him.

Low premium to the mother share could be due to various reasons below:-
1) Dividend payout increased
2) Mother share not active
3) Warrant up from RM1.50 - RM3.30 within a year.
4) Profit is diluted due to LA and WA.
5) Change of management structure or Major shareholder choose to dispose WA and not convert it into mother share though no premium.

chl1989, any reason the premium so low ?

Look back to 3 months ago, during November 2016, the share price spiked from 4.0+ to 4.4+ prior to the announcement of QR. Subsequently, Tguan's announced decent result and the share price drop from 4.5+ to 4.2+. If follow the trend, the result is improved compare to last year, yet the share price drop from 4.8+ to 4.3+. I believe this phenomena is the management/insiders bought before the quarterly result/board paper and sell when announcement of QR. If management do not propose any corporate exercise, very unlikely it will break RM5.

Thanks YiStock.

As I mentioned before, this counter every quarter achieved 12-16sen EPS, but the share price do not reflect positively. But each time prior to results released, sure run at least 10% upward.

Q1 2017 is a tough start for Tguan. Read back the Q1 2016's result, the no. of shares increased 14% from 105m - 120m. If the PAT at the range of RM15m- 18mil for Q1, then EPS is only 12.5sen - 15.0sen.

I thought their indirect deemed interest >39% ?


soojinhou I called Thong Guan's office today. There is no change in shareholding and the Ang brothers did not dispose their 40% stake in Thong Guan. The cessation of substantial shareholder came about because of the new Companies Act stating that disclosure is unnecessary for indirect deemed interest below 20% (was 15%). So relax, there's no change in shareholding.
28/02/2017 21:03

If is transfer to 4th Generation, do they need to announce the new significant parties ?

Tguan's directors (Ang's family) are no longer the significant shareholders. In time, the management team will eventually change.

Hopefully won't drop 30 sen.

Annual report should be announced by today.

YiStock, I believe you are better. Haha, just sometimes different people have different views. However, all focus the same outcome which is to make money out of our investment.

Next 6 years need to amortise the intangible assets amounting to RM91mil.

Tguan's always give impressive quarterly results. Such a growing company in term of revenue and profit. But, not the share price. Based on P/E 8, the share price at least can reach RM4.80. Something to think about, is it really sustainable the operation profit in coming year ?

This quarter result will be slightly better compared to last year.
Reasons:-
1) Food business is sold, which mean "stop bleeding" from the current coffer. Estimated savings RM5~10mils per quarter.
2) Finance costs estimated savings due to repayment to bank is RM2mil per quarter.

CWallUK, from the past history, GL was generous in giving out dividend every 6mths. If the plantation in Indonesia starts to generate good profit. I believe the management will follow back the previous practice to reward the shareholders.

This year AGM held at 21 March. Anyone going to join the feast?

I always use BAT's result to calculate the revenue for TW.

The management is targeting to launch an industrial property development at northern Peninsular Malaysia with an estimated gross development value of RM130 million in 2017.
The property is strategically located at proximity to the new gateway to Penang, the second link. Despite the generally soft property market at the moment, the management is poised to launch the project.
For plantation division, the Group has planted 2,788 and 50 hectare in Indonesia and Malaysia respectively. The Group will continue to expand its oil palm planted area at Kalimantan Timur and Selatan, Indonesia with a planting target of 10,000 hectares within the next 3 years.
With the CPO prices trending upward due to recently erratic weather pattern, increasing demand from biodiesel initiatives and growing world population the management deemed that the long term prospect for plantation business are promising

They had sold their local plantation segment to FGV. Current operation left - Property segment at Sandakan, Indonesia plantation which newly planted since 2013. Once Indonesia plantation segment can be capitalized for biological assets. Then should be able to catch up.

Steveooikp,

Based on the quarterly result, they have sold their plantation land to FGV for RM655mil, balance purchase consideration to be collected is RM95.7 mil.
Current cash in hand as at Sep 16 is RM104.4 mil, if collected the amount from FGV is RM95.7 mil + RM104.4mil = RM 200.1 mil or 89sen cash per share
Total Liabilities RM30mil
Assets in hand including land in Batu Kawan 20acres+, land in Indonesia x hectares.

Property development project with KK Mayor.

They need to release their quarterly earning by end of February. Hopefully the management declare another 2 sen dividend.