Hubline Berhad share price @ RM 0.16 as at today 12 Oct 2017 is higher than Sealink Berhad share price @ RM 0.145.
In this context, we must commend the directors of Sealink Berhad for doing such a "great" job and indeed their services must be retained & they must be rewarded with higher directors fees & remuneration for taking such good care of the shareholders.
We must also envy the pioneer shareholders of Sealink Berhad of whom had subscribed Sealink Berhad IPO shares @ RM 1.25 (if they are still faithfully holding on to the shares) for having such faith in the company and its "competent" directors despite the share price tanking 88.4% or RM 1.105 since 2008.
Congratulations, today 12-12-2017 Sealink Berhad's MSP reaches a new milestone, a new low of RM 0.125 or 10% of its IPO price. Congratulations to Sealink Berhad's Managing Director for carrying out such an excellent job.
The directors are not sleeping. They still know how to collect their directors fees and other perks. The directors are very competent you know. How dare you criticize them. They managed to somehow get the share price from RM1.25 to RM0.125. All shareholders must appreciate their selfless contributions. I think their directors fees and other perks must be increased substantially.
This is a company that has been recording losses for the past 13 consecutive quarters. 9m18 result was a loss of RM24mil. 4Q18 will most likely be another loss quarter. Investors that think the company can suddenly turnaround and post profit might be having some wishful thinking there. Given that the operating environment has actually become a lot tougher in 2019 and given that the company still is being managed by the same people, I highly doubt they can suddenly post better results in FY19. Investors need to be prepared for another full year loss in FY19.
A more pressing issue is the liquidity of the company. The company has a current liability of RM140mil (of which RM104mil is in short term debt) as of Sept 18. However, it only has RM97.5mil of current asset (of which only RM16.7mil are in the form of cash reserves) which signals an issue of lack of capital for the company to service its immediate debt obligation. It will need to raised cash soon. The sales of the Miri land to CMS Cement Industries for RM26.5 mil would help but will not be enough to pay off the current debt obligation. More land sales need to be done or at worst the company will need to raised the capital via equity (potentially a right issue exercise).
If you are looking to diversify your portfolio outside of Sealink (due to the weak earnings outlook and capital liquidity issues) I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 7.0x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 6.0x PE.
Please go through the analyst reports and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ivan9511
3,854 posts
Posted by ivan9511 > 2016-11-19 16:00 | Report Abuse
mostly is go holland la, you se the revenue , only 13857.
but not sure