Posted by Tips88 > 2015-07-31 11:55 | Report Abuse

is time for another buy call.....good show coming soon.......will fly

Posted by yfchong > 2015-08-02 18:15 | Report Abuse

Itu financial daily belum comment..., kalau Sudah comment ......ok lah

Posted by RosmahMansur > 2015-08-02 18:31 | Report Abuse

The cheapest garment manufacturer in Bursa...

Posted by HuatRex > 2015-08-02 20:34 | Report Abuse

How high can it goes?

Posted by yapie > 2015-08-02 21:02 | Report Abuse

Expect rm2 from current price....

Posted by RosmahMansur > 2015-08-02 21:20 | Report Abuse

IV = RM 6.79

Posted by HuatRex > 2015-08-03 13:40 | Report Abuse

By end of this month?

Posted by RosmahMansur > 2015-08-03 13:42 | Report Abuse

Hopefully...

Posted by Probability > 2015-08-03 17:25 | Report Abuse

USD to RM at record level..

Posted by chinesetea > 2015-08-04 06:37 | Report Abuse

blue sky counter

Posted by HuatRex > 2015-08-04 11:59 | Report Abuse

Wa sell down, what happen?

Posted by RosmahMansur > 2015-08-04 12:00 | Report Abuse

Down then good to buy

Posted by chshzhd > 2015-08-04 16:40 | Report Abuse

buy!

Posted by speakup > 2015-08-04 17:05 | Report Abuse

VT selling.......why?

Posted by chshzhd > 2015-08-04 17:51 | Report Abuse

donno..but as long as magni is still consider cheap, i accumulate...

Posted by RosmahMansur > 2015-08-04 22:48 | Report Abuse

MAGNI IV RM 5.48 as per May quarterly report.

Posted by Xu Yu Fu > 2015-08-05 13:51 | Report Abuse

PE only 8.98

Posted by Probability > 2015-08-05 22:57 | Report Abuse

http://www.themalaysianinsider.com/malaysia/article/pro-mahathir-businessmen-donated-to-opposition-parties-says-report

Posted by Probability > 2015-08-06 15:07 | Report Abuse

http://klse.i3investor.com/blogs/kenangaresearch/80893.jsp

Posted by Probability > 2015-08-06 15:10 | Report Abuse

An alternative to PRLEXUS. While we were unable to access MAGNI’s management for more information, we noted many similarities to another garment manufacturer PRLEXUS which we recently issued a TRADING BUY recommendation (TP: RM3.15 @ 10x FY16E PER). We like MAGNI as a proxy to NIKE’s growth trajectory and a consumer play which is relatively unscathed by the weak local landscape.

· Unaffected by weak local sentiment. The garment segment makes up 83.2% of FY15 revenue which we gather is mostly derived from NIKE, whom they have been dealing with since 1985. It appears that the athletic apparel market has been on a growing trend as seen with NIKE’s estimated FY16-17 revenue growths of 19%-9% vs. the 3-year historical average growth rate of 9%. As a result, MAGNI has been enjoying steady positive earnings growth over the last 10 years with a 3-year historical average growth of 20% (up to FY15). Since the demand is internationally driven, they will be spared from the weak local landscape. The remaining business is mainly in the relatively stable packaging segment. MAGNI’s set-up is similar to PRLEXUS where NIKE is also the top contributor, but PRLEXUS has a much higher 3-year historical average earnings growth rate of 49% due to its lower base effect, whilst we understand that PRLEXUS has been expanding its capacity.

· Margin improvements aided by lower raw material cost and the USD factor. Cotton prices have stabilized at its 3-year low levels (currently at USD65.4/lb) since the peak in 2011 of >USD200/lb. This has helped the group to mitigate recent challenges (e.g. minimum wage policy, competition, FOREX), resulting in the group achieving uninterrupted margin expansion until today. In PRLEXUS case, they are net positive beneficiary of the strengthening USD-MYR where a 5% increase in the USD-MYR will increase its bottomline by 8%-10%. In MAGNI’s case, based on their sensitivity analysis on FOREX risk as provided in their annual report, it appears that a 5% appreciation in the USD-MYR would result in a c.3% increase in bottomline. Net margins have improved by 3.5ppt to 7.5% since 2011 and are also comparable or slightly better than PRLEXUS’ 6.3% in FY14. Note that MAGNI’s FY16E ROE of 19% is also comparable to PRLEXUS’ 17%.

· Net cash balance sheet and decent yields. MAGNI is in a strong net cash position with no borrowings and it paid out c. 35% as dividends with the last 2-year historical yields at 3.0%-3.2%. PRLEXUS is also in a net cash position but has some borrowings and only paid out less than 15% over the last two years (historical yields: 1.5%-2.3%). In this respect, MAGNI has a better reward scheme for their shareholders while those that are looking at PRLEXUS must be mindful of their expansion and potential supply chain expansion plans.

· Projecting FY16E core earnings growth of 4.7% based on 5.1% YoY topline increase or less aggressive than PRLEXUS’ 15% YoY revenue growth since PRLEXUS is riding on its capacity expansion. However, MAGNI’s FY16E net margins of 7.4% will be better than PRLEXUS’ 5.3% as the latter’s expansionary cost will only normalize in 2017. We estimate FY16E dividend yield of 4.2% based on 35% payout. · Trading BUY with FV of RM5.15 based on 10x FY16E PER. While MAGNI’s market cap is 66% higher than PRLEXUS’, note that MAGNI is less liquid. In our recent PRLEXUS OR (27/7/15), we pegged its valuation at 10x and based on the above arguments, we believe that MAGNI deserves the same as well. Our applied PER is inline with the FBMSC Fwd PER of 10x.

Source: Kenanga Research - 6 Aug 2015

Posted by Probability > 2015-08-06 15:14 | Report Abuse

actually I am still not clear how much of the profit contribution is USD based Sales?

USD to RM exchange is unbelievable...
For thin margin Sales , the impact should be explosive.

Posted by HuatRex > 2015-08-06 19:05 | Report Abuse

Game over

Posted by Probability > 2015-08-06 19:42 | Report Abuse

77.8 % of SR is from Nike woh...
say your margin is at 5% only...
If exchange rate improve by 1%..
You profit increase = 1/5 = 20%!

(Or more precisely = 0.778 x 20% = 16%)

Posted by HuatRex > 2015-08-06 19:43 | Report Abuse

Even though how good is the profit, bad sentiment will not push it up.

Posted by RosmahMansur > 2015-08-06 20:45 | Report Abuse

Why worry when u r holding good stocks? Just put it inside the safety box and pretend u didnt see it till end of 2015

Posted by HuatRex > 2015-08-06 20:48 | Report Abuse

Rosmah, how abt Minho?

Posted by RosmahMansur > 2015-08-06 21:28 | Report Abuse

Im not sure as i dont cover Minho. I only cover stocks that are severely undervalued in my stable. U can ask me anything on Pohuat Latitude Sign SCGM SAM Magni VS

Posted by pingdan > 2015-08-06 21:32 | Report Abuse

Haha drop more mean can add more. Now USD1 =RM3.91. It means the profit margin will have further improve

Posted by chshzhd > 2015-08-06 21:52 | Report Abuse

Rosmah, i collect magni again today, we are on the same boat of magni latitud & sign :)

Posted by RosmahMansur > 2015-08-06 21:54 | Report Abuse

Good good that u realized some good gems around. I will buy at 4.00 tomorrow

Posted by Probability > 2015-08-07 22:19 | Report Abuse

Mind boggling exchange rate...

Posted by RosmahMansur > 2015-08-10 15:57 | Report Abuse

Bought some at 4.00

Posted by Probability > 2015-08-10 16:33 | Report Abuse

I bought a lot at 4.02!

Posted by HuatRex > 2015-08-10 19:50 | Report Abuse

Game over.

Posted by chshzhd > 2015-08-10 21:46 | Report Abuse

bought some at 4.00

Posted by HuatRex > 2015-08-10 22:05 | Report Abuse

Earning usd, but drop like hell.

Posted by RosmahMansur > 2015-08-10 22:06 | Report Abuse

U cannot control the market sentiment, all making irrational decisions.

Posted by zzas > 2015-08-11 09:38 | Report Abuse

tp rm7 easily!.. the most under value counter in bursa..rerating expected.

Posted by gnail > 2015-08-11 15:46 | Report Abuse

WHY DORP SO MUCH AH?

Posted by yapie > 2015-08-11 15:47 | Report Abuse

where got drop so much.... follow trend drop abit only compare to others..... ha..ha...

Posted by Probability > 2015-08-11 17:22 | Report Abuse

Bought 'a lot' again at 4.02..

how long I need to support like this la!..:(

Posted by RosmahMansur > 2015-08-11 19:08 | Report Abuse

4.00 is best support price...and Vincent Tan looks like had stopped selling at current levels since end of July 31st.

Posted by zzas > 2015-08-12 15:20 | Report Abuse

cheap.buy!

Posted by leelc99 > 2015-08-12 15:40 | Report Abuse

Wow seriously, Merdeka sales everywhere. Sales start so early.... I remember 4.00 is very cheap and everyone was trying to get it and now it is 3.8 / 3.9. SALES!

Posted by chshzhd > 2015-08-12 20:57 | Report Abuse

i got some at 3.76 haha...

Posted by chshzhd > 2015-08-13 17:40 | Report Abuse

buy again at 3.99

Posted by Probability > 2015-08-13 17:57 | Report Abuse

"If a stock is cheap, I start buying. I never put a stop loss on my holdings because if I like a stock in the first place, I like it more if it goes down. Somehow I find it difficult to buy a stock that has gone up."


- Walter Schloss

Posted by Probability > 2015-08-13 18:41 | Report Abuse

when are they going to confirm the dividend?

Posted by ccs999 > 2015-08-13 18:46 | Report Abuse

I think the div 10sen is confirmed as per last QR, normally they will announed the div when next coming QR, last year is on 12/9 which is almost one mth from now.

Posted by Probability > 2015-08-13 18:53 | Report Abuse

ok thanks ccs999!