2017ks ace fund is raised from unknown investor , whom fund also unknowable source . Ace is basically helping these people to wash. That why ace can be so arrogant buy anything they want of coz rubbish counter, please check in these world what type of fund Will buy into all these rubbish counters . Don't tell me ah long can manage so many type of biz? Wakes up at 11am? Their main objective is to hide from authority
This company has made 7 full year losses out of the 10 years since FY08. The last time it managed to deliver a profit was back in FY16 and the amount was only RM1.3mil. It then continues to record losses of RM1.1mil and RM2.1mil in FY17 and FY18 respectively.
The company is facing some liquidity issues with short term debt of around RM32.1mil and having only a cash reserve of RM9.2mil which was mainly raised from the disposal of assets in FY18. In January, the company announce a private placement exercise to raise RM3.3mil cash but this is still insufficient given the company high near-term debt obligation. Expect further sales of assets or another round of equity fund raising in FY19. Almost all of the debts are in Thai Baht with average interest rate of 6.5%. This is not a good given the strengthening of the Thai Baht vs Malaysia Ringgit (debt value would increase if the Baht appreciate further).
If you are looking to diversify your portfolio outside of AE Multi Holdings (due to its weak earnings outlook and 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 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
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....
Acefund
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Posted by Acefund > 2018-06-24 15:40 | Report Abuse
2017ks ace fund is raised from unknown investor , whom fund also unknowable source . Ace is basically helping these people to wash. That why ace can be so arrogant buy anything they want of coz rubbish counter, please check in these world what type of fund Will buy into all these rubbish counters . Don't tell me ah long can manage so many type of biz? Wakes up at 11am? Their main objective is to hide from authority