I am particularly drawn to their diversification into the healthcare sector which is a recession proof business targeting the lucrative M40 & B40 groups.
In line with their visionary plan, I am putting my money where my mouth is. Added some to my portfolio today
Note - By unlocking these 2 assets, Sinmah Group intends to utilise up to RM14.50mil of the proceeds to pare down its bank borrowings of RM31.07mil as at 31/12/18.
Going forward, this will greatly enhance their cash flow and allow them to focus on their foray into the healthcare business. This is going to be an exciting year for Sinmah!
Sunday, March 3, 2019 Breaking News : Emergency Announcement SILA AMBIL PERHATIAN. PROJEK HOSPITAL BARU SEMENYIH AKAN DIPINDAHKAN KE RANTAU DENGAN SERTA MERTA.
Monday, March 11, 2019 Private Hospitals Ripping Off The Public
The following is written by VM Chandran. It details the "predatory" and rip off behaviour of private hospitals in the country, especially large, corporate owned private hospitals in the Klang Valley. Do read my comments at the end.
Private Hospital care - Cost escalation, "Hidden charges" By VM Chandran
I have heard of "1st world facilities, 3rd class mentality". This has been an issue where people do not look after the facilities including its regular maintenance. This seems to be the "perennial disease" in Malaysia.
Now i must coin a new term, "3rd class facilities, 1st class charges,". This is based on my experience of a week's hospitalization at a reputed hospital in Kuala Lumpur. Save for the excellent Specialists who attended to me, the other aspects became a " nightmare".
A lot of preparatory works have been taking place behind the scene. Sinmah is a turnaround stock in the making!!! Board the flight early before it takes off. Target Price = 0.65;
Announcement - http://m.malaysiastock.biz/Company-Announcement.aspx?id=1127036 Description - SINMAH CAPITAL BERHAD (THE "COMPANY" OR "SCB") - INCORPORATION OF A NEW SUBSIDIARY The Board of Directors of Sinmah Capital Berhad (“the Company” or “SCB”) wishes to announce that on 12 March, 2019, Sah Medical Center Sdn. Bhd. (“SMCSB”), the 95% owned subsidiary of Sinmah Amegajaya Healthcare Sdn. Bhd. ("SAHSB"), the 70% owned subsidiary of the Company had incorporated a new subsidiary known as Sah Medical Center (Segamat) Sdn. Bhd. (“SMCSSB”) under the Companies Act, 2016. The intended principal activities are hospital development, management and construction and to carry on all healthcare related activities.
SMCSSB was incorporated with an issued share capital of RM1,000.00 comprising 1,000 ordinary shares. 100% of the issued share capital of SMCSSB is owned by SMCSB. Upon incorporation, SMCSSB shall become a wholly-owned subsidiary of SMCSB.
The above incorporation does not have any effect on the issued share capital of the Company and has no material effect on the earnings and net assets of the Company and its subsidiaries for the financial year ending 31 December 2019.
None of the directors and/or substantial shareholders of the Company, or persons connected to such director and/or substantial shareholder has any interest, direct or indirect, in the said incorporation.
The stage is formally set for Sinmah to diversify into the healthcare business...way to go :)))
ORDINARY RESOLUTION 3 PROPOSED DIVERSIFICATION OF THE EXISTING BUSINESS OF SINMAH AND ITS SUBSIDIARIES (“SINMAH GROUP”) TO INCLUDE HEALTHCARE BUSINESS (“PROPOSED DIVERSIFICATION”) “THAT, subject to the approvals of all relevant authorities (if any), approval be and is hereby granted to Sinmah Group to diversify its principal activities to include healthcare business. AND THAT the Board be and is hereby authorised to do all acts, deeds and things as are necessary to give full effects to the Proposed Diversification with full power to assent to any conditions, modifications, variations and/or amendments as may be required or imposed by the relevant authorities, and to take all steps and actions in the best interest of the Company as the Board may deem fit or expedient in order to carry out, finalise and give full effect to the Proposed Diversification.” https://klse.i3investor.com/meeting/9776/12-Mar-2019/8151_509503749.jsp
Sold all my Dayang shares to collect more of Sinmah shares this morning. Extremely bullish with a high volume of 36.9mil traded in the morning session alone. Buy before it crosses 0.30!!! Imagine if they were to built one hospital in each state, the estimated cost would be about RM7Bil. Health is certainly Wealth :-)
Just not sure why people would want to invest in this company. Full year 2018 result was a loss of -RM38.6mil. Even after deducting the one off items (impairment and gain on disposal) the core net loss to shareholder would still be at a high of -RM15.5mil which is worst than the FY17 core losses of -RM13.7mil ( again you need to exclude the impairments and gain on disposal).
FY19 prospect does not seem to be that bullish given the management comments in the 4Q18 report. With still low average selling price of live broilers, investors need to expect a 1Q19 result that would most probably still be in the red.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.5x 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 5.4x 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.
Healthcare business is a perpetual long-term growth business. Smart investors will take the prudent approach to grow their investment in Sinmah’s healthcare business.
This is not a buy call. Kindly do your own research before you invest. With health comes wealth. Goodluck :-);
Healthcare business is a perpetual long-term growth business. Smart investors will take the prudent approach to grow their investment in Sinmah’s healthcare business.
This is not a buy call. Kindly do your own research before you invest. With health comes wealth. Goodluck :-); >>>
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....
joseph1984
71 posts
Posted by joseph1984 > 2019-02-21 09:45 | Report Abuse
really dead counter