Posted by kcchongnz > 2013-10-17 10:05 | Report Abuse

BJFood, another Vincent Tan counter? Is it good?

Posted by Joshua Lee > Oct 16, 2013 04:51 PM | Report Abuse
KCChongNZ, would mind help to value BJFood? It looks interesting but PE is rather high right now. Thanks in advance!

Let’s use Cold Eye's 5 yardsticks to evaluate BJFood basing its financial statement in 2013 to see if this company is worth investing as shown below:

5 yardstick of investing by Cold Eye
BJFood 1.720 17/10/2013
Revenue 121915
1 ROE 13.3% >12% ok
Net profit 19007
Equity 143038
2 Cash flows
CFFO 11517 61% Bad
FCF 817 0.7% ok
3 PE ratio 26.1 >10 Bad
Price 1.720
EPS 0.066
4 Dividend yield
Dividend , sen 3.5
Dividend yield 2.0% <3% ok
5 Price/NTA 3.13 >2 Bad
NTA 0.55

As you can see, I don’t have any “good” remark. The best being just ok and many “bad”. Its ROE is just ok at 13.3%. The quality of BJFood’s earnings is not very good. Cash flow from operation is only 61% of its earnings. It has little free cash flow, less than 1% of revenue.

With this type of performance, a PE ratio of 26 is considered way too high for me. Its price-to-NTA is also very high at 3.1.

Its dividend of 3.5 sen last year, or a dividend yield of 2.0% is nothing to shout about. Anyway, BJFood actually can’t afford to pay any dividend at all because of its poor cash flow from operations.

So BJFood doesn’t pass the tests well. So for me, I will stay far away from BJFood. I won’t know its future share price performance though.

Posted by bsngpg > 2013-10-17 13:44 | Report Abuse

Plus, VT carries poor record among most the retail investors. Wolf may one day does charity work too, but there are so many charity bodies in the town, why should you take risk to go for the one operated by an old smart wolf. You may get some goodies back home if you are lucky, but if the wolf just disguises under charity, you will be eaten one more time. Not everybody is the lucky Little Red Hood.

Posted by midtermtrader > 2013-10-17 13:47 | Report Abuse

Old foxes know Vincent Tan. If you offer them to buy Berjaya Group shares, sure they will reject.

Posted by Joshua Lee > 2013-10-21 20:08 | Report Abuse

KC, thanks so much for your views.

VT's involvement is one of the factors stopping me from going in.

Posted by inwest88 > 2013-10-30 23:34 | Report Abuse

Greetings, kcchong, do you think FLB is a hidden gem ?

Posted by kcchongnz > 2013-10-31 18:49 | Report Abuse

Is Focus Lumber a good company? Is it worth investing?

I have not studied those stocks before you mentioned here. But since you ask, I will try to look into one of them. I will give my opinion if this is a good company worthy of investing.

Focus Lumber Berhad is engaged in the manufacturing and sale of plywood, veneer and laminated veneer lumber (LVL), and investment holding. The Company mainly produce thin panel plywood, of which the thickness is below six millimeter (mm) and are capable of further processing by laminate factories. It also produce thick panel plywood ranging from 6 mm to 18 mm.

The business is cyclic in nature and it appears to be good this couple of years although there is sign that it is slowing down.

It's business has a high net profit margin of about 10% and provides a return of 14% (>12%) of invested capital. The quality of its earnings is good. Free cash flow is abundant at more than 10% of revenue (>>5%). It has plenty of cash, amounting to 57 sen per share with zero debt and hence a very safe company to invest in. The only shortcoming is its business is quite stagnant with not much growth.

At 81.5, its PE ratio is 7.3 (<10), EV/Ebit=3.0 (<8) and price-to-book of 0.7 (<1). So it is not expensive and hence may offer investors a good investment.

Posted by inwest88 > 2013-10-31 19:08 | Report Abuse

Thanks kcchongnz. In fact I went in again at 81 sen this morning - this time for a longer term. Made a bit in the first round.

Posted by saloma > 2013-10-31 22:23 | Report Abuse

how about INSAS? it seems its value should be higher than current price..?

Posted by kcchongnz > 2013-11-01 09:33 | Report Abuse

How about Insas?

Posted by saloma > Oct 31, 2013 10:23 PM | Report Abuse
how about INSAS? it seems its value should be higher than current price..?

A classic Graham net net play. See link below:

http://klse.i3investor.com/servlets/forum/600036493.jsp

Posted by winniechan > 2013-11-01 11:20 | Report Abuse

Kcchong, how about Muda ? With a profit of Rm26.751 million and NTA Rm2.05 per share, is it worth collecting ?
Thank you.

Posted by kcchongnz > 2013-11-02 16:30 | Report Abuse

Is Muda Holding that great?

Posted by winniechan > Nov 1, 2013 11:20 AM | Report Abuse
Kcchong, how about Muda? With a profit of Rm26.751 million and NTA Rm2.05 per share, is it worth collecting ?

Based on last year's result, at 88 sen, PE ratio is 17, certainly not low, and P/B of 0.43 which is low. Is it worth investing?

First we need to determine if Muda is a great company. The net margin of its paper business is very thin at just 2%. Its ROE and ROIC is hence low at only 3.4% and 1.4% respectively, which are poor. Its export business has been slowing down considerably recently. Hence I don't see any moat in its business.

Its cash flow from operations is good. However, it requires a lot of capital investment. Hence it has little free cash flow. FCF amounts to about only 2% of revenue and invested capital, lower than my minimum of 5%.

Balance sheet wise it doesn't look good. It has huge amount of debt, totaling 480m, or with a debt-to-equity ratio of 0.8, which is high. Though its net asset is high in relation to its market capitalization, the asset quality is poor with most of it in PPE, inventories and receivables.

The only bright side is its high dividend yield of 6%. However, this high dividend is not paid from the free cash flow of the business, but from sale of assets.

Hence for me I would avoid investing in Muda holding.

Posted by chang0509 > 2013-11-02 16:43 | Report Abuse

Hi mr KcchongNZ. Is it parkson worth to invest at current price? Once the china business recover, will the share price soar high?

Posted by kcchongnz > 2013-11-02 17:04 | Report Abuse

chang0509, I have commented on Parkson some time before as shown in the link below:

http://klse.i3investor.com/blogs/in_search_of_excl_kcchongnz/34631.jsp

My opinion has not changed since then.

Parkson made tons of money in China before the US sublime crisis and the slow down of Chinese economy. Hence if the China business recover, I am sure Parkson will do very well.

Posted by chang0509 > 2013-11-02 19:48 | Report Abuse

Ok, thx for ur advice. I will tk note.

Posted by winniechan > 2013-11-04 11:02 | Report Abuse

Thank you very much KC. I will avoid Muda from now on.

Posted by coolio > 2013-11-11 15:38 | Report Abuse

kcchongnz, is tafi a hidden gem?

Posted by kcchongnz > 2013-11-12 07:10 | Report Abuse

Posted by coolio > Nov 11, 2013 03:38 PM | Report Abuse
kcchongnz, is tafi a hidden gem?

coolio, why do you think tafi is a gem? Compared with other furniture companies, tafi appears to be one of the worst to me.

Just see the last two financial year results. the already minute revenue (<40m) is deteriorating and losses escalating. What a great combination of results.

For me,when a company is making losses most of the time, there is nothing else to see if it is worthy of investing.

Oh yeah forgot to clarify that I don't have a crystal to gaze at its future. Neither do I depend on chart to do my investment.

Posted by coolio > 2013-11-12 10:58 | Report Abuse

Thanks Kcchongnz, appreciate your explanation. I only look at tafi NTA 0.73 & thinking that it is undervalue, did not really look at the financial result. Still have plenty to learn in FA.
I have been in stock market for few years & never make as much as now after following your stock pick, been following your threads for pass few months, making money in some counter like pintaras, homeriz, willow, flbd,insas etc. Really appreciate your inputs in i3. Your are very kind!

Posted by kcchongnz > 2013-11-12 11:34 | Report Abuse

coolio, good to hear you make money following my threads. You know what? Most of the counters you mentioned above were from alert from the forumers in i3 here. Some of them followed up with some good analysis themselves.

May be you could pick up some fundamentals from my postings and try find some good stocks yourself and share with us here. I would provide my input like what I have been doing.

Investing basing on fundamentals in my opinion, provides you with the protection of the downside, and once the downside is limited, the upside will take care of itself.

Tafi's asset quality is not bad but not as good as those I posted on Graham net net valuation. But important thing a company cannot continue making losses. Otherwise whatever assets it has will be eroded soon.

Posted by bluewards > 2013-11-13 22:38 | Report Abuse

Hi kcchong, have you taken a look at cresbuilder?

Posted by hw0706 > 2013-11-13 22:39 | Report Abuse

DKSH, BONIA

Posted by kcchongnz > 2013-11-14 05:35 | Report Abuse

Posted by bluewards > Nov 13, 2013 10:38 PM | Report Abuse
Hi kcchong, have you taken a look at cresbuilder?

bluewards, we have some discussions on cresbld on this thread on April 8 2013. Go read it and make your own judgement. My final take on it is as followed:


Posted by kcchongnz > Apr 9, 2013 05:51 AM | Report Abuse X

tptan45, you are absolutely right on all your comments above. I could see this things from their cash flow statement.

Just a glance at its financial statement ended 31/12/2012, I feel uncomfortable about investing in this company. The income statement lumps everything into revenue and profit, which includes that revaluation of its investment properties. This is inappropriate in my opinion. This stuff has to be specially separated as revaluation gain, or extra-ordinary gain or whatever, after the "profit from operations", and should not be classified as "other operating gain". How can a revaluation of assets be classified as "operating gain"? How can this gain be lumped together in earnings per share? Hiding the fact in the explanatory notes is irresponsible.

Financial Auditors: GEP Associates (2011). Who the hell is this?

I view it as a financial shenanigan. I may not be qualified to say so as I am no accountant. But I will definitely avoid this stock. There are so many to choose from Bursa.

Posted by villa1668 > 2013-11-17 15:56 | Report Abuse

Hi Kcchongnz,
May i know your view on TA Global? So many landbank and assets in oversea. NTA0.47, most of the lands purchased for more than 10 years ago never revaluation.

Posted by kcchongnz > 2013-11-17 16:24 | Report Abuse

TA Global, trotting all around the world

Posted by kcchongnz > May 30, 2013 11:30 AM | Report Abuse X

Posted by joe2703 > May 27, 2013 06:11 PM | Report Abuse
@kcchong, I'm your fan and I learn a lot of things from you, you have given a lot of useful information and advice. Thanks.
What do you think about TA Global ? Need your advice.

TA Global, property development and investment all over the world! Wow!! Don't really know much about this company but I doubt it is really that lucrative to invest all over the world where many places you are not familiar with.

Just by looking at its latest financial statement ended 31/1/2013, I don't see it meet my view of a good company. Huge outlay of total capital of 3.6 billion with debts closed to equity. Net income is just a pittance of 92m, for a ROTC of just 4%, a huge destroyer of economic value.

But is it cheap. as a bad company can be a good investment if it is selling cheaply.

The price-to-book is ok at 0.7. PE ratio of 18 for this type of performance, not cheap at all. I won't invest in it even PE is more than 10. I would think it would appear even much more expensive if one takes its enterprise value into consideration.

Regarding the true value of its land, I have no idea and I won't invest just because somebody says its land is so undervalued. There are so many other property companies here which also have land which have not been revalued long ago and I am more sure about this than that of TA Global. Besides they are doing very well in their financial performance too.

So it is a no-brainer for me which property company is a better bet.

But you don't have to follow me.

Posted by G4M3RZ > 2013-11-17 20:30 | Report Abuse

Hi kcchongnz,
may i know ur view on Tambun & Fibon?

Posted by sklyte > 2013-11-17 21:56 | Report Abuse

Hi Kcchongnz , I have ulicorp n epmb. Yeoman fund just bought into ulicorp . Heard it invest in undervalued co. Share of ulicorp up from 80cts to 1.02 now. Is it worth holding? Epmb a laggard. At 73cts, can hold? Thanks

Posted by kcchongnz > 2013-11-18 10:34 | Report Abuse

Posted by G4M3RZ > Nov 17, 2013 08:30 PM | Report Abuse
Hi kcchongnz,
may i know ur view on Tambun & Fibon?

Please refer to the my writeup at the link below. However, since then its share price has almost doubled.

There are some valuations done for Fibon too. Judge yourself if it is still worth buying.

Good luck.

Posted by kcchongnz > 2013-11-18 12:04 | Report Abuse

How is Tambun?
Posted by G4M3RZ > Nov 17, 2013 08:30 PM | Report Abuse
Hi kcchongnz,
may i know ur view on Tambun & Fibon?

Let us refer to ColdEye’s 5 yardsticks to determine if Tambun, at RM1.44 now is worth investing.

Yardstick 1: ROE
Tambun reported an earnings attributed to common shareholders of 40.7m, or EPS 15 sen for the year ended 31/12/2012. With its net asset backing per share of 72 sen, ROE is 18.3% (>12%), very good.

Yardstick 2: Cash flow and free cash flow
The cash flow from operations (CFFO) is 84.1m. This is 147% of its total earnings of 57m. This shows its good quality of the earnings. After spending 26.4m in capital expenses, there is a free cash flow (FCF) of 82.7m. This FCF is very high at 28% (>>5%) of its revenue.

Yardstick 3: PER
Tambun is trading at 1.44 at the close of 17/11/13. With EPS of 15 sen, the PE ratio is less than 10. This is inexpensive.

Yardstick 4: Dividend yield
Tambun paid a dividend of 9.1 sen for the last financial year, or a dividend yield of 6.3%, higher than the FD rate. This dividend is paid through the FCF, not from borrowings or additional share issues. This is another tick.

Yardstick 5: NTA
The net asset backing per share of Tambun is 0.77 compared to its price of 1.44. this is ok, bearing in mind it has an excess cash backing of 96m.

Tambun seems to meet all the criteria of Cold Eye as an investment. Hence according to the 5 yardsticks of ColdEye, Tambun is an investment grade stock.

Posted by faberlicious > 2013-11-18 13:24 | Report Abuse

kc,Tambun's capex is only 1.35 million,not 26.4 mln. :)

Posted by kcchongnz > 2013-11-18 13:34 | Report Abuse

faberlicious, thanks for pointing out.

Yeah, after spending 1.35m in capex, the FCF is 26.4m as shown, not 26.4m in capex.

Good to know that you actually go check the figures.

Posted by faberlicious > 2013-11-18 16:29 | Report Abuse

Posted by kcchongnz > Nov 18, 2013 01:34 PM | Report Abuse

faberlicious, thanks for pointing out.

Yeah, after spending 1.35m in capex, the FCF is 26.4m as shown, not 26.4m in capex.

Good to know that you actually go check the figures.

kc,FCF is 82.7 mln,not 26.4 mln. Not enough sleep ah ? :0)

Posted by kcchongnz > 2013-11-18 16:41 | Report Abuse

I said FCF is 82.7m what?

Oop yeah ah, not the latest post. Earlier post yes.

Thanks again.

Yeah lah last night too much wine. got to wake up often to pee. Some more got to wake up this morning at 5.00am to get ready to go play golf. Hence not enough sleep.

Posted by faberlicious > 2013-11-18 17:40 | Report Abuse

Ok,ok now can go and get some sleep. Market sudah "sau thong".

Posted by tonylim > 2013-11-18 21:25 | Report Abuse

Kekeke LOL

kcchong, take good care of your prostate ah.

Posted by hiddengem > 2013-11-19 08:58 | Report Abuse

Good morning Mr kcchongnz, I'm a strong follower, learner & believer in all yr threads that provide a clear direction for me to trade wisely & always making profits.

Can u kindly provide yr input whether SHL is indeed a hidden gem under the Graham Net Net Investment strategy. Yr input feed back is very much appreciated. TQ

Posted by kcchongnz > 2013-11-19 11:08 | Report Abuse

Ulicorp good to invest?

Posted by sklyte > Nov 17, 2013 09:56 PM | Report Abuse
Hi Kcchongnz , I have ulicorp n epmb. Yeoman fund just bought into ulicorp . Heard it invest in undervalued co. Share of ulicorp up from 80cts to 1.02 now. Is it worth holding? Epmb a laggard. At 73cts, can hold? Thanks

First time look into Ulicorp. let us base on its latest annual financial results dated 31/12/12 and use ColdEye's 5 yardsticks to evaluate and see.

United U-LI Corporation Berhad (U-LI) is engaged in the manufacturing and trading of cable support systems, cable management systems, integrated ceiling systems, building materials and light fittings. It has three segments: Investment holding; Cable support systems, and Electrical lighting and fittings.

Yardstick 1: ROE
Ulicorp reported an earnings attributed to common shareholders of 17m, or EPS 12.9 sen for the year ended 31/12/2012. With its net asset backing per share of 72 sen, ROE is 9.6%. This is lightly less than 10% and hence marginally acceptable.

Yardstick 2: Cash flow and free cash flow
The average cash flow from operations (CFFO) from the last two years is 19.3. This is 116% of its average earnings of 16.3m. This shows its good quality of the earnings. After spending 5m in capital expenses, there is a free cash flow (FCF) of 15.4m. This FCF is high at 10% (>>5%) of its revenue.

Yardstick 3: PER
Ulicorp is trading at 1.03 now. With EPS of 12.9 sen, the PE ratio is 8, or less than 10. This is inexpensive.

Yardstick 4: Dividend yield
Ulicorp paid a dividend of 4 sen for the last financial year, or a dividend yield of 4%, higher than the FD rate. This dividend is paid through the FCF, not from borrowings or additional share issues. This is another tick.

Yardstick 5: NTA
The net asset backing per share of Ulicorp is 1.34 compared to its price of 1.03, or a price-to-book ratio of 0.8 which is less than 1. This is ok, bearing in mind it has an excess cash backing of 30m.

Ulicorp seems to meet all the criteria of Cold Eye as an investment. Although its operating efficiency in ROE is marginal, the asking price is low and hence the risk will be lower accordingly.

The latest two quarter results ending 30 June 2013 shows there is a vast improvement in its earnings by 72%. The cash flow appears to be not as good though.

Hence according to the 5 yardsticks of ColdEye, Ulicorp is an investment grade stock.

Posted by The Picker > 2013-11-19 11:31 | Report Abuse

Good day to you KC~

Do you think KUCHAI is a hidden gem?

Kuchai is trading at RM 1.22 now with PE ratio 3, and NTA 2.65. Would like to know if Kuchai have lots of asset?

Thanks in advance.

Posted by sklyte > 2013-11-19 12:10 | Report Abuse

Thanks for the write up on ulicorp. Give me more faith to hang on to this stock.

Posted by kcchongnz > 2013-11-19 12:32 | Report Abuse

Kuchai?
Posted by The Picker > Nov 19, 2013 11:31 AM | Report Abuse
Good day to you KC~
Do you think KUCHAI is a hidden gem?
Kuchai is trading at RM 1.22 now with PE ratio 3, and NTA 2.65. Would like to know if Kuchai have lots of asset?

Kuchai is a 100% investment company. It does not have any significant business, maybe just a few hectares of plantation here and there.

Its assets are all in cash, equity investment, properties and investment in its associates. All these are hard and quality assets which can readily be converted to cash. It has negligible liabilities.

Hence your NTA of 2.65 is about what it is worth, in my opinion. Kuchai just need some catalysts to unlock its huge undervalued assets such as good special dividends, privatization, or a raider to come in (hard as the related companies shares in Kluang and Sg Bagan are crossly held).

Kuchai will be a great reward for investors who are very patient.

Posted by Avocado_C > 2013-11-19 14:47 | Report Abuse

Listed Logistics Companies In Malaysia - Bursa D
http://klse.i3investor.com/blogs/kianweiaritcles/40669.jsp

KCChong, did you manage to read this article? I know you have invested / still investing in Freight Management. What's your view on other logistic companies, like Tasco or Tiong Nam or those mentioned in the article?

I have briefly analysed Tasco, it meets all the five yardsticks except Cashflows. It always have positive CFFO, but FCF varies YoY. My major concern is its huge investments in plant & equipment. But this company has long operation history and related to the Yusin Logistic Co.in Japan. Any thoughts?

Basically, I think the logistics and courier business are still growing and this trend will continue for a while. The retail business is very globalised nowadays, and online shopping has become a norm. I have checked global logistic companies like UPS / FedEx which are trading at P/E of roughly 65x and 27x, does this say something about market's perception?

Posted by The Picker > 2013-11-19 15:22 | Report Abuse

Hi KC, thanks for the Kuchai feedback.

I have another counter is EAH (ACE Market) & would like to seek for your advice.

This counter listed in year 2010 with IPO price RM0.250, now RM0.185 which even lower than IPO price. Technology counter with NTA 0.160, cash 7 mil but no debt. I have no idea if their business is consider good business.

Mind to share your opinion?

Thanks.

Posted by tj86 > 2013-11-19 15:40 | Report Abuse

Hi Kc, what do u think on XinquAn? Is it a good stock to invest?im still worried in investing chinese company...plz enlighten me thx

Posted by kcchongnz > 2013-11-19 17:00 | Report Abuse

XingGuan? Damn good man!

Posted by tj86 > Nov 19, 2013 03:40 PM | Report Abuse

Hi Kc, what do u think on XinquAn? Is it a good stock to invest?im still worried in investing chinese company...plz enlighten me thx

Yeah the performance is damn bloody good. Heaps of cash. But only if you trust its account.

Investing is really a jungle out there. Even you visit their factories, talk to the management, got a brother-in-law working as a senior partner in the auditing firm for Xingguan, you still can lose plenty of money investing in it.

That is what happened to Koon YY, a very successful investor. What's the chance for people who know nothing about investing and lazy to learn about it, except listening rumours here and there and punt.

Posted by tj86 > 2013-11-20 01:46 | Report Abuse

thanks for the advise kc..by the looks of accounts its a really good company to invest..the question is can we 100% rely on their audited account? Are the auditor liable if we invest based on their audited account that has been falsified?

Posted by tptan45 > 2013-11-20 09:10 | Report Abuse

No china companies
No GLCs
No Cronies related companies.
Keep your money safe.
Seen too many, heard too much.

Posted by kcchongnz > 2013-11-20 10:04 | Report Abuse

great maxim from tptan. With this half the battle in Bursa have already won.

Posted by haikeyila > 2013-11-20 11:33 | Report Abuse

how bout 'No penny stocks'

Posted by ipomember > 2013-11-20 11:35 | Report Abuse

No GLC is half right. lol

Posted by kcchongnz > 2013-11-20 11:50 | Report Abuse

Posted by haikeyila > Nov 20, 2013 11:33 AM | Report Abuse

how bout 'No penny stocks'


Good one. Patimas is a classic example.

But seriously i am very sure they are some good penny stocks around too. It all depends on the price in relation to its earnings and or assets.

Posted by haikeyila > 2013-11-20 11:52 | Report Abuse

maybe one good penny stock in a hundred. not worth the risk for me. Below 60c - caution, below 30c - No no.