http://www.thestar.com.my/business/business-news/2017/02/16/jhm-gets-nod-to-produce-electronic-lighting-modules-for-planes/

Teo Seng Capital - Fair Value RM1.38

Good long-term prospects :-
1) Growth strategies; capacity expansion; diversification into other streams and cost-saving initiatives
2) Improved earnings visibility with 2-year CAGR of 41% in FY16-FY18F
3) RM1.38 TP is pegged to 11x FY17 EPS

The Business

Modern poultry farmer. Teo Seng Capital (TSC) is one of the largest egg producers in Malaysia with a daily output of 3.5m eggs, of which one-third of its production is exported to
Singapore. The group is also involved in the manufacture and
marketing of paper egg trays and animal feeds, along with the
distribution of animal health products.

Aggressive growth strategies. TSC is a vertically-integrated layer farming player with a current market share of 8.8% in Malaysia and 19% in Singapore. TSC targets to steadily grow its market share to 12.5% in Malaysia and 30% in Singapore by 2019. We forecast earnings to grow in line with TSC’s targeted expanding market share, supported by 1) stabilisation of egg selling price,
2) expansion in daily production capacity; TSC plans to increase
its daily production volume by +522k p.a. in Singapore and
+982k p.a. in Malaysia; both by 2019, 3) vertical and upstream
diversification, 4) cost-saving initiatives, and 5) superior operating margin compared to its peers. Its continued growth is also supported by management’s projected annual commercial egg consumption CAGR of 4.2% until 2019. Although TSC targets to grow at a faster rate than industry demand growth, management believes it will be able to achieve its targeted growth due to the fragmented local layer industry where the largest five players account for only c.37% of market share.

Stable industry outlook. Although there are fluctuations in the demand of eggs and ASP, we believe TSC’s outlook is still stable, as eggs are deemed inelastic goods as they are a consumer staple and small-ticket item in household spending.

The Stock

Fair value of RM1.38. Our fair value is based on 11x fully-diluted FY17F EPS, which is the industry’s average (excluding QL and Lay Hong). We have excluded QL and Lay Hong due to their larger market cap and higher institutional shareholding. The stock is currently trading at 7.3x FY17F PE. Although our PE target is above the historical mean PE, we deem this undemanding given our expectation of a strong 2-year EPS CAGR of 41% FY16-18F. The stock is also trading at a PEG of c.0.3x.

Strong fundamentals. Aside from its strong EPS CAGR, we also like TSC for its positive cashflow despite its aggressive
expansion, coupled with low egg prices in FY16, superior net
margins (c.10%) and positive ROAE (>13%).

AllianceDbs Research 7/2/2017

https://www.bloomberg.com/news/articles/2017-02-02/saudi-arabia-raises-march-crude-oil-pricing-for-all-buyers

Based on the latest financial results, an analyst told The Edge Financial Daily that VisDynamics was valued relatively cheaper than its peer Vitrox Corp Bhd. "Assuming they could maintain a net profit of RM2 million per quarter, the stock is trading at five times its PER compared with Vitrox (which is) over 15 times," said the analyst.
- The Edge Financial Daily 16/1/2017

If i am not wrong, Digistar had issued bonds of RM270 million to build this Malaysian National Technology Advancement Centre & need to service the interest.

Just lucky :)

Superb......fund managers all go hiding !!!

http://www.thestar.com.my/business/business-news/2017/01/07/november-semicon-sales-rise-at-highest-rate-in-nearly-2-years/

ibot super efficient, thumps up !!!

http://www.thestar.com.my/business/business-news/2017/01/09/rce-capital-continues-to-attract-investors/

Our base case fair value of RM0.60 is premised on a DCF valuation of Hibiscus? 50% stake in the Anasuria cluster with a 11.0% WACC. We are also positive on a further upside boost of an additional RM0.55 with the potential acquisition of the North Sabah asset. The total fair value of Hibiscus would therefore be RM1.15 if the acquisition is successful, pending approvals from Petronas. The base case scenario however of RM0.60 still offers a potential 37.1% upside from current share price.

Contingent consideration. We do note that there is a contingent consideration to the vendors, if oil price is above USD75/bbl, but only for between 2018-2021. The contingent consideration is 15cents per USD/bbl. Factoring in this consideration and with the assumption that oil price is at USD75/bbl from 2018 to 2035, Hibiscus? portion of the Anasuria Cluster is worth RM1.03 with the above assumptions remaining unchanged.

PublicInvest Research

http://klse.i3investor.com/blogs/bursakakis/113265.jsp

http://klse.i3investor.com/blogs/bursakakis/113286.jsp

Perfect !!!

Excellent job

Reach earnings starts from QA S&P since Oct 2015.

Reach Energy MD Shahrul said the company had started to recognise earnings from its QA from October last year, as per the sale & purchase agreement inked with MIE Holdings. 

"We are (already) in the business, and the operator ships and management of assets will be phased in within the next six months from the vendors to Reach. The hard work begins now," he said. 

According to MIE Holdings' interim financial disclosure for the six-month period ended June 30, 2016 (1HFY16), Emir-Oil's sales climbed 11.4% year-on-year to 659.42 million yuan (RM417.95 million) from 592.18 million yuan a year earlier. 

Based on the stake Reach is acquiring, the compny should be able to book in 395.65 million yuan during the period. 

The Brent Crude Index slipped 0.38% to US$46.77 per barrel as at 4.41pm yesterday. At the current level, Shahrul said the company is 'very comfortable" even if the price stays at the current level. 

"There is no pain yet,"he said, not unless oil price falls below US$30 per barrel. 

- The Edge Financial Daily Nov 17, 2016

" Although the company is looking at raising the additional funding of about RM180 mil, it will consider a rights placement only at a last resort . We don't want to upset shareholders who might face dilution of the shareholders base if we do this. We don't want them to be unhappy and place more share in the market. There are other options that we can explore for additional funding such as refinancing or third financing from banks. Oil prices are improving and we have zero gearing, which is to our advantage when seeking financing." - Shahrul MB Reach Energy.

- Focus Msia 6/1/2017

I haven't buy in Sign-wa. Waiting for the co business to rebound.

I am holding all the counters except Sign-wa ;)

Last yr those picked Petron also leading with a wide margin but ending short of petro to end the race.

Tq all, long way to go.... VenFx, keep it up !!!

Tq moneykj, the journey is long & full of traps ;)

Hi connie i no pro. Running a free telegram channel for sharing, learning & passion.

http://www.theedgemarkets.com/my/article/rhb-strategy-2017-if-nothing-else-lower-oil-prices-will-boost-overall-sentiment-oil-gas

Cruz, Sumatec produced only Gas n no Crude Oil. It's not in the same league as Reach n Hibiscus. In football, it's 2nd division. Read my earlier comments.

Hehe i didnt see anyone there.

Bro hawk, kaki flag closed shop ? Me busy with my telegram channel. Dropped in i3 once a while to give comments.

Happy New Year to Connie, Hawk n everyone here.

Hi bro skyhawk long time no see

Ibot, error on 1lottrade calculation. His portfolio is negative rm239, thus should not be in 1st position.

Too early to celebrate. Need to have the stamina to complete the race.

System wrong calculation. 1lottrade is negetive rm239, should not be in the 1st position.

Congrats sifu Icon8888

http://www.theedgemarkets.com/my/article/global-semicon-sales-74-y-o-y-november-us31b-says-sia

I see this stock doubling in value if next 2 quarter results can be maintained. Co is very clean with 7.5 million net cash.

Hehe, need to diversify. Consumer domestic sales. Hopefully Ktc recover this year.

Hehe VenFx, Vis my saviour today.

Congrats VenFx & tkp2 sifu ;)

http://klse.i3investor.com/blogs/hleresearch/113006.jsp

Paperplane, salute you if you have submitted your picks to Mr Tan KW. You are at the same level playing field with the rest. Taday alone there are more than 15 picks by IBs/Newspapers & many more will be called by analyst the next few days.

Paperplane being one of the top 20 Stock Pick winner has 1 week advantage bcoz his closing date for 2017 contest is 6/1/2017 whereas others was 30/12/2016. Salute to Icon8888 & Luvluv for picking their stocks on 30/12/16 eventhough they are also top 20 winners.

Furniture Exporters

1) Liihen - Net Cash RM82.9M
2) Hevea - Net Cash RM94.6M
3) Pohuat - Net Cash RM42.6M
4) Latitude - Net Cash RM139.8M ( Includes Investment Securities Of RM46.4M )

USD is expected to appreciate 10 % if they implement 5 % tariff on imports. On the bright side, our exports will still be 5 % cheaper after the tax.

No. 19 error - also Genetec share consolidation 10:1 not adjusted.

No. 11 error - Genetec share consolidation 10 : 1 not adjusted.

Congrats Up_down !!!

Mr Tan KW

My Picks for 2017

1) Reach-Wa 30 % @ 0.115
2) Hibiscus 20 % @ 0.410
3) Vis 20 % @ 0.365
4) VS-Wa 10 % @ 0.250
5) Sign-Wa 10 % @ 0.250
6) Ktc 10 % @ 0.240


Thank You,
rikki

Adjusted by adding RM6,091.50 to cash. Portfolio total value now RM100,325.12.

Dear Paperplane/Mr Tan, as a result of Tianwah rights issue 1 : 2 @ RM1 per share my average cost should be 2.051 instead of 2.576. Cost RM29,883.10 + RM5,800.00 (Rights Price) = RM35,683.10. No of shares 11,600.00 + 5,800 ( Rights Shares) = 17,400.00. Adjusted price 35,683.10/17,400.00 = 2.051 or difference of RM6,091.50 to be added to my portfolio. Thank you.