Highlights

Investhor's Mighty Hammer of Wisdom

Author: Investhor   |   Latest post: Sat, 22 Aug 2020, 10:26 AM

 

PKPP SOON END?? THIS TOURISM STOCK LINKED (INDIRECTLY) TO PERAK ROYALTY IS MY TOP WATCH !!!

Author: Investhor   |  Publish date: Sat, 22 Aug 2020, 10:26 AM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

IMPIANA HOTELS BERHAD or IMPIANA (Code 7243, MAIN Market, Consumer

Products & Services)

Some basic info on this company:

i. Number of shares float : 845.74 million

ii. Market Cap : RM 84.57 million

iii. Last closing price : 10 cents

iv. Website : https://www.impiana.com.my/

 

 

IMPIANA - PKPP END SOON?? THIS TOURISM STOCK LINKED

(INDIRECTLY) TO PERAK ROYALTY IS MY TOP WATCH !!!

 

1. Chairman of IMPIANA, Dato' Seri Ismail @ Farouk Bin Abdullah, is The Husband of  (Daulat Tuanku) YTM

Raja Dato' Seri Eleena Binti Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-lah

Below the picture of couple, source fromhttp://warisanpermaisuri.blogspot.com/2013/07/raja-eleenawanita-melayu-terkaya.html

A brief profile of the Chairman:

His shareholdings in IMPIANA totals to 70.27% (Direct 17.05%, Indirect 53.22%), as of latest Annual Report available :

A brief profile of the Chairman's wife (the Sister of current Perak Sultan, & also Board Member of GAMUDA Berhad):

 

So as you can see, there is not much public float left for IMPIANA as the Chairman himself holds a very significant chunk of the total float.

As the RMCO is planned until 31st August 2020 (we don't know yet whether it will be extended or not), I believe that local tourists volume are improving as they start to check-in into our local hotels. Also, once the global Covid19 situation improves and foreign tourists are allowed to travel again, we shall see spike in tourism activities once again.

 

2. Trading At Big Discount To Its NTA of 53 Cents

Refer below latest QR summary for IMPIANA. As we can see the total NTA stood at 53.1c in the latest QR. Therefore, the current trading price of 10c, is way below its NTA by 43.1c.

This represents a discount of 81% to the total NTA, which is considered at undervalued price right now.

 

 

 

3. IMPIANA To Diversify Into Property Development - First Maiden Development Is IMPIANA

Residences Cherating

Refer below news article, recently on 12th August 2020, where IMPIANA mentioned that the ongoing redevelopment of IMPIANA Residences Cherating by its wholly owned subsidiary, IMPIANA Cherating Sdn Bhd, has been identified as the group/s maiden venture into property development.

The Board expects the property development business to contribute 25% or more of the group's net profit and as such, intends to seek the approval of IMPIANA shareholders to undertake the proposed diversification.

The redevelopment of IMPIANA Residences Cherating is expected to be undertaken over three phases, of which the first phase commenced in October 2018 and the third phaes expected to be completed in the fourth quarter of 2023.

IMPIANA also said the diversification would complement the group's existing businesses of management and operation of hotels and resorts.

https://www.thestar.com.my/business/business-news/2020/08/12/impiana-to-diversify-into-property-development

 

 

 

4. Technical Analysis - Bankers chips increasing position in 60m & daily chart, uptrend resume

after hitting support line

Let's take a look at the 60 minutes chart of IMPIANA using Homily software:

 

A few observations:

i. Refer Circle 1, recently, price faced some retracement towards the support line, and started to rebound before hitting the support

ii. Refer Circle 2, bankers chips seems to be increasing position whilst weak holders have been flushed out

iii. Refer Circle 3, the uptrend seems to be accompanied by improving volumes, which indicates strength

Let's take a look at the daily chart of IMPIANA using Homily software:

 

A few observations:

i. Refer Circle 1, bankers chips are slowly increasing position in this counter, with recently position being added upwards again, whilst weak holders are being flushed out

ii. Refer Circle 2, the recently uptrend was supported by improving volumes, which indicate strength

iii. Refer Circle 3, the price seems to be surfing the support trendline, with recent price action trending towards the upside as the price rose above the pink trendline

 

CONCLUSION

Based on my opinion, IMPIANA should be given attention in coming weeks, based on below:

i. Chairman holds 70% stake in IMPIANA, who is also the husband of Sultan Perak Sister

ii. Trading at 81% discount to NTA of 53.1c

iii. To diversify earnings via property development, with maiden project IMPIANA Residences Cherating
 
iv. Chart indicating long term shareholders, are holding on to expect higher prices in future
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

Labels: IMPIANA
  Be the first to like this.
 

THIS OVERLOOKED STOCK POSTED HISTORICAL NET PROFIT !!! ALSO NEW VENTURE INTO HEALTHCARE WITH SUBSIDIARY OPEN IN S'PORE !!!

Author: Investhor   |  Publish date: Sat, 4 Jul 2020, 1:39 PM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

PCCS GROUP BERHAD or PCCS (Code 6068, MAIN Market, Consumer

Products & Services)

Some basic info on this company:

i. Number of shares float : 210.4 million

ii. Market Cap : RM 70.49 million

iii. Last closing price : 33.5 cents

iv. Website : https://www.home.com.my/symphony-life-formerly-bolton-berhad

PCCS - THIS OVERLOOKED STOCK POSTED HISTORICAL NET

PROFIT !!! ALSO NEW VENTURE INTO HEALTHCARE WITH

SUBSIDIARY  OPEN IN S'PORE !!!

 

1. Posted all time high net profit in May 2020 QR

Refer below the latest QR summary for PCCS. 

As we can see, during the latest QR, PCCS managed to post an all time high net profit of RM 9.2 mil or EPS 4.39, despite the effect of COVID19 pandemic on the global economy.

This means that after summing up all 4 quarters, PCCS is currently trading at about 5X PE Ratio, which is considered quite low in this sector.

Taking a fair ratio of around 8-10X PE for apparel company, we should target a fair vaue of 56-70c in the upcoming future.

 

2. Trading at 54% discount to NTA of 73c, and also has RM 65 mil cash in the bank equivalent to

31c cash per share

Refer below latest asset versus liability sheet of PCCS in the latest QR. 

Total NTA stood at 73c, this means latest closing price of 33.5c represents a 54% discount to its NTA.

Also, total assets stood at RM 329 mil versus liabilities of RM 168.1 million, which means this stock is a net asset company by about RM 160.9 million.

Also, something significant worth to note, is its cash position of RM 65 million, which represents a net CASH PER SHARE of 31c in the bank, against its latest closing of 33.5c. This means that the cash in the bank itself is nearly worth 92.5% of its total market cap.

 

 

3. Latest venture into healthcare by opening new subsidiary in Singapore, La Prima Medicare Pte.

Ltd.

Refer below latest announcement by PCCS on 26th June 2020. PCCS had incorporated a wholly-owned subsidiary company in Singapore, under the name of La Prima Medicare Pte. Ltd..

The principal activity of La Prima Medicare Pte. Ltd. is wholesale of medical, professional, scientific and precision equipment. 

Of course it is still at the early stage of incorporation. However, the time to invest is usually at the early stage, where the price of the stock is still undervalued.

Once they have obtained few licenses to distribute medical equipment and started distribution of products into the market, I believe that the price of this company will not be this cheap any more.

 

 

4. Technical Analysis - Bankers chips increasing position in 60m chart, Bankers chips slowly

accumulating position in daily chart

Let's take a look at the 60 minutes chart of PCCS using Homily software:

 

A few observations:

i. Recently, price faced some retracement below the support line, as the number of weak sellers increased

ii. However, if we look at the circled area, it seems that most recently bankers chips started to increase position in this stock, as the green holders start to reduce indicating less weak holders inside

Should the stock continue trending upwards next week, there would be more renewed interest in buyers wanting to take a stake in the trend

Let's take a look at the daily chart of PCCS using Homily software:

 

A few observations:

i. After hitting low in March 2020, bankers chips had started to accumulate position in this stock

ii. Recently the stock faced some selling pressure, however we see that bankers chips still remain inside this stock despite the recent price retracement

iii. As of latest, it seems that green chips (weak holders) position has been reduced to a very small amount, indicating that selling might be weak should buyers decide to continue uptrending this stock

CONCLUSION

Based on my opinion, PCCS should be given attention in coming weeks, based on below:

i. Posted all time high net profit in May 2020 QR, fair value of 56-70c based on 8-10X PE ratio

ii. Trading at 54% discount to NTA of 73c, also net cash per share very high at 31c per share

iii. Exciting new venture into healthcare via subsidiary in Singapore
 
iv. Chart indicating long term shareholders, are holding on to expect higher prices in future
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

Labels: PCCS
  Be the first to like this.
 
dompeilee BEDEKMaster looking to steal money from newbies' pockets again LOL!!!
05/07/2020 11:23 AM
Citadel12 another rubbish promoter
05/07/2020 1:00 PM
dusti HA HA HA
06/07/2020 10:11 AM

INSANE ! THIS STOCK IS ONLY TRADING AT PE RATIO 2X & 77% DISCOUNT TO ITS NTA !!!

Author: Investhor   |  Publish date: Sat, 20 Jun 2020, 3:57 PM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

SYMPHONY LIFE BERHAD or SYMLIFE (Code 1538, MAIN Market, Property)

Some basic info on this company:

i. Number of shares float : 600.57 million

ii. Market Cap : RM 231.22 million

iii. Last closing price : 38.5 cents

iv. Website : https://www.home.com.my/symphony-life-formerly-bolton-berhad

SYMLIFE - INSANE ! THIS STOCK IS ONLY TRADING AT PE

RATIO 2X & 77% DISCOUNT TO NTA ! 

 

1. Couldn't find any analyst report on SYMLIFE for the past 1-2 years

Been trying to see if any IB had written any coverage on this stock, however to my dissapointment, I can't find any.

I guess this can be one of the many reasons the price had been depressed for so long, despite the good financials and business.

Any of my IB analysts or reporter friends out there, hope you get this call and do some justice to this company, so that existing shareholders and potential investors are able to see the data & prospect of this company in order to make a better informed decision on their investments.

 

2. Too undervalued, trading at PE 2X Ratio

Refer below latest QR summary of SYMLIFE for the past 3 years. 

For FY 2019, we see that total earnings were roughly 21c per shares. This means that latest share price of 38.5c indicates PE Ratio of only around 1.5-2X. This is very absurd considering how good the company earnings in FY2019 and also in FY2020 up  to date.

As of latest FY2020 3 quarters, the company already earned 15.4c per shares. If this profit is consistent for another quarter, we should be looking at EPS around 21-23c for the FY2020 closing.

 

3. Trading at 77% discount to its NTA of RM 1.65

Refer below on the latest assets versus liabilities for SYMLIFE. 

Note the total assets of about RM 1.53 billion (NTA RM 1.65) versus liabilities of RM 641.9 million.

This makes the company a net asset surplus of RM 888.1 million.

I am surprised at how the share price of this company can be so low all these while.

4. Notable funds and individuals at top 30 shareholders (as of latest list available in Annual Report)

Refer below list of shareholdings in SYMLIFE as of latest FY2019 annual report.

Besides the majority shareholder / owner which is Tan Sri Mohamed Azman Bin Yahya, we see a few other notable names:

i. RHB Trustees Berhad

ii. Urusharta Jamaah Sdn Bhd (investment arm of Tabung Haji)

iii. Malpac Capital Sdn Bhd

iv. Sun Hung Kai Investment Services Limited

v. TS Abdul Wahid Omar (ex minister, ex CEO Maybank, ex Chairman PNB, and currently non-executive Chairman of BURSA)

 

 

5. Exciting prospects ahead in FY2020

Refer below prospects of SYMLIFE for FY2020 as mentioned by the company. Let me summarize for your ease of reading:

i. Star Residences, a RM 3 Bil GDV in KLCC received very good response, with sales 99% for RT1 and 87% for RT2, SR at 97%. Also new launch is RT3 receiving good response from foreign buyers.

ii. TWY Mont Kiara with GDV RM 435 million, achieved sales of 98%

iii. Tijani Raja Dewa in Kota Bharu, GDV of RM 185 million, currently at 58% take up rate

iv. Union Suites at Bandar Sunway, GDV RM 479 million, with 78% take up rate

v. Elevia Residences, Puchong, GDV RM 131 million, with 89% take up rate

vi. Industrial lot in Amanjaya, Sg Petani with GDV RM 15 million, take up rate of 80%

All in all, prospects look positive with unbilled sales of RM 495 million.

 

6. Technical Analysis - Red chips entering in 60m chart, red chips holding on for a breakout above 40c in daily chart

Let's take a look at the 60 minutes chart of SYMLIFE using Homily software:

 

A few observations:

i. Recently, price faced some retracement below the support line, as the number of weak sellers increased

ii. As of latest closing, we see 2 bars where red chips had entered this stock, and taking the price back towards the important breakout point 

Should the stock continue trending upwards next week, there would be more renewed interest in buyers wanting to take a stake in the trend

Let's take a look at the daily chart of SYMLIFE using Homily software:

A few observations:

i. After hitting low in March 2020, red chips had started to accumulate position in this stock

ii. Recently the stock faced some selling pressure, however we see that red chips still remain inside this stock despite the recent price retracement

iii. Important level to watch is whether it can able to breakout above the 40c level, to indicate bullishness in the momentum

CONCLUSION

Based on my opinion, SYMLIFE should be given attention in coming weeks, based on below:

i. Too undervalued, trading at PE Ratio 2X

ii. Trading at 77% discount to its NTA of RM 1.65

iii. Notable funds and individuals inside top 30 shareholder list
 
iv. Exciting prospects ahead, unbilled sales of RM 495 million
 
v. Chart indicating long term shareholders, are holding on to expect higher prices in future
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

Labels: SYMLIFE
  2 people like this.
 
20/06/2020 4:03 PM
greedy44444 Bursamalaysia already insane for over 40 years...no surprise at all ! Good company hardly moved, badly managed companies with heavy debts and loss making companies are always the target of market manipulators pushing the share prices well beyond their fundamentals. So if you want to make quick easy money make sure you buy the lousiest companies including those GN3 and PN17 companies.
20/06/2020 4:49 PM
speakup exactly!
20/06/2020 6:14 PM
nickthebest Actually this Company what you write most people realised. The thing is that the pattern for this company is share price hardly move...so many people will not touch shares like this. So instead of bet on this and "hope" eventually it will move is just wishful thinking. Thanks for writing though.
20/06/2020 10:49 PM
SureWin1Woh Value trap
21/06/2020 5:24 PM
melanie1818181818 Lol, after latest quarter, still “insane”? This rubbish stock will drop further, buying now is suicide
01/07/2020 9:07 PM

BUSINESSES, TOURISM, HOSPITALITY REOPENS !!! THIS STOCK SHOULD SEE SURGE IN DEMAND !!!

Author: Investhor   |  Publish date: Tue, 9 Jun 2020, 6:12 PM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

GETS GLOBAL BERHAD or GETS (Code 5079, MAIN Market, Travel Leisure & Hospitality)

Some basic info on this company:

i. Number of shares float : 126 million

ii. Market Cap : RM 12.6 million

iii. Last closing price : 10 cents

iv. Website : https://www.getsglobal.com.my/

GETS - BUSINESSES, TOURISM, HOSPITALITY REOPEN  !!! THIS STOCK SHOULD SEE SURGE IN DEMAND !!! 

1. Restoration Movement Control Order (RMCO) Starting From 10th June 2020 to 31st August 2020

Refer below news link. Starting from 10th June 2020, Malaysia will be entering RMCO phase, where tourism, hotels, and majority of businesses are allowed to open.

This will cause surge in demand for the use of public buses under GETS.

https://www.nst.com.my/news/nation/2020/06/598700/cmco-end%C2%A0replaced-rmco-until-aug-31

B

2. Profitable The Last 2 Quarters & Trading Below NTA of 31c

Refer below image for summary of QR for GETS.

A few points to note:

i) Revenue improved for 2 quarters in a row

ii) Started to be profitable for the past 2 quarters as compared with 2 years previously in losses

iii) NTA at 31c, the last closing price of 10c is a 21c discount to its NTA

 

3. Low Float Shares As Director Holding About 29.96% of Total Float

Refer below list of director shareholding in GETS. We see that Datuk Che Azizuddin Bin Che Ismail holds 29.96% of the total float shares, therefore leaving effectively 70% float in the market of the already small float of 126 mil.

Total float estimated about 88.2 million shares excluding the above.

4. TECHNICAL ANALYSIS - Homily Chart - Breakout Above the TE Line - Long Term Investors Adding Position

Let's take a look at the 60 minutes chart of GETS using Homily software:

A few observations:

i. At Circle 1 - Price had broken above the important resistance line indicating bullish momentum

ii. At Circle 2 - Red chips are increasing position in this counter, indicating that they are expecting higher prices ahead

CONCLUSION

Based on my opinion, GETS should be given attention in coming weeks, based on below:

i. Businesses & tourism reopening to cause a surge in bus demand 

ii. Stable FA , profitable the past 2 quarters, NTA 31c

iii. Director holding 30% of total float
 
iv. Technical Analysis - HOMILY Chart indicating breakout above TE line, and long term investors adding position
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

  Be the first to like this.
 

INVESTORS WOULD BE MAD NOT TO HOLD THIS GEM ! DIVIDENDS PAID QUARTERLY WITHOUT FAIL SINCE 2014 !!!

Author: Investhor   |  Publish date: Sun, 7 Jun 2020, 1:12 PM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

MATRIX CONCEPTS HOLDINGS BHD or MATRIX (Code 5236, MAIN Market, Property)

Some basic info on this company:

i. Number of shares float : 834.21 million

ii. Market Cap : RM 1.51 billion

iii. Last closing price : RM 1.81

iv. Website : https://www.mchb.com.my/

MATRIX - INVESTORS WOULD BE MAD NOT TO HOLD THIS GEM ! DIVIDENDS PAID QUARTERLY WITHOUT FAIL SINCE 2014  !!! 

1. PROPERTY Sector Stimulated by PENJANA

Refer below news link. The PENJANA Economic Recovery plan announced by government on 5th June 2020 is a boost to property sector due to below:

a) Revival of Home Ownership Campaign (HOC)

b) Real Property Gains Tax (RPGT) exemption for property sold between 1/6/2020 to 31/12/2021

c) stamp duty exemption for purchases

d) lifting of 70% margin of financin limit for third housing loan onwards

https://www.theedgemarkets.com/article/property-buying-activities-increase-penjana-incentives-say-surveyors

Based on all the above initiatives, I believe would benefit the property sector overall, including MATRIX as one of the property players.

2. Dividends Paid Quarterly Without Fail Since May 2014

Refer below image for summary of QR since May 2014 till latest Feb 2020. As we can see, MATRIX has paid a dividend of between 3 - 6.5 cents per quarter without fail since 2014. Let me summarize the annual dividend below for ease of reading:

a) FY 31 DEC 2014 : 19c

b) FY 31 DEC 2015 : 11.25c 

c) FY 31 MAC 2016 (6 months) : 8.15c 

d) FY 31 MAC 2017 : 13.75c 

e) FY 31 MAC 2018 : 13.5c 

f) FY 31 MAC 2019 : 12.75c

g) FY 31 MAC 2020 (9 months) : 9c

Any investor or fund manager looking at decent quarterly dividend payment would be mad not to buy and hold MATRIX into their portfolio. In addition, we can see that their Earnings Per Share (EPS) allows the dividend payment to be made, as their EPS usually falls in the range of 6 - 10c for the past 3 years.

3. Since January 2020, EPF aggressively adding shares, roughly 13.26 million 

Take a look at below summary of major shareholding change since Jan 2020. As we can see, EPF keeps buying shares of MATRIX since January 2020 and has added roughly 13.26 milion shares to take their total shareholding of MATRIX to 78.9 million shares (9.4%).

This shows us the EPF is valuing this stock as a longer term play as they keep adding shares eventhough during the COVID19 flash crash recently which brought this stock to a low of RM 1.24 on 17 March 2020.

3. MATRIX WARRANT A - A High Risk High Reward Entry - Low Price & Low Premium

Below the profile of MATRIX WARRANTS A (MATRIX-WA):

Below my observations on this warrant:

i. Strike price of RM 1.92, translating to premium of 6.63% for the warrant

ii. Latest mother shares close at RM 1.81, which is only 11c below the strike price

iii. Maturity of 20th July 2020, which is about 1 and a half months to go

iv. Latest closing price of 1c, indicating very low risk should the mother shares expire below strike price

Should the price of mother shares able to recover to Pre-COVID19 price of RM 1.90, I believe the warrant should see some trading interest. Especially if the mother breaks out above RM 1.92 strike price towards RM 2, then the warrant will see big interest in trading volume.

Let's say worst case scenario that the mother shares price is below RM 1.92 when the warrant expires, all warrant holders will have chance to convert the warrant into mother shares to avoid losing money on the warrant.

Longer term prospect, the mother shares should be trending upwards, as the PROPERTY market outlook improves and earnings will be boosted.

4. TECHNICAL ANALYSIS - Homily Chart - Breakout Above the TE Line - Long Term Investors Adding Position

Let's take a look at the 60 minutes chart of MATRIX using Homily software:

A few observations:

i. At Circle 1 - We see that red (bankers) chips are maximizing position into this counter with about 90% position taken up. This indicates long term or strong holders are buying and not short term/contra players

ii. At Circle 2 - We see that the price movement is strong above the pink trend line, indicating bullish momentum ahead

I would like to also highlight the daily chart of MATRIX as below:

A few observations:

i. From Circle 1, we can see  that since March 2020, red (bankers) chips have been consistently adding position in this counter and taking up shares from green (weak) chips 

ii. As of latest, red chips have taken up about 85% position, with balance of yellow 5%, and green 10%

iii. From Circle 2, we can see that the price has broken out above the pink trendline, indicating bullish momentum ahead as the PROPERTY sector is being stimulated by the PENJANA announcements

WILL WE SEE A LONG TERM UPTREND AGAIN IN THIS COUNTER? ONLY TIME WILL TELL.

CONCLUSION

Based on my opinion, MATRIX should be given attention in coming weeks, based on below:

i. PENJANA announcement by government to stimulate PROPERTY sector in the long run

ii. Strong balance sheet, high EPS and dividend paid quarterly without fail since FY2014

iii. EPF aggressively buying into this counter, 13.26 million shares added since January 2020
 
iv. Technical Analysis - HOMILY Chart indicating breakout above TE line, and long term investors adding position
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

Labels: MATRIX
  2 people like this.
 
Sabarudin Abu Bakar Good to buy matrix & don’t forget matrix wa only 1 sen.... prospek 5/6 sen
07/06/2020 3:04 PM
Equityengineer Convincing , their properties are value buy but still depends on how the location thrive soon.
07/06/2020 6:26 PM
sensonic Caely Holdings Bhd will make fabric protective masks and personal protective equipment (PPE) for Ni Hsin Resources Bhd. Ni Hsin also sell masks
07/06/2020 8:26 PM
greedy44444 So many good property stocks with good dividends and much higher NTA, why matrix ? Matrix-wa going to expire soon...major shareholders waiting to dispose the warrant to the greedy ikan bilis.
07/06/2020 10:40 PM
supersaiyan3 greedy44444, well said.

Matrix not bad, but already have lots of property stocks.
08/06/2020 5:00 PM

RESUMPTION OF MEGA PROJECTS, A LOT OF CABLING, TRUNKING & ELECTRICAL REQUIRED !!!

Author: Investhor   |  Publish date: Sat, 16 May 2020, 2:05 PM


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

UNITED U-LI CORPORATION BERHAD or ULICORP (Code 7133, MAIN Market, Industrial Products & Services)

Some basic info on this company:

i. Number of shares float : 217.8 million

ii. Market Cap : RM 82.76 million

iii. Last closing price : 38c

iv. ULICORP is a diversified conglomerate with 7 subsidiaries involved in different businesses, namely:

a) United U-LI (M) Sdn. Bhd. : Manufacturing of and dealing in cable support systems, intergrated ceiling systems, steel proof battens and related industrial metal products 

b) United U-LI Steel Service Centre Sdn. Bhd. : Provision of slitting and shearing services and trading of industrial hardware

c) Cable-Tray Industries (Malaysia) Sdn. Bhd. : Manufacturing of and dealing in all types of cable trunking and related industrial metal products

d) Gabung Mekar Sdn. Bhd. : Investment holding

e) United U-LI Building Materials Sdn. Bhd. : Manufacturing of and trading in integrated ceiling systems, steel roof battens and building materials

f) United U-LI Goodlite Sdn. Bhd. : Manufacturing of and trading in electrical lighting and fitting products

g) U-LI Goodlite Marketing Sdn. Bhd. : Trading in electrical lighting and fitting products

ULICORP - RESUMPTION OF MEGA PROJECTS, A LOT OF CABLING, TRUNKING & ELECTRICAL REQUIRED !!! 

1. Government Allow Resumption of Mega Construction Projects - Surge in Demand for Cabling, Trunking and Electrical Fittings

Refer below news link. Basically government is allowing mega projects like ECRL, MRT2, LRT3 and few others to resume construction

https://themalaysianreserve.com/2020/04/28/major-construction-projects-resume-following-mitis-greenlight/

Also, there is news from The Edge Weekly (refer image below) that KL-Singapore High Speed Rail (HSR) project which was suspended in mid-2018, might be revived soon as talks with Singapore like to commence soon.

Based on this, ULICORP shall be seeing demand very soon in its cabling, trunking & electrical fittings & lighting divisions, as these big projects span lengths of THOUSAND of KILOMETRES and require a lot of these products.

When news of HSR & other mega projects were hot during May 2019, that time ULICORP had hit a high price of 80c on the back of high trading volume. The current price of 38c is a very big discount compared to this 52 weeks high price of 80c.

2. Very Strong Balance Sheet - High Assets Versus Low Liabilities

Take a look at ULICORP balance sheet as per the latest FEB2020 QR. A few key points to note:

i. Total NTA stood at RM 1.31

ii. Total cash position of RM 65.9 mil this year compared to RM 44.2 mil last year similar quarter. This translates to cash per share of 30c per share (current trading price is 38c per share which means cash position is 79%)

iii. Very high total assets of RM 362.7 million versus liabilities of RM 76.8 million. This comparison itself shows how strong the company asset is and right now is considered a NET CASH company.

Even as a takeover target by itself, would be very lucrative, as the new owner would be inheriting a lot more assets compared to liabilities of the company. 

3. Many FUNDS Are Inside ULICORP Compared To Retailers - This Indicates A Long Term Confidence in the Company

Below the latest shareholdings as of latest Annual Report 2018. The 2019 report is still not yet out.

As we can see, there are more than 5 types of funds holding shares of ULICORP. To name some of the big ones:

i. Yeoman 3-Rights Value Asia Funds : 9.5 million shares (4.36%)

ii. Eastspring Investments Small Cap Fund : 6.988 million shares (3.21%)

iii. RHB Kidsave Trust : 4.396 million (2.02%)

and many more like EPF-PHEIM, RHB Private Fund - Series 3, KWAP, Tokio Marine.

With a variety of funds inside this counter, indicating that it is more of a value and long term investment equity. This also means, that there are less likely to be sellers when the price is trending upwards, as these funds tend to hold on to share even though price moved up, as compared to retailers.

Also, the biggest major shareholder is Tan Sri Dato' Wira Lee Yoon Wah with 87.4 million shares (40%) who is the Group MD/CEO.

4. TECHNICAL ANALYSIS - Homily Chart - Breakout Above the TE Line - Long Term Investors Adding Position

Let's take a look at the 60 minute chart of ULICORP using Homily software:

A few observations:

i. At Circle 1 - Price has broken above the trendline at 36c, indicating that bullish momentum is seen moving forward

ii. At Circle 2 - we can see that previously, there were no red chips in the counter. However, recently, red and yellow chips have increased while green chips reduced. This indicates that most of the weak sellers have exited and stronger buyers are taking over 

iii. This price breakout is accompanied by increase in volume which means healthy trading momentum. Volume at closing of last Friday, 15/5 was 2.8 million shares

I would like to also highlight the monthly chart of ULICORP as below:

A few observations:

i. From Circle 1, it can be seen that ULICORP was trading at historical high of RM 4.57 in 2016, as their earnings per share was 21.5c at that year (20 X PE Ratio)

ii. As earnings continue to deteriorate, the share price tended to drift downwards for a few years, with the bottom hit recently in March 2020 at 23c, as the company recorded a slight loss

iii. From Circle 2, we can see super high volume trading in 2019 on the prospects of HSR and other mega projects. The price continued to go down as US-China trade war took a toll on global markets

iv. The COVID19 outbreak, another black swan event, had caused prices to hit low of 23c in March 2020. However, we notice that the volume of selling was not as high. From Circle 3, we see that volumes of buyers are starting to support the price to what it is now.

WILL WE SEE A LONG TERM UPTREND AGAIN IN THIS COUNTER? ONLY TIME WILL TELL. NO ONE KNOWS.

CONCLUSION

Based on my opinion, ULICORP should be given attention in coming weeks, based on below:

i Resumption of mega projects, to cause surge in ULICORP products namely cabling, trunking, electrical fittings and lighting

ii. Strong balance sheet, high NTA RM 1.31, high assets versus low liabilities

iii. Many unit trust funds inside this counter, indicating value type long term investment
 
iv. Technical Analysis - HOMILY Chart indicating breakout above TE line, and long term investors adding position
 

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

Labels: ULICORP
  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Earn MQ Points while trading with MQ Traders Group
MQ Affiliate
Earn side income from MQ Affiliate Program
 
 

339  425  613  1070 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 IRIS 0.295-0.01 
 DGSB 0.20+0.015 
 DAYA 0.015+0.005 
 KGROUP-OR 0.005-0.005 
 MLAB 0.0250.00 
 DSONIC-WA 0.260.00 
 ESCERAM 0.755+0.025 
 QES 0.315+0.015 
 SENDAI-WA 0.10+0.095 
 HIAPTEK 0.21+0.01 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
PARTNERS & BROKERS