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Louis Yap Investment

Author: LouisYap   |   Latest post: Wed, 4 Dec 2019, 10:19 AM

 

Details of BAUTO (5248) -AGM 2019

Author: LouisYap   |  Publish date: Wed, 4 Dec 2019, 10:19 AM


[Details of BAUTO (5248) -AGM]

 

 

 


1)
Q: It was mentioned in the annual report that Mazda Motor Corporation (MMC) had the highest market share and sales volume in 2018. What is the market share in 2018 compared to 2017?

A: It was 1.7% in 2017 and 2.7% in 2018.

 



2)
Q: Does management expect a higher market share in 2019?

A: Management expects the situation in 2019 to be more challenging, but management is still optimistic that the Mazda CX-8, Mazda CX-30 and the new and popular Mazda CX-5 launched in Malaysia in Q4 2019— With 2.5L Turbo, we can overcome the challenges ahead

 



3)
Q: How much is the sales volume overseas? What's the outlook for this?

A: Our Philippines subsidiary (BAP) sold 5,107 and 3,581 units in 2017 and 2018, respectively.

Sales in the Philippines were affected by the local TRAIN law implemented in January 2018. As a result, consumers need pay excise taxes to buy cars, and car demand has been reduced. However, this TRAIN law brings benefits to the commercial vehicle industry because these commercial vehicles are tax-free. BAP will use this to launch the Mazda BT-50 next year. After strengthening BAP brand, dealer support and newly launched model, BAP's turnover and profit are expected to improve.

 




4)
Q: Is the company's current number of branches and dealer centers sufficient for sales and after-sales services? What's next for this?

A: We believe that the current number of branches and dealer centers is sufficient to meet the current market demand in Malaysia. However, the Group will continue to strengthen the dealer network and our brand. At the same time, we will seize the opportunity to expand our coverage, especially in some small cities, and increase our car sales.

 



5)
Q: What is the current production capacity and utilization rate of Mazda Malaysia Sdn Bhd (MMSB) at the Inokom plant?

 

A: MMSB has a production capacity of 20,000 vehicles per year at the Inokom plant and can add another 10,000 vehicles per year if needed. The utilization rate from July 1, 2018 to June 30, 2019 was approximately 22,000 vehicles.

 



6)
Q: What is the current production capacity and utilization rate of Inokom?

A: Inokom Corporation Sdn Bhd ’s parts factory currently has a production capacity of 40,000 units per year. Its usage rate is about 37,000 vehicles.

 



7)
Q: Will there be more dividends in the future?

A: The dividend payout ratio depends on the company's profitability. In the coming year, we hope to give at least 70 to 80% of our profits as dividends, and we will continue to pay considerable dividends based on the company's earnings.

 



8)
Q: Has Mazda Malaysia Sdn Bhd distributed dividends to Bermaz?

A: They have a lot of cash, but they would rather reduce their own internal cash to fund more of our projects and expansion costs, rather than on Bermaz Auto's accounts. Any expansion, they are spending, not us, so that we can pay dividends to shareholders.



9)
Q: Is Mazda Malaysia Sdn Bhd currently raising funds with shareholders?

A: Our initial investment in Mazda Malaysia Sdn Bhd was RM 85 million, representing 30% of its shares. No new funding is currently planned.

 
 

 

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LIONIND (4235) - AGM 2019 Details

Author: LouisYap   |  Publish date: Tue, 3 Dec 2019, 3:07 PM


[LIONIND (4235) - AGM 2019 Details]

 

 

 


Lion Industries Corp. Bhd. Is a company primarily engaged in the steel business. In addition to the steel industry, LIONIND also conducting other businesses. Here is the summary of the business.

Steel Business:
Klang (Amsteel Mills Sdn Bhd)
Banting (Amsteel Mills Sdn Bhd)
Johor (Antara Steel Mills Sdn Bhd)
Labuan (Antara Steel Mills Sdn Bhd)

Building Materials Business:
Lion Forest Industries Berhad (74%)

Other Business:
Petroleum Lubricants and Automotive Products (74%)
Parkson Holding Berhad (28%)

Q&A Time:


 

Q1: On page 61 of the annual report, the company's turnover has fallen. Why did other expenses increase from RM 85mil to RM 127mil last year?

 

A1: In 2019, steel prices have fallen by 20%, hence the company's needs to be adjusted appropriately. And we have Stock Written Down of about RM 50mil last year.

 


 

Q2: I see Trade Receivable has RM 721mil impairment. What happened? Can the amount of RM 721mil be recovered?

 

A2: This is about MegaSteel. Currently MegaSteel has been doing debt restructuring. After the debt restructuring, we will receive a part of the fund.

 


 

Q3: Do you think company will perform better on next year?

 

A3: Most steel companies are not doing well, mainly because of the economic and real estate downturn. We hope that real estate and infrastructure projects will continue to improve in the future. And on top of that, we are also facing many fierce competition, such as Alliance Steel.

 

We have also discussed the state of the steel industry with the government, and the government knows the steel industry situation. At present, Malaysia's steel production is 12mil mt, but in fact the steel utilisation rate is about 4.4mil mt. The excessive output has led to low steel prices.

 


 

Q4: Why does Sales go down, but Purchase goes up? Does the company do any hedging?

 

A4: We purchase the same amount of raw materials as previous year, but the material price has increased, moreover it is in USD. USD appreciation has a certain cost impact on us. The company did not do any hedging.

 


 

Q5: The company has cash in hand, why not pay dividends?

 

A5: Under the Companies Act 2016, we are unable to pay dividends. This is because the company is not making money.

 


 

Q6: Since Parkson has been losing money, why not sell it?

 

A6: As far as we know, Parkson is already in transition. Their business in China has grown a lot. We believe there is hope in the future.

 




Team Opinion:

LIONIND's loss in profit last year was mainly due to price falling in steel and rising in raw materials cost. With the current tough operating environment, the demand of real estate and infrastructure industries still remain low. It seems that the management has difficulties to change the situation and make the company perform better.

 

In order to make the company profitable, management will look into other business opportunities, and hoping to reverse the current difficulties. As for the plant bought for Flat Steel, this acquisition also has to wait a year before it can begin to contribute to profitability, and it must produce 50% of its output before it starts to be profitable.

 

According to the management, the China-US trade war has caused Chinese steel manufacturers to sell steel across Asia Pacific, and in which the steel prices remain volatile in Malaysia. Although Malaysia has a Safe Guard Tax (Tax for Local Businesses), it doesn't help much for Steel industry.

 

 

Louis Yap

Facebook:

https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

Labels: LIONIND

Details of PADINI (7052) - AGM 2019

Author: LouisYap   |  Publish date: Mon, 2 Dec 2019, 12:42 PM


[Details of PADINI (7052) - AGM]

 

 

 


Padini Holdings Berhad ("Padini") was established in 1975. Prior to that, the company provided production services to clothing retailers and wholesalers.

The company is engaged in the apparel industry and has more than 10 brands, such as Padini, Seed, Padini Authentics, PDI, P & Co, Vincci, Vincci Accessories, Vincci Mini, Miki kids and Brands outlet. Each brand represents a unique design concept to meet the needs of consumer of all level of ages and gender.

The company's main products are clothing, shoes and accessories. This business is conducted domestically and abroad, but the main turnover and profit coming from domestic. The company sells products through stores, consignment counters and as well as online platforms (www.padini.com).

Their business accounts for most of the company's turnover, and sales volume is impacted by events and festivals season, such as public holidays, school holidays and store promotions. And, the company's sales volume will be higher than usual. In addition, almost all the businesses transaction is dealing with cash sales, hence the company's having strong cash flow!

Over the past 5 years, Padini's turnover has continued to rise and grows averagely at 18% annually

Earnings before taxes also rose steadily with turnover, except for fiscal 2015, the gross profit has fell by 3%, partly because of GST started on Apr 2015, but the product price remained the same.

After the GST started, the stock price fell to around RM1.26. But the impact of GST is only for temporarily, and consumers still need to buy clothing under any circumstances. Therefore, the company gradually recovered shortly after the GST, and even higher turnover directly boosted the company's after-tax profit.

In fiscal year 2019, only 145.9m of pre-tax earnings were registered in total 3 quarters. This is because of the "Eid Mubarak" and "National 4-Day Special Promotion" falling in 4Q 2018 and making the turnover down in 1Q 2019. And on top of that, the higher staff costs, rented, and the cost of running stores also led Padini to experience lower pre-tax earnings.

In order to learn more about Padini, we also deliberately attended the annual shareholders meeting. The following is a question and answer session during the shareholders meeting.
 


Q1: In FY2019's annual report, each subsidiary recorded lower pre-tax profit margins. What is the company's profit outlook for FY2020?

 

A1: We believe FY2020 will be another profitable year. The 2020 Budget is favorable to consumers. The government intends to increase employment opportunities and benefits for low-income people.
 


Q2: The RMB against the ringgit has been depreciating from April to September this year, from 1 RMB to RM 0.618 to 1 RMB to RM 0.586, and most of the supply of PADINI comes from China, which will be good for PADINI's profit

 

A2: The depreciation of the RMB was initially benefit to lower down our costs, but because of the SST was introduced in September 2018, it has been offset the overall cost saving, and the cost now actually has increased slightly.
 


Q3: The company has 10 overseas branches across in Cambodia and Thailand. How are all these overseas branches performing?

 

A3: The company's own overseas branches accounted for 2.4% of the consolidated turnover. Cambodia started operations in FY2018. There are total 3 stores in Cambodia, and all of these stores are making profit, but low in profit margin than Malaysia. The seven small stores in Thailand have just started operations at the end of 2018 and at the early stages.
 


Q4: Since FY2017, although PADINI's turnover is still growing, the number of stores has declined. Will the company continue to expand the number of stores?

 

A4: The fashion industry is dynamic, fast-changing and competitive. We believe that we need to focus on brand building. We will be focusing more on launching diversified and affordable fashion products to market. For example, we will cooperate with Disney to do cross over branding, create functional textiles and clothing, such as: fitness wear, inner wear, etc. to add value and novelty to the brand.

 

We will not set a goal to open several stores, we will be vigilant and agile about the market, we will open new stores when there is a suitable location
 


Q5: The company's Gross Profit Margin has fallen from 41.0% in FY2018 to 39.1% in FY2019. What will the company do?

 

A5: As long as the company's Gross Profit Margin stays between 39% and 42%, it is still consider at healthy level. It will fluctuate, but if it is within this range, it is not an issue.
 


Q6: I noticed that PADINI has started to enter the second-tier cities. How is the performance?

 

A6: Branches in second-tier cities are profitable and perform well. Gross profit margins are in the range of 39% -41%. Revenue accounts for 20% of total revenue.
 


Q7: What does “fit out contributions” mean in the Chair ’s Statement of the annual report?

 

A7: This is a one-time off income. When we enter to a new mall, the mall management will provide some subsidies.
 


Q8: PADINI is a fashion industry. How do you define fashion?

 

A8: We have our own designer team, they will do a lot of research and data collection. But we will not just following the "fashion" trend, but ignore on the taste needs of Malaysians.

 


 

Team Opinion:
The entire shareholders' meeting went very smooth, and the shareholders did not have any dissatisfaction. The only incident that asked more was Dividend Pay-out. According to management, even if the company makes profit, they have no intention to increase dividend payout. This is because to reserve more cash on hand, and this will become a strong asset for the company on supplier partnering, as supplier will consider company asset and liabilities for future business partnership.

Cambodian stores are in profitable and plans to open up a 4th branch. The Thailand branch has only been operate for half a year and it used to be operate partnering with a local company, but now it is completely running by itself. Indonesia is now partnering with a local company, and considering to run the store by them self. GP Margin is usually standing at 39-41%.
.
Although online shopping is in the trend right now, Padini has started to prepare on his own website. And currently is working together with Zalora, Lazada, but the profit is still low.
.
Guan Yingjie emphasized that "doing business must meet market demand, create value for customers, and then be profitable." Long-term holding is not a problem, but MFRS 16, changing in new accountant term will impact them in profit at the short term.

 

Louis Yap

Facebook:

https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

Labels: PADINI
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Solarvest (0215) -IPO shares

Author: LouisYap   |  Publish date: Fri, 29 Nov 2019, 12:59 PM


[Solarvest (0215) -IPO shares]

 


Solarvest Holdings Berhad is a holding company that provides engineering, procurement, construction, commissioning, management, and operation and maintenance services for solar projects through its subsidiaries.


The Solarvest IPO stock price was RM 0.35, and the market opened at RM 0.60 on the first day, which is an amazing increase. As of today, Solarvest's share price closed at RM 0.795 (a 127% increase) with a market capitalization of RM 390mil.


With the performance of the past few years, the company's growth rate is amazing.

Turnover / Net profit margin
2019: RM112.201 mil / 9.9%
2018: RM45.069 mil / 18.3%
2017: RM39.009 mil / 16.7%
2016: RM35.286 mil / 11.8%

Solarvest will spend the funds raised in the listing

  • Business expansion: 8.7%
  • Capital expenditure: 11.5%
  • Working capital: 55.5%
  • Repayment debt: 14.5%
  • Listing costs: 9.8%


Business Distribution:
Solarvest's business is distributed in Investment Holding, EPCC of Solar energy solution, O & M of solar energy system, Sales of electricity through solar energy

At present Solarvest's largest business comes from EPCC of Solar Energy Solution, about RM 142.6mil and with profit RM 9.8mil

The solar photovoltaic industry is still optimistic in Malaysia, coupled with the government's support for solar energy, it even sets 20% of its electricity from solar energy.

In 2018, Solar Pv's capacity in Malaysia was 438MWp. 2023 target is 3,322MW

Solarvest will continue to bid for new contracts to increase the company's orders. At present, the unbilled order is RM 184.5m, which will provide profit for the company in FY2020 & FY2021.

 

Louis Yap

Facebook:

https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

Labels: SLVEST
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IRIS (0010) 2Q 2020 Results

Author: LouisYap   |  Publish date: Thu, 28 Nov 2019, 11:09 AM


[IRIS (0010) 2Q 2020 Results]

 

 

 

 

Founded in 1994, IRIS Corporation Berhad (ACE Market: IRIS) is an MSC-status technology innovator and leading provider of Trusted Identification products and solutions. Since pioneering the world’s first ePassport in 1998, IRIS has set itself apart as a dedicated end-to-end integrated solutions provider for eID, ePassport, Automated Border Control (ABC), multiple credential identity management ecosystems, and payment systems for financial and transportation industries where authenticity, improved security, speed, accuracy and effectiveness are of paramount importance. As an established player in Trusted Identification, IRIS has significant international presence in over 34 countries where we provide unrivalled service.

 

IRIS recorded a turnover of RM 72mil, which is about same revenue compare with previous quarter. As for the profit, it was registered at RM 10mil, compared with RM 9.3mil previous quarter.

 

IRIS recorded a one-time profit of RM 5.4m in 1Q 2020, and this profit was related to the sale of IRIS Land (PNG) Limited.

 

As for 2Q 2020, IRIS also has a one-time profit. The company reversed the employee expense of RM 5.3m previously recorded this quarter. After deducting these one-time gains, the company is making progress.

 

The company expects to continue to generate revenue from Africa, Asia Pacific and North America. The company will also strengthen its core business to face a competitive market.

 

The IRIS Management believes that the company performance will be optimistic in the coming next 2 quarters.

 

AGM details:
The company is currently bidding for IIS (Integration Immigration System), with total 34 companies have already tendered. And all these companies are from big to SME companies, where some companies are doing for foreign student cards or foreign labor systems.

 

Over the past 3-4 years, the company's performance is having bad shape of revenue and profit. And recent year, IRIS has replaced a new batch of management. And since then IRIS has stopped losing profit from non-core business.

 

We can see that the new management team has the intention to turnaround for company business and turn the business into positive profit. Through AGM inquiries, we also know that there will not be any significant impairment soon.

 

Louis Yap

Facebook:

https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

Labels: IRIS
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speakup good or bad results no matter. will down also
tengok redtone. tengok knm
29/11/2019 12:27 PM

LayHong 2Q2020 results finally released!

Author: LouisYap   |  Publish date: Wed, 27 Nov 2019, 11:09 AM


[ LayHong 2Q2020 results finally released! 】

 

 

 

The company recorded a turnover of RM 216.7m, but its net profit was only RM 1.1m.

 

Compared with the same period last year, earnings increased by 110%, but compared with the previous quarter, it fell by 71%.

 

The decline in earnings was mainly due to a one-time loss of RM 2m during this quarter.

 

If taking away the one-time loss of RM 2m, LayHong actual earning is RM 3.1m. Regardless, earnings are still down nearly 20%

 

The decline in profits is due to higher operating costs, such as transportation, advertising and promotional expenses

 

According to the quarterly report, management revealed that egg production at Sabah's farm will return to normal. The challenges facing Johor's new liquid egg plant have been resolved and the plant is now ready for commercial production. Estimated turnover of about RM 2.1m per month.

 

As for a 49% joint venture with Japan's NH Foods Ltd., the company's plan is proceeding smoothly as planned and will soon to be in towards commercial production.

 

In additonal, LayHong has only 49% equity, so the turnover of the joint venture company will not be entry to LayHong's account, but will show a line of "share of profit of JV"

 

About 15% of the eggs exported by LayHong are sold to Singapore. HongKong is relatively small. As for China, LayHong is unable to compete with local suppliers, so it does not export to China.

 

The Klang Valley market is saturated, so management will begin to expand markets on the East Coast, such as Kuantan. LayHong will also launch new products, with the lower price, as the company awaiting for the market response on the new product.

 

In addition, the company will gradually no longer deal with dealers, because this will lower down their profits. LayHong will be focusing on the products to sell directly to customers. This plan will be in plan to complete within 6 months.

 

 
 

 

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HerbertChua very low quality analysis
27/11/2019 11:21 AM
kingcobra at least much better than your analysis and those stupid and fake info
27/11/2019 12:02 PM
HerbertChua this analysis is like cobra analysis

much worst than buaya analysis
27/11/2019 12:13 PM
HerbertChua what is Louis Yap track record? Suddenly come out of no where and pretend like a sifu
27/11/2019 12:14 PM
Fabien "The Efficient Capital Allocater" so far i read are all positive bias.

what about the negative factors? the risks involved?
27/11/2019 1:57 PM
HerbertChua Fabien - Louis Yap only write positive bias things because he living in fantasy not reality
27/11/2019 1:58 PM
GTMS telur busuk...
27/11/2019 2:06 PM
ming Prospect still good la.. as new source income no yet reflect

but they cant control egg price/usd/feed cost., No hedging strategy?

+ Boss personality : selling warrants when they know the qr !
27/11/2019 2:09 PM
leong87654321 Share price is very low, still loosing. Shareholders suffer !!!!!
28/11/2019 10:59 AM
funnyguyz HerbertChua....Then can you let us know who are....you are also pretending that you are sifu...

Don;t just criticize, but not giving any value
and your analysis i also don;t see any value too.....
28/11/2019 11:16 AM


 

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