HI ALL, I AM PHILIP HERE. THIS IS MY FIRST PUMP AND DUMP ARTICLE. HOPE YOU CAN JOIN IN AND WE CARI CARI MAKAN TOGETHER. CUN CUN CALL BY PHILIPTANGRAIDING RESEARCH GROUP UNLIMITED POWER UP TRADERS.

Firstly, lets set the stage:

So firstly some business sense. What does this company do? Public Packages Holdings Berhad is a simple, straightforward boring company that does 140 million in yearly sales producing carton boxes and packages for their customers. It is very simple, traditional boring business. As a simple straigfhtforward busines, it has expanded into phillipines and indonesia, with growing success. It is slowly diversifying as many local companies do into property, with a new hotel completing in 2019 and some other minor properties on the way to increase its profit margins. But on the whole business is slowly growing, with very low risk as their cash is more than their debt, and very low risk of nasty surprises (bar risk of fire in their plants and signficiant amortization of manufacturing assets).

I love basic simple businesses. Although I try to find simple businesses run by incredible management, sometimes undervalued plays and assets also can make money mah! As long as fullfill WB first rule, never lose money!

Now, what do you get when you buy this company today right now at RM0.49 28 january 2019:

1. A cyclical that historically does well in the 4th quarter ( christmas time mah! Season of giving and box opening.) guaranteed to have good earnings and revenues in DEC. This will do well for maket confidence. Timing cun cun call lor! Got technical indicator mah. Sure can goreng for 1 quarter one!

2.  A company that is now worth below 92 million in market cap, but has a net profit of 15 million in 2017 ( and looking at 18 million in net profit in 2018), a PE of 5.1 and growing!

3. A company that has a net assets per share of 1.14. NTA 1.14, selling at RM0.49. It has cash more than its debt, making sure that it can pay all its debt if needed. Meaning even if terminal growth is zero, you can sleep well at night. Knowing this stock will never drop lower. All it needs now is to pay out some dividend, then stock can fly like rocket lor!

4. Did the share price really go down? The graph looks like it did right? No, share price did not drop. What happened was a bonus shares giving out which they say was rewarding shareholders, but actually is just rephrasing a room from SQM to SQFT. If you have 100 million shares outstanding today, and 190 million shares outstanding tomorrow, sure the price will drop to reflect mah. This is because the dilution is faster than the market confidence. But ask yourself, if you can pay 92 million for a company that gives you 15 million in profit every year with free monies in the bank (RM58,414,000 cash & cash equivalent) and only (RM38,455,000) in debt, meaning you get free and clear 20 million in cash, so you can buy the whole company for 72 million and collect 15 million every year. After 5 years if the company dont grow at all (like zero growth), whole company become yours. BUT WAIT: STILL GOT ASSETS MAH. MANUFACTURING BUSINESS MANA TAU YOU WANT TO SELL EVERYTHING AND BUY INSAS LEH? CLOSE SHOP ALSO CAN MAKE MONEY. ASK WARREN BUFFETT WHY HE BUY BERKSHIRE LAST TIME? HE FOUND OUT EVERY TIME CLOSE FACTORY SURE MAKE MONEY. WHY?>>>>

5. Look at their property and land values. Does the value, revaluation date of 2007 and the leashold period make sense to you? Property leasehold can renew mah, even if sell the value also sure up right? (calvin tan best method)

LIST OF PROPERTIES OWNED BY PUBLIC PACKAGES HOLDINGS BERHAD AND ITS SUBSIDIARIES AS AT 31 DECEMBER 2017  <<< JUST SOME OFTHEIR PROPERTIES, CAN LOOK AT FULL LIST FROM 2017 ANNUAL REPORT.

Location Title Existing Use Date of Last Revaluation Age of Building (years) Land area / Built-up area (sq.feet) Carrying Amount as at 31.12.17 RM

Plot 72 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 2.10.2047 Factory building 28.11.2007 27 22,509 / 11,516 RM1,185,150

Plot 96(A) Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 22.5.2050 Factory building 28.11.2007 27 32,356 / 5,688 RM1,477,049

Plot 96(B) Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 5.7.2054 Factory building 28.11.2007 20 16,985 / 9,979 RM522,564

Plot 67 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 14.8.2047 Factory and office building 28.11.2007 28 44,083 / 94,249 RM2,722,212

Plot 116 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 18.10.2055 Factory and office building 28.11.2007 22 84,183 / 7,317    RM2,146,517

Just look at those figures, do they make sense to you?

6. Another reason to buy: the owner owns more than 44% of the business. He not stingy like insas say cannot buy this cannot buy that la wtf. He say follow general philip! IF BUSINESS DO WELL, WE ALL DO WELL. IF BUSINESS DONT DO WELL, SOLI LO I DO SHARE PLACEMENT DILUTE MY OWN SHARE HUHUBUKUBKU. So far I trust him la. Why trust leh? This is because he grow shareholder equity from 100 million in net worth to 220 million in networth from 2009 - 2019.

WHY MUST PUNISH TURTLE FOR SLOW GROWTH LEH, HE NEVER LET YOU DOWN LEH. HE GOT LOSE MONEY FOR YOU? NO LEH. HE GOT MAKE YOU NOT SLEEP AT NIGHT MEH? NO LEH. SO WHY MUST PUNISH BORING BUSINESS THAT IS GROWING (SLOWLY) BUT EVERY YEAR GOT MONIES COMING IN? GOOD MANAGEMENT IN BAD INDUSTRY ONLY MAH, BUT IS IT SUNSET? NO LA OF COURSE NOT, PACKAGIN FOREVER PEOPLE WANT TO USE MAH. WHY SCARED LEH?

In summary:

pleased buy this stockz. not because I dont want to buy la, but because I think is good deal long term la. (like raider say huat huat ah!)

Disclosure: my wife is a shareholder. Also my brother in law working here lo. Sure win one. TRUST. no nasty surprise one. wont suddenly no one buy carton box or sales drop crazy. online shoppingg also need carton box. pleased. 

Hope you learned something,

Philip

P.S. at this price, is below undervalued. its like sipadan deep diving value. If the price can drop below 60 million market cap, I will personally buy the whole company myself and sell it for parts, its worth at least 100 million in parts. How I get this figure? If I use company funds to pay all borrowing and sell all properties inventories and children and wives for 50% discount, I still get (291,202,000) assets minus (87,234,000) liabilities and give 50% discount hot sales. Free 40 million, where to find?