Highlights

TradeVSA - Case Study

Author: TradeVSA   |   Latest post: Mon, 6 Jan 2020, 3:21 PM

 

KLSE Top 3 Plantation Stocks You Must Know Before Investing & Why Investor/Traders must have these related stocks in their portfolio ?

Author: TradeVSA   |  Publish date: Mon, 6 Jan 2020, 3:21 PM


The plantation sector is off to a good start in 2020 as FCPO continues to extend its uptrend prices from 2019 to trade above RM3,100 per tonne on strong fundamentals.

We expected to last till the second quarter of 2020, supported by reducing FCPO inventories and declining stocks but more importantly the biodiesel usage B30/B20 respectively in Indonesia and Malaysia.

Malaysian’s Plantation sector is one of the biggest contributor to Malaysia’s GDP Growth. Responsible for providing 1/3 of employment to Malaysia worker, plantation stocks have seen volatility where back in Aug 2019 and now achieving almost 3 year high. Back in Aug 2019, TradeVSA make a forecast that at FCPO price @ RM 2,200, it was the lowest point before it began to rally to new high RM3,100. The reason for the bottoming of FCPO was a technical double bottom at support.

Let’s look into 3 good plantation stocks that has potentials. We look at the entire KLSE sectorial analysis to see why Plantation sector being the most dominant over other like technology and energy.

 

TradeVSA Sector Analysis

 

In our TradeVSA KLSE Sector screener, we can easily select top three counter doing fairly well from the technical aspects of Volume Spread Analysis (TradeVSA method). In addition, with our toolkit colour coded for ease of stock selection,(eg. Green with Purple cells is preferred), we have them “bubbled to the top” for quick investor/trader reference.

 

TradeVSA KLSE Sector Screener – Plantations

 

KLSE Sector Screener for Plantation shown currently lots of counters is in the uptrend and likely forming re-accumulation stage. In this article, we will focus Top 3 Plantation counters from the TradeVSA screener above.

 

  1. Rimbunan Sawit
  2. Jaya Tiasa
  3. TDM Bhd

 

Rimbunan Sawit (5113.KL)

Background

Listed in June 2006, Rimbunan Sawit is principally an investment holding company while its subsidiaries are involved in the cultivation of oil palm, processing of palm oil and other ancillary activities.

 

RSawit has embarked on an acquisition trail to expand its plantation landbank, particularly in Sarawak since 2008. RSawit acquired 85% equity interest in two companies, Baram Trading and Nescaya Palma, which owned in total 6,911 ha of plantation land in Sarawak, out of which 4,947 ha were already planted with oil palm. Following the completion of the acquisitions in March 2008, Rsawit's plantation landbank was increased to 20,574 ha. In December 2009, RSawit acquired of two companies (Lumiera Enterprise and Woodijaya) located in Miri Division, Sarawak. The acquisitions thus increased R Sawit's total plantation landbank to 31,645 ha.

In September 2010, RSawit acquired equity interests (varying between 60% to 100%) in 9 plantation companies and the commercial rights of a plantation estate (Simunjan). Following these acquisitions, the group owned 91,500 ha of plantation landbank in Sarawak; out of which about 39,560 ha were planted, 38,000 ha were unplanted and to be developed later, and the balance 13,940 ha were unplantable and/or to be used for other purposes.

However, at the end of 2011, the group acquired oil palm planted land in Niah, Sarawak; and this was followed by the acquisition of another land in the Melinau Area in Sarawak in November 2012. This has thus lifted its plantation landbank to 92,312 ha.

 

Known Major Shareholder(s) (As at 1st Apr 2019)

56.90 % Tan Sri Datuk Sir Diong Hiew King*

5.36 % State Financial Secretary

 

* Direct & indirect interest

 

A Quick Fundamental View for Rimbunan Sawit:

Fundamental for RSAWIT[s] (5113).

FA Ratings : N/A

 

  1. PE = -4.12
  2. ROE = -31.83 %
  3. DIY = 0.00 %
  4. Mkt Cap: 539.0M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Profitability Analysis

 

TradeVSA Weekly & Daily Chart

Weekly TradeVSA chart show a strong breakout with high volume. The last shakeout happened in the accumulation before Smart Money pushes the price above resistance. Notice the green pentagon in Mid of November show a great interest by Smart Money to at support level. Currently price is pulling back after we spotted the Up-Thrust bar with high volume. Looks for the next Sign of Strength bar to look for potential entry.

 

A huge pullback happened after the mark-up stage since end of October. Notice price reverse with No Supply (NS) signal show Smart Money is flushing out weakhand holders. Pullback completed with NS signal and mark-up stage will continue.

 

Another red pentagon appeared in the Mark-Up stage which likely to form a pullback pattern. You can trade with the next green pentagon bar / signal similar on 16 December 2019.

 

Jaya Tiasa (4383.KL)

Background

Formerly known as Berjaya Textiles, the company became known as Jaya Tiasa in March. Jaya Tiasa through its subsidiaries, is engaged in the development of oil palm plantations and related activities. The Company's segments are Logs Trading, Manufacturing, Oil Palm and Others. The Logs Trading segment is engaged in extraction and sales of logs and development of planted forests. The Manufacturing segment is engaged in manufacturing and trading of sawn timber, plywood, veneer, blockboard and laminated wood. The Oil Palm segment is engaged in the development of oil palm plantations and its related activities. The Others segment is engaged in the provision of air transportation services and investment holding. It manufactures a range of products, including Round Logs, Sawntimber and Film overlay plywood. Jaya Tiasa exports its processed wood products to various markets, including Asia Pacific, Middle East, Europe and Latin America.

 

Known Major Shareholder(s) (As at 30th Sep 2019)

30.18 % Tan Sri Datuk Sir Tiong Hiew King*

9.41 % Genine Chain Ltd

5.21 % Amanas Sdn Bhd

 

* Direct and Indirect.

 

A Quick Fundamental View for Jaya Tiasa:

Fundamental for JTIASA[s] (4383).

FA Ratings : 1/8*

 

  1. PE = -3.88
  2. ROE = -21.95 %
  3. DIY = 0.00 %
  4. Mkt Cap: 1,012.7M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Profitability Analysis

 

TradeVSA Weekly & Daily Chart

Weekly TradeVSA chart for Jaya Tiasa show the exact similar setup with Rimbunan Sawit. Green bullish pentagon signal in Mid of September 2019 indicate support and interest by Smart Money after the Spring bar at support level. Price subsequently mark-up with high volume.

 

A similar Up-Thrust bar appeared like Rimbunan Sawit and subsequently price trying to test with narrow spread bar to support. We will look for potential strength to ensure the pullback pattern is form before looking for entry.

 

Clearer signal can be spotted in the daily chart with the help of Pentagon signal. Price moving up from accumulation stage and increase with volume. Pullback have completed with another Green Pentagon bar.

 

Notice Up-Thrust bar with high volume appeared too in daily chart indicate potential pullback is coming.

 

TDM Bhd (2054.KL)

Background

TDM is currently engaged in two core activities - oil palm plantations and healthcare.

 

The Plantation segment involves activities, such as cultivation of oil palms, sale of fresh fruit bunches and management of plantation operation services. The Healthcare segment involves activities, such as provision of healthcare consultancy and specialist medical center services. Its segments operate in approximately two geographical areas, including Malaysia and Indonesia. In Malaysia, it has operations in investment holding, cultivation of oil palms, trading of palm oil and other related products and provision of healthcare services. Other operations include provision of management services. Its operations in Indonesia are cultivation of oil palms, trading of palm oil and other related products. Its subsidiaries include TDM Plantation Sdn. Bhd. and TDM Capital Sdn. Bhd.

 

Known Major Shareholder(s) (As at 11th Apr 2019)

61.49 % Terengganu Incorporated Sdn Bhd

 

A Quick Fundamental View for TDM Bhd:

Fundamental for TDM (2054).

 

FA Ratings : 1/8*

 

  1. PE = -6.57
  2. ROE = -11.83 %
  3. DIY = 0.00 %
  4. Mkt Cap: 706.7M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Profitability Analysis

TradeVSA Weekly & Daily Chart

TDM currently is in Mark-Up stage after the Green Pentagon signal appeared on mid of November 2019. The chart movement is similar with RSawit and JTiasa which we saw a period of accumulation before break out with high volume.

 

 

Clear signals can be easier spotted too in daily TradeVSA chart for TDM. Notice in the chart, we have 2 pullback areas for potential low risk entry in the Mark-up stage. Volume increases too with Line Change indicate Smart Money are interested to mark-up higher.

 

The current chart pattern is forming another pullback again after the Up-Thrust bar.

 

Summary

After considering all the fundamental and technical aspect, we preferred JayaTiasa over TDM & RSawit. From Fundamental standpoint, there are not much difference, still losing money from last financial year.

 

RSAWIT [s]

TDM

Jaya Tiasa [s]

FA Ratings : N/A

 

PE = -4.39

ROE = -31.83 %

DIY = 0.00 %

Mkt Cap: 574.5M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Recommend Safety Margin > +40% or higher for undervalued share if negative safety margin, overvalued share.)

Watch tutorial http://bit.ly/2mpnLGx

 

For FA Ratings (Best=8*), recommend to invest at 3* and above.

FA Ratings : 1/8*

 

PE = -6.34

ROE = -11.83 %

DIY = 0.00 %

Mkt Cap: 681.5M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Recommend Safety Margin > +40% or higher for undervalued share if negative safety margin, overvalued share.)

Watch tutorial http://bit.ly/2mpnLGx

 

For FA Ratings (Best=8*), recommend to invest at 3* and above.

FA Ratings : 1/8*

 

PE = -3.92

ROE = -21.95 %

DIY = 0.00 %

Mkt Cap: 1,022.4M (RM) in Mid Cap, Plantation, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Recommend Safety Margin > +40% or higher for undervalued share if negative safety margin, overvalued share.)

Watch tutorial http://bit.ly/2mpnLGx

 

For FA Ratings (Best=8*), recommend to invest at 3* and above.

 

We will cover for technology sector next week. Let us know what sector you wish us to cover in the next article in the comment below.

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries.

Join our FREE Education via Telegram Channel: https://t.me/tradevsatradingideas

Facebook: www.facebook.com/MartinTFWong

Youtube: https://www.youtube.com/channel/UCKiafbxoa-DtTF5YP0v-HYg

 

Follow in the Telegram, Facebook and Youtube for daily update

 

 

Labels: RSAWIT, JTIASA, TDM
  rajachulan likes this.
 
calvintaneng You are so clever!
06/01/2020 3:51 PM
calvintaneng You Chun Chun on 3 plantation stocks

Next one please go study Nfcp fiberisation stocks
06/01/2020 3:52 PM
TradeVSA Thanks for the comment
06/01/2020 4:50 PM
paperplane Post removed. Why?
06/01/2020 8:58 PM
paperplane TERENGGANU INCORPORATED SDN BHD (a substantial shareholder) disposed 5,000,000 shares on 02-Jan-2020.
06/01/2020 9:02 PM
gohkimhock if you want to be shareholders of these loss-making companies, i can only wish you good luck. Dont get me wrong, i wont become envy of you if you manage to squeeze some profit from the market. 所为富贵险中求。 It is not my cup of tea. I always believe there are still many ways of making money in Bursa.
06/01/2020 10:23 PM
paperplane Honest advise from the wise man Goh
06/01/2020 11:43 PM
paperplane Some idiot admin so afraid me talking bad, must well ban me forever in i3. Tdm is damn kao lousy. And i know this comment will be deleted.

Fortuneblooming, i guess you a nooby. Stop in self denial mode. If its so damn good in cpo 3000,the company should even consider privatise it, not selling shares in open mkt, guna otak lah sikit. No wonder Malaysia mkt cant improve, too many idiots
06/01/2020 11:49 PM
06/01/2020 11:50 PM
FoolsGold @paperplane got so many lousy, loss-making ctrs , played up by promoters in Bursa.
Why personal crusade over TDM ?
07/01/2020 6:06 AM
enning22 the 3 plantations mentioned were badly managed plantations, low productivity,massive wastage of resources, just shit stocks,junk stocks. current price up just because palm oil price went up from low,giving a little bit of hope, if palm oil price sinks ,then gone with the wind.
07/01/2020 10:07 AM
speakup again stupid article! any idiot can also write such article after the fact it has shoot up

PLEASE WRITE ARTICLE BEFORE THE FACT! OTHERWISE U JUST WASTING PPL TIME!
07/01/2020 10:36 AM
speakup Why didn't u write this article when TDM was 20sen or Jtiasa was 50 sen or RSawait was 20sen?
07/01/2020 10:38 AM
calvintaneng Posted by speakup > Jan 7, 2020 10:38 AM | Report Abuse

Why didn't u write this article when TDM was 20sen or Jtiasa was 50 sen or RSawait was 20sen?

speakup is correct

Calvin wrote about TDM at 17 sen because DR Neoh Soon Kean of Dynaquest owns it
07/01/2020 10:43 AM
calvintaneng Someday

People will write about NETX, OPCOM & T7 Global
07/01/2020 10:44 AM
enning22 all these are what people called "after market talks".that is after market closed, people began to make up stories,which are all worthless.
07/01/2020 10:56 AM
rajachulan Keep up the good work Martin... appreciate the analysis...

this is an analysis... a case study... so it meant to be horse back canon lookalike...

the author has another section called trading ideas... which is forward looking...
07/01/2020 11:24 AM
TradeVSA Thanks for the comment above

Jaya Tiasa - 28 Nov 2019
https://www.tradingview.com/chart/NADIBHD/yz4IWOjd-TradeVSA-Premium-Alerts-Hourly-Chart-Setup/

RSawit - 2 Dec 2019
https://www.tradingview.com/chart/RSAWIT/eDp9z7rr/
07/01/2020 12:02 PM
UnicornP SOP + IJMPLNT + TSH
07/01/2020 1:09 PM
TradeVSA @UnicornP

Nice...forming a similar pullback pattern
07/01/2020 1:16 PM
uptrending All 3 are goreng stocks.. Intention is highly suspicious
07/01/2020 1:49 PM
TradeVSA Thank you for your comment above
07/01/2020 3:14 PM
iswara this 3 counters financial report all in red.....poor management ....short play maybe ok, keep pls don't
08/01/2020 8:02 AM
TradeVSA Yes, suitable for trading
08/01/2020 4:19 PM

KLSE Top 3 Oil & Gas Stocks You Must Know Before Investing & Why Investor/Traders must have these related stocks in their portfolio ?

Author: TradeVSA   |  Publish date: Wed, 18 Dec 2019, 11:13 AM


Malaysia’s oil and gas industry is witnessing active transformation during 2019 mild bull rally driven by local and global industry dynamics. And as such oil and gas counter have been dominated the KLSE stock exchange. Analyzing all the recent developments, emerging strategies and trends in the Malaysia oil and gas counters in the KLSE, we are looking at 3 possible good candidates to study for our oil and gas counters.

However, before we discuss the 3 good oil and gas counters, we need to look at the entire KLSE sectorial analysis to see why Energy sector @ Bursa, aka oil and gas. Firstly, we have Energy sector being the most dominant over other like technology and plantations.

As such, let’s look at them now.

 

TradeVSA Sector Analysis

 

In our TradeVSA KLSE Sector screener, we can easily select top three counter doing fairly well from the technical aspects of Volume Spread Analysis (TradeVSA method). In addition, with our toolkit colour coded for ease of stock selection,(eg. Green with Purple cells is preferred), we have them “bubbled to the top” for quick investor/trader reference.

 

TradeVSA KLSE Sector Screener – Oil & Gas

Based on the KLSE screener, we notice 3 counters in Oil & Gas are having a nice uptrend. We will discuss the 3 counters below and look for opportunities to trade based on the chart. Below are the 3 counters:

 

  1. Bumi Armada
  2. Wah Seong Corporation
  3. Dayang Enterprise

 

Bumi Armada (5210.KL)

Background

Bumi Armada (ARMADA) was formed in 1995 with two main business units, Bumi Armada Navigation and Haven, with a predominantly domestic focus. Bumi Armada Navigation, which was established in 1977, focused on the provision of vessel chartering services whilst Haven, which was set up in 1987, was an offshore construction, installation and maintenance services company. Listed in 1997 on the Main Board of the Kuala Lumpur Stock Exchange and subsequently delisted on April 2003. In 2011, ARMADA was once again listed on Bursa Malaysia, in an IPO which was the largest in the country for that year.

 

Today, ARMADA is a Malaysia based fully integrated offshore solutions provider that operates across the globe. ARMADA provides offshore services via two business units: (i) Floating Production and Operation (FPO) of oil and gas solutions and (ii) Offshore Marine Services (OMS) which comprises of Offshore Support Vessel (OSV) and Subsea Construction (SC) services.

 

Known Major Shareholder(s) (As at 29th Mar 2019)

8.56 % Amanah Saham Bumiputera

7.10 % Employees Provident Fund Board

34.89 % Objektif Bersatu Sdn Bhd+

 

Note: + Ananda Krishnan & family have interest in this.

 

A Quick Fundamental View for Bumi Armada:

FA Ratings : 1/8*

 

  1. PE = -2.88
  2. ROE = -27.95 %
  3. DIY = 0.00 %
  4. Mkt Cap: 2,791.4M (RM) in Large Cap, Energy, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

 

Profitability Analysis

 

TradeVSA Weekly & Daily Chart

TradeVSA weekly chart show the change of trend with a climatic sell-off bar at the end of November 2018. Price started to mark-up with high volume Line Change after the Buy Signal. Based on the currently chart setup, Bumi Armada likely to form a pullback pattern soon. We are looking for signal of strength to confirm the pullback is complete

 

Red Pentagon appeared once again in the daily TradeVSA chart. However, we notice the volume still low to average with a Spring bar as the current support. We will look for opportunity to trade once Green Pentagon Buy signal appear again to confirm the pullback.

 

Wah Seong Corporation (5142.KL)

Background

Wah Seong Corporation Berhad is a Malaysia-based company. The Company's segments include Oil & gas division, which is engaged in pipe coating, pipe manufacturing for the oil and gas industry, building and operating offshore/onshore field development facilities, and the provision of equipment and services to the power generation, oleochemical and petrochemical industries; Renewable energy division, which is a supplier and manufacturer of specialized equipment for biomass power plants; Industrial trading & services division, which is engaged in the trading and distribution of building materials, and the manufacturing and trading of industrial pipes; Plantation division, which is engaged in agricultural development, cultivation of oil palm and other crops, and trading of oil palm products and agriculture based products, and Others, which includes all other units within the Company.

 

Known Major Shareholder(s) (As at 29th Mar 2019)

32.99 % Wah Seong (Malaya) Trading Co. Sdn Bhd

6.98 % Tan Kim Yeow Sdn Bhd

5.38 % Midvest Asia Sdn Bhd

4.50 % Lembaga Tabung Angkatan Tentera

4.41 % Amanahraya Trustees Bhd Amanah Saham Bumiputera

 

A Quick Fundamental View for Wah Seong Corporation:

FA Ratings : 1/8*

 

  1. PE = 20.95
  2. ROE = 4.41 %
  3. DIY = 0.00 %
  4. Mkt Cap: 937.6M (RM) in Mid Cap, Energy, Main Market.

 

(3-Yrs CAGR: +16.2% p.a.)

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value @ 10% disc rate =0.25, IV @ 3.6% = 1.97, IV @ 7.5% = 0.45, IV @ 12% = 0.18,

Share is *OverValued *, Safety Margin @ 10% disc rate = -79 % (Sell !).

 

Profitability Analysis

 

TradeVSA Weekly & Daily Chart

Strong volume breaks the resistance in the weekly show price likely to test at RM1.70 soon. Currently price is pulling back to retest the temporary support however we yet to see any sign of strength. We will look for trading opportunities if there any strength.

 

Daily chart showing a similar setup where Wah Seong continue to pullback to the support with Spring. We notice red pentagon appeared indicate pullback is not complete yet. We will wait for green pentagon to appear to confirm the pullback.

 

Dayang Enterprise Holdings

Background

DAYANG is considered to be one of the largest providers of offshore platform services in Malaysia. It is principally involved in the provision of offshore topside maintenance services, minor fabrication operations, offshore hook-up and commissioning, and charter of marine vessels relating to the oil and gas industry. It owns a fleet of 8 offshore support vessels. As at the end of Sept 2019, its total orderbook stood at approximately RM2.5 bn; which are call out contracts to last at least until 2023.

 

Known Major Shareholder(s) (As at 29th Mar 2019)

26.42 % Naim Holdings Bhd

6.83 % Tengku Dato' Yusof Bin Tengku Ahmad Shahruddin

7.92 % Urusharta Jammah Sdn Bhd

6.35 % Vogue Empire Sdn Bhd

 

A Quick Fundamental View for Dayang:

FA Ratings : 6/8*

 

  1. PE = 9.29 **
  2. ROE = 17.99 % **
  3. DIY = 0.00 %
  4. Mkt Cap: 2,377.3M (RM) in Large Cap, Energy, Main Market.

 

(3-Yrs CAGR: +60.0% p.a.)

Note: [s] = Syariah, ** = Good.

@ Trading Underpriced (relative).

 

*Intrinsic Valuation Desk*

Intrinsic Value @ 10% disc rate =4.34, IV @ 3.6% = 33.45, IV @ 7.5% = 7.71, IV @ 12% = 3.01,

Share is *Undervalued *, Safety Margin @ 10% disc rate = 94 % (Buy Now !).

Target Price: 2.53 @ P/PE@ 10.5x, potential +12.9 %.

 

Profitability Analysis

 

TradeVSA Weekly & Daily Chart

Strength can be easily spotted in the re-accumulation for Dayang. During the re-accumulation, we notice there is a shakeout with buy signal pushes the price back to re-accumulation. Another buy signal appeared on 6 September 2019 to push the price above resistance and change the trend to Mark-Up stage.

 

Price continue to mark-up with several pullback. Looks for the next pullback to trade with low risk.

 

Summary

After considering all the fundamental and technical aspect, we preferred Dayang over Bumi Armada and Wah Seong. With a fundamental target price @ RM2.53, we see a potential of +6.5% for Dayang. However, if you are trading on a technical aspect of TradeVSA, medium target profit @ RM2.70.

 

Bumi Armada

Wah Seong [s]

Dayang [s]

FA Ratings : 1/8*

 

  1. PE = -2.88
  2. ROE = -27.95 %
  3. DIY = 0.00 %
  4. Mkt Cap: 2,791.4M (RM) in Large Cap, Energy, Main Market.

 

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

 

Intrinsic Value cannot be calculated as EPS is negative! This company is loss-making currently! Please check other indicators too.

FA Ratings : 1/8*

 

  1. PE = 20.95
  2. ROE = 4.41 %
  3. DIY = 0.00 %
  4. Mkt Cap: 937.6M (RM) in Mid Cap, Energy, Main Market.

 

(3-Yrs CAGR: +16.2% p.a.)

Note: [s] = Syariah, ** = Good.

@ Trading at Overpriced (relative).

 

*Intrinsic Valuation Desk*

 

Intrinsic Value @ 10% disc rate =0.25, IV @ 3.6% = 1.97, IV @ 7.5% = 0.45, IV @ 12% = 0.18,

Share is *OverValued *, Safety Margin @ 10% disc rate = -79 % (Sell !).

 

FA Ratings : 6/8*

 

  1. PE = 9.29 **
  2. ROE = 17.99 % **
  3. DIY = 0.00 %
  4. Mkt Cap: 2,377.3M (RM) in Large Cap, Energy, Main Market.

 

(3-Yrs CAGR: +60.0% p.a.)

Note: [s] = Syariah, ** = Good.

@ Trading Underpriced (relative).

 

*Intrinsic Valuation Desk*

 

Intrinsic Value @ 10% disc rate =4.34, IV @ 3.6% = 33.45, IV @ 7.5% = 7.71, IV @ 12% = 3.01,

Share is *Undervalued *, Safety Margin @ 10% disc rate = 94 % (Buy Now !).

Target Price: 2.53 @ P/PE@ 10.5x, potential +6.3 %.

 

Think to buy ARMADA only if it break about Short Term Resistance level @ 0.550 or Pullback @ 0.5-0.51.

 

 Medium Target Profit = 0.597.

Think to buy WASEONG only if it break about Short Term Resistance level @ 1.330 or Pullback @ 1.22-1.242.

 

Medium Target Profit = 1.443.

Think to buy DAYANG only if it break about Short Term Resistance level @ 2.490 or Pullback @ 2.175-2.238.

 

 Medium Target Profit = 2.702.

 

Do you know how to create these fundamental and technical like above automatically ? You can do it now for FREE using our free tools.

 

We will cover for Plantation sector next week. Let us know what sector you wish us to cover in the next article in the comment below.

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries.

Join our FREE Education via Telegram Channel: https://t.me/tradevsatradingideas

Facebook: www.facebook.com/MartinTFWong

Youtube: https://www.youtube.com/channel/UCKiafbxoa-DtTF5YP0v-HYg

 

Follow in the Telegram, Facebook and Youtube for daily update

 
speakup stating the obvious. where was this sifu when it was near lows?
18/12/2019 5:31 PM
Armada An Quantum Leap Stock In 2019/2020 Like your sharing for Armada / Waseong & Dayang .

TQ !
19/12/2019 2:22 PM
azhargoth Bumi Armada syariah?? am i missing something?
19/12/2019 11:27 PM
Zali Daud Shariah? BUMI ARMADA : Not Shariah Compliant Non-Compliant
20/12/2019 12:07 AM
TradeVSA Thank you for highlighting. Will correct the syariah compliant for Bumi Armada
20/12/2019 11:18 AM

Jaks Resources Bhd: A relook into Jaks Resources from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing Now?

Author: TradeVSA   |  Publish date: Tue, 19 Nov 2019, 4:24 PM


Comment what stock you like us to cover below for the next article....

 

Jaks Resources Bhd (4723.KL) listed in the Bursa Malaysia

 

Background of Jaks Resources Bhd (4723.KL)

Originally involved in the plumbing business when it was founded, JAKS is now principally engaged in two inter-related core businesses of Construction and Property Development/Investment (Property). As can be seen in the Segment Disclosure, the Construction arm topped sales (95% of the group’s total) and single-handedly contributed to profits in 2018. Although not yet listed as a core business, the venture into the power generation business in Vietnam has contributed significantly to the superior profit performance of the Construction arm in the last two years.

 

Property Segment, on the other hand, has underperformed. In 2018, the sales and profits of the Property arm was eroded by RM50.0m charged out for disputed performance liability (DPL) and RM32.3m of provision for liquidated ascertained damages (LAD). The twin drags contributed 75% of the y-o-y decline in the Property division’s sales and 93% of the increase in the division’s loss last year.

 

JAKS' five-year performance (2014-2018) was affected by sizeable non-recurring items recognised in 2017 (RM76.8m gain on disposal of land held for development in USJ) and 2018 (RM50.0m provision for DPL & RM32.3m provision for LAD). The cumulative EPS for the latest five-year period (2014-2018) at 4.04 sen rose well above 0.87 sen recorded in the earlier period (2009-2013), reflecting to a large extent the positive impact of good profits from the EPC contract in Vietnam which commenced in 2017. Coupled with the substantial one-off gain from land sale, the NTA has doubled in five years to RM1.22 as at 31.12.18. The combined impact of lower net debts (-21%) and a sharply expanded shareholders equity (+78%) also more than halved the net gearing ratio in five years to 0.33x as at 31.12.18.

 

A Quick Fundamental View for Jaks Resources:

  1. PE = 14.78
  2. ROE = 5.34 %
  3. DIY = 0.00 %
  4. Mkt Cap: 746.0M (RM) in Mid Cap, Construction, Main Market. (3-Yrs CAGR: +4.8% p.a.)
  5. Trading at Overpriced (relative).

 

Recent Insider Report for Jaks Resources Bhd (Bursa Malaysia)

In the Insider Report of Jaks Resources, we didnt see any disposal other than GE Assurance and Original Invention S.B. Jaks Resources previously known as Wing Teik Holdings Bhd, the company was taken over by Lam Poah’s father Datuk Ang Ken Seng in 2004. The elder Ang worked as a plumber servicing homes in his early days, before passing the baton to his two sons Lam Poah and Lam Aik, who, as JAKS’ executive director running the company.  In Jaks Resource Insider Report, I believe Original Invention S.B belongs to the Ang Family. The recent purchase or transfer of shares holdings from Original Invention and Mr. Ang Lam Poah may have caused the Jaks Resource to break out from the support and stage 1 accumulation. With reasonable amount floating shares of 48.5%, it was easy effort to move the shares price after stage 1 accumulation as shown in this Jaks Insider Report

 

Known Major Shareholder(s) As at 3rd April 2019

12.97 % Ang Lam Poah

5.42 % Original Invention Sdn Bhd

 

Insider Report Jaks : Market Cap: 823 M. Number of Shares: 584 M. Float: 48.47%.

 

Profitability Analysis of Jaks Resources Outlook

The Jaks Resources Outlook in term of profitability is nothing to shout about. At a paltry amount of less than 6% and PE of 17x, the share is trading less than fair priced. The debt situation is reasonable as it is not too excessive to delve on heavy financial leverage at this point of growing the company Jaks Resources. The lower ROE and ROA isn’t look very positive for Jaks Resource Outlook.

 

Jaks Resources Bhd (Trading) - Weekly & Daily Chart VSA (Volume Spread Analysis) Review

Weekly TradeVSA chart for Jaks shown a nice trading setup from accumulation. In the weekly chart, we notice the climatic volume with Sell-Off (end of Nov 2018) have changed the direction of the market from Mark-Down stage to Accumulation stage. The chart has confirmed the strength with bullish pentagon signal in March 2019.

 

Price subsequently moved sideways with several No Supply (NS) and Spring (SP) bars at support. This show Smart Money are still accumulating and keen to mark-up the price. Also, we can notice down bar volume are generally lower as lesser seller in the accumulation.

 

Finally, another change in trend appeared again with Line Change and climatic volume in early October 2019. This have confirmed the Mark-Up stage and price likely to head towards the resistance at RM1.83. Trades can look for pullback with Spring or No Supply signal for lower risk.

 

Daily chart in Jaks (updated on 14 November 2019) show pullback pattern after breaking above the accumulation. From the chart, we notice high volume on 10 October 2019 and subsequently market test the new support with low volume.

 

The filling date for both Ang Lam Poh & Original Invention appeared at the support in the accumulation. Currently trend is still healthy with average volume in the upbars.

 

*Pentagon Guider System has Buy or Sell Indicator indicated by Green Pentagon Icon and Red Pentagon Guider Icon in the field of Volume Spread Analysis. However, we advised reader that not all pentagons are buy or sell taken literally 100% of the time in Volume Spread Analysis method.

 

Check out our track record of our stock trade ideas of TradeVSA picked by our short term methods, here : http://bit.ly/2lUfUjY

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries about this Jaks Resources Bhd outlook and its Insider Report Jaks Resources Bhd article or opinion to clarify.

 

Join our FREE Education via Telegram Channel: https://t.me/tradevsatradingideas

Labels: JAKS
  Be the first to like this.
 
Kukuman Conclusion?
21/11/2019 8:22 PM
michaelwong Can cover Notion Vtec stock future growth analysis ? Thnks !
21/11/2019 8:43 PM
TradeVSA Sure, will take a look at Notion Vtec
22/11/2019 5:00 PM

AirAsia Group Bhd: A relook into AirAisa Group from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing Now ?

Author: TradeVSA   |  Publish date: Sat, 12 Oct 2019, 10:01 AM


Comment what stock you like us to cover below for the next article....

 

AirAsia Group Bhd (5099.KL) listed in the Bursa Malaysia

 

Background of AirAsia Group Bhd (5099.KL)

AirAsia Group Bhd (AirAsia), listed on the Main Market of Bursa Malaysia on November 2004, commenced operations in 1996 as a full-service domestic airline with two aircrafts and became Malaysia’s second national carrier then. However, following the acquisition of the Company by Tune Air Sdn Bhd in December 2001, AirAsia was re-launched as a low-cost carrier (LCC) and commenced operations in January 2002.

 

The Group is principally engaged in the operation of AirAsia, a low-cost airline with major business in Malaysia, Thailand, Indonesia, the Philippines, India and Japan, among others. Currently, AirAsia is the leading LCC in Southeast Asia. The Group focuses on providing high-frequency services on short-haul, point-to-point domestic and international routes on a single-class, no frills and ticketless concept. From an airline with two aircraft flying six routes in Malaysia in January 2002, AirAsia has soared in the last seventeen years to cover over 152 destinations in 22 countries.

 

AirAsia is one of the largest and most successful LCCs in Southeast Asia, with a fleet of 226 Airbus 320 (A320) aircrafts, which include AirAsia Malaysia, Thai AirAsia, Indonesia AirAsia, AirAsia Philippines, AirAsia India & AirAsia Japan.

 

For the six months ended 30 June 2019, Airasia Group BHD revenues increased 12% to RM5.81B. Net income decreased 93% to RM111.8M. Revenues reflect Load Factor, Total -% increase of 1% to 86.5%. Net income was offset by Remeasurement gain on former subsidiary decrease from RM534.7M (income) to RM0K, Share of results of associates decrease from RM6M (income) to RM194.1M (expense).

 

For the six months ended 30 June 2019, AirAsia Group Bhd revenues increased 12% to RM5.81B. The net income of AirAsia decreased by almost 93% to RM111.8M. The increase in revenues mainly attributed by increase in total passengers carried coupled with higher load factor.

 

A Quick Fundamental View for AirAsia:

  1. PE = 8.84 **
  2. ROE = 8.37 %
  3. DIY = 83.99 % (due to large dividend payout of RM0.90 per share in Aug 2019)
  4. Mkt Cap: 5,614.5M (RM) in Large Cap, Consumer Products & Services, Main Market.
  5. Trading at Fair Price (relative).

 

Recent Insider Report for AirAsia Group Bhd (Bursa Malaysia)

In the Insider Report of AirAsia, we did not see major disposal of shareholder from BlackRock Institutional Trust Company, EPF, Tune Live S.B, Tune Air S.B. These big-time insiders of AirAsia are confident of AirAsia in the overall long term. It is no secret that the public knows the founders of AirAsia Tan Sri Anthony Fernandes and Datuk Kamarudin Meranun are the major shareholders for Tune Live S.B and Tune Air S.B. Within the Insider Report AirAsia, as long as Tan Sri Tony Fernandes and Datuk Kamarudin remained the largest shareholder, the support @ TradeVSA chart of Insider Report AirAsia will remained strong at RM1.75. From the many of the institutional shareholders, they will view AirAsia as a longer term growth share due to the exposure of the its passenger in the new millennials and mixed group of family and retirees.

With Tan Sri Tony Fernandes and Datuk Kamarudin owning both combined 31% of out floating shares, they will have a good command of its share price. The outlook AirAsia may not be as rosy as the fuel prices will edge toward higher figure, ie USD 55-USD60 putting pressure margin to the over profitability. Recent attacks on Saudi oil field and the tit-for-tat conflict between Saudi/US Troop allied vs. Iran will provide support of crude oil prices hovering above USD55.

 

Known Major Shareholder(s) As at 27th Mar 2019

5.59 % Employees Provident Fund Board (EPF)

15.45 % Tune Air Sdn Bhd +

16.73 % Tune Live Sdn Bhd

+Note:  Tan Sri (Dr) Anthony Francis Fernandes is deemed interest in this.

 

Insider Report AirAsia : Market Cap: 5,713 Million, Number of Shares: 3341 Million, Float: 60.78%.

 

Profitability Analysis of AirAsia Outlook

 

The profitability of AirAsia Outlook in Return of Equity (ROE) is somewhat below average of 10-12%. In a layman person, ROE is calculated as (Shareholders’ Earnings / Shareholders’ Equity) x 100% . It is the measure on the return from the shareholder equity. What you paid for, and what you are getting from a earning standpoint. It is also the measure of capital efficiency utilisation eg can AirAsia outlook of its profitability deliver profits to their shareholders ? Do you want more than 6.68% for the latest of AirAsia Outlook Profitability ?

The long term debt to Equity ratio is another concern for AirAsia outlook, it has taken new debts to finance its capital expansion on more planes and more route in Asia. Servicing these long term debts will dampen on the returns on equity. However, this is the acceptable practise in the airline industry with high financial leverage on its capital structure.

 

AirAsia Group's Outlook (Trading) - Weekly & Daily Chart VSA (Volume Spread Analysis) Review

Based on the weekly TradeVSA chart, the distribution on AirAsia Group started since End of February 2018 with a huge Up-Thrust bar. Notice the Up-Thrust bar came with high volume and this is indicating the Hidden Potential Selling” by Smart Money. Price subsequently dropped further in mid of May 2018 with a Sell-Off bar and Red Pentagon signal. Again, we notice the volume increases as Smart Money distribute further.

Do take note in the Insider Report AirAsia, there was a big cash dividend payout of RM0.90 in mid Aug 2019. This explain why there’s a huge price drop in Aug 2019.

 

AirAsia chart continue to show weakness on recent months with 2 failed Spring bars. Price didn’t support at the Spring bars and continue to mark-down lower. Mark-down stage is likely to continue as no specific strength in the weekly chart that can change the direction of the trend.

 

Daily chart shows the similar pattern with 2 failed Spring bars at support. The weakness of the background can be easily spotted with Up-Thrust bars before and after the dividend. Currently price is trading below support with spring, we would like to look for opportunity to trade if the price breaks back to the Spring area with a shakeout pattern.

 

The filling date for both Employees Provident Fund & BlackRock appeared at the Spring area and this further show why price need to support at the area to ensure the strength in AirAsia.

 

*Pentagon Guider System has Buy or Sell Indicator indicated by Green Pentagon Icon and Red Pentagon Guider Icon in the field of Volume Spread Analysis. However, we advised reader that not all pentagons are buy or sell taken literally 100% of the time in Volume Spread Analysis method.

 

Check out our track record of our stock trade ideas of TradeVSA picked by our short term methods, here : http://bit.ly/2lUfUjY

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries about this VS Industry Bhd outlook and its Insider Report VS industry article or opinion to clarify.

 

Invite all of you to Market Conference 2019, Oct 19 2019 TradeVSA for your next Event !

 

Improve your Financial Literacy & learn new Research/Insights of Investing and Trading from Insider Report perspective from our panel of speakers Oct 19, 2019 Market Conference 2019, co-partner with Macquarie Malaysia and media partner with TradingView. Early Bird Tickets available to 30 Sep 2019 !

 

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Labels: AIRASIA
  Be the first to like this.
 
Koyee Load of BS
12/10/2019 11:40 PM
TradeVSA Thanks for the feedback above
13/10/2019 2:05 PM
stkstudent Airasia rebounded on fri. (11/10) to close at 1.71
Do you see the rebound to continue ? if so, what is the resistance level ?
If not, what support level do you see for Airasia ? thank you..
13/10/2019 3:17 PM
13/10/2019 3:17 PM

VS Industry Bhd: A relook into VS Industry Bhd from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing Now ?

Author: TradeVSA   |  Publish date: Fri, 4 Oct 2019, 10:42 AM


Comment what stock you like us to cover below for the next article....

 

VS Industry Bhd (6963.KL) listed in the Bursa Malaysia

 

Background of VS Industry Bhd (6963.KL)

VS Industry Bhd was founded in 1982 and listed on Main market in 1998. Today VS Industry Bhd is a leading integrated electronics manufacturing services (EMS) provider in the region, with proven capabilities to undertake the manufacturing needs of global brand names for office and household electrical and electronic products.

 

VS Industry Bhd is now ranked alongside top global EMS providers for 11 consecutive years from 2007 to 2017.

 

Together with its Hong Kong Exchange listed subsidiary V.S. International Group Ltd, VS Industry Bhd has advanced manufacturing facilities located in Malaysia, China, Indonesia and Vietnam, who collectively employ a workforce of more than 10,000 people. The group offers one stop manufacturing solutions to world-renowned customers from Europe, Japan and the USA.

 

Its extensive manufacturing services include plastic injection mould design and fabrication, a wide range of injection tonnage and finishing processes, large scale production of printed circuit boards, automated assembly and final processes of packaging and logistics.

 

VS Industry Bhd has entered into a three-year Master-Supply agreement with vacuum cleaner company Bissell to manufacture its products on 27 February 2019. Bissell Inc is a 140-year old company that supplies vacuums, sweepers, carpet cleaning machines, as well as pet grooming products. The group is confident that BISSELL has high potential to be a key customer in future.

 

For the fiscal year ended 31 July 2019, revenue, gross profit and PBT of VS Industry Bhd declined by 3.0%, 3.8% and 1.3% yoy to RM3,978.4 m, RM370.4 m and RM174.0 m respectively.  

 

Malaysia segment posted 7.6% increase in revenue respectively due to higher sales orders from key customers. However, revenue for Indonesia segment declined by 19.2% yoy to RM245.6 m. China segment recorded a lower revenue of RM388.1 m (-43.8% yoy) mainly due to large pre-tax loss of RM83.0 m.

 

VS Industry Bhd is continuing to pursue opportunities arising from trade diversions out of China. With many multi-national company brand owners still actively looking to re-locate operations to the ASEAN region, the group stands ready to benefit given its readily-available capacity on-hand.  Production for its most recently-secured customer Bissell has commenced, with delivery anticipated from October onwards, contributing meaningfully to 2Q20 numbers.

 

A Quick Fundamental View for VS Industry:

  1. PE = 15.00,
  2. ROE = 9.69%,
  3. DIY = 2.71%
  4. Mkt Cap: 2,363.7M (RM) in Large Cap, Industrial Products & Services, Main Market.
  5. Trading at Overpriced.

 

Recent Insider Report for V.S Industry Bhd (Bursa Malaysia)

In the Insider Report of V.S Industry, it’s interesting to note that the Beh and Gan family which are biggest beneficiaries of a better VS outlook, the largest shareholder (Insider report) other the financial institutions like EPF and KWAP is Public Mutual. In the Insider Report, Managing Director of VS, Datuk S.Y. Gan has the largest share @ 4.61%. I believe the business owner is very confident with their VS Industry outlook business despite in its recent AGM, announcing slowdown in production due to US-China Trade War. With Dyson being its no. 1 customer and expanding its base, the Gan & Beh family will do well in VS Outlook, evident by the recent buying of more VS Industry in Aug & Sep 2019 confirmed this insider event in the Insider Report.

I will also state that in the Insider Report of VS Industry, the buying in Aug & Sep 2019 coincided at RM1.125 at the trendline for the TradeVSA chart. I believe that VS Outlook should be rosy as this is the lowest point for V.S price chart and when the owners are buying and increasing its share, they must have confidence on their own management.

Known Major Shareholder(s) As at 31st Oct 2018

18.59 % Datuk Beh Kim Ling & Datin Gan Chu Cheng

5.99 % Datuk Gan Sem Yam & Datin Ling Sok Mooi

 

Profitability Analysis of VS Industry Outlook

The profitability VS outlook is average performance as it dipped by its respective 12-15% ROE. The positive profitability is the low debt to equity ratio which enhance its attractiveness to value investor. Its dividend yield @ 2.65% also make it very attractive for those seeking income return as well as price appreciation in tandem with growth of its no. 1 customer Dyson. I recently admit, I got hold of Dyson vacuum product – Dyson D10 “Fluffy” is certainly differentiate than other brands. If more people like me get Dyson product, I see VS outlook got lot of potential.

 

 

VS Industry’s Outlook (Trading) - Weekly & Daily Chart VSA (Volume Spread Analysis) Review

Based on TradeVSA weekly chart and its medium term VS outlook, we notice the distribution with Up-Thrust at the top of the chart. Price subsequently follow thru with high volume Sell-Off to change the trend to mark-down stage. The mark-down stage ended with another Sell-Off bar with climatic volume. Smart money decided to step-in to accumulate at panic selling by public.

 

On VS outlook, medium trend change again to mark-up stage with Spring and Line Change bars at the weekly support. Currently we do spot another Up-Thrust bar near resistance last week. We expect price to pullback lower to support. Monitor if there any Spring bar for potential entry using weekly chart.

 

Red Bearish Pentagon appeared on 1 October 2019 and this indicate that another pullback is coming soon. The daily volume on the downbar is average and likely to re-test the support level again. Notice the previous support level are well supported with strength. We will look for potential opportunities if there a confirm strength with bullish signal at support.

Some of the funds are actively accumulate in this mark-up stage. Watch out for No Supply, Spring and Test bars for a better VS outlook.

 

*Pentagon Guider System has Buy or Sell Indicator indicated by Green Pentagon Icon and Red Pentagon Guider Icon in the field of Volume Spread Analysis. However, we advised reader that not all pentagons are buy or sell taken literally 100% of the time in Volume Spread Analysis method.

 

Check out our track record of our stock trade ideas of TradeVSA picked by our short term methods, here : http://bit.ly/2lUfUjY

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries about this VS Industry Bhd outlook and its Insider Report VS industry article or opinion to clarify.

 

Invite all of you to Market Conference 2019, Oct 19 2019 TradeVSA for your next Event !

 

Improve your Financial Literacy & learn new Research/Insights of Investing and Trading from Insider Report perspective from our panel of speakers Oct 19, 2019 Market Conference 2019, co-partner with Macquarie Malaysia and media partner with TradingView. Early Bird Tickets available to 30 Sep 2019 !

 

https://www.eventbrite.sg/e/market-conference-2019-tickets-70882582713

 

Join our FREE Education via Telegram Channel: https://t.me/tradevsatradingideas

 

 

 

  Patrick13 likes this.
 

Ekovest Bhd: A relook into Ekovest Bhd from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing Now ?

Author: TradeVSA   |  Publish date: Sun, 29 Sep 2019, 9:15 PM


Comment what stock you like us to cover below for the next article....

 

Ekovest Bhd (8877.KL) listed in the Bursa Malaysia

 

Background of Ekovest Bhd  (8877.KL)

Founded by the group's two existing Executive Directors (Tan Sri Dato' Lim Kang Hoo and Khoo Nang Seng), Ekovest Bhd made its debut on the then Second Board in 1993 and was promoted to the Main Board in March 2000. Ekovest has expanded significantly between FY14 and with sales were up by 3.6x in four financial years, staying above the RM1b mark in the last two financial years

 

Ekovest Bhd business segments are Construction operations, Property development, Investment holding and Toll operations. The Company's construction projects include Danga Bay, Kuala Lumpur Central Commuter Station, Labuan Financial Park, Office Building Petronas Carigali, Petronas Twin Towers, Putrajaya and Universiti Malaysia Sabah. Its property development projects include Eko Titiwangsa, Eko Cheras and Oasis Kajang. Its infrastructure concession projects include DUKE Highway and Solar Panel at Batu Toll Plaza.

 

Ekovest Bhd revenues increased 29% to RM1.34B, for the year ended 30 June 2019. Net income increased 12% to RM140.5M. Revenues reflect an increase in demand for the Company's products and services due to favourable market conditions. Net income was partially offset by Interest expense increase of 27% to RM204.2M (expense), Administrative and general expenses increase of 43% to RM104.4M (expense).

 

A Quick Fundamental View for Ekovest:

  1. P/E Ratio = 14.65
  2. ROE = 5.75%
  3. DY = 0 (No dividend payout)
  4. Currently Ekovest is trading at overpriced.

 

Recent Insider Report for Ekovest Bhd (Bursa Malaysia)

Tan Sri Lim Kang Hoo is the founder, chairman and chief executive of Iskandar Waterfront Holdings and Ekovest Berhad. Both corporations manage infrastructure construction projects, as well as mega property development. Within this Insider Report, Tan Sri Lim Kang Hoo was a good business partner with previous BN government with direct connection to ex-PM, Najib Razak. He was major controlling stakeholder in Bandar Malaysia property development back in 2017 through IWCity but has reconfirmed it is no longer involved in Bandar Malaysia project in Apr 2019. Through this turn of unfortunate events, Ekovest Outlook is not so rosy.

It is interesting to note that in the Insider Report, when owner of the company, Tan Sri Lim Kang Hoo increased its stake, he will have relative confidence in its own company. Tan Sri Lim has increased his stake by 2.4%. In light of this event, EPF also too increased its stake to almost 5% as of the Top 10 shareholders of Ekovest Berhad of this Insider Report.

 

As you can also see from the Insider Report alone, Lim Seong Hai Holdings S.B is likely allied business partner to Tan Sri Lim Kang Hoo. Tan Sri is likely to maintain major control on Ekovest. Combining of them, they controlled almost 40% of the Ekovest in the Insider Report. With the recent purchase by Tan Sri Lim Kang Hoo, Lim Seong Hai Holdings @ RM0.85-0.87 estimated, I believe it will form a good support despite we see breaking down of Ekovest to RM0.75 (base of double bottom support). Ekovest outlook from the price standpoint seen worrying but from floating shares of Ekovest outlook, it is stable.

 

Known Major Shareholder(s) As at 10th Oct 2018

20.1 % Tan Sri Dato' Lim Kang Hoo

12.19% Ekovest Holdings Sdn Bhd*

7.19% Lim Seong Hai Holdings Sdn Bhd^

 

* Tan Sri Dato' Lim Kang Hoo is deemed interested

^ Tan Sri Datuk Seri Lim Keng Cheng is deemed interested

 

Market Cap: RM 1.625 B, Number of Shares: 2.14 B, Float: 42.76%. The three major stakeholder almost 40% of the floating shares.

 

Profitability Analysis of Ekovest Bhd Outlook

The profitability of Ekovest with its low single digit of return on equity may deem on good profitability of Ekovest outlook. Its highly leverage financing will ensure future of Ekovest outlook in term of profitability remained deem until many of the construction and engineering high ticket projects are revived by the government. I like to see an increase in the return of equity figures for 2020 and beyond to make this a stable and steady share of Ekovest to hold providing Construction Malaysia Outlook look good which it is not in year 2019.

 

 

Ekovest’s Outlook (Trading) - Weekly & Daily Chart VSA (Volume Spread Analysis) Review

 

The overall view and Ekovest Outlook (trading) in weekly chart shown changed in trend after the high volume with strength. We notice the weeks before the Line Change with high volume, No Supply (NS) signal is spotted at the support level. The NS signal alerted us the sellers are getting lesser and Smart Money is ready to re-test the resistance.

 

The current setup and Ekovest outlook (trading) show slightly weak as bearish signal have appeared in the weekly chart. Notice in this accumulation stage, the support level is well supported at the Spring bar. We’ll probably see another shakeout pattern soon. Looks for entry only if the shakeout completed.

 

 

Ekovest’s outlook (trading) and setup in daily chart do show weakness too by breaking below the major support level. In the TradeVSA chart, we notice lots of sign of strength at RM0.79 (support). Signals like Test bars appeared several times and show the intention on Smart Money to check the supply level by weak-hand holders. The Up-Thrust at the resistance is too huge with volume, and Smart Money need to ensure all weak hand holders have been removed in the market before re-test resistance.

 

Based on the filing date of the Insider Report of Ekovest Berhad, we also noticed the buying by the insiders are pretty close to support level. The price might break below the major support level, however if we look closely on the volume, the volume on the downbar is average. We believe the price likely to test at RM0.715 again at the previous shakeout area. Looks for Spring bar or complete shakeout for trading opportunities.

 

*Pentagon Guider System has Buy or Sell Indicator indicated by Green Pentagon Icon and Red Pentagon Guider Icon in the field of Volume Spread Analysis. However, we advised reader that not all pentagons are buy or sell taken literally 100% of the time in Volume Spread Analysis method.

 

Check out our track record of our stock trade ideas of TradeVSA picked by our short term methods, here : http://bit.ly/2lUfUjY

 

Contact us via: email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries about this Ekovest Bhd and its Insider Report article or opinion to clarify.

 

Invite all of you to Market Conference 2019, Oct 19 2019 TradeVSA for your next Event !

Improve your Financial Literacy & learn new Research/Insights of Investing and Trading from Insider Report perspective from our panel of speakers Oct 19, 2019 Market Conference 2019, co-partner with Macquarie Malaysia and media partner with TradingView. Early Bird Tickets available to 30 Sep 2019 !

 

https://www.eventbrite.sg/e/market-conference-2019-tickets-70882582713

 

Join our FREE Education via Telegram Channel: https://t.me/tradevsatradingideas

 

Labels: EKOVEST
  alpgxuagx likes this.
 
Plantermen Whatever the case. Ekovest is trending down
30/09/2019 8:32 AM
TradeVSA Thanks for the comment
30/09/2019 9:57 AM
siva123 Can you plase provide you analysis on Genting 3182, Alliance Bank 2488, YTL 4677 and TM 4864. Thank you.
22/11/2019 9:26 AM


 

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