Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Thu, 20 Sep 2018, 09:48 PM

 

GUH Stands for Good, Undervalue & Happily Accumulating, Let Calvin Tan Research tells you the reasons why?

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Hi guys

 

GUH is another Good, Undervalue Stock which Value Investors are Happily Accumulating

 

1) GOOD

Dr. Neoh Soon Kean of Dynaquest gave a 5 Star Rating in his Stock Performance Guide. He only gave TA Enterprize & INSAS Bhd a 4 Star. Of course Calvin thinks both TA & INSAS are great stocks in their own rights

Let's take a closer look on GUH

 

These are the Businesses of GUH

1) It has Factories in Penang & China producing Printed Circuit Boards for Japanese & Korean Companies like National Panasonic. These PCB are used in Airconds, Washing machines, Refrigerators, Ovens & many other Electrical & Electronics goods. And with Gst removed the Power goes to Consumers - leading to more purchases of Consumers goods

 

2) GUH also has many others according to i3 Forum reports

 

GUH Holdings Bhd is a Malaysian based company. The company is engaged in manufacturing printed circuit boards. It operates in five segments including Manufacture of printed circuit boards(PCB), Property development, Sale of electrical appliances, Cultivation of oil palm and Water and wastewater treatment. Manufacture of printed circuit boards segment includes manufacturing of single-sided PCB, double-sided PCB, multi-layer PCB (MLB) and silver through-hole PCB (STH). These are widely used for audio-visual equipment, telecommunication, home appliances, automotive, electronic components, digital and information technology related products. It derives the majority of the revenue from Manufacture of PCB.

 

3) It has also got Water and wastewater treatment which are recession proof

4) And Palm Oil Cultivation in Kedah

5) Above all that stands out now is the PROPERTY DEVELOPMENT of GUH

Already with long years of Property Development in Taman Bukit Kepayan near Seremban Town now GUH is planning New Townships near Batu Kawan

Why is Calvin turning bullish?

Because the Top Guns of PH Govt hail from Langkawi (Tun Dr M is MP), Kedah (Datuk Mukhriz is MP here), Both Finance Minister Lim Guan Eng & Anwar Ibrahim (Permatang Pauh or Seberang Prai) of Penang

YES!! This will be the Northern Golden Triangle of Langkawi, Kedah & Penang!

And smack in the very heart are GUH 3 (Not one) Prime Property Projects to be launched!

Moreover, Bank Negara is easing loans for First Time House Buyers

Above all is the BOOM TIME IN BATU KAWAN with the Incoming of IKEA. And LGE promised that Penang Bridge Toll will be scrapped if PH Govt win the Election

SO THE WHEEL OF FORTUNES HAVE COME HERE AT LAST FOR GUH!

 

2) UNDERVALUE

At 63 Sen with NTA of Rm1.87 GUH is selling at a Deep 67% Discount to NTA. This is more than twice of what Ben Graham required at only 30% as A Margin of Safety

 

 “Margin of Safety” as the Central Concept of Investment - From THE INTELLIGENT INVESTOR by Benjamin Graham.

 

GUH is a NET CASH COMPANY PLUS ASSETS STILL YET TO BE REVALUED

And by this December 2018 Company will do its 5 yearly revalution

See

Revaluation Policy The land and buildings of the Group were revalued by firms of independent professional valuers using open market value basis. Revaluation of these assets will be conducted in an interval of at least once in every five years.

 

Note: The Assets of GUH were last revalued in Dedember 2013

 

Now let's look at One Property of GUH in Kedah

13 Lot No. 5 Mukim Telui Kiri, Freehold Agricultural land 1,551,773 sq meter  - Rm 21,200,000  Last revalued  31/12/2013.. Daerah Kuala Muda, Kedah

IT STATED ITS NO. 13 PROPERTY (Refer Annual Report 2017)

FREEHOLD LAND IN KEDAH

1,551,773 (About 1.55 million sq meter of freehold lands) with a Book Value of Rm21.2 Millions

Now let us get its Price Per Sq Ft

 

i Square Meter = 10.764 sq ft

So 1,551,773 x 10.764 = 16,703,284 sq ft

now what is the price per sq ft?

So divides Rm21,200,000 by 16,703,284 = Rm1.27 psf

Ha! So here is the Value: GUH land cost is Rm1.27 psf

Now many of fellow i3 Forumers think OSK is having undervalue property assets?

Let us look at one carefullyt

Please go to OSK AR 2017 & Scroll to Properties Owned by OSK

 

1 Sungai Petani, Kedah Darul Aman Land under development and held for development Freehold 1,191 acres. 29 January 1996 N/A Rm541,485,000

 

From here we can see that OSK bought 1,191 acres of freehold lands in January 1996 for Rm541.485 millions

Let do a break down

1 acre = 43,560 sf

So 1,191 x 43,560 = 51,879.960 sf

Now for Price per sq ft

 

Rm541,485,000 divides by 51,879,960 =Rm10.44 psf

From here we can SEE CLEARLY

GUH lands are valued at Rm1.27 Psf

OSK Lands are valued at Rm10.44 psf

So OSK lands are more expensive by 822% compared to GUH'S

And GUH has Prime Factories on Mainland of Penang, 2 more prime pieces near to Batu Kawan

 

3) HAPPILY BUYING SHARE HOLDERS

These are some Top 30 Shareholders of GUH

Yeoman capital has increased its shares from 7. millions to 8.5 millions from year 2016 to year 2017 (See AR)

5 DB (Malaysia) Nominee (Asing) Sdn Bhd 8,500,000 3.10% Deutsche Bank AG Singapore for YEOMAN 3-Rights Value Asia Fund (PTSL)

24 Zulkifli Bin Hussain 1,600,560 0.58%

Zulkifli holds Pm Corp shares for many years in Top 30 shareholders

27 RHB Nominees (Tempatan) Sdn Bhd 1,267,211 0.46 DBS Vickers Secs (S) Pte Ltd for Kuok Khoon Ho (Not to be confused with Kuok Khoon Hong the Founder of Wilmar)

A nephew of Robert Kuok

 

And many others are former Directors of Leader Universal holding GUH shares. AMONG THEM IS Laico Jaya Sdn Bhd, Howell Chen Chung 

THESE HNGS ARE IN TOP 30 HOLDERS OF GUH 


13 Dato' H'ng Chun Hsiang 

15 Datin Jessica H'ng Hsieh Ling 

16 H'ng Chun Ching 

17 Dato' Harry H'ng Bak Seah 

18 H'ng Hsieh Fern 

ARE THEY GOING TO TAKE GUH PRIVATE?

LEADER UNIVERSAL HAS BEEN PRIVATISED. AND GUH IS ANOTHER DEEP VALUE STOCK WHICH IS ALSO ANOTHER CANDIDATE FOR PRIVATISATION.

 

 2 Zun Holdings Sdn Bhd 32,034,938 11.68 


ZUN HOLDINGS IS TOP 2 OF GUH TOP 30 

AND OWNED BY THE HNGS

 

THE TOTAL NET NET OF GUH IS FAR MORE THAN THE TOTAL LIABILITIES OF GUH.

Others are also investing in undervalue stocks like Eksons, Flb(Teh Kian Lang) & other Value shares

 

WARM REGARDS

 

Calvin Tan Research

Singapore

 

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calvintaneng VERY POSSIBLE THAT MANY FORMER DIRECTORS OF LEADER UNIVERSAL HOLDINGS (TAKEN PRIVATE AT RM1.10) MIGHT ALSO OFFER TO TAKE PRIVATE GUH AT SIMILAR PRICE OF RM1.10 ONE DAY (INTRISIC VALUE OF GUH IS MORE THAN RM1.10)

https://klse.i3investor.com/servlets/stk/4529.jsp
14/08/2018 08:04
calvintaneng THE HNG FAMILY TOOK LEADER UNIVERSAL HOLDINGS PRIVATE https://www.thestar.com.my/business/business-news/2011/10/18/leader-universal-controlling-shareholders-offer-buyout/
14/08/2018 08:20
calvintaneng THESE HNGS ARE IN TOP 30 HOLDERS OF GUH

13 Dato' H'ng Chun Hsiang

15 Datin Jessica H'ng Hsieh Ling

16 H'ng Chun Ching

17 Dato' Harry H'ng Bak Seah

18 H'ng Hsieh Fern

ARE THEY GOING TO TAKE GUH PRIVATE?
14/08/2018 08:25
calvintaneng 2 Zun Holdings Sdn Bhd 32,034,938 11.68

ZUN HOLDINGS IS TOP 2 OF GUH TOP 30

AND OWNED BY THE HNGS
14/08/2018 08:27


 

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