Highlights
KLSE: XINHWA (5267)       XIN HWA HOLDINGS BHD MAIN : Transportation&Logistics
Last Price Today's Change   Day's Range   Trading Volume
0.825   +0.035 (4.43%)  0.80 - 0.835  849,400
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Overview

Market Cap: 178 Million
NOSH: 216 Million
Avg Volume (4 weeks):1,239,364
4 Weeks Range:0.79 - 0.875
4 Weeks Price Volatility (%):
41.18%
52 Weeks Range:0.62 - 1.17
52 Weeks Price Volatility (%):
37.27%
Average Price Target: 1.68
Price Target Upside/Downside: +0.855
Stamp duty exempted for year 2019

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2018 [#2]  |  22-Nov-2018
Next QR | Est. Ann. Date: 31-Dec-2018  |  12-Feb-2019
T4Q P/E | EY: 23.96  |  4.17%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 0.69  |  1.20
T4Q NP Margin | ROE: 6.31%  |  4.99%

Headlines

Date Subject
15-Feb-2019 PublicInvest Research Headlines - 15 Feb 2019
15-Feb-2019 Mplus Market Pulse - 15 Feb 2019
30-Jan-2019 Trading Stocks - Xin Hwa

Business Background

Xin Hwa Holdings Bhd is a Malaysia based investment holding company and is engaged in the provision of management services. Through its subsidiaries, it provides integrated logistics services involved in land transport operations, warehousing and distribution operations and other services. The business segments of the company are Land transport services, Warehousing and Distribution Services, Freight Forwarding and Customs Brokerage, Manufacturing and Fabrication of Trailers and B2B E-commerce. Land transport services which include cargo transportation and container haulage services generates the majority of the revenue for the company.
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  4 people like this.
 
nissan .8
16/01/2017 13:40
klsemaster2020 PE20...expensive
01/03/2017 23:25
centrio88 Coming
29/03/2017 09:23
Life1nvest [XINHWA]一个受惠于"一带一路"之网购平台的物流股
http://life1nvest.blogspot.my/2017/04/xinhwa.html
07/04/2017 15:20
Life1nvest 一起来看看在2015年中国知名财经媒体李德林如何评价马云的新对手-义乌购
https://www.facebook.com/Life1nvest/videos/300301497057614/
07/04/2017 23:29
ImCK website so lousy also want become alibaba try order see many bug
09/04/2017 22:35
EliseSoh Need improvement on the website.All item description in Chinese....
12/04/2017 23:55
Iliketrading I saw their advertising at highway. 2M products and 75K seller. But in their website just 100K products. I don't think got 75K sellers. Not very genuine info. Disappointed. Got few lots in hand think of sell it.
15/04/2017 12:11
shunfeng2032 Break resistance. long way up.
19/04/2017 10:22
ImCK thier website like suck now people direct buy from taobao want take wholesale direct go alibaba liao
19/04/2017 19:12
08/05/2017 09:17
twhgarnett XIN HWA EXPECTS BETTER PERFORMANCE AHEAD RIDING ON IMPROVED ECONOMIC ENVIRONMENT

Johor Bahru, 31 May 2017 – Integrated logistics services provider, Xin Hwa Holdings Berhad (“Xin Hwa” or “the Group”), announced its Fifth Quarter FY17 (“5QFY17”) results today for its financial period ended 31 March 2017. To recap, Xin Hwa changed its financial year end to 31 March 2017 and hence, this is a cumulative 15-month results. Due to the change, there are no comparative figures disclosed for the preceding year corresponding period.
For the quarter under review, Xin Hwa posted a revenue and net profit of RM26.6 million and RM2.0 million respectively. Xin Hwa’s land transport operations remain its main revenue generator, contributing RM24.3 million or 91.4% to total revenue in 5QFY17. The Group’s land transport operations comprise cargo transportation services and container haulage services which accounted for approximately 58.0% and 33.4% of turnover respectively.

On the other hand, Xin Hwa’s warehousing and distribution operations accounted for
RM2.2 million or 8.2% of its total revenue for the current quarter under review.
Meanwhile, the Group’s other services that consist of freight forwarding and
customers brokerage services, as well as manufacturing and fabrication of trailers,
contributed RM0.1 million or 0.4% to total revenue for the 3-month period ended 31
March 2017.

For the cumulative 5 quarters, the Group achieved a revenue and net profit of
RM128.7 million and RM12.8 million respectively. Land transport operations
accounted for RM119.7 million or 93.1% to the Group’s FY17 revenue while
warehousing and distribution operations and other services contributed the balance
of RM8.7 million and RM0.3 million respectively. The gross profit and pre-tax profit
(“PBT”) margin for FY17 are 37.5% and 12.7% respectively.

Managing Director of Xin Hwa, Mr. Ng Aik Chuan said, “2016 had been a
challenging for us. This is in-line with the broader weak market conditions stemming
from the rising cost of living, fluctuations of Ringgit, increase in oil prices, and
uncertainties in the global markets. These factors affected overall consumer
sentiments as well as the demand for transport services and warehousing which, in
turn, affected our profitability. Furthermore, absence of contribution from several
larger-sized logistics contracts for Klang Valley MRT Line 1 which we completed in
2015 also resulted in the softer results in FY17. Nevertheless, based on our track
record, we are positive to secure some land transport works stemming from the
upcoming major infrastructure projects in the country.”

“We have been busy expanding in 2016 while remaining cost prudent at the same
time. Our new warehouse in Pasir Gudang measuring approximately 180,000 sq. ft.
that is adjacent to our current warehouse, is on track to be completed in June 2017.
We are confident this new warehouse will swiftly reach full capacity by September
2017 as we already have customers on hand. Meanwhile, we are also building another
new warehouse in Shah Alam, Selangor which is slated for completion by end of 2018.
It has 4-storeys with a combined built-up size of 400,000 sq. ft. Upon completion, Xin
Hwa will double our space from 404,000 sq. ft. currently to approximately 1 million sq.
ft.”
“In addition to our warehouse expansion, we also continue to expand our fleet size in
tandem with the expected growth in our business. Currently, we have a fleet size of
approximately 1,500 vehicles consisting of prime movers, trailers, and trucks. Our
economy is growing with GDP increased healthily by 5.6% year-on-year 1Q2017,
which exceeded the 4.6% forecast by economists. This bodes well for our prospects
as we do see correlation between GDP growth and demand for our services.”

“As for our recently launched e-commerce platform, www.e5buy.com, the response
has been encouraging with orders coming in from various parts of Malaysia. There
are also a lot of enquiries to find out our offerings and services. The platform is still
new and therefore, we are channeling our efforts to promote it. We are positive on the
future of our e-commerce venture as we will ride on our country’s effort to double the
nation's e-commerce growth by 2020.
02/06/2017 20:44
damiantreez TP 1.37
19/06/2017 11:37
Alex Por TP 0.9
28/08/2017 17:18
twentybucks Logistics play is coming back! Century up 9% yesterday! Soon will be this counter.
14/09/2017 08:57
twentybucks Investment Merits
Niche transporter in high impact activities
• Xin Hwa position itself into niche segment of transporting for ports, industrial products and equipments. This positioned Xin Hwa close to the high impact economic activities like external trade and construction sector.
• Almost 30% of land transports revenue contributed from transporting precast concrete throughout Peninsular Malaysia and Singapore.
• Under container haulage, Xin Hwa is a major player for PTP and Penang Port.
• Xin Hwa also a specialist in project cargo which involves transportation services for boilers, cement plant structure and machinery, generators, tower cranes and railway equipment.

Expansion driven growth on warehousing
• For warehousing division, XIn Hwa has recently completed the new 180,000 sq. ft. warehouse in Pasir Gudang and operations shall commence soon. Management is confident to reach full utilization within 6 months as the company already has orders in hand for the new warehouse.
• With the new addition, Xin Hwa now has a total warehousing space of 584,000 sq. ft. Xin Hwa plan to double their warehousing space to approximately 1 million sq. ft. by end of 2018 with another 426,000 sq. ft. of space coming from their new E-Fulfillment Centre in Shah Alam. This will put Xin Hwa in a strategic position to capitalize the demand for warehousing following the introduction of the Digital Free Trade Zone (DFTZ).

Tapping into E-commerce
• In March 2017, Xin Hwa launched its China business-to-business (B2B) e-commerce platform, e5buy.com, gives Malaysian businesses and individuals direct access to 75,000 suppliers and 1.8 million products in China's Yiwu Commodity Market in the Zhejiang province, which has been dubbed the world's largest wholesale market.
• Xin Hwa is hoping to gain a slice of the cargo traffic that moves ¬between Yiwu and Malaysia via e-commerce. Based on conservative estimates, there are at least 2,000 containers with total value of RM4 mil being shipped to Malaysia from Yiwu every month.
• Management expects the e-commerce venture to contribute to Xin Hwa’s group earnings within a year.
• The e-commerce growth translates into high demand growth for the logistics industry which provides Xin Hwa with an opportunity to extend the scope of logistic services, which may include courier services and door-to-door delivery services
• Over next three to five years, Xin Hwa is planning to venture to other Asean countries, by replicating the e-commerce model and forming joint ventures with local logistics players in other regional markets.

Key Risks
• Weaker-than-expected demand in land transportation
• Weaker-than-expected demand in warehousing

Financial Highlights
• In FY17, Xin Hwa hit bump when their PAT dropped by 20% due to higher financing cost from warehouse expansion and higher effective tax rates due to absence of capital allowance.
• With the commissioning of new warehouse and upcoming larger-sized logistics contracts from the upcoming major infrastructure projects in the country, management expect Revenue and PBT to grow exponentially in FY18.
• Its in-house expertise in manufacturing, fabrication and maintenance set the Group apart from other logistics players, showcased by its superior profit margin, with land transport PBT margin at 15% in FY17 as compared to 9-11% of peers in the industry.
• XIn Hwa’s balance sheet is healthy with total borrowings stood at RM74.9m as at 1QFY18 and net gearing of 0.5x.

Valuation
• Closest peer in term of business segment and growth potential to Xin Hwa is Century Logistics which is trading at 18.0x FY17 and 15.7x FY18 PE with EPS growth of 30% and 11.6% respectively. With consensus target price of RM1.51, Century Logistics is valued at 19.6x FY18EPS. Xin Hwa should be valued at least at 19.0x FY19 EPS or RM1.30/share.
14/09/2017 08:59
BBgsold hold for long term
14/09/2017 14:30
twentybucks moving day
26/09/2017 10:43
BursaKakis http://www.thestar.com.my/business/business-news/2017/10/13/xin-hwa-secures-contracts-totaling-rm13mil/
13/10/2017 14:09
munusamy TP 1.25 Next Monday
13/10/2017 18:33
myuptownboy something BIG is coming!
17/10/2017 16:15
mancingbursa Hm... You ppl want daily fluctuate or major trend up? Think...
27/10/2017 04:30
monkeyinvestor today up
27/10/2017 09:35
28/10/2017 17:45
Lim Kah Ming I think should be rise at least x below 1.50
07/12/2017 22:08
AceofSpades Yes...it is still a bargain now!
14/12/2017 09:52
Lim Kah Ming up trend starting now... gogogo Xinhwa rise where you can reaching
19/12/2017 13:23
klsemaster2020 PE25 it is expensive Stock
26/12/2017 17:28
Lim Kah Ming Xinhwa is china company or malaysia company?
10/01/2018 00:23
Lim Kah Ming I heard other pols said is china company? Right?
10/01/2018 00:23
superluckystar0505 it's Malaysian company founded in JB.
16/01/2018 11:50
Myeye ~.~ 1.14
18/01/2018 16:07
Myeye Out 1.18 ~.~
19/01/2018 16:45
Myeye Ehhh... miss out ~.~111
02/02/2018 16:29
Myeye Maybe 1 man show ~.~
02/02/2018 16:31
Lim Kah Ming Xinhwa start lai le up up up,1st tp: 1.30
08/02/2018 14:00
Myeye +1.12 ~.~
08/02/2018 16:38
Myeye +1.11 follow ~.~
08/02/2018 16:54
Myeye Patience ~.~
08/02/2018 16:55
yulemin91 Engine start for it?
13/02/2018 10:22
Myeye Good ~.~
13/02/2018 16:26
klsemaster2020 Pe21.5 , guys please wake up there is no justify earning
22/02/2018 09:37
klsemaster2020 Price is soften with investor start able to give reasonable valuation
26/02/2018 16:24
Myeye ~.~111
26/02/2018 16:35
myfuad this company bags so many big project...incl 70% delivery LRT3 Beams
28/02/2018 17:31
Pirates Anyone knows who are Tiong Nam's customers for their logistics and warehousing division?
20/03/2018 16:13
klsemaster2020 Price continue to drop how ah
31/05/2018 18:24
Myeye + 0.865 ~.~
05/06/2018 15:53
Myeye ~.~
24/07/2018 10:06
commonsense Since its listing in 2015, revenue has grown by an average of 5% per year however profit could not follow suit. In FY16 (Apr 15 to Mar 16) profit to shareholder was at RM12.7mil however the most recent 12 months trailing profit is only at RM7.3mil. At the current share price, the company is trading at a high of 20.8x PE which investors would normally expect a PAT growth of around 15% per year (after 5 years profit will double). Given the intense competition of the logistic industry at the moment, growing the profit of the company might proof to be a difficult thing to do in the near term. That being said the fall of oil price might help improve the margin a bit.

The company’s balance sheet on the other hands looks pretty healthy with net gearing of around 50%. The only issue it the cash balance which has depleted to only RM3.3mil from RM6.7mil early of the financial year. That being said it won’t be a big issue to the company as it still has the ability to take some debt to finance any shortfall in cash for its operation.

If you are looking to diversify your portfolio outside of Xin Hwa (due to earnings uncertainties in the short term), I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.0x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the new Alza in 2H19.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.

Good luck.
04/01/2019 12:04


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