[CHIN HIN GROUP BHD：将以总现金代价330万比索（约合270,000.00令吉）认购Starken Philippines Incorporation（“ SPI”）30％的股份，Solarvest Holdings Berhad（“ SHB”）将在大马证券交易所（“ Bursa证券”）的Ace市场上市]

2Q19 vs 2Q18:
autoclaved aerated concrete（“ AAC”）和预制混凝土的制造以及耐火和木质门部门的制造收入均录得增长。本地和新加坡市场对面板需求的增长带动了autoclaved aerated concrete（AAC）砌块的生产，带来了更高收入。此外，海外市场，特别是菲律宾对AAC块的需求增加。预制混凝土产品收入的增长是由于向城镇的大型基础设施项目提供预应力和钢筋混凝土梁，crosshead，电缆槽和应急走道，如杜克高速公路，捷运，Light Rapid Transit（“ LRT”），白沙罗（Damansara-Shah）Alam高架高速公路（“ DASH”），Sungai Besi-Ulu Kelang高架高速公路（“ SUKE”），Gemas-Johor Baru（JB）电动双轨项目（“ EDTP”）和西部海岸高速公路（“ WCE”）。此外，增长的原因还在于聚合物管材向新加坡市场出口的激增。 Starken Drymix Solutions Sdn Bhd的收入比去年同期的婴儿期增长了很多。

防火和木门制造业务的收入增长是由于在2018年最后一个季度收购了钢制门框业务以及自2019年2月中旬开始运营的木门业务所致。毛利率为9.61％，较上年同期的9.32％增长0.29％。增长的主要原因是Starken AAC 2（“以前称为Sage Evergreen”）的回升业绩，而不是2018年第二季度出现的初始开工亏损。此外，毛利率的改善也因Starken Drymix Solutions Sdn Bhd和G-Cast UHPC Sdn Bhd的本季度所赚取的毛利润，而不是去年同期的持续亏损以及建筑材料和物流服务分销利润率的提高。

与2018年第二季度相比，本季度这集团的行政费用减少了55万令吉，这是由于在亏损业务中采取了削减成本措施以及模块化建筑解决方案部门减少了行政人员，因为柔佛州Daerah哥打丁宜市的Mukim Pengerang最初的六个综合工人综合楼已接近完工阶段。

应占联营公司的利润从去年同期的74万令吉亏损大幅增加275万令吉。增长主要来自Net Energy Metering（“ NEM”）屋顶项目，即改造后的太阳能光伏系统和建筑集成光伏系统（“ BIPV”），尤其是来自工业和自用行业的系统。此外，总值1亿5807万令吉的三个大型太阳能光伏（“ LSSPV 2”）分包项目工作也作出了贡献，该项目位于霹雳州的38.7 MWp DC太阳能发电厂计划于2019年最后的季度完成。当前财务季度的有效税率为26.90％，低于2018年同期的28.90％，这主要是由于制造业有未吸收的亏损和资本准备金。

2Q19 vs 1Q19：
这季，集团的营业额为2.5001亿令吉，较上一季度的2.4268亿令吉增加732万令吉。由于建筑业的节日假期，由于第一季度工作时间较短，第二季度收入略有增长。

由于预制混凝土产品，聚合物管，G-Cast UHPC和Green Cement的业绩有所改善，该集团的营业利润较上一季度增加到1097万令吉，比上一季度增加171万令吉或18.45％。随着工场工作的顺利进行，预制混凝土产品的销售，即用于当地基础设施项目的顶管，梁，箱涵和U形排水管的销售有所增加。第二季度，随着更多污水处理项目的成功招标，向新加坡出口的用于公用事业委员会（“ PUB”）和住房发展委员会（“ HDB”）项目的聚合物管道逐渐增加。去年获得的超高性能混凝土（UHPC）项目已逐步计划在本季度安装。

前景：
这集团对前景感到乐观，这得益于制造业部门的健康订单以及联营公司不断增长的收益贡献。 AAC砌块和AAC面板向菲律宾和新加坡市场出口的增加预计将提高位于柔佛州哥打丁宜市的第二个AAC工厂的当前利用率，该工厂的年装机容量为600,000立方米，从30％增至50％。他们预计2019年下半年产量将提高，以满足出口市场。这集团将以总现金代价330万比索（约合270,000.00令吉）认购Starken Philippines Incorporation（“ SPI”）30％的股份。认购事项完成后，Starken Philippines将成为Starken Malaysia和Chin Hin的联营公司。这标志着这集团进军菲律宾市场的重大投资。这项投资是一项积极举措，预示着良好的盈利能力。

Starken Drymix Solutions Sdn Bhd在2019年第二季度继续录得利润，随着最近获得越来越多的项目，其生产利用率将增加，与其订单库保持一致。 G-Cast UHPC Sdn Bhd的业绩已大大改善，并且与去年取得的项目进展一致，在第二季度几乎扭亏为盈，预计将在下一季度为集团带来积极的贡献。

他们的联营公司Atlantic Blue Sdn Bhd已获得监管机构的批准，可通过special purpose vehicle：Solarvest Holdings Berhad（“ SHB”）在大马证券交易所（“ Bursa证券”）的Ace市场上市。计划于2019年第四季度进行上市。根据政府推动太阳能光伏（PV）议程并鼓励在房地产开发商之间安装的倡议，他们被允许为新项目保留Net Energy Metering（NEM）配额，从8月5日开始。这是政府采取的措施之一，以实现到2025年在全国组合中（不包括大型水电）的可再生能源（RE）达到20％的目标。他们希望其联营公司继续提供服务，因其有强大的订单量以及在大型太阳能3（“ LSS3”）计划的第三个周期下为招标更多太阳能工作而做出的积极努力，将会取得更好的成果。 Chin Hin已着手减低负债计划，并已开始通过卖掉非核心资产（如商店办公室和空置地盘）来降低集团资产负债率，以减少借款。
-----------------------------
James Ng Stock Pick Performance:
Since Recommended Return:

a) FRONTKN (FRONTKEN CORP BHD), recommended on 12 Aug 18, initial price was RM0.715, rose to RM1.73 (dividend RM0.025) in 1 year 1 month 26 days, total return is 145.5%

b) PRLEXUS (PROLEXUS BHD), recommended on 25 Aug 19, initial price was RM0.455, rose to RM0.88 in 1 month 15 days, total return is 93.4%

c) KKB (KKB ENGINEERING BHD), recommended on 1 Jul 18, initial price was RM0.795, rose to RM1.45 (dividend RM0.04) in 1 year 3 months 9 days, total return is 87.4%

d) GBGAQRS (GABUNGAN AQRS BHD), recommended on 16 Dec 18, initial price was RM0.80, rose to RM1.31 in 9 months 25 days, total return is 63.8%

e) JAKS (JAKS RESOURCES BHD), recommended on 20 Jan 19, initial price was RM0.575, rose to RM0.935 in 8 months 21 days, total return is 62.6%

f) MI (MI TECHNOVATION BERHAD), recommended on 2 Jun 19, initial price was RM1.67, rose to RM2.41 (dividend RM0.01) in 4 months 8 days, total return is 44.9%

g) KGB (KELINGTON GROUP BHD), recommended on 23 Dec 18, initial price was RM0.965, rose to RM1.32 (dividend RM0.018) in 9 months 17 days, total return is 38.7%

h) PWROOT (POWER ROOT BHD), recommended on 7 Oct 18, initial price was RM1.59, rose to RM2.10 (dividends RM0.083) in 1 Year 4 days, total return is 37.3%

i) ELKDESA (ELK-DESA RESOURCES BHD), recommended on 18 Nov 18, initial price was RM1.27, rose to RM1.64 (dividend RM0.07) in 10 months 23 days, total return is 34.6%

j) PESTECH (PESTECH INTERNATIONAL BHD), recommended on 2 Jun 19, initial price was RM1.04, rose to RM1.37 in 4 months 8 days, total return is 31.7%

k) BAUTO (BERMAZ AUTO BHD), recommended on 14 Oct 18, initial price was RM1.89, rose to RM2.19 (dividend RM0.22) in 11 months 27 days, total return is 27.5%

l) SERBADK (SERBA DINAMIK HOLDINGS BHD), recommended on 29 Jul 18, initial price was RM3.96, rose to RM4.25 (dividends RM0.111) in 1 Year 2 months 11 days, total return is 10.1%

m) VIZIONE (VIZIONE HOLDINGS BHD), recommended on 30 Dec 18, initial price was RM0.85, rose to RM0.90 in 9 months 10 days, total return is 5.9%

我希望将我的策略分享给读者，希望他们在阅读后能够表现出色。我正在使用基本面分析（Fundamental Analysis）：

预计公司每年的增长率必须> 14％

我想说服读者学习基本面分析FA以便能从股市赚钱。

我为想从马来西亚股票市场赚钱的读者提供STOCK PICK服务。想订阅我的邮件以从股票市场获取良好回报的人，可以通过jamesngshare@gmail.com 或我的FB页面与我联系。

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10月19日星期六：Silka Johor Bahru Hotel, Johor Bahru 5份点心

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10月20日星期日：Silka Johor Bahru Hotel, Johor Bahru

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12月28日星期六：Hotel Sri Petaling, KL

3) 【公司业绩分享会】:
2p.m. – 7p.m.，免费茶和咖啡

10月18日星期五：Silka Johor Bahru Hotel, Johor Bahru 5份点心

12月20日星期五：AG Hotel Penang, George Town 2份点心

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有兴趣的朋友，可以电邮或PM FB page联络我
email：jamesngshare@gmail.com
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这个分享纯属讨论以及领域的分析，买或卖自负。请Like和Share这个post。最终决定永远是你的，谢谢。

James Ng
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[CHIN HIN GROUP BHD: Chin Hin will be subscribing for a 30% stake in Starken Philippines Incorporation (“SPI”) for a total cash consideration of 3.30 million peso (around RM270,000.00), already obtained the approval from regulators to proceed with the listing on the Ace Market of Bursa Malaysia Securities Berhad (“Bursa Securities”), via a special purpose vehicle, Solarvest Holdings Berhad (“SHB”)]

2Q19 vs 2Q18:
Manufacturing of autoclaved aerated concrete (“AAC”) and precast concrete and the manufacturing of fire-rated and wooden door sector recorded increase in revenue. The higher revenue from the manufacturing of autoclaved aerated concrete (“AAC”) block was driven by the growth in demand for panel in the local and Singapore market. Besides, there was an increase in demand for AAC block in the overseas market especially in the Philippines. The increase in revenue from the precast concrete products were due to the supply of prestress and reinforce concrete beam, crosshead, cable trough and emergency walkway to the mega infrastructure projects in town i.e. Duke Highway, Mass Rapid Transit (“MRT”), Light Rapid Transit (“LRT”), Damansara-Shah Alam Elevated Expressway (“DASH”), Sungai Besi-Ulu Kelang Elevated Expressway (“SUKE”), Gemas-Johor Baru (JB) Electrified Double Track Project (“EDTP”) and West Coast Expressway (“WCE”). Furthermore, the increase also contributed by the surge in export of polymer pipes to Singapore market. Starken Drymix Solutions Sdn Bhd’s revenue has increased considerably as opposed to its infant stage in the preceding year corresponding quarter.

The increase in revenue from the manufacturing of fire-rated and wooden door sector was contributed by the steel door frame business which was acquired in the last quarter of 2018 and the wooden door business which has started operation since mid of February 2019. The gross profit margin of 9.61%, registered an increase of 0.29% as compared to the preceding year corresponding quarter of 9.32%. The increase was primarily due to the pick-up performance in Starken AAC 2 (“formerly known as Sage Evergreen”) as opposed to the initial start-up losses sustained in the second quarter of 2018. Moreover, the gross profit margin improvement is also contributed by the gross profit earned in the current quarter for Starken Drymix Solutions Sdn Bhd and G-Cast UHPC Sdn Bhd as opposed to the gross losses sustained in the preceding year corresponding quarter and the improved margin from the distribution of building materials and logistics services.

The Group’s administrative expenses for the current quarter under reviewed has decreased by RM0.55 million as compared to the second quarter of 2018 was contributed by the cost cutting measure undertaken in the losses making business and the reduction of administration staff in Modular Building Solutions sector after the initial six block of integrated workers complex in Mukim Pengerang, Daerah Kota Tinggi, Johor has almost reached its completion stage.

Share of profit of associate companies has increased incredibly by RM2.75 million from a loss of RM0.74 million in the preceding year corresponding quarter. The increased were contributed significantly by the Net Energy Metering (“NEM”) roof-top projects i.e. retrofitted solar PV system and Building-Integrated PV (“BIPV”) system especially from the industrial and self-consumption sector. In addition, the increased also contributed by the three large scale solar photovoltaic (“LSSPV 2”) subcontracting projects work worth a total value of RM158.07 million, 38.7 MWp DC solar farm located in Perak scheduled to be completed by the last quarter of 2019. The current financial quarter effective tax rate of 26.90% was lower than the corresponding quarter of 2018 of 28.90% mainly due to the unabsorbed losses and capital allowances carried forward from the manufacturing sectors.

2Q19 vs 1Q19:
For the quarter under review, the Group posted revenue of RM250.01 million as compared to RM242.68 million in the preceding quarter, an increase of RM7.32 million. The second quarter revenue improved slightly in view of the shorter working months due to the festival holidays observed by the construction industry in first quarter.

The Group reported a higher operating profit of RM10.97 million, an increase of RM1.71 million or 18.45% as compared to the preceding quarter due to the improved performance for precast concrete products, polymer pipes, G-Cast UHPC and Green Cement. Sales for precast concrete products i.e. jacking pipes, beams, box culvert and U-drain for the local infrastructure projects have increased in line with the smooth progress of work at site. Export of Polymer pipes to Singapore for Public Utilities Board (“PUB”) and Housing Development Board (“HDB”) projects were gradually increased in the second quarter as more sewerage projects were successfully tendered. The Ultra High-Performance Concrete (“UHPC”) projects secured last year were progressively scheduled for installation in this quarter.

Prospects:
The Group is optimistic about the outlook of Chin Hin, underpinned by its healthy order book from the manufacturing segment and growing earnings contribution from its associates. The increase export of AAC block and AAC panel to the Philippines and Singapore market are anticipated to bump up current utilisation rate at the second AAC plant located in Kota Tinggi, Johor with installed production capacity of 600,000 m3 per annum from 30% to 50%. They expect the output to be ramped up in the second half of 2019 to fulfil the export market. Chin Hin will be subscribing for a 30% stake in Starken Philippines Incorporation (“SPI”) for a total cash consideration of 3.30 million peso (around RM270,000.00). Upon completion of the Proposed Subscription, Starken Philippines will be an associated company of Starken Malaysia and Chin Hin. This mark a more significant venture by the Group into the Philippines market. This investment is a positive move which bodes well for profitability.

Starken Drymix Solutions Sdn Bhd continued to record profit in the second quarter of 2019 and will increase its production utilisation rate in line with its order bank as more and more projects are being secured lately. G-Cast UHPC Sdn Bhd’s performance has improved considerably and almost turnaround in the second quarter in tandem with the progress of work for project secured last year and is expected to contribute positively to the Group in the coming quarter.

Their associate company, Atlantic Blue Sdn Bhd has already obtained the approval from regulators to proceed with the listing on the Ace Market of Bursa Malaysia Securities Berhad (“Bursa Securities”), via a special purpose vehicle, Solarvest Holdings Berhad (“SHB”). The listing is targeted to take place in the fourth quarter of 2019. In line with government’s initiatives to drive the solar photovoltaic (PV) agenda and encourage installation among property developers, they are allowed to reserve Net Energy Metering (NEM) quota for new projects starting August 5. This is one of the measures taken by the government to achieve the target of 20 per cent of renewable energy (RE) in the national installed capacity mix (excluding large hydro) by 2025. They expect their associate companies to continue delivering better results due to its strong order books and aggressive effort in tendering more solar jobs under the third cycle of the Large-Scale Solar 3 (“LSS3”) scheme. Chin Hin has embarked on the de-gearing plan and has begun to trim its group gearing level via the disposal of non-core assets such as shop offices and vacant sites in order to pare down its borrowings.
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I wish to share my strategy to readers, hope that they can perform well after reading this. I am using Fundamental Analysis:

the forecasted growth of a company must > 14% per year

I wish to convince readers to learn FA in order to make money from stock market.

I am providing STOCK PICK SERVICE for readers who want to make money from Malaysian stock market. Those who want to subscribe to my mailing list to achieve a good return from stock market, you can contact me at jamesngshare@gmail.com or PM me in my FB page.

This sharing is purely a discussion and analysis of the sector, buying or selling at your own risk. Please Like and Share this post. Final decision is always yours, thank you.

James Ng