Dear fellow traders, 

For 2016, I will be sharing some fundamentally sound counters with upside growth progressively through out the next few months. These are just a few of my humble highlights (not recommendation), feel free to have some intellectual discourse on this. To join my telegram channel : https://telegram.me/tradeview101

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 Value Pick No. 2: UPA Corporation Berhad (TP RM2.77)

Quarterly Results (3Q) of UPA announced on 23rd Nov was fantastic. UPA achieved record quarterly results with a jump of 1.7 times EPS from 4.17 sens to 7.38 sens YoY. The results was spectacular and it can be seen that the weak MYR truly benefitted many export counters which traditionally did not enjoy profit margins of such. Additionally, there is steady growth of revenue from the immediate quarter from RM36 million to RM45 million. So it is not a case of pure forex gain translating to bottomline of the company. The annual dividend of 8 sens provides a decent 3.7% yield. In fact, UPA is one the few counters with export exposure that has yet to truly run with a PE less than 10 and share price below its NTA (RM2.51). If you believe in the truth of value investing, jumping into UPA is truly a no brainer. 

Below is the core business UPA is involved in:

Core Business Our core business is represented by 3 of our main divisions.   UPA PRESS SDN. BHD. The Press division is involved in the manufacturing of diaries and paper related products. Under the guidance of our executive director, Mr. Chua Ngeun Lok, UPA Press has grown to be the biggest diary manufacturer in Malaysia, and one of the leading diary and paper products manufacturers in Asia.   UPA MACHINERY SDN. BHD.     The Machinery division is the sole agent of Komori, an undisputable leading brand of printing machine in Japan. The division is also involved in reconditioning and refurbishment of Web printing machinery, Sheet fed printing machinery and book binding machinery. The division has grown to be one of the biggest printing equipment rebuilding factory in South East Asia.     MACRO PLASTIC SDN. BHD. Macro Plastic Sdn. Bhd., a wholly owned subsidiary of UPA Corporation Bhd., is involved in the manufacturing of rigid films for food, pharmaceutical, electrical and electronics and semiconductor packing applications. The modern manufacturing plant is equipped with state-of-the-art machines, and adopts the ISO 9000 quality system management to ensure consistent quality and service.

 

 

Food for thought: Happy New Year to all! May 2016 be a better year.

May good fortune come your way!

Disclaimer: This is not a recommendation to trade. It is merely the expression of the author's personal opinion and shall not be held responsbile for potential gains or losses executed by readers.