Main business in home linen, homeware, and bedding accessories. Yoong Onn Corporation Berhad (YOCB) engages in the design, manufacture, distribution, retail, and trading of home linen, homeware, and bedding accessories in Malaysia. Some of the Company's key products brand are Diana, Novelle and Jean Perry. To market its product, YOCB has 17 fully-owned retail outlets under the Home's Harmony brand name.

3Q13 grow 32% YoY to RM5.62m. 3Q13 EPS was 3.51 sen  (vs. 3Q12 level of 2.67 sen). Good earnings growth was due to higher sales through higher consignment and boutique sale. Collectively, 9M13 earnings increase 15% YoY to RM16.34, again due to same reason (better sales).

Good dividend yield of 4.9%. The Group paid 3.5 sen net dividend last year and this year. Based on latest share price of 71 sen, this translates into good dividend yield of 4.9%.

Net cash of RM13.7m. This strong balance sheet should allow the Group to expand its business easily without affecting its ability to pay dividend.

Trading below book value of 86.5 sen. It is surprising to see such a good Company is trading below its Book Value of 86.5 sen. This could be due to not many investors know this stock.

YOCB theoritically worth RM1.00. By applying very low 7x PE to 14.3 sen EPS estimate in FY14, this stock is easily worth RM1.00. For FY13, its 9 month result already achieve 10.21 sen. Make simple assumption 4Q13 can achieve 3.0 sen... FY13 forecast EPS should reach 13.21 sen. I think demand for the Company's product (home linen, homeware, and bedding accessories) is rising as many young couple move into new house and need to buy these stuffs. Hence, FY14E EPS just assume another 8% earnings growth to achieve 14.3 sen. The 7x PE is for small cap stocks which is already 30% discount to current Small Cap Index PE of 10x.

Buy 14,000 YOCB into my paper portfolio. Based on all reasons stated above, I add this stock into my paper portfolio yesterday at 69.5sen (14,000 shares). Hopefully this stock can help this paper portfolio to achieve 30% growth next year.