THE INVESTMENT APPROACH OF CALVIN TAN
ENGTEX VERSUS JAKS: Which Is The Better Water Pipes Manufacturer (Calvin Tan Research)
calvintaneng
Publish date: Tue, 13 Jun 2017, 02:32 AM
calvintaneng
0 1,844
Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
ABOVE IS A LARGE WATER PIPE BEING TRANSPORTED IN JOHOR PASIR GUDANG HIGHWAY
Hi guys,
While driving along Pasir Gudang Highway I took a snapshot of this trailer transporting this Huge Water Pipe.
Now I started to think of Engtex & Jaks. Which will be the better one for investment at this point in time?
Calvin's conclusion is?
ENGTEX IS THE WINNER!
Why is it so? Let Calvin Tan Research gives you the reasons
See Jaks latest report
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
31 Mar 2017
|
31 Mar 2016
|
31 Mar 2017
|
31 Mar 2016
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
154,788
|
122,807
|
154,788
|
122,807
|
| 2 | Profit/(loss) before tax |
2,958
|
242
|
2,958
|
242
|
| 3 | Profit/(loss) for the period |
2,622
|
-1,178
|
2,622
|
-1,178
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
7,544
|
1,071
|
7,544
|
1,071
|
| 5 | Basic earnings/(loss) per share (Subunit) |
1.72
|
0.24
|
1.72
|
0.24
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
1.1900
|
1.1500
|
||
Definition of Subunit:
In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
| Country | Base Unit | Subunit |
| Malaysia | Ringgit | Sen |
| United States | Dollar | Cent |
| United Kingdom | Pound | Pence |
And see ENGTEX's latest result below:
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
31 Mar 2017
|
31 Mar 2016
|
31 Mar 2017
|
31 Mar 2016
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
253,817
|
261,407
|
253,817
|
261,407
|
| 2 | Profit/(loss) before tax |
24,089
|
20,582
|
24,089
|
20,582
|
| 3 | Profit/(loss) for the period |
18,347
|
15,164
|
18,347
|
15,164
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
17,896
|
14,656
|
17,896
|
14,656
|
| 5 | Basic earnings/(loss) per share (Subunit) |
5.67
|
4.86
|
5.67
|
4.86
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
1.7600
|
1.7600
|
||
1) ENGTEX'S EPS IS 17,896,000 over a revenue of 253,817,000 or 0.07%
JAKS' EPS is 7,544,000 over a revenue of 154,788,000 or 4.8%
So ENGTEX's 7% beats JAKS 4.8%
2) ENGTEX'S Share Price is Rm1.35 over NAP of Rm1.76. So there is a discount of 30%. This meets Ben Graham's Margin of Safety (Ben wants a discount of at least 30% to NTA)
JAKS at Rm1.54 with NAP of Rm1.19 is 29.4% more than NAP. So Jaks failed Ben Graham's Margin of safety.
3) ENGTEX Pays a dividend consistently for the last 10 years while Jaks has no dividend at all for the last 10 years
See ENGTEX
| 07-Jun-2017 | 20-Jun-2017 | DIVIDEND | Final Dividend | RM 0.01 |
 |
| 28-Apr-2016 | 14-Jun-2016 | DIVIDEND | Final Dividend | 1.5000% |
|
| 29-Apr-2015 | 11-Jun-2015 | DIVIDEND | Final Dividend | 2.0% |
|
| 25-Nov-2014 | 05-Dec-2014 | BONUS_ISSUE | Bonus Issue | 1 : 2 |
|
| 29-Apr-2014 | 11-Jun-2014 | DIVIDEND | Final Dividend | 3.5% |
|
| 29-Apr-2013 | 13-Jun-2013 | DIVIDEND | Final Dividend | 3% |
|
| 27-Apr-2012 | 13-Jun-2012 | DIVIDEND | Final Dividend | 4% |
|
| 28-Apr-2011 | 13-Jun-2011 | DIVIDEND | Final Dividend | 3% |
|
| 29-Apr-2010 | 11-Jun-2010 | DIVIDEND | Final Dividend | 2% |
|
| 29-Apr-2009 | 11-Jun-2009 | DIVIDEND | Final Dividend | 1.5% |
|
| 29-Apr-2008 | 04-Jun-2008 | DIVIDEND | Final Dividend | 1.5% |
|
| 13-Sep-2007 | 25-Sep-2007 | RIGHTS_ISSUE | Rights Issue | 1 : 5 |
|
| 23-Aug-2007 | 05-Sep-2007 | STOCK_SPLIT | Others | 2 : 1 |
|
| 25-Apr-2007 | 31-May-2007 | DIVIDEND | Final Dividend | 2% |
|
| 02-May-2006 | 01-Jun-2006 | DIVIDEND | Final Dividend | 2% |
|
4. ENGTEX is now making Mild Steel Pipes with 7 feet Diameter - beaten Jaks with Only 6 feet diameter.
So while Jaks goes to Vietnam for IPP Engtex has upgraded its Dutile Iron Pipes & mild steel pipes to capture the Lion Share of Booming Iskandar.
Engtex kept to its knitting while Jaks is venturing into uncertain IPP. See how UMW suffered when it ventured into UMW O & G?
ENGTEX Kept to its Field of Competence while Jaks wandered off into uncertainties.
5) ENGTEX has a more transparent management than Jaks in its Reports
Go see the Properties Owned By Engtex in the Annual Report
Example:
Geran 348543, Lot 112268 Mukim Of Tebrau, District of Johor Bahru, State of Johor, Johor
No.34, Jalan Setia Tropika 1/14, Taman Setia Tropika, 81200 Johor Bahru, Johor.
2 Double Storey Shop/ Office
Freehold
Date of Purchase 31-Dec-14
Size1,680 sq ft (Built up 3,360 sq ft) Price Rm1,027,000
See how ENGTEX Even listed the exact address of its Property. Jaks did not.
6) WATER IS A NECESSITY OF LIFE FOR SURVIVAL WHILE ELECTRICITY IS NOT.
Our human bodies consist of 75% water. We can't live without water. We can still survive without electricity. While electricity is an option water is a must.
So from all these angles of EPS, NTA, Dividends, Keeping to Its Knitting & Transparency & Human Necessity ENGTEX Beats Jaks handsdown
ENGTEX IS STILL UNDERVALUE WHILE JAKS IS NOW OVERVALUE
Please do your own investigation & invest accordingly
Best regards
Calvin Tan
Singapore
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Discussions
Be the first to like this. Showing 28 of 28 comments
Engtex was recommended by stock god. Let me put some faith in him. He must know something I dont
2017-06-13 07:33
Totally agree with you, this so hai just wanna find someone to talk. He didn't buy at all, all his money still stuck in those Holland stocks
2017-06-13 07:35
Engtex is low pe, low pb. However debts slightly high tough cash flow okm let's monitor it more to find more answer. It might be a good stock for future.
2017-06-13 07:37
I hv intention to buy Engtex but after tis sorchai article I better put aside becos I know he is the famous Terbalik King in Bursa.
2017-06-13 08:34
I dont want to be offended but this guy is definitely juz aiming for KYY's chosen counter
2017-06-13 08:45
I guess not to be too negative and lets study back fundamental. Is Engtex really that good?
2017-06-13 08:51
Seriously, I think Engtex worth the monitor.
Thus is a sentiment iver its water play going to finalise on Ict 2017.
(If no other mumbo jumbo).
Tough resistant at $1.48, let's see.
2017-06-13 08:51
He knows KYY is also quite a hated guy in i3 so he chose to aim him to grab some attention. Must be a lonely old fark from Singapore
2017-06-13 09:00
Good morning paperplane & all here.
All steel companies have high borrowings
Prestar (Bank loan Rm234 millions)
Masteel (Rm309 millions - short term loans)
Jaks ( Rm445 millions)
Engtex (Rm511 millions)
If you look carefully, ENGTEX is backed by High quality Assets like Shophouses.
So ENGTEX has high margin of safety Plus Growth
2017-06-13 09:21
For comcorp only one solitary factory in Kedah
Go SEE ENGTEX long list of High Quality Assets
2017-06-13 09:25
It's like COMel want to bancrupt wor....
Then now, COMel going up from 0.780 till $1.12 now.
Why change tone fast ger ?
2017-06-13 09:26
Haiyoh,
Next time must sharing view not good to jump decision straight away.
U cross checking the more u are more precise lor.
Anyway, Engtex has already in my wacth list.
2017-06-13 09:28
Jaks has had its price run. Fully valued for now. Engtex, on the other hand, has much higher margin of safety, hence a better bet for now.
2017-06-13 16:10
Agreed. But Jaks got backing from Super Investor to turbo charge its price.
2017-06-13 23:11
Good,
After stale bulls taken away Engtex should move up solidly on its own strong fundamental.
2017-06-15 09:59
ehhhh.....this article miss something....the first quarter result profit after tax should exclude the gain on disposable a piece of vacant industrial in johor.....
2017-06-16 16:27
Wee Kian Ku
I look at Engtex from 2 investment angles:
1) ENGTEX'S MAIN FOCUS IS WATER PIPES
2) ENGTEX'S SECORDARY FOCUS IS IN PROPERTY INVESTMENTS.
SO SEE THE WHOLE PICTURE OF WATER PIPES PLUS PROPERTY INVESTMENT BUSINESS.
SOME ARE SKILLFUL WITH RIGHT HAND WHILE LEFT HAND IS REDUNDANT.
SOME ARE LEFT HANDED PEOPLE.
ONCE A WHILE YOU SEE A PERSON WITH EQUAL SKILL IN BOTH RIGHT HAND AND ALSO LEFT HAND.
AND ENGTEX HAS SKILL IN BOTH.
AND BOTH CONTRIBUTE WELL TO OVERALL GOOD PERFORMANCE
2017-06-16 19:19
Cinqueterre,
Look at intrinsic value and invest accordingly.
Price going down does not matter if company is doing fine.
See Calvin's Wangzheng closed at Rm1.62 today at a new all time high.
Last time when I called for a buy on WangZheng the market responded sheepishly.
Now that Hong Kong investor offers to take WangZheng private people only start interested and chased it to new high.
So just buy while cheap. Don't care how others react. One day the Value of Engtex will emerge like WangZheng and people might also chase engtex into overvaluation.
By then you must resist the urge to chase.
2017-06-16 19:25
Rubbish article... a fresh grad with 2years experience in investment can easily beat you.
2017-06-29 23:27
Tan Teng Boo Follower - look at his eclectic portfolio - Nothing wrong with that
2017-07-03 10:49
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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
John Lu
Haha...i told u guy before...this sochai will give 5 stock per month...over 3 years 180 stocks to buy (5×12×3 years)...haha...haha...i keep counting. Calvin Stupid like hell.
2017-06-13 06:52