Yinson, could you answer my few questions?

Dear Yinson IR (Insage)/Management and Cheah Chor Sooi,

After reading this article: Don’t compare us with Serba Dinamik, I have two (2) questions...

Read more: https://whyvalueinvesting.blogspot.com/2021/06/yinson-could-you-answer-some-of-my.html

To reach me at: https://whyvalueinvesting.blogspot.com/2021/06/yinson-could-you-answer-some-of-my.html

Yinson, could you answer my few questions?

Dear Yinson IR (Insage)/Management and Cheah Chor Sooi,

After reading this article: Don’t compare us with Serba Dinamik, I have two (2) questions...

Read more: https://whyvalueinvesting.blogspot.com/2021/06/yinson-could-you-answer-some-of-my.html

Yinson, could you answer my few questions?

Dear Yinson IR (Insage)/Management and Cheah Chor Sooi,

After reading this article: Don’t compare us with Serba Dinamik, I have two (2) questions...

Read more: https://whyvalueinvesting.blogspot.com/2021/06/yinson-could-you-answer-some-of-my.html

@RainT I think you didn't know Choivo was one of big audit firms' ex-employees. He's kind enough to share what he knew and experienced in the audit industry. You're actually a frog in the well…

@JensenChin didn't you bring up the above claim by Choivo to the legal counsel or MCMC?

For your information, QL's subsidiary, Maxincome Resources Sdn. Bhd. [199601010973 (383322-D)] which runs the Family Mart convenience business. As at 31st March 2018, it registered an operating loss of RM 7,111,561 on the back of its revenue of RM 75,158,046 (source: CTOS). On 28th August 2018, it had opened 59 outlets if deriving from this, its revenue would be RM 1.274 million per store.

Read more: https://whyvalueinvesting.blogspot.com/2020/03/ql-resources-is-it-undervalued-how-to.html

Before placing your bets, would you calculate your risks first?

Hevea's hidden risks:
1. RTA segment is its core revenue contributor but it relies upon two (2) major customers heavily to generate its profits. It has the similar risk like Focus Lumber -- customer concentration risk.
2. Raw material risk
3. Labour supply risk (It's labour intensive)
4. Forex risk

p/s: It's too much uncertainties that being an investor cannot easily handle it. After understanding the above risks, are you still interested on it?

Valuation wise, its calculated price would be ranging between:
1. 0.26 (PE 10.50) to
2. 0.71 (PE 28.50).
How about the industry PE? 16.39 PE.

Read more:
1. https://whyvalueinvesting.blogspot.com/2020/01/did-heveaboard-ceo-execute-what-he.html
2. https://whyvalueinvesting.blogspot.com/2020/02/can-we-simply-trust-businessfinancial.html
3. https://whyvalueinvesting.blogspot.com/2020/02/were-heveaboards-key-management-also.html
4. https://whyvalueinvesting.blogspot.com/2020/02/whether-heveaboard-berhad-is-operated.html

Whether HeveaBoard Berhad is operated by candid and competent management?

Source: https://whyvalueinvesting.blogspot.com/2020/02/whether-heveaboard-berhad-is-operated.html

Were HeveaBoard's key management also losing their confidence?

Source: https://whyvalueinvesting.blogspot.com/2020/02/were-heveaboards-key-management-also.html

Can we simply trust the business/financial media press?

Source: https://whyvalueinvesting.blogspot.com/2020/02/can-we-simply-trust-businessfinancial.html

Can we simply trust the business/financial media press?

Source: https://whyvalueinvesting.blogspot.com/2020/02/can-we-simply-trust-businessfinancial.html

Did HeveaBoard CEO execute what he planned?

Source: https://whyvalueinvesting.blogspot.com/2020/01/did-heveaboard-ceo-execute-what-he.html

nikicheong, so now you have the answer?

The question here: Mestron just raised RM 25.28 million on 18th June 2019, but on 1st August 2019, they proposed to dispose of two (2) one-half storey linked factories -- Isn't it strange that within very short period, Mestron required the working capital again after listing of forty five (45) days?

Source: https://whyvalueinvesting.blogspot.com/2019/08/why-mestron-dispose-of-two-2-one-half.html

What caught my attention on Mestron?

Source: https://whyvalueinvesting.blogspot.com/2019/08/newly-listed-mestron-holding-berhad.html

https://whyvalueinvesting.blogspot.com/2017/02/the-brotherhood-between-london-biscuits.html

https://whyvalueinvesting.blogspot.com/2017/02/the-brotherhood-between-london-biscuits.html

As at 31 March 2018, the Maxincome Resources Sdn. Bhd.'s (383322-D) accounting data extracted from the CTOS, it shows a net loss of RM 7,111,561 instead of a net profit of RM 7.11 million -- It couldn't have a net margin of 9.4% and also the QL management said that Family Mart business still had not been yet breaking even, how could it make profit as at 31 March 2018?

I think you have to verify the source that you took from.

Anyone who is interested to have the set of FM accounting data, kindly let me know I share with you.

Patrick thank for your info.

DualShock,

From what I know about the furniture and particleboard:
Φ Rubberwood-based manufacturers
1. Liihen
2. Latitude
3. Pohuat

Φ Particleboard manufacturers
1. Hevea
2. Evergreen Fibreboard
3. Meico Chipboard
4. SYF Resources

Hevea's raw materials are made up of the rubberwood's residues.

My doubt was those peers didn't raise the poor result caused by the shortage of raw materials (rubberwood's residues) due to *wet weather*, whereas the unrelated manufacturer, Liihen still able to chalk up a good result without facing the shortage of raw materials (rubberwood) -- I think my expression were not clear cut enough, hoping that you could catch what I tried to connect.

Extract from the latest financial result Q1 31 Mar 2019:

Particleboard Manufacturing Sector
The revenue and profit before tax reported for this period decreased by RM19.24 million or 41.47%
and RM6.25 million or 156.30% respectively as compared to the same period last year. The lower
revenue and loss before tax were mainly due to [1] lower sales and production volumes as a result of major shut down for preventive maintenance of over 3 weeks, the preventive maintenance also
incurred additional cost. In addition, [2] shortage of raw materials due to the wet weather had also
resulted in lower production output, thus accounting for a higher average cost of production during
the period as economy of scale could not be attained.

Could someone who will attend the AGM to ask the below questions:
[1] How come will have a major shutdown for preventive maintenance? Will the peers conduct the same manner or Hevea has to take lesson on this by referring to the peers' manner as to the preventive maintenance?

[2] Shortage of raw materials due to the wet weather -- Will this a real fact behind the poor financial performance? By referring to the peers, i.e. Evergreen and Mieco they didn't provide such reasons as to their poor financial performance. If not forgotten, Hevea's particleboard is manufactured from the rubberwood residues -- just wonder Hevea management did tell the fact behind the poor financial performance as the same quarter that Lii Hen who is manufacturing rubberwood-based furniture, it chalked up a good financial result and not facing any shortage of raw materials.

Or anyone here equip with the related industry/business knowledge that can enlighten me the above two questions that I asked.

Oh I see. I just saw it (written in the announcement)...

Thanks Striker90.

Hi Jady, how do you derive at 31.54% of revenue and 47.77% of profit?

Wow. So simplified. Thanks.

Sebastian why u so confident on this company, mind to share your view?

dunspace Thank you! I wonder how can an article end up at the headline of the counter? Any idea?

Your blog's title must have [Latitude].

kcchongnz Oh I see. Which means only your students can be in the group? If you have any group is open to whom pursue the same investment philosophy, I wish you can invite me. Thanks! Nice to meet you.

hooi The title and focus of this seminar is on art. To be precise, the art of successful investing.
As speaker for the day, he will not be talking specifically in his capacity as a fund manager. He will be putting on his investment adviser hat instead - hence, charting, macro-economics, and financial analysis will all be touched upon.

....

Financial Statement Analysis
Summary Contents
Basic Identity of Accounting
Financial Statement Analysis
Case Study A: Kotra Industries
1. History
2. Financial Highlights
3. The Dupont Method
4. Warning Signs
5. Peer Comparison

Case Study B: Signature International
1. History
2. Financial Highlights
3. Ratio Analysis
4. Profitability Ratio
5. Warning Signs
14/05/2015 11:42

Hi hooi, could you kindly share about the warning signs of Signature International that Mr. Tan had shared during his seminar? Appreciate if you do share with me at bosx8989@gmail.com. I'm also interested in discussing other stocks with you according to the fundamental analysis.

kcchongnz may I know do you have a private discussion group?

Hi chabalang, I'm interested in making friend with you. Your comments are informative and it has shown that you did very in-depth analysis on it. I wish that we can be a friend and discuss it further. If you're interested toO, kindly drop me an email at bosx8989@gmail.com.

Looking forward to your reply. ^^

oregami could we make a friend? If interested, please drop me an email at bosx8989@gmail.com.

Hi RicheHo and chl1989 could we make a friend? If interested, kindly text me through bosx8989@gmail.com. Nice to meet you guys ya!

Xiaoxiao, PROTON!

Steve Ong Wei Siang, I'm interested to make friend with you as I find something different from you so I hope that we can learn from each other. If interested, please drop me a message at bosx8989@gmail.com. -- Hoe

Hi JT Yeo and Steve Ong Wei Siang,

May I make friend with you guys? If you're willing to, please kindly drop me an email at bosx8989@gmail.com for further connection.

Nice to meet you all.

"Yes, this is indeed a good company. i used to work there for 4 years and knowing the humble MD, Mr Teong Teck Lean, he is low profile, but very determined person.... Unfortunately, i have never bought this counter. Perhaps, i should buy this monday and hold it.. Knowing his personality, i guess he will never let the company down.... :D"

Hi, Ali Khair Al-Juhri, could you tell me more about the working environment in GDex? Also, mind to share about your position in your ex firm, GDex and tell me more about the MD, Mr. Teong Teck Lean's characteristics? And how do you look at GDex with other logistics firms?

If not that convenient to discuss openly, you may reach me at boaster_kokhoe@hotmail.com.

Thanks in advance.

jellygal27 could I make a friend with you? If yes, please drop me an email at boaster_kokhoe@hotmail.com

25-07-2014

Financial performance review:
As of 3rd quarterly result 2014, HOMERIZ has achieved 98% (17.6 million) of FYE13 net profits (17.9 million) on the back of 83.% (93.9 million) of FYE13 revenue (112.9 million).

From this, HOMERIZ is most likely able to overtake the revenue of FYE13 as they just have to meet another 19 million to break even with the revenue of FYE13. The extra is an additional bonus for the shareholders.

To me, HOMERIZ might be lack of the growth drivers to stimulate its revenue and its revenue would be highly correlated with the the fluctuation of US Dollar.

Let's see how the management copes with the facing risks, so as to spur growth.

jimstock and goflykite , these two guys I would like to make friend with you if you're interested to do so, please drop me a message at boaster_kokhoe@hotmail.com.

Financial performance review:

19-07-2014
As of 4th quarterly result 2014, TAS has achieved 213% (28.8 million) of FYE13 net profits (13.5 million) on the back of 184% (254.3 million) of FYE13 revenue (137.9 million).

Against the preceding quarter, it recorded lower revenue of RM61.3 million representing a decrease of RM53.0 million or 46% below.

Commentaries:
Due to the lower revenue against the preceding quarter, it has plunged to RM1.46 (with a gap down) from the day before, at RM1.59 or a plunge of 8.18%. Did the investors react rationally?

However, the overall performance is still maintained ideally. Although its gross margin dropped to 13.8%, a decrease of 3.2 ppts from 17%, its net margin inched up to 11.3%, an increase of 1.5 ppts from 9.8% against the preceding financial year. Additionally, its ROE has increased to 16.5% from 8.8% as at FYE13. It signals that TAS has raised a huge short-term loan of RM35.8 million to fund its business activity. However, this is still acceptable because of its business nature.

Taking cue from the balance sheet, with an amount due from contract customers of RM106.4 million and a spike of 72% in inventories against the preceding financial year, I believe that TAS still has a healthy order book so as to sustain its business. However, its coming result will be impacted by minor slowdowns in business activity during the festive seasons at the beginning and end of each calendar year.

Let's stay tuned.

Intelligent investor, do you have Facebook account? Drop me a message at boaster_kokhoe@hotmail.com if you're willing make friend with me.

stanleysee, I've sent please confirm receipt. Thanks.

Every ratio's formula, you need to keep in mind and do not try to go shortcut because that if you're unable to master the ratios properly then you will interpret wrongly as the ratios could be manipulated easily. If you directly plug from those websites provided, then how can you 'feel' the overall company's operations?

I've emailed to you, please check it out.

Intelligent Investor, I interpreted your message wrongly. Yup 2009's ROE one was damn high due to the component of the leverage (from DuPont analysis).

It's good to use DuPont ROE to find the culprit as you mentioned.

For your information, basically 1st year of listing those ratios are weird if you notice on it.

Anyway, I see you share a lot of your hardwork through i3 if possible, we can exchange knowledge and information to stick with the principles of being a fundamentalist.

"HOMERITZ ROE and ROCE is 60% and 51% respectively and this is a very high number. Do check why it drop to 42.85 and 31.98 on year 2010 and further drop to 21.85 and 16.46 on year 2013. Do a DuPont analysis to check out where the number come from. And, check out who is the culprit."

Good point! Previously, its ROE was so high as it was highly geared.

screwdriver, first of all you gotta define what kinda businesses that both companies run. Hevea is involved in wood-related furniture products but Homeritz is primarily engaged in upholstered furniture products and mainly in the export market. They're actually different business models, although they're in the same industry/sector. So better don't compare it like this.

As for the manufacturing business, you've to keep an eye on the cash conversion cycle (DIO + DSO - DPO), CAPEX, staff costs, gearing and margins.

Give me your email, I send you a book to learn financial ratios. You must make sure that you gotta finish reading up it and directly apply.

Note: NOSH = Number of shareholding, in case that you do not understand Intelligent Investor's word.

Hi Jonny cash,

Could I know how do you get those abovementioned transactions traded? Through the software or?

Thanks stockoperator!

Hi stockoperator, nice to meet you. Mind to share your ideas as to how to evaluate the biz model and people/management? ^^

Hey dude, knowledge is unlimited why do you wanna try to limit yourself? Nice to meet you.