If the AR satisfies all my above criteria,then only I’ll look at other macroeconomic factors like demand,competitors etc. if fail above criteria I won’t look further.

@unduk
Can you share your view on QL? I’m a share holder of QL as well haha..

@rainbow
Before I decide to invest in a company,regardless of the macroeconomics,I always make sure to flip open their annual report first. Purpose of doing so is to:
1.) know briefly what does the company do to make money
2.) is the company earning money in terms of net profit consistently over the past 3-5 years? (Preferably longer la..)
3.) I prefer slow and steady growth,think QL/TGuan lol..cuz if a company last year earn 1mil..suddenly this year 120mil..that prompts me to scrutinize further..takkan suddenly profit jump so much in a year?
4.) Next I’ll make sure the company has so much cash that it can cover its short term borrowing,but ideally,I’ll want the company’s cash,or at least the total current assets 1.5x its TOTAL LIABILITIES.
5.) if a company satisfies point 4,I won’t be afraid the company bankrupt even in financial recession..
6.) if a company consistently making profit over the years,that’s not enough.Because profit means nothing if they can’t collect the money.That’s where you check if the “receivables” in their current assets,if receivables increases at a rate higher than their revenue,you know the company got problem collecting money lol.
7.) last I’ll take a look at their cash flow statement la,see whether the profit are organic. Cuz the profit can be fabricated by means of selling their properties,INVESTING in OTHER companies! Those are red flags.

Ok la that’s all for now, you gotta read a lot I can’t type all out lol.

@undukngadau no problem,who knows you would’ve helped me discover a gem lol.

Having said that,TGuan is in a much healthier financial position compared to MFCB based on financial report alone la,can use my same thought process to apply in TGuan latest QR.

I took a look at mfcb’s share price trend,it does look good on the surface. So I quickly read through their latest sept QR. Here’s what I found (I’ll opine rationally, disclaimer I don’t own mfcb shares,and figures in rm’000)

1.) something that pops out right immediately is their YoY net profit took a huge leap from 15,568 to 107,754.

So I’ll wonder where does this huge profit come from...?

2.) I found that in the cash flow statement under operating activities,net change in assets -143,222.

3.) under cash flow for financing activities: they took a huuuggee loan of 628,217.

4.) hence their cash and cash equivalents at the end of period jumped from 87,954 to 129,804.

5.) next,the asset quality. First glance..total non-current assets wayyy more than current assets. To my surprise, their non current assets mostly made up of Intangible assets lol, up to 76.2%, which cannot be taken into account when calculating price value per share. If I include “goodwill” into its weightage,the numbers gonna be way more uglier.

6.) now current assets,it has cash reserve worth of 144,486. But the short term borrowings already amounted to 149,106. Do you think they can pay off their short term debt? I doubt so..again I haven’t even included its long term debt..

But the share price memang nice...all the way up over the years..

In conclusion: MFCB’s latest jump in net profit attributed to selling assets,it doesn’t have enough cash to pay off debt in short term. If the company goes bankrupt there really isn’t anything valuable to say the least.

TLDR: MFCB is overvalued. Just my 2 cents, cheers.

@aaronsia thanks Aaron for the reference :)

@rainbow0721 my advice to you: hold tight tight and don’t panic sell. The company didn’t close down,yes? If you drop by their factories in SgPetani,you’ll see their factory still operating as usual,yes?

Not convincing enough? Ok..open up their latest QR/AR2019,is the net profit increasing year by year?Yes. Is the company heavily in debt?No.

So..why do you worry when you are investing in a SOLID company? This is not some loss making shady companies hello..

When share price rebounds,they can happen aggressively..all it takes is a positive stimulus.For example.. supermax rocket surged 0.58cents today,all within 30 minutes before market closed hahaha..

@hoiz6011 no offense taken no worries,it’s good to have opinion from different POV,it enables us to see things rationally. :) regarding 1b target,ang see ming said that during their agm is it?

@hoiz6011 we can really cut them some slack,many people are getting retrenched,you can hardly find ppl in the mall,tourism,construction making losses quarter over quarter, you expect record high profit from tguan? It’s unrealistic to say the least.Did they promise to hit 1b in FY20?No.

@eatcoconut if got ppl willing to sell you at that price then you buy la, nobody is stopping you lol.

@sslee I’m not the smartest in the investing world,but I know for a fact there must be a reason why many people are willing to pay a premium to own just a tiny piece of QL.Heck,I must admit I feel the money that I invest can be better put to faster growing companies,but can other companies sustain its fast growth rate?how long?As eventually all growth will revert to its mean.

@sslee as a long term investor,I would definitely dig deeper than comparing market cap alone. A good company must not only generate good profit,but must have a strong financial cushion lest the investors lose sleep. But thanks for highlighting the counter to me,will keep an eye on it haha..

@sslee
Honesty Allianz share price trend over the years is quite attractive to me,hence I just quickly flipped through Allianz latest QR,here are some of the points I picked up at a glance. (Though I must first say comparing Allianz with QL is like comparing an apple to orange,but I’ll do it anyway for the sake of analyzing their earnings)

1.) asset/liabilities ratio of 1.1 (IMO not high enough to cushion any unforeseen financial circumstances).
2.) asset quality: most of asset values tied to investment,amounting 13bil out of total assets of 14bil.
3.) cash and its equivalent 694mil,which is approx. 4% of total assets,far inadequate if I were to clear off short term debt.
4.) 10% drop in YoY net profit (174mil -> 157mil),hence drop in EPS 73 cents -> 66 cents.
5.) in cash flow statement,purchase of financial investment increases from 1.3b to 2.7b,but the limpairment loss on the financial investment significantly increases from 9.3m to 113m,thereby contributing to drop in net cash from 949m to 694m as of Q3FY20.

What does it tell you if you compare its financial health to that of QL’s?

To be frank I really like scientex too,but at the ended I decided to invest in tguan instead for the reasons below:
Both companies have shown increasing profit year by year for the past 3 years,both with a good current ratio and debt equity ratio,both have similar P/E ratio. The difference is that scientex share price has gone up 100% from rm5 in 2016 to rm12 as of now, with rm1200 I can only acquire 100 shares, but for the same capital I can buy 400 shares of tguan. (Yes I’m aware that value shouldn’t be based on share price,but from retailer point of view,what we strive for is minimal capital deployment with maximum return of investment).

In the case of scientex,I really don’t quite understand how a plastic company can venture into property development, I wonder how these businesses can complement each other,plus real estate isn’t really selling well now. On the other hand, tguan’s initiative to venture into food and beverages make more business sense to me.By manufacturing their own noodles,coffee and tea,they can leverage their plastic packaging business to reduce operational cost and increase profit margin.

To long term investors: Essentially,regardless of what external factors causing the drop in share price,good news to long term investors is that nothing changes within the business fundamental. It’s all fugaezee fugarzee woozyy wazzy (read in Matthew McConaughey voice)... over time,share price will always realign to business fundamental,those who bought in at a low price will laugh in sleep :D

@sslee I would attribute EPF shares disposal to I-Sinar,just like how they are disposing many other shares too. 10k EPF withdrawal per person,EPF would need to vomit out a lot of cash. So that’s inevitable as is happening to many other counters too. The drop in share price only opens up window for people to make a lower entry price and for ongoing shareholders to average down. I won’t be too concern of the so called “catching a falling knife” since this company has a really solid track record of consistent earnings for the past 10 years.

@i3lurker boring la you everyday re-goreng the same fried rice again and again, sei ong9 sek jor yok mei? :D

@sslee
It’s my fault bro,I didn’t see clearly,my apology.
Then can you please elaborate regarding catching a falling knife?

@sslee From the very same link you put up,here are the figures:

NP to SH: (2016):192079, (2017):195921, (2018):206236, (2019):216743, (2020):239323

You are misleading the public,I would advise readers to twice think when digesting your opinion.

@unduk I beg to differ,younger leaders won’t be equipped with the same experience and competence. The company is growing steadily,changing leader is a redundant move IMO.

@sslee QL net profit past 5 years(RM‘000): (2016): 201761 (2017): 206820 (2018): 215680 (2019): 225430 (2020): 238967.

These informations are readily available and one click away from this website itself, why do you want to mislead others with your fake figures?

Did you pick the numbers from your house trashbin? Cannot like this ler.. simply task like plucking numbers also get wrong how to invest haha.. :D

You’ve resorted to use term like “shemale” to describe a business,readers here won’t take you seriously anymore hehe,so in case your intention is to sabo this counter sorry la plan failed haha..

Okie enough of blowing water today,need to go Family Mart buy some Oden and Macha ice cream first.. Ciaoz! ;)

Of course Family Mart staffs don’t welcome you lo you diss them on their back haha..dai 9 lei sei..haha

Eh you bring yourself so low to compare 99 to Family Mart ah? Hahaha...tolong la you haven’t eaten your dementia medication ah hahaha..

Malaysians have a “thing” for Japanese culture: Anime,Cosplay,Sushi,Anything Macha,Uniqlo,Daiso,Miniso,Yubiso,Fabuloso! Haha..
You can’t separate Japanese culture from Malaysians,it’s deeply ingrained in our mind.

On a serious note,there’s innovation from Family Mart,they capture the hearts of Malaysians with their affordable and delicious soft serve,some people buy them to “punch card”. Oh and coming up next is their latest chocolate lava croissant..yummmy!

7-11 apa ada? Maggi ah? Hahaha...

@i3lurker YESS! Malaysians WILL continue to suppok FamilyMart,thanks for validating that haha!

@i3lurker While you talk crap here,numbers don’t lie haha, At the end of the day, QL still generating cold hard profit from their operational activities yo! Hey thanks for keeping us entertained while the market is closed today,I have whole day to blow water with you here haha.. :’D

@I3lurker if you don’t like the company then just dump the share la why put in so much effort to troll here haha. Not like our opinion will change because of you pun kekeke...

@i3lurker your claims are ridiculous and unsubstantiated

@sslee thanks for pointing out QL business is season dependent,and I agree with you regarding the need to compare year to year basis too, however I’m optimistic about QL’s growth. Hopefully by FY2022 Family Mart can be a separate entity under QL resources Bernard due to its robust growth and expansion.

@sslee I would stray away from fast growing company because of sustainability,QL’s steady growth ensures its shareholders able to sleep soundly at night hehe..the fact that it’s able to maintain growth in a pandemic is already worth the rich valuation that you would like to call it. Btw which company shares not held by institution ah? Haha..

Hey I’m not complaining man,you can throw your shares on Monday I’ll be more than happy to catch it..and I’m sure there are other silent readers here see eye to eye haha..

@sslee EPF dumping is least of my concern,as they are dumping many other companies’ shares too because of the implementation of I-Sinar. My investment horizon is 10 years and above, unless company’s fundamental changes,I wouldn’t dump the shares. In fact, I would buy more cuz it’s cheap. QL’s share price has always been fair,their growth prospect has been priced in,given net profit growth of 38% QoQ,I’d say they overperformed than what I expected given the increasing covid cases.

Initially the company’s robust growth attributed to the venture into renewable energies caught my attention. However something caught my attention in their 2020 annual report. In 2019,the group recorded net profit 418,000,however the monetary remuneration to directors occupied 238,000,a whooping 56.9%. I would wanna reconsider deploying my capital into this counter given the seemingly poor financial management. To be fair,the directors’ remuneration for year 2020 occupied only 5.17% of their net profit. Venturing into renewable energies secured them contracts from Indonesia and Nepal,whether this profit is sustainable or not nobody knows as there is no track record from the past, I’ll will hold back for now.

To my surprise POA didn’t perform as well as expected, but MPM managed to pull up PBT significantly.

Anyway, good time to buy now,never been this low since bonus issue.

Tq I just bought yours :D

Budget2021 passed,any tycoon wanna lift this counter up? :p

Nolaa..their factories are based in Sungai Petani (Kedah) and Sabah.. written in their annual report

Probably oversold,seeing a small rebound today with more buyer volume,hopefully can close green :D

@hanzo when you ask a question,you get an answer,which is what chengcheekann did. Imo he just trying to convey the mentality of “hoping for the best,prepare for the worst”,nothing wrong with that. The good thing is if the company is doing well there’s nothing to be worried of,hence the need to keep track with its business performance. Having said that if you don’t have the risk appetite to swallow +-30% volatility,perhaps you should consider other investments.

I’m just gonna ignore night_shadow with his twisted logic and investment approach.

@terence I’ve topped up when it dropped to 2.90,now that the price is gradually falling,I’m just gonna wait until it starts to rebound before next top up to avoid catching a falling knife hehe..

@rainbow chengcheekan gave you a pretty solid advice there. Your horizon of investment plays a huge role determining your strategy. One rule of thumb is invest only the money you do not need to use anytime soon. Needless to say,those who can wait 5-10 years or longer wouldnt mind a dip here and there because over the years,share price will align with business performance,provided you monitor business performance regularly.

@terence fully agreed. on a grand scheme of thing,the few tens of cents shouldn’t matter if you’re buying a fraction of a business and not treating it like a lottery ticket. If a small correction(or whatever the cause behind of share price drop) freaks you out (looking at you night_shadow),then don’t dip your feet the stock market really. And yes,tguan is not the right counter you’re looking at since you’re here for a quick buck. Numbers don’t lie,NTA 3.30,selling at 2.73 is a bargain.

@night everybody has their own way of investing,for me I’m buying a fraction of a company’s business,have 0 intention of jumping in and out,if anyone would so like to so called buy low and sell high go ahead,but it’s futile comparing different investing principles. Let’s be real,no one can “read the market movement”,market price movement is heavily influenced by sentiments and in a short term,quoting Peter Lynch,is only a random walk,very often the share price has no direct correlation with the fundamentals of the company business, as seen in tguan now. No offense,but you sound really new to the investing world..

@eatcoconut bye :D

@night nobody made any prediction unless you take it as one lol.

night I wouldnt call him right just because the price fell to 2.8(not 2.7 that you mentioned) klci index took a hit 17.67 points as I’m writing this,many counters are undergoing correction in conjunction to upcoming budget 2021 voting.

By the way,I couldn’t care less what you or anyone think about my opinion ya,hehehehe..

@night your previous comments show your insecurity to this counter. You first asked “why dropped so much” this shows your lack of experience and knowledge in the stock market. You then asked the forumer if the share price will rebound, did you buy at a high price without doing your due diligence? Or yo do not have the holding power? :3

Okok..not referring to those selling bonus pun, cheers! :D

It’s okay,wash away all short term traders,soon will rebound.Tguan being able to maintain healthy cash flow with steady increase of profit esp in covid is already amazing. Nowadays investors are hard to be pleased.

@pinna Yupp same here long term investor with holding power as well,nothing to worry as company’s fundamental is strong. Some diamond take time to be discovered and appreciated haha..

@pinnaclegrade what is your average price now bro?

Coming next, UP is the only direction it can go :D

Refer to my earlier comments to see why I think this company is undervalued,if there’s anytime to buy,it’s now.In a week or a month time not sure if you’ll be slow to get such price already. Imma topping up.