Dear Mr Tan, my stock picks for 2020 stock pick:
1) WONG 10%
2) ATAIMS 10%
3) INARI 10%
4) YTLPOWER 10%
5) EWINT 10%
6) GKENT 10%
7) HEVEA 10%
8) SCICOM 10%
9) JAYCORP 10%
10) SERBADK 10%

Thank you

Dear Mr Tan, my stock picks for 2020 stock pick:
1) WONG 10%
2) ATAIMS 10%
3) INARI 10%
4) YTLPOWER 10%
5) EWINT 10%
6) GKENT 10%
7) HEVEA 10%
8) SCICOM 10%
9) JAYCORP 10%
10) SERBADK 10%

Thank you

Dividend received with thanks!

Price up faster than my expected.

We buy share is not expecting QR is good or bad. Dun treat this as gamble. This is not the way we make money from the market.

@ Ramada thanks for sharing the slide!

Despite dismay results, Hevea remains cash rich position and positive FCF with low CAPEX requirements. It makes them able to continue payoff generous dividends every quarter. They have one new factory already completed years ago but yet to start production due to low demand. There means that once the order is kick off, they can ramp up the capacity immediately.

Bought at 21 sen.

Wow, my average cost is high at RM1.11. I wish to average down but I still yet to see the turnaround signal from Hevea. Like what WhiteWolf, hoping that Olympics 2020 will bring the positive factor to this co.

I bought YTLP also bcoz this reason but my entry price is before dividend date.

@bsngpg total agreed with you. This is comfortable to enjoy attractive dividends for long term despite share price does not move much. As an investor, we must know what is the main reason we want to invest Matrix and what is own objective.

Accumulate more at 4.35 today.

Sold at 1.74 and lock profit.

Thank you for sharing.
Currently I allocate my spare time on Bursa Malaysia only.
I start to buy unit trust which invest into US, Greater China and ASEAN.
Hopefully it works as my plan.

Bought back at 0.49 today.

ruby20, this is less convincing to compare Homeriz and Spring Art as they are selling different products. This is better to use Heveaboard to compare with Spring Art as both also producing RTA products to overseas.

Sold partial at 1.36 to lock profit first.

Good article. Thanks for sharing.

Cypark inks three MoUs on renewable energy projects

Cypark Resources Bhd has partnered with three parties to jointly develop renewable energy projects, consisting of two solar photovoltaic and another waste-to-energy (WTE) projects.

In the first MoU, Cypark Resources is partnering with Negeri Sembilan Corporation, to jointly develop 50MW solar photovoltaic projects in Negeri Sembilan, under the Net Energy Metering Scheme, with the adoption, execution and implementation of supply agreement renewable energy (SARE).

The MoU will be effective for two years and may be extended for a further period as may be agreed by both parties.

Cypark Resources’ second MoU is with Menteri Besar Kedah Incorporated (MBI Kedah) to jointly develop a 100MW solar photovoltaic projects in Kedah. The MoU is effective for one year and may be extended for a further period as agreed.

Its third MoU is a collaboration with Petronas Chemicals Group Bhd for the development of solid waste modular advanced recovery and treatment (SMART) waste-to-energy (WTE) projects in Malaysia.

Under the MoU, both Cypark Resources and Petronas Chemicals will evaluate potential collaboration on WTE projects, including establishment of WTE plants, and exploring joint solutions for plastic pollution in Malaysia.

“The MoU comes into effect on Oct 10, 2019 and will remain effective for a period of five years,” Cypark Resources said.

The collaboration is driven by the Malaysian Government’s objective of having at least one WTE facility in each State.

“The MoU aims to establish our collaboration in WTE projects, particularly in setting up plants in Malaysia to process municipal waste for electricity generation. We are able to leverage on each other’s knowledge, experience and capabilities while identifying and exploring commercial opportunities in relation to the provision of solid waste management,” executive chairman of Cypark Resources Tan Sri Razali Ismail said in a separate statement.

Commenting on the partnership, Petronas Chemicals managing director and chief executive officer Datuk Sazali Hamzah said: “This MoU marks our second partnership in realising our aspiration to be a solutions partner in addressing plastics pollution in Malaysia. Earlier in June, we entered into a partnership to jointly perform a feasibility study to establish a facility that converts plastic waste into crude naphtha for the production of recycled virgin-quality plastics. “

Cypark had pioneered Malaysia’s first SMART WTE plant in Ladang Tanah Merah, Port Dickson, Negeri Sembilan.

Cypark Resources closed unchanged at RM1.28, for a market capitalisation of RM598.33 million. The counter saw some 314,700 shares traded.

Bought at 0.485.

Sold partial at 1.89 to lock profit 1st.

THE Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya (SSP) Line (MRT2) work progress is 54% complete with its Phase 1 set to begin operation in July 2021.

According to MMC-Gamuda KVMRT (PDP SSP) Sdn Bhd, the contractor for the underground portion of the MRT2 project, Phase 1 will start from the Sungai Buloh station to the Kampung Batu station, while Phase 2 is slated to begin operation in July 2022.

https://themalaysianreserve.com/2019/07/25/mrt2-54-complete-on-track-to-be-completed-by-2022/

医院管理一石二鸟　金群利吸取专业知识

金群利集团（MATRIX，5236，主板产业股）周二（17日）签署的一纸管理协议，不仅可让该集团吸取他山之石，涉足医疗领域，也能从中认列长期收益，可谓一石二鸟，让市场人士唱好此发展，继续喊买该股。

金群利集团持股70%的子公司--Matrix Medicare周二与马华爱心洗肾中心有限公司（PusatHemodialisis Mawar，简称PHM）签署为期30年的管理协议，向后者提供非医疗事务的独家管理服务，包括业务方向的谘询服务等。

这家位于森美兰州芙蓉市的公司于去年11月停止大部份业务，包括专科医院部门与血液透析中心等；但最近已获得新执照，会在9月起重新经营这些业务。该公司医院部门共有97张病床，而管理层有意在重新开幕时添加逾30张病床。

认列长期收益

金群利集团将支付1640万令吉认购PHM的部份股权，其负债率会随之微增至0.08倍。不过，倘若PHM每年营收超过4800万令吉，金群利集团就可分享总收入的15%；反之亦然。

丰隆投行分析员因而唱好此发展，称这可让该集团从中取得长期收益，尽管数额相对不显著。

“PHM在2017年至2018年分别录得6200万令吉以及6500万令吉营业额；而管理层也有信心，这些中心在重启12个月后，每月可取得500万令吉收入。”

他因而预计，金群利集团可获得逾500万至600万令吉，相等于2021财政年盈利预测的2%；由于该集团扮演管理顾问的角色，因此所需要的运营支出不多。

另一边厢，金群利集团也可累积管理医院的专业知识。值得一提的是，医院会是该集团位于森州的旗舰城镇发展项目--达城（BandarSri Sendayan）旗下Sendayan IconPark城中城的首批项目之一。

由于金群利集团在打造可负担式城镇项目上记录良好，加上其周息率（DY）比大多同行更诱人，让丰隆投行维持该集团“买进”投资评级与2.25令吉目标价。

金群利集团周三涨1 仙或0.5%，报1.94令吉，成交量达32万2100股。

https://www.orientaldaily.com.my/news/business/2019/09/18/307024

Pohuat QR is very good. Believe Jaycorp will be as well.

Why asking us instead of telling us?

LC Titan cannot compare with Tguan, they are different industry.
Tguan direct competitors are Scientex and Bpplas.

Inari Amertron partners with Taiwanese firm to make optical transceiver in Penang

Inari Amertron Bhd signed an agreement with PCL Technologies Inc to set up a joint-venture to secure, manage and manufacture optical transceivers and other related products in Penang.

Under the shareholders' subscription agreement, Inari Amertron said the entity to be formed will have an initial capital of RM20.85 million. Inari and PCL would subscribe to 30% and 70% stake in the entity respectively, the semiconductor group said in a filing with Bursa Malaysia.

Inari Amertron said the entity will carry out business operations at Plant 34 in Penang or other plants owned by the company.

Inari Amertron also said the proposed subscription represents an opportunity to invest in a business relationship with PCL with a view to collaborating on a good business opportunity.

“Notwithstanding the minority position, the entity will also enable Inari to diversify its earning streams while tapping on the expertise of PCL in the optotronics sector.

“Besides, the entity will carry out operations in Plant 34 or other plants owned by Inari group at Penang, as such rental payable by the entity at the prevailing market rate will generate a source of cash flow and or income to Inari,” it added.

PCL is a company listed in Taiwan Stock Exchange and is mainly engaged in the research, manufacturing and sales of the optical transceiver module.

PCL also provides complete engineering and product manufacturing solution of complex optical and electro-mechanical components. Its product lines include optical transceivers, fiber channels, transistor outline-can (TO-Can) packages and optical sub-assemblies (OSA), widely used in high-speed bandwidth transmission between netcoms, cloud computing, wireless communication and telecommunications equipment.

The share price of Inari Amertron settled unchanged at RM1.73, giving it a market capitalisation of RM5.5 billion. The counter saw some 10 million shares traded today.

https://www.theedgemarkets.com/article/inari-amertron-partners-taiwanese-firm-make-optical-transceiver-penang

Similarly, Homeritz which is relatively new to the US market, has signed on eight new US customers so far in 2019. It is currently embarking on an expansion plan that will come onstream over the next 3–5 years, subject to the demand from its customers.

SPC has a strong track record in supplying precast concrete components to various projects in Singapore since 2006, including mass rapid transit, underground cable tunnel and sewerage system projects, and is well positioned to compete for potential sales orders from the expansion of the rail network in the city state.

“The advantage of SPC is that it has another market in Singapore, which should provide more consistent jobs than Malaysia [amid the current slowdown in the construction sector]. The Singapore market should sustain SPC’s [premix production] operations in Johor,” says Sim.

Still, he points out that sales orders from Singapore only contribute about 10% to 15% to the group’s profit.

Sim says the group has no plan to make any cash call until the market improves, adding that if it were to raise capital from the market, it would be used for property development.

Kimlun’s cash balance stood at RM56.8 million as at June 30 while total borrowings were at RM351.5 million, resulting in net debt of RM294.7 million.

Nevertheless, Sim says the group is in no hurry to develop its existing land bank, totalling 204 acres, and is not planning any new launches until sentiment in the property market improves.

While Kimlun does not have a dividend policy, Sim says the group aims to pay out yearly dividends to shareholders as long as it makes money. It has had an average dividend payout ratio of 24.9% since its listing in 2010.

Bloomberg data shows that of the six analysts covering Kimlun, two rated it a “buy”, three, a “hold” and one, a “sell”. Their average target price is RM1.52 over the next 12 months. The stock closed at RM1.26 last Thursday, giving the company a market capitalisation of RM428.17 million. Year to date, its share price has risen 12% from RM1.13.

https://www.theedgemarkets.com/article/kimlun-sees-tough-conditions-construction-market-persisting

Kimlun sees tough conditions in construction market persisting

CONSTRUCTION companies such as Kimlun Corp Bhd are waiting with bated breath to see what goodies will be announced in the upcoming Budget 2020 and are hoping the government will pump-prime the economy with public infrastructure projects which, in turn, could help turn their fortunes around.

“A recovery in the construction sector next year will depend on the upcoming Budget 2020 — what the government has in mind to boost the sector. If the government does not do anything, the country may sink into recession. As a businessman, I would not be optimistic [about a recovery] if the government continues to tighten its belt,” Kimlun CEO and executive director Sim Tian Liang tells The Edge in an interview.

The national budget for next year will be tabled in Parliament on Oct 11.

On its part, Kimlun — which has seen its earnings tumble for two straight years since the financial year ended Dec 31, 2017 (FY2017) — does not expect the declining trend to reverse course in the current financial year given the slowdown in construction projects.

Sim, 64, says net profit for FY2019 is likely to be flat or lower than last year’s on fewer construction jobs.

This is despite the group posting a 30.6% year-on-year increase in net profit to RM29.38 million for the first half ended June 30, 2019 (1HFY2019). Revenue rose 46.7% y-o-y to RM643.72 million, it said in a bourse filing last Thursday. The improved 1HFY2019 performance was mainly due to higher revenue achieved by the construction and manufacturing and trading (M&T) divisions.

Sim’s cautious outlook stems from his view that the worst is not over for the construction sector. He notes a turnaround is only expected in two to three years. The construction segment is the main contributor to the group’s revenue.

He says the recovery of the property market, meanwhile, will depend on how fast unsold properties that have been built are absorbed, although he expects that sector to take longer to rebound than the construction industry.

“The slowdown in the market is deterring a lot of developers from launching new properties. However, property development constitutes a small portion of our overall revenue. Our main business is still construction,” he adds.

Kimlun saw a 16% y-o-y drop in net profit to RM68.48 million in FY2017, which fell further by 11% y-o-y to RM61.14 million in FY2018.

However, revenue rose 2.7% y-o-y to RM1.01 billion in FY2018. Of the sum, the construction segment contributed 79.16%, the M&T business accounted for 20.38% and only 0.46% came from the property development segment.

The group has an outstanding order book of RM2 billion as at June 30, which provides earnings visibility for the next two years, says Sim. Of this, RM1.7 billion is from construction contracts and RM300 million from the manufacturing segment.

This year, the construction projects that will contribute to the group’s results include the Pan Borneo Highway Sarawak Project (Serian Roundabout to Pantu Junction); office complex for Majlis Bandaraya Johor Baru; condominiums and ancillary buildings at Mukim Petaling, Selangor, for the Kuok Brothers Sdn Bhd group; and building works for one block of commercial building and one block of apartments at Medini Iskandar, Johor, for Sunway Iskandar Sdn Bhd.

Sim says the group has set a lower order book replenishment target for FY2019 of RM500 million, of which RM400 million is expected to come from construction and RM100 million from manufacturing. Year to date, Kimlun has secured construction jobs worth RM250 million and new manufacturing sales orders of RM40 million.

“This year’s target is lower than our previous years’ targets of between RM600 million and RM800 million, taking into account current market conditions,” he adds.

Kimlun is one of 1,321 construction firms nationwide that are reported to have submitted their interest to participate in the RM44 billion East Coast Rail Link project during the pre-qualification exercise on May 29 and 30.

Sim says the group is also eyeing opportunities in projects such as the Johor Baru-Singapore Rapid Transit System Link; the Ministry of Housing and Local Government’s plan to build 100,000 affordable homes per year; the Penang Transport Master Plan, which envisions a series of highways and light rail transit lines; the construction of the Kulim International Airport; upgrading works on the North-South Highway; the second phase of the Pan Borneo Highway construction works; the Sarawak coastal highway; and the second phase of the Klang Valley Double Track rehabilitation works.

Meanwhile, Kimlun expects the precast concrete product manufacturing segment to bring in stable income for the group, through its subsidiary SPC Industries Sdn Bhd, going forward.

Just dun too bother by the trade wars.
Look into company fundamental and business instead to make the wise investment decision.

全球销售额7连跌　半导体股短期黯淡

全球半导体销售额连续7个月按年走低，欲振乏力，市场分析员相信，在中美贸易摩擦演变为持久战的情况下，大马半导体股项的短期前景依然黯淡。

7月全球半导体销售额按年下滑15.5%，至334亿美元，而年初至今的贸易总额为2287亿美元，按年跌14.4%。按月比较，世界半导体销售额微升1.7%。

半导体数据不佳，多数大马科技股在周四走跌，但科技股大蓝筹马太平洋（MPI，3867，主板科技股），全天起6仙或0.69%，以8.74令吉挂收，名列上升榜第26位。

达证券分析员指出，虽然世界半导体销售按月回升，不过这已经是连续7个月按年走低，仍然处于下行周期中。

“所有主要的半导体领域产品皆出现销售放缓现象，导致年初至今的销售表现失利。”

北美跌幅最大

同时，该分析员表示，以世界各区域来看，欧洲以外地区的半导体销售额皆按月上涨，不过，按年比较，所有区域皆出现销售萎缩。

其中，北美销量按年跌27.8%，跌幅最大，其次为按年减14.1%的中国，接著是日本、亚太（不包括日本）与欧洲区域，分别降12%、11%和8.6%。

此外，分析员称，全球半导体领域的7月出货量虽按月微增0.4%，到20亿3420万美元，但同样按年下跌14.5%，连续9个月按年萎缩。

年初至今，世界半导体领域入账金额为136亿3720万美元，按年跌22%，原因是存储体市场疲软，令业者削减投资。

展望将来，该分析员认为，持久与正在恶化的中美贸易战，依然是短期内主导半导体领域的关键因素，这将继续对科技股的估值带来打击。

中美两国已从9月1日开始，互相对彼此的进口商品加征额外关税。


“对大马半导体股项而言，关键下行风险视乎中美贸易战会否继续延长且恶化，而美元会否走弱，亦是另一重大风险。”

无论如何，该分析员认为，益纳利美昌（INARI，0166，主板科技股）核心的射频（RF）及光纤光学业务，将从5G网络逐渐商业化的趋势中获益，因此，他维持该股的“买进”评级，目标价亦保持在2.05令吉不变。

https://www.orientaldaily.com.my/news/business/2019/09/05/305260

Hold tight tight, and keep accumulate when low price.
Dun sell to those bastard who want to collect at 1.20!

Coming quarters expected to improve for ATA IMS

ATA IMS Bhd
(Sept 5, RM1.35)
Maintain buy with a lower fair value (FV) of RM1.75 (previously RM1.84): We maintain our “buy” recommendation on ATA IMS Bhd with a lower FV of RM1.75 a share (from RM1.84 a share), pegged at a forecast financial year 2021 (FY21F) price-earnings ratio of 14 times after reducing our FY20 to FY22 forecasts by 5% as we adjusted our margin assumptions in line with guidance.

We attended ATA’s first quarter (1Q) of FY20 results briefing and came away with some key highlights.

Its 1QFY20 core profit came in at RM25 million, lower by 20% year-on-year (y-o-y) despite revenue soaring 45%, attributable to lower efficiency and productivity amid the festive season, newer models having higher material contents and higher start-up costs associated with new assembly lines.

The group’s subsequent quarters are expected to improve, with 2QFY20 expected to be stronger than 1QFY20. ATA’s order growth momentum of 15% y-o-y for its key customer is intact, with the addition of one household product which began production in March as well as a personal care product targeted for production from November. Margins for 3QFY20 are anticipated to remain sturdy despite commencing the production of the personal care product due to expectations of strong orders. Having already accounted for the weak 1QFY20 results, the group guided that its full-year profit before tax margin will be above 4.5%.

The group managed to secure an additional contract from the key customer, which is likely to begin production in FY21. The box-build order volume from its existing customer is expected to remain robust as the addition of new products is anticipated to offset a natural slowdown in some of the key customer’s older product orders reaching their end-of-product life cycles.

Through a new strategic partnership with Canada’s Swift Labs, which specialises in wireless and Internet of Things (IoT) product development and testing services, ATA aims to extend its capabilities to include the IoT and collaborate with Swift Labs for original design manufacturing in the future.

There are also new customer diversification opportunities arising from the US-China trade war. The group is in the quoting and feedback stage for some prospective customers, some of which are IoT-related manufacturers. ATA is looking at the IoT customer segment as the products usually consist of a good blend of electronic and mechanical components, fitting well with the group’s vertically integrated capabilities.

As for ATA’s vertical integration efforts, Microtronics Technology Sdn Bhd currently has 14 surface-mount technology lines catering for approximately 60% of ATA’s printed circuit board assembly (PCBA) and battery pack requirements. Four lines are expected to be added by end-calendar year 2019 (CY19). To develop self-sufficiency and reduce purchases from external suppliers, the aforementioned PCBA capability will be injected into ATA by mid-CY21.

Meanwhile, ATA has submitted brush bar samples to undergo reliability tests, while its wire harness capability requires certain certifications, with its site being audited by the key customer. Production of both is expected to begin in CY20.

So far, ATA has utilised approximately 73% (RM40 million) of its FY20 capital expenditure of RM55 million for plastic injection molding machines of different tonnages in its new facility. The group plans to invest continuously in automation to improve its production efficiencies.

We reiterate our “buy” recommendation on ATA due to its positive prospects arising from: i) it being the purest proxy for the key customer’s growth prospects; ii) its move to become a vertically integrated player that would improve margins and put it in a better position to secure orders and/or customers; and iii) its positive growth trajectory with a three-year core profit compound annual growth rate of 17% for FY19F to FY22F, underpinned by its modular expansion strategy. — AmInvestment Bank, Sept 5

https://www.theedgemarkets.com/article/coming-quarters-expected-improve-ata-ims

First bought at 4.31.

Cut loss first. To relook this counter when CPO price bounce back.

As mentioned many times, GKent will focus more on metering division, target its contribution to 50% in the short term and 75% in the long term.

malpac63 LRT3 is recycled and old news. I have yet to read about Gkent winning a single construction contract since May 2018.

明后年5G手机大爆发 这两家企业好钱景

（台北3日讯）美银美林表示，全球转向5G无线通讯技术，将提供许多引人注目的投资机会，预测2020年和2021年5G智能手机出货量将大爆发，台积电和博通（Broadcom）将成为最大受益者。

美银美林预估，今年全球5G智能手机出货量将达1700万支，2020年增至1.3亿支，2021年再增至3.27亿支。美银美林分析员Simon Woo发布报告指出，射频（RF）晶片供应链企业很引人注意，因他们在5G智慧手机有新的成长机会。

美银美林看好两档5G概念股，其中之一是台积电。Woo指出：“由于近来总体经济吹逆风，我们偏好有主题驱动的个股，可望受惠于即将到来的5G时代和全球供应链转变。台积电是晶圆代工大厂，制程技术居领先地位，预估台积电的ADR（美国存托凭证）还有很大的上涨空间。”

Woo将台积电ADR目标价提高至47美元，较上周五收盘价42.63美元还有10%上涨空间。

美银美林也看好博通前景。Woo指出：“我们预期博通将是5G智慧手机获得广泛采用的受益者，该公司供应5G前传和回传的特殊处理器，该公司将向苹果和三星电子的5G智能机提供晶片。”

Woo将博通的目标价提高至345美元，较上周五收盘价282.64美元，还有22%的上涨空间。

QR is good as usual plus another 3 sen dividend declared.

Sold at 2.77 this morning to unlock capital.

Frankly speaking, the QR is not bad. Excluding disposal gain of 23.7 mil recorded in last FY, drop in earnings is just about 15‰.

Great article!

Liihen din made me disappointed. Another handsome dividend is coming :)

Keyword: 5G, RF demand

特朗普封杀华为 爽翻台厂 5G大爆单

（台北23日讯）原本外界预期明、后年才会正式降临的5G商机，因中美贸易战恶斗，竟意外地提早报到！原本大家预估是明年、甚至2021年后才会发生的事，没想到，从2019年第二季开始，5G订单春燕已提早来报到。

位于台湾新北市林口区华亚科技园区的砷化镓晶圆厂——稳懋半导体，3个月前，其产能利用率仅55％，这个数字即使是对传产业都颇为难堪，更何况是高科技业。但短短5个月，产能利用率蹿升至90％，员工从去年底2600余人，刚刚突破了3000人大关。

“5G订单比我们预估要提早来，量也比预期的大！”稳懋董事长陈进财说：“本来以为今年不好过，因5G才刚起步，没想到许多国家与电信业者对推动5G很积极，让我们基地台与手机订单出现强劲成长。”

稳懋主要产品——砷化镓半导体，是通讯用射频元件的最关键核心。一组射频元件是由数颗功率放大器（PA）、开关、滤波器、低噪放大器等零件组成。不但每支手机需要射频元件，每个基地台也需要射频元件，否则信号没办法传输。

苹果分析师、天风国际证券高科技分析师郭明錤指出，4G iPhone手机，每支需要三颗PA，5G iPhone则至少需要9颗，其中6颗是为了5G讯号传输所用。

5G商机提早到来，一部分还得感谢美国总统特朗普为封锁中国华为的高端半导体产品“禁售令”。华为禁售令非但没有拖累中国发展5G脚步，甚至激起中国更大野心，华为积极地储备存货，针对许多“较难取得”的零组件，甚至备足了一年存货。

产业研究机构Gartner预测，因为不景气，加上中美贸易冲突，全球半导体营收今年将衰退高达9.6％。台积电财务长何丽梅却在第二季法说会中释出，第三季营收可望较第二季成长17~18％好消息。

以此推算，只要台积电第四季营收较第三季成长1％以上，2019年就可望维持在正成长之上，摆脱大环境整体衰退泥淖，其最大功臣正是来自“5G相关晶片订单的强劲成长”。

Another disappointed result.

Goreng first before QR out.

Anyone attend AGM tomorrow?

Kimlun’s manufacturing orders expected to accelerate

Kimlun Corp Bhd
(Aug 19, RM1.23)

Maintain buy with an unchanged target price (TP) of RM2.16: As we move into the fourth quarter of 2019 and the forecast financial year 2020 (FY20F), we believe that Kimlun Corp Bhd’s manufacturing orders will accelerate. These orders will initially flow from Singapore and eventually Malaysia when some key projects are rolled out.

Its total manufacturing tender book is now at RM500 million which is largely skewed towards projects in Singapore, including Industrialised Building System (IBS) related jobs and Deep Tunnel Sewerage System 2. This does not include orders from the North South Corridor Expressway and Jurong Region Line.

Our FY19F earnings estimates are above consensus. Our forecast of a surge in manufacturing flows from Singapore is intact, with local construction wins likely to come in at the higher end of this forecast. Not enough recognition is given to Kimlun’s high-margin manufacturing business which should command a scarcity premium. Its IBS expertise will be crucial in clinching more local affordable housing projects.

Given its depressed valuations, incremental new orders for Kimlun’s construction and manufacturing segments beyond its total order book of RM2 billion would lift the stock. With its strategically located manufacturing plants in Negeri Sembilan and Johor, we believe it will be the front runner for the Tunnel Lining Segment and Segmental Box Girders portions of major transportation and infrastructure projects when they eventually kick off.

Our TP is set at RM2.16, based on sum-of-parts valuation. We think this better reflects Kimlun’s underlying business model. Its construction business is valued at RM1.62 a share with its manufacturing unit at 54 sen a share.

Low-margin wins is a major risk. The biggest risk is its perceived over-reliance on projects in Johor. This is mitigated by its stringent bidding process, only accepting projects with strong marketability. — AllianceDBS Research, Aug 19

Bought at 1.40.

The Board of Directors of Cypark Resources Berhad ("the Company" or "CRB") wishes to announce that Cypark Smart Techonology Sdn. Bhd., a wholly-owned subsidiary of the Company had on 13 August 2019 accepted a Letter of Award dated 9 August 2019 from the Department of National Solid Waste Management (Jabatan Pengurusan Sisa Pepejal Negara), under the purview of the Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan Tempatan) in respect of a contract for Design and Build Project of Access Road to the Integrated Sanitary Landfill Site (Projek Merekabentuk dan Membina Jalan Masuk ke Tapak Pelupusan Sanitari Bersepadu) at Ladang Tanah Merah, Negeri Sembilan ("the Works"). The total contract value is RM12,527,546.35 (Ringgit Malaysia: Twelve Million Five Hundred Twenty Seven Thousand Five Hundred Forty Six and Cents Thirty Five) only.

The stipulated completion date of the project is on 25 August 2020, which is 12 months from the date of site possession on 26 August 2019.

The Works is expected to contribute positively to the earnings and net assets of the Group for the financial years ending 31 October 2019 and 31 October 2020.

CRB does not foresee any exceptional risk other than the normal operation risk associated with the Works and will take necessary steps to mitigate the risks as and when it occurs.

None of the Directors or Major Shareholders of CRB and persons connected with them has any interest, direct or indirect, in the Works.

This announcement is dated 14 August 2019.

https://malaysiastock.biz/Company-Announcement.aspx?id=1163931