About Tomypak's 315,000 Treasury shares, actually the Company has sold them all in the Open market on 6.4.2016 the next day after the multiple proposals, at average sale price of Rm2.301 per share. The Company made a small profit of (2.301 - 1.598)x315000 = Rm221,445.

Yes, Tomypak is Fundamental stocks, not suitable for "Hit and Run" punters...

Sorry, typo... 75.5/2.5, not 75.7/2.5

If we based on yesterday's warrant closing price at 75.5 sen, assuming this price for illustration only, after ex-date, the adjusted price of warrant will be 75.7/2.5 = 30.2 sen. Round down to next lower trading price, become 30 sen after ex-date.

Apollo Ang, about your warrants bought at today's high price, I think it's due to a normal profit-takings by warrant holders who bought them cheap earlier, because most short-term traders follow the rule of "SELL ON NEWS". If you are a mid/long-term investor, no worry, just hold your new purchase, and wait patiently.

See the Announcement Attachment yesterday, the existing warrants will also enjoy the same 2:1 share-split and 1:4 Bonus issue, and the new warrant's conversion price will be reduced from Rm2.29 to Rm0.93, although slightly higher (it should be exactly 92 sen?) due to roundup to nearest sen. So the warrant price should recover after the selling pressure go away and mother share's price continue to be on uptrend...

Prolexus is a big big laggard in this ongoing Bursa Rally, despite very sound fundamentals with Single-digit PER, P/BV 1.05, average CAGR > 10%, 2 new factories ready by this year, etc., prices still remain at Rm1.40+/- in the last 4 months... Now is time for Prolexus to start it's run...

Good news, fund managers are accumulating, today EPF just announced they become a substantial shareholder after they have acquired 5.1%:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5388849

Yesterday, Manulife announced they become a substantial shareholder after they have acquired 5.03%:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5387857

Gwee Jwen,

We may consider the CJKE's purchase price at Rm1.45 as reference TP... because the Koreans need to justify to their shareholders this is the fair value they have paid for, sooner or later this should be reflected in the stock price... Let's see how soon Mr. Market will agree with this...

Yesterday's announcement say the whole exercise is expected to be completed by Q2 this year, that means before end of June, 2 months from now...

Sctan, I agree that the first few months after startup the revenue will increase even if only half capacity is utilized because of lower productivity of new operators initially, and job orders may take time to buildup, but profits maybe higher, only the "profit margin" maybe lower, or maybe even this also may not be lower because the new factory will get higher tax incentives, and when the new fabric plant start to supply materials "in-house", the profit margin will become higher...

Take for example Tomypak's latest Q4-2016 report to see two issues discussed by us above :

1. Company Prospects -- see page-12, #3, the same kind of statement is used, "forthcoming year is expected to be difficult and challenging given the continuing uncertainties of the global economy as well as volatile foreign exchange rate". This sounds even worse than Prolexus statement...

2. Utilization of RI proceeds vs Factory's construction: see page-13, #6, Tomypak's RI was also done in June last year, their new factory was completed in Dec.2016 and commissioned in Jan.2017, but the rm57.4M proceeds still showed balance unutilized of rm17.3M in 31.Dec.16 or 30% balance. This show that the balance sum cannot reflect the actual construction's progress. Because progress payments are often made several months after the actual progress.

Even Cold-eye's opinions can be challenged, like this one, I think Lawrence Tan made a very good point vs Cold-eyes:

Pg. 155 蛛丝马迹
 
每当公司在展望（Prospect）里提到Challenging，大家不要被这个字眼给吓着，难道每个公司都讲challenging，我们就不投资了？
 
如果你随便问一个商人行情如何，就算行情很好，他也会跟你讲生意难做，因为怕你来做，本来好做都变不好做了。
 
除非是金字塔传销、保险、Forex、快速致富，才会告诉你我有多赚钱，你不加入就是笨。
 
http://klse.i3investor.com/blogs/kakashit/119504.jsp
.

Yes, it's very good for us to share information, analysis and opinions. Even if our opinions may differ, but it's useful to know other's opinions, as long as they are not malicious...

Sctan, agreed, initial few months would produce less because of new operators skill and learning curve, or installing production lines in stages while waiting for new job orders to increase, in order to minimize capacity underutilization.

But nevertheless, the initial production should significantly boost up the revenues and profits after the new factory startup and then increase production gradually.

Started in Q3 & Q4 2017, commission in Q3 & Q4 2017, so minimum 1 year, maximum can be up to 15 months, if start date is early Q3/Q4-2016, and late Q3/Q4-2017 commission. Submission for factory design approval started earlier...

Factory buildings are very simple structures, and sewing machines are standard equipment that can be installed quickly, so 1-year timeframe is achievable...

From dictionary, the word "Commission" means:

(Past tense: commissioned; past participle: commissioned)
1. Give an order for or authorize the production of (something such as a building, piece of equipment, or work of art).

2. Bring (something newly produced, such as a factory or machine) into working condition.

So the Company's wording "Fully Commissioned" should means that the date of factory start-up and production.

Btw, note the AmInvest made an error in the latest Book Value of rm1.23 instead of rm1.33, and gave P/BV = 1.1 instead of 1.02. Does that mean they have underestimated the fair value by 10 sen or more...?

The Q2 report did not mention any delay in the factories construction, under the report's pg.8 Section-12 :

12. Capital commitments
As at the reporting date, the capital commitment of the Group is as follows:
Property, plant and equipment:
- Authorised and contracted for 27,306
- Authorised but not contracted for 99,840

So the rm27.3M funds was already committed and contracted out for construction of the new factories. The estimated total costs of the factory buildings is rm30.5M (rm13.5M Vietnam, rm17M Johor), shows that the work progress is still on track because factory building must be completed before M&E works and machinery installations can start, also, bear in mind that the Q2 report cutoff date is 2 months ago at 31.1.2017.

The AmInvest report also said they are on track but gave a different dates (Q1 & Q2 2018) from Company's projected dates (Q3 & Q4 2017), so whose dates should we trust?

I think the Company's dates should be more reliable as they are answerable to the dates given in their prospectus.

Niki, AmSec cut their TP by reducing PER from 12 to 10, because they anticipate slower than expected growth until 2018 when their new factories in Vietnam and Johor will be operated.

Sorry, correction, should be YoY instead of QoQ, and QoQ for Q2/Q1 comparison.

Prolexus latest Q2-2017, compare Q-o-Q it is +9% increased revenues, +20.5% PBT, +9% Net Profits, and 7.02% NPM, same.

Compare to Q1-2017, it is +24.4% increased revenues, +41.8% PBT, +18.8% Net Profits, and NPM decreased slightly from 7.36%.

This shows that this Q2 results is quite good, both in terms of Q-o-Q and Q-2-Q. But Mr.Market is doing injustice to Prolexus share prices today...

The Company's cautious statement about "uncertainty of global economic conditions" may be the cause. But look at it this way, isn't this conditions going to affect most companies in Malaysia? Then why a good performance stock like Prolexus take Mr.Market's beating while others are enjoying the market's bull run? Does this make sense?

IMHO, this is a glaring example of Mr.Market's inefficiency.

Hi Niki, the word "Commission" means the factory is ready and is authorised to start production.

According to the RI prospectus, this should be in Q3-2017, or 6 months from now...

Century's multilevel warehouse will be ready in May, just 2 months from now, and their Exec Director said they are going to launch their new Courier Division in the next couple (2?) of months, about the same timing...

That means the two new Catalysts are soon going to spur CL's growth going forward... Good for mid to longterm investment. I'm still holding my CL position, waiting to ride the growth of CL...

Haha.... thanks, Stock man my, I think u too...

Sorry, Phase-3: To be completed by 2021, or 5-years period...

The bottleneck of building a new factory is usually land acquisition process and building construction works, which normally take about 2 years or more until CF is issued by the local authority... Whereas adding new production lines normally only take just a few months. So it shows that Tomypak's management is prudent and cautiously optimistic by installing only 1-line initially, and then add more lines (may be add 1-line per year from 2017 to 2021...?) as customers orders increase gradually.

Also, take note that the new line added in 2015 inside the existing factory is the same type of latest technology machineries, that means the operators have already been trained and familiarized with the new machineries in the new factory, this is a brilliant decision taken by the Company to minimize the teething issues and operators training period, and the new factory can quickly get up to speed.

The Q4/16 report said the last Q did not benefit from the new factory, their contributions should be in the coming Q results, so we can expect a much better Q results in May... :-)

About the new capacities after Phase-1,2,3 expansions, here is my take after reading up and research on Tomypak:

After Mr. Lim Hun Swee (LHS) took over the MD post in January.2015, he set an big Objective: to overtake Daibochi after 3 years. This year 2017 is the 3rd year, so he should meet this objective by Jan.2018. Daibochi's revenue last year was rm371M vs Tomypak's rm211M, or 76% higher, to beat this figure, Tomypak have to double their current production capacity by end of the year 2017.

Base ref. Capacity = 17,500mt, this was the existing Tampoi factory's capacity in 2015, running at 80% utilizations (ie, 14,000mt actual productions), LHS used this figure as benchmark for their expansion plans.
Hence,
Double the Capacity = 35,000mt, and Triple the Capacity = 52,500mt

In Oct.2014 they bought 10.5 acres of land in Senai to build a new factory for 35,000mt capacity when fully completed by 2021, so that the total combined capacity will reach 52,500mt. This will be done in 3 phases. Compare to existing Tampoi factory on a 4-acre land, the new 10.5-acre land surely can accommodate the new factory for 35,000mt capacity.

Phase-1: To be completed by 2017, now the factory building is built, and 1-production line is running, giving 24,960mt total capacity (existing Tampoi factory was added with a new production line to total of 7 lines, capacity has increased to 19,200mt running at 70% utilization, or 13,440mt). That means the new production machineries has about 5,800mt capacity per line.

Phase-2: To be completed by 2018, by adding 2 more production lines, so that the new factory's capacity will be 3x5800 = 17,400mt.

Phase-3: To be completed by 2019, by adding 3 more production lines, so that eventually the new factory will have 6-lines with 35,000mt capacity.

Together with Tampoi factory, the combined production capacity will be 54,000mt.

Regarding the objective to beat Daibochi's revenue by end of this year, it appears to be on-track, as last year's Tomypak revenue of rm211M was achieved by the 13,440mt actual production, and the Company expects the new capacity of 24,960mt will have 80% utilization, to produce 19,970mt, or 149% higher, together with the new machineries of more advanced technology, with higher efficiency, less wastage, better products, etc., Tomypak may catch up with Daibochi soon if not yet dislodge them from the top position... :-)

Hi pc_FA, About the balance of rm17.3M funds from the RI, the "Cut-off" date of the Q4/16 report was 31.Dec.2016, but the new factory completion was delayed till Jan.2017 due to rainy season (Johor experienced flood), so we can't really know how much money spent until the next Q report. But yes, most of the payments for the building and machineries should have been disbursed, so there may be some balance funds left for adding extra production lines later when new orders can quickly fill up the new production capacity.

According to the Company's expansion plan, there will be 3 phases, to be done by 2017, 2018 and 2021. This newly built factory is Phase-1, with new floor area of 265,300 sq.ft (current factory is 150,000 sq.ft) has increased the total floor area to about 177%.

This nearly doubled floor area should be able to accommodate new production lines to double the capacity when required (the Company has indicated the new capacity at 35,000 tons after Phase-1 expansion versus 17,500 tons capacity in 2014). Initially the new factory has only 1 production line to increase total capacity by 30%, from 19,200 tons to 24,960 tons. This is a very practical and realistic approach, as the 100% increase would take much more time to fill up compared to 30%, so that there would be minimum idling of machineries and workforce. The Company management team is doing a very good planning job and careful execution on the expansions.

From the RI prospectus dated Dec.1.2015, the new factory costs is estimated at Rm82.2M, including construction costs for the new factory building, purchase of new machineries and equipment, initial working capital to procure raw materials, labour costs and overheads, etc. So the RI proceeds less RI Exercise expenses of Rm54.1M is only 66% of the total costs required, the remaining 34% costs shall come from internal funds and bank borrowings if required.

I have a similar optimistic view as PC_FA, Tomypak's new factory should be operational by now, assuming initially the new factory only runs at 50% capacity (conservative assumption) due to teething issues, training of new operators, and Marketing department's efforts to get new customers and more orders, etc... Together with the existing factory that has being running full capacity, the total productions of both factory should be 150%...

That means in the coming Q's results till this year-end, we should be able to see a big 50% jump in turnover and profits, as well as higher profit margins due to newer and more advanced technology of the new factory's machinery, equipment and better process.

Looking at last Q (Q4-2016) results, the EPS 3.84 sen is based on the enlarged share base (net profit rm6.3M at profit margin at 12.3%), annualized EPS 15.36 sen, if Tomypak can increase this by 50%, it would be EPS 23 sen. If the price can hit rm3.00, the PE Ratio is only 13, still very cheap when compared to it's peers...

So, Tomypak has big potential for mid to longer term investment.
.

Actually it is not an official ban of Korean goods by China, just boycott by Chinese public to protest about Korea's installation of THAAD missiles supplied by US. This would only ttemporarily affect Korean goods in China market, but not outside China. See this news:

http://www.reuters.com/article/us-southkorea-china-dispute-idUSKBN16A0T1

Whereas in September-2016, barely a week after CJKE acquired Century Logistics, they signed a deal with Lazada, the coincidence of timing of both events clearly shows CJKE's great plan to use Century Logistics as their ASEAN's regional hub for e-Commerce parcel delivery:

http://www.businesskorea.co.kr/english/news/industry/15815-strong-presence-malaysia-cj-korea-express-acquires-malaysia%E2%80%99s-2nd-largest

http://postandparcel.info/75552/news/lazada-using-cj-korea-express-as-delivery-partner/

According to their agreement, CJ Korea Express will handle the delivery of goods from South Korea to Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam (collectively known as ASEAN region).

President Donald Trump promised to create jobs by following "Buy American first and hire American” policy, but more than 53.5 metric tons of Ivanka Trump-branded shoes, bags, and clothes were sailing to American ports in eight shipments even as he spoke...

http://www.huffingtonpost.com/entry/ivanka-trump-china_us_58c7e73ae4b0428c7f131cc1

The million dollar question is: Can the Shoes, Garments, Leather goods, etc. be manufactured competitively in US? Even with Border Adjustment Tax, it's still very unlikely to be competitive...

http://www.theedgemarkets.com/my/article/trump-has-nothing-asia-should-he-decide-wage-trade-war-here%E2%80%99s-why

DBS Chief Economist say USA would be the biggest loser if Trump start his Trade War on Asia...

The above is just my opinion, not a Buy Recommendation...

Tan Lucy,

To answer why did Datuk Phua sell off his share if the merger is good? Look at it this way, the founder is already 68-yo (67 last year) and should be time for retirement, because the Logistics industry is currently going through hard times, so may be better for him to sell at a good price and retire or do something else more enjoyable. If he refused to sell his 26.2% shares, then it wouldn't be possible to have any MERGER & ACQUISITION in the first place. At Rm1.45/share, the sale price is much higher than Century's historical high, he probably was laughing all the way to his bank. So it's considered a right timing and good price for Datuk Phua to exit the company. The other major shareholder who sold off was Teow Choo Chuan (rip) who held 5.37%.

On the other hand, his nephew Teow Choo Hing who is the MD, still holds 11.3% of Century but didn't want to sell his stake, because he said he is confident of the company's future after the merger, and at 56 yo, he is still young and able (he is a Civil engineer), so he chose to stay on and hold on to his shares, and hopes to increase his fortune after the CJK's e-Commerce become successful...

After 4 months of handover, transition period, planning, reorganization, etc, it's about time for CJKE to fire up their newly modded engine and start running Century on all cylinders...

Hope i4investor got it right..., buckle up our seatbelts and get ready to enjoy the ride...

Century's price traded in a tight range at 88+/-2 sen for the past 4 months after the CJKE took control of Century...

Is this calm before the storm

See the analyst report on 22.Dec.16, Prolexus TTM current P/E Ratio only 7.7, and P/B Ratio 1.2, very attractive valuation:

http://aspire.sharesinv.com/38088/prolexus-slow-and-steady-wins-the-race/

The new China factory expansion was completed recently, the new Vietnam factory should be completed in Q3 this year, and the Kluang factory by end of this year, all these should contribute very positively towards this coming year's revenues and profits. Revenues and profit should get a big boost in 2H-2017 as mentioned by Dolly Chai...

The weakening RM versus USD and Euro continues with trend reversal very unlikely in the near future, this will also add more gains to Prolexus' profit margins...

The warehouse should be ready by June this year. But maybe changed after CJKE took control?

Anybody has the latest update to share?

Good Q4 results, it is a good sign of turnaround...

The Q4 result is comparable to last year's Q4 in terms of revenues and net profit margin, at about 8.4%, which is much better than the average 6.7% for whole year (avg. 6.1% for last 3 Qs). If the rm2.25M paid to Nestle is added in, then the Q4 net profit is about rm8.5M (net profit margin 11.4%), it's better than previous financial year...

Furthermore, the company say that this coming year will see contributions from CJK's network and infrastructures, and don't forget it's new multilevel warehouse to be completed this year will also contribute more profits.

Century Logistics' worst days should be over...

Now technically overbought, and profit taking by traders who bought on Monday or earlier...

Hi Dolly, I'm still holding P'lexus, since last year May/June, only 9 months ago... This is considered as short period for a genuine stocks investment based on FA... Their current low prices , I think its mainly due to uncertainty of their US market, because Trump has dumped TPPA and going to implement BAT (Border Adjustment Tax) to tax imported goods...

Compare to Zhulian, I hold since 1 year ago, because I expected it to turnaround within a year, but saw it's prices slipped slowly to rm1.20s, especially the month just before the Q result, test of our patience, finally it happened and boom it goes like rocket...

So this should remind us to be patient on buying stocks for mid to long-term investment...

I guess the price run up due to funds buying after its turnaround, Zhulian's low liquidity makes it a high beta stock...

I'm so glad I still hold Zhulian for 1 whole year at Rm1.40 cost and finally it has turnaround successfully... :-)

Jenas, dropped 2 sen on a week ending day with only 34 lots traded, no need to worry at all.

Base on Dolly's calculated intrinsic value at Rm2.53, give it a 20% discount due to it's small share base and relatively low liquidity of stocks traded, the fair price should still be above Rm2 or higher after the new factories are completed in Q3-Q4 this year.

Hi Dolly,

I think Noah made a good point, the big quantity of warrants converted and at exactly 1300 lots, it is most likely made by a substantial shareholder, who received a lot of free warrants during their RI subscription in June. Because of very low liquidity of warrants traded at only about 200 lots per day and not easy to sell off at good prices, so they converted their warrants into shares, so that they get entitled to the dividends just before ex-date.

Actually the warrants is not "in-the-money" yet (share price must go higher than warrant price + rm1.20), they paid a theoritical premium of rm0.33 to get the new shares (rm1.20 + 0.53 - 1.40) or ~24% premium. Although it does not make good sense to small retailers like us, but to the big investors who are willing to hold for long-term, they wouldn't mind paying a premium to own more shares instead of buying from the market, as long as they are confident of the Company's future and potential for rapid growth.

Since there is no further announcement on who is the owner of this 1,300,000 new shares, it means this is not a shareholder who own more than 5% shares, because such shareholders must always announce their changes in shareholding.

About share dilution due to warrants converted, I believe the market has already factor-in and reflected in the prices, even when the shares went ex-RI, the ex-RI price adjustment have considered the full conversion of warrants already. The conversions require rm1.20/share, this is 20sen higher than the RI price of rm1.00, so the Company actually benefit positively, not negative, because the money can be used to reduce bank loans taken to build the 2 new factories in Vietnam and Johor, as the RI exercise raised 70% of the required construction costs, the remaining 30% intended to be financed by internal funds and bank loans.

Sorry, correction, he need not announce it.

Hi Dolly, I believe Mr. Fong sold off most of his Prolexus shares during second half of last year when their prices charted new highs, subsequently the prices went downtrend. He recommended Prolexus again 3 weeks ago, that's after the post-RI share prices have consolidated already. The Situations and conditions have changed after that, with their expansion plans progressing well, and USD vs RM strengthening again to new highs post-1998 Currency Crisis.

Who know? It may be possible that Mr. Fong has already collected back some Prolexus shares? But if he still not yet own enough shares to become Top-30 shareholders, he need not declare his shareholdings. With that in mind, it's not fair to blame him for recommending a stock which he sold off earlier, and that he need announce whether he bought or sold his Prolexus shares now.

Mr. Fong Siling @ Cold-Eyes, the successful Malaysian investor, holds the view that as long as the stock he buys has good growth prospects, he is not concerned even if the share price comes down due to poor market sentiments.

Also, growth stocks usually prefer to reinvest their profits to grow their businesses instead of giving out high dividends.

Read the announcement explaining this dividend:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5268545

It is mainly due to the 2:1 RI that increased the share base by nearly 50%, but the total payout is actually higher QoQ, so your claim of better earning but tight cash flow is incorrect.

Still have WTO which is already in place for many years, which Trump can't simply ditch without Congress approval, and the mainstream Republican MPs won't allow him to do that.