Lose-Lose-Lose = Importers-Traders Lose, Consumers Lose, and Manufacturer Lose. Then, he would Lose his popularity and supporters.

iloveshare128, I think Trump is going after big-ticket items like cars, steel products, and high-tech items like smartphones. As for low-tech labor intensive types like shoes, apparels, etc, I think he is not interested. The reasons, beside I mentioned about his family's Ivanka branded Shoes, just moved from China to Africa instead of back to US, the choice is obvious.

If Trump were to impose high tariffs on such products which US can't produce competitively, the consumers may end up paying 2 or 3 times higher prices, imagine what kind of backlash he would be getting? He would get a Lose-Lose-Lose situation, smart guy like him would not do it.

iloveshare128, I think this present uptrend is mainly due to USD/RM uptrend, whereas TPPA's Trump effects was already digested by market after 8.Nov for 2 weeks.

TPPA would have been an added advantage because Malaysia could use TPPA as the platform to dive into new markets like Mexico, Peru, etc who are also TPPA nations but so far have no trade agreements with Malaysia. Anyway, the positive effects of TPPA would only be derived after 2 years or by 2018, so the profits that Prolexus is getting now does not depend on TPPA, it still can grow well while it could have even better with TPPA, because Vietnam is the fastest growing nation in ASEAN now, having an apparel factory there means getting a bigger market share in future when the Vietnamese are more affluent.

So, Prolexus is still a good and sound growth stock with high potential, with or without TPPA.

At current price, the 2016 PE Ratio is still low at 10 only, next month's Q1-2017 results should show higher profits from stronger USD in the past few months, we can expect a pleasant surprise on the upside...

See The Sunbiz today's news, MIDF's forecast on RM vs USD.

http://m.thesundaily.my/node/409884

Mother may be Rm2.0 and above, if the USD uptrend continue to rise above Rm4.5, because of the imminent FED's interest rate hike next month, and most probably another few hikes next year...

Whether with or without TPPA, it simply doesn't make business sense to move labor intensive factories back to USA, Donald Trump and his family are very shrewd in business, so those apparels and shoe making industries should not be moved to US. See this news last month, even his family's shoemaking factory is moving from China to Africa to get even cheaper labor costs, but not going back to USA as he vowed during his election campaigns.

http://www.dailymail.co.uk/news/article-3824617/Trump-factory-jobs-sent-China-never-come-back.html

If he try to forcibly make others go back to USA, he may get backlashed for his inconsistency.

Look at the bright side, Trump may cause USD to rally higher against RM, this will give higher profit margins to USD exporters like Magni and Prolexus.

Also, Prolexus has being growing in the past few years, without TPPA's status, which is supposed to start in 2018, so even if Trump tear off TPPA, US workers still can't compete with Vietnamese or Malaysian imported labours. US average minimum wage is $8/hr, compared to our RM5/hr (minimum wage RM900/month), or 7 times higher, plus their medicare and other benefits, their labour costs could be 8 to 10x higher, how to compete?

Even if brands like NIKE or UA wish to set up automated apparel production facilities in US, this won't help bring many jobs back to Americans as Trump intended, so they have to reconsider this move and keep status quo for the apparels industry.

Latest news reported that FBI will not charge Hillary for the 'email-gate', so she has regained her lead in the polls again. Good news to stocks investors in general, and Prolexus investors especially.

iloveshare128, u r most welcome...

Btw, local prominent stocks investors Cold-Eye, a proponent of long-term investments in Fundamental stocks, he recommends 30 stocks yesterday, Prolexus is in the list, see #18 below:

http://klse.i3investor.com/blogs/the_cold_eyed/108100.jsp

The biggest concern now is Donald Trump lately has a real chance of winning the presidential election, as the FBI Chief James Comey reopened the Hillary's email case a few days ago, and also a Bill Clinton's very old case in 2005. The past few days saw Hillary's 12-point lead over Trump vaporized off, or even show she is trailing 45:46 behind Trump (by ABC Polls).

Trump vow to tear off TPPA if he win, so that the manufacturing jobs will go back to America. This is a real concern to TPPA Signatories including Vietnam and Malaysia, where many of the apparel manufacturers including Prolexus have their production facilities.

iloveshare128,

This article is about the shoemaking industry... But of course in the last paragraphs it also mentioned that in the next 20 years, all labor intensive industries will face the same fate.

This depends mainly on Initial Capital Costs vs Labour Costs, if the initial capital outlay plus interests costs for automatic production is higher than manually with cheap labor costs, then the process of automation will not happen until labor costs increase to uncompetitive levels. This may take many years as the labor costs in the New Emerging Economies (eg., Vietnam, Cambodia, Phillipine, Indonesia, Sri Lanka, etc.) are still competitive and in abundance.

The same cannot be said on Taiwan, where their wages are not cheap and it has a limited labor force. Hence we cannot draw a parallel conclusion on Taiwan vs the others.

Prolexus share prices go up slow and steady nowadays, it means that real investors are buying in slowly. This is surely better than go up fast and down also fast like a flash in the pan, which is mainly due to day-traders and contra-players. Check up the list of their 30 biggest shareholders, most of them are held by trust funds, these are usually long-term investors.

The next Q results should also be promising, as the USD/RM Exchange rates is getting stronger and the trend should continue. The Rio Olympic-2016 in August month should generate more interests in Sports worldwide after that, this should help boost up the sales of sports wears, and this should benefit Prolexus sales and profits.

Watch this video, Jack Ma talked about the future of e-Commerce and Data-based Economy (CeBit) recently, he expects this industry to grow rapidly worldwide:

https://www.youtube.com/watch?v=5MDG1h7rE4g

CJKorea plans to build up Century Logistics to become the hub in Malaysia and ASEAN region in this industry, so the prospects should be bright if you believe in Jack Ma's vision...

In terms of growth rate, Prolexus has more potentials to grow in the next few years, as they are currently on expansion mode. But in terms of dividends yield, Magni is a better bet, while Prolexus won't be able to give good dividends as their money will be used for building the new factories in Vietnam and Johor.

Crossroad,

Agreed with you, in fact, Prolexus-WA should deserve higher premium, around 25-30%, that's what we should get based on Black-Scholes Theory (instead of some ballpark figures made from some Black-Hole's assumptions... :-) ).

This is because the WA has a good "Gearing Ratio" of 2.5~3x with long 4.75 years period to maturity, and the mother share is a growth stock with an average annual growth rates of 15~20% for the past few years, and this growth trend, in the professional views of the Company's BOD, will continue in the foreseeable future. This trend is also stated by Life1nvest's article in i3 yesterday:

http://klse.i3investor.com/blogs/Life1nvest/106216.jsp

Jason Lim,

Correction, UA together with Asics and Nike, are the 3 major customers of Prolexus, not competitor. So UA's explosive growth is very positive to Prolexus group's bottom line...

Hopefully, if based on conservatively PE10x, the Fair Price should be about Rm1.70. If based on forward PE 2017 with their forecasted growth, it should be even higher...

Net profits jumped +57%, although revenues up only 4.4%, best Q4 results ever...

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5217749

When the orders slow down, and the principals have the luxury to choose their suppliers, who would they prefer? Will they choose suppliers who have vertically integrated manufacturing facilities with better quality assurance, at lower costs, better and faster delivery reliability, who have long-term relations with them. Or will they still go for suppliers who outsource their production to third parties with more uncertainties of outcome?

Who would want to build new factories if the eventual winners are always those who don't need factories and rely on others to produce? Lately, Berjaya bosses have sold off their substantial shareholdings in MagniTech, can this provide a clue to this outcome? Vincent Tan is well-known as a shrewd long-term investor...

iloveshares128, do you have any insights on Berjaya's decision to cash out from MagniTech?

In the real insdustries, their top management team are often faced with tough Catch-22 problems, if their business grow faster than their factory production, what should they do? They can either fold their arms and sit on their laurels doing nothing and let the orders slide to their competitors, or invest to increase their capacities to seize the opportunities for more orders later.

But real factories need time to build, and finances need time to source, so they can't look at growth on Quarterly basis, it should be on yearly basis minimum, or even 5-yearly long-term basis. Unfortunately nobody own a crystal ball that can accurately predict the 5-year future. So they can either use short-term solutions like outsourcing to rely on other producers, or make the bold move to build new factories to expand their capacity. Which solution is better? Only time will tell...

Looks like stocks investment worldwide are now dominated by short-term traders who look for instant returns, Nike share prices which have already fallen 11% this year, fell 4.4% further, despite EPS grow from 67¢ to 73¢ or +9% and +7.7% increase in revenues.

Don't forget this future orders +7% increase (minus USD currency appreciation effect) is actually compounded from the growth of 17% a year earlier! To USD denominated exporters like Prolexus, it means +7% growth, plus USD appreciation effect would contribute very positively to their profit margin, in contrary to the USD strength's negative impact on USD-based companies like Nike...

So we should focus on Century's mid to long-term growth prospects after merger with CJK, who intend to transform Century into a major player of express parcel delivery in this region.

Apparently, CJK has chosen Century as their new partner and as the hub in this region, because of Century's new Document Management Services and it's new Multilevel Warehouse in Klang, ready for operations in 2017 next year. This new warehouse is big enough to fit their e-commerce / parcel delivery business growth plans perfectly.

The Star's news on 12.9.2016 above has reported this statement by CJ-Korea's VP:

"CJ Korea, a unit of South Korea’s biggest public-listed logistics provider CJ Korea Express Corp, said the group viewed Century Logistics as the perfect fit for it to achieve its goal of becoming a dominant player in Malaysia.

Century Logistics, on the hand, would be able to leverage on CJ Korea’s strengths, including its technology systems and solutions.

“We can leverage on Century Logistics’ strong local customer base. We are now operating a parcel delivery service but it is still in its infancy. As we see e-commerce growing, we would like to focus on parcel delivery,” CJ Korea’s vice-president for the strategy planning division, Ahn Jaeho, told the press earlier.

“We would like to strengthen and expand the parcel delivery service to become a major player in Malaysia,” he added."

Could it be accumulation of more shares by somebody (or some parties?) ahead of deal's SPA? The current prices stay above the past 1 year's high (closed prices), it looks like at strong support level.

One point we should take note, the MD, Datuk Phua's nephew, Mr. Steven Teow has no intention to sell off his shares, and will remain as the MD after the Korean's M&A...

http://www.thestar.com.my/business/business-news/2016/09/12/century-logistics-md-to-stay-on/

The deal is on. See the announcement on 8.9.2016, the deal is expected to be completed on 31 October 2016. See also the announcements on 9.9.2016, Datuk Phua and his other partners have ceased to be Century's substantial shareholders...

Expecting a good Q results? Q4 report end of this month...

Century can touch RM1.20 after announcing the takeover? Hopefully so...

Hurray..... RM1.20 is a fair price, that's what I expected, yay...!!! :-D

INI Kali kah...? :-D

Good Q2 results... :-)

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5192193

Dear ktsk88,

With the same formula used in 2015 BI Adjustment, the New Warrant C and D Exercise Price should be = 10sen x 1 / (1 + 0.25) = 8 sen.

If it remain at 10 sen (par value), will it be unfair to existing WC and WD holders? Or Company should compensate them with more new warrants if it cannot be less than par value?

New Warrant B Exercise Price should be about 24sen x 1 / (1 + 0.25) = 19.2sen = 20 sen (round up to nearest sen).

beatnodie,

Warrant B or C/D exercise prices will change according to the above formula, but the market prices after BI may vary according to market forces, either higher or lower, depending on the buyers and sellers sentiments of the day.

Thanks, jjasonlim... :-)

jjasonlim,

I'm puzzled, how come the Bursa Announcement site only shows the "Bonus Issue" #5183925, but not the "Adjustment" #5183933, 37 and 41 ?

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5183925

This is very strange...?

Yesterday's news about a local fund's sell down of several stocks, which RHB Asset Mgmt denied they are the one, could Prolexus be one of the stocks?

http://www.thestar.com.my/business/business-news/2016/08/25/no-selldown/

Anyway, Prolexus shares is oversold by now...

No big reasons for the sell-off, may be a certain fund manager is disposing their shares for cash...

BoPoint, maybe you have some feedback from your source?

How about 1.20...?

Is the Datuk Phua's deal is closing soon?

KazaboommMM... :-)

September too...

Q2 results to announce by mid-August, follow by EGM Approval on BI, then ex-date of BI by September, one booster after another... :-)

Bersabar lah... Datuk Richard Phua is waiting for a good price to sell, and time is in his favour... :-)

This sostupid is really so stupid, just like his own nick... O:-)

Calm before the STORM...?

bowman,

I think yes, that should be part of their master plan to grow Vivocom to prepare for their MB transfer next year.

Come this August, when the Q2 results is announced, if the revenues and profits far exceed market expectations again, this would be another CATALYST for the share price to go up higher until the BI ex-date.

Another reason why the Company giving BI, besides rewarding the existing shareholders, is to raise fund indirectly. The Company recently done a PP to raise fund, so they must not do that again because the PP is bad for the shareholders due to EPS and equity dilutions.

But they are still in need of funds so that they can secure more projects and deliver them timely, smoothly and successfully with quality. The new fund is even more pressing now that they are bidding for more jobs, as well as expecting mega-projects from CRCC and other China related companies, the Company must be able to assure their clients that they are financially sound enough to be trusted with such big projects.

The Company do not want to borrow too much from banks because they wish to get ~10-12% profit margins, the borrowing costs would reduce the margins. But shareholders don't like rights issues to fork out more money, so the alternative way is to induce the current warrant holders to do conversions, and collect the "Exercise Price" as new funds.

Next thing is, how to make warrant holders convert? By doing the BI exercise, the share prices should trend up towards the Ex-Date, which is sometime in September'2016 (see page-10, Section-8). This means the warrants may be "in the money", by converting warrants to shares the holders would get higher profits, thus inducing them to convert.

This would be a WIN-WIN option for the Company to raise more funds, while the shareholders and warrants holders get to enjoy higher profits from their equities.

The warrants B, C, D will get proportionately adjusted in terms of "Exercise Price" and/or get extra number of units. This is to avoid any potential equity dilution of the warrants by the Proposed Bonus Issue.

See the announcement's attached file, page-9, Section-4.5 :-

"The Proposed Bonus Issue may give rise to adjustments to the exercise price and/ or
number of outstanding Warrants B, Warrants C and Warrants D......

Any necessary adjustments to the exercise price and additional number of Warrants B, Warrants C and Warrants D to be issued arising from the Proposed Bonus Issue in relation to the outstanding Warrants B, Warrants C and Warrants D will only be finalised on the Entitlement Date......."