Runnn...

Noted, thumbs up...

DRwarrant, Bursa Malaysia going to pace on warrant era(yours era). DNEX, CENSOF, BIOHLDB, etc...son outperformed mother!!! Does LUSTER follow the same pace? Check it out!!!

Runnn

Luster Industries - Casino Project Halted
Author: sectoranalyst | Publish date: Wed, 1 Mar 2017, 04:13 PM

Review

Luster Industries (Luster) recorded substantial losses of RM24.6mn in 4Q16 due to goodwill written off (RM16.7mn) and asset impairment (4.0mn) and the forfeiture of deposit for casino of RM1.7mn as the project was halted. Excluding all these, Luster’s FY16 core losses of RM6.1mn trailed our expectation. The variance was due to the absence of profit guarantee from its Cambodia NFO units, which failed to rake in US$1mn for FY16.
Luster’s core losses increased by 17.8% to RM6.1mn as the manufacturing unit failed to turnaround on the back of increased operating cost arising from 1) increase in minimum wage in Malaysia; 2) additional cost incurred on factory relocation, and 3) one-off retrenchment cost. Meanwhile, the gaming unit also failed to report profit for FY16 due to poor luck factor. The lottery business in Cambodia recorded RM2.0mn loss in FY16.
Despite losses, Luster’s net cash position remained unscratched with cash surplus of RM16.4mn in Dec-16 (RM15.3mn as at Sep-16) as the losses arising mainly from non-cash expenses. The near-term liquidity risk remained low with current and quick ratio of 3.6x and 3.1x respectively.
Impact

No change to our FY17-18 earnings projections. We believe FY17 earnings of RM3.4mn is achievable as there will be maiden contribution from property division as explained below.
Outlook

Luster booked in RM11.1mn as property development cost in Dec-16 and we believe the company has completed the abandoned housing project, known as Taman Tasik 1Malaysia, in Perak. As such, we can expect sales of 106 units of properties to begin in 1Q17. Note that this is a build-then-sell project and Luster has recently upgraded the project status to “Kediaman Kos Sederhana”. Based on an indicative selling price of RM250k/unit, the project is expected to contribute RM26.5mn to FY17 revenue.
The group has charged out the deposit for casino project as expenses this quarter, indicating the group is no longer going ahead with its warehousetype casino in Cambodia. We believe this is after taking into account the move to lift casino ban in Vietnam. Note that the Vietnamese government announced that from Mar-17 onwards and for a three-year trial period, citizens aged above 21 and earning at least 10mn dong per month would be allowed to gamble at two new casinos in Vietnam.
Recommendation

We maintain Luster’s DCF valuation at 10sen/share, based on unchanged discount rate of 14%. However, given the share price has appreciated by 80% YTD, we downgrade the stock to Hold with upside potential of 11%. Future catalyst will come from Phase 2 of Taman Tasik 1 Malaysia project, which the group has the first right of refusal in completing the jobs.
From Oct-16 to Feb-17, there was a number of off-market deals initiated by the founder, Mr. Lim See Chea, and a substantial shareholder, SUNCITY Entertainment. Mr. Lim has disposed of a total of 76.2mn shares (4.4% of outstanding shares) at price ranging from 6sen-8.5sen/share and SUNCITY has disposed of 5mn shares (0.3% of outstanding shares) at 10sen/share. During this period, Luster share price climbed from 6sen to 9sen.
Source: TA Research - 1 Mar 2017

Penny stocks coming...

DR, I would like to render ultimate esteem and pay tribute to you...RIP

Noted

The calm before the storm...

Noted.

Runnn

Doctor, I mean the sheer audience and pessimists in this room.

Regret...

Doctor, lusterwa traded 4.5cts early morning, you seem like been motivated to alter your prophecy from TOMORROW to TODAY. Good try and go ahead...Runnn

World's market sentiment extremely good, it looms an exuberant occasion for Luster to unveil good news(IF any) before the ebbing tide...

Thumbs up

Someone reaping fruits? Haha

Optimism-Luster hovering at 9cts cuddled with rhetoric from different pundits, envoys and insiders, it's going to breach 10cts and heading to consensus target 30cts. Price runnn

Pessimism - Luster shivering at 9cts flooded pretry much of goodies and rumours from gunners or shepherds ostensibly on behalf of the Predator's in order to reap fruits at 9.0-9.5cts. You runnn

Runnn

"Tom always forge tricks to trap me. First trapped I called it an experience. Second trapped, I should confess I fooled myself into the trap." Said Jerry.

Runnn

This forum flooded plenty of professional, now DrLoVe appear also. Luster seems will not out of ammunition ever.

Buy before the price runnn

Doctor, don't be anxious, I know you very care about your "patient" here. No worry, IF tomorrow Luster can't get at 9.5cts, we can go for wa/wb 4.5cts sure get.

Doctor, Surejackpot's advice is better than yours. At least he advice ppls go for ASM earn 6% dividend annually. That day you ask me put FD 3%,OMG. Fortunately I haven't started my car heading to bank that day.

Wa/wb 3.5-4cts, good buy or goodbye?

oic

Doctor, what next? Only left a day before CNY, your finger cross target price seems yet to materialised.

Consult doctor.

Doctor you really superb

Hahaha

Runn

You're right doctor, based on historical chart wa/wb should be priced at 5-6cts. But the market seems not to appreciate the history. Did you?

Runnn

Dr's dedicate plenty of efforts to luster, do analyse and research till late night. #applauding...

Runn

Runnn

Doctor, I guess most the fellows' here reading your lip since two years ago as usual gain nothing but fun.

New chapter begin...

The end...

Haha..mouse trap

Run...

Run...