Target price : RM2.26

https://sg.finance.yahoo.com/news/hock-seng-lee-robust-order-073025461.html


Hock Seng Lee – Robust Order Book Of RM2.3 Billion, Possible 30% Upside?
Shares Investment
By Tan Jiahui | Shares Investment – Thu, Sep 29, 2016 3:30 PM SGT

To be more precise, land reclamation, dredging and other specialised water-related engineering projects falls under a niche segment called marine engineering (or marine civil engineering).
This time round, we take a closer look at Sarawak-based infrastructure firm Hock Seng Lee (HSL), who is seen as a beneficiary of the increased infrastructure spending in the region. Given Sarawak’s swampy terrain, reclamation usually needs to be carried out before most construction activity can take place and HSL with its marine engineering expertise has an edge in this area.
Business
HSL started as a company principally engaged in dredging and land fill operations. As the firm grew in size, it began undertaking land reclamation projects of larger size and complexity, establishing itself as the Sarawak’s market leader in land reclamation.
Along the way, the group also acquired complementary expertise in soil improvement works, shore protection, drainage and water reticulation activities. Consequently, the firm diversified into a wide range of civil engineering and constructions works, which includes road works, township developments, tunnel boring as well as other infrastructure projects.
While the company has also dabbled in property development, its construction business is still the largest revenue contributor, accounting for 95.1 percent of FY15 turnover.
Since its listing in 1996, revenue has been on a general uptrend, albeit lumpy at times due to the nature of its project-based business. Similarly, net profit has also been fluctuating over the years, underpinned by the lumpy revenue recognition and cost pressures faced. That said, HSL has remained profitable each year since its listing, a commendable record.
Promising Outlook Underpinned By RM2.3b Order Book
Based on the close price of RM1.75 per share as of 28 September, HSL’s shares have slid approximately 18.2 percent from a high of RM2.14 per share in March. Apart from market volatility, the lacklustre 1H16 results was probably a main contributor to the poor share price performance.
For 1H16, top line fell 25.8 percent to RM249.3 million while earnings declined 22.9 percent to RM28.3 million. The weaker results were mainly attributable to lower revenue contribution for newer projects and the completion of older projects.
However, turnover and net profit are expected to pick up in 2H16, on the back of successive job wins for two major projects worth RM1.9 billion in 1Q16. The two contracts secured were for the RM750 million Kuching City Central Wastewater Management System (Package 2) project (HSL’s stake: 70 percent) and the RM1.7 billion Pan-Borneo Highway package 7 (HSL’s stake: 75 percent).
With the latest contract wins, HSL’s order book was boosted to RM2.3 billion as of 30 June 2016, which should keep the firm busy and provide earnings visibility for the next four to five years. As the new projects were only secured in March, revenue recognition was negligible for 1H16 though the pace is projected to pick up going forward.
Healthy Balance Sheet With Zero Debt
Apart from the outstanding order book, HSL also boasts a strong balance sheet with no debt and RM113.8 million in cash and equivalent and short-term investments as of 30 June 2016.
While the current dividend yield of around 1.4 percent is nothing to shout out about, we like that the firm has been consistently rewarding shareholders with dividend payouts in each year since its listing.

Overall though, analysts on the streets appear to be rather optimistic on HSL, with the consensus rating equivalent to a ‘Buy’ call and an average target price of RM2.26, which implies a possible 29.1 percent upside from the close price of RM1.75 on 28 September.

Chiong Sifu vs Wong Sifu. Shadowless leg

Hope the epf selling spree is over la. Acquired a little bit ad

kwongliang, u untung other counter i congrates u la. dont understand why u need to laugh and being sarcastic when price drop.

u can get 100% spot on of ur stock pick anot? if can come tell us all here la.

iloveshare128 , gogogo...

oh, so what the research paper say is got point in the TA point . thanks ya scjm

Hi sjcm, understand u r familiar with TA. If u wouldn't mind to share what your thoughts on the TA analysis of this Maybank research ?

http://klse.i3investor.com/blogs/telecaster_lsk/96740.jsp

Let see how this gona perform today ya:

http://klse.i3investor.com/blogs/telecaster_lsk/96740.jsp

gogogo

Thanks for ur write up, still remember it gapped up. Hope to see more of ur write up n more gap up

If qr indeed good, the effect to share price will be better than vivocom in a num of ways. The share base is much lower for HSL. And shareholding is tightly control by owner. In much better cash position than vivo. And I dun believe it will need to window dress it's report with big goodwill like what vivo did. Hsl is high potential at this price as I see. Even if qr not as good, keeping it also not a bad idea with consistent div

No. CMSB and HSL is very distinct. CMSB was bogged down by their production plants divisions as explained in their press release. They operates cement plants and smelting plants, which consume alot of consumables and depends on price of commodity. Cement price is fixed per 50kg bags. additional cost will eat into their margin. especially the shut down and maintenance during last quarter. The cost of replacement parts for mill equipments mostly are USD or Euro denominated, most parts come from Europe. they also suffer lost on their smelting plants.

so just because they are from sarawak, cannot equate them. So CMSB also a Malaysian company, so any other counter in Bursa also 'the next CMSB'? i think this way of linking is wrong la.

I cant tell how the qr for HSL will turn out, but looking at their current condition, it all indicates goodness la. Their property sold out despite the current property situation. And their awarded project more than doubled. first trench of downpayment claims for these project if recorded as revenue alone can be extremely substantial.

Sarawak, despite the Pan Borneo Highway, the overal construction is low. And their cement plant suffer from low demand because of this.

Heres why HSL is not the next CMSB, in my humble opinion

Cooling, cmsb n HSL is same as far as both are Sarawak only. Cmsb down coz profit slump. Reli don't think same as HSL. I think HSL qr will be very good.

http://klse.i3investor.com/jsp/blog/blallpost.jsp?blid=2534

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5083957

http://www.theedgemarkets.com/my/article/proposed-asset-disposals-will-pare-down-farm%E2%80%99s-best%E2%80%99s-bank-borrowings

sebastian, i thought the tentative price already announced @ rm240mil, or about rm3.93 per share.

any stories from the EGM?

Dear all, please leave a comment on this page to notify us on any exercises that involving your stock pick such as split , bonus, right etc. Please also notify us on the telegram group. if u are not a member of the group, notify us on this comment will do.

in spirit of solidarity , on behalf of all supporters of genuine forumers, we unilaterally denounce the despicable act of impersonating other person's ID to post, with intention that is less than genuine. Regardless the person who do this is a dato ke, orang kaya ka, orang pandai ka, menteri ka , these are cowards and deserve no respect. We are in full support to the victims which is clearly do not deserved this. don't defame people with such act .. come on.. u who read this , who eat pepper sure feel hot. siapa yg makan cili pasti rasa pedasnya

Paiseh late. Lsk ah.
Instaco @ 0.275 X 109,000 = RM 29,975
SYF @ 0.63 X 47,600 = RM 29,988
Cepat Wawasan @ 0.73 X 13,600 = RM 9,928
Bornoil @ 0.155 X 130,000 = RM 20,150
Siggas @ 0.535 X 18,600 = RM 9,951

Total = RM 99,992

Thanks!!

Keke. Good job the steward

Neutral news la as I see. Bad say bad, good say good lo. This is neutral, be fair lo, dun say is bad. Cause unnecessary panic to ppl who got.

www.thestar.com.my/business/business-news/2015/12/30/fgv-and-p-and-g-to-develop-jointly-model-for-sustainability/?style=biz

Ok no financial impact kind of news

anyone has any idea whats this announcement means?

Felda Global Ventures Holdings Berhad (“FGV”) wishes to announce that it has signed a Memorandum of Understanding (“MOU”) dated 30 December 2015 with World Resources Institute (“WRI”), Procter & Gamble (“P&G”), Malaysia Institute For Supply Chain Innovation (“MISI”), Wild Asia, Proforest Initiative and Daemeter to express their intention to collaborate and work together in the development of the Smallholder Supply Chain Risk Assessment Model (“SHRAM”).

The MOU sets out the understanding and intention of the parties during this interim exploratory period. The MOU shall remain valid for 3 years or such extended period as agreed in writing by the parties.

None of the Directors nor major shareholders of FGV or persons connected with them has any interest, direct or indirect, in the MOU.

This announcement is dated 30 December 2015.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4963125

Irregards hidden or exposed, a gem is still a gem

Esok apatu limit up!!

Mieco gogogo

Chiong, can advice how to see ada T3 T4? Kekeke

uems is developer, likely no. both different biz nature. got oso, more to uems got job (to build its property development) give other related company do. if uems hold 66% of uems group, then this news will benefit uems. i may be wrong oso la. haha

annetan, just to ask ya, that news is uem group get project. This news will got concen to UEMS? i think wont affect, i may be wrong

www.thestar.com.my/Business/Business-News/2015/10/22/Govt-gives-OK-for-MRT-line-to-link-to-Serdang-and-Putrajaya/?style=biz

will it be ok to add me in the discussion group as well?

one question ya, may i know what is the Company and Group as spelled up in the annual report? The stock is considering only the company or the entire group?

they havn't annnounce ex-date ya for the right?

rikki, can i seek your clarification.

1. for your calculation of gross-profit for month of April, you take the value of gold inventory. They can mine and produce the gold, as long as they don't sell it, it will not be revenue and be kept as inventory.

2. Your gross profit calculation do not take into consideration of mining cost. eg cost of Labor, power and utility, operating and admin cost?

3. I think the conservative calculation is revenue of Apr as you calculated x 12 = RM70,888.38 x 12 = RM850k.

4. Fixed tribute is 7.5% for PKNP and MMC + 10% for Champmark. So total die die must pay 17.5% of gold sales (REVENUE, not profit). That 10% for Champmark can be offset by advances paid to them.

Given above, is this company worth it ? if not worth, how will Hap Seng Insurance (proven track record) willing to take a stake?

Dear Ah_Siang,
can compare another goldmine at Raub, page 2 tells the output
http://www.peninsulargold.com/docs/pa300613.pdf

it says that mine produces 22,383 ounces of gold from the processing of approximately 1,288,000 tonnes of blended tailings and shallow in-situ material. Not sure the comparison is identical, Bornoil mine appears to be more productive. (Bornoil 277.8 ton of waste per oz gold, compare to 575 ton of waste per oz gold).

but Bornoil need to pay alot of tributes, to Champmark (7.5% of revenue), State government (10% of sales revenue), etc etc.

Plus, the production capacity for Bornoil at the moment is 10x smaller than this other company.

not sure end game is worth it or not.

Besides, im no expert, if anyone can help share ??

mops is price of processed petroleum published daily in Singapore.

air travel actually increased 10% in the first 5 month
http://www.thestar.com.my/Business/Business-News/2014/06/27/KLIA-RECORDS-23-MLN-PASSENGERS-IN-FIRST-FIVE-MONTHS/

not sure if i can ask here. Last time hong leong platform shows transaction based on a sum. eg, if i buy 200 unit at best sell price, the reflected details is 200 buy transaction. But now, if i buy 200, it will breakdown into seperate individual transactions, eg, 50 + 70 + 80 = 200. the trade detail represented in this manner is misleading. hard to tell when big selling and buying are happening when all transactions are breakdowned. has anyone also share the same concern?

Oil is 9 month high. And as long as Iraq crisis ongoing, price is continue upwards for forseeable future at least till nxt quarter. Which will translate positively to petdag earning. Mops rate below

http://www.bunkerworld.com/prices/port/sg/sin/

hi alvin, that news maybe only affect Petronas Carigali Sdn Bhd. Not affecting Petdag as a retail business. Petdag mentioned their margin lower affected by crude oil price.

http://www.forbes.com/sites/jessecolombo/2014/06/12/crude-oil-just-broke-out-heres-what-it-means/

there are many subsidiary by Salamander, and Sona is purchasing Salamander Energy (Bualuang) Limited, which is registered in British Virgin Island.

There is another subsidiary registered under the name of Salamander Energy (Bualuang Holdings) Limited, register in UK.

Not to judge is not a good deal, but this does sound some concern and shall have room for more scrutiny.

See page 98 of the financial report below

http://www.salamander-energy.com/system/files/uploads/financialdocs/Salamander-Annual-Report-2013.pdf

http://klse.i3investor.com/servlets/fdnews/221543.jsp

Crude oil chart

http://i1.wp.com/www.sunshineprofits.com/media/cms_page_media/2014/5/30/2014-05-29%20-%20wtic_W.png

It was said earning drop because MOPS is low last quarter. it is ok I'd it suggest the earning of last quarter is affected by low mops. Reports shouldn't misled public with MOPS price affecting futures prospect of petdag. For instance, average of mops is higher in Q2 compare to Q1.

Mops is the average price of refined crude oil in Singapore. The cost of refining is taken into account , so typically the price is higher than crude oil. Unfortunately it is hard to track MOPS prices as individuals because the data is only available to those who purchase it, unlike the publicly available charts from the NYMEX.

Let us look at the chart of crude oil. Early Jan is very low. The average price of crude oil fm Jan to end of mac is lower in comparison to Apr and may, Q2.

Fundamentally, petdag is not a company where high growth shud be expected upon maturity. Their business is good. Its business will only be affected when aeroplane and cars don't run on fuel anymore.imho, there is no exceptionally bad sentiment that cause 30% drop

thanks apprentice for your guidance.

apprentice, ur right. epf have reduced about 4.5mil units of stock worth >rm100mil from apr to now. in fact, their latest holding is <5%, bcoming non significant shareholder by definition. at their existing current holding and petdag trading at this price, epf probably has the reasons and room to increase their holdings. of course, this is only a guess.

apprentice, may u share, CIMB (or any other CW issuing banks) has the tendency and motives to want a share to drop below their warrant value in comparison to its exercise price? i seldom trade CA, but wish to learn more

I shall address the 2 issues that the research house is so concern negatively about, namely:

1. concern on reduced MAS routes. Hugh Dunleavy, the MAS’s director of commercial operations, has this to say

"A review of all operations may take about three months, with implementation of changes maybe requiring another six to nine months", - See more at:

http://www.themalaymailonline.com/money/article/mas-rules-out-bankruptcy-steps-up-overhaul-in-bid-to-break-even#sthash.aEpyCnX4.dpuf


2. concern on decreasing MOPS. Reseach house suggested earning decline despite strong revenue due to decrease in margin, because the MOPS price is relatively low last quarter. What it did not say is, MOPS price is appreciating this quarter, which by same argument, translate to higher margin and earning. Following link to the MOPS historical chart.

http://www.aip.com.au/pricing/facts/Facts_About_Singapore-Wholesale_Price_Lag.htm

3. Overpriced at high PE. This i have to agree, cannot counter. But does this point warrant a 30% dip in share price?

At least for this quarter, Petdag is favourible. A little research is all it needs before any research house publish any report. Which cause panic selling and price slump. If the research house report writing is deliberate, i only can say, well done. Caused those who juz bought Petdag before May6 some misery, at the same time present opportunity to those who deemed Petdag has a potential for rebound.

Welldone TA & CIMB!!

hi, wat do u think about its warrant? if so, Petdag-CI or Petdag-CJ would be better?

anyone has any comment on how India's General Election result will affect AirAsia?