New machines up capacity by 19% has started contributing. Will it continue to growth in near future?

PER: 12.3x
Gearing: Net cash 21 cents / share

EPS
31 Mar 16 - 3.08 cents
31 Dec 15 - 4.42 cents
30 Sep 15 - 3.17 cents
30 Jun 15 - 2.35 cents
31 Mar 15 - 1.85 cents

Revenue:
31 Mar 16 - RM 85.4 million
31 Dec 15 - RM 81.0 million
30 Sep 15 - RM 68.4 million
30 Jun 15 - RM 67.2 million
31 Mar 15 - RM 66.8 million

PBT:
31 Mar 16 - RM 7.6 million
31 Dec 15 - RM 9.5 million
30 Sep 15 - RM 8.0 million
30 Jun 15 - RM 5.2 million
31 Mar 15 - RM 4.6 million

Is it good news coming? Share price keeps breaking new height. Go go go

Raider. The quantity of shares sold is too small. Not much effect la. Don't divert our attention. We focus on its top and bottom lines growth. The main question is Tguan overvalued or not at PER 10.5X

SAM is a Singapore company in an indirect way. Singaporean must be very confident of their own company. Some more, it is controlled by Temasek. No hanky panky.

Dividend yield of 5.5% at the price of RM 7.7. It is very attractive returns to Singapore funds company.

PER 20x is just an indicator of past performance. Share price were obviously over hyped if no factory expansion. When you stand on higher ground, you would see future PER at much lower multiple. New factory 5 times bigger than the existing one will give investors a lot of imagination.

Uncle Koon loves growth stock. It could be he has started joining this ship.

Waiting for uncle Koon to top up. lol

Low liquidity. Price can easily hit above 4.00 when someone pump in RM 1 million. Expect the company to undertake share split or bonus issues.

Just started breaking new high. Momentum is getting stronger. Congrat to the strong holders.

Price up slowly and steadily even though facing Brexit news. It is still below NTA.

Sold down overdone in the past few days. Happy to buy more at cheaper prices.

BJCorp should dispose its non core business i.e. Atlan, BJFood, Redtone.... Robin should not follow his father footsteps. These business are keeping the top management busy and focus in everything and earn nothing in the end. No laser sharp focus would lead the business to Stone Age. Investors don't favor conglomerate anymore. Congromerate has become a dinosaur nowadays.

Value trader is taxing unless you really enjoy doing research.....Do research cum trading in your blood. I prefer KC type before reaching retirement age....so relaxing lifestyle. Lol

BJcorp did something funny to buy back its shares again. I thought the warchest was built to pare down the borrowing.

Gaming Right la.

Better write off the Intagible Assets RM 4 billion. People don't really know what is it...Really eyesaw.

It seems like FLBhd is turning into value play by looking at its top & bottom lines... Bye bye to growth model.

With so much contract on hand, buy on the dips. Another stock like SAM...

It's good to learn such information except profit RM 18.75 million ( 75mt x .25 ) ....seems like simply plucking a figure from the sky. CPO price only RM 2500/mt so how to make so much profit unless the price goes up to RM 3500/mt.

No idea on how the share price movement. No ending if we want to discuss price up or down due to UMNO sacked Muhyddin, Brexit, Donald Trump, Crude oil price,.....

The cash call RNCPS RM 94.5 million was subscribed by Non-controlling interests in 1st Qtr 2015. It doesn't come from the shareholders of Tekseng other than the private placement RM 28.9 million.

Judging from the past track records of its ability to generate positive cash flow, it's reasonable make an assumption that TeckSeng would continue to do so in next few quarters.

Please throw your shares if you don't feel comfortable with its gearing level. Many investors are waiting to grab at cheaper price.

Look at the facts of Tekseng and judge yourself before making your own decision for buy or bye.

We all know that it's important for a company to generate positive cash flow from the operating activities to funds its capital expansions. Therefore, we need to look back to identify its track records.

Positive cash flow from operating activities:
Year 2016 - RM 21.7 million ( 3 months ) Before purchased of P & M RM 10 million)
Year 2015 - RM 22.3 million ( Before purchased of P & M RM 162 million )
Year 2014 - RM 62.3 million ( Before purchased of P & M RM 54 million
Year 2013 - RM 11.3 million ( Before purchased of P & M RM 6.5 million

Financing:
The company made a first cash call RM 94.5 million in year 2015 and further private placement RM 28.9 million for purchase of P & M. No right issues taking place since 2012.

PER: 12.4x ( exclude compensation received )
PER: 15.7x ( exclude forex gain & compensation received )
Gearing: 0.22

Diluted EPS (after adjusting increasing shares and warrant):
31 Mar 16 - 1.84 cents ( exclude forex gain & compensation received )
31 Dec 15 - 3.05 cents
30 Sep 15 - 1.48 cents
30 Jun 15 - 1.08 cents
31 Mar 15 - 0.61 cents

Revenue:
31 Mar 16 - RM 131 million
31 Dec 15 - RM 122 million
30 Sep 15 - RM 61 million
30 Jun 15 - RM 79 million
31 Mar 15 - RM 59 million

Profitability:
31 Mar 16 - PBT RM 17.8 million ( exclude forex gain & compensation )
31 Dec 15 - PBT RM 16.4 million
30 Sep 15 - PBT RM 14.5 million
30 Jun 15 - PBT RM 4.5 million
31 Mar 15 - PBT RM 2.7 million

OTB. What a coincidence.... to meet your selection criteria. I was just sharing for what I know based on the facts. It's not easy to make a decision if we don't have sufficient information to justify the future potential of a company. I believe that solar power is a trend in meeting green energy demand. But I don't know how the share price would perform in short term. Thanks.

Venfx. it‘s a high growth stock. High potential of USD appreciation. PER is not over hyped. Of course, we got to bear the risks of higher gearing.

This article first appeared in The Edge Financial Daily, on April 27, 2016.


Tek Seng Holdings Bhd (April 26, RM1.25) Upgrade to buy with a target price (TP) of RM1.48: Tek Seng Holdings Bhd’s solar segment, which achieved a significant turnaround in the third financial quarter ended Sept 30, 2015 (3QFY15) after a production ramp-up, is expected to achieve better economies of scale in FY16 and lead the company’s earnings growth. Tek Seng’s bottom line is estimated to grow 110% year-on-year, with 66% of its net profit (after minority interest) to be contributed by the solar segment.

Tek Seng’s construction of a new plant has been completed recently. To recap, this three-storey new plant has a gross floor area of close to five acres (2ha) and can house 10 solar cell production lines. The floor space of the existing plant is fully occupied by four production lines, out of which one was installed in 4QFY15.

Tek Seng will be installing three new production lines in June 2016. All the capacities of these three new production lines (fifth to seventh line) and the fourth line will be fully taken up by a customer on a 5+5 tenure. We note that these four lines (total capacity: 350mw per annum) would have much lower margins (low single-digit profit after tax margin) than its other lines, but their profitability (estimated RM5 million to RM6 million per annum) after excluding minority interest is certain. Tek Seng can pass on any cost fluctuation (including labour) to its client since the latter has committed to a minimum take-up volume.

To recap, Tek Seng, in its recent placement, has allocated RM7 million to RM12 million for the acquisition of two solar cell manufacturing lines with a combined capacity of 140mw per annum. We understand that Tek Seng is currently in advanced negotiations with one of its existing clients to activate these two new production lines and the terms are expected to be finalised by early-3QFY16. Management expects these two production lines (eighth and ninth line) to be installed by end-FY16. All in, Tek Seng’s capacity is expected to reach 700mw per annum (from the current 300mw per annum) with nine production lines slated to come on stream by early-FY17.

Post the new capacity expansion discussed above, Tek Seng’s new plant would still have space for an additional five production lines. We understand that Tek Seng is exploring business opportunities to activate five new lines (10th to 14th line) with a US-headquartered client, that is a contract manufacturer for solar modules assembly and with plant facilities in Malaysia. We have not factored in any earnings from this potential expansion for now without a better clarity on the terms and timing.

Management guided that Tek Seng’s 1QFY16 solar cell average selling price stays firm at 38 US cents (RM1.50) per watt and will be sustainable through May. However, the selling price could soften to 36 US cents to 37 US cents per watt in June due to weaker wafer prices.

We are expecting a net profit compound annual growth rate of 40% between FY15 and FY18, with the solar segment being the key earnings growth driver. We estimate the solar segment would contribute 66%, 74% and 75% of Tek Seng’s net profit in FY15, FY16 and FY17 respectively.

The EU’s Feb 16 investigation outcome revealed that Tek Seng and its joint venture (JV) partner, Solartech Energy Corp, were not involved in the transhipment of China manufactured solar products from Malaysia and Taiwan to the EU, and hence, are exempted from the EU’s anti-dumping and anti-subsidy duties. Based on the investigation results, we see minimal risk of a dramatic drop in demand due to anti-dumping related issues in the US.

Extracted from AR 2015:

TS Solartech had managed to expand another turnkey line in the end of
2015, resulting our current capacity at 280MW. Moving forward to 2016, TS Solartech are increasing another minimum 280 MW in production capacity, making us a total capacityof 560 MW. We are looking to further expanding
TS Solartech’s capacity in order to meet the global demand.

With the growing awareness towards greener environment and the recovery
of fuel price, solar industry is believed to be able to slowly gain momentum. With the Paris summit and US’s tax credit extension, we believe the solar market is slowly recovering. Therefore, we remain optimistic in TS Solartech
like how we have done for the past few years.

Look at the facts of Tekseng and judge yourself before making your own decision for buy or bye.

We all know that it's important for a company to generate positive cash flow from the operating activities to funds its capital expansions. Therefore, we need to look back to identify its track records.

Positive cash flow from operating activities:
Year 2016 - RM 21.7 million ( 3 months ) Before purchased of P & M RM 10 million)
Year 2015 - RM 22.3 million ( Before purchased of P & M RM 162 million )
Year 2014 - RM 62.3 million ( Before purchased of P & M RM 54 million
Year 2013 - RM 11.3 million ( Before purchased of P & M RM 6.5 million

Financing:
The company made a first cash call RM 94.5 million in year 2015 and further private placement RM 28.9 million for purchase of P & M. No right issues taking place since 2012.

PER: 12.4x ( exclude compensation received )
PER: 15.7x ( exclude forex gain & compensation received )
Gearing: 0.22

Diluted EPS (after adjusting increasing shares and warrant):
31 Mar 16 - 1.84 cents ( exclude forex gain & compensation received )
31 Dec 15 - 3.05 cents
30 Sep 15 - 1.48 cents
30 Jun 15 - 1.08 cents
31 Mar 15 - 0.61 cents

Revenue:
31 Mar 16 - RM 131 million
31 Dec 15 - RM 122 million
30 Sep 15 - RM 61 million
30 Jun 15 - RM 79 million
31 Mar 15 - RM 59 million

Profitability:
31 Mar 16 - PBT RM 17.8 million ( exclude forex gain & compensation )
31 Dec 15 - PBT RM 16.4 million
30 Sep 15 - PBT RM 14.5 million
30 Jun 15 - PBT RM 4.5 million
31 Mar 15 - PBT RM 2.7 million

If you exclude both Forex Gain and Compensation from supplier worth RM 9.8 million, PBT stood at RM 17.8 million which is much higher than RM 2.7 million reported in last year corresponding quarter. There is a reduction in gearing from 35% to 22% when you compare with 4th Qtr 2015 results from the private placement.

More important is Tekseng able to generate positive cash flow from operating activities RM 21.68 million before deducting purchase of P & M worth RM 10.1 million in the latest QR.

In the latest QR, Puncak did not want to reveal the reason for losses RM 23.2 million in Other segment. Any idea what is the reason?

If you got holding power, you can ignore the noises and wait durians to drop.

With this tactic, Rozali could press down the share price of Puncak and accumulate (or test share price) Triplc shares slowly without having to make a formal offering. He can command the share prices movement at his own advantage in both companies.

Kahheong. It's very likely Rozali taking this opportunity to accumulate more shares at low price since the weak sentiments sides clearly unfavorable to Puncak. Bad QR results, possible acquiring Triplc at high price, Brexit.... It's could be an opportunity to acquire more shares if you intend to eat up a large quantity of shares.

Ks55. Good points. Britain would on its direction to have a lesser political and economy influence in the world. Marching to Tier 2 country unless the parliament members stand bold for refusing to accept referendum results. Admit that referendum is a joke and no legal binding.

Personal bias is another obstacle to cause us forgoing the opportunity to make money even though the big trend popping up in our eyes. Some of us are strongly believed that some industries won't do well base on our knowledge and experience in longer term. We don't dare to grab the opportunity and refuse to believe the facts presented to us. I am one of them. That's why I don't make a single cent in AirAsia. Haha. M still learning.

Investors are worrying what price to be paid for acquiring Triplc. It could be part of Rozali's tactic to bring down the share price of Puncak. I will wait until the signal (Triplc) clearer before jump on Puncak.

If you check back the history 1997 and 2008, you would know who is the main culprit to bring down our KLCI. FF is now a tiger with no teeth. Haha.

It's only foreign funds able to bring headache to KLCI by triggering massive selling pressure. FF don't have much shares to sell now. They have disposed most of their stakes in last 24 months. We have local funds and EPF ,kampung champion, to support index . Relax!

Back to 4.11 again. That's how uncle Koon taking advantage of low prices unless Tguan fails meet his stock selection criteria.

Later, you would know how OTB and Kyy take advantage of the low prices.

Don't be so irritating and spoil the mood la. Here's Tguan forum. We are enjoying the rally.

Don't play play. David will show you his power later.

Better for Tguan to follow the broad market trend now to consolidate further before making a U turn. SCGM is expected to drop more.

Chong. Agreed. An illiquid counter some more PER is above 20x. It seems not cheap and not many are willing to join the bandwagon. It's still worth it cause supported with the expansion factory and stable consumer business.

Worry of the spillover effect that SCGM is crashing. Temporary setback and uptrend remains intact.

Share price is grossly over hyped with more than PER 20x in its valuation.

Comcorp held the AGM and annouced the QR on the same day last year. This year is a bit different....errrrrrr

Weakness in customer orders.....better be conservative now.

SCGM has posted much lower profit today. Bottom line was dented and traded at PER 23X. Tguan is only traded at PER 10.5X. Expect more funds will be migrated to Tguan tomorrow.

Top up more and go for long term to enjoy its business growth potential.

Let it fly with Boeing. Autopilot.