SJH,

1. Where is the margin compression as announced at http://www.bursamalaysia.com/market/listed-companies/company-announcements/5530077?

2. Substitute is in the cost pass-through equation. I encourage to re-read this letter.

3. How plastic materials can substitute corrugated packaging in protecting heavy goods? Styrofoam is known for its harmful effects on the environment.

https://klse.i3investor.com/blogs/ValVe/133994.jsp

The 15% share rewards will be allocated over 5 years. In its circular to shareholders, it was indicated that the company could buyback shares and use them for the share rewards. As the company did not previously seek shareholders' approval wrt shares buyback, the share rewards are unlikely to kick off soon.

To be precise, it is INCREASINGLY HIGHER single digit ROE - likely to cross double digit soon.
To be precise, it is going into hotel biz - to generate economic income from its presently vacant land.
To be precise, we do not know how share rewards will be allocated. Too early to conclude. Based on previous record, the management has consistently been drawing approximately 10% of gross profit to pay themselves.

Pulps (the raw material) are traded in USD

NOBY, I think some of the info, which collected from an in-depth interview with Mr Koay (MD of PPHB), at http://klse.i3investor.com/blogs/ValVe/125585.jsp could be useful to you.

sctan, PPHB is in a commodity business. Hence, efficiency and productivity are primary moats to fend off competition. In the case of PPHB, it has a clear business model creates value to customers by charging less to customers through consistent improved efficiency (year after year). Consistent improvement in efficiency is key. I encourage you to read http://klse.i3investor.com/blogs/ValVe/125585.jsp and https://klse.i3investor.com/blogs/ValVe/118054.jsp. I am keen to learn from you the name of competitor(s) that has a consistent track record like PPHB, especially in passing the Four Filters.

Flintstones, it is our objective to identify companies that pass the Four Filters. Since you recommended Vivocom, I believe that you have studied it and fair share of knowledge and confidence in the company's track record in passing the Four Filters. Since you have the upper hand, I would like to suggest a side bet (I am agreeable to any amount, but minimum RM100,000 cash) with you. You can reach me at tyeong.sheng@gmail.com

Note: Admin, please do not delete my comment. Commentators should held responsible to their comments.

So, how would you value Aeon using a specific method as a case?

Many investors are fairly good at identifying weaknesses and threats to knock down any value. Unfortunately, Morgan House of Collaborative Fund thinks that pessimism is intellectually seductive. Tell someone that everything will be great and they’re likely to either shrug you off or offer a skeptical eye. Optimism demands facts and is ditched at the first sign of trouble. Tell someone they’re in danger and you have their undivided attention.

Intelligent investors have to ask how a co creates value for shareholders. In the case of luxchem, the recent acquisition was expensive in relative to the target's value. Worse, undervalued (new) Luxchem stocks were issued to finance the overvalued acquisition. Who gained most here?

The series is about education of focus investing - understanding a stock that we owned.

Jeremykid, in the case of PPHB
Net Cash (Debt)=AFS Investments + Short Term Funds + Cash & Cash Equivalents - Long-Term Borrowings - Short-Term Borrowings
PPHB has grown Cash by 432% and reduced Borrowings by 20% within the same period.