Another interesting Corporate Politics, someone is testing the water to see the exercising Warrants 49,000 even though it is OUT OF MONEY at current price RM1.03.

If Thong is careful, he will have enough Warrants to convert his INSAS WA to secure >50.01% ordinary shares from current 32.9%.

SSLee is expert to calculate THong’s true holdings via his friendly allies or proxies.

WHO IS SELLING?

Likelihood are syndicates who are selling to push down prices and force weak (Note 1) hands to let go where they can accumulate at bottom and then pump up the price to dump later at higher prices.

Note 1: WEAK hands include
[1] emotionally investors who thinks the end of world coming
[2] margin calls
[3] paronoid investors who thinks the price will fall to zero.

of course I want to see Insas to go up with NTA value at RM2.56 at BOOK Value but if it marked to market that is easily above RM4.28 per share.

Personally, however, I prefer to see Insas comes down so that I can chance to buy more.

I know it will go up with Inflation, AI, America-China Semiconductor war, record FDI to Malaysia.

I don’t get euphoric if it goes up and neither do I get depressed if it comes down.

Buy and Hold Wonderful Businesses and attractive prices.

Let’s hope Insas breaks RM1.00 or better at 90 sen. Sell your IPHONE and use the fund to buy a RM550 Infinix smartphone and the balance to Insas.

Disclosure: I own both Insas and Insas WC and continues to accumulate at attractive prices

Bought more this week.

Next week , I will join You - SSLee.

Good opportunity pick on the cheap.

Buying A Dollar for 30sen

Investing successfully is a lonely road.

If someone follows the crowd, then the performance is average with them.

You have to be right when you invest and wait ALONE. - Howard Marks,CEO Oakstree, Top Tier Fund manager, >50 years.

FPI with war cash reserves RM450million can declare dividends or better shares buy backs.

This year, FPI has extraordinaries gains.

Cap it at RM50million a year, it is sustainable foreseeable future

FPI now guarantees (word I seldom use) a 7.2% div yield if you invest BEFORE 8 Apr. 2024.

Told my nephew last weekend. the price merely inched up 3 sen to 3.14

Anyway, this post belong to FPI chat room.

There are other attractive Dividends if you want them.

Disclosure: Owns BOTH INsas and INsas WC, FPI amongst others.

Caveat Emptor

you may want to see my other posts

There is FPI which now guarantees (word I seldom use) a 7.2% div yield if you invest BEFORE 8 Apr. 2024.

Told my nephew last weekend. the price merely inched up 3 sen to 3.14

Anyway, this post belong to FPI chat room.

There are other attractive Dividends if you want them.

Disclosure: Owns BOTH INsas and INsas WC, FPI amongst others.

Caveat Emptor

On Jayatiasa, with PE- Ratio at 7.2 is the lowest among the Plantation stocks.

vs.

TAANN at 10x
Genting Plantation at 27x

Makes sense on your move

Everyone with business mind - appreciate SSLEE sharing.

To win-win info sharing.

I am wondering what are your arguments in favour for

Jayatiasa?

I do read this forum regularly but ignore noises. We are business people exchanging ideas to generate profits.

My wish is ALL OF US make profits and use it for our needs and family

Messrs SS Lee

Amazing you are prepared for the risk of NASDAQ meltdown. If USA crashed by 30%, so will the rest of the world.

With Dry powder, you are in position to scoop up huge bargains esp if KLSE falls below 1,000 KLCI

You are truly master in investing.

Respect.
+++++++++++++++++++++++++++++
Reposted:
Mike-tikus,
Don't envy ya, I am holding 40% cash and 60% equity in my trading account.

The big four in my portfolio now are:
Jayatiasa
Insas
OSK
Pantech

Investment is booming. The Penang state attracted RM60.1bn ($12.8bn) in foreign direct investment in 2023, more than the total it received from 2013 to 2020 combined.

“It’s a rush. It’s not only Chinese companies [setting up in Penang]. It’s Korean, it’s Japanese, and it is western,” says Marcel Wismer, Kemikon’s chief executive. “And all of this is related to the tech war between the US and China.”

2nd Level Thinking : while the rising tide will raise all boats, choose semiconductors players that are established, cash chest to invest and supply to newcomers. SOme firms like Inari, MPI and GLobetronics are set to disproportionally benefit from the investment.

Source Malaysia: Invest Penang, 2024, The Surprise Winner from US-China Chip Wars. Article Date: Mar 11, 2024

Investment is booming. The Penang state attracted RM60.1bn ($12.8bn) in foreign direct investment in 2023, more than the total it received from 2013 to 2020 combined.

“It’s a rush. It’s not only Chinese companies [setting up in Penang]. It’s Korean, it’s Japanese, and it is western,” says Marcel Wismer, Kemikon’s chief executive. “And all of this is related to the tech war between the US and China.”

2nd Level Thinking : while the rising tide will raise all boats, choose semiconductors players that are established, cash chest to invest and supply to newcomers. SOme firms like Inari, MPI and GLobetronics are set to disproportionally benefit from the investment.

Source Malaysia: Invest Penang, 2024, The Surprise Winner from US-China Chip Wars. Article Date:
Mar 11, 2024

Is it true that a full tank of Petron fuel gives more mileage compared to Petronas?

Petron not only have better mileage and best cash back if you use Public Bank-Petron card. this matters to us drivers - 98% use gas combustion engine. For Tesla co-horts, this is irrelevant.



Source: R Bala (2024), Focus Malaysia, Is it true that a full tank of Petron fuel gives more mileage compared to Petronas? Visited on : 9 March 2024

06/03/2024

SSLEE - reposted
Last quarter financial result Insas report net gain on disposal of shares in associate companies: RM 9,445 ,000 by selling 5 million inari form Insas Technology to Insas Media Lang Limited

Analysis
On 27 Dec, Inari closed at RM3.00 per share. Sold that day amount 5,000,000 for profit of RM9,445,000 means profit per share is at RM1.89. Costs holding is RM1.11 per share.

Good that we don’t have Cap Gains Tax , (yet?). with 558.6million, unrealised capital gains sit at cool >RM1.11 BILLION (spell with a “B”) with Inari at RM3.10 now.

Thong is astute businessman. Waiting for Bill Tan to advise him if next IPO or Acquisitions like Inari coming up.

Thank you SSLee bro.

A question, How do we know that Insas holding costs is at RM1 and selling Inari at Rm2.90+ per share yields about RM2 profit per share?

I note that Insas takes profits on Inari by selling 10million shares.

I am unsure how much realised profits it will be.

But with 554million Inari shares, selling 50million a year to crystallise profits over 10 years. That is a good run

What about other wonderful businesses? Moats are deep.

Rare opportunity

Important is Insas generating profits consistently which is bulky instead of consistent profits performance.

Profits range from RM50mil to RM200mil a year. That is fine by me.

Cash pile RM1 BILLION (Spelled with a “B”) are waiting for deployment in
= Financing business to the likes of AEON Credit, RCE Cap., ELK DESA
= Participating in M&A’s IPO clients in private placements
= Acquiring private assets
= Acquiring Local Bursa opportunities
= Acquiring overseas opportunities especially Vietnam, China, Indonesia.

I admire Insas Managing directors business acumen

Disclosure: I own Insas and Insas WC, amongst others. will continue accumulate in near future.

Berkshire is priced at 1.40 times over its NTA.
Contrast with
Insas in priced at 0.34 times over its NTA.

Rare opportunity.

Defensive strategy. Thong has A LOT at stake. This is the first time over in Bursa I see Billionaire by assets but not by Market valuation.

Berkshire is priced at 1.4times over its NTA. But USA do have non-GAAP valuation of marking shares it owns in NYSE/NASDAQ to market if the company choose to do so.

What is happening to Semiconductor sector worldwide? NVIDIA’s orders are robust, pushing TSMC’s 3 and 4-nanometer production capacity to near full utilization.

Semiconductors are growing on the tear. Expected 24% growth in 2024.

Inari is attractively priced as it has strong moats with >22% net profit margins.

Source: Trendforce (2024), NVIDIA Reportedly Overwhelms TSMC with 3 and 4-Nanometer Orders, Article dated: 2024-03-04

Disclosure: I own Inari via Insas & Insas WC and may continue to accumulate in next 72 hours of trading

NVIDIA’s orders are robust, pushing TSMC’s 3 and 4-nanometer production capacity to near full utilization.

Semiconductors are growing on the tear. Expected 24% growth in 2024.

Inari is attractively priced as it has strong moats with >22% net profit margins.

Source: Trendforce (2024), NVIDIA Reportedly Overwhelms TSMC with 3 and 4-Nanometer Orders, Article dated: 2024-03-04

Why change to order shares? Good question.

I can think of two scenarios:
A] didn’t realise the slight premium Warrants over Ord shares.

or

B] Testing the water to see how fast the conversion takes. Seeing the Volume traded on Warrants are exceptionally high, this is a takeover bid? Increase ordinary shares to gain control. Propose EGM to vote restructuring exercise.

How is UCHI similar to Berkshire’s subsidiary See’s Candy [SC]?

SC is major favourite sweet candies with major pricing powers. When you receive visitors in USA who brings a bag of SC, you are delighted.

SC couldn’t do much with its retained cash pile. so it pays dividends to Berkshire.

Similarly, UCHI couldn’t find high ROE projects and thus pays out >90% of its retained earnings while it is growing single digit percentage over 9 years.

Cash generating business. you receive cash and use it to invest elsewhere - compounding effect.

Wonderful business.

Every Uncles and Aunties are so glad when they receive a Fixed Deposit certificate with payback 4% aka interests income. It means, you need to wait 25 years to get back your principal to break even ie 4% x 25 years = 100%

What if you are given Certificate with payback 12.7% returns per year? Well, that is the payback period of 8 years for holding Insas Bhd.

Q1 = 09/23 : PAT RM19.8mil
Q2 = 12/23 : PAT RM23.9mil

Simple extraplolation for over FY 24 EXCLUDING the extraordinary gains disposing Inari and M&A last Jan 2024, RM100mil brings PER 7.9x

Isn’t PAT more important than speculating why certain expenses are there? Fin Statements are already audited?

Share Volatility is not risk. Share prices movement are merely based on investors emotions.

Risks are possible events that may happen to the BUSINESS.

Inari: What is the probability of that major clients like Huawei (China) and Apple (USA) cutting back on orders?

M&A: What are the probability that Malaysian SMEs cease raising capital via IPO on ACE Board?


Ho HUp : What are the Probability that residential units remain unsold over 2-5 years?

29.5 total dividends

7.2% yield at 4.10 price

Very similar to Berkshire subsidiary See’s candy

MPI Is The oldest listed semiconductor maker in Bursa and rose 40 Sen to RM29.70.

Top 40 USA chips maker recorded gains in revenues and share prices.

world leaders ASML chip machines maker rose to 15 year high. The beginning of semi conductor stocks.

Inari is just a droplet from the bucket. What if it too received increased major orders from China? USA? Germany?

When the stocks doubled by R 12 billion, imagine what happens to Insas stock? INSAS OWNS almost 15% inari. A cool RM1.5billion added valuation.

Source :
Max Juang (2024) , Q3 Earnings Roundup: Western Digital (NASDAQ:WDC) And The Rest Of The Semiconductors Segment.
Article dated January 23, 2024

IPO market in Malaysia to remain robust in 2024, especially for consumer, tech-related industries, says Deloitte Malaysia

The initial public offering (IPO) market in Malaysia is expected to remain robust in 2024, supported by a strong pipeline of offerings and healthy institutional and retail investors' appetites for companies with good growth propositions, particularly those in the consumer and tech or tech-related industries, according to Deloitte Malaysia.

Verdict: expect robust business year for M&A and thus add value to Insas.

Insas has cash as war chest of RM1 billion which it can easily subscribe via private placements if promising IPO or the Next INARI.

Tail winds for Insas.

Source: By Emir Zainul, 2023, theedgemalaysia.com
Article dated: 16 Nov

I don’t disregard black swan events in 2026 that affects share prices. Be prepared for it protect yourself from the downsides.

Do notice that Insas Key Directors are sitting on Inari , M&A BOD to guard their interests.

If insas doesn’t have moats, why can the BOD significantly influence Inari, M&A BOD decisions?

Similar to Sime Darby moats by owning Toyota franchise n PERODUA brand,

Good point to emphasise risk of warrants out of money.

Agree that cash is not moat

Insas moats is in its collection of businesses.

Insas WB timing is different from insas WC.

WB expired when inari was worth rough estimate RM5billion

WC is expiring at 2026 with inari Ametron already valued at RM12BILLION.

What happened to WB is not necessarily mean same fate as WC simply because insas has added assets and BOOK value worth BILLIONS!!!

Messrs SSLEE and other high dividends seekers ,

Profitable information. I’ve identified two stocks in other forum group that pays high dividends.

One of them is CONFIRMED paying 7.6% yield with ex date April 8. Act quick for low hanging fruits harvest.

Much higher than Insas 2.5 Sen or 2.1%

I’m not an expert in charting.

But isn’t it true that insas has stayed above 90sen for over 3 weeks and stabilise at new base 1.10-1.26?

If someone thinks insas business moats will deteriorate in next two years, then it is better not to buy BOTH INSAS and Warrants.

For holding warrants you stand to gain 300% more than mother shares.

Risks?

Warrants will expire in Jan 2026 and if insas shares remain RM1.18 , then insas warrants is worthless or out of money.

Questions : do you think more investors will come into Bursa, semiconductor, property sales improvement?

If so, with increasing profits of Insas with future PE R at 5x, will it appreciates in next two years?

On Insas Warrants (expiring Jan 2026) valued at slight premium 9.%
over mother share.

Do you think Insas mother shares can grow 9% to RM1.29 in the next two years before Insas Warrent expires?

Why important?

One Insas shares can buy equivalent of three warrants. A gearing of 3x.

For every RM1 movements in insas and this means warrant will gain RM1 each to total of threee warrants. At RM3.

Only sell the business and f you think that the economic conditions have materially declined.

Example Berkshire sold Washington Post newspaper In The internet news age. The economic moats have become shallow.

Disclosure: owns Insas and warrants

IPO market in Malaysia to remain robust in 2024, especially for consumer, tech-related industries, says Deloitte Malaysia

The initial public offering (IPO) market in Malaysia is expected to remain robust in 2024, supported by a strong pipeline of offerings and healthy institutional and retail investors' appetites for companies with good growth propositions, particularly those in the consumer and tech or tech-related industries, according to Deloitte Malaysia.

Verdict: expect robust business year for M&A and thus add value to Insas.

Insas has cash as war chest of RM1 billion which it can easily subscribe via private placements if promising IPO or the Next INARI.

Tail winds for Insas.

Source: By Emir Zainul, 2023, theedgemalaysia.com
Article dated: 16 Nov

UCHITEC can easily sell to other clients but Moulinex , no. 1 consumer foods in Europe, made PARTNERSHIP to have exclusive acces to UCHI unique technology.


Proven past >20 years win win collaboration

Disclosure: happily owns wonderful businesses FPI , UCHI , INSAS + Warrants amongst my portfolio. May continue to buy aforementioned in next 72 hours of trading

FPI market cap 780mil

Exclude idle cash 450m

Net market cap 330mil = the amount you are paying that generates income.

PAT 117mil

PE = 2.8x !!


PAT exclude a be of gains 24mil = 93mil

PE = 3.5x!!


As attractive as UChitec But higher intrinsic value.

UCHITEC can easily sell to other clients but Moulinex , no. 1 consumer foods in Europe, made PARTNERSHIP to have exclusive acces to UCHI unique technology.


Proven past >20 years win win collaboration

Disclosure: happily owns wonderful businesses FPI , UCHI , INSAS + Warrants amongst my portfolio. May continue to buy aforementioned in next 72 hours of trading

FPI market cap 780mil

Exclude idle cash 450m

Net market cap 330mil = the amount you are paying that generates income.

PAT 117mil

PE = 2.8x !!


PAT exclude a be of gains 24mil = 93mil

PE = 3.5x!!


As attractive as UChitec But higher intrinsic value.

share price has gone up to all time high at RM4.10 region from RM3.10 last year.

Disclosure: I own wonderful business Uchi amongst other stocks and may buy in the next 72 hours.

Expect another excellent Q4 2023 results as UCHI products have much stronger foothold in EU for coffee chip making machine.

Expect a dividend at 10sen giving a total 27 sen or 6.7% yield at share price RM4.05.

Uchi is like Berkshire’s subsidiary See’s Candy which is a dividend machine and doesn’t need capital reinvestment.

Berkshire acquired See’s Candy for US$25mil in 1972 but now has paid dividends US$1.7billion!! Why? See’s Candy doesn’t need the surplus cash.

Uchi is similar here.

You want excellent and sustainable dividends yield, this is the business.

High competitive moats of each business:

FPI has strong leadership is speakers technology
Uchitec has scientific skills in developing chips for coffee and dominating the high end coffee machine brewer.

FPI is rock solid financial position with net cash increased QtoQ from RM363mil to RM450.6million, almost RM90million cash increase thanks to the strong credit control that customers pay within 90 days.

Margin of safety is very high