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

FPI declared dividends 23 sen with current (attractive) share price 3.07 yields 7.5%.

HLIB declared a surprised dividends at 50sen giving a total 70sen div for FY2023. The shares shot up by RM1.00 to RM10.30 now.

FPI is still undiscovered gem.

Disclosure: I own both Uchi & FPI amongst my portfolio and may buy more in next 72 hours.

See the 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.

REPOSTED

Malaysia ringgit is at 26 year weakness level against US$. While Malaysia economy grew 3.7% in 2024 vs Singapore at 1.1%, there is a silver lining.

Makes our export oriented machine economy more competitive. Semiconductors sector will benefit tremendously . Not to mention our Palm Oil, Oil & Gas, Tourism sectors all stand to gain very well.

Imports are costly but it discourages durable goods like EV cars, Overseas holidays and luxury goods. However, our imports primarily consists of Machineries needed to produce goods for exports like Semiconductor are one off painful purchases.

Weak ringgit are good for exporters like Inari, Uchitech (99% exports), MPI.

Be greedy when others are fearful. (Warren Buffett)

NOte: currencies cannot fall forever.

Source: Nikkei Asia, 2023, Malaysian ringgit wobbles in face of political uncertainty, China woes, visited site on 22 Feb 2024.

REPOSTED

Malaysia ringgit is at 26 year weakness level against US$. While Malaysia economy grew 3.7% in 2024 vs Singapore at 1.1%, there is a silver lining.

Makes our export oriented machine economy more competitive. Semiconductors sector will benefit tremendously . Not to mention our Palm Oil, Oil & Gas, Tourism sectors all stand to gain very well.

Imports are costly but it discourages durable goods like EV cars, Overseas holidays and luxury goods. However, our imports primarily consists of Machineries needed to produce goods for exports like Semiconductor are one off painful purchases.

Weak ringgit are good for exporters like Inari, Uchitech (99% exports), MPI.

Be greedy when others are fearful. (Warren Buffett)

NOte: currencies cannot fall forever.

Source: Nikkei Asia, 2023, Malaysian ringgit wobbles in face of political uncertainty, China woes, visited site on 22 Feb 2024.

Malaysia ringgit is at 26 year weakness level against US$. While Malaysia economy grew 3.7% in 2024 vs Singapore at 1.1%, there is a silver lining.

Makes our export oriented machine economy more competitive. Semiconductors sector will benefit tremendously . Not to mention our Palm Oil, Oil & Gas, Tourism sectors all stand to gain very well.

Imports are costly but it discourages durable goods like EV cars, Overseas holidays and luxury goods. However, our imports primarily consists of Machineries needed to produce goods for exports like Semiconductor are one off painful purchases.

Weak ringgit are good for exporters like Inari, Uchitech (99% exports), MPI.

Be greedy when others are fearful. (Warren Buffett)

NOte: currencies cannot fall forever.

Source: Nikkei Asia, 2023, Malaysian ringgit wobbles in face of political uncertainty, China woes, visited site on 22 Feb 2024.

REPOSTED

MSIA (Malaysia Semiconductor Industry Association’s ) president Datuk Seri Wong Siew Hai said the global semiconductor sales dipped 8.2 per cent to US$527 billion in 2023, but the Malaysian market was able to retain its strength throughout the year.

The evidence can be seen in last year’s electrical and electronics (E&E) sector, where exports decreased by only 3.0 per cent to RM575.45 billion after 2022’s record year of 30 per cent growth to RM593 billion.

Opinion:
1] AI and IOT continues to grow while traditional sectors like staple food, transportation continue to flatten out.
2] Electronics gadgets esp Smartphones have become the must have tool.
3] Malaysia semiconductor poised to gain from BOTH USA investment (eg Intel), Europe-Germany.
4] with trade war, more Chinese semiconductors are collaborating with Malaysian players with China + 1 policy

Tailwind for Inari and thus Insas and others like MPI.

Disclosure: Happily owns Insas and Insas WC for its wonderful businesses at Very Attractive prices

Source: The Malay Mail, 2024, Malaysia’s semiconductor sector seen to pick up steam in second half, Article visited on : 19 Feb 2024

MSIA (Malaysia Semiconductor Industry Association’s ) president Datuk Seri Wong Siew Hai said the global semiconductor sales dipped 8.2 per cent to US$527 billion in 2023, but the Malaysian market was able to retain its strength throughout the year.

The evidence can be seen in last year’s electrical and electronics (E&E) sector, where exports decreased by only 3.0 per cent to RM575.45 billion after 2022’s record year of 30 per cent growth to RM593 billion.

Opinion:
1] AI and IOT continues to grow while traditional sectors like staple food, transportation continue to flatten out.
2] Electronics gadgets esp Smartphones have become the must have tool.
3] Malaysia semiconductor poised to gain from BOTH USA investment (eg Intel), Europe-Germany.
4] with trade war, more Chinese semiconductors are collaborating with Malaysian players with China + 1 policy

Tailwind for Inari and thus Insas and others like MPI.

Disclosure: Happily owns Insas and Insas WC for its wonderful businesses at Very Attractive prices

Source: The Malay Mail, 2024, Malaysia’s semiconductor sector seen to pick up steam in second half, Article visited on : 19 Feb 2024

Prudence requires patience. Cash is king.

Case: Berkshire , YTL , FPI have been sitting on unusual amount cash just like Insas who has RM1 BILLION (spells w a B)

Berkshire still has US$130 billion in treasury bills or almost cash until they can find good elephant to hunt

Clarification

There are bad loans in Insas lending business but it’s within industry’s norm. No unusual write offs.

Insas loan division has a 100% collateral backed loans similar to ELK DESA Berhad. Thus far I’ve yet to see bad loans indicative of prudent management

Impressive Huawei beating Apple.

Insas via Inari is supplying to Huawei amongst its other major clients.

Source : South China Morning Post Publishers Ltd (2024), Huawei's HarmonyOS to beat Apple's iOS as the No. 2 smartphone operating system in China in 2024: TechInsights report, South China Morning Post, Article dated: January 3, 2024

Why value Berskhire owning businesses at 1.4 x Price to Book value when Insas businesses are 0.34 times?

Both are conglomerates.

Even if you discount Insas being a Malaysian Giant holding world class businesses, the Price to Book should be at 1.2x comparable to Gamuda or Maybank, Insas price is RM4.32/share.

If marked to market the valuation, RM6.12 per share is not impossible.

We have market anomaly which ordinary Ahmads, Ah Kau and Ramasamies can take advantage before Institution funds especially Public Mutual fund wakes up to this GOLDEN opportunity.

Source : Keith Speights (2023), The Motley Fool, Nearly 70% of Warren Buffett's $326 Billion Portfolio Is Invested in These 9 Megacap Stocks – Article dated : Oct 30, 2023

Disclosure: I continue to own Insas and Insas WC Amongst other listed companies and may continue to accumulate after 2024 CNY Holidays within 72 hours.

INSAS
INSAS share = RM1.22 or market capitalisation RM846 MILLION
Book Value/share = RM3.56 or at RM2,467 MILLION
Price to Book value = 0.34 Times
If you value Top 7 LISTED companies namely Inari, Ho Hup, M&A and marked to market , the shares valuation is RM2,070 million which is already 244% over market capitalisation.

This Top 3 Companies Inari, M&A, Ho Hup are valued AT COSTS, not at Current Share Market prices in Insas Balance Sheet.

Meaning? Insas bought Inari Amertron + M&A at at COSTS RM$576MILLION in 2010’s and now is worth in Stock exchange at RM2,070million is still valued at COSTS in Balance Sheet.

BERKSHIRE
Berskhire A share = US$509,090 or market capitalisation US$864 BILLION
Book Value/share = US$363,303
Price to Book value = 1.40 Times
If you value Top 7 LISTED companies namely Apple, Bank of America, Chevron, Coke, Visa, Master Card, Amazon and marked to market , the shares valuation is US$228 BILLION which is already accounts for 70% of US$326 BILLION equity value

This Top 7 Companies are valued AT COSTS, not at Current Share Market prices in Berskshire Balance Sheet.

Meaning? Berskshire bought Apple at at COSTS US$36BILLION in 2015-18 and now is worth in Stock exchange at US$170BILLION, is still valued at COSTS in Balance Sheet.

I personally visited Megan Media factory in Sunway light industrial factory and was shocked to see little or no activity Ie no machines were running.

I was glad to have sold out my shares even before that when I know that China rivals were selling CD ROM at 90% less in price with comparable quality.

Insas is the 2nd largest owner of Inari after KWSP/EPF works so well with Huawei - The Apple of China. That is combining technology and value for money cost based - winning recipe

Insas is sitting on solid cash.

Audited reports indicate high value holdings Inari , M&A, Ho Hup and the lists of unlisted companies.

Deep value at 66% discount to NTA BOOK VALUE.

If compared to marked to market value, the margin of safety is deeper.

Inpressive Messrs stockraider analysis.

Do you know that in 60 years ALL USA airlines total profits less their losses and planes replacements yield a net return of ZERO!

Even though AsiaX may have load passengers 86% but the cost replacement will wipe out the cumulative profits. Assuming no geopolitical economic risks as travel is optional travel.

on worries about ESOS with employees disposing at <RM3.33, let me share that the former CEO Nazir Razak of CIMB did the same too in keep selling CIMB at RM4-RM5.50 per share until the shares shot up to RM10+. He knows the business inside out and yet.

So don’t worry, if solid fundamentals, EPF and others will continue ploughing in.

UCHI is rare gem. Consistent 100% profits from 2002 to now.

Expect bumper dividends for annual yield at over 30 sen with yield 8.2% at RM3.86 per share. This is >100% what you get from FDeposit. Crazy opportunity.

I posted earlier in FPI forum that Amway is expected to yield 7.2% at RM5.25 per share and it promptly shot up to RM6.90 which is 31% and if you locked in price at RM5.25, yields are 7.2% giving total returns of almost 40% in less than 3 months.

Disclosure: I own Insas , Insas WC, UCHI, FPI and others but didn’t; manage to catch Amway. it is the ONE THAT GOT AWAY (Katy Perry)

High likelihood of >7% dividends. Even if not, why worry, the Balance sheet is rock solid with cash RM362million. I am amazed by their Speakers technology saleability as they have large orders. I read somewhere they are also OEM for Sony which is a surprised as Sony is known to guard their in-house production. I may not be right here.

But you cannot go wrong with such technology and Financial solid ground. ROCK solid.

ON purchase price, I wish to keep it confidential.

But our purpose is same, prosper thy neighbour and let all of us laugh all the way to the bank.

Messrs OTB appears to have strong investment track record. We welcome such experts in the forum.

Ignoring noise, anyone can see your track record when they compare your dated recommendations with the actual share price movements.

This speaks volumes as actions are louder than words.

Well done, Messrs OTB.

We are likely to go into normalised period of high interests rates ranging 4% - 5.75% which means it will discourage spendings and strains on those with high loans commitments.

However, Insas is cash rich which means no interests payables pressure nor affected by Recession characterised by overall drop in demand.

With services based business such as listing IPOs via M&A Berhad or cash rich Inari with RM1.8billion to export on back of undervalued RM currency, this protects Insas from high interest rates environment.

1974, there was a scandal involving AMEX with subsidiary that traded on oil futures but turns out to be fake.

AMEX shares promptly fell but Warren Buffett took opportunity to collect 200,000,000 shares.

Today, the stocks went up 16x.

Being greedy when others are fearful.

Insas - looks like a lot of people love to hate it.

I hope to have more such criticism.

Caveat emptor

Insas on Book value is worth RM3.56 at Qtr 09/23 which is >200% higher than current share price.

If you value Insas investment holdings marked to market to reflect a realistic price, it is worth much higher over RM6.00.

Both intrinsic and accounting value are highly attractive.

Buy and assume the market is closed for 5 years.

FPI is investing in IOT for speakers, the next generation of craze.

Disclosure: I own FPI, INsas & INsas WC amongst other portfolio. May continue to buy in the next 72 trading hours.

FPI is financially strong with cash reserves RM362mil for a market cap of RM781mil

Strong orders coming from the ACER Group Taiwan and USA orders.

Waiting for Qtr 12/23 Report.

Even if it is tepid like 4mil profits, giving a year’s EPS of 35sen, the company can still pay 21 sen dividend translating to 7.1% at share price RM2.96.

Load up before the market realises it.

Just like Amway, when Div yield is expected to be 7.4% at share price RM5.25, it shot up to RM6.90, 32% rise with dividends 7.4% total 42% gains in less than three months.

Please know there is difference between

Accounting Profits vs Operational profits

If we take Operational profits less extraordinary items FVPL and Prov for Bad Debts, expected profits for 2024 is RM66.8mil. This gives PE R of 12x better value than overall Bursa stocks valuation at 16x

Capital Dynamics CEO Tan Teng Boo runs a closed end fund in Bursa. Before the Pandemic locked down, we were office building-mates haha as his office is 2 floors below mine in China Town Menara OneNation.

Pretty good delivery. Pay particular attention on Minute 3.34 on the <5 mins video.

Gives reasons for why be bullish on Bursa especially one sector.

Source: Capital Dynamics on Youtube, 2024, Why Now is the Right Time to Invest in Malaysia by Tan Teng Boo (2023 Investor Day), visited on 31 Jan 2024

Yes, SSLEE, thank you for pointing out the 100mil disposal of M&A shares.

2024 Will be another good year for Insas.

another business that Insas will gain via M&A is the expected business boom of more listing in stock exchange of Initial Public Offerings (IPO)

Bursa expects to have RM13billion worth new listing for 2024. Already in pipeline is 24 firms approved with expected 48 in total for the year.

M&A is leader in ACE and LEAD Stock exchange board listing. Expect a busy year.

Source: TheEdge, 2024, Bursa Malaysia’s target of 42 IPOs for 2024 is ‘realistic’, 24 already in pipeline, Article Dated: Wed, Jan 31, 2024

unless you sell the shares.

Thus, Insas sold 10milllion Inari shares will be realised profits in coming Quarterly earnings Jan-Mac 2024

For associate company, meaning companies that you have significant control over the Board of Directors decisions via Appointing your directors on Board, you aren’t allowed to MARK TO MARKET the associate share price

SSLee said it well.

Accountants ignore the stock market prices.

That is why when Berkshire owns 919million or 5.9% Apples shares which means US$3,660 million (5.9% x equities US$62,000 million)reflected in Berkshire’s Balance Sheet.

But the shares value on stock exchange is US$190 valuing it at current share price US$174,000 million.

Understand what you own. You can sleep well at night.

if you have Accountant friends , ask them :

A owns 20% of B which Total Assets of B is RM100

This means A owns RM20 worth of B.

What if B share price goes up to RM300?

Will the profits of RM200 be reflected in A’s Balance Sheet?

Answer : Yes. A will see profits in its Balance sheet even though it haven’t sell B yet.

OOps... your Accountant friend is ILLITERATE. Ask him to refer to Accounting principles IAS28.

Answer: No.

he is right

Assumptions:

Insas Balance sheet of Associates in the Non Current asset comprise of ONLY Inari Ametron.

I don’t have breakdown information of other Associates company that Insas controls. Likely there are. Even then, the UNREALISED PROFITS are humungous.

As I want all of us to profit handsomely from Insas, let me try to put it in simple terms.

Your friend Freddie bought a house in Damansara Utama for RM280,000 in 1980.

Today, houses in Damansara Utama now are transacted at RM1,000,000.

Freddie wants to sell his house and offers you RM280,000 because it is his BOOK VALUE.

Do you want to buy it?

Now we are only talking about INARI and haven’t talk about other associate, subsidiaries and investments yet.

ANOTHER PERSPECTIVE

Insas OWNS Inari Amertron and the Carrying Book Value is at RM565million even though the share price value it at RM1,671million with UNREALISE GAINS RM1,106 million

Insas Balance sheet is UNDERVALUED as accountants don’t care about share market prices.

Thus, for Insas to say it has BV of RM2,467million but has HIDDEN GEMS with UNREALISED PROFITS ie haven’t sell Inari and others.

Smart for Insas to sell and realised some profits while looking for other opportunities. Still a lot to go for Inari because Semiconductors are growing at >20% per annum to 2030 (see my earlier posting)

The whole of Insas will be worth
30 Sept 2023 Net Assets RM2,467.08 MILLION

Add Profits on disposal Inari RM1,106million

Total RM3,573.08MILLION

Or NTA per share = RM5.15 per share.


Now, can you understand why experts believe that Insas is worth at least RM6/shares?

A lot of hidden gems in Insas Balance sheet with UNREALISED profits.

This means you

Debit Bank/ Cash RM1,671million
Credit Associate investment RM 565 million
Credit Profits on sale of asset RM1,106. million

Insas Profits will shoot past RM1BILLION for REALISING profits on Inari holdings.

What if Insas wants to sell all 528.5mil shares of associate Inari which now BV is at RM565million? Sell the shares in Bursa.

There are many buyers offering to buy Inari at RM3.18/share as at 31 Jan. 2024

The sale consideration is RM3.18 x 528.5mil shares = RM1,671million of cash receipts.

Insas will receive cash RM1,671million in its Balance Sheet.

Why Equity Prices (EQ) is different from Book value (BV)?

EQ means the current trading share prices in Bursa which fluctuate day to day

BV means the carrying value of ACTUAL valuation of Insas Associate company Inari comprising of Plant, Properties and Machineries.

Think of BV as the your house you purchased 10 years ago and EQ is the price you can sell today.

On 30 Sept 2023, Insas book value of Associate company reflected in Balance Sheet with approx 538.5mil shares is at RM576million.

on 24 Jan, 2024, Insas Sold 10mil shares to bring reduced balance at 528.5mil shares which means that the BV is RM565million.

Accounting principles doesn’t care if the EQ value as they follow the valuation based on BV.

I sincerely wish you have Good Profitable year , Messrs LammPah. Keep the good questions coming in. I always believed, no such thing as st&p)d questions because I asked a lot in class. Gambateh 😁

LammPah - made valid point. But Corporate Governance is key to expand company by managing investors confidence.

LammPah

Skin in the game (Naseem Taleb) meaning that will the managers gain and lose together with shareholders?

DS Thong owns on paper almost 33% of Insas which means at RM1.20, his worth is RM239million.

Will he not benefit the most when the share price goes to RM12.00 which means his Insas is now worth RM2,390 million?

Will you not want your share price to go up as you BENEFIT the most? SKin in the Game!

That is why YTL P , Sunway, IOI Group founders are happily adding value - profits, wealth to the listed businesses as they benefit the most.

DS Thong is suppose to be MULTI BILLIONAIRE, just that the market has discover him yet just like days BEFORE they found YTL P, Inari, OSK , Sunway and more

Someone in here will let you know during the Gloves Euphoria, the forum chats are explosive that runs to the thousands per day.
Now our chat here is paltry peanut 100+. The euphoria hasn’t come in yet. If it does, usually shares overshoot to RM60 (Leno, 2024) ? If it does, good and well for all of us.

In my humble opinion, when should we sell ? You can see my earlier posting.

But i learn from Warren Buy and quickly Sell Tesco (UK) for financial irregularities. He says, if you see a corkcroach in the kitchen, you know the other family members are lurking somewhere.