Hi Mr Tan KW, This is my stock pick for Year 2023
1. PPHB - 20%
2. MBL - 20%
3. HEXCARE - 20%
4. DANCO - 15%
5. TDM - 15%
6. MHB - 10%

PPHB next week should be testing new high

PPHB is a undervalue GEM.
When the timing come, It will shine like a Diamond.
TP 1 = RM0.70
TP 2 = RM0.??
TP 3 = RM1.?

PPHB is still the only few GEMS that I willing to accumulate during this uncertain period.

Tan Sri and his family has received billion of dividend in year 2020 & 2021.
And now he only fork out millions to buy back the company share.
If he willing to set aside a fund of RM1billion for personal share buy back purpose, every day buy RM10mil, continuos for 100 days, I think very soon share price can back to RM2-3 level.

Still accumulating

PPHB is a undervalue GEM.
When the timing come, It will shine like a Diamond.
TP 1 = RM0.70
TP 2 = RM0.??
TP 3 = RM1.??

PPHB is a undervalue GEM.
When the timing come, It will shine like a Diamond.
TP 1 = RM0.??
TP 2 = RM0.??
TP 3 = RM1.??

When interest rate continue to hike, those company with huge borrowing will suffer.
While company with huge cash will be benefit.

High debt company:-
1) Paying high interest, so margin is shrink
2) Customer's purchase power will reduce, so buy lesser product.
3) Some customer start to delay payment, so company will tighten their credit policy.
4) When company tighten credit policy, company sales will drop, and some customer will be left.
5) When company sales drop and profit drop, company sales person commission also drop, so they will jump to competitor company.

High cash company :-
1) When interest hike, FD interest also hike, so company can earn higher Interest Income as they have huge cash pile in bank.
2) With the huge cash pile, they can offer credit term to customer that facing credit problem, so more customer will come to them.
3) While other competitor are tightening their credit, and you remain the same credit, you will become more attractive than other.
4) With huge cash, you can negotiate for lower price for your raw material, you can also increase product price by giving customer credit term.
5) All your competitor salesman will jump to your company as your company didn't tighten the credit, they can achieve higher sales if they work in your company.

PPHB is a undervalue GEM.
When the timing come, It will shine like a Diamond.
TP 1 = RM0.??
TP 2 = RM0.??
TP 3 = RM1.??

Hi All, my journey with Texchem has come to the end, as I have reached my destination.
I believe this train will still continue to go on... wish everyone who still one the train can have a fruitful journey.
Wish everybody huat huat huat!

Selamat Hari Raya to all the Muslim shareholder and Happy Holiday to all the non-Muslim shareholder.
I believe TEXCHEM is my best ever call for 1st half of 2022.
I hope I can have another best call for coming months.

CJ Century start to reveal its true value.

Waiting for next Article, SUBUR is the ULTIMATE WINNER of the CPO Rally!! haha

The powerful of value investing.

1st TP - RM0.90 (Achieved)
2nd TP - RM1.10 (Achieved)
3rd TP - RM1.30 (Achieved)
4th TP - RM1.75 (Achieved)
5th TP - RM2.20 (Achieved)
6th TP - RM2.80 (then proposed Bonus Issue or Share Split)

3 weeks ago

As per expected, closed between Rm1.30 - Rm1.40

Today will drop between RM1.30 - RM1.40

daretocutandchange, yup, you spot the hidden point. That is why I am very confidence next 2 quarter result will be above 20sen EPS

Although I don't like Uncle attitude, but I can't deny that Subur is one of the best pick for Plantation counter.

1) The EPS for next 2 quarter will be very good, above 20 sen per quarter (this is based on my own calculation and estimation, if CPO can continue stand at RM4500 and above).

2) Subur's share unit is very little, and there is no much retailer inside (i.e. Compare to TDM, JTIASA, BPLANT..etc). So when someone start to accumulate it, it can go up very fast.

1st TP - RM0.90 (Achieved)
2nd TP - RM1.10 (Achieved)
3rd TP - RM1.30 (Achieved)
4th TP - RM1.75 (Achieved)
5th TP - RM2.20
6th TP - RM2.80 (then proposed Bonus Issue or Share Split)

Although the disposal price of RM115mil seem very unfair compare to the initial cost of investment, but from business view this is the only for the group to move on.

If TDM continue involved in Indonesia and there are so many lawsuit need to face with the Indonesia Government, TDM will never able to move on.

It is better to cut everything, loss also never mind, since the share price have reflected all the losses d.

Now just need to focus to increase Malaysia plantation profit, increase the hospital profit, and separately listed the hospital business.

I am not greedy, just market cap 500mil for hospital, and market cap 500mil for plantation will do.

Prefer old version, simple and straight forward, this new version make life more difficult.

wallstreetrookie, I am here.
Don't worry about my TEXCHEM, I am long term investor, I have strong confidence on Sushi King. Haha

wallstreetrookie, you must be non-malay.
SushiKing is now very popular in Malay market, as more n more malay can accept japanese food d.

Last time I have the same opinion like you, especially for Chicken Rice Shop. I was also wondering why got people want to eat Chicken Rice Shop. Until I saw their revenue n earning, then only I understand why it can last so long in the market.

Dont worry, TDM will catch up.

Forget about the Indonesia land, I believe all provision has been made.
Focus on its Malaysia Plantation and Hospital Business.
Next quarter PAT should not be lower than RM50mil (based on current CPO price)

Above my expectation.

The management has done their best to achieve this fabulous result.

Let the market decide the price.

When TDM result will be release?

A bit worry they will make the huge provision for the Indonesia legal case.

Best of the best.

I would say : SOMETHING IS BREWING IN THIS COUNTER.

Please put it in your watch list.

So proud with BPLANT, been feeding it for few years, finally this son graduate and pay back all my investment together with handsome return.

Back to 2018, BPLANT was counter that always trade at RM1.70 level.

At that time, CPO is how much? RM2800-3000?

Now in Year 2022, CPO is RM5000++, so do you think Bplant will continue stay low at 80 sen?

Now 2022 is the year of inflation, all commodities price will be stay high.

Yup, hold tight tight.

Look at BJFOOD performance, the share price almost limit up after the QR release.

Then you should know how good is the F&B industry in Q4'2021.

Sushi King in Mall is always full with patron.

26 sen is too low for TDM.

By rite TDM should be at the rate of RM0.40-RM0.45.

Just the hospital asset alone is worth around RM500mil

No doubt INSAS is a very undervalue GEMS. But this GEMS is controlled by someone that selfish, they always put dust, put dirt on the GEMS to cover its surface, so that the GEMS cannot be shine, and the value of the GEMS will forever remain low.

Not too worry, at least this company is still management by professional businessman, they will know how to take care of their own business.

When we buy share, we buy those company that really focus on doing business. Although share price sometime can be pressdown by some bad news or syndicate, but as long as the management is properly running the business, there should not be any big problem to buy low and hold for long term.

Can throw long kang d this counter.

If this company properly manage by professional, it wont become like this.

Intel factory in Penang will only benefit SSTEEL and ANNJOO.
It has nothing much related to AYS.

1st TP - RM0.90 (Achieved)
2nd TP - RM1.10 (Achieved)
3rd TP - RM1.30 (Achieved)
4th TP - RM1.75
5th TP - RM2.20
6th TP - RM2.80 (then proposed Bonus Issue or Share Split)

Sushi King business is very good (super good, need to wait for seat).
Chemical business also very good. (No more MCO, can run at 100% capacity)
LifeScience business also very good. (No more MCO)
Myammar fisheries business back to normal. (Political more stable compare to last quarter)
Property is at strategic location. (waiting for revaluation)
Property market value is much much higher than book value.
NTA RM2.00
124mil share only.
Market cap RM174mil.

Last time Chicken Rice Shop sold to Japanese buyer for RM200mil.
Don't you think Sushi King will worth at least RM400mil.
Why Texchem want to bought back the 28% from Yoshinoya？Maybe he already find a buyer, so he must buyback all the share, then only can dispose to new buyer at higher price.

Hextar bought a lot of chemical company at high price.
If Hextar want to acquired Texchem Chemical business (Industry chemical + Life Science), I think minimum it will offer RM300mil.

So, TEXCHEM is worth RM300m + RM400m = RM700m.

RM700mil / 125mil unit of share = RM5.60 per share.

Give it a superb durian runtuh discount of 50%, still worth RM2.80 minimum.

U look at Ancom, it was below 50sen during Dec 2019. Then suddenly it climb to to RM3.50 within 2 years.

Yup, from a investor perspective, I agreed this transaction is lack of transparent.

But, from business perspective, Sushi King business is getting very good recently, especially after the lockdown on June/July/Aug, all the mall / restaurant traffic is surge dramatically.

Back to 7-8 years ago, Japanese food is mostly consumed by chinese (90% customer is chinese).
But nowadays, many malay can accept japanese food, and chinese have gradually move to higher range japanese food restaurant.

Hence, nowadays you can see Sushi King customer majority is Malay. Compare to other japaneses restaurant, Sushi king price is at affordable level, 1 small family (2 parent and 2 kid) go to eat until full the price can be within RM80-100.

You can wait for the quarter result, I believe sure you can see the F&B business segment start to generate nice profit for Q4 2021.

Don't treat it like a purchase, just treat it as a repayment of borrowing.

Treat it like 7 years ago Texchem pledge 28% to Yoshinoya and borrow RM102mil from them, and 7 years later Texchem payback the RM102mil and get back the 28% share.

During this 7 years, you have take the money and expand the business from 89 outlet to 121 outlet.
And due to pandemic, Yoshinoya group personally badly hitted by the crisis, and now they want Texchem to payback the RM102mil, so they return back the share.

Then you will feel comfortable with the deal.

Many people ask me why TEXCHEM proposed to purchase the 28% share at RM102.2 mil, how they arrive at this valuation.

The answer is very simple, this RM102.2mil is the original investment amount that Yoshinoya Group invested for the 28% in 7 years ago.

Back to 2015, Texchem has sold 28% share of Sushi King to Yoshinoya Group at RM102.2mil.
7 years later, Texchem buy back the 28% share at RM102.2mil.

7 years ago, Sushi King have 89 outlet.
7 years later (after pandemic), Sushi King has 121 outlet.

7 years ago, Sushi King is very profitable, can generate RM15-20mil profit per year.
Recent this two years, due to Covid Pandemic, the Sushi King business is very bad, loss a lot of money. However, if assume everything can back to normal, the Sushi King should be able to generate RM25-30mil profit per year.

RM30mil divided 121 outlet, we are talking about RM250,000 per outlet per year, or equivalent to RM20k profit per outlet per month.

Currently Texchem have 70.35% of SushiKing.
If 28% is worth RM102.2mil, then the 70.35% is worth RM256 mil.

Texchem market capital is RM163mil.

Texchem have Chemical business, Food business, Restaurant business, Life Science business.

Just a restaurant segment is worth RM256 mil, the whole group should worth minimum RM500mil.

Without the US and Canada market, no doubt the coming QR profit will be lower, it can be Rm200m, RM100m...etc.

But the cash will not disappear, after paying the tax RM1 bi, its cash balance minimum should still have RM2bil.

The US investment won't utilise the cash so soon.

I estimate profit around 12-15mil

Let put it this way :-

Back to 2019, MPI is earning around RM150mil per annum, and share price is RM10.
At that time, market PE is around 10x only

Now 2021-2022, MPI is earning around RM300mil per annum, and share price is RM40.
At this moment, market PE is around 30x, some other tech stock can even have 40x, 50x, 60x

During this two year, how much capacity MPI has increase?

Although technology demand has increase, but I believe supplier will increase also.

When the profit is good, other country will setup factory to provide the similar services, same like Glove, when the profit is thin, whole world don't want to produce, so Malaysia can take up 60% of world supply. But when profit is good, all country try to setup factory produce themselves, and our market share starting to drop from 60%, 50%, 40%...., until a level where it no longer profitable, then other country will give up the production, then our market share will back to 60% again.

To sustain at this price, it is either MPI can continue to growth from RM300mil to RM600mil or RM900mil, or else PE will start drop from 30x to 25x to 20x to 15x. The drop will be faster if the profit is no longer growing, or when it start to reduce.

By that time, the share price will back to RM15 or RM20 like this.

Above is just my personal thought, I am try to learn from Glove Mistake and see whether it can apply to other sector and to help me to avoid big loss again.

TEXCHEM, 你不能错过的一支严重被低估的黑马.
2022 高估值的科技股将会退潮,资金会开始流入被低估,实实在在做生意的公司.
TEXCHEM无论是盈利, 资产, 生意规模, 管理层, 品牌, 都是不错的, 而且严重被低估.

TEXCHEM
- Market Cap - RM158mil
- NTA - RM260mil (65% upside)
- Enterprise value - RM600mil (280% upside)

Q4'2021 result - Estimated EPS 7sen - 10sen.

Interesting stories, hope you can share more, especially on the deal between MBL and Symphony Life, and the Langkawi Open Road International Circuit project.

Q4'2021 is superb quarter for Texchem.
Especially for it's F&B business Sushi King.