Dolphin's BIG EXPANSION! 40 Uncle Don Express outlets within 5 years
- Dolphin International – the defacto listed company for dining restaurant chain Uncle Don - is looking to expand its Uncle Don business via the ready-to-eat convenient concept.
- Just like 7-Eleven, Family Mart, but Dolphin’s new concept will be independent outlets selling only ready meals, offering more choices and a better environment for patrons.
- On 12 July 2021, Dolphin’s wholly-owned unit United Delight Sdn Bhd entered into an agreement with Uncle Don’s Restaurants Sdn Bhd) for a 5- year plus a renewable 5-year exclusive master license to run F&B convenience concept stores under the trademark “UD Express”.
- For this purpose, the group is looking to raise some RM24.17mil via a private placement.
- This will allow the Group to open 18 UD Express outlets in 42 months, and 40 outlets in 5 years.
The major shareholder of Dolphin is Asia Poly Holdings Bhd with a 15.06% stake.
- In other developments, Dolphin also intends to set up a new Uncle Don’s outlet in Batu Pahat. Dolphin already has 4 outlets.
- In addition, United Distribution Sdn Bhd, a wholly-owned subsidiary of Dolphin, was set up to undertake the distribution of Uncle Don’s brand of chili sauce and tomato sauce.
- Thus, United Distribution is now selling the chilli and tomato sauces to ALL of its 30 Uncle Don outlets, besides selected retailers.
- This also means additional source of income for Dolphin.
2021-04-21 09:38 | Report Abuse
Asia Poly boss puts brother as director of Dolphin International
- Asia Poly holds 17.6% stake in Dolphin, de-facto listed company of Uncle Don restaurants.
- Datuk Yeo Boon Leong, major shareholder of Asia Poly, has brought in his brother Yeo Boon Ho as a director of Dolphin on April 15.
- Maybe Datuk Yeo has placed his brother in Dolphin to put the house in order before embarking on bigger plans
- Will there be more acquisitions or new businesses in the months to come?
Read more here:
2021-04-13 08:28 | Report Abuse
PCCS enters the lucrative used car financing business
- PCCS is diversifying into higher-margin businesses. The venture into used car financing was announced yesterday and this follows the Group’s plan to penetrate into the Asia-Pacific medical device market, which was announced in Dec 2020.
- On April 12, it entered into a JV with Justin See Kok Wah, a veteran in the used car selling biz.
- PCCS will hold a 80% stake in the new JV and will invest RM4mil.
- The Group expects positive contribution from the business within a year.
- Used car financing biz is very lucrative, take ELK-Desa Resources Bhd for an example.
- The company’s hire purchase business for small value used cars has been doing well.
- ELK-Desa has delivered double-digit profit margin in the past 3 years.
Read more here:
2021-03-09 11:29 | Report Abuse
Worst is over for S&F Capital after 7 years of losses. Led by new management & renewed business focus
- Property developer S&F Capital turned around in Q2 ended Dec 31, 2020, following 7 years of losses.
- The company is now back on track and is much leaner after restructuring and kitchen sinking exercise last year.
- Strong net cash position, with cash balance of over RM15mil against total borrowings of just RM37,000
- Well-positioned for M&A, increased property and construction projects, ramp up land banking process
- 79% of the RM16.5mil raised from rights issue completed in Dec 2020 would be used to buy lands and fund new projects
- Turnaround strategies began in 2H of 2019, after current MD Kor Beng emerged as controlling shareholder
- New experienced management took over, S&F ventured into construction biz in 2019.
- As of June 2020, S & F Capital was awarded with construction contracts worth RM40.7mil in the area of Semenyih and Shah Alam.
- The contracts are received from S & F Construction Sdn Bhd, which is owned by the Kor family.
Read more here:
2021-02-19 10:34 | Report Abuse
If you missed out on Asia Poly Holdings Bhd, Dolphin is another proxy in the market.
Asia Poly owns a 17.61% stake in Dolphin.
The major shareholders of both companies are THE SAME.
Also, Dolphin is Uncle Don.
Yup, that casual dining restaurant chain where you can Dine like a Don . . .
Read more here:
2021-01-19 09:13 | Report Abuse
RHONEMA - New milk company in town riding on huge demand
- On July 1, 2020, Rhone Ma completed the acquisition of a 49% stake in in One Lazuli Sdn Bhd (OLSB), Nor Lazuli Nutrition Sdn Bhd (NLN) and Nor Livestock Farm Sdn Bhd respectively.
- Going forward, the new businesses would deliver 25% or more of the net profits of the group.
- OLSB is principally involved in the wholesale and distribution of pharmaceutical and veterinary products including animal feed. Its products largely cater to the ruminant segment.
- NLN is principally involved in the manufacturing, wholesale and distribution of livestock feed and other related products. Its animal feed products are mainly for the consumption by ruminants.
- NLF is principally involved in the business of livestock. With the acquisition of NLF, Rhonema is able to gain immediate entry into the dairy segment. NLF’s dairy farm currently produces A2 cow’s milk.
- The coming fourth quarter earnings should reflect some of the contribution from the milk business.
- Meanwhile, FY21 will likely see the full inclusion of the new businesses.
- If we were to follow the profit guarantee figures (and those were based before it acquired its second batch of cows), there should be an addition of RM1mil to its bottom line at the very minimum.
- Meanwhile, Rhone Ma’s group managing director Dr Lim Ban Keong has been consistently buying Rhone Ma shares throughout this year.
- His last date of buying was up to Dec 10, 2020, where he has now accumulated a stake of 46.65%.
- On Nov 25, Rhone Ma told Bursa that it was proposing the issuance of up to 80.34mil free warrants. The warrants are on the basis of two warrants for every five existing Rhone Ma shares held by entitled shareholders on the entitled date.
- These warrants will be for free. This is a bonus issue, and not a rights issue.
- In Rhone Ma’s circular to shareholders on Dec 31, 2020, for illustrative purposes only, the exercise price is assumed at 70 sen per warrant.
2020-11-30 08:17 | Report Abuse
Paramount - Riding High on Property Sale Boom
Property sales in 3Q20 surged by 39% y-o-y and 248% q-o-q to RM216.5mil.
Property division’s pre-tax profits more than doubled to RM36.8mil from just RM18.2mil in the previous corresponding quarter.
Strong sales performance in 3Q20 is expected to continue in 4Q
Excluding the earnings contribution of the discontinued education business, Paramount’s overall net profit for 3Q20 grew by a substantial 2,265% y-o-y to RM26.09mil.
Backed by its unbilled sales of RM1.03bil
Also supported by its 443 acres of undeveloped landbank
Paramount’s Co-labs Coworking segment would also benefit from the rising demand for flexible workplace
In 9M20, revenue from Co-labs segment rose 42% y-o-y
Paramount has reduced inventories
Borrowings declined while cash and bank balances increased
As a result, Paramount’s net debt to equity ratio has declined to 0.3 times
Paramount has a dividend yield of 7.93%, the fifth highest among listed property players
ROE is 36.79%, the highest in industry as of Nov 27
Read more here:
2020-11-24 08:12 | Report Abuse
DANCOMECH - Wows the market with BEST EVER results in Q3
The Company posted record-high quarterly revenue and net profit in Q3 ended Sept 30, despite CMCO and economic slowdown.
Revenue jumped 121% to RM36.71mil, while net profit jumped 61.38% to RM5.65mil.
The strong results were helped by Dancomech's 70%-owned subsidiary MTL Engineering, which was acquired in August.
With the 70% stake in MTL, Dancomech should be able to recognize about RM3mil to RM4mil in net earnings per year.
Based on this new acquisition, Dancomech could deliver some RM18mil in earnings next year.
At that earnings, Dancomech is only trading at a PE of 10.5 times at Monday's closing price of 61.5 sen.
That's pretty undervalued considering that Dancomech is a net cash company with cash of RM32.85mil as of Sep 30, 2020.
At 15x PE, it would trade at 88.5sen. (41.6% upside)
At 20x PE, it would trade at RM1.18. (88.8% upside)
Dancomech also has a 30% dividend payout ratio policy and pays dividends twice a year.
This means the next dividend should be coming in the NEXT QUARTER.
Read more here:
2020-11-13 11:04 | Report Abuse
PARAMOUNT - The "silent" performer who's about to surpass 2019 results despite pandemic
- Don't be surprised if Paramount records one of its best quarters in a long time, given its sales in the third quarter of this year.
- Stellar sales performance happened after MCO was lifted.
- Bookings: RM270mil (June), RM380mil (July). Sales were across the board of Paramount's eight property projects.
- Paramount MD Jeffry Chew said the Company hasn’t seen such numbers in the last 3-4 years
- "By August, we ran out of good products to sell, and so sales came down a little bit," he told BFM.
- Chew also said Paramount may be more aggressive over the next 3-4 years, where it acquires a further RM300mil to RM400mil worth of landbank.
- Meanwhile, Paramount has also ventured overseas with first foray in Bangkok, Thailand. Paramount is aiming for the overseas market to contribute 10% over the next three years.
- At its share price of 73 sen, the stock is down some 40% on a YTD basis, and is at one of its lowest levels in the last five years.
- PE ratio of 4 times!
- Dividend yield of 9.09%. Average payout of 40% per year.
- Market cap of RM439.33mil.
- Its warrants, which currently trades at a measly 14 sen, and expires on July 28, 2024, is totally out of the money at an exercise price of RM1.79.
-Now surely management wants its warrants to go back to being in the money before 2024.
Read more here:
2020-11-13 09:34 | Report Abuse
HIBISCUS - New institutional shareholder emerges
- A new institutional shareholder has bought nearly 4% stake in Hibiscus Petroleum Bhd.
- This was done via a direct business transaction on Nov 12.
- Meanwhile, Hibiscus MD Dr Kenneth Gerard Pereira announced that he intends to subscribe for a total of 33.5 million CRPS.
- While some investors had saw the Bursa announcement where Ken was disposing 60 million of Hibiscus shares, but this was simply to make way for the new institutional shareholder.
- At its conversion price of 48 sen, and based on Hibiscus' market price of 51 sen, the CRPS are already 'in the money'.
- The utilisation of the proceeds of the CRPS will be for the acquisition of interests in producing upstream oil and gas assets in the South East Asia region.
Read more here:
2020-11-10 09:21 | Report Abuse
Why we bet on HIBISCUS PETROLEUM as oil makes a comeback in 2021?
- Oil prices set to recover, limited downside but chances of rising is a lot higher.
- Goldman Sachs in October came out with a report predicting US oil prices to rise to US$65 per barrel by late next year, owing to a rebound in gasoline demand and constrained shale supply. The bank further feels that the prospects for fossil fuel price rises are potentially higher under a Biden win.
- While that could be true, what is undeniable is that at US$40, oil is currently at one of its LOWEST LEVELS over the last two decades.
- The low oil price environment offers a good opportunity for companies to acquire oil-related assets as at significantly CHEAPER prices.
- In the last 2 years, major players such as Shell and Chevron have been buying such assets.
- Hibiscus Petroleum Bhd is one such company.
- Hibiscus has ZERO DEBT and is a NET CASH company.
- The company roughly generated profit of RM166mil for its financial year ended June 30, 2020, excluding impairments.
- Its portfolio of assets consists of eight producing fields, five discovered fields and two
- Hibiscus acquired 50% of the Anasuria Cluster in the North Sea in 2015 when oil prices were at US$35. In 2016, it acquired 50% of the North Sabah asset from Shell when oil prices were US$40.
- When it first announced the acquisition of North Sabah, Hibiscus' share price was at the 20 sen level. Oil prices were at the US$35 mark.
- As the deal was completed in March 2018, and with oil prices recovering to the US$80 level, HIbiscus' share price shot up to 90 sen.
- Thus for investors who had bought Hibiscus at 19 sen when the deal was first announced, the share price had gone up some 4 TIMES, by the time the deal was completed.
- Hibiscus is now looking to raise RM2bil in equity to fund a TRANSFORMATIVE ACQUISITION that is bigger than Anasuria and North Sabah combined.
- Assuming Hibiscus is raising debt almost equal to its equity position for its new acquisition, it is very likely that the target company has production at least 4 times of what Hibiscus is doing presently.
So why do we think Hibiscus is a good investment?
1. Hibiscus ALWAYS MOVES when it makes an acquisition.
2. Let’s say it DOESN'T make an acquisition, although extremely unlikely. Hibiscus' current production will still INCREASE by another 15,000 barrels of a 150% by 2022, thanks to its ongoing development field in Anasuria and Marigold.
3. Hibiscus records EBITDA margins of more than 50% as it acquired both its producing fields cheap. The cost per barrel in Anasuria is US$20, while the cost in North Sabah is US$15.
4. At 47 sen, Hibiscus is at one of its lowest levels, despite being fundamentally very solid. The book value of Anasuria as of June 2020 is at US$200mil while North Sabah stands at over US$190mil.
5. This means that just ONE of its producing field alone SUPPORTS its current market cap of RM754.4mil.
Read more here:
2020-11-09 10:58 | Report Abuse
REXIT BHD - An undiscovered net cash tech gem
- Caters to the high-growth insurance and financial services industries
- Developed and currently operates mySalam, which is the Government’s national health protection scheme.
- Has one of the lowest PE ratio (14 times) in the tech industry.
- It is the third highest dividend yield stock in tech industry (3.85%). FY2020 ended June 30 dividend payout ratio was 55.46%.
- Sales revenue grew at a compounded annual growth rate of around 30% for the past 6 years.
- Major shareholders hold over 60% stake in Rexit, CEO holds over 40%. Free float is 25%.
- Sits on a cash pile of RM14.3 million with zero debt
- Serves many clients across Malaysia, Singapore, Thailand and Hong Kong. Among them are Allianz, Zurich Insurance, AmAssurance, Sompo Japan, RHB Bank, Al-Rajhi Bank, Public Mutual and Affin Hwang Capital.
- Has a 5-year contract with Great Eastern Takaful for mySalam portal
- Links JPJ and insurance companies electronically via the Reward Link Gateway System.
- Business is somewhat “recession-proof”. While most businesses faced a sharp decline in financial performance during the second quarter of 2020 due to MCO, Rexit’s net profit surged by 33% y-o-y on the back of a 14% y-o-y increase in revenue.
- In FY2020, despite all the market challenges, Rexit enjoyed a 37% net profit margin, which was an increase from 34.7% in FY2019.
- ROE was solid at 24%.
- Asset-light business with the value of property, plant and equipment only accounting for 10% of its total assets.
Growth intact moving forward
1. Rexit has strong growth potential in the e-government space, having developed and operated the mySalam portal. Its business model and expertise in the IT field can be easily replicated to deliver more online public services as the Government accelerates its IT adoption.
2. Rexit’s e-Cover product offering puts the company on the right track to capturing market opportunities in the booming e-commerce segment. The stronger adoption of e-commerce by businesses as a result of the COVID-19 pandemic is undeniably a boon for Rexit.
3. Most importantly, Rexit is well positioned in the ever-growing insurance and financial services industries. Growing population and the increased awareness for insurance and risk protection will definitely be an organic growth catalyst for Rexit.
4. The company’s R&D operations in China will help it to easily capture growing market opportunities, by enabling it to mobilise resources across the region for any upcoming projects.
5. With zero debt and a significant cash pile as major support, Rexit is also well positioned to undertake mergers and acquisitions for inorganic growth moving forward.
Read more here:
2020-09-03 10:45 | Report Abuse
SCOMNET - New major shareholder emerges after the stock surged 520% in less than 6 months
- An off market transaction of 30.8 million shares of Supercomnet Technologies Bhd (Scomnet) was done at RM1.95 on Tuesday, Sept 1.
- This represents a 4.78% stake in the company.
- The counter closed at RM1.95 on the same day, which means the new shareholder did not buy at a discount.
- It is rather unusual for new investors to buy a major block at market price, unless they really trust the company's growth story.
**Scomnet's Growth Story**
- Scomnet is a leading OEM cable manufacturer specialising in medical devices and automative cables and serves large medical device makers in the United States and Germany as well as carmakers like Proton and Perodua, among others.
- UOB KayHian forecasts Scomnet to deliver RM29.5mil net profit for FY20. This would be a 52% jump from the RM19.6mil it delivered in FY19.
- in 1H20, Scomnet has so far delivered some RM10mil. This means, UOB KayHian is anticipating a doubling of earnings in the last two quarter of this year.
- It is also forecasting a net profit of RM51.6mil for FY21. This means a 74% jump in earnings from FY20.
- Scomnet has also secured a new automotive client, which is French car manufacturer PSA Group. PSA Group is the maker of Peugeot and Citroen.
- UOB KayHian is expecting the PSA Group to contribute an incremental 10% to 20% of group revenue from 2021 onwards.
- On the medical devices front, Scomnet has secured 10 new projects with key clients.
- "Incremental revenue from new products (D’Clot Catheter, Colonoscopy GI and Gastroscopy GI which will be in production in 2H20)," says UOB KayHian.
- Scomnet is in the midst of increasing its capacity by 35% within 3 months to fulfil the medical segment's explosive demand.
- 2 research houses have BUY calls on Scomnet namely UOB Kay Hian and Rakuten Trade.
- UOB Kay Hian has on Sept 2 upgraded the Target Price to RM2.40.
- With crazy growth at hand and a growing pipeline of new products, isn't it a matter of time before Scomnet hits net profit of RM100mil?
At that level of earnings, what would Scomnet's share price be like?
Read more here:
2020-08-17 09:51 | Report Abuse
- Major shareholding changes took place last week
- Saudee's executive chairman Khoo Lay Tatt resigned.
- Enter Fintec Global Bhd as the NEW SHAREHOLDER, with a 21.55% stake in Saudee.
- On Aug 11, Mak Siew Wei was appointed as executive director.
- Mak is also a director in AT Systematization Bhd, Green Ocean Corporation Bhd & Advance Information Marketing Bhd
- Mak's entry into those companies, have seen new business ventures being announced followed by big movements in their share prices.
- The new shareholder's cost of investment would roughly be about 44 sen, if not higher based on Bursa filings.
- Why pay 44 sen for a loss making and debt laden company? Could something interesting be brewing?
- Sources said the new shareholder wants to make Saudee a ZERO-GEARING company.
- Once that is done, then the new shareholders have plans to turn the business around.
- They see potential in the food business, and furthermore, Saudee has already secured a few new export markets.
- With an injection of funds, Saudee's Sungai Petani plant can be ramped up, according to sources.
- Saudee had embarked on a huge kitchen sinking exercise, which has helped to improved its financials.
- With most of the cleanup completed, it will be interesting to see whether Saudee on its own, will be able to turnaround in the coming fourth quarter results.
Read more here:
2020-08-05 10:14 | Report Abuse
DPI HOLDINGS is a hidden gem.
- Trades below 20x PE
- In net cash position (cash of RM18.39mil and fixed deposits of RM39.86mil)
- Founder Peter Chai is the Chairman and MD, indicating that the company is in good hands.
- Currently, the stock trades slightly below the IPO price of 25 sen.
- Unlike most small-cap stocks, DPI pay dividends twice a year.
- Dividend yield of 1.86%.
- About 75% of the company's shares controlled by Peter Chai and family.
Growth MOVING FORWARD
- Anticipated to grow at some 20% per annum based on its factory expansion
- Will see an immediate 30% increase in capacity with the expansion
- Plans for a second factory over the next 1-2 years
- Will be entering the sanitiser business in the next few months
- Aggressively looking for an M&A
- Plans to develop a wider range of aerosol products to capture a bigger market share.
- The company has begun manufacturing and sales for anti-bacterial disinfectant spray.
READ MORE HERE:
2020-07-27 08:54 | Report Abuse
JADI IMAGING Analysis by AnarchySons:
#Jadi Imaging is likely to turnaround in FY21
#Kitchen sinking is over
#Net cash position & supported by 2 factories worth RM50 million
#Backed by Shenzhen listed Ninestar Corp, the global leader in the provision of printing and imaging products
#Jadi has become the first toner manufacturer that Ninestar has participated in an equity stake and preferred supplier of conventional and chemical toners
#Static Control Holdings Ltd (SCC), a wholly-owned subsidiary of Ninestar Corp took up a 9.09% stake in Jadi for 13 sen. SCC will also have a board seat in Jadi.
#Based on the committed buying volume from Ninestar, Jadi will supply SCC a total of 250mt of chemical toners in the first year, starting in April next year, followed by 325mt and 420mt in the following years.
Expected revenue contribution:
#Gross margin is anticipated at some 30%.
#Jadi has on July 9 ventured into the premium stationery segment
#It is partnering with Ningbo Deli, the largest stationery manufacturer in Asia with more than 2,000 products sold in more than 100 countries, 6 continents through 7 facilities
#Jadi has the exclusive rights to sell Deli's Nusign range of premium stationeries across Malaysia, following the partnership
#Jadi's chemical toner production plant is completing in the 2nd half of 2020, which is expected to position the Group with favourable prospects in the toner manufacturing industry globally.
#SCC, the wholly-owned subsidiary of Shenzhen listed Ninestar Corp is looking to increase its stake in the company
#The group is increasing its efforts in its distribution centre in China. The China market contributed 40% in FY19 from 25% in FY18. With the partnership from SCC, this could increase the contribution to above 50% in FY21
#Succession Planning In Place
Stock: [ECOFIRS]: ECOFIRST CONSOLIDATED BHD
2022-01-25 08:39 | Report Abuse
Datuk Michael Chooi Yoey Sun, co-founder of kitchen cabinet and wardrobe systems manufacturer Signature International Bhd, has emerged in EcoFirst with a 5.16% stake.
Within corporate circles, Chooi is known for his sales and marketing prowess particularly in the property and construction sector.
His emergence in EcoFirst follows his acquisition of a 12.878% stake in Scanwolf Bhd last September. Scanwolf is a Perak based company involved in property and plastic extrusion.
Now Chooi appears to have his eyes set on EcoFirst.
Investors are starting to notice undervalued property stocks after years of doldrum. Some of these property companies own huge tracts of land bought at deep bargains.
With the return of the talks about MRT3, EcoFirst could be a beneficiary.
EcoFirst’s land is right next to MRT3. Prime land bought at cheap cost.
EcoFirst is looking to make a comeback, anchored on the good location of its landbanks as well as the affordable prices of its properties.
Read more here: