abcd, I am unable to attend the AGM. Can you please ask what % of the Tembusu loan does the Board thinks will be recovered after legal or any other fees. Why did they provide a 100% impairment? No confident to collect any amount?

Additionally, on page 85 of the annual report they have 3 subsidiaries listed as pre-operating, what business are they getting into and the prospects for this business.

Loss is due to 100% impairment of the loan and receivables from Tembusu amounting to RM28.54. million. Other segments were profitable. If any amount of this is recoverable, than there will be a write back in the future. This was announced on 7th of November and the stock gap down the following day opening at 0.93 from previous day close of 0.985. If gap down on Monday, it will be a good opportunity to collect.

The adjustment and elimination is for consolidation of accounts purpose. In another word, removing (eliminating) inter-group sales/profit in the consolidated accounts. As such, final reporting sales/profit from outside of the group.

TheContrarian, No mention of dividend. Unless I missed it again..... maybe like last quarter, only announced in this quarter on 14th Sept.

jamesooi Retention sum of RM93,750,000 will be received on 30/06/2018

I believe it will be paid on the 3 anniversary which is 30/06/2019.

Director buy...hmmm

Thanks. JamesOoi. Always enjoy reading your analysis. Likewise, feel the share is undervalued but don't see the 0.47 dividend. They will need the funds to buy a new core biz.

Will wait for 1.20 before deciding to collect.

What is management doing to address the supply shortage? Are they going up-stream and buy a logging company to ensure supply and lower cost?

July - no supply of logs. Must have been a horible month for the P&L.
August supply started - but material cost high.
September - cannot book sales as vessel came in late.

Question is: Going forward, what can we expect:
Supply and cost of supply ok or not?
Ringgit becoming stronger?
Return on investment made? Does anyone know what they are investing in?
No supply, have they lost customers or customer go buy some where else?

If you think got hope than buy or average down.

If you think no hope, than cut loss first and maybe buy back lower, like someone said at 1.20.

Doesn't look good. Revenue down, cost up, margins down, operating profit extremely low, profit reported mainly from write-back of previous year over-provision of tax.

The positives is net positive cash flow from operating activities, which is from lower sales resulting in lower receivables. Supply of log issue has been temporarily resolved (unfortunately at higher cost).

Also, big investment in 'Other Investments', hope this is not too risky investments.

Next quarter revenue should show improvement as delay of vessel pushed sales into October.

Private placement at 0.24. Soon will stabalize at that level.

I am still holding and have parked to collect some more. My earlier analysis still stands.

I think the announcement of better earning and interest saving is just a nice way to say, "Company in Cash-Flow crisis". Earnings will be diluted. NTA per share will be diluted. Majority share holder interest will be diluted. So as of now, this is not good news.

The good news will be who is the new major share-holder. Do they have the funds& capabilities to turn around the company? Than there could be a possible pick-up on the share price. Anyone with 'inside' info?

I will only buy when got good confirmed news, like I said in my earlier comment. Only buy when got confirmed news or the indicators showing a strong buy signal. Buy at a bit higher price is also on.

Yup. A testiment that the company cash-flow is in trouble. Unable to finance projects or insufficient funds for working capital. Possibility price drop by 10%!

Dilute everyone shares. Can up?

Good to see action taken to collect back debt owed to them. Not sure what % can be collecyed back.

Biggest problem here is the supply of logs (raw material). Got business and cannot supply also dead. Until this is not solve, this stock won't go up.

Guys, let's stay focus. We are here to share knowledge and hopefully learn something from one another. If you buying/selling shares based on people comment; better don't invest in the stock market. Money is yours and risk is also yours. If you make money, you not going to share; if you lose money, no one going to give you back!


To me, reasons KNM share price is depressed:
1) Business Management Continuity. Major Shareholder forced to sell his shares to pay interest cost. Institutions don't like invest in a business where Big Boss might soon lose control of his business and don't have a strong person running the business or Big Boss lose commitment..
2) Low new-order replenishment. This is due to focusing renewable energy business and due to cash-flow constraint and unable to finance new business/projects.
3) Losses at their Americas Region.

Only buy if you believe in the turn-around strategy of venturing into the renewable energy business. We have to wait for next quarterly report. See the profitability of the Thai ethanol business. Is this enough to cover losses in other areas? How about competition of new players entering this business?

Only buy when got clear buy signal or good concrete information. If buy at slightly higher price also okay.

Now I think got people playing large volume and buying and selling with price difference of RM0.005.

I have a question. Major shareholder (and person running the company) has been forced to sell his shares to pay interest cost. If this goes on for another 17 months, we won't have the major shareholder anymore. In order to increase his shareholding, will the major shareholder take steps to give himself share options and dilute the minority shares? Or will he increase his salary and use the funds to buy back more shares? Both of which is detrimental to minority share-holders. Anyone can share their thoughts....

MasterKevin..... Disposal of shares for settlement of share financing by Aveda Assets Capital Inc.

Yes, based on chart, not time to enter.

Handle broken.....trade with caution.

It is game over if the stock goes to RM0.27. Last few trading session, handle is still in tact. Looking at Friday afternoon session, momentum is looking good. MACD still above signal and RSI at about 50%. If goes above RM0.305, it would indicate a break-out. Next resistance will be RM0.345.

If one would study the candle-stick chart, from 27th Sept to 10th Oct, it formed a perfect cup. Now we are in the handle phase. Wait for the break-out before going in.

http://www.thesundaily.my/news/2017/10/10/knm-awards-rm19-billion-epcc-contract-china-western-power-industrial

Article in The Sun, 2nd Paragraph: "The Thailand Project is already operational and is already contributing to our recurring income".

Additionally, another problem is with the power plant lease investment in Myanmar. Where they are unable to collect the lease payments. Until this is corrected and revenue increases, share price will be depressed.

Once start selling ethanol, than can see steady revenue coming in....suppose to start selling in July, anyone knows if this has started or was there any delay? Last news report was mid-June and have not heard anything since.

I am still long and very positive about DRB-HICOM long term prospects. Based on my calculations, it is still under-valued at current price. My previous comments have explained my analysis and believe it still holds true.

This is a long haul game. End-Nov when they report Sept 30th Quarter results, Proton will still drag the profitability down and DRB will report a loss (maybe an opportunity to collect). Only end-Feb, Dec reporting, when Geely takes 50% of Proton losses, we can see DRB reporting a quarterly profit.

Effendy Tay, Monday up or down, I don't know.....I am not a trader and have a full-time job. I look for under-valued companies, invest and hope my analysis is correct and get my returns over the longer term.

Nibiru, sorry to hear about your losses....hopefully you will be able to cover it back. I like your attitude of not giving up.....and I agree with Smartly.

Effendy Tay, pls read announcements. RM1.1 billion MOF paid yesterday. Geely not paying cash RM471 million. This includes technology/model transfer.

tkp2, thanks for sharing. The value of the land is about the current market capitalization of DRB. If the land is developed, worth more than the the current market capitalization. Add POS, Muamalat and the other subsidiaries, this stock is currently extremely under-valued. To realize the value of the land, have to wait till the entire production facility at Shah Alam is relocated to Tg. Malim.....5 years time-line. I will continue to add more DRB shares.

Election coming.....EPF sell crony buy. After crony loaded up, EPF buy, push price up, crony sell for election. Hahaha

I am also not confident with Boyue, selling about RM100k in China. Proton has not done well in the higher pricing products. I am hoping they will introduce their A segment car, the X1. Which is selling in China between RM25k~40k. Which I am sure the new CEO will realise by himself in a matter of time. This vehicle will give the factory the volume they need to be profitable.

Angelol.....how you get the RM1.2 billion loss? Please share with us. Comparing this year to date sales with last year, Proton already reporting increase in sales. Is there write-offs or operating cost going up or some other reason?

Proton won't be profitable in 4 to 5 years. This is DRB share, not Proton share. Have to study the impact of Geely partnership on DRB and not Proton.

Going forward, the share (49.9%) of Proton loss will be shared with Geely. Resulting lower losses reported in DRB Books. Hopefully, going forward, DRB will start reporting break-even figures.

If I remember correctly, read somewhere, Proton annual losses about RM900 million. If nothing changes, things stay the same, about RM450 million will be reported in Geely books and DRB books will show an improvement of about RM450 million. This is what I am hoping for. We will only know this when we see quarterly result announcement next year.

Finally.....now my long term projection is back...llast 2 days made me worried...Hahaha

Getting me worried......Don't tell me delay in the Geely partnership.

Am expecting the announcement of the new CEO for Proton this Friday. Indicating the deal with Geely all completed. Let's hope this happens. Than, Friday evening or next week, hope to see this stock go up. I am long on DRB. Bought at 0.90, add at 1.20, more at 1.40, 1.65, even at 1.80 and most recently at 1.55. On average, this stock is giving me good returns. I am waiting for 2+ to realize my gains.

Today article in The Sun....expect Geely-DRB deal to be completed by end-Sept. This will be good, so quarter ending 31st Dec, only half (50.1%) of Proton losses will be reported in DRB books.

My dividend adjusted chart is showing resistance at RM1.67 and the next major resistance is RM1.76. Let's see it break these 2 resistance first and than will fly. And North Korea doesn't start a war at the Korean Peninsula!!! Hahaha

I don't see it at RM2.30 by end of September. I believe this is a longer journey. Proton turn-around won't happen overnight. The good news is, once everything has been finalised, with the issuance of Proton shares to Geely, the RM800+ million losses at Proton will be shared with Geely taking 49.9% of the losses. We will probably only see this next quarter or latest the following quarter. This will put DRB Group at about the break-even position. Than with Muamalat, POS, DEFTECH etc. we will see a turn-around to profitability and an increase in dividend payments. My time-frame is another 9 to 15 months to see it raising by a minimum of 50% from the current levels with the possibility of doubling up in 24 months.

Maybe this is a scare tactic. Like earlier, opposition make noise we selling our National Car Asset to China. Than Geely Boss say, deal off. Than on back again, this time opposition to the deal all quiet. Now, announce new CEO Chinese National, again people make noise, why not Bumi CEO etc. So scare tactic again, say deal off, before you know it, the Chinese National from Honda China will be the new CEO and all will keep quiet. To me, get the best person for the job, doesn't matter from which part of the world he/she come from.

Thank you. Missed it.

Sorry, for the quarter the Investment Holding profit is RM27.782 million. The RM25.359 million is the 6 months ended figure.

Contrarian, based on the Notes to the account, bulk of the profit is from the Investment Holding Segment (RM25.359 million). In this, the major portion is derived from the settlement of amounts owing (previously written off) by PIMA.

Refer to previous announcement for the details: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5393705

The major portion of this is a 'one-off' gain and we won't see it again in the the future. Can remove it in your projections/analysis.

What I like is the share of profit from MAAGAP, only 2 months and contributed RM2.9 million in profit. Just like I had anticipated, MAAGAP alone will be able to generate enough profit to keep the company in a break-even, or small profit, position. All the others will segment will contribute positively to the bottom line of MAA.

Going forward, MAA should continue to be profitable and with a new core business, all in all looks positive for MAA.

I too can't find anything on the 3 sen dividend.

NTA per share 2.05.....EPS 11.13.....1 word....WOW!!!

I am still holding. NTA per share increase to 1.64. Like Jordan Lim said, still profitable and wait for dividend. Was thinking of adding somemore.....but decided to wait till selling stabalize. Current price is about my average cost.

Bad results. Supply issue....no logs....have to buy from others, will cause margin to go down, customers will look for other supplier if FLBHD cannot supply.....outlook looks horrible!!!

Long term very positive. Muamalat, POS Malaysia, Proton land bank for development, producing Geely cars for South East Asia, DEFTECH, Honda etc. My time line is to double up in 3 years.