Hi KC : thanks first. I will go to investopedia again to understand the meaning of both further.

Hi KC Chong: may I ask what is the different between ROA and ROIC ? Thank you.

KC Chong : Thank you for the very detail and explanatory essay.

Bonus issue does not really create added value except increasing liquidity of the circulated shares. It is like dividing 1 big cake into two. You gain nothing except more smaller pieces for distribution to more people.

People has historically and habitually viewed bonus issue as a catalyst boosting share price up, thus most of the times, price will hike along announcement on bonus issue. Nevertheless, price will usually retreat prior the ex date or a short while after the ex date.

The long expected significant profit contribution from plantation unit has not been shown on quarterly report. I beleive this will be shown in the quarterly result next month. I bet on it and thus will HOLD MKH much longer.

Extracted from note of Q1 report : Group is optimistic of achieving better performance and growth in financial year 2014.

Group recorded a revenue and net profit of RM83.4mil and
RM14.1mil as compared to RM77.5mil and RM10.2mil respectively in the
corresponding period last year (8% and 38% increase respectively).

ST Special Div 4%(2 sens) X 18Jun14
ST Final Div 4%(2 sens) X 18Jun14
Total = 4sens(RM40) on 18Jun14.
Cheers !!!

From Bursa 29Apr14 : Bonus 1:5 ex 15May14

星洲財經（吉隆坡28日訊）馬來亞銀行（MAYBANK,1155,主板金融組）貴為大馬銀行業“龍頭”，估值反而不比其他大型同儕，達證券研究認為，馬銀行整體運作保持強穩，加上早年併購活動發揮效果，後市展望明朗，重申“買進”評級不變。
點看全文: http://biz.sinchew.com.my/node/94121?tid=18#ixzz30ButYjIj

Palm oil biodiesel programme to cover all of Malaysia by July. http://www.thestar.com.my/Business/Business-News/2014/04/26/B5-goes-nationwide/

Senior research officer, Malaysian Palm Oil Board (MPOB) said: “.....reduce domestic palm oil inventory to below one million tonnes, and provide a floor price to support CPO prices at RM2,000 per tonne “

Is this a positive news to plantation stocks ?

星洲日報:缺工和聖嬰蠢動‧棕油價恐漲30%(http://biz.sinchew.com.my/node/94109)
If this forecast where CPO jumps 30% from RM2600 to RM3380 is to materialize, do you know how much will share price of TSH be?

Hi Mr mhmn91 : Great to know that you know Mr Teo.

First of all, I come with peace. Please forgive me if my poor English does not shows polite message.

As I have significant capital invested in Zhulian thus I am very keen to know some insights which you may have. The insights are very important to explain the long hanging doubt as discussed below.

Zhulian reported quarter revenue more than 100 mil and PAT about 30 mil for the last consecutive 7 quarters. These have clearly shown that the biz was very stable and sizeable and in fact it was growing if we dissected its detail.
There were no any economical, political or natural disasters during the badly affected Q4FY13. Thailand bad political situation was just started for less than a month in that quarter. Thus Thailand political turmoil is clearly not the culprit for the poor Q4FY13.

Therefore, why its earning was so terrible in Q4FY13 (dropped ~60%) ?

The mgt has just simply said that the biz was affected by the current unfavorable situation. What was that unfavorable situation? Why I did not see that other companies in the similar or related industry (MLM, jewelry, Nutrient) and geographical zone face the same unfavorable situation?

Please share some insights. Thank you very much.

Mahsing is TO DOUBLE UP? 马星开番?

I am reading articles of klse.8k. He advocated a lot on “double up”(开番). Let’s see if our beloved Mahsing has this potential.

CAGR for the last 7 years =23% from 65 mil(FY06) to 281 mil(FY13)

Let’s conservatively assume the subsequent CAGR = 15% (In fact Tan Sri Leong targets to grow by 20% each year)

EPS from FY13 to FY17 = 21.5, 24.8, 28.5, 32.7 and 37.6 sens

Assume PE at 12x in Dec17, Mahsing will be 37.6 x 12=RM4.52(~2x of the current 2.30, 开番)

Assume PE at 14x in Dec16, Mahsing will be 32.7 x 14=RM4.58(~2x of the current 2.30, 开番)

I have an opinion that Mahsing should trade at PE 12-14X. Thus I forecast Mahsing will double up(开番)the latest in Dec 2017 if the bull is still alive then.

In fact if the current bull can stretch through, I am personally optimistic that Mahsing will reach RM4.5(~开番) in Dec 2015 with CAGR 18% and PE15x.

Good luck.

FongSiLing told you that GTronic at RM3.10 is NOT OVER VALUE !!!

In Dec 2013, share price of GTronic was about RM3.10 yet FongSiLing held 2,100,000 shares(from AnnualReport2013), which told you indirectly that he judged RM3.10 as not over value and can HOLD.

How about now at RM3.70, 20% higher than RM3.10, the price which was deemed as not overvalue in the eye of Cold Eye?

In fact you can know the answer by buying the latest list of shareholders from Bursa cheaply. Many years ago, somebody told me it was RM10/list, I cannot verify this info. You can find out by yourself.

Hi Stockraider : PE
in the perspective of PE, I strongly support your point. PE is the most simple and direct way in evaluating price of one share. Undoubtedly, PE has its own limitation but after assessing its pro and con, it is still rated as the most user friendly way in evaluating a share price. Else why after so many years, many analysts are still using PE as one of the main tool in evaluating share price? Along time, the industry/intellectuals by itself/themselves would automatically scrap those ineffective and keep and practice those effective method and concept. This is one of the “laws of natural”.

Good luck, I will just naively keep Mahsing for very long term.

Low PE at about 10X @ RM2.30, eps 21.52sens in FY13:
With the proven sound financial track record, high reputation in the market, precious status as one of the top leader in the industry, vibrant mgt team, close to the benchmark RM3bil mkt cap, it is very weird to peg it with low PE at 10X.
Anyway, let’s see from positive angle that the low PEx with high earning means it has higher upside potential and safer than others high PE counters.

High Dividend Yield at 3.5% / 5.9% / 6.5%:
If you buy Mahsing on last Friday at RM2.30, with the announced div 8 sens(historically , it will be paid in Sep), your div yield is 3.5% which is about rate of FD.

But if you were bluntly bought it in 2009 and keeping it till today(like me), your yield would be 5.9% which is approaching to 2X FD. “2X FD” is the general minimum target by many dividend investors.

With the expected growing earning and fixed DPO at 40%, the dividend will grow along. Thus if you buy now and keep for 5 years, your div yield in 2019 would be about 6.5%(>2xFD) with conservative assumption on annual growth rate at 13%.

klse.8k 前辈advocated criteria for stock selection which are ROE, PE, Div Yield and NTA.
The above listed achieved ROEs of Mahsing for the last many years are great. According to klse.8k 前辈, investing in company with growing profit and high ROE, you will not die.

klse.8k 前辈advocated his criteria for stock selection which are ROE, PE, Div Yield and NTA.

2013 2012 2011 2010 2009 2008 2007 2006
ROE 15.6 18.7 15.7 12.9 12.2 13.6 14.7 21.1
PE 9.6 7.4 10.1 14.1 no info no info no info no info
Yield 3.9 3.7 5.4 3.8 no info no info no info no info
NTA 1.4 1.5 1.3 1.1 1.2 1.1 1.0 2.1

To Mahsing's holders : Yesterday I started reading articles(ebook) by klse.8k 前辈. It is an old articles but with plenty of good knowledge inside. I were unfortunate not knowing it at that time. If I were reading then, I would have been much better now. I would like to recommend it to you. Google it and download it from web. Tan KW's blog has it too. Happy learning and sharing.

Alex: good morning to you.
Judging from the announced locked in sales, I also have high confident that Q1 and even the entire FY14 will not disappoint shareholder. Tan Sri Leong said the company targets 20% growth on sales. When saying so, he should have at least 90% confident level to deliver the number unless there is an eco disaster in the year, else he will not risk his creditability as the renowned entrepreneur.

“烏龜股是最頭痛的，用鞭的也不管用，只能用等的！”

The above quote was borrowed from other blog. It reflects share price (not the earning) of Mahsing very well. Tortoise is long life and safe.

lcng123 : great forecast. I have the same feel, thus I am still keeping my MKH. thks.

“冷眼还是klse.8k 提及: 长期持有一些蓝筹股，都会有很惊人的回报”

My track record: the above statement is not 100% true; it depends on which blue chip you hold for long term.
Example :
CIMB : Aug09 @ RM11, Apr 14 @ RM7.40(bonus 1:1 in May10)=(2x7.4)/11=35% in 5 years

Genting : Mar07 @ RM6.4, Apr14 @ RM9.7->9.7/6.4=49% in 7 years

Resort(GenM) : Jun 09 @ RM 2.9, Apr14 @ RM4.2->45% in 5 years

I am not the lucky one. I admire the much higher return of others but I have no regret as those were the best decision I can made at that time.

If you hold PBB or LPI, you are the luckiest one. But in the real world, it cannot be everybody the lucky one.

Bingo! Matrix proposed Bonus Issue at 1: 2. It is expected to be completed by Q314. I foresee it to grow up significantly, unless there is a big market correction between Apr to Sep14. Hold it tight and wait for the durian jatuh.

Turtle is very very slow but safe an long life. Comparing to flying beautiful butterfly and handsome quick rabbit, I prefer Turtle albeit I admire the beauty and quickness of butterfly and rabbit.

Chaihuat(above) is right that the share price should better catch up as a reward to royal shareholders who supported the cash call(Right) by the company. We should be rewarded instead of penalized.

Stock Picks of the Day - Mah Sing Group Publish date: Wed, 9 Apr 2014

http://klse.i3investor.com/blogs/kenangaresearch/49848.jsp

Despite the subdued sentiment on the property market, investors still like MAHSING as it is one of the large cap developer laggards, which continued to focus on Klang Valley affordable housing market. Our in-house property analyst shares the same view, with an OUTPERFORM rating on the stock. Chart-wise, MAHSING has confirmed a breakout from the “Descending Triangle” chart pattern. We reckon that investors should pay attention to the stock, as this chart pattern can act as a powerful reversal signal. Short-term trend of MAHSING is bullish with the share price staying above all the short, mid and long term SMA. We expect followthrough buying to surface over the next few days, and eventually bringing the share to retest its previous high level of RM2.82.

Source: Kenanga

The Star 7 Apr14 :”Foreign funds snap up Malaysian shares”

http://www.thestar.com.my/Business/Business-News/2014/04/07/Foreign-funds-snap-up-Malaysian-shares/

This is the greatest potential for Mahsing. Last time when foreign funds exited Bursa in big way, Mahsing and CIMB with high foreign holding suffered a lot. When they come back in big way, the possibility for Mahsing to get their interest would be as big as before. I guessed the recent run up on CIMB is caused by the same rhythm. This is my best GUESS. What do you think?

undukngadau : thanks.

Thks masteragu

bracoli : I wrote so much. Give a "Like" mah. He! He!

Thank you Mr Icon8888.

Example 1: free buses with free WIFI bringing Penangites(even from mainland) to Industrial zones, reduces financial burden of Penangites and traffic on the road.

Example 2 : run down old shops in Georgetown were given new life with transformation into hotels, modernized kopitiam and art galleries. The famous wall art painting by Lithuanian artist, Ernest Zacharevic(Mat Salleh invited by Lim) attract many tourists taking pictures as sweet memories whereas Johur disallows the wall art painting by the same Mat Salleh.

Example 3 : Penang's famous Botanical Garden is now well managed by the renowned retired professor from UK. Lim purportedly flew to UK to invite him. The garden receives many Penangites and tourists every day. Comparing to many abandoned and run down grand gardens across the country, you will appreciate Lim.

Example 4 : Cycling is very popular in Pg. Lim gave budget to promote it further, drew and built many bicycle lanes around the island, holding many cycling activities etc. In other places, this is a good reason to ask for budget but most of money ends in pocket of division heads.

Example 5 : open tenders for state projects.

Example 6 : attract the highest or second highest amount of foreign investment for many years. Fresh graduates working in Penang receive high pay as compare to other places.

Example 7 : cleaning up the government, eliminate debts, balance up the book of the state and even bring in surplus.

Example 8 : one of the world famous contractor of Theme Park has been denied for many years the proposal to build theme park for Penangites as part of his contribution to his home state. Until Lim took over, he has built “escape theme park” in penang.

Example 9 : shot and asked for corrective actions when there were few times flood in airport during heavy rain. In other places, it is art of God just like our many hospitals, stadium and even Parliament.

Example 10 : warning to sack senior mgt of PBA if Penang need to do water rationing. Again, if this happens in other places, it is art of God, it has nothing to do with the competency of the mgt.
We are proud of our PBA for its best efficiency throughout M’sia.

Example 11: Lim flies with eco class while the whole family of Dentist(KT-Selangor ) and even his Indon maid took biz class visiting Disney Land.

Example 12 : Competency/government servants with sense of accountability. It is a long story, cut it short, the Penolong Pangarah sent me email informing that my complaint has been taking care of and later resolved. In other places, lu balik and tunggu lah, then ulang alik for many times and end up the complaint is still hardly resolved.

And many more…..

You may not agree, but these are what many Penangites feel and proud of.

Many Penangites do not only like him but love him. He is not special at all, but just doing things that a good government does. Unfortunately for last the many years, we saw this type of good government in other countries only until Lim GE shows to us that they are all real, and are happening in Penang. It is just that simple.

I see market cap anything lower than usd1 bil(RM3 bil) as not big. Mahsing's mkt cap is now about RM2.9 bil.

Minimum usd 1 bil is an untold criteria for many foreign funds to invest into. I read this few times from some blogs, how true is it ? I do not know.

Hi Icon8888: “High plot ratio means that they squeeze a lot of units into one piece of land.”
Thanks for the explanation.

In this perspective, I knew that the beloved Lim Guan Eng allows developer to increase plot ratio as an effort to slow down the increase of selling price per unit in Penang Island. From here, I see it as a wise move as long as the buyers can afford and accept it.

Hi Icon8888: I bought Mahsing in 2009, a very faithful investor, bringing me reasonable return but not great at all.

Do you look into Matrix ? I bought Matrix lately for its dividend and growth(?) prospect.

The concept of public listing is to gather public money to grow a biz and share the return with the shareholders in the form of capital gain and div.
For many investors, dividend makes up part of the very important factor if to invest into a particular company. I do not have an official data, however I opine that EPF, Khazanah(ASN, ASB etc) and many dividend funds prefer companies with div as they need the div for the unit holders.

“growing dividend payment, showing the company is doing well in its business.”

This is the greatest part of investment in equity. When I bought Zhulian at 0.90, I received 11sens div per year(~12%). With the fixed DPO at 60%, I received 16 sens last year(17.8%). It indicates earning has grown by 17.8/11=62%. I simplify the case without factoring in the 1:3 bonus issue in 2010.

Note : the above is history data. Lately Zhulian somehow turned turtle.

“Need income? Why can't you sell part of the holding to get the income you need?”
With the same concept may I ask the same question from the opposite angle?
Need cash to expand biz ? Why can’t the mgt issues right to gather fund from shareholders?
Why can’t the mgt borrows from bank to grow biz ?
Isn’t it that the return of biz expansion should be higher than interest rate else why expand? This is with assumption that the mgt does not over borrow else it will lead to more complicated argument.

Mahsing : 我等到花兒也謝了(張學友)
http://www.youtube.com/watch?v=JY_0EX5YcL8

每個人都在問我到底還在等什麼 等到春夏秋冬都過了難道還不夠 其實是因為我的心有一個缺口 等待拿走的人把它還給我 每個人都在說這種愛情沒有結果 我也知道你永遠都不能夠愛我 其實我只是希望你有時想一想我 你卻已經漸漸漸漸什麼都不再說 我睡不著的時候 會不會有人陪著我 我難過的時候 會不會有人安慰我 我想說話的時候 會不會有人瞭解我 我忘不了你的時候 你會不會來疼我 你知不知道 你知不知道 我等到花兒也謝了 你知不知道 你知不知道 我等到花兒也謝了

Growth - Have : 20% growth on sales for the last few years and this year. PAT grows from 65.4 mil(FY06) to 280.6 mil(FY13)= 329% growth in 7 years.

Consistency - Have :Except for FY09, growth rate on PAT of each year is >15%, i.e. FY07(24%), FY08(15%), FY09(1%), FY10(25%), FY11(43%), FY12(37%), FY13(22%).

Dividend - Have : 40% DPO which is about 3.6% with the proposed 8 sens @RM2.20. In fact it should be 3.9% with div 8.6 sens(40% x eps 21.52 sens), the mgt plays “busuh” in siphoning away the 0.6 sens.

Succession plan –Have : 一双儿女是因为自己的热诚加入这个产业.

Mahsing ah Mahsing, what else do you need to go up ?

I do not really understand the meaning of “very high plot ratios”. Does it means majority of properties built by Mahsing is very high price?

Herewith I post an extract from interview with the CEO, Tan Sri Leong on 31Mar14(The Star) that for 2014, 81% of the company's target residential launches would comprise mainly mass to mid segment products priced at RM700,000 and below.

Said that, I still puzzle on why share price of Mahsing just does not go in parallel with the broader market?

KC & fortunebullz : I did follow the history. This is the greatest bonus of the day.

Hi Bing : yes, we really can become good friend as both of us are poor in English, I am poor as I wrote something which causes you misunderstood the message badly. Your English is poor as you said it yourself. Nice to meet you and happy investing in MKH. Good luck.

It is REAL and NOT "ifs" and "buts". Mr Ooi is echoing the concept of investment in good growth counters such as MBB, Genting, Resort(Gemn), HL and many more. You can refer to the first book of Ren Yan, he did quote 10 counters as quoted by Mr Ooi TB. They are all real. The pertinent question is if you have the knowhow, discipline, and luck? Unfortunately I do not have, sigh…..

Clarification : "Not too long ago, you can get a three-room terrace house in Penang for slightly over RM200,000. Today, without some RM1mil, no seller would even talk to you" is certainly a WRONG statement.

Hi Mr Ooi TB: I were too young at 1977. So I always asked “God, why not my father ?”

OK, now it is our time. I should not let my sons to repeat the same question.

My current holding is Mahsing which lot of the people disagree, and sometime myself too.

Do you have some potential candidates to recommend? So that we can monitor and buy when there is a downward adjustment on market.

Thks.