22sen is achievable. i believe Pohuat is able to pay out 8 sen dividend, similar to 2 years ago.

at 10x PE which is not excessive given its net cash position and growth rate, we should be looking at 2.20

Look at Magni, patience gets rewarded :)

This year would see maiden profit recognition from its project in Melbourne.

be patient, RainT

this year bodes well for furniture companies. increased sales from US due to trade diversion and strengthening of USD y-o-y

Liihen and Pohuat would do well. foresee earnings of 40sen and 22sen respectively

Based on our estimates, key Malaysian furniture companies now trade at 7–8x their forward earnings, which is rather consistent with their average historical forward P/Es. Given the positive structural change driven by the trade diversion from the US-China trade war, we believe that their valuations should be re-rated 8–10x higher (Exhibit 9).

The furniture sector in Malaysia appears to be a clear winner of the trade diversion arising from the US-China trade war. The US Commerce Department first slapped a 10% tariff on furniture imports from China in September 2018. The tariff has been raised to 25% since June 2019 and will be further increased to 30% from December 2019 (Exhibit 1). As furniture exports from Malaysia are spared the tariff, this translates to a tremendous price advantage for Malaysian furniture exporters over their Chinese peers in the US market.

We gathered from furniture companies we met up with recently that they have indeed benefited from the trade diversion from the ongoing US-China trade war. They have seen increased orders, at both their operations in Malaysia and Vietnam (for those who have expanded their operations to Vietnam).

In Malaysia, Poh Huat Resources for instance, has guided for its sales to the US from its Malaysian operations to increase by another 30% in FY19 (Oct), after surging by a third in FY18. We understand that Poh Huat Resources has spent close to RM20mil in capex for its Malaysian operations over the last 24 months, which is 4x the amount it spent in FY16–17. Over the last 1–2 years, Poh Huat Resources has seen higher orders from its existing customers and signed on new customers. It was also urged to expand its product range.

wow, this is getting cheaper. between eco and mahsing, opted to allocate funds to the latter due to the coming dividend. but at this price, eco is very interesting.

i have been busy collecting stocks, albeit cautiously though it didn't prevent it from going lower and lower from my purchase price. lol

what have you been buying, Jon?

problems in democracy if not solved are susceptible being replaced by military dictatorship (example Chile)

might buy some if it drops to 80 sen

Bought some Kawan. Resilient business

any interesting news lately?

if u have a longer term view, LHI fits as a growth stock in ur portfolio. Tong from The Edge also bought LHI.

@icon888 you too bought eco?

wonder why the price keep dropping

oriental is one big lazy dinasaur. but with annual dividend of 40sen, you are getting above 6% yield. defensive stock for one's portfolio.

Given the current environment, late economic cycle, perhaps holding cash is not a bad decision afterall. for one, you could protect yourself from the massive drop in asset prices. and secondly, you are in a better position to take advantage of other people's risk aversion. of course, how much allocation to cash is very subjective. no one rule fits all.

perhaps 90sen by end of today?

@RainT

which REIT has the highest yield?

market cap is 70mil++, sushi king itself is worth triple of that

are you considering adding gold to your portfolio? haha

Malaysian furniture exports to the US seen growing 20% annually

https://www.theedgemarkets.com/article/malaysian-furniture-exports-us-seen-growing-20-annually

bought some 7.96

i would be happy to collect if it drops below 1, literally getting the business for free.

Long term would do well. Proxy to growing ASEAN market.

On board at 94sen.

Leong Hup looks interesting at current price. LHI is trading at about half of QL's PE. It's profit margin is comparable, even slightly better than QL (poutry segment). of course, QL is more diversified hence more resilient as compared to LHI which is very sensitive to changing demand and supply dynamics.

tempted to buy some blue chip

flight to quality?

SAM steadily up

if u looking for turnaround play, i prefer Superlon. it's safer bet. and the co is in net cash.

you bought when Tong from The Edge sold. He realised 50% loss on SCGM.

good cash flows. strong balance sheet. net cash is 50% of market capitalization.

earnings are recovering, albeit gradually.

work hard in you career, climb up the ladder and get your employer to reward you with car allowance, not forking out your hard earned money on continental cars! earned it through your career advancement

if MGO does happen, it can't be at this price. it's absurd.

you don't even need to do a proper Sum Of Parts on Insas. It's stake in Inari alone already worth double of Insas market cap.

Unbelievably undervalued.

It's ok. I have plenty of patience.

The rest, apart from insas, pays good dividend yield, while i'm waiting for market re-rating. i get paid while waiting.



Posted by stockraider > Jul 2, 2019 4:21 PM | Report Abuse

The key is catalyst....the missing in gradient of your pick loh...!!

Posted by Fabien "The Efficient Capital Allocater" > Jul 2, 2019 4:05 PM | Report Abuse

For assets play, Insas, Oriental, OSK, TA, Affin all selling dirt cheap. Take your pick.

Icon, did u take a look at WCE? Worth a look, high upside potential relative to downside, imo.

For assets play, Insas, Oriental, OSK, TA, Affin all selling dirt cheap. Take your pick.

HLI can earn ROE of above 25%. how many investors can do that? with the excess cash to you, can you make use of it and beat the 25% return?

i believe HLI is doing good actually. despite the massive cash piles, the management is still able to earn ROE above 20% consistently. they know what they are doing. moreoever, dividends have been increasing yearly. they have a strategy in place.

in contrast, Oriental ROE is below 10%, the cash is sitting there idling, the management is over conservative. Oriental should distribute those excess cash to the shareholders.

"Somehow I saw the potential in Yamaha bikes when many do not."

@kywoo, mind sharing your research and insights on the prospect of Yamaha bikes?

i also hold both HLIND and Oriental

hence, investing requires a lot of patience. as long as the fundamentals are good, even maintaining at 50sen dividend you will still get 4.5% yield better than FD.

i remember investing in Padini. similarly strong fundamental company, trading at low digit PE to 10x. been holding for few years while enjoying 5-6% dividend yield. after 2 years plus of holding, market sentiment towards Padini changed resulting in higher valuation multiple. Padini was re-rated higher and higher, even to 20x, if i'm not mistaken, and became one of top investment success.

well, Calvin has the last laugh..haha


calvintaneng HIGH CRUDE OIL PRICE MEANS EXPENSIVE RESIN FOR SYNTHETIC RUBBER

THIS WILL HIT TOP GLOVE EARNINGS BADLY

SELL ON REBOUND NOW!!
23/04/2019 10:27 PM

its growing owner earnings, i.e. free cashflows, itself is a catalyst to better valuation multiple hence its market valuation

we all know PE 10x is unreasonable for such company (net cash, growing earnings, growing FCF, good dividend yield, growing dividends, high ROE, high ROIC). ex cash PE ratio < 10x.

what is lacking is the "demand", perhaps due to its small public float and no analyst coverage.

Quoted from Seth Klarman...never blindly to be contrarian, betting whatever is out of favor to be restored. often, investments are disfavored for good reason..

investors must consider the possibility that recovery may not occur. it is also important to gauge the psychology of other investors. how far along is the curren trend? how much further it may go? what are the driving forces?

being extremely early is tantamount to being wrong. conclusion, contrarian need to understand the psychology of other investors.

similar to other property counters. earnings are contracting but sales remain above target. current price is at massive discount, decent yield

@TheContrarian why not consider MahSing?