It's not too far fetched if you take into consideration in the unrealised gain in its investment securities which currently booked at book value.


dunspace In my opinion, RM3 intrinsic value is too far fetched.... his just blowing him own trumpet unless there is a hidden associate/subsidiary that can grow like Inari.
23/11/2017 17:34

Level of TP

Ben Graham net-net asset valuation = 1.68
NTA = 2.41
Dato Sri Thong = 3

Do you think at current price, the company is trading at a tremendous bargain?

Value is in the eye of the beholder. I may see value and yet you disagree.

So the key question is whether the management is competent and capable to drive the company through this difficult period? What is your assessment of the management?

Another question is whether these supply problem is a prolonged structural issue?

Business prospects seem challenging, that's true.

Here's another perspective to look at.
Cash balances and money market funds amount to RM105,719,000 which is equivalent to RM1.02/ share

At current price of RM1.30++, the rest of the business is valued at 20++ sen.

immediate target price is 60 sen before eventually touch RM1

Hengyuan did well.

Have a look at BJCorp too.

just my opinion, i believe the selldown could be due to the strengthening of RM.

nothing to worry about as this is macro-related variable which the company to an extend can only mitigate via hedging.

business fundamentals unchanged and prospect seems bright.

take a longer term view then u will be fine, just enjoy the high dividend payout in the meantime which is fully supported by its strong FCF generation.

Liihen is a very safe investment.

Short term price weakness is normal. Not every share can go up like Hengyuan. It;s better to inch up slowly and let the market dictates it.

More importantly, fundamentals are good.
Strong B/S: Net cash 54 sen per share, FCF/share > 4.5% (above risk free rate), DY > 6%
Strong earnings visibility: riding on US economic growth and the hurricane effect

time for re-rating perhaps?

BJCorp share still some way to go to its intrinsic value

Looking at their equity investments, to me, they act like private equity firm. They build sizeable stake in the company and account them as associates. Their businesses are diversified because of their strategic holding in these investee companies.

In a typical treasury function, there are full time employed professionals carrying out the investment activities (doing research, site visit, buying, selling etc), with each team set-up specialising in equities, bonds, money market etc. What u need to know is what is the governance structure in place overseeing this investment function. I don’t think Thong is the one who made the call, and if so, is his discretionary authority is approved by the Board and or is there a check and balance function to mitigate such situation.

I believe there is someone heading this division who is full time observing the function. The next question is whether they have an investment committee to meet regularly and evaluate the performance of the investments and whether the investing strategies/process meets the investment objective.

Why do u want to recommend OTB? He is more a trader.

Insas investments are of long term nature, 3-5 years as stated in the AR. Apart from equities, they do invest in fixed income, money market and options.

Pls check Thong's background, he is a prominent Investment Banker. And also, i do remember in the past AR, they did mention about having investment team set-up overseeing this function.

anyone has any idea of how much Insas's stake in IGB Corp and whats the COI?

if privatisation goes through, how much gain would Insas book?

Accumulated more of Insas.

Where to find negative enterprise value stock in Bursa.

It's a very safe investment with enormous upside potential. Time will prove.

drop 6 sen. where got uptrend mode?

wah so many experts giving their expert advice of SELL call.

everyone has their own amazing target price...as low as 0.59 i believe

funny, it reminds me of Hengyuan and more recently, Lii Hen (due to last Friday fire)

shareinvestor88
540 posts
Posted by shareinvestor88 > Oct 30, 2017 10:55 PM | Report Abuse

Better sell before the results come out

I can feel his frustrations. LOL

uncle lim must have patience to wait for 2.5 ya...maybe can get in next decade or so

suddenly so many concerns about your wealth being by giving advice to you to sell your shares

i believe many who advocates SELL call are actually in the hope of buying cheap

Budget 2018: RM100mil loan with 70% guaranteed by Govt to automate production of furniture manufacturers for exports.

Budget 2018: RM100mil loan with 70% guaranteed by Govt to automate production of furniture manufacturers for exports.

Lets talk about good news shall we..

Budget 2018: RM100mil loan with 70% guaranteed by Govt to automate production of furniture manufacturers for exports.

please be rational and do not equate Lii Hen with Notion. it is a totally different scenario. apply logical thinking. that's my advice.

really scratching my head looking at the behaviour of all these panic selling...calm your horsed down man

Lii Hen up but Hevea and Poh Huat down

correction: ex-cash PER = 6.74x

Poh Huat

Trailing 12 months EPS = 26.70sen
Trailing PER = 7.68x
Net cash per share = 25sen
ex-cash PER = 3.97

From Insider Asia:

Reconstruction to boost demand
Apart from its new product: panel-based bedroom set as immediate
growth driver, we see potential surge in furniture demand on
hurricane reconstruction especially for the middle and affordable
segments. This may include temporary furniture during
reconstruction period.
We maintain our BUY call and leave our double-digit earnings
growth forecast for 2017 unchanged.

I have major positions in PoHuat, LiiHen and Hevea. If you look for earnings growth and yield play, these are the stocks to consider for your portfolio.

lii hen achieves the highest ROE and ROIC in the industry..that demonstrates the capability of the management that inspires confidence...

furniture industry prospect looks bright. look at all the IB covering furniture companies..poh huat, liihen and hevea..all with high target price

Protect your downside first, let the upside take care itself.

Insas is a very safe investment.

Insas latest NTA is 2.03 + unrealised gain in Inari holdings RM1.32 = RM3.56

Let's say 50% discount, u should get RM1.78

Buy, hold or sell - it's your call

Based on today;s Inari market cap, Insas stands to gain RM1.32/share.

Market value of Inari/ Insas share = RM1.53, way above it's current share price.

Inari is indeed a gold mine to Insas.

Why should Lii Hen be valued at 10x.
I believe that is the least pricing multiple given their strong ROE & ROIC (>20%), DY (>6%) and net cash position + strong FCF generations.

Half yearly EPS = 21.52sen
Annualised EPS = 43.04sen
At P/E of 10x, share price = 4.30
Include net cash per share of 0.538 sen
Share price at a min should valued at = 4.30 + 0.538 = 4.838

To include future earnings potential, may refer to HL Target price of 5.04

even at RM4, DY is still 6.5%

Target price 5.04. Still long way to go.

still solid as rock??

can't break above 3.80

something to ponder..demand for plywood to rise due to hurricane in US?

Fed to taper their Balance Sheet next month. The expectation for the coming hike in interest rate is either in Nov or Dec. Based on FOMC minutes, Fed seems more hawkish. Expect USD to strengthen.

Fed to taper their Balance Sheet next month. The expectation for the coming hike in interest rate is either in Nov or Dec. Based on FOMC minutes, Fed seems more hawkish. Expect USD to strengthen.

Fed to taper their Balance Sheet next month. The expectation for the coming hike in interest rate is either in Nov or Dec. Based on FOMC minutes, Fed seems more hawkish. Expect USD to strengthen.

its normal for market to make such correction after the disappointing quarter results. this is call MEAN REVERSION

Based on latest price @ 8 Sept:

Insas @ 1.02, P/E = 3.74x & P/BV = 0.44x

TA @ 0.675, P/E = 3.75x & P/BV = 0.46x

Based on the above valuation metrics, we can observed both stocks are trading at extremely cheap valuations, and thus presents an attractive investment for investors looking for value.

Both stocks qualify as earnings-based play - low P/E and assets-based play - low P/BV.

A look at their balance sheets, you will notice that there is much hidden value yet to be reflected in their respective share price. For instance, Insas's 20% stake in Inari (latest market cap - RM5,116million) alone translates to RM1.39 per share, above their current share price of 1.02. On top of that, Insas owns Ho Hup (13%), Omesti (10%) and SYF Resources (9%) - all recorded at BV in the balance sheet, in addition to cash & cash equivalents of RM0.72 per share.

Based on latest price @ 8 Sept:

Insas @ 1.02, P/E = 3.74x & P/BV = 0.44x

TA @ 0.675, P/E = 3.75x & P/BV = 0.46x

Based on the above valuation metrics, we can observed both stocks are trading at extremely cheap valuations, and thus presents an attractive investment for investors looking for value.

Both stocks qualify as earnings-based play - low P/E and assets-based play - low P/BV.

A look at their balance sheets, you will notice that there is much hidden value yet to be reflected in their respective share price. For instance, Insas's 20% stake in Inari (latest market cap - RM5,116million) alone translates to RM1.39 per share, above their current share price of 1.02. On top of that, Insas owns Ho Hup (13%), Omesti (10%) and SYF Resources (9%) - all recorded at BV in the balance sheet, in addition to cash & cash equivalents of RM0.72 per share.

ladahitam....where u got the news of privatization?