Just enjoy the ride

SAM is catching up with Kobay. Good thing Kobay is still moving

at the very least, SAM is worth 2-3x more

Foker what r u smoking??

I don't have reddit account. only active here.

@Foker I don't see the need to constantly update here anymore. fact remains i'm still holding 50% with average cost of 6.63

the hard work has already been done. if you scroll through the old thread i have been recommending SAM when it was 6++ and 7++ and the share price has been hovering around that range for about a year

now that SAM has been re-rated and the surged in price has pique market interest...SAM is in a position of strength. A virtuous cycle ensues...

again, i would like to mention that i recommended SAM when it was at 7-ish..not when it has surged above RM10

am gonna sit on the sidelines and enjoy my gains. cheers

wow, you are more bullish than me..my 1st TP 8.00


Posted by PureBULL ... > Jul 31, 2021 4:03 PM | Report Abuse X

GREATEC looks ready to attempt ATH this week.
Once in the new.blue.sky, this is my daring guesstimate:
1st TP $8.85
2nd TP $9.90 ++

MPI never fail to amaze me

Aluminium is holding steady above $2.5k

Green commodities...both aluminium & copper are essential raw materials for renewable energy sector as the world shift to decarbonisation

demand for aluminium will remain elevated for years to come...used in power transmission lines, wind turbines, solar panels & EV

do u know that one EV can contain up to 250kg of aluminium? battery box, electric motor housing, wheels etc.

PMetal on track to record 100% growth with aluminium prices remain elevated in 2H2021

@ wallstreetrookie deletd my comment because i rather not show my average cost

yes, my comments are up because i have the free time to do so. shaking? more like calm and equanimity.

@treasurehunt

SAM has morphed into a sizable semiconductor contract manufacturer after successful diversification strategy from aerospace market. Its equipment business has outgrown aerospace in FY20. SAM has exposure in semiconductor frontend and storage devices with reputable customers (Agilent, Teradyne, KLA Tencor, Bosch, P&G and etc) in telecommunication, medical and automotive sectors.

As a comparison company, Kobay projected to make between 30-40mil net profit. currently valuing at 1.12bil market cap

SAM 80-100mil net profit. at 1.6bil market cap

im still holding 50%

@wallstreetrookie

i rather be low profile

10bil market cap within reach

Are you really that late in the game? The best time to buy FPI was last year between 1.30-1.40 when nobody wants it.

It's funny how interest always come after the share price has gone up.

SAM hit limit up today.

Remember what i said, SAM is the most undervalued semiconductor play in KLSE.

Congrats everyone!

Remember what i said, SAM is the most undervalued semiconductor play in KLSE.

Great value if drop further

Market cap 6.3bil vs Net Current Asset 6.5bil

LCT is valued below its liquidation value

Frontken recorded PBT of RM114mil last year - RM5bil market cap
Vitrox recorded PBT of 110mil last year - RM9bil market cap

A simple illustration, SAM's semiconductor segment made PBT of RM104mil last year. This represented a y-o-y increase of a whopping 67%. SAM has RM1bil+ market cap

Let's assume a very conservative rate of increase of 10% in earnings. This is at extreme end of assumption considering the structural growth driven by cloud computing, 5G, AI and digitization, which in turn fuelled soaring demand for semiconductor chips and equipment.

At PE multiple of 10x will value their semiconductor business at more than RM1bil. Which implies that at current valuation, you are getting their aerospace business for free.

I believe SAM is the most undervalued semiconductor play in KLSE.

Not bad, close to 400mil profit

A simple illustration, SAM's semiconductor segment made PBT of RM104mil last year vs. Vitrox's PBT of RM110mil. This represented a y-o-y increase of a whopping 67%.

Let's assume a very conservative rate of increase of 10% in earnings. This is at extreme end of assumption considering the structural growth driven by cloud computing, 5G, AI and digitization, which in turn fuelled soaring demand for semiconductor chips and equipment.

At PE multiple of 10x will value their semiconductor business at more than RM1bil. Which implies that at current valuation, you are getting their aerospace business for free.

I believe SAM is the most undervalued semiconductor play in KLSE.

This company made 60mil profit in a pandemic-hit year which resulted in the aerospace division booking a loss. Entire profit was contributed by the semiconductor segment. As a comparison, they made 80mil in prior FY before covid.

if these results are not commendable, i don't know what is, considering their ROE was 9.7%.

note that Dato Seri Wong Siew Hai, President of Malaysia Semiconductor Industry Association
(MSIA) is sitting in the Board.

If other semiconductor companies can fetch forward PE of 40-50x, what do you think of SAM's valuations should be?

they invested 50mil capex last year of which 39mil goes to aerospace and the remaining 11mil for semiconductor. the aerospace business will recovers and strongly. orderbook about 2.4bil.
market cap is 1bil-ish.

Based on projections by Forecast International Inc. in April 2021, the estimated commercial aircraft production in 2021 would be in the order of 900 - 1,000 aircraft. The combined order backlog of Airbus and Boeing commercial aircraft remained healthy at approximately 11,980 units as of March 2021. This translates to a backlog of 8.7 years for Airbus and 6.2 years for Boeing at pre-pandemic 2018 delivery rates. On a positive note, Boeing is gradually increasing its Boeing 737Max production with the goal of reaching 31 aircraft per month by 2022, after the Boeing 737Max grounding has been lifted by Federal Aviation Administration (FAA) in late 2020.

SAM is riding on semiconductor upturn too. Perhaps, its not within anyone's radar either due to

1) perception that its earnings are dominantly derived from its aerospace segment (pre-covid, its almost about 50:50 contribution)

2) Liquidity (hardly any volume as shares tightly held by Temasek)

3) management doesn't bother to talk to any investment analyst


Once the travel industry recovers, a matter of when, you will see both engines running

So its both a recovery play stock and a proxy to semiconductor cyclical upswing

10bil market cap within reach

Vitrox to join Inari 10billion semiconductor club?

As of now, MPI about 9 bil market cap, Greatec 7.9bil, D&O and UWC 6bil+, Frontken 5bil

JHM small cap is about 1.3bil

One is thriving in a structural growth sectors while the other one operates in a sunset industry. Market is not always right, but they tend to get it right over the longer term.

All time high quarterly profit.

Wisest move is to position your portfolio riding on long term growth drivers in 5G, e-commerce, IOT, EV, cloud computing etc.

Yinson's two live bids..the FPSO PDB likely to be awarded by Oct and Petronas's Limbayong by 3Q21. Aker Energy’s Pecan project will be awarded in 2022

Berjaya Corp plans to delist Berjaya Land, sell Berjaya Sports Toto

Expect strong 2Q results to drive share price upwards

The only local tech in my portfolio is Greatec

For tech exposure, i rather invest in US-listed companies. Tesla, Palantir, Square...these are the potential multi-baggers

I like Chinese tech too...bigger tailwinds compared to the US...Baba, Tencent. Valuations are reasonable 600-700+ billion market cap. They will follow FB soon in the 1 trillion companies

Buy companies that have optionality - trait a company has of the ability to evolve and find entirely new ways to grow

Yinson has undergone several transformation in the past...from transport to top FPSO player in the world...and now they are in the phase of transitioning into a RE and technology play

Trust the management proven record and capability to position themselves for new growth

Total PBT = 92mil (77% yoy)

of which,
Manufacturing - 15mil (quite in line)
Plantation - 23mil (in line with its average, Malaysian plantation remain a loss due to young age profile)
Bulking - 43mil (quite in line)
Food - 13mil (slightly below)

Overall results consider good - 62mil net profit. Cash flows was amazing - FCF a whopping 116mil

Net cash now 231mil (about 42% of market cap)

Dividend declared 12sen was above my 10sen expectations

Excluding net cash, the valuation is crazy cheap at low single digit PER. NTA 2.92 backed by solid cash.

My view remain the same, best exit strategy is to privatize this company.

When CPO at its all time peak, of course you have to overpay if one needs to make any successful acquisition.

On board! I love Family Mart so much!

Shipping is a high uncertainty industry as the rates are highly cyclical. You have to understand the basic dynamics first.

It takes 3-4 years to build a ship. When rates are high, companies rush to build ships. By the time the ships are build, all these ships get delivered at the same time and those rates collapse. Companies have no choice but to send their ships for scrap to earn some money. So the size of the fleet goes down at the time when the rates are low. And as the fleet size goes down it sets up the conditions for the rates to go up.

And then when the capacity goes down, and the rates goes up, you cannot bring in capacity as it takes 3 years to build the ship.

So the only thing that can happen is for the price to go exponential.

Now that prices are trending up. We also know that supply is limited as new ships would only arrive 3 years in the future. What about the demand side?

1) Global economies are in the midst of re-opening, on track for a V-shaped recovery
2) Unleash of pent-up demand to further boast for demand for commodities
3) Massive massive infrastructure stimulus by the economic powerhouse, China and US, further boost the demand for commodities. we are talking about more than 2 trillion of stimulus here by both countries

Limited supply coupled with explosive demand. What do you think is in play here?

comparison between Kobay & SAM

https://klse.i3investor.com/blogs/icon8888/2020-03-05-story-h1484718675-_Icon_Kobay_Technology_Growing_From_Strength_To_Strength.jsp

https://klse.i3investor.com/blogs/icon8888/2020-03-01-story-h1484655370-_Icon_Sam_Engineering_Excellent_Result_Share_Price_Can_Potentially_Doub.jsp

It's highly illiquid. shares tightly held by Temasek. otherwise, i think this company is worth at least 2 billion

Looks like market does not take well with the acquisition.

I can buy AliBaba for less than 25x PE

Conservatively, we should be looking at average charter rates of USD20,000. Though very likely Q4 would see even higher rates, the unleash of pent-up demand as more economies re-open coupled with supply chain disruptions.

Increments from higher charter rates will translate into pure profit as their costs are largely fixed.

Investors should not mislead by looking at the Baltic Dry Index alone, as it comprises various classes of dry bulk carriers with different supply demand dynamics. You are right to highlight the impact of Capsize (about 40% weight) to the overall index decline.

I miss this one out. what a big miss!

Any party interested to takeover Kumpulan Fima? Privatization?

Peugeot in the bag now, as a 55% subsidiary

https://www.theedgemarkets.com/article/bcorp-divests-51-stake-berjaya-auto-alliance

BAuto said it had acquired an additional 35% stake in BAASB from BCorp for a cash consideration of RM4.58 million or at RM1.09 per BAASB share.

Following the acquisition, BAuto’s stake in BAASB has increased from 20% to 55% and BAASB is now a subsidiary of BAuto.

The company said the acquisition — funded entirely via internally-generated funds — represents an opportunity for BAuto to acquire a strategic controlling stake in BAASB which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitate the consolidation of BAASB’s results into the BAuto Group.

Brent crude at $71/bbl

Hedge your bets against i) rising inflationary pressures, ii) US dollar weakness (due to widening deficits and non-stop money printing. just take a look at Biden's budget proposal. the excess money supply is mind-blowing!)

AmInvest so bullish tp10.60 on my long term holding!

100% earnings growth on track. you will see.

Good results. Back to back quarterly profit of more than 130mil

Focus Lumber

Already broken $2,500

From JP Morgan:

Lotte Chemical Titan Overweight
Price Target (Dec-22): RM5.50
80%+ Potential upside at current levels, as we upgrade our FY21E/22E earnings by 2.5-3x;
Reiterate OW

Lotte Titan reported its best quarterly earnings since listing in 2017 with “recurring” earnings coming in at RM424 million vs JPM’s 1Q21 estimate of RM210 million, >100% better than expected. We expect a similarly strong 2Q21, but expect some normalization into 2H21 (from super-normal level spreads today). However, we do expect spreads to remain healthy into 2H21 & 2022 as we upgrade ‘22E PE/PP spreads to $600-675 per ton (vs $530-630 per ton earlier) vs $710-850 per ton currently, a $110-175 per ton discount to current spreads. We upgrade our FY21E/22E net earnings by ~2.5-3x as we raise our Dec-22 PT to RM5.5 (from RM4), for 84% potential upside.

Moreover, our price target implies 1x P/B multiple with ~70% of the company's current market cap in cash

Aluminium spot is hovering steady at 2,400 per tonne. Every 100/tonne rise will increase PMetal earnings by 13-20% annually. With capacity to expand by 40% in 2H 2021, everything falls nicely for record earnings easily >100% y-o-y. Forward PE is below 30x.

CIMB just revised the TP to 3.95. But this valuation does not include the cash set aside for the Indonesia petrochemical project which will add another 1.57 per share.

The spread for April and May has even widened vis-a-vis Q1 21. Though management has guided slightly lower Q2 profit err on conservatism due to lower sales volume.

If maintain as per current quarter. 1bil profit for the year is within reach?