NTA per share is about RM1.95. Company has a net cash of about RM450 million which is about RM1.1 per share.

2 Inv and Tan L C
Magni tech has 2 main business segments, Garment and Packaging. In the garment segment, Magnitech is the long term mid and up market garment & apparel maker for world famous brand names including Nike. I think business volumes are related to world market demand for the mid to upper market brand name apparels. Magni tech is not making low end clothing wears.

Opensys 以 1,050 万令吉的价格在同一座办公大楼内以每单位最高价格购买了 8 个办公单位。这让股东们对商业意识、内涵甚至诚信都相当紧张。他们在进行公平交易吗？管理层的声誉受到威胁！

Opensys buying eight office units for RM10.5m in the same office tower at TOP price per unit. This makes shareholders quite nervous about the business sense, intension and even integrity. Are they arm length dealing ? Management's reputation is at risk !

Sharehoders should voiced out to RHB management about the very detrimental impact of DRP on both the short term and long term negative effect on the share price and request that the bank should just declare a smaller dividend if Bank need to conserve more cash.

To be fair to all shareholders particularly the vast no of small shareholders (who makes up more than 97% of the shreholders) and who are thus very important for a dynamic market, Banks should just give lower dividends if they want to conserve cash.

HL Bank and PBB are not giving DRP. After adjusting for bonus shares,
their long term share price are on uptrends.


speakup: DRP is toxic. Wonder why banks love it?

The large shareholders (example, EPF, KWSP) and fund managers could have asked for DRP's as they are in a position to sell millons of shares at highs pre to x-dividend dates, subscribed to millions of DRIP shares at very substantial discount, sell millions of these shares even at lower price, like now for RHB shares at RM5.3 as they subscribed at RM4.74, pushing the price lower, and these large share holders would buy back millions of shares at lower price, and wait for the next round. The small fishes, who are more than 97% of the shareholders, are the ultimate losers if they don't know how to protect themselves.

Multiple rounds of DRIP which lead to a faster increase in the no. of shares as compared to Company's profit growth is surely very harmful to the Company's long term share price. It is most detrimental to small share holders who may not want to subsribe to the DRIP due to small odd lot DRIP shares allocated to them.

I also bought RHB shares at about RM6.8 ten years ago. RHB's long term profit growth is about 4.43% pa but the total shares had been growing at about 6% pa. Total shares had been increasing at faster rates than profit growth by 1.57% pa. RHB long term share price had drifted downwards most likely due to faster rate of increase increase in no. of shares resulting from mulltiple DRP's. Share price had droped from RM6.8 to peak of about RM5.8 just before the most recent round RM0.25 dividend. The drop in the long term share price can be estimated from the following formula. RM6.8*[100%- (6%-4.43%) ] = RM6.0* [ 100% - 1.57%]^10 = RM6.8* (98.43%^10) = RM5.8 which was the peak price before the most recent round of RM0.25 dividend.

Ten years ago, I bought Maybank shares at around RM10. Company's net profit growth was 2.37% p.a whilst the NOSH increased by 3.75% p.a. over the 10-year period. Maybank long term share price had drfited downwards at minus 1.18% pa to peak around RM8.8 recently prior to the most recent round of div ( RM0.25) . Maybank long term average share price can be estimated by the formula RM10*(100%-1.18%)^10 = RM8.8 , which was the high price before the recent RM0.25 dividend.

For long term investors, I observed that for Banks which are giving DRP's which resulted in their total shares that increased at rates fater than the company's profit growth rate, their long term share prices were all trending downwards. This happen to BIMB ( the worst case out of the four banks), CIMB, RHB and Maybank (the best out of the above four banks, but Maybank long term share price has also been drifting downwards over the years). The impact of DRP is equivalent to making the open market pay the big shareholders additional dividends. The large share holders like EPF who subsribed tens of millions of DRP shares at a substantial below market share price would lock in profit. They can then buy back if they wish to at lower price as the share price drops lower in the short term which they can sell off in the next cycle of dividends and DRP.

Take EPF as example. It could quite likely disposed its 16+ million DRP shares acquired at 4.74/share at say average an average of 5.31/share. This is an immediate gain of 16m*(5.31-4.74)= 16m*0.57 =RM9.12 m. This is an additional gain of RM9.12m "dividend payment" to EPF from the open market.
If all the 40m DRP shares were disposed to lock in gain from "open market funded additional dividend payment" , it is without doubt very detrimental to the RHB share price.
BIMB is a much more severe case example of DRP's on its share price. Share holders must vote against DRP's to protect their interests!

DRP is very damaging to the share price both short term and long term.
I think RHB should not have DRP as an option as the dilution effect over time due to multiple DRP's is substantial. and damaging to the share's market value. If Company needs to retain more money, it should just simply declare a lower dividend so that the number of issued shares does not keep increasing. In the most recent DRP, RHB issued shares increased by about 40 million or about 1 % of total shares .
In the short term Large/substatntial shareholders, like EPF & KWAP, who subscribed to DRP at a a discounted price of RM4.74 are already disposing their DRP shares to lock in profit. EPF alone would have subscribed to about 16+ million DRP shares. The impact of selling millions of DRP shares is very damaging to the share value.
In the long run, if growth in company profit is not significantly faster than the increase in total shares due to DRP, the long term share price will trend downwards. I think this may be what is happening to RHB share price.

lxx9328: what were you talking about ?
Profit more or less flat for 4 yrs (2019 to 2022). ROE declined from 17.7% in 2019 to 13.8% in 2022.

FY NP (mln) NP to SH (mln) ROE
31.1w.2019 11.1 11.1 17.7%
31.12.2020 11.1 11.1 10.3%
31.12.2021 11.1 11.0 14.5%
31.12.2022 11.7 11.7 13.8%

Opensys earning had stayed more or less flat at about 11 mln for 4 years. since FY2019. Current dividend payout of ~53.4% gives a DY of some 3 - 4%. This could not support a significantly higher share price as earning growth is more or less stagnant. If management of OPENSYS can increase its dividend payout to about 90% of its annual earning, its share price could likely increase to ~RM0.62. Current average share price of ~RM0.36 and div payout of RM0.014 p.a. gives DY of ~ 3.9%. This is not attractive when it is compared to for example Maybank which has a DY of typically between 6.5% to 7%. If OPENSYS div payout could increase to RM0.024 p.a., OPENSYS average share price could increase to ~RM0.62 ( RM0.36*0.024/0.014 = RM0.62). OPENSYS is a net cash Company with cash position of about RM0.083 per share or about 25% of its market cap.

Go Go Holland

Why2TellMeWhy &
lxx9328
Stock: [OPENSYS]: OPENSYS (M) BHD
3 weeks ago | Report Abuse
hehe... collect collect 375

The exercise price of the Warrants will be adjusted downwards from RM1.49 to RM1.42 per Warrant effective from 4 October 2022 pursuant to a fixed annual step-down of RM0.07 per year on each of the anniversary dates from the first issuance of the Warrants in accordance with the Deed Poll for Warrants dated 19 September 2017 ("Deed Poll"). The revised exercise price of RM1.42 per Warrant will be effective for a period of one year from 4 October 2022.The exercise price, at any time during the tenure of the Warrants, is further subject to adjustments in accordance with the provisions of the Deed Poll in the event of any alteration to the share capital of the Company. The Company had on 9 November 2020, adjusted the exercise price of the Warrants to RM1.56 pursuant to the renounceable rights issue of new ICPS.

The exercise price of Sunway-WB will be adjusted downwards from RM1.49 to RM1.42 per Warrant effective from 4 October 2022 pursuant to a fixed annual step-down of RM0.07 per year on each of the anniversary dates from the first issuance of the Warrants in accordance with the Deed Poll for Warrants dated 19 September 2017 ("Deed Poll"). The revised exercise price of RM1.42 per Warrant will be effective for a period of one year from 4 October 2022.The exercise price of WB will be further adjusted downwards from RM1.42 to RM1.35per Warrant effective from 4 October 2023.

The exercise price of the Warrants will be adjusted downwards from RM1.49 to RM1.42 per Warrant effective from 4 October 2022 pursuant to a fixed annual step-down of RM0.07 per year on each of the anniversary dates from the first issuance of the Warrants in accordance with the Deed Poll for Warrants dated 19 September 2017 ("Deed Poll"). The revised exercise price of RM1.49 per Warrant will be effective for a period of one year from 4 October 2022. The exercise price of the Warrants will be further adjusted downwards from RM1.42 to RM1.35per Warrant effective from 4 October 2023. The exercise price, at any time during the tenure of the Warrants, is subject to further adjustments in accordance with the provisions of the Deed Poll in the event of any alteration to the share capital of the Company.

Management revealed that Company curently has 3920 staff compare to 3320 in June, an increase of 18%.

Dyson is discontinuing service provided by ATAIM (June 2022).
JABCO Filter is a separate company. Although it may have common shareholders as ATAIM. its contract service to Dyson (if any) should not be affected because of their common shareholders.

Filters for Disposable Surgical Masks

MTAG converting services for ATAIM which are linked to Dyson is about RM8m out of MTAG revenue of RM190m (2019) or about 4.2% only.

According to Jaw Place Research, JABCO Filter is the biggest customer of MTAG in the business segment of Mesh Filter Converting . However, JABCO is unlikely supplying to Dyson.This is because the business services & activities provided by JABCO (see Jabco website) are as described below. JABCO is mainly supporting the Health Care Industry in area of PPE (personal protection equipments).

JABCO's business services and activities): "To Carry On Business Of And To Act As Manufacturer,Marketers,Importers,Exporters,Retailers,Buyers,Sellers,Distributors Of And Dealers In Disposable Surgical Masks And Medical Devices,Lab Apparels,Wipes And In All Kind Of Descriptions For Diagnostic Centers,Hospitals,Nursing Homes,Laboratories Pharmacies And Any Other Health Care, Life Cares,Centers"

Target to secure another 2 to 3 new terminal operation management contracts in 2022 in Perak/other states. This is asset light (low Capex outlay) and can bring in revenue within about 6 months from signing contracts.

Interview with PTRANS CEO & team 8-9pm today (17/11/2021). Rakuten Trade,
Revenue growth prospects from the existing terminals.
1. PTRAN has partnership with 2 logistic & distribution companies (e-commerce related) at Meru Raya & Kampar Putra Sentral started in Sept 2021 has a revenue contribution of 2.5-3.0 m/month which may grow further depending on revenue growth of the logistic business. This implies that in Q4 2021, the increase in revenue from logistic partnership alone could be some 5.0-6.0m (3 months instead of just month of Sept) above that of Q3 2021 (35.2 m) which could amount to 14 - 17% increase above Q3 revenue.
2. Current average rental rates per unit area are significantly (30-50%) below the rental rates in comparable commercial area due to MCO . Rental rates and rental take-up both are expected to improve with ending of MCO and increase in people footprints through the terminals.

update on litigation in Q4 2021 report

"(i) EMGS (cont’d)
On 17 December 2020, the Kuala Lumpur High Court (“High Court”) struck out the action by EMGS against the Company and 3 others in KL High Court Civil Suit No. WA-22NCVC-88-02/2020 (“Striking Out Decision”). The action against the Company was struck out on the Judge’s own motion. In his brief oral grounds, the Judge stated that the Statement of Claim was defective, that the action was time barred and that EMGS did not have locus standi to bring the action.
On the 12 January 2021 EMGS filed Notice of Appeal against the Striking Out Decision. Scicom has, with the leave of the Court of Appeal applied to stay the Arbitration Decision Appeal pending the outcome of the Striking Out Decision appeal.
The hearing date for the Striking Out Decision appeal was adjourned on 9th August 2021 and has been relisted for 3rd March 2022. The Arbitration Decision Appeal at the Court of Appeal is adjourned for a Case Management hearing date after the Striking Out Decision appeal."

"(ii) Informatics International Limited
On 29th November 2019, the Company was served with an Application for an Interim Injunction against the Company and its wholly-owned subsidiary namely Scicom Lanka (Pvt) Ltd (“SLPL”) along with six (6) employees of SLPL ......... There is no monetary claim sought in this action.
The Company has appointed Counsel in Sri Lanka to represent its interests and that of its employees. The Company has sought and obtained legal advice that the Application for the Interim Injunction filed by IIL is frivolous and without merit. The Application for the Interim Injunction has no material financial or operational implications to the Company./"

SongJoseph.

It is usually complex to make business profit forecast but for SCICOM, profit is directly linked to the number of employees they provide in BPO services.

SCICOM principal business activities are the provision of customer contact centre services within the Business Process Outsourcing (‘BPO’) space, which offers multi-lingual, multi-channel customer care, technical support help desk, consultative sales and associated fulfilment. Over 99% of the revenues comes from BPO.

Revenue is recognised when the outsourcing services are delivered according to the terms of the respective contracts with customers which should be similar from year to year.

For forecast purpose, I think it is reasonable to assume similarity base on the the past two years in
1) the BPO services SCICOM are serving
2) average BPO service contract rates
3) average BPO service volume handled per employee
When above are similar from year to year, the revenue per employee would be similar.
When the overhead and tax rates are similar, the net profit per employee would also be similar.

Year Employee Revenue per employee Net profit per employee
2020 2338 RM77558 RM9432
2021 2800 RM78284 RM9221

For estimation of FY2022 (June 2022), I assume that there are 3400 employees and the average revenue and profit per employee from FY2020 & 2021 can be used.

FY2022 revenue and net profit are therefore estimated to be RM265m and RM31.7m respectively. Profit margin is around 12% which is in between that of FY2020 (12.2%) and FY2021 (11.9%).

Base on FY2020 annual report, Scicom had about 2338 employees and reported net profit was RM22.05m. This means each employee contributed an average of RM9432 net profit per annum for the Company. The bulk of Scisom income is from BPO services.
If the latest employee count of about 3400 is correct, investor can expect Scicom net profit for current FY2022 to be about RM32m (3400*RM9432). This gives EPS of about 9 cents in FY2022. So investors can expect quarterly dividend of 2 cents. The growth in profit from RM25.8m in FY2021 to RM32m FY2022 would be about 24%.

30.06.21 Financial Report
Cash & Bank Balances 9.059m
Trade Payables & liabilities -27.090m
Tax payables -1.284m

Company is likely facing serious operating cash flow problems!!

INTANGIBLE ASSETS had increased by 58.115m to 99.079m (30.06.2021) from 40.964m (30.06.2020). This means the Company had suffered further losses of its tangible assets amounting to 58.115m in the last financial year !!

Don't think NAPS is relevant in market share price. Future growth rate, profit margins, return of shareholder equity, debt to equity, .... are important. If net asset is high but ROE is low, it is no good.
Nestle's NTA is less than RM3.0 but its share price is RM133. The ROE is about 100%. i.e. for every dollar of share holders' money, the Company is making a dollar per annum.

Since listing in 2016, PTRANS net profit has increased every year from 21.6m in 2016 to 53.7m in 2021 (analysts' estimate), which is 2.5 times higher than 2016. This is a compound growth in net profit of about 20% per annum. Company fundamentals has improved substantially since listing in 2016
- good future growth prospects (increase in the number of transport terminals under management and 2 are in the pipeline to be bulit)
- profit margin improved from 24%(2016) 38%(2021)
- Dividend payout from 19% (2016) to 38% (2021)
- net asset per share from RM0.23 (2016) to RM0.76 (2021)
- Debt to equity has decreased from 93% just before listing to 43%.

Share price was between RM0.46 (lowest) and RM0.80 in 2016 - 2017(corrected for the latest number of issued shares). If the same PE range is assumed for valuation, PTRANS should be trading at RM1.15 (0.46*2.5) to RM2.0(0.8*2.5).

Base on the above, the share should be worth at least RM 1.0 which will still gives a dividend yoeld of 3.2% p.a. (note: analysts' TP is RM1.15).

Please refer to Section 4.3 (c) of "GUIDANCE FOR DIRECTORS DEALINGS IN SECURITIES" issued by Bursa Malaysia. Directors are exempted from disclosures on the the conversion of convertible securities. PA are convertible securities.


Exemptions and Subsequent Dealings
[Paragraphs 14.06 and 14.07 of the MMLR]
The categories of dealings that are exempted from the restrictions are:-
(a) the acceptance or exercise of options or rights under an employee share or
share option scheme;
(b) the exercise of warrants;
(c) the conversion of convertible securities;
(d) the acceptance of entitlements under an issue or offer of securities where
such issue or offer is made available to all holders of a public listed
company's securities (including Bursa Malaysia) or to all holders of a relevant
class of its securities, on the same terms;
(e) the undertaking to accept, or the acceptance of a take-over offer; and
(f) the undertaking to accept, or acceptance of securities as part of a merger by
way of a scheme of arrangement.
Subsequent dealings in securities obtained as a result of the above mentioned
exemption, are not exempted from the restriction.

https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/assets/5bb559ce5f36ca0c3028d488/Guidance_to_Directors_on_Dealings_in_Securities.pdf

I think the most likely underlying reason is that the Company is running out of cash to stay afloat to operate. Banks are probably not willing to lend out more money after analysing the prospects of the Company and its financial reports. Directors have no choice but to pump in money through their proxies. Anyway they probably have made tons of money from selling PA's at 0.020 - 0.045 earlier through their proxies.
Even if they sell some % of the PA they own at only 0.015 (probably through proxies), they would be able to make a handsome profit of 50% as PA was issued at 0.01.

MTAG has zero debt since 5 years ago i.e. before its Bursa listing. It has plenty of net cash.
1. Cash and short term investments 130.8m

Payables and receivables are
2.Receivables 47m
3. Payables and other liabilities - 25 m

Adding up 1, 2 and 3 above , Company is in a net cash position of about RM153m. Divide by 681.6m issued shares, it has net cash per share of RM0.225. Even allowing for planned factory expansion plan as stated in its listing plan, the Company is probably still keeping too much cash.

I think that is why the Company can afford to give out generous dividends.

Reference to swimwithsharkss comment above.
1) Please see my earlier comment..... "Even if you are not trained in accounting, IF YOU CARE TO READ MORE CAREFULLY the FINANCIAL REPORTS of AGES it is not that difficult to spot some RED flags.... "

2) Spotting any "incorrect" financial reporting is the serious job of a qualified Company appointed External Auditor. As far as I know, AGES June 2020 FY reported had not been audited and finalised. We are now July 2021.
2.1 there was an earlier but unconfirmed market talk that AGES had appointed an external auditor in April 2020 but that auditor had choose to resign in August 2020, two weeks prior to AGES releasing its Q4 2020 (30 June 2020 ) financial results.
2.2 AGES confirmed external auditor Messrs. Jamal, Amin & Partners ( could be its second external auditor appointed after August 2020 ?) had resigned in March 2021. This was announced to Bursa Malaysia on 24 March 2021. Reason for its resignation was due to Jamal, Amin & Partners had been sanctioned by SC/ Bursa Malaysia's Audit Oversight Board on 17 March 2021 which prohibited the Firm from auditing any public interest entity or schedule fund for twelve months pursuant to Section 31Z(2) of the Securities Commission Malaysia Act 1993.

Although we would not know the precise reasons, in simple layman terms, it probably implied that this external auditor employed by AGES might have been found by SC's Audit Oversight Board to have breach proper auditing procedures in some other company and therefore have been barred from carrying auditing in public listed Companies for a year.
Let us pose this question. If I own a Company and I could have fishy or messy account, would I look for a reputable auditor like KPMG in Serba Dinamk's case or would I find one who can fulfil your fit-for-your-purpose requirement? I think you are smart enough to join the dots in between and I cannot say more.

3) AGES appointed a new CEO, MR KEE YONG CHIN in April 2020. He resigned on 31 Dec 2020. Let me pose this question. The Company I decided to join and headed as CEO for the last 8 months had been able to turn around and performed exceptionally well qurter after quarter, I must be very proud to be part of it. Would I want to resign and get out of the way if there were not “things” I could not live with? As far as I know, AGES had not engage another CEO.
Let us just pose this question. Most investors would agree that the CEO is an extremely important position in a listed Company who can critically influence the performance of a Company. To-date, I am not aware that AGES had appointed a replacement CEO. How did the Company function ?

Perhaps, some investor may say don't worry about CEO lah. Rain or shine AGES can show beautiful quarterly financial report.


DISCLAIMER: The above discussion is intended as sharing of my personal view as exchange of ideas and opinions. There is no recommendation for Buy or Sell on any public listed listed stocks. Please do your own assessment and decision including consulting a qualified financial advisor before you invest or divest in any KLSE listed stocks.

https://www.theedgemarkets.com/article/ageson-sues-former-md-director-...

My understanding:
1) Prinsiptek Corp Bhd had its name changed to AGES Berhad after current management took over as major shareholders.
2) All debts, guarantees and other liabilities previously given by or incurred by Prinsiptek Corp Bhd will remain as debts/ liabilities and corporate guarantees of AGES Berhad. The same principles applies for the assets owned by and receivables due to by Prinsiptek Corp Bhd are assets and receivables inherited by AGES Berhad. You cannot run away from debts and liabilities by changing name. It is not possible to have the right to inherit the assets and receivables under Prinsiptek Corp Bhd but refuse to inherit the liabilities and payable.
3) All payments which were made under AGES Berhad would be under the purview and scutiny of the current management. Had there been wrongful claims and payment made by AGES berhad, the current management should have put a stop to it. In fact they are answerable to shareholders for negligence and lack of supervision for making payment to fraudulent claims.

4) Statement like "despite Prinsiptek no longer being either a subsidiary or even an associate of Ageson, the company continued to make payments to Maybank in order to discharge its obligation under the corporate guarantee" can be very misleading to the public and the small shareholders shifting the wrongs solely to other people. I would even consider it as a rather irresponsible statement to mislead investors.

5) Losses incurred by the subsidiaries under Prinsiptek Corp Bhd are losses that have to be accounted by AGES, period. The new management must not just keep balloon up the so called Goodwill. I think this is not allowed under financial accounting.

There were so many red flags in the financial reports since the new management took over. It is not difficult to begin to guess that it might just be a smoke screen that can easily confuse the public, and giving them false hope for potential mismangement.

https://www.theedgemarkets.com/article/ageson-sues-former-md-director-...

My understanding:
1) Prinsiptek Corp Bhd had its name changed to AGES Berhad after current management took over as major shareholders.
2) All debts, guarantees and other liabilities previously given by or incurred by Prinsiptek Corp Bhd will remain as debts/ liabilities and corporate guarantees of AGES Berhad. The same principles applies for the assets owned by and receivables due to by Prinsiptek Corp Bhd are assets and receivables inherited by AGES Berhad. You cannot run away from debts and liabilities by changing name. It is not possible to have the right to inherit the assets and receivables under Prinsiptek Corp Bhd but refuse to inherit the liabilities and payable.
3) All payments which were made under AGES Berhad would be under the purview and scutiny of the current management. Had there been wrongful claims and payment made by AGES berhad, the current management should have put a stop to it. In fact they are answerable to shareholders for negligence and lack of supervision for making payment to fraudulent claims.

4) Statement like "despite Prinsiptek no longer being either a subsidiary or even an associate of Ageson, the company continued to make payments to Maybank in order to discharge its obligation under the corporate guarantee" can be very misleading to the public and the small shareholders shifting the wrongs solely to other people. I would even consider it as a rather irresponsible statement to mislead investors.

5) Losses incurred by the subsidiaries under Prinsiptek Corp Bhd are losses that have to be accounted by AGES, period. The new management must not just keep balloon up the so called Goodwill. I think this is not allowed under financial accounting.

There were so many red flags in the financial reports since the new management took over. It is not difficult to begin to guess that it might just be a smoke screen that can easily confuse the public, and giving them false hope for potential mismangement.

When market is doubtful about the financial reports, it also will begin to doubt the integrity of the management team. There is only one way for the share price to go. Personally, I think I would have more faith in the financial reports of the previous management. At least they had reported little profit or losses in the few years before taken over by a new kid in town who had no experience in building & construction bushiness but magically could turn the Company into flying profits every quarter, more amazingly in the midst of MCO's. Even the most reputable and profitable Companies in this line of businesses have been struggling in the last two years.

Wake up to the reality ! Even if you are not trained in accounting, if you care to read more carefully the financial reports of AGES it is not that difficult to spot some RED flags. Easy to spot red flags include
1. Profits reported were non cash in nature
3. Without cash input from issuing PA and PA conversion, highly negative operating cash-flows
3. Quarter after quarter, there were suspicious and un-justifiable increase in Good Will, the amounts correspond roughly to the paper "profits" made.
4. There were no tax paid or allocated in the financial reports for the last 7 quarters. Does this not clearly tells us that the impressive "profits" reported quarter after quarter were just some sort of accounting "paper profits" not liable to tax.

To be polite, it is called "creative accounting". To be honest, I think it is very unfair to the investing public. It would be wise to put a big question mark on the integrity of reporting and the best course of action one could take.

When market is doubtful about the financial reports, it also will begin to doubt the integrity of the management team. There is only one way to go for the share price to go. Personally, I think I had more faith in the financial reports of the previous management. At least they reported very little profit or losses in the few years before taken over by the new kid in town who had no experience in building & construction bushiness but magically could turn the company in to flying profit every quarter. Even the most reputable and profitable Companies in this line of business have been struggling in the last two years.

Wake up to the reality ! Even if you are not trained in accounting, if you care to read more carefully the financial reports of AGES it is not that difficult to spot some RED flags. Easy to spot red flags include
1. Profits reported were non cash in nature
3. Without cash from PA and conversion, highly negative operating cash-flow
3. Quarter after quarter, there are suspicious un-justifiable increase in "Good Will, the amounts roughly equalled the "paper profit' made.
4. There were no tax paid or allocated in the financial reports for the last 7 quarters. This clear tells us that the impressive "profits" reported quarter after quarter were just some sort of accounting profits not liable to tax.

To be polite, it is called " creative accounting". To be honest, I think it is very unfair to the investing public. It would be wise to put a big question mark on the integrity of reporting and the best course of action you could take.

I think questionable accounting is the real issue for AGES and ARBB.

Megan, TRANSMILE , ...., are still fresh in memories for investors who lost a lot because of by fake accounting and financial reporting.
Now many investors of SERBA D and may be also KPOW.... suffered sever losses.


for AGES, anyone knows about the development on huge sand projects previously announced ?

Feb 25, 2021 6:00 PM | Report Abuse

Please see my earlier comments on AGES FY 2020 report. Extract below
" A major RED FLAG spotted in FY2020 Report is that the intangible assets (commonly known as "Good Will") had increased by a huge sum of RM32.7mln to RM40.96mln from only RM8.26mln in the previous year. I think the RM32.7m increase in intangible asset should be more correctly classified as actual financial Losses incurred and not parked into a non recoverable "Goodwill" as a Company intangible asset.
On Pages 71 &72 of FY2020 Report, the Company gave a vague 'gross-over ' explanation in Note 7 was made on the transfer of RM32.7m non recoverable assets into Goodwill on Consolidation.
Goodwill on consolidation in FY2020 (ending 30 June 2020)
At beginning of FY2020, it was RM8,260,819 and at end of the FY2020 (30June2020), it was 40,964,222."

In the latest Q2 2021 financial report, for the last 6 months (30 June to 31 Dec 2020), the Non Recoverable Assets had further ballooned up from 41m (as at 30June 2020) to 81.5m(as at 31 Dec 2020

It looks like the Management keep on creating more "paper profit" by classifying losses into non recoverable intangible assets !!

Some Highlights from attaining the online AGM this morning that I capture:
1. Semi-conductor sector: Although TSMC is the largest customer, about 30% of revenue in the sector, Company actually has more than 50 customers in the sector, and some of them may become more significant in future. So business is not as reliant on a single customers as many have thought.
2. Risk of losing key customer(s): Maturing new chips from conception to production stage is a prolonged process and takes up to two years. Our customers have involved us from the early stages and so it is not possible to be dropped out at the production stage. For a client to switch service provider, it would take a minimum of 8 months to more than 1 year and there is not certainty if the new service provider can deliver meaning that once we are engaged upfront, we are with them in the production stage.
3. Company has been improving on profit margin over the past years. There are still rooms for improving the current PBT of some 30 -35 % by further improving efficiencies and reducing wastage. Company has never cease and is always looking into and incorporating more efficient process and through higher automation.
4. Semi-conductor service sector is expected to see strong growth in the next 3 to 5 years, may be even longer. Oil and gas sector saw improvement in 2020 and getting better in 2021.
5. In Taiwan, Company has already acquired ready-built new factory spaces for capacity expansion which will more than double the existing production area. This is a cheaper option and is ready for use compare to land acquisition and construction. However, Company is also looking at own land acquisition for longer term expansion.
6. Company does not see any limitation in its capacity to meet the increasing customer demand in the near term or in the foreseeable future. Company is actively planning to set up factory space in the USA. However for China, there is no plan yet to set up factory space there as it can be served from Taiwan.
7. Increasing and maintaining talent resource pool is a key management focus. Increase automation helps in some cost reduction but it is not a solution for everything.
8. Current draught in Taiwan is not an issue. It has no impact on the Company operation todate and in future. Company has been able to reduce water consumption over the past years due to recycling.
9. Covic-19 has not impact the Company operation to-date. Company is very vigilant and careful on all aspects of health and safety that impact employees and customers.
10. Company is seeing multi years of business growth. Major shareholder is definitely not cashing out on Frontkn shares. Continuously working on business and profit growth and is every positive achieving new highs for many years ahead.

The actual closing share price on 26.04.21 was RM 5.12 before x on 27.04.2021
1 for 2 Bonus (5.12+5.12)/ (2+1 bonus share) = RM 3.41.
Bursa had pre-set a theoretical opening price at RM3.56 before trade commenced at 9 a.m. 27.04.2021.
Market, however, ignored this calculated theoretical price as there would be no conversion in the short to medium term. Following is how RM3.56 was calculated:

(5.12+5.12+4.0)/(2 + 1 Bonus share + 1 converted free warrant to mother share at RM4.0) = RM3.56

The warrants would not be exercised due to the high exercise price (RM4.0) set and the high premium for exercising the conversion to mother shares. Therefore there would not be share dilution due to conversion in the foreseeable future. Any conversion would likely happen towards the end of the 5-year maturity period 03.05.2026.

There should not be price adjustment for the free bonus warrant which has an exercise price of RM4.0, significantly higher than the pre X-date closing price of RM3.41 on 26.04.2021. However, the downward price adjustment since then could be due to
1) more cautious market sentiment on technology stocks following the strong run up in the past 1 year.
2) possibility of profit taking by insiders and people acting on their behalf who had bought FrontKn shares a couple of months before announcement of Bonus issues.

Yahoo finance had adjusted the historical prices before X-date of the bonus issue (stock split). This is the correct way to look at the historical prices. Otherwise it would be very misleading.

World semi-conductor sector is expected to see strong growth over at least the next 3 to 5 years due to 5G, IR 4.0, IOT, digitisation in numerous fronts....
At RM2.79, the annualiased PE = 48.
Market is forward looking into future earning. At projected growth of 35% per annum, at the current price RM2.79, the projected forward PE at end 2022 would only about 26.
Project PE end 2022 = 48/(1.35 x 1.35) = 26.3.

MR. The Market:
FRONTKN 1:2 Bonus X-date was on 27.04.2021. Closing price on 26.04.2021 was RM5.12. Adjusted price based on 26.04.2021 closing price would be (RM5.12+RM5.12)/(2+1) = RM3.41.
On 27.04.2021, share price opened at RM3.28 and closed at RM3.37; share was traded between day high RM 3.45 and day low RM3.25. Base on 12.05.21 closing at RM 2.79, share price had declined by about 18% from pre-x price of RM3.41. Regards.

Company only sold 305,900 treasury shares out of total 5,466,600 treasury shares. Average cost of treasury shares, bought before 2017, was about RM 0.2.
1) This is a good for raising money from the market without increasing no. of shares.
2) I don't think treasury shares would be entitled to Bonus issues. So it would have been better if Company sold all the traesury shares before Bonus x date.