The Co had announced that it is adequately insured for the building, and plant and equipment, and consequential loss, it mean :

Under consequential loss coverage you can insure for a determined period (6 to 18 or longer per industry specific) for protection of:

Loss in gross profit for no production due to disruption and no sales arising after fire (sales would depend on your historical sales and budgeted or forecast sales). Loss in gross profit (sales minus all direct cost)

Payment of salaries and wages on Co's payroll basis ( rational being if u are not manufacturing or doing business, u still need to maintain ur workforce while rebuilding ur building and getting plant ready)

The consequential loss is to protect and maintain the profit as if the Co is operating as like there is no fire. The the objective is to maintain similar profit even if u are not doing business. However the Co has to endeavour to restore back its operation at earliest possible time.

Even if u do rent a new premises, u are covered for the increase in cost of doing business. It is too details for me to elaborate.

The Co got to endeavour to take actions to minimise the claim. Example by sub contracting it out (provided the Contractor is a approved qualified vendor by Notion customers) in this case Notion is transferring it to other subsidiaries. The higher cost of sub con is also covered in the gross profit protection. Provided by the action of sub con does not result in Insurance Co paying more. If more Insurance Co will say u may as well do nothing.

Thus do not panic and throw your shares, just look at Comfort, Karyon, CCK and other Co that had fire and ultimately claim back the sum covered. The claim may take 6 to 9 months to resolve.

The Co could also use this claim amount to revamp its operation and production process to buy newer CNC and LATH machines to improve its efficiencies. To me it is a short term pain and long term gain.

Foundpac, please note that Andrew Su Meng Kit after receiving the 33 mil Foundpac shares vie ACME SKY Sdn Bhd from the Foundpac CFO and subsequently keep on disposing.

He could be the conduit for the IPO promotors to flush out the shares in the market. I tend to incline to think so.

For those who have loss money in Founcpac. There is a source of income for you be a Whistle Blower and report to income tax on how Andrew Su Meng Kit can afford to owned 33 mil Founpac shares, and get your reward from IRB to make up for your losses.

Jftech for FY 2017 ended 30 June, reported a turnover of RM24.7 million and a profit before tax of RM6.964 million and a profit after tax of RM 6.379 million. The EPS for the year was 5.06 Sen and the latest Q4 EPS was 1.72 Sen.
At current share price of RM2.06, it has a market capitalisation of RM 253 million. For a company having a net profit of RM6.379 and the market is valuing it at RM253 million. My opinion it is grossly overvalued. If you have a sober mind, would you buy such small Co, Jftech for RM253 million and wait 39.7 years to get back the amount you paid for your investment in the Co assuming there is no growth in net profit on the extreme pessimistic stand.
Ask yourself, is Jftech a world leader in its field of business (with no competitors around) with superior technology advancement or advancement in its field of business for market to give it a valuation of PE 39.7. Further below, I would compared it with FoundPac.
Will Warren Buffet or any prominent private like Navis Capital or The Blackstone Group or other re-owned international fund buy Jftech at this valuation? My answer is no for any astute investors who is worth his salt. Why pay so high for the future and it is not proven yet.
Owner and key directors had sold 4.055 million share ranging from 1.44 to 210 from 1 June to 6 Oct. See my list attached. If stakeholders are selling, it must reached their fair value. Why then should we hold
I have look at the list of substantial shareholders in the Annual Report for 2016 and 2017. There was no institution shareholder in 2016. However in 2017, the institutions shareholders were Kenanga Growth Fund (2 mil shares) and Philip Capital (610 shares). There are no other big name. I do not know both institution entry price. I can only said prior to 3 April, the share price was 88 Sen and below. Subsequently it went up all the way till now at 2.06 with frenzy goreng.
Comparing to FoundPac for FY 2017 ended 30 June, FPG reported a turnover of RM40.0 million (Jftechfast=RM24.7 million) and a profit before tax of RM13.0 million (Jftech =RM7.0 million) and a profit after tax of RM 10.22(Jftech =RM 6.379 million). FPG EPS for the year was 2.92 Sen (Jftech = 5.06 Sen) and FGPe latest Q4 EPS was 0.8 Sen (Jftech=1.72 Sen). Jftech figure in bracket.

I am not promoting FPgroup but just a comparison

It is also a thinly traded counter.

The 33 million shares owned by CFO Ong was initially transfer to ACME SKY Sdn Bhd (owned by Ong CH) and 2 days latter ACME SKY shareholder changed control to Andrew Su Meng Kit.

I believe Andrew Su is currently a senior management of TA Securities (IB), the IB that does the listing for Foundpac. Is the block of shares a payback for the listing or there for warehousing to goreng???

Maybe for those who lost money in Founpac can ask MACC to investigage ACME SKY owner for his source of wealth.

Andrew is a non Independend non Executive Director of ACME Holdings Berhad (ACME) a listed Co. ACME is a Penang listed property development Co. Is there any relationship of ACME Sky with ACME Holdings given the similarity in name. We do not know??? Maybe not at the moment.

Andrew was previously a Chief Executive Officer of of the defunct Rhythm Consolidated Berhad listed Co who went into PN17.

Andrew is also the Excutive director of Mextor Technolgy and recently redesignated to non independent and non executive. Mextor has some similar business with Founpac

Andrew Su is also a director of Asis Knight Berhad, a PN17 Co. Andrew is also a VP of TA Securities in IB Department .

What is up for the 33 mil shares in Foundpac or 8.9% of total shares now in Andrew coffer. I believe it is for goreng to push Foundpac. We will see the development to come

I have analysed the recent (from 8 Sept to 28 Sept) disposals by key shareholders (or promoters of the IPO) in total of 40 million shares.

Share price dropped after all the transactions see the attached Chart where shaded areas is the period of disposals by promoters and the price dropped after disposals. Few transactions of 26 million shares done thru the market and balance of
14 million shares was traded off market deals by DBT and price above market price as follows.

7 million was sold on 8 sept at 85 when the day market range from L80.5 to H 84.5
2 million was sold on 14 Sept at 85 when the day market range from L80 to H 81.5
5 million was sold on 26 Sept at 95 when the day market range from L87 to H 92.5

On 21 Sept Co announced (I) PROPOSED BONUS ISSUE; (II) PROPOSED ESTABLISHMENT OF AN EMPLOYEES' SHARE OPTION SCHEME; AND (III) PROPOSED SHARE BUY-BACK
The bonus issue done so fast after IPO is unusual and I think is more of to boost the share price for the third placement on 26 Sept at 95 Sen

I asked myself was the pricing to deliberate mislead the market on Company’s valuation and misguided all investor to believe its undervaluation? I think more likely so

Investors or Institutions buying block of shares generally expect and get a discount from market price and at most paid market price if going forward Co performance is expected to so good and promoters can convince investors.

Just note that at 85 Sen the forward PE is 26.5 and at 95 Sen the forward PE is 29.7. Any astute investor will not pay this price unless there is price adjustment behind without public knowledge.

Is the share price being coordinated and pushed up each time for the promotors to unload their shares in the last 3 weeks. Looks likely.

Well the placement could be transferred the blocks out for warehousing for operators to goreng the share. This theory may hold water.

Anyway I bought in betting on it to be goring and would cut if touches 80 Sen. My EP is 82 and buying more if got momentum.

Have to be careful as the share is overvalued. I buy for speculation

Company based on 2016 Annual Report has an advance of RM 279.6 mil as long term loan to Eastern Steel Sdn Bhd (its joint control investment) and another RM 247.3 mil sitting in current debtors. The 2 advances total RM527 mil.

There is no way Eastern Steel has paid a single sen given it is having going concern financial position. No provision or impairment of theses advance had been made at 31 July 2016 audited account. Worst still continue charging interest income of RM29 mil still being recognised

Question we need to ask is how much of both the advances had been impaired or need not impaire going forward if on liquidation it is not sufficiently back up by asset.

From Q4 17 report, based on my analysis, out of the long term advance of RM279 mil to Eastern Steel, as at 31 July balance o/s is RM 91 mil. Probably different of RM188 mil must had been impaired causing the share of losses of equity of investee company to ballon to RM 205.3 million loss (2016 loss was RM 99 mil) . Is the balance of RM 91 mil collectable???? We need to ask???

How about the current debtors of RM247.3 mil outstanding from Easter Steel from 31 July 2016 reported in the 2016 Annual Report. Has Hiaptek make provision for impairment???, I am sure non as I cannot see any impairment from Q4 2017 Report.

Thus there is total outstanding of RM 338 mil owing by Easter Steel still in doubt.

Worst still, as Hiaptek continue charging interest to eastern Steel for FY 2017 of RM 29 million (FY 2016 RM24.2 mil) as this income reduce the loss by RM 29 mil knowingly it cannot correct.

BE CAREFUL OF MORE IMPAIRMENT TO COME AFTER THE AUDIT FOR 2017

Maybe David Lim who wrote a coverage on Hiaptek can enlighthen us further

Good one Huiyi. Especially this son Singapore business is a rotten one . I also wonder any conflict of interest. I do not own any shares.

Wow, I have stirred it up. I do not hold any EG share and just want investors to be cautious. If you check the two key management members and shareholders did run a listed Co in SGX and had some issues with SGX that what I heard. i do not want Singapore Kia to screw us up.

Ask yourself what is a share buyback scheme? My little understanding, a share buyback scheme is to buy when the the share price is too cheap or undervalued. EG is selling its treasury shares at about 1 sen above its buyback price about 77 sen. If it is undervalued, Co should be buying more from the market and not selling. It does not make sense to sell. The only motivation is needing cash

In addition, the total receivables at 31 March of RM 308 mil is greater than Q3 sales of RM 285 mil.The RM 308 mil include other debtors and there is no breakdown of trade and other debtors. Other debtors cannot be material or significant percentage out of the RM 308 mil receivables. EG is dealing with export business where payment probably by LC or term of 30 to 60 days and also with MNC where credit term cannot be more than 90 days. The mounting debtors increasing every Q for last 3 quarters is another concern. Has the Co got collection problems?, or had customers reject EG products and refuse to pay. We do not know other than the management. Perhaps management reading this concern can clarified. .

I am writing on EG again. I have nothing against EG. But I opine its recent actions of selling treasury shares warrant some critial thinking on the Co's action. I have written on its excessive trade debtors greater than QTR sales based on march reporting.

Kindly note that Co can only sell treasury shares thru the market and the share cannot be sold for less thant the share buyback price.

16 Aug sold 30,000 shares (buy in price 78) for probably 78.5 to 79 as high for 16 Aug is 79 sen

17 Aug sold 114,400 shares (buy in price 77.48) for probably 77.5 to 78 as high for 17 Aug is 78 sen

18 Aug sold 139,600 shares (buy in price 76.2) for probably 77.to 78.5 as high for 17 Aug is 78 sen

Total number of shares sold back into the market 284,000. Assuming all sold at 78 sen. The amount of cash raised is RM221.5K

Does the EG need to sell the 284k treasury shares to raise RM221.5k? I am worry the Co is really strap of cash and its cash flow must be so bad to resort to this action.

What is its objective of treasury shares, the Co selling of its treasury shares need deeper analysis. Its right issue had been held back and share price heading south.

it is very unusual to have 2 right issues within 2 years???

Becareful Investors

My alarm was sounded on June 16 posting. Just that the printout of my write up was not aligned properly for reading.

If good intention of trying to save you from further loses is not appreciate. Nothing more to say Booyah. Only time will tell.

OTB is not god and he can also make mistake in his pick.

Be careful and protect ur investment

Concurred with CharlesT comment.

Using the Annual Report 2017, I have adjusted the profit after tax attributable to shareholder to arrive at actual operating profit and EPS. My rational the non recurring income cannot be used in valuation of the shares. The adjusted FY17 EPS is only 2.92 instead of 26.49 reported. The Q4 17 adjusted EPS was 3.95 instead of 14.85 reported. My conclusion is please cut it off even u are losing money. Note that Q4 report not audited and u would not know how reliable it is? Run and unload the shares. Protect your capital.

The management had mislead the market in the Q4 16 announcement without details of other income of RM8.7 mil in profit reported. Included in the other income is a profit on property disposal of investment properties of RM6.9 mil and other investment income RM500K and about RM1 mil other reversal of impairments not explained

ATTA Workings 0n Adjusted EPS after Adjustings for Exceptional Income and Expense
Q4 FY17 FY16
RM'000 RM'000 RM'000
Net Profit 11,457 18,582 (2,432)

Adjustments
Fair value adjustment - (308) -
Profit Investment Properties (6,872) (6,872) -
Other investment (534) 1,952 2,117

Adjusted Operating Net Profit 4,051 13,354 (315)

Reported EPS 14.85 24.10 (3.51)

Adjusted EPS 5.25 17.32 (0.45)

Valuation using PE 8 based on adjusted EPS 138.6 -

Projected EPS for FY 18, using Q4 x4 21.00

Using PE 8, Valuation based on projected EPS 168.0

Q4 FY17 FY16
RM'000 RM'000 RM'000

There were other non operating income reported 8,719 16,624 1272
which I do not expect it to recur

Impact of other income on reported EPS (11.30) (21.56)

Judge yourself whether ATTA is overvalued.Perhaps the Co can clarify on the other income

Becareful with your investment????

Sales for 1H is RM494.4M (2016 1H RM399M). The trade and other debtors at 31 Dec 2016 is RM308.1M ( 30 June 2016 RM273.2 M)

My analysis from 2016 Annual report trade debtors at 30 June 2016 was RM RM223M and other debtprs RM50M.) With a sales of RM712.6 million, the debtor turnover or credit period was 3.76 months or 114 days.

Similary in FY 2015 at 30 June 2016, trade debtors and other debtors amounted to RM 162.6M. The trade debtor at 30 June 2015 was RM144.4M. With a FY 2015 sales of RM636M, the debtors turnover or credit period was 2.72 months or 83 days.

In the Q2 announcement, 6 months sales to 31 Dec 2016 was RM494M. The debtors turnover would be 3.74 months or 113 days.

The Company is dealing with multinational and international trade credit period cannot be that long. something is fishy going on can somebody enlightened me. It looks like another Englotech that went bust in the making of jacking up dummy sales and went bust. Collections of Company is slowing down.