@sardin - any idea where FPI?s revenue growth is coming from? What is it an OEM for?

https://www.bloomberg.com/news/articles/2022-02-28/malaysia-s-cimb-is-said-to-incur-losses-from-payments-glitch

@lionel messi - why do you say “good riddance”? Also, are you saying the problem with Bursa is of its own making? Kindly clarify.

I still wonder: who buys 2 million warrants?

What kind of lame duck prediction is this? To me the two biggest factors are:

1) tightening monetary policy, which is likely have a negative effect; and
2) looming election, likely held in mid-2023, which is likely to have a positive effect.

On balance, however, I am optimistic about KLSE performance in 2022.

Statements like, "effective from Jan 1, 2022 until further notice", makes a mockery of the whole process. It means the decision is not based on merit but on politics. Given how unpopular the current government is, I doubt there would be any decision on this until well after the next GE. If so, what is the point of calling a scheme 'incentive-based'? Might as well call it politician-based lalaland scheme. Malaysia is suffering from serious lack of accountability.

@prudentinvestor - why do you say the share price is "is now poised for a sharp rebound"?

This is how I see the stock: Eight years ago, when Tenaga was selling at RM9.00, the TTM earnings were RM0.95 per share. Today, it is RM0.69. Unless this fact changes for the better, any rise in the share price may not be sustained.

With the current TTM earnings, and a PER of 10.7, the stock appears to be fairly priced. If the next Q earnings were to reach RM0.10, as suggested by @JKing, the TP at the same PER would be RM4.03.

@ǷearlꙌhite first wrote about SERBADK about six months ago, on June 8, 2021. Since then, he has written around 1,400 posts, all about SERBADK, and nothing else. Relentless.

A Full disclosure: I no longer hold any Harta or glove stocks. Sold out a few days back. (See my last post in this forum on Dec 6.) So, my views could be biased.

In the latest quarterly result, Top glove reported an EPS of 2.32, which is 65% lower than the previous quarterly EPS of 7.59. While the drop is steep, it is not as steep as the 72% drop, from 25.44, recorded three months ago.

Assuming the company maintains its current EPS, the TP would be RM1.58 (at PER of 17). However, I believe, that is the most optimistic scenario. I say so because the operating margin, despite dropping considerably, is still decent at 16.2%. Prior to COVID-19, the company's Operating Margin was around 11.5%. If we take that as the steady state, along with a Net Margin of, say, 10%, then the TP, at the same 17 PER, will be RM 1.23.

I don't think Harta is in the same boat. (Based on my reading of Harta's quarterly performance over the last few quarters.) Nonetheless, Top Glove will likely be a drag on Harta for a while longer.

Dutch Lady's last Qtr results are certainly encouraging. However, I think it is still too early to say if the company has turned the bend. While the Q-on-Q results are good, the operating margins are still low compared to 2016. This is the most critical factor, to me.

Does anyone here know what the company is doing to improve its margins?

@claptonisking - Sorry, if I weren't clear. I have a position in CIMB. (Bought into it following the March '20 crash.) Right now, I am on hold, but DRIP investing.

@Alex Zai - The TP (based on current TTM earnings and 12 PER) is RM8.33. However, I believe, the analysts who cover Tenaga are probably very optimistic about RP3, which is expected to start in Jan 1, 2022. If the tariff were revised upwards, then the company's earnings may edge upwards, giving rise to a more optimistic TP.

Given Harta's impressive financial strength and profitability, I started taking a position in the stock as it moved south of RM6.00, and like all of us here, I was terribly excited when it shot up from RM5.00 to RM7.00. However, after seeing its uncertain movement over the last few days, I've come to believe the company is too tightly coupled with COVID-19, and not with its fundamentals. That's not a good, and not something I signed-up for.

In the long-run, I am confident (given its solid management team) Harta will emerge on top, perhaps even above Top Glove, but the immediate future doesn't look that promising to me. Too many also-rans have joined the fray, and it may take some time before these concerns go under or bought over. I could be completely wrong, but that's how I feel.

When valuing banks, I consider only its tangible book value, and how the price compares to it. In the case of CIMB, the tangible book value, at RM4.9, remains the same before and after the write-off.

So, CIMB currently priced at RM5.16, is selling at a slight premium (based on book value methodology). However, historically, it appears like a bargain to me.

If we add the goodwill impairment of RM1.22 bil to net income, the TTM earnings rises to RM0.49, and @12.7 PER, that translates to a TP of RM6.22. Not a bad situation, I think.

@MM78 - While the TTM earnings of BAB is encouraging, the company remains saddled with a huge debt, with an interest coverage of only 2.4.

If we used the TTM earnings and TNB's usual PE of 12, the TP is RM 8.33. So, the share could potentially drop quite a bit. The culprit here is the high debt load -- which has gone up by c.250% between 2016 and 2020. Anyone knows what was it for? If investments, any idea when it would show as increased revenue or earnings? Tks.

I started buying into the stock when it was trading at RM1.x. It is certainly one of the better stocks in my portfolio. I particularly like its rather generous dividend policy. But I sold out (if not mistaken) in 2017, when the price got ahead of its valuation, but took a position again just after the COVID crash. Let's see.

@Newbie0205 - If you are only now thinking of buying into banking stocks, I would suggest you look at RHB and ABMB. Both, in my opinion, are selling at a discount compared to their respective book values. Public Bank is relatively expensive. But, if you are determined to buy Public, I don't think the current price is unreasonable -- at least based on analyst reports released recently.

@supersinginvestor - For banks, I believe, asset-based valuation methods are the best. Now, if we compare the tangible book value of RHB and Maybank, it is RM 5.95 for the former, and RM6.6 for the latter. In that sense, I believe RHB is undervalued compared to Maybank. But then, given Maybank's dominant position in the Malaysian banking landscape, I suppose investors feel Maybank (average PER 12.5) is a safer bet than RHB (average PER 10.5).

Good Q for ARREIT. An EPS of 1.71 cents is quite reassuring. Hope the BOD goes back to redistributing income every quarter, as was the practice before the pandemic.

@Sardin - I really hope you are right. With its rolling 4-quarter EPS at RM0.306, my current TP for the stock is RM2.44 @ PER of 8.

@Sardin - The drop in revenue and profit is quite drastic. We have to go all the way back to 2011 to see a similar performance from Liihen, when its stock was trading around RM1.00. I have been holding Liihen for a while now; sold a large portion of it when it neared RM4.00. But, it has been an awful year for Liihen, looks like.

Thanks, Bang Miskin. Saw this: https://www.cnbc.com/2021/11/26/stock-futures-open-to-close-market-news.html

There is a massive 10 - 15% jump in the glove counters today. Any idea what triggered the jump?

@Sardin - Thanks for the information. Looking at the steep decline in revenue, I was apprehensive about the future of the stock.

@freedomfund - if you were a value investor, you'd have bought whenever the price dipped to near or below RM2.00. That's what I did. I first bought ICAP in 2010, when it was trading at around RM2.10. I also bought a couple of months ago when it was slightly over RM2.20. But my overall cost per share is near RM1.90, I think. Not great. But not bad, either.

Plus, many stocks in Bursa are undervalued today. And, given our predilection, we are gravitated towards such stocks and repelled by stocks that are selling at a premium.

Also, let's not forget that the KLCI index itself has not gone anywhere in the last 10 years!

Earlier today, TTB had a lot to say about share buy back. He said share buybacks aren't necessarily good; and to drive home his point, elaborated at length the share buyback strategy of Top Glove (which destroyed value) and Scottish Mortgage Investment Trust (which managed to narrow the price to nav gap only after buying back shares for over a decade).

I didn't find his arguments convincing, though. Partly because I think Top Glove case is more a study on when not to use the strategy. I wish he had considered another closed-end fund like Gabelli Dividend & Income Trust, which seeks to buy back its own shares whenever the nav-price gap exceeds a certain threshold.

Maybe that should be in the agenda next year -- i.e. a resolution to empower the fund managers to buyback shares whenever the discount exceeds, say, 20%.

That said, I am happy to receive the 20 cents per share dividend. If there were such a thing as free lunch, this is probably it. :-)

In 2020, when the market crashed, the very first stock I invested in was ICAP, mostly because: 1) ICAP has been sitting on cash for years (I am a long-time shareholder), and I thought TTB would've been sufficiently prepared to grab the wonderful companies at deep discount; and 2) I was busy running my own company, making it COVID and MCO proof and stuff, so just didn't have the time to do the needed research. Nonetheless, I did invest in a few -- which, over the course of the last one and a half years, seem to have done better (in terms of stock price appreciation) than ICAP. Strange.

Given the rather stellar Q3, I still wonder why the price dropped so precipitously a few days back, by over 15% in a couple of days!

I have been holding this stock since forever. It pays dividend without fail during good times and bad. Financially, it is debt-free, and its ROIC is > 20%. So, the 10% drop today is quite strange. Could be the ESOS. I don't see any negative news in cyberspace.

Bursa revenue is up, profit is above consensus, but TP is slashed. Funny.

Do we have a similar comparison for a corporate trading account? There are lots of info on individual trading accounts, the cost comparison, pros and cons, etc., but literally none (afaik) on corporate accounts.

I am uncomfortable about the one-off prosperity tax. As it is, there are lots of Malaysian companies that have Beneish M-Score that is too high, suggesting manipulation.

@Bang Miskin - I never invest more than 10% in a single stock. Typically, they are around 5%. As to Genting, I felt it has reached its pre-pandemic price. While it is certainly possible for Genting -- just like Air Asia (which I sold out after it crossed RM1.20) -- to turn around and become super profitable again, I am unnerved by their debt levels. As to Harta, I ask this question: would I buy more if its prices falls, say, 20%? Most likely I would, provided its fundamentals remain intact.

@bang miskin - Today I liquidated all my Genting and bought into Harta. I was hoping to sell Genting at a slightly higher price, but I feel safer sitting on Harta than on Genting today.

This stock is overpriced. While CTOS does control the lion share of the credit rating industry in Malaysia, and enjoys a moat of sorts, is it worth a PER of 66 -- even on a forward basis? We are told it'll potentially grow 46% annually. I find this to be rather fantastic. Consider Bursa. It is a monopoly, with a wide moat. Its PER, however, is only 16. If CTOS is priced like Bursa, it will be trading at around one fourth its current price.

The online version costs RM540 per year. Not cheap, but useful, especially if you have over RM100k invested. I have subscribed to it twice in the last four years. Its alternative is equities tracker, which is around RM2,400 per year!

@Nepo - It's RM 3.93 now, just as you had suggested above. So, ICAP is now selling at 41.5% discount.

I first bought Icap shares in 2010, and kept on adding more every time the price dropped to around RM2 or less. Yesterday, I bought the shares for the first time at around RM2.30. Icap is now selling at 40% discount! I figured even if Icap were to return to its traditional discount rate of 20%, the price would rise to RM3.10.

As to TTB, I find his persistent anti-American vitriol and pro-China obsequiousness tiresome.

Why is the price sliding down continuously? Is it the turnover, or something else entirely? The analyst reports are glowing, with TP north of RM40!

AFAIK, it is TDM's people who have been consistently blaming DAP, and LGE in particular, for not being able to deliver the goodies to the Malay community.