Also, as the world largest manufacturer of condom (6 billion pieces/year) and only using 4 billion now, there is spare capacity to quickly capture any urgent jobs as well as flexibility to ease in new orders. And as most if not all capital expenditure already used to expand to 6 billion capacity, going forward, there will be lower start-up, testing (new equipment) costs, hence, margin should improve too.

Yes, Tan Sri has spent much money. Now why would he do that? Below maybe a clue.

Just read today that Malaysia is the 5th largest producer of natural rubbber (latex). Biggest is Thailand. And if one read the quarterly report, Karex had set-up a new company in Thailand (Sept 2016) that will be involved in pre-vulcanised latex. This may take about another 2 years to materialized, i.e. mid 2019. What is pre-vulcanised latex, the raw latex collected from the trees is processed with additives to make the latex conducive for the formation of whatever products (glove, condom, cathether, etc). Of course the type of additive is a trade secret to Karex. (Hence, Topglove will have to go through many iterations before getting it right)

Now Malaysia does not produce enough latex and have to import. Thus, Karex, by going up-stream would secure the latex to the specification it need. And save some money too. Hence in the near future (3 years), the profit margin should improve if all other factors remain the same.

Tan Sri Arshad just dumped in about RM 725,000 for 500,000 shares (assume bought at 1.45). He is the Chairman, and I am sure he gets inside info on the performance of the company, otherwise why dump in 725k. Say, keep at bank will give 15,000 at interest of 3%pa.

Tan Sri Ashad is the Chairman of Karex and has bought over 3 million shares since last year; 2+ million of the 3 million over the last 3 months along. Assuming average price of RM 1.5 per share, that will be RM 4.5 million, no smal change.

Normally, when directors (insider) buy, it means that they think the company is worth it as they have access to current results (i.e. revenue data, profit margin for year Q1,2018. Financial year is 30 June 2017; final quarter 2017 should be announced soon).

The other directors have not been buying because I believe it would trigger a manadatory general offer as they are already controlling 31.8%

Good write-up and cover all the important issues, especially the electric car part.

The crack spread would stay high for the coming 6 to 9 months as now is summer time in the northern hemisphere and it is peak season for holidaying and thus use of transportation, especially land. Yes, sibeh heng....

KClow, please explain why it is going to RM 20 in 3 months?

The profit margin is sensitive to oil price. Should the price of oil return to over USD60, the profit margin (nett) would be back below 10%.

A good estimation of revenue growth. But of course there are many other factors that can make the estimated revenue higher or lower. "It is good to be roughly right than precisely wrong" John Maynard Keynes

Youngblood29us, appreciate if you will elaborate what or how aggregator work.... thank you very much.

De-tariff will definitely hit some of the poorly run insurance companies hard, there will be consolidation in the insurance industry and this is where LPI being a strong company (as this article imply) will survive and thrive too.

Insurance will not go away as it is required most, if not, all the time for the management of financial risk in society.

Else, in your learned opinion, what industry would be worthy of investment other than insurance going forward? Looking forward to your sharing.

The (minimum) 15% discount to the TEAP for the conversion price is confirmed as page 4 of announcement said "shall". And it could be more, as it mentioned minimum and also the coupon rate 3.5% is also a minimum. So, both the discount and coupon rates can be more depending on the prevailing condition just prior to the announcement. Of course after announcement, the market can crash and the ICUL can be out of money.

But as a business, AEON Cr want to borrow money at about 3.5% to maybe not more than 4.5% (my guess). This is much lower than the 6.5% of the perpetuity (400m) or sukuk (400m) bonds of which AEON Cr only took (subscribed) 276m. So on worse case AEON Cr can still get 524m from this two bonds should the ICULs not go through. BUT I think, the ICUL make good business sense (lower interest compared to the bonds). So as shareholders, we should support and subscribe to grow the business (hence value thus higher share price). And if there is a market crash after the setting of the conversion price, buy more as it will be CHEAP SALE!!

There are a lot of implementation risks. However, if one take the current income of MyEg now and say in 5 years time, Philippine can generate about 30% of that and MyEg portion is 40%, it will amount to about RM30 million. Not small nor big but meaningful. If it can also carry out transaction acquisition (for money movement), this will be another revenue stream.. Future is certainly bright for next coming 10 years. Yes will keep and add when there is a retreat in price

Tyringtogetrich, I fully agree with you. EMS is free to businesses. I believe this is the back-end program (+support) that receive all the signals from the registered POS. Definitely lead to better enforcement and monitoring and will save guard customers as well as create a level playing field.

It is very different from KIDNAPPING or DRUG DEALING where they are definitely value destruction; destroying life and do not contribute to nation building one iota.

YiStock, I read in Credit Suisse report that the payment is once GST exceed prior year by 10% once donggle is installed.

Also, I think EMS (electronic monitoring system) is already running (i.e.30 million per year since 1/12/2014 for 6 years). It is only the installation of the donggle that has been delayed and this project is called MYGST in which MyEg only has a 40% share.

For information, there are about 2.2 million FW in Malaysia. 2.2mx38=83.6million (all MyEg). Now rehiring is estimated to be 1million (i may be wrong), so now total fw would be 3.2mx38=121.6million. And this 121.6 is not shared with anyone from 2018 onward until 2020.

The question is what happen when the concession expires on may 2020.

Yes there will be people interested in this business (good profit margin). But once one uses MyEg, one becomes familiar and captive. Any competing system must be that much better and user friendly etc. Also not wanting to compromise the Immigration database, number of access (of new player) would be minimize.

The real challenge would be automation in the manufacturing sector and industrial building system in the construction sector, the 2 most highly dependent on FW.

With this good profit margin comes liability to deport fw (MyEg cost) if document of fw are found wanting (i.e. MyEg did not do proper vetting, etc)

In fact, DNex only collect 51% of the RM30 per pax from main contractor Bukit Megah (BM). Before BM and another Iman together with MyEg were contracted to carry out the re-hiring project with BM only registering Myammar, Iman-indonesian and MyEg the rest. With the recent announcement of continuing the rehiring project to end 2017, all three contractors are allowed to register all and any illegal foreign worker for rehiring. Hence the previously free access by BM and Iman of MyEg back-end system was terminated and both BM and Iman have to do their own back-end system now. MyEg had a head start and register about 10x what BM and Iman together do. So this rehiring programme is actually a small business.

The renewal of foreign worker (FW) permit is the big business. And this is monopolized by MyEg under the concession that is extended to May 2020. Imagine all illegal FW rehired will eventually need their permit renewed and all these renewal become MyEg business. There are the associated commission from insurance on FW medical earned by MyEg, eventually hostel, remittance and also reload of celcom sim card .......

skyrocket, please explain how e-card can contribute to MyEg revenue as it is free and only issued directly by the immigration offices as per immigration DG (http://www.freemalaysiatoday.com/category/nation/2017/01/25/immigration-new-e-card-for-rehiring-illegal-immigrants/).

Letter of intent obtained for Ca rong - vietnam fpso. Should be firm contract by April / May 2017.

Goodstock, appreciate if you would advice where you read the news about tie-up with motorcycle distributor association, thanks

Don't forget Aeon Credit Malaysia is also invested in Aeon Credit Philippine and Aeon Credit India. Now these two associates are in their infancy, when they grown up they will be like Aeon Credit Malaysia, by then should be more than RM20 ......

mafiaa18, you did not lost half of your money. There was a bonus issue of 1 for 2 that went ex on 28 Dec. That means that if you have 2 shares, you will be getting 1 share free of charge on 30 Dec 2016. So because of this bonus issue, the price of the share adjusted for the bonus shares that will be listed soon.

Normally the setting of the price IDR504 (normally at a discount to the market then) was done some weeks/months ago, just before the form/document for subscription was printed. Since then, the market can go up or down and in this particular case, it appeared to have appreciated. And if what you said IDR955 is correct, one stand to make a hefty return if one opt for the shares and then sale the share, that is, the price remains at IDR955 or thereabout when one get the niaga shares (maybe sometime in September 2016).

Is it worth to take the share rather then the cash? According to "limiklimik", it is better to take the share if you have more than 6000 shares of CIMB. I assume this is due to (higher) transaction cost (for foreign shares) should one choose to sale once one get the Niaga shares. But on a longer term (3 to 5 years), will CIMB Niaga be more valuable then what it is now? Looking at previous record, CIMB Niaga has traded at 1,500 IDR and touch 2,375 IDR on Dec 8 2010.

Today Stars reported that KWAP bought into F&N Nutrition S/B at PE of 22. So QL PE for FY 2017 is estimated to be 24 and FY 2018 to be 22.

sbsoo111, indeed this is a possibility, especially where both QL and FamilyMart is present.

From a business point of view, the FamilyMart should be complementary to current business. That is, it is additional outlets for QL's products. Secondly on logistic, QL already is a master as they are distributing their product to the many supermarkets, etc around the country. So maybe with the convenience store, the current distributing fleet maybe better utilize, thus lowering overall operating cost.

With adoption of IT (which I am sure they will, especially FamilyMart system), the inventory holding cost should be low and there should be minimal dead products.

Management of pilferage and cash flow should be the key focus and this could easily add to the overall margin.

Yes, return for this investment will only become visible in 5 to 10 years. Some figures:
Propose 300 stores in 5 years, each cost 250k, investment of 75 million.
Each store expected to have revenue of 800k, i.e. overall revenue of 240 million.
Say, margin of 5% only, give profit of 12 million, that is 16% return on investment, not bad.

Yes, this is a simple back of the envelop calculation, but think, out of the 240 million revenue, maybe about 40% (i.e. 96 million) of this goes directly back to QL for eggs, fish products, etc. This is about 3% of overall QL revenue. Now, when they hit 1000 stores, that would contribute about 320 million, no small change this.

Of course, one could argue that this may cannibalize it's traditional market, a bit yes. The targeted market is different from traditional supermarkets. Execution risk is there.

My family hold QL shares and will continue to hold.

Can they do it like it 3 months????? If not then this might be a MOAT, i.e. competitor cannot just simply enter because of change in PM / Federal Government ......

Anyone can give some advice how fast any company or companies align to Pakatan or DAP or opposition or aligned to anti Najib replaces MyEg in all the government contracts that they currently performing. Mind you they will need to re-write the computer code, etc etc .....

Steady all. MyEg has entered into the e-payment market. This market is big. A chance to accumulate.

Took loan from Public Bank and Tan Sri Thong never talked to me about terms and conditions of the loan. Come on there are system in place for continuity. Should not fret...

watch out for the RM 800m (private?) placement, will have an impact on the dividend yield.