Mikromb is a net cash company with good management. It is expanding its export market and percentage of export sales has increased to 49% in FY18. The export sales volume is growing.

Mikromb's tax rate in Apr-Jun'18 quarter was as high as 70% due to deferred tax from previous quarters...
It also incurred forex loss in this quarter.
Otherwise, it's net profit would be higher QoQ, albeit still lower YoY.

Mike Kim,
I just read all your comments about Armada in the past and today, you know Armada very well and follow-up with its latest news closely.
Thanks for the sharing, pls continue your kind sharing ya :)

I think Armada is a good bet especially after the mega sales today.
All the analysts will come out report tomorrow, they probably will recommend Buy (due to oversold) and reduced the target price they previously set. Let's see what they will say tomorrow.

There are also ~RM118mil provision for doubtful debt and RM28mil forex loss in Q2. If exclude that, Armada's Q2 should register gain instead of loss. I do not see the doubtful debt provision/write-off explained in quarterly report or presentation slides. Management doesn't like to talk about the bad debt ?

Wow, dropped 16% liao, opportunity to pick up ??
Excluding the one-off impairment, the core profit is still positive.
The report said they paid compensation for Armada Kraken. How much didn't mention ? Is the compensation is due to delay in final acceptance of Armada Kraken ?
Can't wait to see analysts' report and revised target price.

I doubt the right issue is coming as what worried by other members in this forum. This is because capex is not much moving forward after the completion of Armada Olembendo and Armada Kraken, and I noticed free cash slow has turned positive since Q4 FY17. There should not be any cash call urgently. Having said that, it is hard to know, maybe Armada need stronger balance sheet to bid for higher value contracts (?)

Can buy now ? scratching my heads...

KYY one hand said he stopped disposing Jaks but another hand keeps disposing (see the company announcement).
Yes, Jaks' ownership on IPP increase when the construction is progressing. Forum member claims the profit is not real because it is not a real cash that Jaks received from the progress of construction but just the increase in the equity owned in IPP, that's why it is not "real".
Whether the Vietnam IPP can make money after its completion in 2020 is a doubt but not confirmed. Btw, take caution that the 10 years-cycle big bear may come before year 2020.

TheStar publishes the bullish news for Reach Energy.
The rising crude oil price and increasing production output have boosted Reach's earnings.
The oil production output will further increase by another 1000 bopd by end of 2018.

----------------------------------------------------------------------------------------------------------------------
KUALA LUMPUR: Shares in Reach Energy Bhd
are shooting higher in heavy trade after the company posted its first quarterly net profit since it took over full control of an oil ands gas field in Kazakhstan more than a year ago.

At 2.45pm, the stock was up 3 sen, or 12% to a four-month high of 28 sen.

The company said on Monday higher price of crude oil in the world market and increased production volume had boosted profits in the second quarter ended June 30.

The group reported a profit before tax of RM12.6mil and profit after tax of RM 4.6mil on revenue of RM67.7mil.

Reach Energy said average production in the second quarter 2018 was 2,900 barrels of oil per day (bopd), compared with 2,500 bopd in the same corresponding period last year.

It expects to add another 1,000 bopd in production by the end of the year.

Rising production is positive for Reach Energy, as the global benchmark Brent crude in London traded above US$76 a barrel compared with around US$50 a barrel a year ago.

Meanwhile, shares in another oil producer Hibiscus Petroleum Bhd
are also on the roll, surging 3 sen to RM1.10 with more than 34 million shares traded.

Read more at https://www.thestar.com.my/business/business-news/2018/08/28/reach-energy-shoots-higher/#3eLT8Wx4wMUCxDyB.99

The price is consolidating. It is good to see that, it is important not to move up too fast but let the price consolidates so that a stronger base can be built before moving further up. We want sustainability but not a few days show.

Slowly move up to my target price ya.

This quarter's lower performance was mainly due to the loss made in Air Cond sub-division resulted from cost overrun and margin compression, as well as the provisions made for receivables and slow moving stock for this division.
The Capital 21 is nearing completion and Variation Orders are potential to materialise, and hope this can again turn the Air Cond sub-division from red to black.

The revenue of the Group has been increasing, thanks to other divisions have been doing good in contract execution. The contract delays experienced by Environment and Plumbing sectors have eased and should see further improvement in subsequent quarters.
The PE multiple calculated with core EPS is merely 9x at 73sen per share. AWC deserves >10x PE multiple as given by analysts. Thus, i suppose any fall in price due to the relatively poorer performance in this quarter presents opportunity to collect.

As long as Jaks still carrying the Evolve Mall, it is a drag and Jaks can't do well.
The management wants to sell the Evolve Mall but cannot find buyer.
For a mall, if its occupancy rate is bad in first 2 years, the condition will only deteriorate in years to come. That is what I observe in my home town.

The way SAPNRG is coming down, it will be <30sen per share before end of this week.
This will means its market quoted price can be lower than right issue price @30sen. When that happens, it would be interesting to see how the CEO reacts.
If he revise the right issue price downwards, say to 20sen to 25sen, SAPNRG's price will drop further in tandem, until 0sen probably. Just kidding. But it really interesting to see how things turn out.

WoW, moved up so fast...
I prefer it moving up gradually lar. This kind of strong momentum is scary and sustainable or not..
Pls slow down pls slow down. I am happy with u but u look too scary now.
My tp is 40sen.

KYY lost in Jaks, trying very hard to earn back from LionInd, that's why he needs your money and promoted extra hard..but too bad, the quarterly earnings seems like not standing on his side.

In addition, Parkson reported loss. That will surely impact LionInd's earnings.

Guys, go and read SSteel and AnnJoo quarterly reports, u would know LionInd's Apr-Jun'18 earnings is likely bad lar...UNLESS there is any unexpected one-off gain.

EForce's gross profit margin is consistently at 60+% level and it is a net cash company. I suppose that's why it deserves high PE.
Its stock price was ~RM1.60 in beginning of year 2018, it has dropped 50+% YTD without any change in its fundamental.
I suppose its stock price would climb up gradually to close the gap.

WCT's debt is high due to its business nature, it owns many investment properties. It is the same as other concessions business which, for example, own highway. Their debt tends to be high too. However, this is not a worry as the investment properties can generate recurring income to WCT and the profit margin in this segment is very high.

Having said that, WCT management also reckon that their debt level does not meet their target, therefore, they have been focusing on de-gearing activities which include selling the idle land bank & etc. I do see their initiatives in reducing the debt level.

All stocks promoted by Uncle Koon doesn't end up well, just look at Jaks and LionInd.
Hope all can learn from recent experiences and not to fall into traps again in future.
I seldom see KYY promoted so heavily on one stock and came out so many promotion article in short time interval like in this LionInd's case. This just showed that his confidence is shaking and nervous and that's why need to shout louder.

All the 3 segments showed improved revenue in this quarter.
What impressed me more is the performance from its property investment and management segment, the commencement of Paradigm Mall in JB in end 2017 are contributing more and more to the earnings of this segment. The rental revenue will be consistent as people do not rent for one quarter and move out. Thus, I am expecting consistent recurring income from its concessions.

Besides, WCT management is doing their best in de-gearing initiatives to reduce the debt level.
At current price and core profit in past 4 quarters, WCT is selling <10x PE multiple which is undervalued for established construction, property dev and concessions company like WCT.

Both revenue and profit margin have improved. Even without the forex gain, Reach would have recorded a profitable quarter too, do not forget to add the portion from minority interest.

From the quarterly report, management gave the reasons for improved performance :
"Rev YoY increased 66% due to increase in production volume, higher crude oil price. The average production of Q2 FY18 has increased to 2,900bopd from 2,500 bopd in Q2 FY17".
"EBITDA YoY increased 1510% due to higher revenue and efficient cost control. Forex gain also contributed to higher profit in this quarter."

The increase in oil output and higher crude oil price are the main reasons for improved performance. The strengthen of USD will help too as Reach Energy sell oil in USD. The oil output will continue to increase in 2H2018 due to production commencement of North Kariman Field. We also know the crude oil price is strong and on increasing trend now. Oil price may increase further after the Iran sanction in Nov'18. USD is also strengthening. All these positive factors will propel the earnings of Reach Energy in subsequent quarters.

AnnJoo's poor earnings in this quarter was also impacted by forex loss and relatively higher effective rate, otherwise, the core EPS should be higher and comparable with Q2FY17, albeit it is still much lower than preceding quarter.
Well, poorer earnings QoQ was expected. Its stock price has plunged 49% since beginning of 2018, so I suppose all the negatives have factored into its current stock price.
The Apr-Jun'18 quarter was also impacted by Ramadan holidays and hence lower construction activities. We should see some improvement in Apr-July'18 quarter. This quarter could be the worst quarter for AnnJoo.

It's stock price should come further down tomorrow as people will react to today's result, but should not be gap down.

Great result :)
The earnings improved both YoY and QoQ.
At today's closing price, WCT's stock price is still down by 43% from RM1.62 per share in beginning of 2018. With this great result and improving sentiment, I suppose WCT's stock price should move upwards and close the gap from now onwards.

Earnings improved YoY and QoQ, good result !
It's closing price today is still 60% down from beginning of 2018, but EForce showed higher earnings both YoY and QoQ in this quarter. I suppose its stock price should be revised upwards to close the gap.

Reach turned green liao !
Reach has put in a lot of efforts in carrying out Intensive Well Workover campaign to optimise currently producing wells and to revitalise shut in well stock. It also simplifies distribution logistics to cut cost & etc since Reach management took over. I suppose we can start to see their efforts yielding fruits now.
The subsequent quarters should show improvement as its North Kariman Field is prepared for production of approximately 1,000 bopd in 2H 2018. As the oil price is stabilised at >USD70 pb and on increasing trend, Reach's potential is just becoming greater.

SooJinHou, well said and good comments.
Pride is the root of all evil. There is no wisdom in pride.

SooJinHou has said it well. I agreed with his points and comments.
If I were Jon, i would read the comments a few times, take it to heart and really reflect on them.
Pride is the root of all evil. There is no wisdom in pride.

LionInd, AnnJoo will also report lower QoQ earnings, so don't be surprised when the report comes out.
For Masteel, I suppose it will report much lower earnings QoQ because it will suffer high forex loss.

Lower earnings QoQ is expected long before the quarterly report comes out. It was due to lower average selling price and lower demand during Ramadan holidays. Many sources have revealed this info, nothing surprise about this Q's earnings.
We should look into July-Sept'18 quarter to find out local steel price 's movement in July-Sept'18 and its demand. From here, we can estimate the earning potential of SSteel in near future.

Good result !
I suppose its stock price can back to RM4 level soon :)

I have interesting questions, anyone who know the answers pls share.

I) If SAPNRG's stock price drop below 30sen (which is the right issue price), no one with right mind will pay 30sen to subscribe the right issue then, so does that mean the corporate exercise cannot carry on ?
ii) If SAPNRG's stock price drop to, say 35sen, which would be lower than the RCPS' fixed price of 41sen. I believe shareholder will then refuse to subscribe for the RCPS as the conversion ratio is 1 RCPS : 1 ordinary share. Can the shareholder choose to subscribe to right issue only and not the RCPS ?

Pls share. Thanks in advance.

KYY came out another Jaks article to promote Jaks liao. Be careful ya, this could be his tactic to push up price so that he can escape at higher price.

Many many export-oriented stocks will see higher EPS QoQ lah. This is mainly due to forex gain in Apr-Jun quarter vs forex loss in Jan-Mar quarter. The forex loss turns to forex gain can make quite a difference.

Calculation :
Core EPS in Q1 and Q2 were 5.92sen and 6.09sen.
If annualise, we get 24.02sen.
8x PE is 24.02 x 8 = RM1.92 per share.
10x PE is 24.02 x 10 = RM2.40 per share.

The earnings improved QoQ mainly due to forex gain in this quarter compared against forex loss in preceding quarter. This statement is also mentioned by management in quarterly report.

If exclude forex gain, the core EPS in this quarter is merely 6.09sen. The core EPS in preceding quarter without forex loss was 5.92sen. This means there is only a very small improvement QoQ if exclude forex gain/loss.

LiiHen's sales and revenue are good due to good consumer sentiment in US market. But its profit margin continued to face challenges from shortage of workers, and higher costs. I suppose the challenges will remain in subsequent quarters.

If given 8x to 10x PE multiple, the fair value for Liihen is RM1.92 to RM2.40 per share which is lower than current stock price at RM2.89 per share..

If market expects the coming earnings would be on par or higher than preceding quarter, then I suppose market will be disappointed and LionInd's stock price will plunge.
If market expects lower EPS than last quarter at ~5 or 6sen EPS, then probably that is achievable.

I wonder what is the expected earnings for LionInd in Apr-Jun'18 quarter ? and what would be considered below expectation ?

The Apr-Jun'18 earnings is almost sure to be lower QoQ due to lower demand and lower average sales price. So, the question is what do market expect ?

When the good quarterly report came out on 21st Aug, there are only 2 comments in i3 forum till now. This shows how unpopular Deleum is. But this is exactly the reason why it is so unknown and can stay undervalue.
I believe when its earnings keep improving in coming quarters, attention will be attracted and Deleum will deserve its fair value then. I would just hold and wait.

Deleum registered improved earnings YoY and QoQ in this quarter, even its Integrated Corrosion Solution segment recorded loss due to MCM contract start-up and mobilisation cost.
In coming quarters, when the start-up cost is no longer needed and MCM contract implementation picks up pace, the ICS segment will back to profitability and Deleum's eanrings will go up to another higher level.

The mega infrastructure projects won by Econpile are LRT3 and MRT2, which are on-going. The cancellation of ECRL has no material impact to Econpile. It is the impact on construction industry that pushed down Econpile's stock price yesterday.

New capacity expansion will be ready in Q3 & Q4 FY18 to improve revenue and earnings. In addition, Q4 is seasonally strongest quarter for Muda (just check the trend in past years and u will find out). Thus 2H 2018 earnings should be higher than 1H 2018, and management has hinted FY18 earnings will be higher than FY17.

Buffet said "He is a good investor bcos he is a business man, and he is a good business man because he is an investor". The skill in investing helps in doing business and vice versa.
However, when I look at KYY, the above statement doesn't seem to be true. KYY should be a good business man (by referring to his wealth from business), but he is really a lousy investor. Why-leh ?

The same goes to LTKM. It made loss and its stock price still stands firm.

TeoSeng made loss but its stock price stands firm. Some stocks make loss and stock price lao-sai next day. Stock market is unpredictable.

KYY/OoiTB vs Calvin.
Let's see the stock price movement of LionInd on Monday to find out which side wins the first round.

Deleum is one of the few O&G companies that stay profitable in the down cycle of O&G industry in past 4 years. It gives decent dividend consistently too.
If you see its quarterly trend, Q1 is seasonally its weakest quarter, and earnings keeps improving when approaching year end. Thus, subsequent Qs should perform better than last Q1.
MCM contract implementation kick-in from Q2 onwards, oil price is stabilising and may increase after Nov'18 if Iran sanction materialise, plus USD is strengthening.
I think Deleum is attractive at current price level.

Oil and gas industry has been in down cycle for nearly 4 years already. This industry is recovering with proven evidence showed that O&G companies are getting more work contracts from oil majors as the oil price is stabilised at ~US70 per barrel level. You can read the quarterly/annual reports of other O&G companies and they all said the same thing.
It will take some months for the new contract to kick-off and earnings to come in. By then, their stock prices will go upwards.
I would avoid OSV and drilling rigs sectors as they are still over-supply and charter rate remains low. I suppose those sectors in O&G companies would recover later than sectors like FPSO, oilfield services, exploration & production, engineering & construction sectors.
I think it is time to collect O&G companies now as their stock price remains at low level presently, and hold for at least 6 months to 1 year to see through the recovery.

Reading the comments above, one thing I found is there are many many many people in i3 dislike KYY and are happy that he is losing money in Jaks.
I suppose this is the meaning of a person reaps what he sow.

Ang run Jaks' daily operation and intend to stay in business for long term.
KYY just want to make profit from Jaks' stocks, and then dispose and then run to other stocks.
Both have differ agenda, so how to work together leh.
KYY has suggested many of his ideas to Jaks management but so far I don't see any is taken seriously by Jaks management.
So if u hope both Ang and KYY can "work together", I suppose the hope is very slim.

I would wait for 70sen per share to have enough margin of safety.

Bursa announcement showed KYY continued his disposal on Jaks' stocks from 3rd to 8th Aug. I don't think his disposal during that period was resulted from margin call because Jaks' stock price didn't go lower during that period to trigger his 2nd round of margin call. I suppose he disposed because he just wanted to run and exit from Jaks.

Anyone who bought Jaks during 3rd to 8th Aug was picking up KYY's stock and helping him to escape. He came out an article on 4th Aug to encourage people to buy Jaks so that he can dispose to you. The evidence are all there.

So, do you want to buy Jaks at lower and depressed price ? (I do)
What you can do is not to pick up Jaks for the time being, and let Jaks' stock price fall and let his margin call to trigger. He then really has to force sell Jaks and the stock price can fall further.
You can then take advantage.