KUALA LUMPUR (May 6): Rubber processor and exporter Seng Fong Holdings Bhd's net profit jumped more than threefold in its third quarter, thanks to higher sales volume and average selling prices.

It said its net profit for its 3QFY2024 ended March 31 surged to RM15.14 million from RM4.05 million a year earlier, while revenue jumped 39.2% to RM300.32 million from RM215.72 million.

The company declared a third interim dividend of 1.5 sen per share, payable on June 19. Year to date, the company has declared a total dividend of four sen, compared with 2.5 sen in the corresponding period in 2023.

The group's share price hit its all-time high of RM1.22 during trading hours on Monday, before settling at RM1.18, one sen or 0.85% higher from Friday's close. At RM1.18, the group is valued at RM639 million.

Year to date, the counter has gained 42 sen or 55.26%. The strong 3Q results came after the group posted its best quarterly earnings in 2QFY2024 with a net profit of RM17.4 million.

For its nine months ended March 31 (9MFY2024), the company reported a net profit of RM40.84 million, double the RM19.62 million it made in the corresponding period in 2023, as revenue grew 15.6% to RM807.35 million from RM698.18 million.

There has been higher consumption of natural rubber due to the growth of the automotive industry, led by the growth of electric vehicles in the US and China, Seng Fong said.

As such, it expects to expand its annual capacity by 14.5% to 190,000 MTS for FY2024, compared with 166,000 MTS in FY2023, by increasing the production hours across all three of its factories.

The group is also planning to install smart rubber manufacturing equipment at a total cost of RM26.1 million in all its factories to automate its manufacturing process. An initial payment of RM2.7 million has been made to its vendor Guangdong Ruobo Intelligent Robot Co Ltd using internal funds, the group said. The balance will be paid using proceeds from its private placement announced in February this year.

While flagging that the anticipated US Federal rate cut will affect foreign exchange movements, the group — which saw its revenue come mainly from customers in China, Hong Kong and Singapore — remains cautiously optimistic about achieving sustainable growth and good financial performance.

Source: https://theedgemalaysia.com/node/710524

1.This is a related party transaction in which SgBagan will buy the assets and liabilities of Kuchai at Rm275,470,203 and the share consideration price is Rm10.01 which is equal to the revised net tangible assets of SB.


2.At the consideration price of 10.01 Kuchai will therefore receive 27,519,500 shares in SB. Subsequently on a date to be determined, Kuchai will distribute all the SB share to its existing shareholders.


3. The minority shareholders must be aware that the current share price of SB is 3.25 on 2/1/24 and has shoot up to 470 intra day and now settles at 429. The consideration price of 10.01 is immensely exorbitant and does not reflect the trading share price. The shareholders of Kuchai have unavoidably become a sucker by the ratio of exchange in the RTP transaction. It is like receiving a blow and end up with broken bones and blood spilt.


4.Kuchai has 123m shares. it will receive 27.5m SB shares. Hence, the ratio of dividend in species would be 220 SB for 1000 kuchai shares.


5.This simply means if you buy 1000 shares and pay 1250 you will get 220 SB shares value at 3.25 yesterday and now 4.29. Therefore it is difficult to assign a fixed value to Kuchai because from hereon its value is dependent on the movement of SBagan share


6. The related party transaction would turn Kuchai into a cash rich company affected by some section of the Bursa listing requirement. In the end and before the share distribution, the value of Kuchai is simply the cash balance plus the value of the SB shares.

7. Let's calculate and for simplicity I will just take the mid day closing price of 429

The company has cash balance of 81,913,672 plus the share value 27,519,500 x 4.29 would give a total value of 199.97 say Rm200m. Therefore if you divided the total by 123m share, the value per share is Rm1.62


7. Considering that the current share price is 1.71, the RPT that takes time to complete has added 46 sen in value to existing shareholders. When we take the share price 171 and compare it to the value of 1.62 seem to say market has chased up the counter and Kuchai has gone beyond its distribution value.


8. One would be concern as we are aware that the value of Kuchai depends on the share price movement in SB, it is therefore very fluid and versatile. It can fluctuate from south to north and vise versa within short span of time. The fact that SB only has a minute share capital of 66m would subject it to easy manipulation and control.


9 This is my personal perception of Kuchai and it may or may not reflect the actual situation of the company.


10. Trade cautiously

3/1/24

Moving Average: A Golden Cross was formed on 7th November 2023 between the 9-day and 20-day moving average, indicating a short-term bulling momentum. Another Golder Cross was recently formed on 9th November 2023 between the 20-day and 50-day moving average, indicating a mid to long-term bullish momentum. The 50-day moving average is approaching the 200-day moving average, and we hope that a Golden Cross can form between the two moving averages to solidify a long-term bullish momentum.

MACD: The MACD line has moved above the signal line on 6th November 2023, indicating bullish momentum. This is represented by the widening gap between the MACD and signal line. We anticipate the bullish momentum to continue in the coming week, shown by larger green histograms.

Directional Movement Index: The +DI line has been above the -DI line since 26th October 2023, indicating bullish momentum and upward pressure on the share price. The strength of this bullish momentum is supported by the increasing DX line, which has a current reading of 66.79 points, which is way above the central line of 25 points. This indicates that the upward momentum has significant strength.

RSI: When the RSI reading is above the central line of 50 points, it is considered bullish. The current RSI reading of 71.33 points is above the central line of 50 points, showing a sign of strength that more investors are buying SDS shares than selling. The current RSI reading is slightly above the overbought region, and I believe it will sustain and continue to trade at the elevated level.


Fundamentally, SDS will announce its 2nd qtr result in November.
Considering the fact that the 2nd qtr performance coincides with the mid autumn festival, the sessional peak sales of moon cakes will boost revenue and profit.

The market is expecting SDS to announce a comparatively better profit performance in the coming qtr.

SDS has built a solid base at the 60sen level. In the last few days it has attracted some buying interest.

Volumn has increased and share price has inched up.
It is expected that the momentum and buying interest will strengthen and share price continue to swing upwards.

At the price of 1.56 it is still an opportune time to collect and benefit from the 2.5sen dividend going ex on 29th sept 2023. Furthermore, SP TOTO is strongly supported by company share buy-back on a daily basis.

Moving Average: 9-Day Moving average is above the 20-Day Moving average, indicating bulling short-term trend. A Golden Cross was formed between the 50-Day Moving average and the 200-Day Moving average on 20th September 2023, indicating long-term upward momentum. We hope that this will be a turning point for SP TOTO to capitalize on a long-term bullish trend.

RSI: The current RSI reading of 60.94 is above the central line of 50. This is a sign of strength as it shows that more traders are buying this share than selling. The current RSI is still below the overbought region. Depending on the trader’s strategy, it is still a good time to buy now.

MACD: The MACD line has moved above the Signal line on 13th September 2023, indicating bullish momentum. The bullish momentum has continued in the past week, and we hope to see larger green histograms in the coming days.

Directional movement index: The DI+ line has remained above the DI- line since 26th June 2023, indicating upward pressure on the share price. The current ADX line reading of 39.5 is above the central line of 25, indicating that this upward trend has significant strength.

Moving Average: The 20-day moving average is approaching towards the 50-day moving average, but it is still too early to say that a golden cross has formed. We will need to see the performance of the share in the following week. however, the 50-day moving average is still below 200-day moving average, indicating continuous bearish long-term trend.

RSI: The current RSI reading is 48.7 (neutral). It may not be a good time to buy now as the RSI reading is still in the neutral zone. If you want to buy cheap, you will need to wait for it to approach the oversold region.

MACD: The MACD line had just fallen below the Signal line on 2nd August 2023. We may expect the red histograms to continue to widen in the coming days. Not the right time to buy. Suggest to wait a little longer.

The on-balance volume indicator is used to measure the positive and negative flow of volume in the share price. The reading is a cumulative total of positive volume less negative volume. Positive volume represents the volume on a day when the price increases, whereas negative volume represents the volume on a day when the price decreases. Buying pressure is evident when positive volume exceeds negative volume, and the OBV line rises. Higher OBV reading shows strong buying interest. For an increase in share price to be meaningful, it must be accompanied by higher OBV reading. Looking at Mah Sing, the share price started to increase from 7-July-2023 and broke the resistance of 0.63 cents in the following days. Now, the share price sits at 0.67 cents. This increase in share price was accompanied by above average volume, as well as increasing on-balance volume reading. This shows that the increase in price is backed by strong buyers, and we may anticipate the uptrend to continue.

1. Golden cross formed between 9-day-moving average and 20-day-moving average on 19 June 2023. We may expect positive momentum in the coming week, in hopes of the share price exceeding the 0.635 technical resistance level. The current price is above the 20-day and 50-day moving average lines, indicating a sign of strength.
2. The MACD line crossed above the signal line on 12 June 2023. The bullish momentum has continued until now as represented by larger green histograms. The gap between the signal line and MACD line has continued to widen, indicating positive momentum.
3. The current RSI reading (59) is above the central line of 50. This is a sign of strength as it shows that more traders are buying this share than selling. The current RSI is still below the overbought region. Depending on the trader’s strategy, it is still a good time to buy now.
4. Directional movement index. The +DI line moved above the -DI line on 12 June 2023, indicating upward pressure on the share price. The current ADX line reading of 32.6 indicates that the upward pressure on the share price should continue in the coming week.

Dear tksw, we should not be worried about the latest quarterly results. Looking at the net profit achieved annually, it has been increasing each and every year. This will further be sustained by the higher rental income received from tenants as said by Simon Lai. Once the third terminal in Bidor Sentral commence operations, rental income will be even higher.

Again, I believe that PTRANS is a long-term investment stock. Those investors that "kasi throw tickets" because of this quarter's results are known as Mr Market. Mr Market, as described by Benjamin Graham, is an investor who is driven by emotions such as panic an euphoria, who does not trust in the fundamentals of a company. Like KC Chong said, "Mr Market is a crazy guy". Quoting words from Warren Buffet, "Be fearful when others are greedy, and greedy when others are fearful".

Dear all, I extracted the following information from Rakuten's telegram group. This coming Wednesday, Rakuten, followed by the Executive Director and CFO of PTRANS will conduct a webinar concerned with the Q4 2021 Results Review, and the overall business update of PTRANS. Hence, we can expect the Q4 2021 results to be out as soon as tomorrow or on Wednesday itself. It is vastly exciting to have a webinar on the fundamentals of the company. As investors, we should have confidence that PTRANS will report good results. I hope to see PTRANS announcing more new projects, and securing more third party terminal management contracts.



Perak Transit Bhd (0186) integrated public transport terminals which have seen consistent profit growth and high-profit margins, is scheduled to release their latest Q4FY21 earnings soon.

Share price of RM0.62 hovering near (52-week low RM0.55) not reflective of their resilient earnings?

Join us on Rakuten Trade Ideas Webinar for the latest business updates - new revenue stream to drive further earnings growth!

综合公共交通终端业务，霹雳运通 (Perak Transit Bhd, 0186) 的盈利持续增长和拥有高利润率。该公司也即将发布其最新的第4季度 2021年业绩报告。

该公司的股价在 0.62 令吉附近徘徊（52 周低点 0.55 令吉），这表现不能反映该公司的弹性收益吗？

加入我们的Rakuten Trade Ideas 晚间网络研讨会，带您一起了解该公司最新的业务动态 - 拥有新的收入来源，来推动其利润进一步增长！

Rakuten Trade Ideas Webinar

Date: 23 Feb 2022, (Wednesday )
Time: 08:00 PM
Meeting ID: 975 0238 3518
Passcode: 701340

Click here to join us > Join Zoom Webinar

https://zoom.us/j/97502383518?pwd=d0dkd2JCMXRyYTkzRkJ3cTJOamlRZz09

It would not be wise to buy AYS at this time.

Technically speaking, the MACD indicator shows that the MACD line has crossed below the signal line on 11 Jan 2022, indicating negative momentum. The gap between the MACD line and Signal line has continuously widen, i.e., investors can expect the negative momentum to continue in the coming days, represented by larger red histograms. When this trend continues, both the MACD and Signal line will cross below the zero line, indicating a strong bearish signal. Furthermore, the histograms are still in the early stages of turning red. One would be wise to wait for it to turn green before looking for “Buy” opportunities.

The 9-Day MA has intercepted the 20-Day MA and has formed a death cross on 17 Jan 2022. This signals a short-term downswing is ahead. Owing to the current gloomy market situation, a downtrend may occur, and it is reasonably expected to establish a death cross between the longer-term moving averages in the coming weeks (between 20-day MA and 50-day MA, between 50-day MA and 200-day MA). The short-term death cross had just occurred yesterday, hence it would be unwise to buy AYS at this moment.

The RSI crossed below 50 on 13 Jan 2022 and the current value is at 43. A cross below 50 is seen as a bearish signal as it indicates a weak market strength. Going forward, AYS will mirror the RSI movement from the period of 3 Nov 2021 to 10 Dec 2021. Investors should wait for the price to dip further until the RSI reaches 30 or less, before looking for “Buy” opportunities.

There is a subject called Security Analysis and Portfolio Management in the third year program. I am reading ahead and also acquiring knowledge from educational videos.

Here is a follow up from my previous posting ~

On 13 Jan 2022, PTRANS closed at 0.655 which is a 0.015 increase from the previous day. The volume on that particular day was 5.4m, which is significantly above the average volume of 1.4m. An increase in price accompanied by an above average volume traded indicates strong buying interest.

The following day (14 Jan 2022), PTRANS was retracted to 0.64, owing to extremely bearish market sentiment, arising from expectation of the Feds increasing the interest rate earlier than expected. However, notice that the volume only amounted to 1.5m compared to the previous day's volume of 5.4m, indicating that most buyers are holding onto this stock.

Today (17 Jan 2022) is T+2. PTRANS again closed at 0.64 with a below average volume of 570k. Again, this is favorable as it shows that most of the buyers from 13 Jan are holding onto this stock. As we get closer to the dividend Ex date, the selling interest will reduce. It is therefore unwise for existing shareholders to sell as it is only 8 more days to Ex date. The bullish momentum after the consolidation period remains intact. Dividends and expectations of better results will sustain the share price at a higher level in the days to come.

From 7th Dec 2021 until 4th January 2022, the price of PTRANS was stagnant and consolidated after the November 2021 downswing. However, in recent days, the price has been moving up slowly, accompanied by comparatively greater volume. The past four days' volume were 1.1m, 1.3m, 1m, and 1.2m respectively. However, today the counter experienced a significantly smaller volume of only 335k, indicating that investors are accumulating and keeping this stock.

The MACD line has crossed above the signal line on 24th December 2021. The gap between the MACD and signal line has widen. This means we can expect the positive momentum to continue in the coming days, represented by larger histograms. The MACD and signal lines are approaching and moving above the zero line, indicating a strong bullish signal.

The RSI is now above 50, indicating an uptrend. We can reasonably expect a GOLDEN CROSS to happen between the 20-day MA line and 50-day MA line soon. When that happens, the price is expected to soar.

The share price has stabilized above 0.60 cents. The increase in share price is sustainable. Any fall in price is minimal, and will be cushioned by the forthcoming 0.0082 dividend (Ex Date 25 Jan 2022). Going forward, the market can reasonably expect PTRANS to announce better results in February 2022, arising from the re-opening of all sectors of its business.

I am a first year accounting student. This is my first posting.