Posted by Jeffbkt > 2016-02-06 13:02 | Report Abuse

Thanks YiStock for such a very detail analysis. From the color of the report, I know which IB you are referring to who always give over optimistic TP for stock that they want to promote and sometimes (not all the time) provide unfair/unprofessional analysis for stocks when they want to downgrade. It happens to tomypak as well where I laughed when the report said that the reason of downgrade because they doubt the sudden surge of the profit margin. In fact nowadays, I am really in doubt the accuracy of the IB report as they are just too many misleading reports cases.

Posted by rikki > 2016-02-06 14:12 | Report Abuse

Onshore Foreign Currency Loan (OFCL) is a short term foreign currency loan available for exporters and importers. The unique features of OFCL is that companies need to repay the loan in foreign currency upon maturity. Companies preferred OFCL due to the cheap financing cost.

For exporters in foreign currencies, this is not an issue due to natural hedging bcoz their export proceeds will be in foreign currencies and thus will be able to repay the foreign currency loan upon maturity.

For importers, the risk is higher if they do not have foreign currency proceeds to repay the loan and they will incurred foreign exchanged losses if the foreign currency appreciated. This risk can however be mitigated by entering into a foreign exchange contract.

As for Tguan, they are exporting in USD, thus there is no added risk as they are able to naturally hedge their position. The risk will only come in if they finance more than their foreign currency export proceeds. Even that, Tguan can always hedged their position under foreign exchange contract.

OFCL financing in USD is presently very cheap at a cost of less than 2 % per annum.

Posted by zefftan > 2016-02-06 16:10 | Report Abuse

I remembered half year ago the red color report they also gave Scientex a target price of RM5.xx when it was trading at RM6.5

But now ...

Haha time will prove the answer

Posted by Icon8888 > 2016-02-06 17:22 | Report Abuse

The worst cimb

They stick to 2.50 TP even after super good result

Posted by Sulcata > 2016-02-06 17:33 | Report Abuse

Thanks for details sharing

Posted by soojinhou > 2016-02-06 17:35 | Report Abuse

Thank you for the great research! Have certainly learned a thing or two. I have read through the downgrade report, the analyst is comparing Tguan to low margin film manufacturers. But last 2 quarters showed increasing gross profit margin for its plastic products. The donkey analyst doesn't appear to appreciate that Tguan expansion is not only generating higher revenue, but higher margin as well.

Posted by Koon Bee > 2016-02-06 17:35 | Report Abuse

Yak Yew Chee from Singapore work in the bank earned sgd27 million in 4 years but paperplane earn rm700...LOL

Posted by Icon8888 > 2016-02-06 18:48 | Report Abuse

Wahaha donkey analyst

That is what we should call them in the future if they make nonsense calls

Posted by tkp2 > 2016-02-06 18:56 | Report Abuse

Hi Icon and KB, still so busy teasing paperplane ah, wakakakaka

Wish both of you gong xi fa cai, huat dua cai this year !!!!!!!

Posted by hissyu2 > 2016-02-07 00:03 | Report Abuse

haha~~ those reports are jokes... all based on assumption, forecast and so on... better jadi fortuna teller la~~

Posted by paperplane2016 > 2016-02-07 02:24 | Report Abuse

Just becauss they tell truth u all attack? What a low life.

Posted by paperplane2016 > 2016-02-07 02:27 | Report Abuse

After read this me feel more 8nsecurued

Posted by wonderboy > 2016-02-07 18:50 | Report Abuse

YiStock you are highly qualified as an analyst than that "suka-suka put any figure" analyst, keep it up with your good job

Posted by wonderboy > 2016-02-07 19:03 | Report Abuse

My suggestion to "suka-suka put any figure" analyst: please withdraw the research report, apologize, and replace with the correct one immediately

Posted by chankp7010 > 2016-02-08 10:36 | Report Abuse

An excellent insightful report. Thank you very much Yistock. You are indeed very good comparable to icon8888. Please write more of such reports to educate us and we really appreaciate your fine works.

Posted by ckkhen > 2016-02-09 12:41 | Report Abuse

Excellent rebuttal with facts and figures. Keep it up, Yistock.

Posted by chankp7010 > 2016-02-24 21:12 | Report Abuse

For Yistock, Your report is excellent; not only you provided details analysis on onshore foreign currency Loan but also helps us to see how investment bank reporting may not be correct in the true sense. I eally enjoy reading your article. Please write more to enight us. Thank you.

Posted by bracoli > 2016-02-24 21:16 | Report Abuse

Yistock keep up the good work.