Posted by shortinvestor77 > 2016-03-19 09:28 | Report Abuse

The author is hiding the gearing ratio of HS which has also incresased to near 0.5 for this latest quarter just to pay extra dividend and etc..

Posted by shortinvestor77 > 2016-03-19 09:31 | Report Abuse

HS exports a lot and now Ringgit is strengthening, imagine the effect. This author got caught and is trying to sell the shares to you when you buy lah.

Posted by shinado > 2016-03-19 09:54 | Report Abuse

shortinvestor77, you are right that if you calculate total liabilities to total equity, you get close to 0.5 ratio. However, do look at the breakdown. Only trade payables, tax payables and dividend payables. No borrowings!

Posted by shortinvestor77 > Mar 19, 2016 09:28 AM | Report Abuse

The author is hiding the gearing ratio of HS which has also incresased to near 0.5 for this latest quarter just to pay extra dividend and etc..

Also, do let us know how you conclude with Hup Seng export a lot? From The Star interview with Hup Seng's management, local sales accounts for 85% while the rest is 15%. That is not a lot. Please present us the facts. You can read the interview here: http://www.thestar.com.my/business/business-news/2015/12/05/charting-hup-sengs-growth/

Posted by shortinvestor77 > Mar 19, 2016 09:31 AM | Report Abuse

HS exports a lot and now Ringgit is strengthening, imagine the effect. This author got caught and is trying to sell the shares to you when you buy lah.

Posted by shinado > 2016-03-19 10:04 | Report Abuse

Let me enlighten a bit on gearing ratio.

From Investopedia, you have 4 types of gearing ratios:

1) Debt-to-equity ratio
2) EBIT / total interest ratio
3) Equity ratio (Total Equity / Total Asset)
4) Debt ratio (Total Debt / Total Asset)

http://www.investopedia.com/terms/g/gearingratio.asp

Mine is obviously the first one.

Posted by citychew_1886 > 2016-03-19 10:37 | Report Abuse

Hi shinado ,how do you count the ROIC for year 2015? base on the latest report, the invested capital is 74916000 and net profit is 54731000 ,so 57731/74916 *100 should be 73 % only but not as you said 96.4 % .is't it ?

Posted by shinado > 2016-03-19 10:54 | Report Abuse

citchew_1886, there are different ways to calculate ROIC. One way is to use NOPAT (Net Operating Profit After Tax). The other way is to use EBIT (Earnings Before Interest & Taxes). Either way, ROIC is not calculated using net profit. I am using the Joel Greenblatt's Magic Formula way of calculating ROIC, which is by EBIT / Invested Capital.

That should be 72955 / 75702 = 96.4%.

Hope that clears it up for you.

Posted by citychew_1886 > 2016-03-19 10:58 | Report Abuse

yeah i get you now . thanks for the answer..

Posted by citychew_1886 > 2016-03-19 11:05 | Report Abuse

Hi Shinado ,
can you show me how to calculate the cash conversion cycle ? thanks .

Posted by shinado > 2016-03-19 11:48 | Report Abuse

citcychew_1886, it's a bit long to explain. Here's a link that may help you:
http://www.investopedia.com/terms/c/cashconversioncycle.asp

Feel free to ask if you have questions about it. Cheers.

Posted by ss20_20 > 2016-03-19 13:25 | Report Abuse

Shinado: good write-up!

Posted by Harold Huong > 2016-03-19 15:59 | Report Abuse

Thanks, Shinado...is fine for me about the message...my previous entry price is low and hold around 2yrs. I like the dividend from HS

Posted by ljmeng > 2016-03-19 16:26 | Report Abuse

No doubt, this is a good counter. Provided u must have good 'patience'.

Posted by nokenzo > 2016-03-20 08:31 | Report Abuse

Mr shinado, can you please a DCF valuation for this stock? thanks.Maybe can still buy.

Posted by shinado > 2016-03-20 21:43 | Report Abuse

nokenzo, I think need some sifu to calculate it. I still haven't learn DCF yet.

Posted by RosmahMansur > 2016-03-20 21:46 | Report Abuse

Shinado the great sifu should try use your methodology into FLBhd and LiiHen...i belief your eyes will pop out :)