Posted by popo92 > 2016-06-07 15:10 | Report Abuse

It's not entirely fair to compare SHH to liihen, shh is a smaller company comparing to liihen. You can't expect the market to give same valuation with bigger cap and much bigger business, right?

Posted by Beza > 2016-06-07 15:32 | Report Abuse

SHH is not stable in giving dividends. Do not expect SHH will give good dividend every year. Not like Liihen has good track records of giving good dividends.

Posted by stockmanmy > 2016-06-07 15:38 | Report Abuse

Revenue drop by 6 % compared to March Q 2015 ( even with lower ringgit rates) and by 18 % compared to Dec 2015 quarter.................perhaps eaten by Lihen.......hahahaha



like that also can buy?

Posted by henry0420 > 2016-06-07 15:54 | Report Abuse

Erm...i prefer Liihen for DIVIDEND every QUARTER + SPECIAL DIVIDEND every YEAR. Its free cash flow believed stable than SHH.

Posted by ValueGrowthInvestor > 2016-06-07 15:56 | Report Abuse

No need to get so defensive, I am not asking others to sell Liihen and buy SHH (well, it doesn't seem like such a bad idea). Only shows how insecure you are.

Liihen is trading at 2.4x its book value and the stock has already gone up 22% this year. High time for some very 'smart' people to cash out.

Yes, you 3 fellas continue holding on and promoting, when Liihen's share price drop do not forget to buy more. You will be very prosperous soon.

Posted by Jonathan Keung > 2016-06-07 16:00 | Report Abuse

an alternate view to share

Posted by erkongseng > 2016-06-07 16:26 | Report Abuse

good share,thank you to vgi.

Posted by FayeTan > 2016-06-07 16:45 | Report Abuse

VGI, i thought you say you already want to stop writing at i3? Just one week, already broken promise?

Posted by shareinvestor88 > 2016-06-07 16:49 | Report Abuse

Thank u for this write up

Posted by ValueGrowthInvestor > 2016-06-07 18:07 | Report Abuse

Hi Faye, my passion for writing and discovering hidden gems overrode my desire to quit i3investor.

Posted by chonghai > 2016-06-07 18:19 | Report Abuse

ValueGrowthInvestor please keep posting. We value your contribution.
I am selling Liihen and I plan to buy SHH.

Posted by Law81 > 2016-06-07 21:25 | Report Abuse

Keep it up with good posting :)

Posted by Intelligent Investor > 2016-06-07 22:48 | Report Abuse

Good!

Posted by erkongseng > 2016-06-08 07:31 | Report Abuse

Shh ,I will buy more .

Posted by Ricky Yeo > 2016-06-08 08:05 | Report Abuse

re the land. The value of a stock is dependent on the cash flow it can generate over it's lifetime. So whatever that is sitting on top of that piece of land is generating those cash flow for SHH and shareholders already. Revaluating the land is not going to increase the cash flow or make the company more valuable, you will end up double counting.

If SHH is a property developer, that's a different story. The nature of property developer is to develop lands and sell it. The nature of SHH is manufacturing furniture. Unless you have insider information that SHH decide to do a 360 degree shift and become a developer, the odd is not in your favor.

Posted by kakashit > 2016-06-08 10:05 | Report Abuse

给力

Posted by skyz > 2016-06-08 10:28 | Report Abuse

Liihen got "noble intention" KOONman coverage and endorsement ma, tats why SHH and Liihen performed differently in price although both also same industry

Posted by moneySIFU > 2016-06-08 10:32 | Report Abuse

When 2 companies are also good, one have to consider the size of the companies.

Posted by KLCI King > 2016-06-08 10:36 | Report Abuse

Danny Tan is giving expert advice again, come back again using new ID after previous 2 accounts were banned due to abusing.

Posted by ValueGrowthInvestor > 2016-06-08 10:52 | Report Abuse

Dear Ricky I am showing people the break-up value of the stock which serves as a floor price for a company.

In the event that the worst happens, shareholders still have the tangible assets to fall back on, which is why the true and fair value of the assets are important.

On the other hand, if a company is trading far below the value of its assets, it would likely become a target to sophisticated investors who aim to make a profit by breaking up the company and selling its assets.

If a bank were to loan me the money, I would consider buying over the company at its current price, selling the land and pocketing the net cash to make a quick buck.

Of course this would be a secondary option seeing that the company is making RM10m a year, which would cover my cost of investment within 6 years: Buy the company for RM90m - net cash of RM30m = RM60m. RM60m divided by RM10m profit per year. You don't need to be a genius to know this, that is why my title is 'No brainer investments'!

Posted by ValueGrowthInvestor > 2016-06-08 10:56 | Report Abuse

Dear moneySIFU, the size of company measured by market capitalisation is only an indicative value given by market participants who are short sighted in nature and tend to act in herds.

What is more important is the intrinsic value of a company, something which most people are unable to do and the reason why most people underperform in the stock market.

Posted by moneySIFU > 2016-06-08 11:14 | Report Abuse

I won't buy Genting because it is too big to me, so I won't think I am short sighted.

Same to your comment, when one does not choose to invest one company due to the size of the company, I won't say that person is short sighted, that's not true and correct.

What I am trying to say is when 2 companies are also good & you can only invest one, what is your choice?

I like SHH for this company is starting to paying good dividend & doing very well but I have limited fund only, so I have to make a choice.

Posted by moneySIFU > 2016-06-08 11:17 | Report Abuse

All I have to say, this SHH is good long term investment, so it is too bad if anyone overlook on this company.

Posted by Ricky Yeo > 2016-06-08 11:44 | Report Abuse

Condition 1: Everything run as normal, no revaluation, no sophisticated investor (when was the last time you saw corporate activist in Malaysia?). The share price will dependent on the cash flow the business generated. Considered the past avg ROIC of below 10%. Fair value will be BV, give it $1.80

Condition 2: Corporate activist came in, tussle with board so they can takeover, break it up and distribute all money back to shareholders. Everyone happy because the share price will shoot up because of this exercise. Breakup success. BV turn into $2.65

Let's estimate the probability of condition 1, I will say 90%. Condition 2, 10% (very optimistic if you asked me)

Expected value = $1.89
$1.80 x 0.9 = $1.62
$2.65 x 0.1 = $0.265

Posted by ValueGrowthInvestor > 2016-06-08 11:52 | Report Abuse

Funny how you value a company at book value when your ROIC is 10%. Please explain your logic.

Posted by Ricky Yeo > 2016-06-08 11:54 | Report Abuse

I am being generous to assign a fair value at book because it's ROIC is below 10%. If the cost of capital is 10%, and if SHH can't improve its ROIC beyond cost of capital in the future, they deserve book value.

Posted by ValueGrowthInvestor > 2016-06-08 12:08 | Report Abuse

CROIC using FCF for only 9M16 is already 20.3%, my friend.

Posted by Ricky Yeo > 2016-06-08 13:06 | Report Abuse

Here you have 2 options, you can either use a 9M16 unadjusted CROIC that is inflated by interest income and currency as a benchmark, or you can look at the past 5 years poor ROIC and ask what has changed, is there any magic that makes the business suddenly flowing more cash?

No right or wrong, but you have to choose.

Posted by moneySIFU > 2016-06-08 13:16 | Report Abuse

Ricky Yeo, you are to sticky to the book though it is not wrong by the way.

I've read The Intelligent Investor more than 5 times & read many times of those books wrote about warren buffett. Can we apply everything strictly on what they said in the books? I am not sure on others but I can't apply everything.

Posted by moneySIFU > 2016-06-08 13:18 | Report Abuse

What I do now is to learn from those good people in i3 through their stock selection and articles & study why they choose those stocks, it gave me very good direction to start with.

Posted by chl1989 > 2016-06-09 00:25 | Report Abuse

in short, everything looks good and improving. This company has just turned over a green leaf since 2013 and has been delivering improving results. But, the determining factor is USD. Not sure how severe its profitability could be impacted if USD reverses.

Posted by chl1989 > 2016-06-09 00:42 | Report Abuse

If shh is able to maintain its current earning and cash flow, it is worth more than 2.65. The question is how they could sustain what they have now if USD is not in their favor. :)