Posted by Flintstones > 2018-01-09 18:22 | Report Abuse

Was it a big black banana?

Posted by HENGYUAN Sexy Babe @ RM21 > 2018-01-09 18:39 | Report Abuse

Right issues? That means.dont have such big head, don't wear such big hat. You only hope ppl keep pumping Money to this company to let the director spend happily. I skip. Result only see in 2019, I must well buy ekovest. Duke 3 also done by then. I can sleep well with highway, can't sleep well with timber as price change overnight, so as the political policy.

Posted by Jon Choivo > 2018-01-09 19:40 | Report Abuse

Interesting.

Posted by SAPNRG TP $1.69 (ilovehits) > 2018-01-09 19:44 | Report Abuse

Looks good. On uptrend now.

Posted by Jon Choivo > 2018-01-09 19:55 | Report Abuse

Ok, the company did not do any segmental reporting, so its quite hard to estimate the figures, but lets try.

What is the marginal increase in profit, if depreciation charges stay the same (could be conservative, could be not, since there is economies of scale for the others)?

Lets assume that the all the profit is from logging. Adding back depreciation charges profit for the quarter is RM7 million, or RM28mil per year.

RM28mil/18*50= RM77 million profit if 50,000 cubic meter. Less the current depreciation cost of RM24mil per year. Assuming they can really do 50,000 cubic metre, expected profit is RM53 million. or a nice PE of 6 or EV/EBIT of 9 at current market MV.

Now, this could be higher due to the additional contribution of plywood production, and it can also be much lower due to cost of getting everything set up etc, and the problems that come with scaling up.

Conclusion: Assuming everything mostly goes right, you get a company at valuations of P/E of 6 and EV/EBIT of 9.

Why not FAVCO then? Its EV/EBIT of 3, and you get the oil boom. Why not Liihen? EV/EBIT of 5 and it has the hurricanes in the USA driving up demand, as well as the economy boom. Why not ORIENT? EV/EBIT of 4, record honda car sales, plantation division just turned to profit in 2017, and at roughly 65% discount to RNAV (and real valuable book value mind you, land held in penang at 1974 prices), Hengyuan and Petronm etc etc

Well, there is also the goreng factor. if profit shoots from RM1m to RM53m, despite most of the positive fundamentals already priced in, you can bet that people are not going to see that, but would buy, betting that someone will be willing to pay more.

This definitely looks like a nice goreng purchase, but on pure fundamentals, not that interesting.

Posted by Fabien Extraordinaire > 2018-01-09 20:21 | Report Abuse

Jon, have a look at TA. EV/EBIT of 4. Substantial discount to NTA, P/BV less than 0.5x.

Posted by HENGYUAN Sexy Babe @ RM21 > 2018-01-09 21:59 | Report Abuse

TA controlled,hard to play against fox

Posted by mancingbursa > 2018-01-10 05:33 | Report Abuse

Nice, tq icon8888

Posted by JadeSchira > 2018-01-10 09:12 | Report Abuse

One should look at 2 superstars in 2018. 1) KPS 5842 and 2) Seacera 7073.

Posted by Jon Choivo > 2018-01-10 11:12 | Report Abuse

I have actually, may buy a little to keep it as part of the NTA plays.

Fabien Extraordinaire Jon, have a look at TA. EV/EBIT of 4. Substantial discount to NTA, P/BV less than 0.5x.
09/01/2018 20:21

Posted by stockswizard > 2018-01-10 12:57 | Report Abuse

PWORTH NOT WORTH. It is too heavy...

U want LIMIT UP stock? Here we go: https://klse.i3investor.com/blogs/sridge/143765.jsp

Posted by kyosan > 2018-01-10 17:42 | Report Abuse

stockswizard PWORTH NOT WORTH. It is too heavy...

U want LIMIT UP stock? Here we go: https://klse.i3investor.com/blogs/sridge/143765.jsp
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why not u ask buy when 0.125-0.13 liao....whyy??.not understand liao..

Posted by sniper123 > 2018-01-11 11:01 | Report Abuse

icon ur article makes a very good script 4 a hollywood movie, entitled "PW DEEPTHROAT", starring icon888 as "deep throat". Need financing??? Perhaps u may consider 1MDB???