3 people like this.

34 comment(s). Last comment by OPMS 2019-05-06 10:16


176 posts

Posted by Mc_Wei > 2019-05-04 12:28 | Report Abuse

Any reason why you think 9-10x PE is reasonable for this company?


532 posts

Posted by Investhor > 2019-05-04 12:42 | Report Abuse

Lets refer to few similar retailers in apparel business:

1. Padini trading at 15x PE
2. Bonia trading at 13x PE
3. Aeon trading at 19x PE
4. Parkson trading at -11x PE

(All figures taken from www.malaysiastock.biz)

Therefore I believe PE of 9-10 should provide a conservative outlook for the stock’s fair value


3,955 posts

Posted by ramada > 2019-05-04 12:55 | Report Abuse

I just see directors disposing heavily recently. NOT like Padini and Bonia share buy back frequently.


3,955 posts

Posted by ramada > 2019-05-04 12:56 | Report Abuse

Anyway, PCCS using blue highlight, and another Edaran using green highlight, very colorful.


532 posts

Posted by Investhor > 2019-05-04 13:08 | Report Abuse

@ramada - I have to correct your mistake there u said ‘directors’ but recently in 2019 only 1 particular ‘director’ has pared down some insignificant stakes in the company, which I see as a non issue as this particular director had subscribed to the rights issue exercise last year, which means he is supporting the company when required.

Maybe you don’t understand such basic reasonings as you only wish to criticize without brains.


37 posts

Posted by megacity > 2019-05-04 13:08 | Report Abuse

No news is good news, when this post come out mean the banker already get enough cheap shares, why don't write when 27 FEB the quarter financial report out but now 04 MAY almost 2 months after. The share price at 28 FEB only 0.255 to 0.265, yesterday is 0.420 to 0.455.


532 posts

Posted by Investhor > 2019-05-04 13:12 | Report Abuse

@megacity - I am writing at the point the company is on retracement. I had only recently had the time to conduct a detailed study on the financials.

I would think this is better than writing an article when the company was at top price of 56.5 cents in early April 2019.


3,955 posts

Posted by ramada > 2019-05-04 13:15 | Report Abuse

If no brain, how do I win for 5 years continuously, especially last year when others were hit badly. Think about it, kid. I just analysis with facts and figures.


4,119 posts

Posted by Legend > 2019-05-04 13:19 | Report Abuse

Kid without brain...


532 posts

Posted by Investhor > 2019-05-04 13:19 | Report Abuse

@ramada - ok go ahead and boast.i know many winners out there and as a fact they don’t boast openly like u

Anyways thanks for your feedback, it is noted

Maybe you should contribute more to society by doing your own opinion article instead of just stopping by others and criticizing


3,955 posts

Posted by ramada > 2019-05-04 13:25 | Report Abuse

Who says I always criticizing others? I always thank davidtslim and Wah Lau for their articles, because they talk with facts and figures.


532 posts

Posted by Investhor > 2019-05-04 13:30 | Report Abuse

Ok then, because my articles are also based on facts and figures laid out in quarter report and charts. But seems you have a negative bias towards me because you never thanked me even though I have taken my own time and effort to do my sharings with the community.

But it’s ok i am not looking for recognition. I will continue to contribute sharings based on facts and figures to the community, as much as i can


182 posts

Posted by gobu86 > 2019-05-04 13:37 | Report Abuse

One does not simply post a blog, if its “not a buy-call”. XD


60 posts

Posted by Iamyou > 2019-05-04 13:40 | Report Abuse

Thanks InvesThor :)

Posted by teareader818 > 2019-05-04 16:27 | Report Abuse

Ramada has got a point on why directors are disposing heavily where they should be buying. Rocket needs a booster, seems to have lost steam here (hence appearance of this article?). Red flag here.


3,955 posts

Posted by ramada > 2019-05-04 16:31 | Report Abuse

You can use either traffic exchanges or autosurfs to generate more clicks for your promoting articles. It really work!


3,955 posts

Posted by ramada > 2019-05-04 16:33 | Report Abuse

But no readers will read it thoroughly. Top article so what. Cheat yourself only.


532 posts

Posted by Investhor > 2019-05-04 16:52 | Report Abuse

@ramada - sorry i don’t use such fake actions to promote traffic. If you have such negative bias towards me, then you don’t need to waste your time here.

@teareader819 - noted on the disposal of director however we don’t really know the intention of disposal. However, as i mentioned earlier they had susbribed to rights issue exercise in 2018, therefore paring some stakes when the price spikes is normal as they had forked out cash when other investors would not have. Selling has stopped since 25/4/2019.

Recently Ekovest also saw disposal by major shareholders/directors during price spike, but it didn’t stop price from moving higher.

Ricky Yeo

1,637 posts

Posted by Ricky Yeo > 2019-05-04 16:53 | Report Abuse

I dont see how reducing administrative & selling/marketing expenses is a commitment to improve bottom line? Unless you mean improve short term bottom line and destroy long-term bottom line


867 posts

Posted by Syndicates > 2019-05-04 17:13 | Report Abuse

i dont comment on your overall analysis. But i found one thing which is false and misleading. I'm not sure whether you are aware or you are not skillful in reading financial report. You have more room to improve your analytical skill.

Quoting your point from "iii. Disposal of Asset Worth RM 8.5 million, Yet to Be Captured as Profit ???"

I expect you have read the whole relevant QR, since you captured it on your post. Did you find out the "Non-current asset classified as held for sale" under SOFP is zero? Because you are telling me this asset haven't been realized yet, so there should be 8.5 million value under this column.

"There is a high possibility that this RM 8.5 million disposal might appear as a realized gain, whether in May 2019 or August 2019 QR, as usually assets take about 6-9 months for disposal and realization of gains. Should this gain appear in May 2019, this would positively boost up the EPS of this counter and reflect a higher target price."

You read the figures from QR but you don't understand the figure. From SOCF, 8.5 million is stated under "Proceeds from disposal of non-current asset classified as held for sale". It means the proceeds of disposal is received by the company.
Based on reporting requirement, any profit/losses must be recognized under the same quarter the company receive the full payment.

You know the asset is worth 8.5 million. But do you know the cost of the asset? How you know it be would realized as a gain on disposal? How much profit it would be realized? Did you find the book value of the asset from annual report?
The disposal is only considered as profit when the selling price is higher than book value.

Since you are putting effort on doing research on this company, did you look through the company announcement too?

The answer is here:

Whenever there is huge amount of transaction company must make announcement of it. The company cannot hide it.

I expect you have read the FIRST QUARTER ENDED 30 JUNE 2018 Report, since you captured it on your post.
Did you find out,
under explanatory note, Performance review section.
The higher profit was mainly due to gain on sales of land and building amounting to RM4.5million in Perusahaan Chan Choo Sing Sdn. Bhd. ??


532 posts

Posted by Investhor > 2019-05-04 17:31 | Report Abuse

@syndicates - your comment is noted with thanks. i do admit that there is room for improvement, and will be more thorough in future.

Despite that, with the consistent revenue and cost control measures company is embarking, even without asset disposal gain (proven in February 2019 report where there was no asset disposal gain), the company is still able to deliver EPS of 2.17 cents.

Posted by Heavenly PUNTER Research IB > 2019-05-04 17:37 | Report Abuse

Padini, Bonia, Aeon, Parkson I got see before lah. This one what shop they open ah? PCCS? Never heard or see before leh


532 posts

Posted by Investhor > 2019-05-04 17:43 | Report Abuse

Their main apparel business is now focused in Cambodia and China..read the quarter reports


327 posts

Posted by pantor > 2019-05-04 23:27 | Report Abuse

Revenue has been static over the past few years.

Posted by Jason Ngan Jia Chen > 2019-05-05 18:46 | Report Abuse

10.1 Earnings
The Proposed Disposal will not have any material effect on the
earnings of PGB for the financial year ending 31 March 2018.
10.2 Net Assets
The Proposed Disposal will not have any material effect on the net
assets of PGB for the financial year ending 31 March 2018.
10.3 Gearing, Total Issued Capital and Substantial Shareholders
The Proposed Disposal will not have any effect on the gearing, total
issued capital and substantial shareholders’ shareholdings of PGB.

Posted by Double_x > 2019-05-05 19:07 | Report Abuse

Thank you Investhor for this article. I have been following PCCS for quite some time after looking at it result keep improving since the 4th quarter of 2017. If u read the Financial Report for 2018 also show the sign that this company's result is improving. However, this is not a hot counter in the past and had been traded much lower than NTA for long time. Well, I believe a lot ppls use the same method by KYY, as such, I also some at low price.
Regarding the heavily sale by director name Chan Chow Tek, it do raise a concern to me be honest, but he already 62 years old and he disposing it share even good qr issued. As such, I don't think is a big concern to me.
It business mainly focus in China and Cambodia. In it latest article mentioned that Apparel sale in China is challenging but remain profitable. Also the Company has show it effort to reduce the admin expenses. I believe the result for 2019 is very convincing.
Based on TA, Investhor is right that retracement happened after it spike to new high. But looking at few high volume u can see from chart, I believe smart money still there. I will keep my holding.

Trouble Huat

1,199 posts

Posted by Trouble Huat > 2019-05-05 21:46 | Report Abuse

Yes director keep sell however there is support on 42 cent till 45 cent. Seem that someone is acquiring. Possiblw new high in short termcoming


1,799 posts

Posted by 4444 > 2019-05-05 23:05 | Report Abuse

Investhor fry PCCS and get trapped?


1,799 posts

Posted by 4444 > 2019-05-05 23:06 | Report Abuse

Why Chan Chow Tek sold at 46 sen if TP is 77-86 sen?


1,799 posts

Posted by 4444 > 2019-05-05 23:06 | Report Abuse

29-Apr-2019 Insider MR CHAN CHOW TEK (a company director) disposed 889,000 shares at 0.460 on 25-Apr-2019.


353 posts

Posted by Star8888 > 2019-05-05 23:15 | Report Abuse

Director keep on sell PCCS. Sell PCCS and buy Vizione better.


2,404 posts

Posted by dusti > 2019-05-06 10:09 | Report Abuse

Disposal of assets is usually a bad sign. Why do this if you are progressive?

Posted by AmateurApprentice > 2019-05-06 10:11 | Report Abuse

Investhor, Thanks for the article. The asset disposal gain have already happen as you outlined in its Cash Flow Statement,ie, PCCS received the sum of RM8.5M.

The reason you are not able to see it in the income statement is because the gain of RM 0.45M (RM8.5m - RM8.05m) is grouped into Other Income along with other related items.


1,183 posts

Posted by OPMS > 2019-05-06 10:16 | Report Abuse

bought 295, next time do recommend faster so people will trust..

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