The arrest of Dato’ Siew Ka Wei, Vice Chairman of Ancom Logistic, has put a spotlight on the company. However, I don’t think the news would actually affect much of the business. The MACC investigation evolved around a RM100mil contract given by Tourism Malaysia (when Dato Siew was its chairman) to Geeko Tech Sdn Bhd for a digital marketing campaign on behalf of Tourism Malaysia. It has nothing to do with Ancom Logistic.
That being said, Ancom Logistic has never been able to deliver any meaningful profit to its shareholders for the past 10 years with profit only recorded in FY11, FY12 and F14. Even then, it was not due to operational profit but mainly due to gain from disposal of their investment (RM20mil gain in disposal of investment in FY14 and RM11mil gain from disposal of land in FY11). Without those gains, FY11 and FY14 would have recorded losses as well just like any other FY for the past 10 years. FY19 would not be any different given that the company only managed to deliver a small profit of RM160k to its shareholder in 1Q19. I doubt that management will be able to deliver any substantial profit to its shareholders in FY19.
The company has a relatively strong balance sheet with net gearing of only 1.2%. In the event management decides to take up any new projects, the company would not have any issue in raising capital via debt. At the current share price, the company is trading at a valuation of 1.8x BV which is high considering that it is a loss-making company (future NTA will fall if the company continue to record losses).
If you are looking to diversify your portfolio outside of Ancom Logistic (due to earnings weakness in the near future) I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.3x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
Too many big headlines in the news in the last few months. People simply overlooked the magnitude of the petrol price slashed. Check it up, and you'll be shocked.
One time been cheated is own naive, 2nd time been cheated is own greed, 3rd time also been cheated ...then u are born in stupid. Look around u....how many penny stock been created with all those good news. Still want to jump to the hole? Unless u have solid insider news then can go goreng n ride on it. U want it...make sure FIFO. U want to marry a girl also have to see if she willing to take u as her husband.
... and in return ALB shall issue new ordinary shares in ALB (“ALB Shares”) based on RM0.10 per share (“Consideration Shares”) to the Vendors (“Proposed Acquisition”);
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
GreatWarrants
517 posts
Posted by GreatWarrants > 2018-08-19 00:16 | Report Abuse
Hi, Just for sharing. Tq.
https://klse.i3investor.com/blogs/greatwarrants/170203.jsp