Posted by traders888 > 2019-03-07 15:25 | Report Abuse

why

Posted by commonsense > 2019-03-07 16:35 | Report Abuse

This is a pure speculative stock. Based on the public info, it does not seem to have any corporate exercise planned. Appeal of this stock is purely based on technical.

The company posted a net loss of RM10.5mil in FY18. It would have been worst if not for the reversal of write off of receivables (RM26mil) and sudden high profit from associate (RM13mil).
However, the biggest issue with the company is its very weak balance sheet. As of Dec 18, the company has a total of RM410mil current liabilities (of which RM 184mil is debt) and only RM101mil in current asset (of which only RM4 mil cash). This was also highlighted by its auditor, PwC, back in May 2018 when it issue a statement of material uncertainty related to the going concern of the group (https://www.thestar.com.my/business/business-news/2018/05/02/zelan-external-auditors-uncertain-over-its-outlook-after-losses/) . I would assume the same statement will be made later when the FY18 annual report is out in May. Investors need to take note.

If you are looking to hedge your portfolio outside of Zelan (due to its weak earnings outlook and weak balance sheet), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.

FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).

MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.

Good luck.

Posted by Mike Chong > 2019-03-07 18:55 | Report Abuse

Why EPF disposed heavily since 2018 until now?

Posted by Abraham > 2019-03-07 22:32 | Report Abuse

Obviously commonsense is a newbie to Zelan... Such poor analysis.

Posted by asd88 > 2019-03-08 10:21 | Report Abuse

Commonsense talked nonsense. Promoting everywhere so desperately. U cant bring up a share in that way kid.. Lol

Posted by asd88 > 2019-03-08 11:29 | Report Abuse

In collecting mode now before the next push

Posted by asd88 > 2019-03-08 17:02 | Report Abuse

Cheers.. Still close in green despite weak market overall. More to come.....

Posted by freddiehero > 2019-03-08 17:07 | Report Abuse

steady

Posted by Asia88 > 2019-03-09 16:55 | Report Abuse

Guys, read the quarter announcement properly. If there is no reversal of write off of receivables, do you think the company can turn green? Be cautious. University income is expected to come in not confirmed will come in. Read the announcement properly.

Posted by Abraham > 2019-03-10 06:33 | Report Abuse

Asia88... Arbitration verdict out in June of July. Things are looking up ahead. Stupid client didn't pay the progress claim then blame it on quality and subsequently terminate. Typical. A big windfall fr the case is expected.

Posted by Mike Chong > 2019-03-10 13:00 | Report Abuse

University project agreement is built and bill after 3 year as in agreement , billing is on December 2018 as in quarterly report.

Posted by Asia88 > 2019-03-10 13:43 | Report Abuse

Mike Chong: the university project concession income will only come in when the government approve it.

Note 13:The issuance of Certificate of Acceptance for this project which will be effective from 1
December 2018, is now pending Government’s approval.The income from the IIUM project which will commence in the first half of 2019 will enable the Group to have a stable income stream for the tenure of the concession.

Extracted from quarter announcement:.

Will come in but pending government approval. Not confirmed. Ok.

Abraham: I have no comment on that.

Posted by Mike Chong > 2019-03-11 12:26 | Report Abuse

Where is Asia88

Posted by Mike Chong > 2019-03-11 12:26 | Report Abuse

Oh, .....

Posted by toffeemoose > 2019-03-11 20:32 | Report Abuse

https://www.theedgemarkets.com/article/zelan-seeks-rm305m-arbitration-against-architectural-firm

Posted by Abraham > 2019-03-12 06:40 | Report Abuse

The architect firm is such a small entity... Can they even pay a fraction of the amount?

Posted by limitlesss > 2019-03-12 10:07 | Report Abuse

it will be a sure win case, maybe can get a settlement of few million also will benefit the company

Posted by Abraham > 2019-03-12 13:58 | Report Abuse

Limitless u r right

Posted by Abraham > 2019-03-12 21:31 | Report Abuse

Zelan seems like becoming the king of arbitration... So many cases... I really don't know if it is good or bad.

Posted by Asia88 > 2019-03-13 00:57 | Report Abuse

Mike Chong, Anything?

Posted by asd88 > 2019-03-13 08:53 | Report Abuse

https://www.theedgemarkets.com/article/immediate-support-zelan-7-sen-says-alliancedbs-research

Posted by longvalley > 2019-03-13 09:47 | Report Abuse

no vory many to come.......!!!

Posted by asd88 > 2019-03-13 10:19 | Report Abuse

fly

Posted by NoPainNoGain > 2019-03-13 10:20 | Report Abuse

^New comer for Zelan here..one word.


WOOT!

Posted by longvalley > 2019-03-13 10:21 | Report Abuse

Gd.....!

Posted by NoPainNoGain > 2019-03-13 12:17 | Report Abuse

Out at 9c..too much movement and can't constantly monitor. got kopi money.

Posted by vivabursa > 2019-03-13 15:06 | Report Abuse

win 1 arbitration price can double de

Posted by NoPainNoGain > 2019-03-13 16:28 | Report Abuse

Regret my decision -_-..cant do anything but move on.

Posted by asd88 > 2019-03-13 17:04 | Report Abuse

the push is finally here..
more to come.....

Posted by Harold Huong > 2019-03-13 21:14 | Report Abuse

Let move higher and higher price

Posted by venture > 2019-03-14 09:57 | Report Abuse

estimated TP ? pls

Posted by toffeemoose > 2019-03-14 09:58 | Report Abuse

woooottt...

nearly 100% paper profit now....collecting since 0.06

Posted by AiOne Corner > 2019-03-14 10:15 | Report Abuse

Zelan ... Wow Wow Wow ... Go more Go more .. I believe you can fly .. lets go further , even 0.20+ .. more and more people will come n support you now !! .. They already fall in Love with you .. :)

Posted by asd88 > 2019-03-14 10:24 | Report Abuse

Sold all at 0.12. Cheers.. Hahaha

Posted by AiOne Corner > 2019-03-14 10:42 | Report Abuse

congrats... :)

Posted by vivabursa > 2019-03-14 11:10 | Report Abuse

win project will move higher

Posted by Abraham > 2019-03-14 13:19 | Report Abuse

Congratulations everyone. It took guts to buy in at 0.05 and 0.06...now reap what you sowed... But bear in mind the windfall is the arbitration... June July.

Posted by slash8479 > 2019-03-15 12:44 | Report Abuse

Stock with momentum today

Posted by Bok Sheng > 2019-03-16 07:00 | Report Abuse

Second wave coming...overrall market condition is good.

Posted by Harold Huong > 2019-03-16 11:40 | Report Abuse

Let move higher again

Posted by longvalley > 2019-03-17 20:12 | Report Abuse

On the way to $0.25 first......!

Posted by legend > 2019-03-17 20:29 | Report Abuse

Get ready..tomorrow will be push up again!

Posted by legend > 2019-03-18 10:01 | Report Abuse

Buyyyyyyyy…!!!!

Posted by AiOne Corner > 2019-03-18 10:14 | Report Abuse

Yeahhh ... Im in ... :)

Posted by vivabursa > 2019-03-18 20:35 | Report Abuse

Need good news to boost

Posted by nklye > 2019-03-19 01:13 | Report Abuse

2moro is T+3 for the high volume traded 3 days ago.

Posted by legend > 2019-03-19 11:09 | Report Abuse

buy more...

Posted by legend > 2019-03-19 15:34 | Report Abuse

O&G burn already...come collect zelan ...

Posted by legend > 2019-03-19 18:15 | Report Abuse

zelan will fly to 0.15

Posted by vivabursa > 2019-03-19 20:55 | Report Abuse

Win arbitration fly to 0.50