Posted by stockraider > 2021-05-01 10:58 | Report Abuse

After the swap...ancom will be less than rm 1.50 mah!

Bcos more sellers coming loh!

Posted by ChongLeeWoon > May 1, 2021 10:53 AM | Report Abuse

RM1.50 issuance price is just a "share swap" exercise with Nylex holder for the consolidation. Ancom dilute 9% to consol balance 49% of Nylex biz, Nylex holder become Ancom holders plus existing Nylex shell.

To me is a brilliant corporate exercise to realize Nylex underlying value during turnaround, plus more importantly to realize the immense potential of Ancom to be a billion ringgit co as an integrated chemical group!!

Monday continue to huat arrrr!!!

Posted by ChongLeeWoon > 2021-05-01 12:08 | Report Abuse

Well supported by better earnings and increase in Net Asset la.

K la lazy explain too much later u say i lansi my corporate finance to you hehe

Posted by dasan784 > 2021-05-01 17:37 | Report Abuse

ChongLeeWoon.......... please ignore negativity. Continue to give your thoughts as long investors continue to benefit. Be like sifu Calvin negativity never effects him.
You and JustinLong have been a pillar of strength to genuine and long term investors so continue you good work.
I believe in stockraiders view also but the correction will be temporary only. ANCOM is a great stock to invest and let's in enjoy the good ride. Cheers.

Posted by DreamHunter > 2021-05-01 17:41 | Report Abuse

yah kah

Posted by DreamHunter > 2021-05-01 17:41 | Report Abuse

sure boh?

Posted by JohnFarmer458 > 2021-05-03 09:25 | Report Abuse

Ancom TP RM2.50

Posted by dasan784 > 2021-05-03 10:30 | Report Abuse

JohnFarmer458...... Yes i am sure that your are absolutely right about the TP @ RM2.50.
I remember the first call buy was made by Sifu Calvin Tan last year and from his research he said it is expected to move anything between RM2 - RM3.00. Since then ANCOM has been moving steadily. How great thou art. Tq Sifu Calvin, JustinLong, ChongLeeWoon, John farmer and the rest of all the positive sifus. A big thank you to you all and to ANCOM also.

Posted by JustinLong > 2021-05-03 22:50 | Report Abuse

Valuation Exercise:
YTD Q3 PATAMI [ 3 + 6 + 7 ] = RM16m
Assuming a conservative RM7m for Q4,
full year FY21 PATAMI RM23m
(Q4 results expected to be even better than Q3)

What is a fair P/E for ANCOM?
Local agrochem Hextar given P/E of 30 by PublicInvest.
What about other listed agrochem companies?

- Bayer Crop Science [P/E 52]
- Corteva [P/E 49]
- Sumitomo [P/E 59]
- Adama [P/E 59]

Average of P/E 50+ !!
Because they deal with FOOD SECURITY via crop protection, just like ANCOM.

Taking CURRENT FY patami of RM25m at various levels of P/E, what would the market cap of ANCOM be from current level of RM421m?

P/E 25 = RM625m [ 48% upside ]
P/E 30 = RM750m [ 78% upside ]
P/E 35 = RM875m [ 108% upside ]

ANCOM's turnaround story has just begun, so the P/E may be gradually moving up. Plus, management forecast next year's results to be better than the current year's RM25m.

Verdict: there is still immense value in ANCOM to be unlocked

Posted by JustinLong > 2021-05-03 23:01 | Report Abuse

Valuation Exercise:
YTD Q3 PATAMI [ 3 + 6 + 7 ] = RM16m
Assuming a conservative RM7m for Q4,
full year FY21 PATAMI RM23m
(Q4 results expected to be even better than Q3)

What is a fair P/E for ANCOM?
Local agrochem Hextar trading at P/E of 30

Other listed agrochem companies:

- Bayer Crop Science [P/E 52]
- Corteva [P/E 49]
- Sumitomo [P/E 59]
- Adama [P/E 59]

Average of P/E 50+ !!
Because they deal with FOOD SECURITY via crop protection, just like ANCOM.

Taking CURRENT FY patami of RM25m at various levels of P/E, what would the market cap of ANCOM be from current level of RM421m?

P/E 25 = RM625m [ 48% upside ]
P/E 30 = RM750m [ 78% upside ]
P/E 35 = RM875m [ 108% upside ]

ANCOM's turnaround story has just begun, so the P/E may be gradually moving up. Plus, management forecast next year's results to be better than the current year's RM25m.

Verdict: there is still immense value in ANCOM to be unlocked

Posted by ChongLeeWoon > 2021-05-05 18:09 | Report Abuse

Retailers sell on news...but...

Ancom CHAIRMAN and CEO both bought shares EVERYDAY after the consolidation exercise announcement, even at RM1.70++ !!!

Overall market weak now so best time to accumulate for next uptrend to RM2.50!

Posted by JustinLong > 2021-05-18 14:28 | Report Abuse

Inflation is the current theme for the next few months. Investors repositioning their portfolio to be more defensive and away from tech sector devaluation. Sectors that will be in focus would be soft and hard commodities related such as agrochemical sector serving crop growers.

Key strategy for ANCOM:
1) Agrochem - Ancom serves the cotton market in US. Big name apparel brands have been boycotting cotton from China due to their concerns on farming practices in Xinjiang (can google "China Xinjiang Cotton"). This will continue to drive cotton export from US, indirectly benefitting agrochemical companies serving the US market.

CPO prices also remain very high above RM4k/MT. This encourages palm oil plantations to continue to buy more fertilizers agrochem to ensure the best yield for their land.

2) Petrochem - oil prices have remained firm and on an upward trend. This bodes well for Nylex as a trader of petrochem derivative products such as methanol. Ancom stands to benefit from further consolidation of the petrochem biz that is currently held under Nylex.

Following the sell-off after the consolidation announcement for those who do not understand the rationale behind the RM1.50 per Ancom share offer, plus panic selling from weak market on MCO 3.0 news, this seems to be the best chance for investors to add weight on Ancom at an attractive entry point with at safe support level.

Posted by lawrgan > 2021-05-19 12:20 | Report Abuse

The price is not well supported above 1.50 level. The deal might be called off due to disagreements on initial offer price??

Posted by ChongLeeWoon > 2021-05-19 21:03 | Report Abuse

What disagreements? lol

Exec Chairman of Ancom = Group MD of Nylex.

Although he may not vote for the deal on both Ancom and Nylex side, you think Ancom management has ZERO feedback from their big boss and Nylex team before launching the offer?

You think Maybank IB fees are cheap ah can play play offer for fun, or offer test water first??

Posted by ChongLeeWoon > 2021-05-19 21:04 | Report Abuse

Market sell on news and MCO3.0 panic lor, once Nylex board announce accept offer then Ancom is on its way to be a brand new integrated chemical group liao hehe

Posted by dasan784 > 2021-05-21 16:18 | Report Abuse

JustinLong and ChongLeeWoon......thanks for all the positive input. NOW is the best time to buy ANCOM. I am sure investors will be rewarded in time to come. I always remember my sifu Calvin as he was the one who made the initial buy call and it is turning out to be a real gem. Thanks ANCOM and the rest of the sifus.

Posted by ChongLeeWoon > 2021-05-25 09:12 | Report Abuse

As announced by subsi NYLEX
-Disposal of tank farm asset in Vietnam for USD6.25m
tAfter 5-consecutive years of losses, this Viet subsi is disposing its assets for a GAIN of USD5m (RM20m+). This marks a new strategy of being asset-light and more agile in terms of cost control for a distribution company.

Assuming full-year FY21 results of PAT RM23m,
this gain of RM10m (consol 50% of RM20m) means:
!!! HALF the current year's profit
!!! IN THE POCKET for next financial year!!

Well done to ANCOM for its ongoing restructuring efforts to drive up profits and shareholders returns.

Posted by Powerplay666 > 2021-05-25 16:05 | Report Abuse

Anyone here attend the Ancom briefing for high value investors last weekend?

Posted by ChongLeeWoon > 2021-05-25 16:21 | Report Abuse

Powerplay666 how you know got briefing for investor leh

Posted by Powerplay666 > 2021-05-25 16:30 | Report Abuse

Saw in the comments section in klse screener on ancom thread

Posted by ChongLeeWoon > 2021-05-25 22:55 | Report Abuse

Heard from reliable source that already got institution fund house take position in Ancom. You may ask your remisier to check Ancom DBT, can see big blocks transacting off market. Today alone 3m units block cross hand in 4 DBT tranches. Big boys crossing stock.

When a company goes from ZERO institution/fund managers to gathering more and more institution holders, the stock is gonna be cornered and uptrend will be very strong coming.

Posted by Powerplay666 > 2021-05-26 09:55 | Report Abuse

Anyone know when nylex board is meeting to decide on the merger?

Posted by JustinLong > 2021-05-26 22:07 | Report Abuse

Discussion has been ongoing ever since offer received.

Fund managers already start taking positions when retailers panic sell last week. Once Nylex board announced acceptance, then it would be just EGM and paperwork to conclude the whole consolidation for ANCOM to emerge as a brand new formidable chemical group.

Posted by JustinLong > 2021-05-30 21:34 | Report Abuse

Total Lockdown UPDATE:

ANCOM's business operations fall under the MITI-approved list of industries, to resume as usual.

Ancom's core businesses of Agrochemicals, Industrial & Petrochemicals are essential industries that are allowed to operate throughout the total-lockdown period. As agrochemicals are part of the supply chain for the plantation industry, the main manufacturing sites of Ancom would continue operating while admin/office staffs are working from home according to sop guidelines.

Posted by ChongLeeWoon > 2021-05-31 10:27 | Report Abuse

Ancom forming new support at RM1.57 level, sellers been selling non-stop but support is there.

Once selling subsides, will break the RM1.60 psychological barrier!!

Many people realize that Agrochem and Agriculture will forever be in demand and because of FOOD SECURITY.

Posted by ChongLeeWoon > 2021-06-04 11:24 | Report Abuse

Boom shaka laka babehhhh!!!

Posted by ChongLeeWoon > 2021-06-21 11:30 | Report Abuse

Opportunity again, nice nice... collect some below 1.60 and wait for good development

Posted by Rider > 2021-06-22 12:05 | Report Abuse

Hope there's nothing wrong with the company.

Posted by JustinLong > 2021-06-24 20:49 | Report Abuse

If anyone noticed the buying action this afternoon, you would have noticed big funds are starting to accumulate this stock. A combination of weak market sentiment + retail selling provides opportunity for funds to enter and collect upwards with confirmation of turnaround profitable results.

Posted by ChongLeeWoon > 2021-07-02 15:56 | Report Abuse

The tide is rising and new uptrend about to start forming...

Posted by dasan784 > 2021-07-14 08:11 | Report Abuse

JustinLong........any new updates as the shares are dormant.

Posted by JustinLong > 2021-07-15 20:58 | Report Abuse

Q4 results announcing soon, can the company keep up the momentum and deliver satisfactory numbers?

If management can continue to deliver what they aspire to, how would the share price reflect in the open market? Stay tuned!

Posted by dasan784 > 2021-07-26 09:48 | Report Abuse

JustinLong thanks for the updates. Can we how soon will the Q4 results be announced? Thanks

Posted by klkk > 2021-07-27 19:16 | Report Abuse

Notice a director kept disposing lately. What's the implications, something not positive?

Posted by dasan784 > 2021-07-28 07:34 | Report Abuse

klkk ...... meaning it is time for us to dispose too. Otherwise high possibilities we too might be screwed. Just my opinion. Anyway thanks thanks for the info klkk.

Posted by JustinLong > 2021-07-28 21:32 | Report Abuse

Chan Thye Seng, the 2nd largest holder via P&O, only disposing warrants and if you noticed, there is a big disposal today by CTS by DBT.

AND... at the same time, Chairman and CEO announce acquisition of the warrants via DBT.

This shows that there is a consolidation of shareholdings to the key management running the company daily, and why would management want to take the warrants? Value emerging to be captured?

Posted by dasan784 > 2021-07-29 09:39 | Report Abuse

JustinLong.......thanks for latest updates. I think we just have to hold this great gem and we will be rewarded in the near future. Thanks

Posted by olddman > 2021-07-29 17:33 | Report Abuse

result out very good

Posted by dasan784 > 2021-07-30 17:12 | Report Abuse

Olddman....... it was not a VERY GOOD result coz only 1/2 million more. Look at way it drops today coz the number of shares disposed is huge. I thought it will be a great gem but there is nothing to indicate that. JustinLong please give your thoughts on the Q report so investors can decide what to do next. Thanks

Posted by SEE_Research > 2021-07-31 20:17 | Report Abuse

https://klse.i3investor.com/blogs/see_research/2021-07-31-story-h1568880164-NOW_SHOWING_THE_TRILOGY_OF_FAST_FURIOUS_SHOW_Corporate_Exercise_Part_4_.jsp

Posted by SEE_Research > 2021-07-31 20:24 | Report Abuse

SUMMARY

SEE RESEARCH

FOR NYLEX :

TARGET PRICES


RM 1.20 short term,

RM 1.50 mid term

=========================================

FOR ANCOM:

TARGET PRICES

RM 2.00 short term,

RM 2.50 mid term

Posted by SEE_Research > 2021-07-31 20:30 | Report Abuse

BERNAMA .com

News in Brief
29 July 2021



===========================

Nylex ( Malaysia ) Berhad /4944
returned to black
with huge profit of
RM 19.31 millions for the current financial year 2021


against a net loss of RM 23.21 millions in the previous year

=====================================
SEE RESEARCH

FOR NYLEX :

TARGET PRICES


RM 1.20 short term,

RM 1.50 mid term

Posted by SEE_Research > 2021-07-31 20:45 | Report Abuse

SUMMARY

ANCOM

ANALYSIS ON QUARTER REPORTS
Financial Quarter Announced Profit RM ( in million ) EPS
(i) 29July 2021 7.61 3.19
(i) 28 April 2021 7.08 2.98
(i) 26 Jan 2021 6.19 2.59
(i) 27 Oct 2020 3.06 1.28
=============================================================
23.94 millions 10.04
analysis based on PER 30 x 10.04 = RM 3.00

intrinsic value = RM 3.00

What is a fair P/E for ANCOM?
Local agrochemical Hextar /5151 is given a P/E of 30 by PublicInvest.
What about other listed agrochem companies?

In the world of agrochemical companies that are listed
- Bayer Crop Science [P/E 52]
- Corteva [P/E 49]
- Sumitomo [P/E 59]
- Adama [P/E 59]

Average of P/E 50+ !!
Because they deal with FOOD SECURITY via crop protection, just like ANCOM.

Taking CURRENT FY patami of RM24m at various levels of P/E,
what would the market cap of ANCOM be from current level of RM 371m?
( as at 30 July 2021 )

P/E 25 = RM642m [ 73% upside ]
P/E 30 = RM767m [ 106% upside ]
P/E 35 = RM895m [ 141% upside ]

ANCOM's turnaround story has just begun, so the P/E may be gradually moving up. Plus, management forecast next year's results to be better than the current year's RM24 millions
==================================================


SEE RESEARCH
ANCOM / 4758

TARGET PRICES
RM 2.00 per share- short term
RM 2.50 per share- mid term

Posted by SEE_Research > 2021-07-31 20:58 | Report Abuse

Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021.

Picture courtesy of Ancom Berhad
Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021. — Picture courtesy of Ancom Berhad

KUALA LUMPUR, July 30 — Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021 amid a highly challenging operating environment.

In a statement, the leading manufacturer and supplier of agricultural and industrial chemicals in South-east Asia said its 4QFY21 revenue increased 44.1 per cent year-on-year to RM445.9 million compared to RM309.4 million in the same period last year.

It said the improvement was primarily driven by the agricultural chemicals segment as higher global demand bolstered the segmental top line by 28.6 per cent to RM79.9 million.


Higher trading volume and average selling prices also boosted the revenue of the industrial chemicals arm by 52.6 per cent y-o-y to RM325.1 million, the group added.

Ancom’s profit after tax and non-controlling interest also jumped to RM7.6 million in 4QFY21 versus a loss of RM11.8 million a year ago.

For the full year, Ancom’s revenue increased marginally by 4.5 per cent y-o-y to RM1.54 billion in FY21.

Meanwhile, the Group reported full-year net profit of RM23.9 million for FY21, which Ancom Berhad Group CEO Lee Cheun Wei noted was its best full-year bottom line since 2008.

“Our agricultural chemicals division has done very well, riding on the uptrend of global demand for food. We anticipate the trend to persist with a continued strong contribution from this segment. As for the industrial chemicals segment, our trading business has performed favourably too, having benefited from higher sales volume and generally higher average selling prices,” he said.

Given the restrictions in operations imposed during MCO/EMCO in the months of June and July, we have been very vigilant to comply with regulations while continuing to serve our clients as an integral part of the food supply chain. We are cognisant of the ongoing challenges such as freight costs and supply chain disruptions due to the pandemic, and we managed to deliver commendable results thus far.”

Lee added that he anticipates the growth trajectory of the Group, particularly the agricultural chemicals division, to remain strong.

“Recently, we have begun our production of new active ingredients at our existing plants and are expecting to add a few more to our portfolio once our new plant is ready by the first half of 2022. We are optimistic and will strive to continue to deliver good and satisfactory results for our shareholders next year,” he concluded.

Related Articles Ancom says Nylex’s board has accepted RM179.3m buyout offer Source: Ancom in bid to fully acquire Nylex Ancom Bhd untung lima kali ganda, meningkat RM9.3 juta

=========================================

ANCOM

ANALYSIS ON QUARTER REPORTS
Financial Quarter Announced Profit RM ( in million ) EPS
(i) 29July 2021 7.61. 3.19
(i) 28 April 2021 7.08. 2.98
(i) 26 Jan 2021 6.19. 2.59
(i) 27 Oct 2020. 3.06. 1.28
=============================================================
23.94 millions 10.04
analysis based on PER 30 x 10.04 = RM 3.00

intrinsic value = RM 3.00

========================================
SEE RESEARCH
ANCOM / 4758

TARGET PRICES
RM 2.00 per share- short term
RM 2.50 per share- mid term

Posted by dasan784 > 2021-08-01 16:02 | Report Abuse

SEE RESEARCH....... tqvvm for the indepth analysis of ANCOM. However pardon me for asking you what do you mean by short term and mid term targets. Appreciate your kind reply. Tqvvm

Posted by nowayout > 2021-08-02 20:02 | Report Abuse

This company price has been stagnant for so long…It was bec lack of interests or still retailers haven released these gem…After Nylex agreed the consolidate exercise,both had reported fantastic QR.Among the smallcap it can consider the best performance…Let say once consolidate completed,it could easily hit billion market cap category…
Assuming Ancom gonna hit 60m PAT for new financial year,current price is stil consider very cheap…Not sure anyone realize,lately a lot of company wit this range of earning price shot up double to triple…
As investors,I really think tat current price is relatively cheap…it is worth to buy in Ancom now and expect the potential double to triple rewards for coming future..

Posted by JustinLong > 2021-08-03 15:35 | Report Abuse

nowayout, sharp point you mentioned.

The consolidated PAT from Agrochem and Industrial Chem could give Ancom group a PAT of RM60m++ coming financial year.

For the just concluded financial year, Agrochem hit PAT of 35m while Nylex is almost 20m. Going forward, corporate costs are reducing and media losses minimized, a PAT of 50m times PE20 would give you 1b market cap, simple math.

Just sooner or later it will shoot up then those without patience will miss the big ride up to RM2.50 above.

Posted by stevenckheng > 2021-08-23 15:57 | Report Abuse

S5 under this company ?

Posted by Rider > 2021-08-26 10:21 | Report Abuse

Ancom has remained static for the longest time now. Even after announcing a good set of financial results!

Posted by JustinLong > 2021-08-27 23:01 | Report Abuse

Some surprises coming in the coming annual report...

https://klse.i3investor.com/blogs/ancom4758/2021-08-27-story-h1570603519-ANCOM_or_HEXTAR_Which_to_buy_for_110_gain.jsp

Posted by calvintaneng > 2021-08-28 07:41 | Report Abuse

Blog: ANCOM or HEXTAR - Which to buy for 110% gain?

https://klse.i3investor.com/blogs/ancom4758/2021-08-27-story-h1570603519-ANCOM_or_HEXTAR_Which_to_buy_for_110_gain.jsp

See this

JustinLong

My reading of the current price trend of Nylex is that those who bought on rumours sold on news, maybe due to the Minority Interests (MI) not getting the full RM1 in cash.

This is very absurd and it seems to be a great value buy right now.

Nylex MI will get the RM1 in the form of:
1) 39sen/share cash distribution
2) 9sen/share cash remaining in the listed co
3) 52sen/share of Ancom share
**Ancom issued at RM1.50 so approximately 3 Nylex shares get 1 Ancom share

Cash alone (distributed + retained) is already 48sens.
The closing price today of 86 sens means you are only paying 38sen for one third of Ancom
= (38sen x 3) = RM1.14 per Ancom share. You do the math here.

Of course there may be a discount at this moment as the deal is still not voted by Nylex MI yet but the price should eventually converge to RM1 in the coming months.

No reason for MI not voting for it as without the deal Nylex would most likely be "stuck" without this value unlocking exercise.

Will continue to accumulate this stock as well as Ancom for the coming few months to vote for the deal.
03/05/2021 9:36 PM

jwinter3 JustinLong... Great clarity indeed. Time for accumulation.
12/05/2021 9:21 AM

JustinLong Market giving Nylex shares a discount to the RM1 value now due to the board yet to announce acceptance of the offer. Once it is announced sometime estimated in June, then discount should narrow and share price should gradually rise to RM1 nearing the EGM.

Ancom just dipped below RM1.50 now which is a no-brainer buy as their Q4 should be better than Q3 + the ongoing inflation theme on commodities. MCO3.0 really caused panic selling across the board.

Perfect time to add position.
19/05/2021 10:34 PM


CALVIN ADDITIONAL COMMENTS:


NYLEX EARNS MORE AND GOT HIGHER NAV THAN ANCOM


THE MATHS SHOW THAT THE BEST PROXY BUY TO ANCOM IS NYLEX

BY BUYING NYLEX AT 82 SEN THERE IS A LOCK IN DISCOUNT TO ANCOM BY 10% TO 15% LOWER ENTRY PRICE

If Ancom could rise above Rm2.00 to Rm3.00 as forecasted then buying Nylex at such discounted price is a no brainer