Posted by longkanginvestor > 2016-06-29 14:34 | Report Abuse

http://klse.i3investor.com/blogs/ss2020_TGuan/99307.jsp

Posted by Up_down > 2016-06-29 14:55 | Report Abuse

You see what had happened to Superlon after the Director disposed 2 million shares at price 1.95 in Nov 2015. The price was still going up and reached 2.25 now. What important is the company ability to growth its business in near future.

Posted by member41 > 2016-06-29 15:08 | Report Abuse

425 now. Congrats

Posted by DarKLoRD888999 > 2016-06-29 16:37 | Report Abuse

Tguan LA October can change to mom with out paying so buy LA is more better then mom

Posted by stockmanmy > 2016-06-29 16:39 | Report Abuse

In the case of Sam, after conversion of Iculs, the share actually go up.

Posted by Davidl > 2016-06-29 17:58 | Report Abuse

Time will tell, just hold & wait!

Posted by Jeff Lee > 2016-06-30 09:07 | Report Abuse

Ang: The target market capitalisation of RM1 billion is achievable because our company is still growing


SHARES of Thong Guan Industries Bhd are trading near their all-time high of RM3.45 but valuation-wise, the stock is pegged at a price-earnings ratio (PER) of slightly less than eight times.

The region’s leading plastic packaging manufacturer does look appealing, considering its earnings growth and that its peers are trading at double-digit PERs.

When contacted, Thong Guan executive director Alvin Ang See Ming tells The Edge that the demand for plastic packaging products remains “very positive” across the board in every sector and country that Thong Guan is exporting to.

“Japan, our largest market, is still very strong. They don’t expect an increase in consumption tax at least until 2019, so there will be consistent organic growth,” he says.

Demand from Australia remains strong while Asean, Saudi Arabia and the United Arab Emirates are considered as growing markets for Thong Guan.

“The Middle East is looking good because they are rebuilding Iraq, so the growth is quite high there. We are also getting orders from countries like Iran,” says Ang.

Next, the company will expand into post-Soviet states such as Azerbaijan, Georgia and Armenia. At the same time, it is exploring new business opportunities in some African countries.

In the financial year ended Dec 31, 2015 (FY2015), despite a marginal drop in revenue to RM711 million, Thong Guan’s net profit more than doubled to RM38.5 million from RM17.4 million the year before. This was also despite a foreign exchange loss of RM12.75 million. The stellar performance was attributed to wider profit margins from exports, which were mostly denominated in US dollars.

The growth momentum continued in the first quarter ended March 31, 2016 (1QFY2016) — the group’s net profit almost tripled to RM13 million from RM4.6 million a year earlier. On an annualised basis, Thong Guan’s net profit would be RM52 million in FY2016, which would be a record-breaking year.

It is worth noting that the big leap in the quarterly earnings happened despite a foreign exchange loss of RM7.96 million in the quarter under review.

Ang highlights that export-oriented Thong Guan will continue to benefit from the low oil price environment as well as the strong US dollar.

Ang, whose family founded the group, believes that the company deserves better valuations, considering its competitors, which are smaller in size, are trading at much higher PERs.

He opines that once the investors realise the true potential of Thong Guan, it could have a market capitalisation of RM1 billion in three to five years’ time.

“The target market capitalisation of RM1 billion is achievable because our company is still growing. At the moment, the market gives us a very low valuation. If we correct that by 30% and our earnings grow at double digits, we will be there soon,” he says.

Ang, 46, is the son of group managing director Datuk Ang Poon Chuan. He joined Thong Guan in 1993 as an accounts executive before moving up the ranks to become general manager. In 2013, he was appointed to the board.

Based on its trailing 12-month earnings per share of 45 sen, the stock is currently trading at a PER of merely 7.6 times.

In comparison, Scientex Bhd, which is also involved in property development, is valued at a PER of 13.83 times with the highest market capitalisation of RM3 billion. BP Plastics Holding Bhd, which has the lowest market capitalisation of RM287 million, is also fetching a double-digit PER of 11.74 times.

But among its peers, SLP Resources Bhd, despite posting much smaller revenue and earnings, commands the highest PER of 22.18 times, giving it a market capitalisation of RM618 million, about 70% higher than Thong Guan’s.

“In the past, we have been focusing on building the company. But now, we need to promote the company more. It’s not so good to be valued lower than our competitors because we are more mature than many of them. I find it hard to understand. Something is wrong and we need to correct the situation,” Ang says.

Considering that SLP Resources is now trading at a PER of more 20 times, Ang believes that a PER of 15 times for Thong Guan “is not asking too much”.

On the global oil price, which is the key to resin pricing, he also expects it to remain favourable to Thong Guan’s cost of production.

“The shale producers are already making good money at US$50 [a barrel]. Opec (Organization of the Petroleum Exporting Countries) is going nowhere and Russia is in a very bad position, so US$50 will be quite high for them. A lot of wells are coming up in places like Africa, and there is no shortage of oil in the world anyway,” he says.

On corporate exercises, Ang says Thong Guan is considering a share split or bonus issue as tight liquidity has been

Posted by Jeff Lee > 2016-06-30 09:07 | Report Abuse

if market cap of 1 billion, thong guan should be around RM 7 to RM 8

Posted by Jeff Lee > 2016-06-30 09:07 | Report Abuse

bonus or share split coming too

Posted by Icon8888 > 2016-06-30 10:13 | Report Abuse

go go go

Posted by 15% to 20% > 2016-06-30 10:34 | Report Abuse

go go go

Posted by Jeff Lee > 2016-06-30 11:11 | Report Abuse

dunno can break RM 4.30 today.

Posted by longkanginvestor > 2016-06-30 12:26 | Report Abuse

Big block at 430..looks like hard to break

Posted by Stephen Chow > 2016-06-30 16:03 | Report Abuse

Tmr should consolidate a bit

Posted by excelyou > 2016-06-30 16:17 | Report Abuse

Continue accumulate

Posted by Ezra_Investor > 2016-07-01 16:03 | Report Abuse

2nd Scientex in the making.

Posted by Jeff Lee > 2016-07-11 14:08 | Report Abuse

go go go!

Posted by observer11 > 2016-07-11 18:34 | Report Abuse

can still enter? past 1 month buying is good after QR but always block at 430

Posted by Up_down > 2016-07-11 21:49 | Report Abuse

Big show just started only after the analysts upgraded plastic packaging sector. It should be ok since the price of resin remains at low level. Waiting the company to announce bonus issue and share split or warrant.

Posted by Up_down > 2016-07-11 22:07 | Report Abuse

Analysts bullishness plus media promotions couple with high potential of good QR results and follow by bonus issue and share split. Touching RM 5 is not a myth.

Posted by Davidl > 2016-07-13 18:55 | Report Abuse

BNM cut interest rate, is it positive impact to Tguan?

Posted by andyhard > 2016-07-15 09:22 | Report Abuse

Tguan will breakout today

Posted by davidqsk > 2016-07-15 10:05 | Report Abuse

4.50 on the way

Posted by Davidl > 2016-07-15 13:42 | Report Abuse

Good!

Posted by Up_down > 2016-07-18 08:55 | Report Abuse

Thong Guan plans to be largest PVC food wrap producer in S-E Asia

http://www.thestar.com.my/business/business-news/2016/07/18/thong-guan-plans-to-be-largest-pvc-food-wrap-producer-in-se-asia/

Posted by Kino Kow > 2016-07-18 11:17 | Report Abuse

Shoot to the up of the sky ....

Posted by jeannie > 2016-07-18 11:26 | Report Abuse

kambing liow

Posted by Icon8888 > 2016-07-18 11:27 | Report Abuse

hooray hooray

Posted by Ntpboon > 2016-07-18 11:39 | Report Abuse

来来来，
一起来爬山！

Posted by michaelwong > 2016-07-18 12:44 | Report Abuse

Good luck !

Posted by Davidl > 2016-07-18 12:56 | Report Abuse

Uptrend towards 5.00?

Posted by lloydlim > 2016-07-18 14:48 | Report Abuse

http://klse.i3investor.com/blogs/ss2020_TGuan/100225.jsp

Posted by Kino Kow > 2016-07-20 10:32 | Report Abuse

Down ......

Posted by Stephen Chow > 2016-07-21 01:17 | Report Abuse

i think, gonna move up soon.. current business and future prospect is great. it will show its true value in the market soon.

Posted by Harryt30 > 2016-07-25 23:45 | Report Abuse

Will get 9 cent dividend soon, yummy yummy!

Posted by George888 > 2016-07-26 10:01 | Report Abuse

Hehehe!!!

Posted by Calvin Lee > 2016-07-27 13:23 | Report Abuse

dividend exdate

Posted by gimeng > 2016-07-27 18:05 | Report Abuse

Harryt30...when is the pymt date for the div?

Posted by DarKLoRD888999 > 2016-07-28 09:36 | Report Abuse

go klse watch yourself noob , this kind of question also need to ask? so funny

Posted by George888 > 2016-07-28 10:21 | Report Abuse

August 18

Posted by gimeng > 2016-07-28 13:49 | Report Abuse

DarKLoRD888999 ....relax la bro...y so serious.

Posted by Up_down > 2016-07-28 13:57 | Report Abuse

Waiting for the upcoming QR and follow by bonus issues.

Posted by michaelwong > 2016-07-28 20:00 | Report Abuse

About to get ready for the run if DJI and overall Asian markets sentiment improved .
Will be collecting some by 2morrow if happened it dipped below 4.12 . Good entry price !

Posted by Stephen Chow > 2016-07-29 15:34 | Report Abuse

tguan have been taking a long nap huhu

Posted by michaelwong > 2016-07-29 18:31 | Report Abuse

Buying more tguan today at 4.12 . Volume increasing with signed of more buying interest at this price . Will continued to buy 2morrow at 4.12 . Comfortable price don't miss the boat !

Posted by riskabsorber > 2016-08-01 10:44 | Report Abuse

Very strange. When market are start fearful, Tguan was rising star. But when market start to catch up, Tguan is sinking.

Posted by sharegain > 2016-08-01 12:25 | Report Abuse

Trade carefully ahead of result announcement. Price has capture good result announcement if any. But if bad or stagnant result being announced, it will cause panic drop.

Posted by riskabsorber > 2016-08-01 15:37 | Report Abuse

Comparing the quarterly result as at 30/6/15, net profit of RM7mil should be easily achieved. However, whether Tguan's coming quarterly result will be exceeded the previous quarterly profit of RM13mil is really unlikely. So, y-o-y should be ok, but q-o-q is challenging.

Posted by CUTLOSS > 2016-08-02 05:14 | Report Abuse

Cut loss now better than cut loss at RM 3.50/3/2.5.

Posted by joekit > 2016-08-02 08:17 | Report Abuse

Lol! Many are like u waiting to collect at lower price.