Posted by Victor Tai Yong Sheng > 2014-07-09 15:08 | Report Abuse

time to collect more :D 8 cent dividen

Posted by Icon8888 > 2014-07-14 16:35 | Report Abuse

http://klse.i3investor.com/blogs/icon8888/55804.jsp

Posted by Tey Tian Foo > 2014-07-15 11:58 | Report Abuse

Icon8888, what is conversion method and cost with the ICUL?

Posted by Icon8888 > 2014-07-16 12:35 | Report Abuse

RM1 conversion price

Posted by thteh > 2014-07-23 12:50 | Report Abuse

Has the form to subscribe for the Iculs being issued ? I have not received mine. Any one out there can help ?

Posted by daniel168 > 2014-07-24 00:20 | Report Abuse

Early-August 2014
Announcement of the Entitlement Date for the Rights Issue of ICULS with Warrants
Mid-August 2014
§ Entitlement Date of the Rights Issue of ICULS with Warrants
§ Issuance of abridged prospectus in relation to the Rights Issue of ICULS with Warrants

Posted by thteh > 2014-07-24 00:45 | Report Abuse

Thanks daniel168

Posted by tonylim > 2014-07-24 01:19 | Report Abuse

Daniel is the time line your own estimates or is it official dates from the company

Posted by pradeep > 2014-07-24 07:49 | Report Abuse

Thteh no one had receive the forms be cool

Posted by daniel168 > 2014-07-24 23:28 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1666297

Posted by daniel168 > 2014-07-24 23:28 | Report Abuse

Is official from company

Posted by thteh > 2014-07-25 10:56 | Report Abuse

Thanks Daniel.

Posted by pradeep > 2014-08-06 16:42 | Report Abuse

Buy on weakness

Posted by pradeep > 2014-08-13 20:45 | Report Abuse

uptrend it may be beautiful

Posted by dylontn > 2014-08-14 17:15 | Report Abuse

Very soon going to announcement of ICULS issue and free warrants.

Posted by ykloh > 2014-08-14 18:10 | Report Abuse

The issue of ICUL and warrant is long overdue. They should work much faster.

Posted by pradeep > 2014-08-14 23:52 | Report Abuse

We have to be patient collect on weakness

Posted by member41 > 2014-08-15 00:16 | Report Abuse

Need patience. Waiting quarterly result end August.

Posted by member41 > 2014-08-15 16:36 | Report Abuse

congrats guys 262... fantastic... keep it coming.

Posted by member41 > 2014-08-15 16:55 | Report Abuse

265 possible

Posted by xcu843 > 2014-08-15 20:30 | Report Abuse

Any news?

Posted by pradeep > 2014-08-16 00:35 | Report Abuse

Monday should move higher

Posted by xcu843 > 2014-08-16 08:39 | Report Abuse

Hopefully...

Posted by i3i2i1 > 2014-08-18 09:08 | Report Abuse

fly!

Posted by i3i2i1 > 2014-08-18 09:21 | Report Abuse

too fast, cant catch

Posted by aunloke > 2014-08-18 09:25 | Report Abuse

sold all @ 2.89 , very happy with the investment of Tguan.

Posted by cirref > 2014-08-18 09:33 | Report Abuse

something up?

Posted by i3i2i1 > 2014-08-18 09:43 | Report Abuse

dont worry, TP4.00, but im waiting for the consolidation first.

Posted by xcu843 > 2014-08-18 09:55 | Report Abuse

any news?

Posted by jeannie > 2014-08-18 10:06 | Report Abuse

wow..such a sudden rise..must be something going on...anyone have news???

Posted by KC Loh > 2014-08-18 10:07 | Report Abuse

Thong Guan: Allocates MYR100m capex till 2016. Thong Guan is to position itself as a producer of high-value packaging materials and solutions in Asia Pacific. MYR40m would be for the production of high-end packaging material and solutions in at its Sungai Petani plant. MYR5m would be for R&D and necessary machinery and equipment. Also, MYR25m would be used to expand its PVC food wrap business. (Source: The Star)

Posted by johnny cash > 2014-08-18 13:21 | Report Abuse

Stretching forward------TODAY CIMB REPORT TARGET-----3.95,,WOW SO HIGH HA

Thong Guan Industries is one of the country’s two largest film and bag
producers, mainly for export to the Asia Pacific markets. The company
is embarking on a major capex over the next few years and we forecast
at least 16% 3- years CAGR net profit growth.
We are initiating coverage with an
Add recommendation, with implied
target price at RM3.95 (30% discount
to its ex-ICULS and warrants
fully-diluted SOP/share). The large
SOP discount is to reflect its small
market capitalisation and tight stock
liquidity. Potential catalysts for the
stock include higher group EBITDA
margins and M&A developments.
Major plastic film and bag
producer
Thong Guan Industries (TGI) is one of
the country’s two largest plastic film
and bag producers, mainly for export
to the Asia Pacific markets. Core
products include stretch films,
garbage bags, industrial/commercial
bags & films, plastic masterbatches
compounding and PVC cling film for
food. The main revenue contributor is
the stretch film division. By year-end,
TGI will be adding another thin
stretch film line and its first
nano-layer stretch film line.
Moving up the value chain
Management is focusing on moving
up the value chain. The company
has set up a US$2m research &
development (R&D) centre at its
Sungai Petani plant mainly for its
stretch film and stretch hood,
particularly for the thin and
nano-layers stretch films. The PVC
food wrap division will also be
another major earnings contributor
for the company as management is
doubling its existing monthly 500
tonnes capacity in 3Q14 and 2015.
Major expansion in the
pipeline
The company is embarking on a major
expansion plan over the next few
years with capex as much as RM100m.
We estimate group annual production
capacity to rise to around 170,000
tonnes (from 120,000 tonnes in 2013)
in 3-4 years. Funding this capex is not
an issue, with funds to be raised from
the proposed ICULS issue. In addition,
the company generates at least
RM40m operational cashflow
annually.
Subscribe for ICULS issue
Investors should subscribe for TGI’s
proposed RM52.6m ICULS (based on
a 1:2 basis), which comes with free
warrants (1 warrant for ever two
ICULS subscribed). The ex-date is
likely to be in late-Sep.

Posted by johnny cash > 2014-08-18 13:24 |

Post removed.Why?

Posted by johnny cash > 2014-08-18 13:24 | Report Abuse

1.3 The Ang family is the largest shareholder
The Ang family are the largest shareholders in TGI, holding both direct and
indirect 45.5% equity stake in the company. The Group is led by its Group
Managing Director (since the 1970s), Dato’ Ang Poon Chuan. The current
issued share capital for the company is 105.2m shares.

Posted by johnny cash > 2014-08-18 13:25 | Report Abuse

1.4 Produces wide range of plastic products
TGI produces a wide range of plastic film and bags (for both domestic and
exports markets) such as:
i) stretch films
ii) garbage bags
iii) PVC cling food wrap
iv) industrial/commercial bags and films
v) calcium carbonate/white masterbatches and other plastic compounds
Total group production capacity is around 130,000 tonnes annually and on
average, the plants are operating above 80% capacity. The main products
manufactured by the company are stretch films and garbage bags for the export
markets (mainly to Asia Pacific). The company also has its own F&B division,
which is involved in the manufacturing and trading of beverages and consumer
products under its “888” and other brands.

Posted by johnny cash > 2014-08-18 13:25 |

Post removed.Why?

Posted by johnny cash > 2014-08-18 13:26 | Report Abuse

1.7 Garbage bags… money to make from rubbish
This product is the second largest contributor for the company. The annual
production capacity is 40,000 tonnes and the company has been exporting to
Japan (its largest export market) since the 1980s. Its first export market was to
the tough Japanese market. According to statistics from Japan, TGI is the
largest exporter of garbage bags to this country, commanding 1o-15% market
share. Today, TGI also exports to the Asia Pacific and Europe markets.
The main raw material for garbage bags is high density polyethylene (HDPE).
TGI’s garbage bags can be eco-friendly with 100% bio-degradable bags. We
estimate average pretax profit margin for garbage bags at around 5-6%, slightly
higher than stretch films. HDPE and LLDPE prices track each other quite
closely.

Posted by johnny cash > 2014-08-18 13:27 |

Post removed.Why?

Posted by johnny cash > 2014-08-18 13:27 |

Post removed.Why?

Posted by johnny cash > 2014-08-18 13:27 | Report Abuse

1.11 Other products
TGI also produces its own calcium carbonate (CC) and white masterbatches.
Masterbatch is a solid or liquid additive for plastic used for colouring plastics
and produced by the compounding process. This division makes RM10m-15m
revenue annually and RM1m-1.5m in pretax profit. The company is planning to
produce higher-value added compounds with its recent new investment in this
division.
TGI recycles its in-house waste internally and the main recycling divisions at its
Gurun plant. The compounding and recycling division have allowed the Group
to be competitive against any low cost producers as the
compounds/masterbatches and recycled resins can be blended back into
producing plastic films. TGI also trades in related products such as plastic and
paper raw materials mainly to support its sub-contractors and customers.
1.12 Recent developments
In Feb-2014, the company proposed a RM52.6m ICULS issue on a 1:2 basis, 1
ICULS for every two shares. In addition, shareholders will get free warrants on
a 1:2 basis for the ICULS, one free warrant for every two ICULS subscribed. The
ICULS conversion ratio is 1 ICULS-to-1 share, only from the third year onwards
while the warrants can be converted to underlying shares anytime once listed at
an exercise price of RM1.50/share. TGI expects to complete the ICULS and
warrants issue next month. The ex-date for the ICULS and warrant subscription
is likely to be in end-Sep.

Posted by johnny cash > 2014-08-18 13:27 | Report Abuse

2. OUTLOOK
2.1 Major expansion plans over the next few years
TGI is looking at undertaking a major capacity expansion exercise over the next
few years for its various businesses in the company, costing as much as
RM100m. We estimate the group annual production capacity to rise to around
170,000 tonnes (from 120,000 tonnes in 2013) in 3-4 years, with capacity
growth to come mainly from thin stretch films, garbage bags,
industrial/commercial bags and PVC food wrap lines.

Posted by johnny cash > 2014-08-18 13:28 | Report Abuse

2.2 The global stretch film industry
The global stretch film has been growing 6-7% annually since the 2008 global
financial crisis, with capacity growth coming mainly from Asia and the Middle
East. In 2014, global stretch film demand is estimated at around 3.7m tonnes
(2.8m tonnes in 2009) with Europe being the largest stretch film market.

Posted by johnny cash > 2014-08-18 13:28 |

Post removed.Why?

Posted by johnny cash > 2014-08-18 13:29 | Report Abuse

With the right formulation, nano-layer stretch films have better film properties,
stronger puncture force movement and higher load retaining force. As such,
these nano-layer films are thinner, lighter and stronger stretch films and offer
higher profit margins. If all goes well, TGI could be adding more nano-layer
stretch film lines over the next few years.
2.5 Expanding its PVC food wrap capacity
The company is also looking at increasing production capacity for its PVC food
wrap division. The current production of 500 tonnes monthly should double
next year due to the strong demand from both Asean and Asia markets. In the
next few years, TGI should become the largest PVC food wrap producer in
Asean. Profit margin from this division is much higher than its stretch film
business. TGI is expected to aggressively grow this division over the next few
years.
2.6 Strong demand for its garbage bags
Under Japan’s generalised system of preferences (GPS) scheme, it reduced
tariffs for designated imported products from developing countries (like China)
in an effort to help increase export income and promote economic development.
However, we understand that Japan’s 3.5% GSP for China’s garbage bags was
lifted two years back and as such, Japan is currently looking to import garbage
bags from other countries.
To take advantage of strong demand from Japan, we believe TGI is looking to
expand production capacity for its garbage bags at its Sungai Petani plant while
maintaining production at its China operations. Management is looking to
expand production capacity for this product in 2015.
2.7 M&A?
Management is also looking at M&As to grow its business. With a strong net
cash balance sheet from funds raised from the ICULS and internal funds, the
company is on the lookout for businesses in the region that offer synergies and
growth. We have not reflected potential earnings from any M&A activities.
2.8 SWOT analysis
Our SWOT analysis shows that the company is moving up the value chain by
focus on producing higher value-added products. This is needed if the company
wants to differentiate itself from its competitors. Capex is not a concern as its
balance sheet is strong. With a larger production base, this should generate
greater economies of scale for the company. PVC food wrap,
industrial/commercial films and thin and nano-layer stretch film divisions
should drive strong earnings growth for TGI over the next few years.

Posted by johnny cash > 2014-08-18 13:32 | Report Abuse

3. RISKS
3.1 Sharp rise in raw material prices
At any point in time, the company has more than RM100m worth of inventory,
enough to sustain operations for 1-2 months. 80% of its production cost is from
raw materials and the selling price for its stretch films is usually based on a
“cost plus” basis. What would be negative in the short term for the company is a
sharp rise in raw material prices in a short period, whereby the company would
have to absorb some of the raw material price increase. If raw material prices
fall rapidly (for example when crude oil price collapsed in 2H08), TGI might
have to make provisions for inventory value depreciation.
3.2 Currency volatility
75% of TGI’s revenues are derived from exports, with Japan being its largest
export market. Sharp volatility in the forex market could have a negative impact
on short-term profit margins.

Posted by johnny cash > 2014-08-18 13:32 | Report Abuse

For example, in 4Q13, the company’s pretax profit margin was only 2.5%
compared to 7% in 3Q13. We believe this was mainly due to the depreciation of
the Japanese yen against the US$ in 4Q13. At end 3Q13, US-yen was 96.9
compared to 105.2 in end-4Q13. The yen depreciated 8.5% against the US$
during the quarter.
3.3 Rising electricity and labour costs
Both electricity and labour cost is around 3% of TGI’s production cost (Figure
20). The company might have to partially absorb any rise in its electricity and
labour costs and this could put some pressure on profit margins.

Posted by johnny cash > 2014-08-18 13:32 | Report Abuse

3.4 Risk of substitute products
TGI’s plastic film and products could face challenges from other substitute
products in the future. However, due to the flexibility and competitive cost of
using plastic, we believe there are currently no major product threats for the
company’s stretch film or garbage bags.
3.5 Competition
The stretch film industry is competitive, with competition coming from Asia,
Middle East and Europe. TGI’s management is looking to move up the value
chain to differentiate itself in the market. The company will start operations of
its first nano-layer stretch film line by the end of this year.
4. FINANCIALS
4.1 Signs of earnings growth since 2013
After flat earnings in 2011-12, TGIB’s earnings growth started to accelerate
from 2013 onwards. This was mainly due to profit margin expansion as
management focused on producing high value-added products, which offer
higher profit margin. The profit margin decline in 4Q13 was mainly due to forex
volatility.

Posted by johnny cash > 2014-08-18 13:33 | Report Abuse

4.2 Higher profit margin in the near future
As the company moves up the value chain, we expect group EBITDA and pretax
profit margin to improve over the next few years. We estimate TGI’s 3-year net
profit CAGR at around 16%, supported stronger topline growth. Our earnings
forecasts are conservative. It could be higher as we have not taken into account
any potential profit from any M&As.

Posted by johnny cash > 2014-08-18 13:33 | Report Abuse

4.3 Strong balance sheet
As at end-Mar, the company is in a net cash position of RM38.1m or RM0.36
net cash per share. Assuming the RM52.6m ICULS issue is completed in Sep,
TGI’s net cash position is expected to rise to around RM90.7m or RM0.86 net
cash per share (existing issued share base), RM0.57 net cash per share if we
assume full ICULS conversion (157.8m issued share base). If we assume full
conversion of its proposed warrants, TGI’s net cash rises to RM130.2m or
RM0.71 net cash per share (184.1m issued share base assume full ICULS and
warrants conversion).

Posted by johnny cash > 2014-08-18 13:33 | Report Abuse

4.4 Pays out 25-30% of its earnings
The company does not have a dividend policy but in the past few years, its net
dividend payout ratio has been between 25% and 30%. We have assumed a 30%
net dividend payout ratio for the company over the next three years