Tabung Haji needs at least 8% dividend for shareholders. Weida will be a solid buy for TH. Weida is also highly defensive and selling at deep discount to NTA
I just took a brief on HHGroup. It is into coconut fiber, Palm fiber and rebonding of waste rubber into mattresses. I think it is too early to form any opinion on it at this stage. I need to see a 5 year track record before I can have a clearer picture. So what I can say now is quite subjective.
The share price was listed and traded around 52 cents and dropped near the lowest on December 12 & 15 2014 to about 37 cents. It has now rebounded to near IPO listing price.
Insiders have bought at 45 cents and sold around 55 cents on 10th April 2015. Its NTA has increased but its profits are so so. At its last closing price of 56.5 cents It shows a P/E of about 10.
It has a defensive business nature as bedding is one of life's necessities. However, try to buy on dips. Since it is still a newly listed stock it will take some time to see its direction.
This stock is much better than many Ace shares without fundamental.
PM Najib mentioned Santubong in Sarawak as BN "Fixed Deposit".
There is a mention of "Buildings, roads & amenities" in his Speech with Reference to Coming East Malaysia Election in which BN expected to capture 90% of the votes cast.
Weida is in "Amenities" - providing Water & Waste Water Developments in Sarawak.
(Healthy balance sheet with stable gearing and high PEG/growth ratio)
Weida, founded in 1983 is based in Kuching, Malaysia. Weida has remained the undisputed market leader in Malaysia, with dominant position in east Malaysia. Berries of entry into this industry is high especially in east Malaysia like Sarawak.
NTA: 3.06 PE: 9.85 capital: 226 million
Weida thrives and excels through its 4 core competencies:
1. Manufacturing of polyethylene- based building materials.
2. Environment engineering services.
3. Construction of telecommunication infrastructure ( telcom tower); environment ( waste water management ; stone water management…)
4.Property development.
Points: 1.Raising revenue since 1998- 2014, 2001 revenue: Rm51,368,247 increased 549% to 2015 Rm333,841,242.
2. Profitable every years since 1998; 2001 net profit after tax Rm8,534,878 increased to Rm29,166,411.
3. FY 2016, if earning could achieve 25mil to 30mil, estimated FY16 PE is around 7.5
4. Net asset value: RM3.06 vs Market price Rm1.790 now. Trading with huge undervalue.
5. Weida has many sales already and going to book closing, and its will contribute many figures into next two quarterly Profit soon.
6. stable gearing, with net equity /net liabilities around 1.67 times.
7. Government bugdet has announced a lot develop project plan to upgrade facilities in East Malaysia and its will beneficial to Weida which is leader infrastructure company in East part especially Sarawak (due to some political issue).
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Posted by calvintaneng > 2015-04-24 13:26 | Report Abuse
Tabung Haji needs at least 8% dividend for shareholders. Weida will be a solid buy for TH.
Weida is also highly defensive and selling at deep discount to NTA