I'm always a fan of a company that always suffered from pressure to declare dividend , but I always check if they really need to loan/borrow money to declare dividend. One of the fine example is MAYBANK .. The largest shareholder is PNB .. PNB need cash for other operation, that makes MAYBANK very generous with their dividend policy .. because the owner needs it. Haha.
* For this quarter (reflect the end of March), please do notice that PPE - WIP (For those who don't know what is WIP , it mean Work In Progress) is RM 4.8 Million.
* Previous Quarter was RM 0.644M.
* WELLCAL decide to devote RM 9.2 Million for the JV.
* My crude estimation of completion of the new JV will be end of this year.
The revenue of the company is increasing, and the profit of 2019 is pretty good compare to the previous year with decrease in cost production (avg abt 64.5% for Q1,2019- Q3,2019) even though the raw materials price remain high. The demand of industrial rubber hoses is recovered gradually. This company more than 80% of the sales are exported to other countries....i think the strong USD should bringing some good impact to the company profit. The main factor that affect the company profit is the raw materials.
the fundemendals are still intact with this company. The problem is valuation is getting cheaper, hence, the reduction in the share price. I'm one of those who bought when the price is priced at a higher valuation price.
2018 Annual Report shows that Group MD Huang Sha only controls 3.4% of the shares. Another director Tan Kang Seng has the largest block but only at 11.37%. Any foreseeable issues with the lack of substantial shareholding?
Although Huang Sha is paid several million in fee, remuneration and bonus, surely the incentive of larger stockholding can help?
NTA low is because consistent dividend payout. Imagine pass 15 year no declare dividend NTA is above 1 buck. 1 year 5 sen dividend 10 years 50 sen dividend 15 years 75 sen dividend(using average but in fact wellcall pay more than that)
Current NTA 0.238+0.75= 0.99(NTA) It's just as simple as that,
Posted by Kelvinvest Research > May 6, 2020 9:42 AM | Report Abuse
Hidden gem cheap good dividend payout net cash.
NTA low is because consistent dividend payout. Imagine pass 15 year no declare dividend NTA is above 1 buck. 1 year 5 sen dividend 10 years 50 sen dividend 15 years 75 sen dividend(using average but in fact wellcall pay more than that)
Current NTA 0.238+0.75= 0.99(NTA) It's just as simple as that,
Posted by Hush77 > May 6, 2020 11:50 AM | Report Abuse
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CFTrader
812 posts
Posted by CFTrader > 2019-03-19 14:34 | Report Abuse
I'm always a fan of a company that always suffered from pressure to declare dividend , but I always check if they really need to loan/borrow money to declare dividend.
One of the fine example is MAYBANK .. The largest shareholder is PNB .. PNB need cash for other operation, that makes MAYBANK very generous with their dividend policy .. because the owner needs it. Haha.
Sincerely
CFTrader