KAWAN (7216) - Uptrending Resume with Earning Growth

Kawan Food Manufacturing Sdn Bhd is Malaysia’s leading exporter and largest manufacturer of frozen Asian food delicacies. The company based in Shah Alam, Malaysia. The vision of the company are about providing their consumers with authentic, safe and higest-quality produts at affordable price, while making a different in the lives for the shareholders, consumers, business partnes, employees and the community.

The company's products:

Past performance,

In the past 5 years, the company posted strong and stable earning which is between 11sen-13.48sen in year 2009 to 2013. In the latest 4 quarter 2014, tatal earning is 17.07sen per share. The company performance is growing up every year and starting to growing faster in the latest yearly result.


Past 5 years cash flow,

Latest quarter Cash balances,

From the above two table, cash flow of the company is getting better and better. In the latest quarter report the updated cash and bank balances is Rm37.03m slightly growth up compare to last year cash c/f of Rm36.146m

In the chart above, share price of the company all the way go up since 2013 and slow down in last year December after bonus issue. After consolidate for few month times, share price surge back above MA26 line and forming uptrending again.

I believe currently the share price on consolidation period again with lower transaction volume but share price maintain around Rm1.90 level.

If the share price can close above Rm1.94, we will see continue uptrending before reach another consolidation level.

Target Price: Rm2.48

Happy Trading!

Regards,

Nick Loke

PRG (7168) - More Income by Diversified

PRG Holdings Berhad’s manufacturing division (formerly known as Furniweb Industrial Products Berhad) started operations in 1983 in Malaysia as a partnership producing furniture webbing. The company has since diversified into niche products for the textile and apparel, furniture, automotive, food packaging and medical industries.
Today, the GROUP is an industry leader, internationally recognized for a comprehensive range of products that are available in more than 30 countries.
The company also diversified into property development last year after Dato' Seri Yeoh Soo Ann emerged as the largest shareholder  after buying 25.2million shares in the company.

In the past few years, the company also recorded a strong earning from the manufacturing division which is around 4 to 5sen EPS.

Last year Q1 and Q2, the company recorded a net loss of 0.5sen and 0.85sen for the respective quarter, and the company return to profit again in Q3 and Q4. The revenue of the company also increased in the past 4 quarter.

Picasso Residence- The high-end condo project, which is expected to be launched within the next one month, will have a gross development value of more than RM600mil once it is built on some 3.93 acres will projected net profit of RM60mil for PRG is expected from it should the company sell 100% of the project, Yeoh carefully predicts on The Star business news 18 April 2015.

With property as its new income stream, PRG is not abandoning its original business of manufacturing, which is divided into webbing, yarn and furniture components as well as rubber strips and fabric. More than 70% of the products are for the export markets!

With the new property development and the company original manufacturing business (70% export), i believe the company will recorded a much more better earning in the coming quarter report.

From the daily chart, the price has break up the downtrend line and stay sideway now. Total volume traded untill 12.30pm today is 23.4k lot and current price trading at 70sen. Highest volume in the past 6 months.

If the price close above 72sen, i believe more upside to go in short term as buying volume has building up today after the price has stay below 72sen since last year December.



Target Price: Rm0.90


Happy Trading!

Regards,
Nick Loke

SAPRES (4596) - Heading to the Top

Sapura Resources Berhad, an investment holding company, engaged in the property investment, education, and automobile sale activities. It is involved in the rental of investment properties, as well as in the provision of higher education information technology related courses, and teaching and learning curriculum. The company also offers the sales and after sales services for BMW vehicles. Further, Sapura Rsources provides consultancy services, as well as develops and markets interactive multimedia solutions. Principally interactive multimedia solutions, operates in Malaysia and Australia. The company was founded in 1975 and is based in Seri Kembangan, Malaysia. Sapura Resources Berhad is a subsidiary of Sapura Holdings Sdn Bhd.

Latest 4 quarter, the company announced total earning 17.56sen per share, compare to last year 6.79sen  (158% increased). The NTA of the company is Rm2.65, nearly 62% discount from the current market price.

Coming two quarter result should be positive due to low performance on Q1 and Q2 report last year and this will even give lower PE ratio to the company after the coming quarter result.

In the 5 years weekly chart, the candle has close above the MA69 line and standing strong near Rm 1 level after the price close below the MA69 line since last year October,

In the daily chart, we can see that someone started accumulating the shares around end of March and recently the stochastic slow also show going up signal.

If the price can close above Rm1.00 today, it will show more upside before it stay at another consolidate  level.

Current price Rm1.01 (PE : 5.75)

Target Price: Rm1.20 ( PE : 6.83, 54.7% discount from NTA)


Happy Trading!

Regards,
Nick Loke

LEESK (8079) - Super Earning Ahead

Lee Swee Kiat Group Bhd (LSK) is a public company listed on the Bursa Malaysia Securities Bhd. It was founded since 1975. LSK owns two manufacturing facilities that occupy a total land area of 440,000 square feet. LSK is one of the most extensive mattress manufacturers in South East Asia with one stop production lines including natural latex foam, polyurethane foam and various spring productions. More than 50% of LSK products are exported. LSK operates a retail chain store under International Brands Gallery – IBG, that promotes Ergonomic beddings and furniture.

The company earning around 1sen EPS from 2010 to 2013. The company starting shining in 2014 with total earning of 2.451sen EPS in year 2014, which around 198% increased compare to 2013 earning.

In the latest quarter,the company's operating profit is 2.31m nearly 11times higher compare to last 200k.

The company has spike up from 19sen to high of 38sen in March, the volume was extremely huge untill get query and issued UMA by bursa.

Currently the share price consolidation around 30sen level and the price is touching and stand above the MA26 line. After consolidation period, price high chanse will testing recent high 38sen and more to go if company can continue posting a good result in the coming quarter.


More than 50% of the company products is export, with the recent weakening in MYR will continue benefit the company.

With the positive outlook for the export company in Malaysia and expect MYR will continue weakening this year, I believe LEESK more to go after the consolidation period.


Target Price : Rm0.38


Happy Trading!

Regards,
Nick Loke

IPMUDA (5673) - New High on the Making

IPMUDA Berhad (Co. No. 22146-T)
was incorporated on 19th April 1975. It started as the trading arm of a well known Ipoh based developer. Subsequently, it was listed on the Main Board of the Kuala Lumpur Stock Exchange on 22^nd December 1993.
Another illustrious milestone in IPMUDA’s history was when IPMUDA became part of the MAJU Group of Companies in 1997. This elevated IPMUDA’s role in the construction industry to a whole new level. IPMUDA supplies a host of building materials to the many innovative, high-speed construction projects undertaken by the MAJU Group of Companies.
The IPMUDA Group of companies have been supporting the Building & Construction Industry in Malaysia for more than 30 years and today IPMUDA has grown into one of the largest and most established building material trading houses in Malaysia.

Based on the table above, the company earning stand between 2.17sen to 9.29sen from FY2010 till FY2013.

In the latest 4 quarter in 2014, the company has a better earning of total 19.20sen which has a very good earning compare to past 4 years.

In year 2010 to 2013, the company pay out dividend of 3sen per shares, and in year 2009 dividend pay out is 5sen with EPS 20.7sen.

With the latest 4 quarter earning, the company might proposed slightly higher dividend compare to past 4 years which is 3sen dividend and will be announce around May in the past record.

After a big swing down from last year high of Rm1.60, the share price has go up in the stairs case level and found latest support near around Rm1.21. The share price might come more buying power if can stand above Rm1.29 at closing after it touch Rm1.32 today.


With a better performance in the past few quarter result and near strong support level, I believe more to go in short term if can close above Rm1.29 today.


Target Price: Rm1.55

Happy Trading!

Regards,
nick loke

ELKDESA (5228) - Journey Starting Soon!

ELK-Desa Resources Berhad is incorporated and domiciled in Malaysia. It was listed on the Main Market of Bursa Malaysia Securities Berhad on the 18th December 2012.
ELK-Desa Resources Berhad through its wholly-owned subsidiary, ELK-Desa Capital Sdn Bhd is primarily involved in the business of hire-purchase financing for used motor vehicles. The Group is also involved in selling general insurance policies as an insurance agent through ELK-Desa Risk Agency Sdn Bhd.

After listing in Bursa, the company posted a good and stable earning at 12.95sen and 13.12sen for FY2013 and FY2014. The company also declared dividend of 6.5sen and 7.5sen for FY2013 and FY2014.

The company have a dividend payout ratio of 50% or more in the past two years.

In the latest Q1-Q3, total EPS for the company is 10.91sen and Q4 result will announce on May, assume that company Q4 earning per share maintain at 3sen, full year earning for Q1-Q4 will be 13.91sen, the earning will show better compare to previous year.

In the past two years, company also will proposed dividend on Q4 and announce the entitlement date around June to July. Which mean, dividend will announce in the coming quarter around May. Based on the current earning, company very high chanse will proposed 7.5sen dividend which is around 5.28% yield base on current share price Rm1.42.

Based on past movement, share price will starting move up somewhere around April and will slowly go up until August.In 2013, the share price from Rm1.15 go up till Rm1.65 and for year 2014 share price from Rm1.35 go up till Rm1.67.

From the latest chart movement, the company show a very strong support at Rm1.37 level and look like going to go up soon and breaking the down trending line.

With the strong earning record, 5% yield coming and standing near at support level (low risk). I believe is good time to start to collect before it run far.

Target Price : Rm1.67

Happy Trading!

Regards,
Nick Loke

Gbgaqrs (5226) - Right Time to Collect

 

Gabungan AQRS Berhad (GBG) has its roots in the building and civil engineering construction. The Group's history started in 1996 when Motibina Sdn Bhd was set up as a civil and building contractor. This was followed by the establishment of Gabungan Strategik and Megah lkhlas in 1999, both of which were also involved in building and civil engineering construction. In 2003, AQRS The Building Company was established as a property development company.
These four main companies together with other companies in the Group were officially integrated under the same corporate umbrella when Gabungan AQRS Berhad was incorporated on 20th August 2010 as a Construction & Engineering service provider as well as a niche lifestyle property developer. The Group was listed on Bursa Malaysia on 31 July 2012.
GBG's core business is construction and property development is its complementary business. The Group's building and civil engineering construction activities are undertaken by Motibina. Gabungan Strategik and Megah Ikhlas while its interest in property development is spearheaded by AQRS The Building Company Sdn. Bhd.

The company posted a very strong earning for FY2013 and FY2014 with earning per share with EPS 12.05sen and 13.527sen, the earning nearly double from the FY2012 which is 6.75sen. Revenue of the company also increased nearly Rm100m every year since 2012 until 2014.

 

 

From the above picture, we can see that around 7.04% shares was floating outside for public only.

If you plan to buy the shares, you need to slowly collect due to share floating to public very low.

 

 

From the chart above, the price currently on the consolidation period and standing strong above the MA69 line. Is a good time to collect during this period and waiting a better FY 2015 report coming.

 

 

FY2015

On March 2015, the company announced joint venture with Suria Capital Holdings Bhd to develop a seven acre area in Sabah. The site which is to be known as One Jesselton Waterfront will be developed into a mixed development which has a net sale value of RM1.8 billion. GBG owns 82% of this project while Suria Capital holds the remainder.

 

Research house Affin Hwang Capital concurred and highlighted that the construction division still has an outstanding orderbook of RM600 million to RM700 million and noted that the group is still aiming for more contract wins in west and east Malaysia. (TP: Rm1.77)

 

MIDF Research house has a positive outlook on the sector for 2014, the company might also be able to capitalise on a strong construction sector in FY2015 with recently noted that the sector has already received Rm3.5 billion worth new jobs ( More than Double) compare to Rm1.4 billion posted in the first quarter last year.

 

Estimated earning for FY2015 is 17.7sen (30% increase) by CIMB research.

 

 

With the above all positive outlook for the company,

 

Short Term Target : Rm1.48

Medium Term Target : Rm1.74

 

Happy Trading!

 

Regards,

Nick Loke

 





COCOLND (7205)- F&B Shinning 2015

Cocoaland Holdings Berhad is an investment holding company which engaged in manufacturing and trading processed and preserved foods, fruits, and other related food stuffs primarily in Malaysia. The company also engages in the wholesale and retail of processed and preserved foods; and the manufacture of fruit juices. Its products include chocolates, cookies and wafer, nuts, candies and gummies, snacks and soft drinks and jellies. The company is based in Kuala Lumpur, is a subsidiary of Leverage Success Sdn. Bhd.

Based on past 5 years earning, we can see that company have a stable earning around 11-12sen per share since 2011. From the earning, we can see that company dividend payout ratio is around 50% where total dividend payout on 2013 is 6.5sen

Full year earning for 2014 fairly flat compare to 2013 which earning at 12.773sen per shares but dividend payout slightly increase to 7.5sen compare to 2013 6.5sen.


Q4 2014 posted a strong earning of 5.74sen compare to same year last quarter 4.64sen (23.7% increase).

In Q1 2014, company posted a weak earning of 1.99sen per share, where Q1 2015 result will anounce around May in 2015, this will result in an increase in company performance again.

From the chart above, share price started to go uptrending since last year December from low Rm1.40 till today Rm1.90. Consolidation of the share price is between 1.90-1.97 and it still stay above the uptrending line.

The above is one of the competitor OFI (Oriental Food Industries Hldg) , the company share price has surge from around Rm3.00 to Rm4.22(historical high) after posted a 50% increased in the last quarter result.

Cocolnd will announce Q1 2015 result around May, compare to last year Q1 weak result, will see a very good earning increase and AmeSecurities estimates a 10% earning increase in FY2015 and upgraded from HOLD to BUY with fair value of Rm2.15.

RHB also upgrade F&B player to overweight due to its decent yield and volume growth.

Collect during connsolidation period before it move to next level!



Medium Target Price: Rm2.19


Happy Trading!

Regards,
Nick Loke

HHGROUP (0175)- A Better 2015

 HENG HUAT was incorporated in Malaysia under the Act on 25 November 2011 as a private limited company under the name of Heng Huat Resources Group Sdn Bhd. The company were subsequently converted into a public limited company and assumed the present name on 18 June 2012 to facilitate our listing on the ACE Market. 
The company are principally involved in the manufacturer, trading of biomass material and value-added products focusing on oil palm EFB fibre, coconut fibre and value-added products. They are also a manufacturer and distributor of our own brands of mattress and bedding accessories.

The company listed on 25 July last year with IPO price 45sen per share, in the first day trading the share price surge up to 62sen and close at 56sen.

The company gross profit margin in 2014 drops mainly due to higher raw material price for biomass segment and listing expenses around Rm1.87mil in Q3 2014. Excluding the listing expenses, the company earning in Q3 2014 will be Rm3.1m which around 1.6sen eps.

The company targeted a revenue growth of 30% in FY2015 and intend to give a dividend pay out ratio of 20% of the total earning.

Approximately 55% of the group's products are exported to china and this may benefited to the company due to weakening in Ringgit

The construction in Gua Musang expected to start its construction in Q3 2015 which will increase their oil palm fibre production capacity.

The company also expected to transfer to mainboard in second half this year

The company share price has break up the 6months resistance of 0.515 today, and looking to go further if can sustain above 0.515.


With an average quarterly earning of 1.6sen and full year earning  6.4sen EPS, current PE is 8.125 times.

Short Term TP: 55sen  (PE:8.59)
Medium Term TP: 60sen (PE:9.375)


Happy Trading!

Regards,
Nick

EPMB (7773)- Collect before it spike!

EP Manufacturing Bhd is an investment holding company which engaged in the manufacture, assembly and sale of automotive parts and carbon composite bicycles and bicycles components. The company offers modular assemblies, suspension parts and body and engine parts, as well as engineering plastic parts and lamp assemblies. Its products include body parts, such as cross member, sub frame, dash panel, and door panels; suspension parts, such as trailing arms and link controls; engine parts, such as oil pans; modular assemblies, including corner modules, fuel tank modules, and actuation system for the brake system; engineering plastic parts, such as air ducting, bumper assembly, rear spoilers, and fuel rail assy consisting of fuel rail, injectors, and regulators; and lamp assemblies, including rear combination lamps and head lamps. The Company also involved in the manufacture production, and sale of moulds and dies; manufacture of automotive lamps, allied products, and water meter parts;manufacture, fabrication, production, and sale of engineering plastic components; and manufacture and sale of automotive modular components.

From the above table, we can see that earning of the company is declining since year 2011 from eps 23.90sen to 10.30sen in year 2013.  But base on the company share price, the company is still trading at PE below 10.

The full year earning of the company in 2014 is 11.255sen, and in the latest quarter result it show 86.67% increased compare to 2013 same quarter. Full year earning also slightly higher compare to earning in 2013 only 10.30sen.

The company show an increasing in earning in the latest result and have a very high NTA of Rm2.13 per shares. The company so far also announced total of 4sen dividend in the past 4 years.

Based on closing price today 81sen, the company PE is 6.91 and Dividend yield of 4.95%

Base on the chart above, we can see that the company price short term up trending since last year December and trying to go above the MA69 line.

From the volume indicator, we also can see that collection has start near end of February this year.

Next quarter result will out on May and normally will come with 2 sen dividend during the month.

Is the company ready to fly back to recent high after break up the MA69 line?


Short Term Target Price: Rm0.94


Happy Trading,

Regards,
Nick