CCB (2925) - The Return of the Luxury Car

Corporate Profile

Cycle & Carriage Bintang, a member of the Jardine Cycle & Carriage Group, is listed on Bursa Malaysia. It is the largest dealer of Mercedes-Benz motor vehicles in Malaysia, providing high quality retail and after-sales service.

Jardine Cycle & Carriage ("JC&C") is a leading Singapore-listed company and a member of the Jardine Matheson Group. JC&C has an interest of just over 50% in Astra International, a premier listed Indonesian conglomerate. JC&C's Direct Motor Interests operate in Singapore, Malaysia and Myanmar under the Cycle & Carriage banner, and through Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam. JC&C's Other Interests comprise interests in market leading businesses in the region through which JC&C gains exposure to key economies by supporting such businesses in their long term development. Together with its subsidiaries and associates, JC&C employs some 245,000 people across Indonesia, Vietnam, Singapore, Thailand, Malaysia and Myanmar.

Company's 5 years P&L

In year 2015, Company earning has increase 500% from Rm 10mil earning in 2014 to Rm 52mil, earning per share increase from 10.26sen to 51.74sen.

For FY2016,

For the first half of 2016, company has achieve revenue of  Rm 737.8mil and with net profit of Rm29.1mil. The company will announce their Q3 2016 earning in October and below are the latest sales that has announce on TheStar on 06 October 2016,

In the above, the sales figure has already surpassed last year's total sales by 10%, and below is the 2015 earning up til September 2015

Up til 30 Sep 2015, total revenue is Rm 1.19 bil and with total earning Rm 41.9mil which is equal to earning per shares 41.62sen. With the total sales in 2016, with the surpassed by 10%, i believe in coming quarter the revenue can hit Rm 500 mil, and this will also lead up by better earning in this quarter compare to last year same quarter.

The company also confident with their sales for FY2016,

“We’re confident of exceeding last year’s figures. Despite a tough market, we feel that we have the right measures in place,” he told reporters on the sidelines following the launch of the company’s Mercedes-Benz C350e yesterday. (06 October).

Dividend History

CCB  paying very high dividend in Year 2006 with special dividend of Rm 2.03 per share, Year 2008 Rm 1.35 per share and Year 2009 Rm 1.20 per share, and after that the dividend has been reduce to 10sen and 5 sen in the coming years and no dividend payout for year 2013 and 2014 due to lower earning.

Chart,

The company share price has trading sideway between Rm 3.10 to Rm 3.50 for few months and strong support at Rm 3.00 level. The share price also stay above MA 20 since last year, i believe is a good time to collect before the coming quarterly report.

With the confident target sales for FY2016 will better than 2015, i believe company earning can maintain at Rm 52mil or equal to earning per share 51.74sen. With the better performance, i also believe company will given better dividend in coming year to reward their shareholders.

My Long term Target Price: Rm5.20  (PE 10 on 2015 earning)

Happy Trading!

Regards,

Nick Loke

FIMACOR (3107) - Collect while still low

Fima Corporation Berhad ("FimaCorp") is an investment holding company with subsidiaries principally involved in the manufacturing, plantation and property management.

• Manufacturing
  Production and trading of security and confidential documents

The manufacturing division namely production and trading of security and confidential documents is under the wings of wholly-owned subsidiaries Percetakan Keselamatan Nasional Sdn Bhd (“PKN”) and Security Printers (M) Sdn Bhd.

PKN was established in 1983 as Cawangan Percetakan Keselamatan under the National Printing Department and was privatized by FimaCorp in 1990.  The Company is one of the largest domestic security printers in Malaysia, offering a wide range of products and services which include travel documents, licenses and other security & confidential documents for the local and overseas market.  

Its factory in Jalan Chan Sow Lin, Kuala Lumpur is located in a fully secured compound with restricted access and personnel movement, CCTV monitoring, physical checks and strong rooms. PKN prides itself in having state-of-the-art security printing logistics in sustaining key capabilities, particularly in the area of high quality printing and innovative design. PKN has more than twenty printing machines which has the most comprehensive range of printing technologies particularly letterpress, offset, flexography, screen and intaglio.

In 1990, Percetakan Keselamatan Nasional integrated with Security Printers (M) Sdn Bhd making it a trading arm for security documents.

• Plantation
  Oil palm production and processing

FimaCorp Group is engaged in the development, cultivation and management of oil palm estate as well as the processing of oil palm products. As at 31 March 2015, the Group owns and operates 9 estates with a total landbank of 23,414.0 hectares.

• Property Management
  Management of commercial properties

The property management division offers property management, cleaning, mechanical and electrical services to compliment the various companies in FimaCorp and Kumpulan Fima Berhad group of companies.

Company Earning,

Company full year earning at 2015 is 21.24sen per share which is PE 10.49 for current price Rm2.23

Company consistently paying dividend twice a year with total dividend of 12.5sen in the past two years. In the latest quarterly report earning, the company also recommend payment of a single tier dividend of 7.5sen.

Table below are the details for the company dividend and bonus issue history,

Balance sheet,

From the balance sheet above, we can see that company only having Rm491,000 short term loan with net cash of Rm172.64mil at March 2015. I believe with the strong cash on hand, company can continue pay total dividend of 12.5sen same as past two years.

Recently company also starting to buy back the shares,

Chart,

From the chart above, the share price was all the way still below the down trending line but seem like supported at Rm2.18 and with the recently company share buy back at Rm2.22 i believe share price will supported around this level. Is good to collect the counter during this side way period while waiting for the dividend.

Current price - Rm2.23
Dividend Yield- 5.6%

My Target Price - Rm2.80

Happy Trading!

Regards,

Nick Loke

FPI (9172) - Cash is King with Good Earning and Good Dividend

Prosonic was established in 1989 at Port Klang. One of the major manufacturer of high quality speaker systems in Malaysia. A Public listed Company in Bursa Saham Kuala Lumpur on 17 June 1994. We are located in different location with 2,908,170 square feet in total of land area.

Prosonic is principally involved of producing variety of products which include Home Theatre Audio Systems, Satellite Speaker, High-End Audio Systems, AV Racks, WI-FI Internet Radio, WI-FI Internet Adaptor, Outdoor Speaker, Bluetooth Speaker, Receptor Radio, CD Radio & Car Speaker Series for our Multi National customers brand names such as SONY, JVC, SHARP, BOSTON, AE, PANASONIC & KENWOOD, etc.

We provide coordinated process services ranging from design, engineering till finished goods from our eight companies having core business in manufacturing of electrical and electronic components, as well as complementary activities in sales and service support such as following:

1) Formosa Prosonic Industries Bhd, Port Klang, Malaysia
2) Formosa Prosonic Industries Bhd, Sg. Petani, Malaysia
3) Formosa Prosonic Manufacturing Sdn Bhd, Port Klang, Malaysia
4) Asia Pacific Card & System Sdn Bhd, Port Klang, Malaysia
5) Printed Circuit Board, Port Klang, Malaysia
6) Acoustic Energy Ltd, Cirencester, United Kingdom
7) FP Group Limited, Dong Guan, China
8) Formosa Prosonic Mexico, Tijuana, Mexico

Prosonic is constantly striving for expansion and greater automation in its manufacturing processes in order to produce more technically-sophisticated and technologically advanced components, which will allow customers to place a premium on their finished products.

Quality is our spirit! Prosonic has a highly requirements and stringent quality control to ensure the product is produced with best quality for all our Multi National customers. Our products are being manufactured under internal advanced quality system and requirement to meet international MNC's requirements and standards.

Prosonic has a group of experienced engineering team with huge engineering capacity and well equipped facilities. With this capability, it enables Prosonic to step further for Development Team (R&D) to develop new product continuously.As a market leader, Prosonic knows that a good speaker system is not just about a speaker box that produces reasonably good sound, but is also a continuous search for new technology and innovative design.

We are also Accredited by International Quality Standard and make us stronger to compete in the market and build up confident with our customers.

In the past years, we have been awarded by major customers in recognition of Prosonic effort in quality, services, delivery, product reliability and others.

Prosonic proven expertise in the speaker system technology, it is often we consulted to customers on every stage of development, from design, materials up to finished goods.

Backed up by the Company's commitment to stringent quality control, its business thrust continues to be on customer satisfaction, product excellent and research & development.

FPI Client List,

FPI performance,

From the above, we can see that the company's earning is recovering and getting stronger in the latest two quarter which is eps of 3.7sen and 3.6sen in Q3 and Q4.

The company also just ex a 7sen dividend on 29 Mar 2016 which payment date on 15 Apr 2016. This is the highest dividend paid in the past few years.

From the balance sheet above, the company show very strong cash in hand and 0 short term loans. Total 148mil on hand which is equal to around Rm0.60 net cash per share on hand based on 50sen par value.

In the latest quarterly report posted on 26 Feb 2016, the company total cash is 158mil which is equal to Rm0.639 net cash in hand every shares.

Charting,

The company listed since 1994, highest price hit at Rm1.89 in year 1996 and coming down all the way with trending lower line. This is the second times break above the downtrend line with resistance at Rm1.15. With the current performance and strong balance sheet, can the company come back visit their glory day? 

Today the share price have been sell down to lowest 85sen and RSI show is oversold below 10%. I believe is a good entry point for medium term trading while the fundamental of the company getting stronger.

Summary,

Current price Rm0.85

Dividend yield around 8.23%

PE: 9.176

Net cash per share : Rm0.639

Short term target price: Rm1.00

Medium-Long term target price: Rm1.89

Happy Trading!

Regards,

Nick Loke

APB (5568) - Shining Star awaiting to Shine

APB Resources Berhad and its Subsidiaries (APB Group) are involved in the fabrication of specialized design engineering equipment for petrochemical process industry, chemical industry, oil palm processing industry, paper mill industry and power generation industry, and the provision of non-destructive testing services. APB Resources Berhad is listed on the Main Market of the Bursa Malaysia Securities Berhad. In the past few quarter, the company posted a very good performance profit and the earning is increasing in the past 3 quarter, and the recent earning up to 8.21 cent EPS, NTA of the company also raise to Rm1.71 per share. From the balance sheet stated above, the company had 0 short term loans and is net cash position of Rm39.95mil which is around 35 cent per share. In the latest quarter, posted on November 2015, the company net cash had increase to Rm58.897 mil which is equivalent to 52 cent per share! Nearly increase 49% compare to net cash a year ago!! In year 2014, HLIB cover APB resources before, which stated 90% revenue is from export! Recently the strengthening of USD, has benefited a lot export  companies and the share price for those related company also up a lot, some even up more than 100% in the past few month ago. At 2014, HLIB had given a fair value for the company of Rm2.07 per shares, and recently the earning had increased, but the share price is still sleeping. Dividend record, In the past few years, the company dividend payout is 6.5cents per shares, which normally announce on March 3cents and June 3.5cents. Which around 5.5% yield based on current price of Rm1.18. Chart, From the chart above, we can see that, huge volume was collected around Rm1.40 per share in November 2015 period and the share price started fall down slowly will small volume, and yesterday closing price was at Rm1.18 which is around 15% lower from the huge volume price. Summary, APB is one of the high export company, USD strengthen will continue benefited to the company. With the current div yield of 5.5% and the net cash of the company keep on increasing, i believe the company will shine soon. In the past 4 quarter, total earning of 16.58cents, which around PE 7.117, the share price is trading very cheap and very low risk to collect compare to huge volume which collected at Rm1.40 or higher. My Target Price : Rm1.66 (PE :10) (Potential upside 40%) HLIB Target Price : Rm2.07 ( on 2014) Thank you. Happy Trading ! Regards, Nick Loke