KIALIM - In The Way Up.

Kia Lim Berhad (KIALIM 6211) is an investment holding company. The Company is engaged in the manufacturing of clay common bricks, facing bricks, block bricks, M211 bricks, brick tiles, chamfered paving bricks, H-shape pavers, EconBlocks, and roofing tiles, which are marketed under the brand name of Clayon (Kia Lim Group). The Company's production capability is approximately 180 million pieces of bricks per annum approximately 400,000 tons of clay per year or 15 million pieces per month. The Company's subsidiaries are Kangkar Raya Batu Bata Sdn. Bhd. and Syarikat Kia Lim Kilang Batu Bata Sdn.Bhd. At present, approximately 75% of its total production output is for domestic markets, mostly to Johor, Melaka, Kuala Lumpur and Selangor, while the balance is for overseas markets.

Current Share Price: RM0.665

NTA: RM1.208

EPS (cent): 7.63*

P/E Ratio: 8.72

* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.

This year KIALIM’s share prices move in a steady upward pattern. KIALIM currently trade at RM0.665; it’s an undervalue stock, which it’s share price still a huge discount compare to its NTA RM1.20; with the P/E ratio 8.72; wow, another undervalue gem explored. 

KIALIM’s properties had not been revalued to its recent valuation.  All its properties are FREEHOLD land with last valuation year in 2007. This catch my pretty attention in KIALIM. The NTA is not only RM1.20; it should be higher once revalued. 

Happy Trading

Asianbuffett

TEKSENG (7200), Sun will never die.

TEKSENG (7200), share price increase with the volume increase, uptrend now. Currently trade at RM0.505; TEKSENG’s share price touches RM0.515 last Friday and record a 52 weeks high. 

Current Share Price: RM0.505

EPS (cent): 5.64

P/E Ratio: 8.95

NTA: RM0.560

2QFY14 Report Overview.

Tek Seng Holdings Bhd (TEKSENG 7200) reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported revenue was MYR 70,448,000 against MYR 53,563,000 a year ago. Profit before tax was MYR 12,580,000 against MYR 1,393,000 a year ago. Profit for the period attributable to equity holders of the company was MYR 9,834,000 against MYR 627,000 a year ago. Basic and diluted earnings per share were 4.10 sen against 0.26 sen a year ago. For the six months, the company reported revenue was MYR 122,351,000 against MYR 97,435,000 a year ago. Profit before tax was MYR 14,443,000 against MYR 2,528,000 a year ago. Profit for the period attributable to equity holders of the company was MYR 10,812,000 against MYR 1,012,000 a year ago. Basic and diluted earnings per share were 4.51 sen against 0.42 sen a year ago. Net cash used in operating activities was MYR 1,064,000 against MYR 4,028,000 a year ago. Purchase of property, plant and equipment was MYR 3,508,000 against MYR 4,794,000 a year ago.

The revenue boost up basically due to the revenue increase in one of its business segment - SOLAR TECHNOLOGY. 

TEKSENG (7200), Solar segment contribute to the group 6 months revenue from 1 January 2014 to 30 June 2014 from RM2,550,000 a year ago to RM20,703,000. A very strong profit support to the group financial. Well done Solar Technology! 

Petroleum will be exhausted one day, but Sun will never die. Solar technology will be the next major energy supply in the world.

TS SOLARTECH OVERVIEW

Founded in 2010, located in Penang Science Park Malaysia, TS Solartech is dedicated to the research, development, and production of high-quality solar cells, modules, and PV system. The Company strives to become the world's leading solar supplier through continuous innovation, outstanding production processes, high yield rates, and world-class product efficiency.

TS Solartech was established as a subsidiary of Tek Seng Holdings Group,  a well established PVC products manufacturer for over 30 years.  Since 2010, TS Solartech has become the first Malaysian-owned company that inked contract with a German leading solar equipment maker and equipped with the first automatic solar cell-manufacturing equipment in Malaysia.  Under its leadership, TS Solartech is committed to provide a clean and effective solar energy with affordable price for a sustainable world.

From the beginning of its production in June 2012, TS Solartech has been working tirelessly to boost the output and efficiency. Within two months after commencing volume production, TS Solartech had achieved a yield rate 97% with an average conversion efficiency of 17.6%. TS Solartech plans to continue expanding its production capacity in order to achieve greater economies of scale; by 2015, total installed capacity will reach 640 MW.

As an international manufacturer, TS Solartech consistently provides premium quality solar cells, with outstanding delivery, reliability and a competitive price. By upgrading its product efficiency and service quality, TS Solartech constantly supplies state-of-the-art crystalline solar cells to prominent international module manufacturers worldwide. 

At TS Solartech, it is essential to focus on establishing long-term supplier relationships with major international makers.  In the future, TS Solartech will be forming strategic alliances of upstream polysilicon wafer makers together with downstream module manufacturers and system integration distributors, in order to enhance its competitiveness through vertical integration.

Happy Trading

Asianbuffett

Tea with Waren Buffett

Waren Buffett Quote - Do You Follow This Rule?

Be fearful when others are greedy. Be greedy when others are fearful. 

CHEEWAH 9423 - Ready to Rock & Roar

CHEEWAH, 9423 - Rock & Roar 

Chee Wah Corporation Berhad (CHEEWAH 9423) uptrend now, with the volume increase, currently testing the psychological price of RM0.63, once break this psychological barrier more upside ahead. 

Current Price: RM0.62

Happy Trading

Asianbuffett

JASKITA, Robert Tan Next Target?

JASKITA (8648) is one of the listed companies owned by reclusive tycoon Tan Sri Robert Tan Hua Choon. Robert Tan’s recently big deal by disposal of his controlling stake 36% in GBH (3611) came just three months after he sold off his substantial 19.1% stake in PDZ Holdings Bhd to Pelaburan Mara Bhd in April and his controlling stake in Malaysia Aica Bhd (Maica) to property developer Sunsuria Development Sdn Bhd in October last year. Is he looking at cashing out of his other five listed firms namely, Jasa Kita Bhd, FCW Holdings Bhd, GPA Holdings Bhd, Keladi Maju Bhd and Marco Holdings Bhd? Market highly focuses on Robert Tan’s next target. What is the market prediction of Tan’s next plan? Maybe JASKITA (8648)?

Let’s have a quick look of this counter.

Current Share Price: RM0.19

Performance Review

Total revenue for the financial year 2013 reported of RM62.7 million was 19% higher than that for the previous year while profit before tax increased to RM8.4 million from RM6.3 million for the year earlier. The said profit before tax included an insurance compensation sum of RM1.4 million received by a subsidiary company in respect of a fire mishap which occurred in 2011.

Comapny Profile

Jasa Kita Berhad (JASKITA 8648) is a Malaysia-based investment holding company. Through its subsidiaries, the Company is engaged in the manufacture, assembly and trading of electric motors, power tools, engineering and other industrial equipments, and the provision of management services and logistics-related services. The Company operates in three segments: manufacturing and trading, which include manufacture, assembly and trading of electric motors, power tools, engineering and other industrial equipments; logistics-related services, and investment holding.

Jasa Kita Berhad was listed on Kuala Lumpur Stock Exchange since March 1993. JKB Group was established since 1975 and is primarily engaged in distribution of power tools, electric motors, hand tools, air tools and other industrial supplies.  Beside distribution of industrial supplies, the Group also provides bonded/ non-bonded warehouse services. Jasa Kita Warehousing Services Sdn Bhd was the 1st public bonded warehouse in Malaysia which commenced operation in 1981.

Today, the Group is a well-known exclusive distributor of the world renowned premium quality MAKITA and MAKTEC Power Tools in the local market. Besides power tools, the Group is also a preferred supplier for BROOK CROMPTON, TOSHIBA, EXCEL, FEIMA and other well-known brands of electric motors. Other than electric tools, the Group has also mark its stand in the automotive maintenance industry with its SATA hand tools and KUANI air tools.

Happy Trading

Asianbuffett

ALUMINIUM COMPANY OF MALAYSIA BERHAD, (ALCOM 2674)

Global aluminium price rise since May and hit 2014.58 USD/t at August 7, 2014 due to the global aluminium shortage. Global aluminium producers have done well to curtail output. Coupled with the absence of new smelting capacity outside China (beyond the few being ramped-up now) and moderate demand growth, the market is generally expecting its first supply deficit in a decade from 2014. This favourable development has lifted the sector’s fundamentals and seen the LME’s aluminium cash price breaking the US$2,000 per tonne psychological barrier.

FY14 and FY15 aluminium price estimates to US$2,200 and US$2,400 respectively despite the belief that there is more upside coming.

The global aluminium shortage phenomenon drives the KLSE aluminium stock price. We know that the superstar - PMETAL (8869) has climbed from its low of RM2.31 in April to RM5.95 at the last trading day.

So, today our focus is Aluminium Company of Malaysia Berhad (ALCOM 2674). ALCOM’s share price gap up and its volume increase since last two day. We can see that ALCOM (2674) is trading uptrend now. Will the motivation continuous? Will it another PMETAL?

Let's see its share price movement, 

Current share price: RM0.85

NTA: RM1.34

Dividend: RM0.05

A Quick View of the Company Profile

ALCOM (2674) is the leading manufacturer of aluminium rolled products in Malaysia and the surrounding region. With an output capacity of about 30kt per annum, ALCOM has a sizeable market in the ASEAN region, besides the North African and Middle Eastern regions. Almost half of ALCOM's annual production is exported to markets in Thailand, Singapore, Brunei, Philippines, Vietnam, Taiwan, Hong Kong, Japan, South Korea, Middle East, Egypt and Australia.

The Company's range of aluminium rolled products include:-

1) Specialties which comprise of flat and coil sheets, embossed sheets, cladding sheets, roofing sheets, stamps parts for capacitors are used in the transportation, building and electronics industries;

2) Foil stock for packaging industries, and

3) Bare and coated Fins stock for air-conditioned industries.

ALCOM has been listed on the Bursa Malaysia Securities Berhad since 1969.

Alcom Nikkei Specialty Coatings Sdn Bhd (ANSC), a wholly owned subsidiary of ALCOM was incorporated in 1991 as the first plant outside of Japan to produce pre-coated finstock with Japanese technology supported by Nippon Light Metal Co. Ltd. ("NLM") of Japan.

With strong technical and R&D support from Novelis Inc., and NLM, ALCOM is recognized for its high quality, reliability and product innovation delivering solutions in all of its diverse range of product offerings.

ALCOM's reputation is further enhanced as ALCOM's ultimate parent company Aditya Birla Group of Conglomerate based in Mumbai has built a world class business operation.

Happy Trading

Asianbuffett

CAELY – DIVERSIFIED BRINGS BRIGHT FUTURE.

 

       

CAELY – DIVERSIFIED BRINGS BRIGHT FUTURE.

Caely Holdings Bhd (CAELY, 7154), engages in the manufacture and sale of undergarments under original equipment manufacturer (OEM) arrangement to Europe, Canada, the United States, and other Asian countries. The company also manufactures and sells undergarments under its own brand in Malaysia. In addition, it is involved in the multi-level marketing of undergarments, garments, leather goods, sportswear, and household goods; retail of undergarments and garments; and trade of related raw materials.

In year 2011, the company diversified its business and start to engage in the property development and construction activities. This new segment brings profit to the company and changes its destiny.

For the financial year ended 31 March 2012, the Group has achieved total revenue of RM68.7 million, an increase of RM11.6 million or 20% from RM57.1 million as compared to last financial year ended 31 March 2011. In line with the increase in revenue, the Group posted a profit after tax of RM1.2 million as compared to an after tax loss of RM10.3 million for the same period.  

For the financial year ended 31 March 2013, the group achieved total revenue of RM91.5 million, an increase of RM22.8 million or 33% from RM68.7 million as compared to last financial year ended 31 March 2012. The increase was mainly due to the construction and OEM segments which contributed additional revenue of RM10.5 and RM12.8 million respectively.

	2011	2012	2013
Revenue (RM) million	57.1	68.7	91.5
Change	-	+20%	+33%
Profit After Tax (RM) million	(10.3)	1.2	1.7

There were few years CAELY did not declare dividend, but this year the BOD recommends a proposed single tier final dividend of 1 sen in respect of the financial year ended 31 March 2014. The entitlement and payment dates would be announced at a later date and subject to the approval of the shareholders at the Company's forthcoming Annual General Meeting.

Let’s have a quick look of CAELY’s share price,

Current share price: RM0.55

NTA: RM0.92

P/E: 6.3

EPS: 8.73*

Dividend: RM0.01 (financial year ended 31 March 2014)

* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.

CAELY’s Property Development and Construction Projects:

1)      Mukim Batang Padang, Tapah (27/6/2011)

Development of a parcel of vacant leasehold land measuring approximately 52.79 acres in Mukim Batang Padang, which is located along Tapah Road, Perak. The estimated total GDV is RM145 million, and the estimated profit before interest and tax is RM10.5 million. Estimate complete within 36 months.

The project consists of:

                ·         181 shop lots     

                ·         304 linked, semi-detached and bungalow

                ·         2 parcels vacant lots (1 acres each)

2)      FELCRA PROJECT (7/9/2012)

Award turnkey project for 300 unit Rumah Sesebuah Fasa 1 serta kerja-kerja  berkaitan di Projek Kampung Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak

The Contract period will be for 2 years. The value of the Contract is for a total contract sum of RM 47,936,716.50

3)      GOMBAK PROJECT (22/7/2013)

JV with Kismajaya Sdn Bhd to develop an abandoned project 7.09 acres land for 3 blocks of high rise condo (Block A, B and C). The estimated land area for Block B and C is 2.53 acres and 2.08 acres respectively. CAELY intends to complete the abandoned Block B, which comprise an 8-storey 120 residential condominium units. Estimate complete within 36 months.  

•   Block A had completed by previous developer.
•   Block B (2.53 acres), estimate GDV RM 49.8 million at cost RM 38.2 million (earn RM 11.6 million)
•   Block C reserve for future development (2.08 acres).

4)      FELCRA PROJECT (4/12/2013)

Award two construction contracts from Koperasi Peserta-Peserta Felcra Malaysia Berhad.

i)                   To design, construct and complete additional 770 units of houses in connection with Projek Perumahan Kampung Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak for the contract sum of RM69,041,690.

ii)                  To construct and complete the infrastructure  of the Projek Perumahan Kampong Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak for the contract sum of RM28,214,561

The Contracts are to be complete within a period of 24 months from the date of the contract, with the sum of RM97.2 million.

CAELY’s property development and construction projects in hand are estimated has a total GDV over RM300 million. In year 2013, the net profit margin is 25% for property development and construction segment. 

Diversified into property development and construction segment brings a bright future for CAELY. Its share price (CAELY, 7154) is around RM0.29 a year ago, and now around RM0.52 which is still a discount price compare to its NTA of RM0.92 with a low P/E ratio 6.3

Happy trading

AsianBuffett