AHB Holdings Berhad: Qualification of Opinion in External Auditors' Report

"Qualification of Opinion in External Auditors' Report on Audited Financial Statements for the Financial Year Ended XX XXX XXXX"

The above statement is one of the red flags for investors. If your invested company has received such 'warning' sign, you must be very conscious now, and take necessary action for the company - SELL or HOLD or BUY. If you have no idea why you have such company in your portfolio, then you probably should consider to clear them out immediately.

So, what we can learn from AHB Holdings Berhad case?

Firstly, open the latest quarter report of AHB via the following links:
http://announcements.bursamalaysia.com/edms/edmswebh.nsf/all/983309B7FD27B7B248257A7A00657AE8/$File/AHB%20FY2012Q4.pdf

Next, please take note on its "Revenues" from its income statement, that is, 3.5million per quarter and 17.4million per year.
 

Everything is Electronic Now: Bursa Malaysia SMS me!

"RM0.00 COMPANY NAME dividend RM AMOUNT paid out to your bank a/c on DATE - Bursa Depository."

This is the first SMS from Bursa Malaysia to my personal mobile phone. It tells me that one my invested company bank-in dividend to me. What a good idea. However, why it is just started to be implemented? Maybe nobody thought this idea previously. Or simply because the technology is just completed (due to security issues, most of the time).

GAS MALAYSIA BERHAD (GASMSIA) : Little Analysis and Insight

Based on the Prospectus notes of GAS MALAYSIA BERHAD (GASMSIA) from Bursa Malaysia,
page 159: Historical audited consolidated Financial information: profit after tax (PAT) in 2011 is around RM229million.

Next, go to page 187: 12.4 Proforma consolidated balance sheets: Proforma II - After proforma I and IPO: total number of share is 1,284million.

Based on these two informations, we can get EPS of GASMSIA = 17.83sen.

Since the IPO price for retailer is RM2.20, PE = 2.2/0.1783 = 12.34.

NTA = RM0.71.

Compared to KENCANA PETROLEUM BERHAD PE, GASMSIA looks more attractive.

However, can GASMSIA maintains or even grow its EPS in future? More investigation and time are needed.

HeveaBoard Berhad (Hevea, 5095) : 2011 Performance Review

Since the annual report haven't come out, this review only based on the last four quarter reports of HeveaBoard (Hevea, 5095).
Firstly, let's have a look at the activities from the four quarters as follows:

Quarter 1, 2011
"The lower PBT was due mainly to the lower USD exchange to Ringgit as more than 80% of the Group’s revenues were derived from the export market and transacted in US Dollars that had resulted in lower revenues and profit margins.
The production volume for particleboard was lowered due to short supply of wood material caused by the severe flood encountered in the early part of the year and prolong rainy season.
Prospect for the current financial yearThe Group expects the particleboard prices to improve further and RTA furniture to be stable with
increasing demand."

HeveaBoard Berhad (Hevea, 5095) : The Potential of China Market and its Operation Segments

In the previous post, we have study some background information of HeveaBoard Berhad (Hevea, 5095). But two questions haven't been discussed, that are:
1. How are the profits of Particleboard manufacturing sector and Ready to Assemble (“RTA”) furniture sector, and which one has better profitability?
2. Is it significant for HeveaBoard to export 50% of its particle board to China market? These two questions will be discussed further in the coming post.

Therefore, in this post, we will step-by-step discuss two of these questions?

1. From the fourth quarter quarter report of Hevea, Segmental Reporting, as stated below:

HeveaBoard Berhad (Hevea, 5095) : Introduction and Background Study

In this post, I am going to share my homework about HeveaBoard (Hevea, 5095). Still different strategy I use to evaluate Hevea Board since Hevea made a Restructuring Schemeunder Section 176 of the Companies Act 1965 pursuant to the Court Order dated 14 December 2009 to overcome the unprecedented drastic fluctuation in currency exchange rates against the USDollars at the end of 2008/early 2009. Therefore, as you can see from the table below, Hevea only managed to earn 1sen in the financial year 2008 and its market price reached less than 20sen only.

More Specific Title and Direction for Xaivier Blog: From Penny to Blue chip in Stock Market Investmen - Announcement

Start from today, I have set a more specific title and direction for Xaivier Blog after around two years blogging in Xaivier Blog and investing in stock market.
The main reason for me to make this change is I have found out what I can share with in this blog in the long term, that is, "From Penny to Blue chip in Stock Market Investment". As a value investor, I like to find potential Blue chip companies and buy them when they are still penny stock. Although somebody may said what I invest in this kind of companies is the so-called growing company, it doesn't matter. Because the core objective of investment is to earn money instead of distinguish the terms or jargon used. In fact, for me, growing is also one of values which investors should consider as well.

M-MODE BERHAD (MMODE, 0059) - Quarter Review Q4 2011 : Suspicious Profits? Red Flag? Mistakes?

Income Statement:
EPS: 1.16sen
Total 4 quarters: 7.77sen
NoteL Provision for and write off receivables and inventories increased.
Gross profit margin decreased.

Balance Sheet:
Cash amount increased
Term loan (noncurrent and current) increased marginally.
Net Tangible Asset: 24.53sen

KEN HOLDINGS BHD (KEN, 7323) - Q4 2011 Quarter Report Review: Growth momentum is expected to continue?

From KEN HOLDINGS BHD (KEN, 7323) - Q4 2011 report: 

Income Statement:
Lower Revenue, but better profit margin.
EPS = 7.76sen
Total 4 quarters EPS = 25.53sen

Balance Sheet:
Cash amount: RM62,149,000
Cash per share: RM62,149,000/(95,860,000) = 64.83sen per share (Including Treasury shares and it is approximately only)
Zero borrowing.
Net assets per share = RM1.61

MMODE (0059): Employee Share Option Scheme (“ESOS”) 2011

Here is some of my homework of MMODE (0059). It may consist of mistakes due to human errors. So, don't take it so serious and please let me know. Thanks

According to the MMODE annual report 2010, the ESOS of MMODE actually have been given out since 25 April 2005

"Proposed employee share option scheme of up to ten percent (10%) of the issued and paid-up share capital of M-Mode ("Proposed ESOS")" which is around 96,267,000 x 0.1 = 9,600,000 shares

After given a bonus 1:2, total issued shares became 144,400,500 (2006) compared to 96,267,000 (2005).

KEN HOLDINGS BHD (KEN, 7323) - Q3 2011: Within Expectation

Everyday, one of the happy activities I do is to read the financial reports of my invested companies. What I feel about from the financial report is that it is really very difficult to earn 10sen from RM1.00 annually. You may think that it is a easy task. Let me clarify properly: get profit from RM0.10 from RM1.00 annually is equivalent to interest rate of 10% annually, which is 300% more than our current fixed deposit rate (around 3.3%). So, are you still think it is a easy task to complete annually?

Let's go back to the main focus today, KEN (7323) third quarter report also comes out already. So far so good. After receiving so many Cash from receivable, finally, KEN did what I expect it to do from last quarter, that is, CAPEX.

OPCOM HOLDINGS BHD (OPCOM, 0035) Q3 Quarter Report 2011: So Far So Good.

Personally, I quite like OPCOM business even using the special dividend I received from OPCOM to top up some more OPCOM shares to enjoy the grow of its future earning. Although this Q3 report is relatively less attractive compared to preceding year's corresponding quarter and preceding quarter, OPCOM still maintain its attractive areas (Zero borrowing, low CAPEX, Strong Cash flow, lots of Cash).

Let's take a look at what OPCOM comments from its Q3 report:
Review of Performance
The Group registered revenue of RM22.6 million and profit before tax of RM6.7 million in current quarter as compared to revenue and profit before tax of RM34.5 million and RM9.3 million respectively in the preceding year's corresponding quarter. The sales of the Group's products was affected by the festive season which resulted in lower revenue contribution in current quarter. However, profit before tax margin for the current quarter was higher as there was relatively more sales of higher margin products.

M-MODE BERHAD (MMODE, 0059) - Q3 2011 :Keep Moving and Growing

M-MODE BERHAD (MMODE, 0059) Third Quarter Report comes out early yesterday night. What a surprise!! The new strategy implemented by the company look really work well. Firstly, let's see what is the comment from the company:

"The Group recorded an impressive increase in revenue as compared to the previous year's corresponding quarter from RM7,580,000 to RM17,610,000. whereas, the profits attributable to shareholders has increased by RM3,014,000 to RM3,913,000 as compared to previous year's corresponding quarter of RM899,000. The increase in revenue was mainly due to new strategic directions set by the Management in leveraging our strong execution capabilities and providing a wider premium portfolio of media assets to increase user' value and loyalty to our services."

When Stock Market Reaches its Bottom - Based on Global semiconductor industry association Sales Reports

Unpredictable Market Trend- Based on FBMKLCI, the bull started from 2003 May to 2004 Mar, then continued adjustment for around 2.5 years. The strong bull continues climbing the mountain from Jun 2006 to the peak at Dec 2007 (around 1.5 years). After that, the bear came immediately started from Jan 2008 to Oct 2008 (around 10 months), then a baby bull was reborned and grow slowly for Nov 2008 to March 2009 (around 5 months). When the baby bull was strong enough, it started to climb the mountain from April 2009 to Jun 2011 (around 2.2 years). So, what will happen next? What can we refer to?

Based on Global semiconductor industry association Sales Reports, when all the negative news were reported (December 2008 to April 2009) only during the FBMKLCI market reached its bottom (Nov 2008 to March 2009). However, this is the hardest period for all investors when all negative and bad news continue bomb-blasting the mind of investors to make bad decision (selling their shares in the bottom of the market).

Bursa Malaysia: How to Find Announce of Listed Companies

As an investor, it is very crucial to find the first hand information of their invested company. Newspaper, however, does not give all the latest announcement of all listed companies in Bursa Malaysia. Therefore, as a shareholder, it is good idea to update your company yourself from Bursa Malaysia official website. In Bursa Malaysia, announcements are sorted into Current, History and Archives. All the latest announcement can be found in Current. Previous announcements that were published in last several months can be found in History. Archives records all older announcements that cannot be found in Current and History.

In this post, I am going to share with you how to check the announcements of listed companies in Bursa Malaysia.

OPCOM HOLDINGS BHD (0035): Mini Review

I bought OPCOM at market price of RM0.805 last month (August 2011). The reasons for me to buy OPCOM simply because it has stable earnings (extension two-year contact with TM), strong internal cash flow generation, zero borrowing and no bad dividend.

Moreover, with the market price of RM0.805 to buy OPCOM, which contained RM0.56 cash per share, is equivalent to I only bought it with RM0.245 per cash. With expected EPS of 16sen annually, I will get back 100% investment capital within two years. Therefore, I believe that is the main reason why I was braved enought to enter the market during the period when bear market news were everywhere in the market.

GLOBETRONICS TECHNOLOGY BERHAD (GTRONIC: 7022) - Summary and Overview of 2011Q2 report

This is some summary and overview of the second quarter report of GLOBETRONICS TECHNOLOGY BERHAD (GTRONIC: 7022):
Revenue Summary:
Revenue from external customers during the 6 months ended 30/6/2011 Vs 30/6/2010:
Malaysia = RM101,367,000 (2011) Vs RM81,802,000 (2009)
China = RM5,549,000 (2011) Vs RM0  (2009)
United States = RM17,615,000 (2011) Vs RM36,245,000 (2009)
Singapore = RM11,757,000 (2011) Vs 11,270,000  (2009)

Obviously, the improvement was mainly supported by local market (Malaysia) and new market (China). As most of us know about the condition of US, the revenue from US was dropped about 48%. Luckily, this negative impact was offset by the strong Asia market.

SAPIND (7811) - SAPURA INDUSTRIAL BHD - Fundamental Analysis 3 - Intrinsic Value

After knowing the Business strategy, Segments and Prospect of SAPIND (7811) in first Fundamental Analysis and its financial condition plus profitability in the second Fundamental Analysis, in this post, I will going to show how to make a good deal.

SAPIND (7811) - SAPURA INDUSTRIAL BHD - Fundamental Analysis 2 - Financial Condition and Profitability

After knowing the Business strategy, Segments and Prospect of SAPIND (7811) in last Fundamental Analysis, in this post, I am going to discuss the financial condition and profitability of SAPIND. This is my strategy in stock market investment, that is, first of all, I must understand its basic business structure. After that, I must make sure that the financial condition is healthy. And then, I must investigate whether this business is profitable or not. Finally, I will calculate whether its market price makes it a good deal?

Let's go back to the today topic, SAPIND (7811), Fundamental Analysis 2 - Financial Condition and Profitability.

Part 1 : Financial Condition

Based on the last seven years data (2005 to 2011), the current ratio maintained around one, the acidic or quick ratio also maintained around 0.8, and the cash ratio also maintained around 0.2. However, it is worth to highlight that although the working capital also maintained around 4.8million, the net income to working capital ratio increased from 88% (2008) to 432% (2011). That was the reason why SAPIND able to give 14sen + 13.8sen (proposed) in 2011 fiscal year.

SAPIND (7811) - SAPURA INDUSTRIAL BHD - Fundamental Analysis 1 - Business strategy, Segments, Prospect

In this first fundamental analysis of SAPIND (7811), we will focus on the business strategy, business segments and its prospect.
Business Strategy of SAPIND:
"Despite the positive business environment, the Group is aware that we cannot rely purely on market trends to fuel our growth especially given the highly competitive nature of our business. Therefore, we took strategic steps to empower our potential in the three core aspects of our business, namely our commercial, technical and operational capabilities during the year under review."

Chairman:

TAN SRI DATO’ SERI IR. SHAMSUDDIN BIN ABDUL KADIR

Sapura Industrial’s Business Strategy:

“Be Competitive: Commercially, Technically and Operationally”.

Commercially:
"The Group’s focus will be on building business scalability with domestic market players. SAPIND is also looking forward to work with leading global players in the local market and are confident that they will be able to appreciate the value that SAPIND can bring to the table in terms of the quality of our products and services."