Sunday, 30 September 2012

Fong Siling : Scientex?

Fong Siling Vs Warren Buffet again!! 

Something really on for plastic manufacturing! If you notice, Scientex and GWplas announced for suspension of trade in KLSE on 28 September. Possible of combination of this 2 companies?? GWplas shoot up from bottom to RM 1.08~!

Reasons for Scientex!!

  • Fong Siling said: Growth! Company growth!!
  1. • Scientex FY12 net profit of RM83.9mn! It had just announced its QE results, you can see the EPS rose to 10 cents! With the recent expansion mode of the company, there are more upside growth of the eps for the company! Its eps attributable to both its manufacturing (+8.8% YTD) and property segment (+11.7% YTD).
  2. The encouraging growth from its manufacturing segment was driven by the installation of one new stretch film line in September 2011 and 2 new PP strapping band line in February 2012. More important are coming 2 new manufacturing line in March 2013, which will increase production line to 22%~~
  3. Dividen policy of 30 % of revenue! wow! coming Dividen at 6 cents in December! 
  4. ROE : > 15% ( fulfilled Warren Buffet philosophy!)  this is as compared to its peer, BP plas and GWPlas with ROE < 15% 
  5. Increasing NTA RM 2.44, and reduce Debt (Debt / Equity ration 0.5), with Current ratio 1. 47~~~!!! 
  6. Active share buy back by directors and company!
  7. Don't surprise! It is the 5th Biggest company in the world for this line of sector! 

If it's share price dropped below RM 2.35 ( support), it will be a bargain. Hopefully, with the recent GE 13 around the corner, its price will drop!! hoho!! 

Update on 3 October, Scientex plans to buy GWPlast at RM 1.2 / share. 
Expanding mode!!

Tuesday, 18 September 2012

Fong Siling? Warren Buffet?

Is it Fong Siling's Idea or is it Warren Buffet?    KSL

 What do you think of when you reach a news like this??
1.  NTSP cutting:

NUSAJAYA:  Huge crowds packed the newly-opened Legoland theme park yesterday as tourists from other states and Singapore took advantage of the long weekend to visit the latest family entertainment hub in the country.
Hotels around here reported full occupancy because of the spillover effect from the theme park which opened on Saturday.
Newly-opened KSL Resort had a corporate booking for 220 rooms on Saturday and all the guests visited Legoland before checking into the hotel for their annual dinner.
Its sales and marketing director, John Ting, said the hotel registered a high occupancy rate over the weekend and had benefited from Legoland.
Pulai Springs Resort marketing communications manager Charlotte Monterio said the hotel's accommodation package, which comes with two Legoland passes, was selling like hot cakes since it was launched last month.
She said 180 room packages were booked for the first two days of the opening.
"We are very happy with the response and will continue with our room promotion package by tying up with the theme park."
Johor Tourism, Domestic Trade and Consumer Affairs Committee chairman Datuk Hoo Seong Chang said the state government was having discussions with tourism industry players to increase room supply in Iskandar Malaysia.
He said the birth of a world-class theme park in Johor would undeniably bring in more tourists, hence the need for more rooms during school holidays and weekends.
"Legoland has not only benefited the hotel industry, it has also brought businesses to the retail and food sectors, too.
"The economic spillover is tremendous.
"With a new attraction in Johor other than the Johor Premium Outlet, we foresee a sharp rise in tourists, especially during school holidays," he added.
More than 35,000 annual passes offered at special rates have already been sold, with more than 60 per cent being taken up by locals.
The RM700 million theme park, which occupies 30ha in Iskandar Malaysia, comprises seven parks with different themes.
Legoland Malaysia features replicas of iconic Asian landmarks such as the Petronas Twin Towers, the Great Wall of China, India's Taj Mahal and Singapore's Marina Bay, recreated using more than 25 million Lego bricks.

2. Deal coupons?

  • Potential Growth is always the core of investment, as we can see here, with the opening of legoland, KSL likely will inprove its earnings significantly! 
  • Second question will be the price of the stocks that value for the entry... almost 2 years low ( RM 1.3 - RM 2.0), good current ratio and Debt equity ratio! 
  • Thirdly, is it a monopoly business? i guess not..... BUT, how about the land owned by KSL near the Iskandar area... do you think it is the hidden Gem? Value of the lands are priceless!
  • I think that it is just matter of time, the company will increase the eps and thus the return will be more than 15% perannum!!!
RM 1.48 now? What say you? 

Sunday, 16 September 2012

MR Fong Siling's Pick -- ECS

Why do Mr Fong Siling likes ECS??
  • The company proposed for 1-2 bonus in September 2012, but based on the price in early this year RM 1.2 to highest of RM 1. 63 ... The gain is ? 
  • The Fundamental analysis by MR Fong Siling base on the 8 criterias:
  1. Standard one: The current Ratio: 

    Current assets (Current Assets) can be turned into cash within one year of the assets, current liabilities (Current Liabilities) liabilities must be repaid in one year.
    The current ratio is current assets ÷ current liabilities derived from the ratio, the higher the better.
    ECS bill in the first quarter of March 31 this year, the current ratio of 306 (million) ÷ 156 (million) = 1.96, far more than twice as belonging to super.

    Standard: working capital (Working Capital)
    Current assets less current liabilities of ECS working capital on March 31 this year, 306 (million) -156 (in millions) = 150 (million), and more than sufficient to meet the operating funds needed .
    No wonder the company is no debt, there are 40 million ringgit in cash on hand.

    Standard three: liabilities to shareholders' funds ratio (Debt-To-Equity Ratio)
    Total liabilities divided by shareholders' fund income ratio, the smaller the number, said the company is relying on existing funds rather than borrowing to do business, so the smaller the number, the better.
    ECS debt to shareholders' funds ratio: 150 (million) ÷ 154 (million) = 1. Financial steady as a rock, 3 points.

    Standard Four: The net income per share (EPS)
    Annual income divided by the number of shares was the higher the better.
    ECS last year's net income per share was 20.70 cents, a medium deserve.

    Standard Five: earnings ratio (PER)
    The share price divided by net income per share, for the number of years required to recover the cost of the investment.
    Calculated ECS RM1 share price of 40 cents, the current PE ratio of from RM1.40 ÷ 0.257 = 5.5 (times), the international standards of the PE ratio is usually 10 times, the ECS 5.5 times PE ratio is low, deserved 3 points.

    Standard 6: The rate of return on shareholders' funds (Return On Quity, ROE)
    Annual income divided by shareholders' funds, thanks to a number.
    This ratio is used to test the efficiency of management, the higher the better.
    ECS net profit of 29 million ringgit last year, the shareholders' fund of $ 47 million ringgit, so shareholders fund rate of return of 29 (million) ÷ 147 (million) = 19.7%, 3% several times higher than bank fixed deposits.

    Standard Seven: dividend yield (D / Y)
    The dividend per share divided by the share price of the sum.
    The dividend yield is usually standard for calculating the net dividend.
    ECS last year sent a net dividend of 8 cents to 40 cents of the price of RM1, dividend rate of 8 cents ÷ 140 cents = 5.7%, almost twice as high than bank deposit interest rate of 3%, deserved 3 points.

    Standard Eight: per share, net tangible asset value (NTA)
    Shareholders' funds divided by the number of shares was the.
    ECS per share net tangible asset value of RM147 (million) ÷ 120 (million shares) = RM1.23, slightly lower than the market price of a stock, you should get two points.
    Summarize the eight standard, ECS made 24 points in 22 minutes, the company said strong fundamentals.
    ECS Sihai stack Zhang family control, has 25 years of history, the agent of the products of the world's more than 30 computer and mobile phone companies, distribution points up to 2500.
    Business fundamentals like the foundation of a building, the fundamentals are strong, said a firm foundation, and can withstand stormy attacks.
    Before buying, if they can do their homework to find out the strength of the stock fundamentals, according to the above method can reduce the risk. Risk reduction, equal to improve the odds.

Agent over 30 brands
The company is one of Malaysia's largest information technology products agency and distribution company, ICT is the abbreviation for Information & Communications Technology.Malaysia has over 2500 distribution points.
The company's agents and distributors of products, including laptop computers, personal computers, copiers, software, network, telecommunications equipment, data storage, etc.. More than 30 kinds of brands, including HP (Hewlett Packard), IBM (IBM), Cisco (Cisco), Microsoft (Microsoft), Apple (Apple), Dell (Dell), Oracle, the Epp application (Oralle, Epson), Samsung (Samsung), Pakistani law network (Buffalo), Adobe, Juniper, Blue Coat, Vmware, Google (Google), Canon (Canon), Philip (Philips) are a well-known brand in the world.
Singapore-listed ECS Holdings (ECS Holdings), associated ECS, ECS Holdings owns a 41% stake in the company, the Asia-Pacific region's largest IT products agent and distribution companies in China, Thailand, Malaysia, , Singapore, Indonesia and the Philippines, with more than 23,000 distribution points.

Growth? Is there a growth? Most probably! 

Monday, 3 September 2012

Mr Fong Siling- Why BREM?

冷眼- BREM 

Reasons for BREM
  1. NTA RM 2.71  , in fact with the land in KL bought at RM 3000, the NTA is more than RM 2.71
  2. Coming dividend to be announced in September, 6 cents . ( as in the Q1 result)
  3. RM 1.18-1.19 consolidate for sometimes, with stable volume. ( downside really Minimum) 

Why did Fong Siling choose BREM holding? This company bought 4.70 acres of land in 1994, 17 years ago, to 3,000 ringgit per acre of 638 ringgit, but also an incredible thing.There are even more incredible is that the company in 1994, to 7,000 ringgit, or 572 ringgit per acre, buy in Klang Po, another period of 12.23 acres of permanent right to land, the report said that this section of land development . 
Corporations are building shares Bainian, but focus on the industrial development in Kedah, Petaling Jaya, Klang Po and Wu Gila mess, and Kuala Lumpur Batu Si rock Mo has a lot of land, and development activities are concentrated in the Si Rock Mo, 412 condominium units Orchid Garden (Villa Orkid) Sale. According to the annual report, the company has in Batu 9 above land, 30.50 acres, in 1995 and 2005 to buy, only 17.49 ringgit per square foot value in the accounts.
Brem nearly 70 million ringgit to buy the 33.28 acres of development land in Kuala Lumpur Tamkang, on the 48 million ringgit to buy Petaling 7.577 acres plant for commercial development, these two sites a total cost of $ 100 million 18 million ringgit , almost equal to the paid-up capital of the company, the company said the move was "trying to use a reasonable purchase price of land to supplement the basement. Land rose faster than house prices. 
Let me give Brem, for example, is to illustrate a fact: Most of the listed companies, especially industrial stocks and focus on industrial development, construction shares owned land, the value is underestimated. Especially in the last two years, the industry rose, land value or more than the house rapidly.
Real estate owned by the listed companies, the value of I do not know doubled the number of fan to the market price of the re-valuation of the real estate owned by the listed companies, net tangible assets per share must be greatly increased.
Some valuable land, the company that is secret, thinly traded, their stock is not favored by investors, stock prices lagged behind the general trend provides a good opportunity to buy undervalued shares only at a reasonable price, for serious investors .How can the value of the mining industry shares?
The first step, please remember the following several mathematical per hectare (ha) equal to 2.4711 acres (acre); equal to 43,560 cubic feet per acre (sf); per square meter (sq.m.) is equal to 10.7309 cubic feet (sf).
The annual reports of the listed companies in the industry table "sometimes ha, sometimes acres, sometimes square meters, sometimes Youyi feet calculating land area, you must understand the metric and imperial conversion, in order to calculate the value of each feet.
The second step to identify the land price, compared with the book value in the Annual Report, you can find out whether the land value of the listed company is undervalued.Buy land undervalued stock, equal to cheap to buy the land, did not buy the land red tape troubles, easy against as cash.

Saturday, 1 September 2012

Ivory- Master Fong Siling's stock

Fong Siling's Ivory stock... Will it rock?

According to Mr Fong Siling, choosing a property stock should take into account relevant factors
Above is based on the point of view of the assets, PE ratio and dividend rate to assess the value of the stock before you buy, it is best to be done more homework:
1. Basement? When to buy? Can be used for the development of many years? 
What is the location of the land? Area room demand it? 
3 of the company's liabilities. 
4 sold the house, but no payment is received how much? (Unbill Sale). 
5 five years to the company's performance? Management is actively developing business?

Well, what so great about IVORY? 
  • latest Q2 results showed eps 7 cents ++ , including the 3 cents from Q1, it is almost very easy to achieve another 4-5 cents eps in next 2 quarters! 
  • Especially with the launch of Bayan Mutiara projects at the end of 2012. (GDV: RM 10 Billion).
  • So, the growth factors should not be an issue here. “We will also be launching the much anticipated City Residence project, Island Resort phase four Boutique Bungalow  and Bayan Mutiara phase one by 4th quarter this financial year,” he said in a  statement yesterday (Aug 30). IPGB revenue posted a decrease to RM47.2mil compared to its corresponding quarter of RM66.3mil. The Group foresees the revenue to improve following impending exclusive projects that are scheduled for commencement in the second half of the year.Meanwhile, the net debt equity ratio has been reduced from 0.72 time as at Dec 31, 2011 to 0.59 time as at the June 30, 2012 borrowing status.The current year-to-date net profit has amassed RM30.8mil. The Group expects its business prospects for the financial year ending Dec 31, 2012 to be favourable

I just cant figure out why some of the insiders ( Ooi Choi Keat, Lim Hock Siu), still selling out the shares of Ivory despite the promising results from the Ivory, anyone can share here?