Fong Siling: ABC bank (1288)

Current down turn due to uncertainty in Fed 's Momentary Stimulus plan, poor PMI of China dragged down the HKSE. Despite there is still room of drop, let's us take a look at ABC bank , HK.

NAV(HKD)	2.8765
EPS(HKD)	0.5607
PE	6.40
DPS(HKD)	0.1950

Reasons for ABC: 

1. ROE > 15%
2. PE < 10
3. 5 stars world class bank
4. Dividend yield at 5%
5. Increase EPS
6. MOST IMPORTANT THINGS: China is the world second largest economy center with big populations, I can see FUTURE GROWTH for the company is so strong here!!!
7. Currently almost touching year low! 

Fong Siling: Sapind

Master Fong Siling said, to choose a good stock, pick a stock with
1. High Dividend
2. Capital Appreciation / further growth of the company
3. Able to resist the drop in Stock market.

Among them, Sapura Industrial fulfill all these criteria.
But, due to its reduce EPS and poorer result last year ( which EPS of 18 cents for year 2012), its share price at discount to its fair value!

It had been linger around RM 1.3-1.5 for quite a long time. It is time for its recovery soon!
Reasons for Sapind:
1. PE < 10 , EPS 18 cents
2. Future growth ( given its strategic plan for expansion )
3. NTA RM 1.1
4. High dividend.
5. Currently at almost year low!

The 7th Biggest Share Holder! Master Fong! 

Fong Siling: Parkson! ? Buy on downturn?

PHB’s 3QFY13 revenue increased 0.3% QoQ to RM932.8m (+1.6% YoY) coupled with improved earnings from RM74.2m to RM76.9m QoQ but declined -24.9% YoY. Historically the highest contributing quarter, PHB’s YTD results have not met our estimates. In the near-term we continue to see its earnings to be dragged down by China’s underperformance. We are downgrading our recommendation to Neutral with a rolled-over TP of RM4.17 based on our FY14F estimates. In our recent management meeting we do believe the group is taking the necessary measures to revive its China performance through i.) scaling back on store openings, ii.) focus on improving current stores and iii.) expand to 2nd and 3rd tier cities that have limited competition.

3QFY13 results. PHB’s revenue improved marginally YoY (+1.6%) due to new stores’ contribution combined with its current operations. We assume in the near-term as Parkson Retail Group (China – 71% revenue contribution to PHB) experiences weaker demand (+1% YoY) coupled with rising costs mainly from higher rental expenses (+31% YoY) and staff costs (+25% YoY), the recovery could be slower than expected.

Same-store-sales growth (SSSG). 3QFY13 SSSG growth for Malaysia (+8.6%), Indonesia (+1.2%), China (-2%) and Vietnam (+9.9%) continue to be affected by weaker consumption coupled with respective country factors. For Malaysia and Vietnam, the reported quarter benefited from festivities due to the shift in sales to 18 days later (FY13) of the Chinese Lunar New Year and Tet calendars compared to FY12. The lower than expected SSSG for Indonesia was attributed to lower sales of the Plaza Semanggi, Jakarta store from nearby competition which we understand is a short-term impact. Management aims to improve SSSG through i.) targeted promotional activities including improved productivity of floor space, ii.) refurbish and upgrade existing stores and brands, iii.) improve operating efficiency via cost rationalization and iv.) Merger and acquisition opportunities for retail and/or property.

This is the comment from most of the financial analysts recently. They suggested for "HOLD" and "SELL" call for Parkson.

But, What Master Fong Siling sees is different!

REASONS:

• Downturn is always the best time to catch the share at discounted price!
• EPS drops to 29 cents , but PE around 11 for BIG BLUE CAP! it is relatively cheap compare to other blue chip!
• Strong brand!
• Currently on expansion mode to expand business in  CHINA, S.E.A ( foresee long term EPS to return soon! ) 
• Heavy share buy back by company!
• At current year low of RM 3.8! it is definitely a GEm!

Fong Siling : Tecnic

Reasons for TECNIC:

1. Cash of RM 40 Million ( cash rich, debt free company)
2. EPS: 43 cents and PE of 7!!! normally distributing 50% of annual net income as dividends paid to shareholders, dividend 25 cents last year. 
3. Due to capex and expansion this year, Tecnic is giving 5 cents dividend for this year!. Next year should be boom again!
4. Currently almost at year low!
5. NTA RM 2.5! 

Year low! Let's chase it before it sky rocket! 

Fong Siling: Amedia Revisit!

Looks like after the recent rally , some Fund Managers start to collect Amedia again. You can clearly see two green bar pushing the volume and price higher. With the volume almost stabilize, looks like it is going to break through the resistance at RM 0.18.

Keep finger cross, it will move and break RM 0.20! 

By the way, don't forget the solid fundamental of this company!

May Rally

Recently, after BN had won the election, the market seems to kick start its bull rally.

• Success: Hit year high RM 1.31 , Coming Dividen of 6 cents!
• Cscstel: Hit year high RM 1.45, Coming Dividen of 7 Cents! also reported increase EPS > 200% to 4 cents ++
• Opcom: Hit high of RM 0.81 , of course , if you know the Who is the CEO of the company!
• Brem: Hit high of RM 1.25, this is really an undervalue stock which good dividen yeild! 
• ECS:  hit high of RM 1.25! this company is a gem! It gets most of the distribution business for smart phones!
• MSC: start it new Q with positive EPS!!!!

Well done! Let's Rock! 

Fong Siling: Success Transformer!

1) Continuous 10-year record of profitability
  
Ten consecutive years can surely not too much to maintain a profitable company, which proves that the company management minister is quite good, but also reduces the possibility of false accounts to buy stocks is to buy equity in the company to make money is make money for shareholders, buy this company's stock must be held for the long-term, continuous accumulated wealth, in order to get rich. Earned a 20% or 30% put the stock to sell, it is difficult to get rich. . .

  2) a stable dividend

  Price ups and downs of Man does not know stable or higher than the bank's dividend is to bring investors a stable return.

  3) low price-earnings ratio

  Times price-earnings ratio lower than the price to be value investment

  4) growth

  Buy the stock, be sure to keep track of company news, the company must have to grow to attractive returns to investors, such as corporate earnings for two or three quarters of a large number of dropped or loss, not any particular reason, it shall immediately retireshares.

So, Why Success?

1. Good EPS and with increase EPS likely from the O&G sector which the company recently invest in.
2. good Dividend yield with recently announced 6% dividend
3. PE of 4-5
4. NTA:  RM 1.66 which is 53 cent discount from current share price! 

Success! Let's Success!