Stock Quick Glance: L&G[3174]

LAND & GENERAL BHD

Background:
A property and development company(which also involving in Education and other segments like plantations, hospitality and part of oversea development in Australia)

1. Why should we quick glance of this company?
- High ROE, PE <10, and got dividend!

- Huge cash flow(Total of 363mil of cash and not to mentioned the inventories, receivables and the tax that the company going to get back)

363mil/1078mil of shares =  33cents of cash per share
This means paying 41cents(current share price) to owned 33cents of cash and 8cents worth of stocks!
Anyway, this does not mean anything but obviously this counter is undervalued!

Besides, the health financial reports and the growing revenue speak louder than words!

2. Future developments:
- Astoria Project(GDV of 845mil)
- Foresta Phase 2(GDV of 490mil)
- Landed residential(GDV of 280mil)
- so on...

*btw, don't forget their NTA of around 60cents(which considered the share is also trading at 35% discount of current price)

There are few things to take not about the company are:
- weak property market sentiment
- material mitigation(late completion of project)

- not to forget the low debts of 85mil
- ICULS will also dilute the EPS in future


Property is expensive now? perhaps considering invest in the company with cheap price?
*I do holding L&G shares but just wanted to share what is noticed, it's not a buy/sell call as just for reference only

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

more posts

Fisher's 15 Points In Fundamental Analysis

All good principles are timeless, and Fisher's famous "Fifteen Points to Look for in a Common Stock" from Common Stocks and Uncommon Profits remain as relevant today as when they were first published. The 15 points are a qualitative guide to finding superbly managed companies with excellent growth prospects. According to Fisher, a company must qualify on most of these 15 points to be considered a worthwhile investment:

1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years? A company seeking a sustained period of spectacular growth must have products that address large and expanding markets.

2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? All markets eventually mature, and to maintain above-average growth over a period of decades, a company must continually develop new products to either expand existing markets or enter new ones.

3. How effective are the company's research-and-development efforts in relation to its size? To develop new products, a company's research-and-development (R&D) effort must be both efficient and effective.

4. Does the company have an above-average sales organization? Fisher wrote that in a competitive environment, few products or services are so compelling that they will sell to their maximum potential without expert merchandising.

5. Does the company have a worthwhile profit margin? Berkshire Hathaway's BRK.B vice-chairman Charlie Munger is fond of saying that if something is not worth doing, it is not worth doing well. Similarly, a company can show tremendous growth, but the growth must bring worthwhile profits to reward investors.

6. What is the company doing to maintain or improve profit margins? Fisher stated, "It is not the profit margin of the past but those of the future that are basically important to the investor." Because inflation increases a company's expenses and competitors will pressure profit margins, you should pay attention to a company's strategy for reducing costs and improving profit margins over the long haul. This is where the moat framework we've spoken about throughout the Investing Classroom series can be a big help.

7. Does the company have outstanding labor and personnel relations? According to Fisher, a company with good labor relations tends to be more profitable than one with mediocre relations because happy employees are likely to be more productive. There is no single yardstick to measure the state of a company's labor relations, but there are a few items investors should investigate. First, companies with good labor relations usually make every effort to settle employee grievances quickly. In addition, a company that makes above-average profits, even while paying above-average wages to its employees is likely to have good labor relations. Finally, investors should pay attention to the attitude of top management toward employees.

8. Does the company have outstanding executive relations? Just as having good employee relations is important, a company must also cultivate the right atmosphere in its executive suite. Fisher noted that in companies where the founding family retains control, family members should not be promoted ahead of more able executives. In addition, executive salaries should be at least in line with industry norms. Salaries should also be reviewed regularly so that merited pay increases are given without having to be demanded.

9. Does the company have depth to its management? As a company continues to grow over a span of decades, it is vital that a deep pool of management talent be properly developed. Fisher warned investors to avoid companies where top management is reluctant to delegate significant authority to lower-level managers.

10. How good are the company's cost analysis and accounting controls? A company cannot deliver outstanding results over the long term if it is unable to closely track costs in each step of its operations. Fisher stated that getting a precise handle on a company's cost analysis is difficult, but an investor can discern which companies are exceptionally deficient--these are the companies to avoid.

11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition? Fisher described this point as a catch-all because the "important clues" will vary widely among industries. The skill with which a retailer, like Wal-Mart WMT or Costco COST, handles its merchandising and inventory is of paramount importance. However, in an industry such as insurance, a completely different set of business factors is important. It is critical for an investor to understand which industry factors determine the success of a company and how that company stacks up in relation to its rivals.

12. Does the company have a short-range or long-range outlook in regard to profits? Fisher argued that investors should take a long-range view, and thus should favor companies that take a long-range view on profits. In addition, companies focused on meeting Wall Street's quarterly earnings estimates may forgo beneficial long-term actions if they cause a short-term hit to earnings. Even worse, management may be tempted to make aggressive accounting assumptions in order to report an acceptable quarterly profit number.

13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders' benefit from this anticipated growth? As an investor, you should seek companies with sufficient cash or borrowing capacity to fund growth without diluting the interests of its current owners with follow-on equity offerings.

14. Does management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur? Every business, no matter how wonderful, will occasionally face disappointments. Investors should seek out management that reports candidly to shareholders all aspects of the business, good or bad.

15. Does the company have a management of unquestionable integrity? The accounting scandals that led to the bankruptcies of Enron and WorldCom should highlight the importance of investing only with management teams of unquestionable integrity. Investors will be well-served by following Fisher's warning that regardless of how highly a company rates on the other 14 points, "If there is a serious question of the lack of a strong management sense of trusteeship for shareholders, the investor should never seriously consider participating in such an enterprise.

Source

TOYOTA Price Increase as USD goes STRONGER

TOYOTA Price Increase as USD goes STRONGER :(

YTL Power deal expires, bids for 'short-term' contract

PETALING JAYA: Tenaga Nasional Bhd (TNB) has stopped buying electricity from YTL Power International Bhd following the expiry of a power purchase agreement (PPA) between the two companies.

“With the expiry, YTL no longer exports power to the grid effective Oct 1, 2015,” TNB said in a statement yesterday.

It is unclear how the latest development would impact YTL Power. The company had previously said it was in discussions with the Energy Commission (EC) for an extension of the PPA.

Shares in YTL Power were unchanged at RM1.52, with 4.26 million shares being traded. The stock price was adjusted from its Friday’s closing price of RM1.62 as it was traded ex-dividend yesterday.

In the statement, TNB said the PPA, which was signed back on March 31, 1993 with YTL Power’s subsidiary – YTL Power Generation Sdn Bhd – expired on Sept 30, 2015.

“Concurrently, a leasing agreement which YTL had entered into with TNB to lease the latter’s land in Paka in Terengganu and Pasir Gudang in Johor to build its power stations was also affected,” TNB said.

The power giant said that the PPA signed with YTL Power was its first PPA with an independent power producer (IPP), and the only PPA that was based on a take-or-pay mechanism for a period of 21 years.

It has been reported that YTL Power has been selected under a “short-term capacity” bid by the EC to continue to supply electricity from its existing facility.

YTL Power had previously been quoted as saying that the company was currently in discussions on the terms and conditions and that the new PPA was expected to be signed for the period from March 1, 2015 to Dec 31, 2018.

According to sources, the bidding process for the new PPA has already closed and the result is expected to be announced soon.

“The short-term contract is expected to supply about 580MW of electricity, and should YTL bag the contract, it will continue to supply electricity from its existing power plants,” sources said.

YTL Power has two gas-fired power plants in Malaysia - one in Paka, Terengganu, and another in Pasir Gudang, Johor – with a combined generation capacity of 1,212MW.

Other IPPs, namely, Powertek Bhd, controlled by 1Malaysia Development Bhd (1MDB) and Malakoff Corp Bhd’s Port Dickson Power Sdn Bhd are also bidding for an extension of their PPA contracts.

Meanwhile, it is believed that YTL Power has received a conditional offer from the EC.

Among the conditions include YTL Power resolving land issues with TNB, as well as its gas supply agreement with Petroliam Nasional Bhd.

Recall, the EC had earlier announced that it would be conducting an open-bidding exercise to extend expiring PPAs to address a power shortage due to a delay in two major power plants and to maximise the use of the existing assets.

The two plants are 1MDB’s 2,000MW coal-fired power plant called Project 3B, and Project 4A, which is a 1,000MW-1,400MW gas-fired power plant to be built in Johor.

StarBiz had reported that while fast-tracking the construction of new power plants was one way of addressing the problem, industry players have opined that a more immediate solution was to look at repowering expiring power plants such as YTL Power, Powertek and Port Dickson Power.

“It may not be a long contract. They could just tap the existing plant to fill up the gap should there be a shortfall in the energy-generation capacity in view of the delays,” said an industry observer.

So far, the EC has extended the concession agreement for five IPPs, with a generating capacity of 2,915MW. The extension has been ongoing since 2011 when the EC took over the awarding of new power plants in the country in a move to revamp the national electricity-generation sector.

According to an analyst, about 15% of YTL Power’s profits are from its local power plant business, while the remaining comes from its overseas assets.

In the financial year ended June 30, 2015 (FY15), YTL Power’s net profit fell 25% to RM901mil from RM1.2bil in FY14. Its revenue was also down to RM11.93bil from RM14.44bil a year ago due to the lower units of electricity sold and the lower electricity price as a result of lower fuel prices.

source

Stock Quick Glance: GOB[1147]

GLOBAL ORIENTAL BERHAD

background: 4 core business segments:
- property development, which is engaged in the development of residential and commercial properties, and sale of development land(highlighted red is contributed largely for the current revenue, refer to Q1 2016)
- construction, which is engaged in the construction of property development projects and other similar construction activities
- property letting, which is engaged in the rental of properties
- investment holding

Quick glance:
What is the Company's plans:
- Clear off debts & future development plan (Source)
- highlighted below shows they are desperate to clear the debts as last Q2 sold two more lands for cash...

How much debts?
- 262.8mil

How to clear?
- Cash from balance sheet shows that the company has 69mil (not to mention 39mil inventories and 35mil of receivable)

- selling da:men for 488mil

Total of cash = 557mil(assume if da:men confirmed sold)

Net cash total/share is 0.647(12.5% upside of current 0.575) as 294.2mil(557mil-262.8mil) / 454.7(mil of shares)

However, I can also conservatively calculate GOB share price at around 0.78 per share(regardless of other segment's revenue, see Pic A) by Q2 2016 as 353.1mil/454.7(mil of shares)
353.1mil = 488mil + 39mil inventories + 35mil of receivable +16.3mil cash coming in future(see below) - total of debts

Pic A:

Conclusion: GOB is considered undervalue even current weak market sentiment for property segment!
*I didn't hold any share of GOB as just write for fun, it's not a buy/sell call as just for reference only
*too bad no dividend

Other info:


btw, sharing a chart of after AMPROP sold off Kesas for 280mil cash last time at April 2014.
- estimated upside of 80-90%

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

more posts

EcoWorld: 刘启盛重提实达集团遭恶意收购 “财富可夺团队抢不走”

The "Team" is the key of making EcoWorld so successful. EcoWorld the "shadow" of SP Setia has potentially becoming the "taikor" of the property sector in very short of time. Impressively, they have planned to go beyond Malaysia(as targeted oversea spots like Hong Kong, London, Singapore and many more). Not to forget the future plan for setting up the first property investment SPAC(special-purpose acquisition company). I would say he is a guy with great vision and undeniable he is a well-planner. Salute!

（吉隆坡27日讯）你可拿走我的资产，却带不走我的团队！

针对一手苦心经营成功的实达集团被“恶意收购”，丹斯里刘启盛今日开腔评论此事，声称没人可带走曾与他打拼天下的团队。

他说，在2012年，实达集团被“恶意收购”，然后他在短短3年内创办绿盛世集团，并达到今天的成就。

“你可以拿走我的资产，但就是带不走我的工作人员、我的团队。”

绿盛世集团主席刘启盛今日出席安联银行中小企业革新挑战比赛宣布20人入围名单大会时，与入围者这么指出。出席此大会的嘉宾包括安联银行执行副总裁兼交易及中小企业金融组主任许永瑞。

团队是成功关键

刘启盛呼吁企业家重视栽培团队里的人才，因现在创业不如以前，并非有金钱就能取代人才。

“以前的年代，身为老板的你只要有钱，就能裁掉你的员工再聘请新的一位来取代，但现在却不同了。

“你的企业是否成功，与你的团队有莫大关系，因此你们要专注在培训及留住这些团队。”

刘启盛表示重视年轻人才，他们能提供很多创新点子，有助于企业发展。

努力改善生意

刘启盛也鼓励没有成功入围20强决赛的企业家勿放弃，并继续努力改善其生意。

他也提醒出席者，要成为卓越的企业家并不容易，并形容一名企业家每天都会面对新的问题及新挑战。

与此同时，他呼吁企业家，在成功后，不要忘了回馈社会。

Source

Hope you enjoy reading, good luck and to be continued...

more posts

Today USD vs MYR

non-stop dropping... :(
when will be the end?

[Reshare] Nazir Razak: Moody's 'junk' rating due to negative coverage of Malaysia

Well...  undeniable, 1MDB really is a time bomb which dragging down Malaysia reputation. What a 'junk' rating!

"PETALING JAYA: Financial controversies in Malaysia need to be addressed, urges prominent banker and CIMB Group chairman Datuk Seri Nazir Razak.

"This is worrying. The market is much more negative about Malaysia than the rating agencies, taking us into 'junk' category, way below our fundamentals," said the brother of Prime Minister Datuk Seri Najib Tun Razak in a post on his Instagram on Thursday.

Nazir, who is also CIMB group chairman, suspects that credit-default-swap traders have placed Malaysia in the "junk" category due to the large amount of negative coverage in publications such as the Wall Street Journal, Financial Times, and the New York Times.

"All 'capital' people read at least one, if not all of them. We have to change the current narrative about Malaysia with answers or legal suits; can't just ignore them," he warned.

Though Nazir did not specify what Malaysia had to answer for, the country has made international headlines for controversies involving the Government-owned investment arm 1Malaysia Development Berhad (1MDB)." source