Feb 22 Performance

SHARES ADDED

• Thong Guan @ RM2.60
• MagniTech @ RM1.93 @ RM1.97 @ RM1.99
• ATRIUM @ RM1.47
• FAVCO @ RM2.50 @ RM2.55
• KAWAN @ RM1.67

PACKAGING

BPPLAS profit improved QoQ and YoY. Share price increase 13%. Thong Guan on the other hand dropped to -5%. The Q4 result from Thong Guan is yet to release.

 

FURNITURE

LiiHen annouced 3.5 cent dividen. Q4 profit improved by 165% compared to Q3. The worst is probably over but still have issue like labour, resin cost and high shipment cost.  Pohuat is flat but notably investment guru, COLD EYE has emerged as top 30 shareholders. It is good time to add Pohuat!

PLANTATION

Both INNOPRISE and HSPlant are star performers this month. Superb profit and revenue due to high CPO price. HSPlant announced 15.5 cent dividen and share price spike to RM2.89 with an appreciation of 50%. INNOPRISE announced 6 cent dividen and share price rocketed to RM 2.01 with an appreciation of 72%.

I dispose all HSPLAN share and two third of INNOPRISE shares. Capturing profit of 35% for HSPLANT and average of 52% for INNOPRISE.  

Lesson to be learned here is to capturing maximum profit. So timing is important. Usually share price will soar for few days or weeks if all sentiments are good.

  

OTHER

SamChem and CSC Steel perform well. Share price improved by 19% and 18% respectively. Both counters registered profit improvement on Q4. CSCSteel declared 14 cents dividen, higher than expected. Samchem declared 1.5 cent. Proft taking activity took place at RM1.00. However, SamChem is good for long term growth and may accumalate when price drop below RM0.90.

New kids on the block are FAVCO and KAWAN. FAVCO has announced 8 cents ( a bit disappointed). KAWAN Q4 result is yet to release.

FINANCE

No surprise from finance sector except better result in Takaful. RCE and ELK-DESA are flat.

Favelle Favco - Benefit from Oil & Gas Recovery?

Company : FAVELLE FAVCO – Benefit from Rising Oil Price?

Business:

Manufacture cranes and intelligent automation for Oil & Gas under Exact group. Revenue split is approximately 77% for cranes and 23% for automation. Their business is highly expose to Oil & Gas, shipyard and high rise building. The crane business has foothold in USA, Europe, Middle East and Asia.

 

 

 

Fundamental:

Company has huge cash pile of over RM300 million so no problem to pay dividen every year.

 

Low profit margin and almost no growth in terms of CAGR revenue and PAT. This is partly due to slump of Oil & Gas sector.

 

Revenue stagnant at around 550 million and profit margin is compressed.

 

Lates Q3 result:

PROSPECT

 

There are few positive things on FAVCO.

• Recovery of Oil price – especially Ukraine-Russia tension
• Shareholder share buy back recently

 

Revenue Split

 

58% of the revenue are generated outside from Malaysia. Automation is 100% from Malaysia.

Dividen:

No clear dividen policy but it is about 40% and once a year. Hopefully it can go back to 15 cent which will give 6% yield based on RM2.50

 

Technical Analysis on Chart:

Price does not fluctuate much and possible to go back pre-Covid level of RM2.80 – RM3.00 if Oil & Gas industry recover well.

At time of writing, I have some FAVCO shares.

Jan 22 Performance

SHARES ADDED

• Hevea (average down)
• MagniTech
• WellCall (Top up @ RM1.20)
• CSC Steel (@RM1.30)

PACKAGING

Packaging generally flat. Hopefully Q4 results will be good and expecting some dividen from both companies.

 

FURNITURE

LiiHen sprang a surprise by annoucing bonus issue of 2 for 1. Share price jumped 30 cents from RM2.70 when bonuse issue was announced.  Poh Huat remain flat. Hevea is still hovering around 46 cents. Price seems to be stable at this range and hence decided to average down by adding some more shares.

PLANTATION

Both INNOPRISE and HSPlant look good as dividen is coming soon. HSPlant may annouce higher dividen as profit is reaching record high.  

OTHER

SamChem is good for technical play. Price is trending up and will take profit when reach RM1.00.

CSC Steel is another technical play with 7 cent dividen coming. WellCall has pulled back after appreciated about 30%. Price down to RM1.20 and managed to top up some at this level. Since then price going up again to RM1.26. WellCall is constantly paying out dividen. ATRIUM has annouced Q4 results and 2.55 cent dividen. 

FINANCE

This sector is flat. RCE has been dropping after bonus issue. Takaful is no change but 12 cents dividen has been received in January 2022.

 

CSC Steel - Short Term Technical Play

 

Company : CSC Steel – Short Term Technical Play

Business:

Manufacturing of Cold Roll Coil (CRC). Very competitive landscape because of foreign dumping from Korea, Vietnam, India and China. Margin is low, less than 10%!! 2021 is improving because of higher steel price and China is curbing CO2 emission.

Manufacturing plant is located in Melaka. The major shareholder is CSC Steel Taiwan. It is a well-managed company with profit every year except 2014.

The usage of CRC as follows:

• Household appliances : Furniture, lockers, cabinet filling, hinges, computer cases etc
• Construction : Roofing, garages, steel sheds, gutter, window frame etc
• Industrial : Tube, scaffolding, steel mesh, drum, air conditioning ducting etc
• Automotive & Tooling : Tooling, hardware, machinery, parts etc

 

Fundamental:

Company has huge cash pile of RM300 million so no problem to pay dividen every year.

 

 

Very low profit margin and no growth in terms of CAGR revenue and PAT.

 

 

Revenue stagnant. Forecast revenue for 2021 will be around RM 1.25 billion if Q4 recovers well. The business is largely depending on domestic spending especially construction and industrial activities.

 

Cost of sales related:

• Raw material cost of Hot Roll Coil.
• Labour ?

 

Lates Q3 result:

YoY and QoQ dropped because of lockdown and factory are not in production. Hopefully Q4 will recover to RM300 million.

 

Prospect:

 

Major Shareholders:

Dividen:

Dividen policy is 50% of its profit. Assuming 7 cents dividen that will translate to 5% dividen yield in coming 4 months. There is room for price appreciation of 15-20%

 

 

Technical Analysis on Chart:

 This is for short term of 3 – 6 months holding. Buy at your own risk.

 At time of writing, I own some CSC Steel shares.