2021 Performance Review

Below is the performance for year 2021 since starting to post articles. Monthly performance review will be posted starting this year 2022 to track and monitor investment.

For year 2021, the sectors that performed well were packaging, finance and plantation. 

Packaging Sector

The star performer is definitely BPPLAS. Share price double after declaring bonus issue. Portion of the share was sold at RM2.93 (approx) and acquired again after bonus issue. Thong Guan on the other hand was moderate. Price hovering approx RM2.70 but still appreciated 12%. Better than Fixed Deposit and other unit trusts!! 

Plantation Sector

This sector was good due to high CPO price. Innoprise performed better than HSPLANT due to its dividen policy. However, coming quarter, HSPLANT will declare its dividen so price appreciation is expected.

Furniture Sector

Furniture sector was the worst due to MCO shut down, high shipping cost, labour shortage and material supply chain disruption. I believe this sector will pick up starting second quarter of 2022 and therefore good time to accumalate. HEVEA was a bad investment. Acquired at high price but managed to average down recently so hopefully it can recover soon. Poh Huat and LiiHen are cash rich so nothing to worry.

Finance Sector

RCE Cap was the best performer among its peer. Appreciated almost 100% and sold half. After bonus issue on coming 5th Jan, I will buy back again. ELK-Desa and Takaful were flat.

Others

For industrial manufacturing, Wellcall was a surprise. The share price picked up at the end of 2021. Coming quarters will be good as demand for its product remain strong.

Overall 2021 performance was not bad. The conclusion that can be drawn is better analysis better return and definately needs patience. Wish you all best in 2022! 

2021 Total Dividen

2021 is coming to the end. I have tabulated out the dividen received for the full year of 2021. A total of RM16,275.60 has been received.

The top two contributors are comimg from plantation and financial sectors. The highest dividen contributor is INNOPRISE.

Hope to increase in 2022.   

Taliwork - An Alternative to REIT Dividen

Company : Taliwork Corporation Berhad

Business : Utility sector covering water treatment, distribution, highway concessionaire (Grand Saga), waste management (Southern Waste) and engineering + construction. Most of the business are very stable except engineering and construction. The gem is in water treatment which is recession and COVID proof business.

  

Financial Information

There is no growth of CAGR-revenue. However, there is good CAGR of PAT. Profit margin is reasonable at 26%. Company has bank borrowings but manageable.

Borrowing	MYR (Million)	Cash or Cash Equivalent	MYR (Million)
Long term bank borrowing	328	Bank Deposit	48
Short Term bank borrowing	30	Investment (JV + Associate)	234
		Short Term Cash	264
Total	358		546

 

10 years revenue record

Revenue has been stagnant or declining as there no new business or project.

 

Revenue breakdown

Water treatment, supply and distribution is the biggest revenue contributor (71%). It is a very stable business. The demand of treated water will increase over time. Second biggest revenue contributor is highway concessionaire (approx. 23%). This sector has been hit by MCO lockdown but it will recover very soon.

 

Lates result at glance

 

YoY drop but QoQ increase. Profit margin improved significantly.

 

9 months revenue dropped because of expiration of Langkawi contract. See below.

 

Prospect

Growth opportunity

• RM602million Sg Rasau contract win will last them at least for 2 years.
• New solar assets
• Recovery of highway traffic.

 

 Risk

• Drought that leads to lower water treatment and distribution.
• Toll hike suspended

 

Dividen Chart

An attractive of 6 cents per annum is expected and pay every quarter. 75% payout ratio is really good.

 

Can the they sustain the dividen payout? Assuming they pay 1.65 sen every quarter then total dividen is 6.6 sen equiavalent to RM132 million. The cash flow of operation is sufficient to pay the dividen.

 

 

 Technical Analysis on Chart

The price is trading at the range of RM0.80 to RM0.90. It has been trending up due to recent award of Sg Rasau project. As you can see from the chart the price very stable and not much of fluctuation. Those seeking stable dividen with moderate long term capital gain can consider buying at low price.  

At time of writing, I don’t have any Taliwork shares. Follow my updates on other shares at FB 股海捞真。

Takaful Malaysia - Islamic Insurance

Company :  Syarikat Takaful Malaysia Keluarga Berhad

 

Business : Insurance business breakdown to family Takaful (life + medical) and general Takaful (fire, motor, travel etc). Company also has business in Indonesia but Malaysia is still the largest contributor.

 

Clear growth of CAGR for revenue and PAT. PE of 8.35 is fair although some peers have lower PE.

 

 

Clear trend of growth and disrupted in 2020 due to COVID. However, 2021 seems picking up again. 

Revenue Split:

The revenue split between family and general takaful is approx. 70% to 30%. Under General Takaful motor is the largest contributor of 66%.

 Comparison with peer

 

Company	AIG	LPI	TAKAFUL
Price (RM)	13	13	3.7
PE	4.8	15.18	8.35
Revenue (latest FY)	5.9B	1.6B	2.9B
Profit Margin (%)	7.7	21.4	11.7
CAGR Revenue	5.6	4.8	10.6
CAGR PAT	11	1	18.4
Dividen Yield	4.80%	5.15%	3%
ROE (%)	11.57	17.97	21.94
(Efficiency to generate profit)
Dividen payment	Yes	Yes	Yes
Nos shares (million)	177.51	398.38	835.62

 

Comparison on potential 30% share price appreciation:

Company	Allianz	LPI	Takaful
Current price	13.04	13.98	3.66
30% appreciation	16.95	18.17	4.76
Peak price	16	17	7

 

 Lates result at glance

Generally lower due to COVID lockdown.

 

Prospect:

• Recovery play
• Capturing mass market & civil servants (leading position)
• Islamic insurance gaining popularity
• Digitalize marketing and online distribution

 

 

Risk:

• More death claims and surrender of policy (effects from Covid)
• Indonesia business affected.

 

Dividen every year end. Dividen yield is around 3% but pay only once a year.

 

Technical Analysis on Chart:

 

On the down trend due to heavy dumping from EPF. There is no clear sign of support at this moment. Price is actually very attractive.

 

At time of writing, I don’t have any Takaful shares yet but planning to make an entry.

 

Greatech - Riding on EV Boom!

Company : Greatech Technololgy Berhad

Business:

Factory automation in the booming sectors of solar, semiconductor, energy storage (EV) and life science. The key drivers/contributors are solar and EV sectors. Semiconductor may be cyclic but solar and energy storage is growing rapidly as the world is shifting to clean energy. Look at Telsa Motor and you will know why!

 

 Fundamental:

Company is in net cash position and no problem for expansion. See quick snap shot below.

 

 

 Important events in 2020 which see the revenue jumped as a result from solar and EV sectors.

 

 

 

Hopefully they can secure more orders from EV energy storage market. EV will be a global trend with China, USA and Europe leading the market. See note from below link.

https://www.power-technology.com/news/electric-vehicle-sales-surge-in-2021/

 

 

Nice profit margin. However, no information of CAGR revenue and PAT. Company is still new in Malaysia stock market.

 

Revenue track record

 

Revenue and profit will surpass 2020 and profit margin is healthy.

Peer comparison:

There is no direct comparison to Greatech (correct me if I am wrong). We can take a look at Vitrox, an inspection equipment manufacturer for semiconductor. The PE value for Vitrox is currently at 60. 

Interesting to note that Vitrox take some years to reach RM100 million profit. Greatech achieved it in short span of time. It just shows that EV and Solar are explosive sectors!  

 

  

Geographical Breakdown on revenue:

 

Two largest region of revenue contributors are Asia and America.

 

Product revenue split:

 

Risk:

• Limited number of customers.
• Cukai Makmur !!
• Order book not replenished fast enough.

 

Note from their report Q3 report

Quick estimation of 2022 revenue based on their outstanding order book of RM426 million will be : RM426x12/14 = RM365 million

The company need to secure 1 or 2 PLS order in the next 12 months otherwise profit will remain stagnant.

 

Prospect:

• Factory expansion in Batu-Kawan Penang
• Incorporated a subsidiary in USA. Hopefully this can help to secure more orders.
• Growth potential in Solar and EV sectors.
• Already gain reference from biggest thin-film solar module customer.

 

Technical Analysis:

 

At time of writing, I don’t have Greatech shares. However, I am waiting for opportunity to buy so to ride on the trend !

Petronas Gas - Benefits from Natural Gas Hike?

Company : Petronas Gas Berhad

Business :

A gas infrastructure company rather than a pure natural gas selling company. The company has the infrastructure of processing gas, transport gas, LNG regasification and provide utilities to other petrochemical plants. There 4 business units and the summaries are as follow:

 Gas processing

Gas transportation

LNG regasification Terminals

Note: LNG – Gas is cool down for easy transportation. Regasification is turning LNG to gas again.

 

 

Utilities

 

 Good profit margin but very small CAGR in revenue and PAT.

 

10 years revenue record:

Profit margin stable at around 35%.

 

Growth opportunity

• The price is regulated by EC, so no growth even natural gas spike up. See note from the CEO.
• New gas power plants.
• Construction of Cogen plants.
• Building LNG storage tank no.3 in Pengerang (not sure any financial contribution).

 

 

Risk

• No risk business.
• Not even effected by COVID or any lockdown!

 

Dividen History

Attractive and pay dividen every quarter as business is super stable. Total for FY 2021 should be at least 82 cents and potential higher!

 

Technical Analysis on Chart

Not much of fluctuation on price as major shareholders are big institutions.  Any price near RM16 is good to accumulate for its dividen. This is very stable business for the company. Gas is still relevant for many years to come.

 

At time of writing, I don’t have any PetGas share.