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Saturday, April 30, 2011

Ideal Jacobs IPO

The opening date of Ideal Jacobs (Malaysia) Corporation Berhad IPO is 29-04-11 and the closing date is 06-05-11. The IPO price is RM 0.27 and issuing house is MIDF 640 and be listed in ACE Market tentatively on18-05-11.  Worth to apply or subscribe Ideal Jacobs IPO.


Public Issue Of 30,000,000 New Ordinary Shares Of 10 Sen Each In Our Company At An Issue Price Of 27 Sen Per Ordinary Share Payable In Full On Application Comprising:
• 2,000,000 New Ordinary Shares Of 10 Sen Each Available For Application By The Public; And
• 28,000,000 New Ordinary Shares Of 10 Sen Each For Private Placement To Selected Investors
In Conjunction With The Listing Of Our Company On The Ace Market Of Bursa Malaysia Securities Berhad.

More on recent IPO news analysis Price Target and Fair Value, here.
http://politemarket.blogspot.com/search/label/IPO

From Ideal Jacobs
Ideal Jacobs (Malaysia) Corporation Berhad is an investment holding company with subsidiaries of Ideal Jacobs (Xiamen) Corporation and Ideal Jacobs Corporation (Thailand) Limited. Our areas of expertise include graphic overlays, nameplates, custom labels, membrane switches, fabric over foam gaskets, die cut components, injection molded panels and machined parts. We serve clients in the telecommunications, electronics, banking and pharmaceutical industries. Our geographic reach spans from Mainland China, Hong Kong, Taiwan, Malaysia, Thailand, Philippines, other countries in Asia, Poland and Russia.

Recognized as a leader in identification and labeling solutions, Ideal Jacobs provides a diverse range of products including EMI shielding, gaskets, injection molded filler panels and membrane switches.
Ideal Jacobs takes pride in our continual effort to provide our customers with the best quality, service, products, and innovative solutions.  Our strength is our ability to create new ways of approaching problems, finding solutions and implementing them in the shortest time possible. Our combined management systems ensure that Ideal Jacobs generates maximum production with minimum waste. Markets that we provide our services to include:

Electronics
Telecom Infrastructure
Medical Devices
Pharmaceutical
Public Accessibility
Automotive
Industrial
Photonics

At Ideal Jacobs our emphasis is to create value for our customers in today's complex business environment.  We have the ability and know-how to adapt to our customers' ever changing requirements. Whether the job calls for researching alternative materials, sending a resident engineer to work on-site with a client or a new business opportunity, we are confident in our ability to establish a successful relationship with existing and prospective customers.


Vision
To be able to satisfy the needs of our customers whether it means utilizing existing or new equipment, existing or new technology or creating new solutions where none existed before.

Slogan
We live by our ability to innovate.

More on recent IPO news analysis Price Target and Fair Value, here.
http://politemarket.blogspot.com/search/label/IPO

Ideal Jacobs to raise RM8.1m from IPO
29 April 2011 Business Times
Ideal Jabobs (Malaysia) Corporation Bhd, manufacturer of industrial labels and nameplates, will raise RM8.1 million from its initial public offering (IPO), non independent and non executive chairman Andrew Jacobs said today.

He said about RM800,000 in proceeds would be used to construct an industrial label manufacturing plant in the northern part of the country which would be ready in the fourth-quarter while RM1 million would be set aside as working capital.

The plant is estimated to produce approximately three million pieces of screen labels per annum, Jacobs told reporters after launching the company's prospectus today.

Jacob also said RM1.5 million would be used for the establishment of an industrial label manufacturing plant in Suzhou, China, while another RM1 million would be used to launch a new production line at its factory in Thailand which produces engineered thermoplastic composite products.

"With the proposed IPO, we will be able to strengthen our position in our existing markets and undertake a bigger manufacturing load," he added.

The company will offer 30 million shares, at an issue price of 27 sen per share, for the forthcoming listing scheduled on the ACE market of Bursa Malaysia in May.

Two million shares will be offered to the Malaysian public while 28 million shares will be available for private placement to selected investors. - Bernama


-------------------

Ideal Jacobs signs underwriting agreement for upcoming IPO
Posted on March 5, 2011, Saturday
KUCHING: Ideal Jacobs (Malaysia) Corporation Bhd (Ideal Jacobs) has recently signed an underwriting agreement for its upcoming initial public offering (IPO) on Bursa Malaysia’s ACE Market, which would take place this year.

In a statement released from Kuala Lumpur yesterday, the group said under the agreement, MIDF Amanah Investment Bank Bhd (MIDF Investment) would be the adviser, sponsor, sole underwriter and sole placement agent for Ideal Jacob’s IPO.

Ideal Jacobs’ chairman and founder, Andrew Jacobs remarked that the signing of the underwriting agreement signified a vital step towards the group’s objective of listing on the local bourse.
“Besides that, the IPO will provide us the access to the capital market to fund our future development and expansion plans,” he added.

Bursa Malaysia approved the admission of Ideal Jacobs to the official list, comprising the listing and quotation of its entire issued and paid-up share capital of some RM12 million – involving a public issue of 30 million new ordinary shares in Ideal Jacobs – on the ‘Industrial Products’ sector of the ACE Market.
The signing would confirm the underwriting of Ideal Jacobs’ two million new ordinary shares, to be made available for application by the Malaysian public via balloting. A total of 28 million new ordinary shares of the company would be reserved for private placement to selected investors.

MIDF Investment’s head of corporate finance, Yong Lee Mei commented, “We are honoured to play a significant role in Ideal Jacobs’ listing, as we are proud to be associated with its impressive growth journey. This IPO marks yet another landmark achievement for the company and we look forward to being a prominent partner to Ideal Jacobs in its next phase of growth.”

Incorporated locally by a US-based holding company in May 2009, Ideal Jacobs’ core business is focused on the manufacture of industrial labels and nameplates, as well as laser/die-cut products. Its secondary business is in the fabrication of plastic parts.

Regionally, Ideal Jacobs’ subsidiaries include Ideal Jacobs (Xiamen) Corporation and Ideal Jacobs Corporation (Thailand) Ltd; located in China and Thailand, respectively.
“China and Thailand’s GDPs (gross domestic product) for 2011 is expected to grow at nine and four per cent, respectively – led by the manufacturing industry. Also, with the forecast of continuing growth of the manufacturing economy in our current markets, I believe there is room for us to grow and sustain ourselves in this environment,” said Jacobs.


More on recent IPO news analysis Price Target and Fair Value, here.
http://politemarket.blogspot.com/search/label/IPO


My blog link, here.
http://politemarket.blogspot.com/search/label/IPO




Thanks

Friday, April 29, 2011

MBSB Warrants

How much is MBSB warrant worth and what is the fair value? The fair value of MBSB warrant is influenced by many factors such as premium attached, future projected price of MBSB, volatility, etc.
Philip Capital said MBSB can trade with 20% premium.
Let us assume 25% premium.

For info the expiry date of MBSB warrant is 5 years from listing and MBSB warrant exercise price is RM1.00.

Assuming MBSB closed at RM2.50.
The MBSB theoretical ex price may be RM1.51, and MBSB warrant may trade at RM0.89, that is 25% premium (RM1.89 over RM1.51).


Assuming MBSB closed at RM2.80.
The MBSB theoretical ex price may be RM1.62, and MBSB warrant may trade at RM1.03, that is 25% premium (RM2.03 over RM1.62).


Assuming MBSB closed at RM2.20.
The MBSB theoretical ex price may be RM1.40, and MBSB warrant may trade at RM0.74, that is 25% premium (RM1.74 over RM1.40).


I am actually not so good in predicting Malaysia stock market warrant prices because some have very sky high prices. I still think QL-WA does not worth >RM0.90.
Refer to my article here. http://politemarket.blogspot.com/2011/04/ql-warrant-case-study.html


How to compute theoretical ex price, here.
http://politemarket.blogspot.com/2011/02/how-to-compute-theoretical-ex-price.html


MBSB share price target fair value here.
http://politemarket.blogspot.com/search/label/MBSB


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http://politemarket.blogspot.com/



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Thursday, April 28, 2011

Mclean IPO shares price target fair value RM

Whether is worth to subscribe Mclean IPO, let us look at the followings.

According to ECMLibra, at the IPO price of RM0.52, it is valued at an annualized, fully-diluted Mclean PE ratio FY10 P/E of 12.9x (assuming full conversion of all the 58.7m warrants), which ECM Libra believe is fairly valued.

Quick fact on Mclean:
IPO price RM0.52, Mclean warrant exercise price RM0.52, with 5 years expiry date.

Mclean dividend information is not available because they don't have a dividend policy.

Most IPO are priced below PE ratio of less than 10x, but Mclean PE ratio is above 10x. Unless Mclean has a good growth prospect, I think it is slightly on an expensive side.

But they also give free warrant, that is every two shares you strike, you will get one free warrant. How much is Mclean warrant worth? Let us assume a premium of 30% for Mclean warrant target price.

If Mclean listing price is RM0.52, then Mclean warrant price may trade at RM0.16. You don't make any money from Mclean shares, but may make RM0.08 (RM0.16 divides by 2) from Mclean warrant. M0.08 divided by RM0.52 is 15% upside. Good profit.

As the PE ratio is quite expensive, Mclean may list below RM0.52, assuming RM0.47, then Mclean warrant may trade at RM0.09 (30% premium). You make RM0.045 (RM0.09 divides by 2) but lose RM0.05, almost break even.


If you think Mclean can list at RM0.52 or above, then good profit because you can always make from Mclean warrant.


You may make loss if Mclean list at RM0.47 or below. If Mclean list below RM0.47, then you will be hoping that Mclean warrant trade at higher premium.


With the free warrant, it is very hard to assess on Mclean price. But I still think Mclean may not list below RM0.47. If it list above RM0.52 and the warrant trade at higher premium, then it will be a big double bonus.


Extract from ECM:
MClean Technologies Bhd (MTB) is primarily involved in the provision of precision cleaning and washing solutions for components of hard disk drives (HDD), media cassettes, trays as well as medical devices. This segment contributes >80% of its total revenue.

Precision cleaning is a critical phase in order to ensure that the contamination levels of precision components meet the cleanliness requirements. An unclean HDD drive will result in a disk failure.

The other business (which makes up less than 20% of its overall group revenue) is the provision of precision plastic injection moulding for components of HDD such as filters, media cassettes and trays including components for other industries such as automotive, electronic and electrical industries.

Plastic injection moulding is the manufacturing process to produce plastic parts using plastic resin. Manufacturing industries such as electronics and automotive require parts and components to be manufactured using injection moulds.

MClean is the largest precision cleaning outsourcing service provider for the HDD industry in Singapore, with a revenue market share of 38%. It also has the second largest market share in China, with 26% revenue market share.

Strategic advantage by having operations in Singapore, which is the centre for hard disk media production and China, which is the fastest-growing HDD production hub.

Demand for outsourced precision cleaning service is projected to grow by at least 20% per annum.

Relocation of Seagate from Singapore to China will boost China’s HDD industry. As a result, Frost & Sullivan has forecasted that China’s precision cleaning industry will see 118% revenue growth in 2011.

50% capacity expansion in China plant to take advantage of the rapid growth.

Sweetener in the form of free detachable warrants (1-for-2 shares) are also given.


More on Mclean and warrant, here.
http://politemarket.blogspot.com/search/label/Mclean


More information on recent IPO here.
http://politemarket.blogspot.com/search/label/IPO


My blog link, here.
http://politemarket.blogspot.com/search/label/IPO


Thanks

Wednesday, April 27, 2011

CI Holdings Latest News analysis - Well Done RHB ! !

From CI Holdings analysis research report, tthe latest quarter financial result is within RHB expectation but below CIMB expectation. This I have to give credit to RHB.

Previously RHB has warned us on the sugar bomb, where the government sugar subsidy has been withdrawn. But at that time CIMB was still very bullish on this stock. CI Holdings share price actually dropped after the result. Give credit to RHB.

PE: PE Ratio
G: Growth
G: Gearing
Y: Yield (dividend)

At current CI Holdings share price of RM2.83, PE ratio is about 10 plus.
Growth by CIMB is 13% (2012) and 11% (2013). But according to RHB, there will be less than 6% growth or negative growth until 2013.
Net gearing is 70% and heading net cash in 2012 and dividend yield is 3.6%.

CI Holdings target price fair value is RM3.92 (MIDF buy), RM4.78 (CIMB buy) and RM3.30 (RHB Market Perfom).

With different research forecast, up to individuals to make decisions.


More on CI Holdings, here.
http://politemarket.blogspot.com/search/label/CI%20Holdings

My blog link.
http://politemarket.blogspot.com/

Tuesday, April 26, 2011

Zhulian Latest News analysis

Zhulian has recently released the quarterly financial result. It was slightly disappointed due to weakening of US Dollar and rise in material cost.

PE: PE Ratio
G: Growth
G: Gearing
Y: Yield (dividend)

At this current level of RM1.78, Zhulian PE ratio is about less than 10x. The growth has been disappointed in the past few quarters. Gearing: net cash. dividend yield 6%-7%.

The main issue now is growth. It has been disappointed recently.

However, ZR Research still maintain Buy call on Zhulian with an unchanged fair value of RM2.18. That is pegging the peer-benchmarked target PE ratio of 11x against FY11 net profit forecast. They continue to like Zhulian for its i) earnings growth prospects, especially in the overseas markets, ii) solid balance sheet,
iii) higher-than-peers net profit margin, and iv) undemanding valuation at prospective FY11 PE Ratio of
8.8x supported by an attractive net yield of 6.9%. In their opinion, Zhulian offers a cheaper exposure
into the MLM business by comparison to market leader, Amway Holdings, which is trading at a PE Ratio of
19x.


Unless Zhulian can improve their profit or got some other new development, what you get is just the dividend.

Monday, April 25, 2011

Mclean Warrant Exercise Price

For every two Mclean IPO shares that you strike, you will get one free Mclean warrant. Even if you didn't make money from Mclean IPO, you will make money from the free warrants.

What is Mclean Warrant Exercise Price and what is the expiry date of Mclean warrant? The exercise price is RM0.52, and if the listing of Mclean is on 10 May 2010 then the Mclean warrant expiry date will be on 9 May 2016, five years from the listing.

Whether is worth to apply the IPO? You can easily make from the MClean Technologies Berhad warrant, the question is how much you will make? Then many will ask how much is Mclean warrant worth? The target price fair vaoue of Mclean warrant is depend on the market price or listing pirce of Mclean. Once I have the information, I will post on Mclean share price target fair value.

This is the first time that I saw IPO with warrant. Maybe there were many IPO with warrant before this that I have missed out. You must verify the information yourself, whether is it true that you will get one warrant if you strike two Mclean IPO, the expiry date and the exercise price. I am very glad if anyone of you can confirm whether my information is accurate.


More information of Mclean IPO here.
http://politemarket.blogspot.com/search/label/Mclean

Other recent IPO here.
http://politemarket.blogspot.com/search/label/IPO

Please add my blog link to your blog, here.
http://politemarket.blogspot.com/


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Sunday, April 24, 2011

IPO is very Good for Bursa Malaysia Share Market

Yesterday in my article, I mentioned that IPO is very Bad for Bursa Malaysia share market. Today, I will say the good things of IPO. After reading the two, you make your own judgment.

The more IPOs, the more stocks are available in Bursa Malaysia stock market. The more stocks, the more attractive of Bursa Malaysia. Investors will like to invest in Bursa Malaysia because there are many options or stocks available. Foreign investors also will pay more attention to Bursa Malaysia because more choices.

Just imagine a shopping mall has limited shops and limited choices, less people will go. The owners will then suffer. But if there have variety of shops, more people will go and most of the shops owners will benefits.

Do you want to pay attention to Z country stock market stocks, if there is only less than 10 stocks? Or you prefer to spend time in New York Stock Exchange where it has thousands of stocks, from different industries for you to choose?

For the arguement that $1 billion IPO will suck $1 billion from stock market. Money may actually flow from non-stocks to Bursa Malaysia IPO. Many people apply IPO, not by using stocks money. They use their extra cash, eg savings or FD. If no IPO, they will put back the money to bank and not necessary buy other stocks.

Many argue that the money will flow from stocks to IPOs. Yes, but this is very surface. The money that receive by the IPO company, where does it goes? The money will be used by the IPO companies to invest and expand. Therefore, it create more economy activities and stimulate the economy and cause the economy to grow. As a result, the other stocks will benefit from higher share prices due to higher profits.


After writing the two articles, I have made my own judgement. For a start, due to limited cash, IPO will cause less buying interest in the stock market. But eventually, it will create Bursa Malaysia bigger and more attractive. But then it will come to a point where there is really less money in the economy to sustain the new IPOs. Therefore, IPOs are good for Bursa Malaysia stock market, but it has to be gradual listing of IPOs.

The actual impact nobody will know. All these are just theory, just like economics.

After reading my two articles, you can make your own judgment whether IPO is good or bad for Bursa Malaysia stock market.


More information on recent IPO, here.
http://politemarket.blogspot.com/search/label/IPO


My blog link.
http://politemarket.blogspot.com/


Thanks

Saturday, April 23, 2011

IPO is very Bad For Bursa Malaysia Share Market

The more IPO listed in the Bursa Malaysia, it will be worse for the share market. Why? It will cause share prices of other shares to drop.

We don't have unlimited cash. If you have money and wish to buy shares or apply IPO, and if you apply IPO, you will have less money to buy shares. Therefore, the new IPO has reduced the demand for shares. The more IPOs, the more money will be flowed from stocks to IPO. $200 million IPO will then suck about $200 million from stock market. $1 billion IPO will suck $1 billion from stock market.

Some even worse, some sell shares to buy IPO. The selling will then create more supplies in stock market and cause the price to drop.

First day of listing of IPO will normally be one of the top volume stocks traded. Therefore, investors will divert the attention to IPO stock from other stocks.

Therefore, the more IPO, the more money will be flowed from stocks to IPO. Total IPO worth $10 billion will cause $10 billion worth of money to flow from stocks to IPO.

Conclusion, IPO is very bad for Bursa Malaysia Share Market.

But this is just statement that make sense, we cannot really calculate the impact of IPO. This is also a very surface type of thinking. If we think deeper, IPO can actually be good to stock market.

Tomorrow I will post the article on "IPO is very Good For Bursa Malaysia Share Market". After reading these two articles, you make your own judgment.


For more information on recent IPOs, here.
http://politemarket.blogspot.com/search/label/IPO

My blog link.
http://politemarket.blogspot.com/


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Friday, April 22, 2011

How Capital Protected fund works during this bad market condition?

How Capital Protected fund works during this bad market condition?
I have no problem to manage a capital protected fund for you to buy. For sure I am not allowed to issue such fund, and only banks or fund managers are allowed to issue. But if I manage a fund, and if you want your capital to be protected, that is very easy for me.

How capital protected fund works?
Assuming you invest $100,000 and the condition is that you must invest at least 3 years.
Therefore, put $92,000 in FD or bonds with returns or current FD rate of 3% per year. After three years with the compounding interest, the $92,000 will become $100,530.

The balance $8,000 can invest in anything that we want. Use it to play contra, buy lottery, buy very risky stocks, go casino, buy penny stocks, buy call warrant, etc.

Assuming you lose all your $8,000. After 3 years you will still be having $100,530. All your capital is protected.

Polite Market’s Comments:
You will see many funds or unit trust selling point are “capital protected and unlimited gain”.
You will have to ask them how your capital is being protected? Is it same as what I have mentioned above?

If the answer is yes, is that what you want? 
You invest $100,000 but actually only $8,000 is invested.
You can do it yourself, by investing $92,000 in FD and the balance $8,000 invest in anything that you want. The gain is unlimited and you still get back at least $100,000 after three years.


My blog link.

Please add my blog link to your blog.
http://politemarket.blogspot.com/


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Mclean IPO

Opening date is 21-04-11 to apply MClean Technologies Berhad IPO and the closing date is 28-04-11. Mclean IPO share price is RM 0.52 and the issuing house is MIH 514 ACE Mark. The tentative listing is 10-05-11. Worth to apply or subscribe this IPO? 

Initial Public Offering In Conjunction With Our Listing Of Mclean Technologies Berhad (“Mclean”) On The Ace Market Of Bursa Malaysia Securities Berhad (“Ace Market”) Comprising:-

(I) Public Issue Of 15,400,000 New Ordinary Shares Of RM0.25 Each In Mclean (“Shares”), Together With 7,700,000 Free New Warrants Comprising:-

• 8,600,000 New Shares, Together With 4,300,000 Free New Warrants, By Way Of Private Placement To Identified Investors;

• 4,100,000 New Shares, Together With 2,050,000 Free New Warrants, Made Available For Application By Business Associates Of The Mclean Group (As Defined Herein); And

• 2,700,000 New Shares, Together With 1,350,000 Free New Warrants, Made Available For Application By The Public

At An Issue Price Of RM0.52 Per Share Payable In Full Upon Application; And

(II) Offer For Sale Of 11,050,000 Existing Shares, Together With 5,525,000 Free Warrants, At An Offer Price Of RM0.52 Per Share By Way Of Private Placement To Identified Investors, Payable In Full Upon Application.


From Mclean Technologies company.
Mclean Technologies Pte Ltd is committed to be the best clean room service provider in:

a) Cleaning service for the HDD and semi-con industries.
b) Clean room assembly

We are committed to continuously review and improve on our system to meet our customers, statutory and regulatory requirements.

Features Services:
Precision Plastics Injection
Cleaning Solution
Sub – Assembly
Providing Rework Services
Washing System Servicing

Our Services:
Precision Plastic Injection
Assembly Process
Precision Tooling Manufacturing
Cleaning and washing


All our components and trays are washed and packed in a clean room environment which ensure meeting contamination control.


Our Vision
MCLEAN aims to be the World Leader in the Cleaning Precision Solution and Precision Plastic Moulding Industry. Customer focus emphasis is in line with our belief of providing products & services of the highest standard.



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21/03/2011 Business Times

Bursa Malaysia Securities Bhd has approved the proposed listing of MClean Technologies Bhd, the precision cleaning and plastic injection moulding service provider in Singapore, this
year.

"We are very happy that Bursa Malaysia has approved our listing on the ACE Market.

"We are hopeful that with our successful track record and strong recognition in the industry, our initial public offering exercise will be able to bring our investors long-term gains and well deserved returns," said Executive Chairman Jason Yeo Hock Huat in a statement today.

MClean, a company that specialises in the hard disk drive (HDD) industry, has a market leadership and technological competence in precision cleaning.


Its reputation and long-standing working relationship with major HDD industry players provides the leverage and benefit to secure continued cleaning jobs in Singapore as well as neighbouring HDD hubs such as, Malaysia, Thailand and China.

The company was incorporated as a private limited company in Malaysia on March 17, 2010 under the name MClean Technologies Bhd. -- Bernama

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MClean aims to be global industry leader 30/03/2011 Business Times

Bursa Malaysia Securities Bhd has approved the proposed listing of MClean Technologies Bhd, the precision cleaning and plastic injection moulding service provider in Singapore, this
year.

"We are very happy that Bursa Malaysia has approved our listing on the ACE Market.

"We are hopeful that with our successful track record and strong recognition in the industry, our initial public offering exercise will be able to bring our investors long-term gains and well deserved returns," said Executive Chairman Jason Yeo Hock Huat in a statement today.

MClean, a company that specialises in the hard disk drive (HDD) industry, has a market leadership and technological competence in precision cleaning.


Its reputation and long-standing working relationship with major HDD industry players provides the leverage and benefit to secure continued cleaning jobs in Singapore as well as neighbouring HDD hubs such as, Malaysia, Thailand and China.

The company was incorporated as a private limited company in Malaysia on March 17, 2010 under the name MClean Technologies Bhd. -- Bernama



-------------- 
MClean aims for listing by H1 2011  28/03/2011 Business Times

MClean Technologies Bhd is confident of achieving its vision to be the world leader in the precision cleaning solution and precision plastic moulding for hard disk drive (HDD) industry.

Its executive chairman, Jason Yeo, said the company provided a niche service by offering precision cleaning for HDD and semiconductor industries.

He said MClean also manufactured plastic injection moulding for components of HDDs such as filters, media cassettes and trays.
Yeo said it aimed to be listed on the ACE market Bursa Malaysia by first half of this year.

"The company has received Bursa Malaysia Securities Bhd's nod to list on the ACE Market on March 21, 2011," he told Malaysian reporters on a familiarisation trip here recently.


Its chief executive officer, Bert Chow Kok Meng, said the company was looking at opportunities to expand its business to other countries such as Malaysia and Thailand.

"The company is also considering setting up a plant in Malaysia or Thailand as early as next year.

"There's also huge opportunities to expand our business in Malaysia for our future growth after the China market," he said.

The company has 25.98 per cent market share in this industry in China, he said.

"MClean is the second largest player in the HDD precision cleaning industry in China," he said.

Chow said currently the company commanded 37.6 per cent of the industry's market share in Singapore which put it as the leader in the country.

"I think Singapore is vibrant. However, there's also growth potential market in Malaysia," he said, when asked why the company planned to list in Malaysia and not Singapore. He said the company also has plan to expand its existing plant in China.

"The cost of the new plant would be about 900 million renminbi (RM415.17 million). The plant is expected to be completed by July this year," he said.

MClean was incorporated in 2003 and has since obtained precision cleaning qualification approvals from their customers as well as credible certification bodies.

MClean with initial paid-up capital of S$1 million. Among its clients are Seagate Technology LLC, Western Digital Corp and Donaldson (Wuxi) Filters Co Ltd. -- Bernama

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For information on recent IPO, with Target price Fair Value, target listing price and analyst research analysis report, here.


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Thursday, April 21, 2011

Can you afford a property for investment?

This is for INVESTMENT. I will work on an example and you see whether you can afford that or not.

RM300,000 double storey linked house (outside KL or Klang Valley)
Rental RM800 per month
Salary RM4000, spouse RM3600
Bank loan RM270,000 for 30 years
Installment per month RM1300
Cash RM30,000 to pay down-payment.
Then withdraw EPF RM30,000 and now having cash RM30,000

As we know, many people don’t have money left at the end of the month.
Rental income is just $800, how to pay the installment of RM1300?

Rental is RM800 per month, and assuming on average of few years, you can only get 10 months of rental income per year due to change of tenant, expenses, etc.
So your rental income per year is RM8,000.
Your installment per year is RM15600.
You short of RM7,600.

Where to get the RM7600?
You and your wife commit one month of bonus each year, RM4000 + RM3600 = RM7600.
Some companies or some banks normally pay out minimum 2 months of bonus.
One month you commit to property and the other month to minus tax and EPF and other things that you need to use or pay.

One Big question.  What if there is no tenant?
Will you buy a property that is no tenant? You need to survey before you buy. We just assume market is bad and sometimes no tenant.

In the above, you have already buffered that you only have 10 months rental income in a year. With RM30,000 cash in hand, you can afford to suffer another 23 months without rental. 
If you always have tenant and only occasional no tenant, the RM30,000 can last for more than 10 years. After 10 years, you decide whether to sell or not.

With RM4000 per month salary, you will also be adding RM276 per month into your EPF Account Two that later can also be withdrawn to pay the installment. With bonus, after 5 years, your EPF account two will have more than RM20000 and you can instruct EPF to pay your installemt. That will also last you for 1 year plus.

The above example is on buying a high price house with low rental income.
You can look for condo that is cheaper and with high rental income, and therefore the financial situation will be better. But normally condo appreciation is less than house.

Whether we can afford the property for INVESTMENT depends on our income or salary, savings, rental income, property price, etc.

Comparison of housing loan interest rate


Thanks

.

Wednesday, April 20, 2011

Boilerm IPO

Boilermech is 35% own by QL (post IPO, an associate company of QL), Boilermech IPO share price is RM0.33 and let us see whether can apply or not, using PEGGY Method.

Boilermech PE Ratio is only 6 times (FYE Apr 2010), cheap. If anualise the current 6 months result, then PE ratio will be 5x.

Growth, according to ECMLibra, the future growth is by (1) replacement capex of existing palm oil mills, (2) palm oil estate expansion in Indonesia, and (3) demand for biogas electricity generators. At RM0.33 IPO price, ECM said it is valued at FY10 PE ratio of 6.0x which undemanding as compared to peers. (note: Kenanga estimate EPS of RM0.08, Boilermech PE ratio will then be just 4.13x).

Boilermech is also leverage on QL’s biogas and palm pelletisation projects to market Boilermech’s boilers in a full ‘zero-waste’ palm oil mill system. This would be in-line with the government’s promotion of renewable energy. In the 10MP, the government stated its target that 5.5% of total generated electricity to come from renewable energy sources by 2015.

Gearing is not available.

The Boilermech dividend yield is 9.4% based on a annualised figure.

No detail forcast is made by ECM. Let us see what Kenanga said. They estimate a net profit of RM20.7 million and earnings per share of 8.0 sen for the 2012 financial year. Boilermech target price fair value is RM0.48, the potential upside is 45 per cent from IPO price. Kenanga recommend inventors to subscribe the initial public offering (IPO).

Boilermech is one of the largest biomass boiler producers in Malaysia.Their customer are mainly from oil palm company. Boilermech is principally engaged in the design, manufacture, installation, commissioning of biomass boilers as well as repairs and refurbishment services.

My opinion? If based on the above and Boilerm share price target fair value, low PE ratio and with growth, and at RM0.33 is good buy or subscribe.

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Mamee Share Still Can Buy - a case study

Mamee share price is RM4.20 and Mamee privatisation or takeover price is RM4.39.
There is 4.52% upside, and after minus out your brokerage of about 0.42% the upside is 4.1%.

Note: For case study purpose.

The privatisation may take about 6 months time. Therefore, you may gain 4.1% in 6 months and the FD rate is only 3% for one year.

Some of you are already started laughing, saying ONLY 4.1%? Yes, only 4.1% for 6 months, but if simple annualised will be 8.2%.

But let me take a look at your FD and savings account and I may also start laughing. ONLY 3% per year? And the savings account paying only 1% per year?

If you are good, you can easily make more than 4.1% and no need Mamee shares.

But if you have spare cash and have planned out your cash flow, and you are not using the money in the next 6 months, then you may consider Mamee.

I normally plan out my purchase using Dollar Cost Averaging. I buy shares base on periodic rather than to time the market. I have my cashflow plan. The excess cash I can buy Mamee and earn higher interest than FD. But for whatever reasons example you give me a sure win tips, and if I need to use the money to buy the shares urgently that will jump, I can always do a switch. I probably will lose out on brokerage, which is 1% (0.42% buy + 0.42% sell). But if nearer to completion, Mamee price may trade higher already.

The above is similar to one of my 52 Ways in making money in stock market (general offer). There is also risk involved, eg deal is aborted. You can refer to my link here.
http://politemarket.blogspot.com/2011/02/52-ways-of-making-money-in-stock-market_26.html

Please take note that the above Mamee example is for case study purpose, to illustrate a real life situation. Mamee privatisation is more complicated than normal general offer and I have no further details on Mamee privatisation. Please consult your broker for more info.

More on Mamee share, click here.
http://politemarket.blogspot.com/search/label/Mamee

More on 52 ways of making money in stock market and Dollar Cost Averaging, here.
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Tuesday, April 19, 2011

Berjaya Toto to declare Special Dividend Soon?

According to RHB, in view of holding company Berjaya Land’s need for cash for its RM711m convertible bonds maturing Aug 11, they continue to highlight their belief that the best option for BLand to obtain the funds required is not through privatization of BToto, but a combination of a sale of assets (which may or may not include BToto shares), a distribution of treasury shares as share dividends (but this would be minimal as treasury shares only account for 1% of share capital currently) and a payment of special dividend from BToto.

They estimate that if BLand sells an 8-9% stake in BToto to a strategic investor, bringing its shareholding down to 40%, and BToto declares an additional special dividend of approximately 35sen/share, this would give BLand enough cash for its bond redemption. If BToto draws down the remaining MTNs of RM250m, they believe it would have enough cash to pay the special dividend on top of its normal
dividends, given its strong operating cashflows of RM350-450m per year.

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Monday, April 18, 2011

Ambang Botanic Bandar Botanic Gamuda Klang RM350k or RM650k?

Is it worth RM350k or RM650k?

My friend just bought Ambang Botanic Bandar Botanic Gamuda 2, Klang 2011. He told me some of the features but I can't remeber everything or remember wrongly. But the price is about RM650k.

I told my friend about this, and I asked her to guess the price.

Next to Kesas, easy access to highway without sharing with other gardens or taman. Multi-tier security with CCTV every don't know how many metres. There is a lake in that garden or taman. Double storey and the land area is 25X75.

Her answer was RM350k. What a big difference ! ! Compared with the actual price of RM650k. I asked her why? 25 X 75 double storey worth RM350k. She said because is in Klang.

What happen? The house is overpriced or the house prices went up too fast that she unable to catch up or accept it. By the way, my friend plan to sell it at RM850k when the house is ready in three years time.


Articles that you may be interested:

Park Avenue 1120.
http://politemarket.blogspot.com/2010/05/what-is-1120-park-avenue.html

Properties Topics
http://politemarket.blogspot.com/search/label/Property

Amber Resources Cheras LRT Condo.
http://politemarket.blogspot.com/2010/07/can-buy-amber-resources-sdn-bhd.html


Best Housing Loans
http://politemarket.blogspot.com/2010/11/malaysia-housing-loan-interest-rate.html

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Focus Lumber IPO

I always try to get info before the closing date. According to TA Securities TAonline, Focus Lumber IPO share price target fair value is RM0.65, not much upside from IPO price. Therefore, they recommend NOT to subcribe. But they also said the price may be higher than IPO price upon listing.

Focus Lumber stock name (short) is FLBhd.

They like Focus Lumber because it is one of the few Malaysian companies that had successfully penetrated the US market, particularly via indirect sales to the Recreational Vehicle (RV) segment. Also because the company have good track record in improving efficiency.

However, TA said the company lack of timber concession, and therefore exposes to fluctuation in raw material prices. The sales are in USD and it will also be effected by exchange rates.

They value Focus Lumber at RM0.65, that is 6.2x PE ratio, which is 50% discount to sector average of 12.3x. TA said due to small free float, there may be some support and or some upside to the share price upon listing.

Let us do a PEGGY Method evaluation, base on Focus Lumber IPO price of RM0.60.

Focus Lumber PE ratio is about 5.3x, Dec 2010. EPS grow 6.3% in 2011, but the PE ratio will be 5.7x. Increase in PE ratio probably due to increase in number of shares, this is the way they present on this IPO. TA is concern on cost, etc. No further forecast available.

Gearing is net cash, and Focus Lumber dividend yield is 7.3%. FLBhd intends to pay dividend of not less
than 4.4 sen (net) in FY11. No further dividend forecast available.

Base on the above, Focus Lumber is low in PE ratio and paying good dividend in 2011. However, due to uncertainty that is beyond 2011, growth may not be there or even negative growth beyond 2011. But if you think there is growth, then this is cheap.

However, if you want to apply and then sell, you may still be possible as TA said small public holdings easy to support the price, but they recomend not to subscribe. Up to individuals to make decision.


Articles that you may be interested:

Focus Lumber ECM
http://politemarket.blogspot.com/2011/04/flbhd-ipo-share-price-target-fair-value.html


More on Focus Lumber.
http://politemarket.blogspot.com/search/label/Focus%20Lumber

More on recent IPO.
http://politemarket.blogspot.com/search/label/IPO


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Sunday, April 17, 2011

52 Ways of Making Money in Stock Market - Part 11/52 - AGM Annual General Meeting Free Gift

AGM Free Gift
Some company during the Annual General Meeting AGM, they will give free gifts, vouchers, hampers or door gifts to the shareholders who attend the meeting.

Some people are actually very active in attending the AGM to get free gifts.

I actually disagree with the company who provide free gift during AGM. AGM is to discuss company issues, but many people come just to take the free gifts.

RISKS, LIMITATIONS OR DIFFICULTIES:
Not all have free gift, and only certain companies. The free gift may not be useful to you. Some may have been giving free gift but they may suddenly stop giving, and your trip to the meeting is wasted. There was once, the person called up the registrar and they said got free gift. The person went there but ended up no gift.


MY OPINION:
No comment.


More info on 52 Ways of Making Money in Stock Market.....
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Why Malaysia Unit Trusts Perfomed just Average?

For the one year period ended 1 April 2011, KLCI was up from 1329 to 1555, about 17%. But most local unit trusts were only up from 16% to 18%, merely perform closely with the KLCI. Some are even less than 14%. Some are good, that was up more than 20% to 30%. Few exception above 30%.

One of my friend wanted to withdraw from EPF to buy unit trust. I told him before he make any decision, he better have a copy of The Edge weekly to look at the performance of the unit trusts. I bought a copy, and we took a look at the performance of the unit trusts.

Because unit trusts are being managed by fund managers or expert, I thought majority must have performed much much and much and much, and much better than the KLCI, with many above 30%. But in actual fact, most are closely following KLCI, and the average is slightly higher than KLCI.

If we are getting returns that are very similar to KLCI, whether is worth to invest in unit trusts, after considering the 3% to 5% sales charges and about 1.5% annual management fees.

If we managed to buy the right unit trust, then the returns will be higher.
One of my friend managed to make more than 100% returns from unit trust within a short period of time. His timing was perfect.

One unit trust agent told me when good time, hold unit trust, and when bad time hold bond. I though when I buy unit trust, the fund manager will do all the timing and not me. How do I know when is good and when is bad market?

We am facing the same dilemma here, timing and which unit trust to buy? Very similar to buying stocks.


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Saturday, April 16, 2011

Rumours or News - ECM Kenanga merger, BJToto, Notion

The followings are the extract of local news on rumours. Some are rumours and some have turned into news.

ECM Libra Financial Group Bhd and K&N Kenanga Holdings Bhd merger.
The Edge reported that the two Malaysian investment banks were considering a merger, citing unidentified people familiar with the matter. – Bloomberg, Business Times 4 April 2011


Notion.
Notion VTEC Bhd, a Malaysian metal processor and tools maker, said its controlling shareholders have been approached by a party who wants to acquire the entire business of the company.— Bloomberg 12 April 2011


BJToto
Vincent Tan is considering selling a 49% stake in the unlisted gaming unit of Berjaya Sports Toto Bhd for about US$1bil including debt, and has hired Citigroup Inc as adviser, sources with direct knowledge of the matter said. Carlyle Group and Providence Equity Partners were among those recently approached to buy the stake, according to sources familiar with the matter. – Reuters The Star 13 April 2011


BJToto
Berjaya Sports Toto Bhd is no longer pursuing a possible corporate exercise to secure a strategic investor, the company said in an exchange filing in Kuala Lumpur today.
Berjaya Sports Toto isn’t planning to sell a stake in the company’s lotteries unit, a spokesman said, denying an earlier Reuters report.
The group is not pursuing any such deals, Judy Tan, a Berjaya group spokesperson said in an e-mailed to Bloomberg. – Bloomberg 13 April 2011


Recently I started to compile the rumours or news for my own references. However, I am not be able to update the these compilation whenever there is a new development. It is more for references only. More on rumours or news, here.
http://politemarket.blogspot.com/search/label/Rumours%20or%20News

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Friday, April 15, 2011

QL Warrant - a case study

Let us study the QL warrant and you make your own conclusion.
QL Share price is RM3.17.
QL Warrant price is RM0.93.

QL warrant exercise price is RM3.30 and the expiry date 13/02/2013, which is less than two years from now.

Four Scenarios at Expiry Date and how much QL warrant worth.
1) QL share price is lower than current price of RM3.17
Then QL warrant will be worth zero

2) QL share price same at RM3.17.
Then QL warrant will be worth zero.

3) QL share price up 30% to RM4.12.
Then QL warrant will be worth RM0.82, less than current price of RM0.93

4) QL share price up 60% to RM5.07.
Then QL warrant will be worth RM1.77, that is 90% from current price of RM0.93


If you hold QL warrant, and QL share price goes up 30%, you still lose out on the warrant.

Base on the above, unless QL share price goes up substantially, you will lose out if you hold on to QL warrant.

But if you switch from QL warrant to QL share, and if QL share prie goes up 60%, you may not enjoy the 90% gain, but you still can enjoy the 60% gain plus dividend.

If I have confidence in QL share, I will prefer to hold QL share rather than the QL warrant. The reward may be lesser, but the risk is much lower, considering the warrant will expire in less than 2 years.

What is the exception? Exception to my decision will be, the extension of the expiring date of QL warrant. I have no idea whether the expiry can be extended or not.

This is more of a case study.

For more on QL, here.
http://politemarket.blogspot.com/search/label/QL



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Thursday, April 14, 2011

Boilermech IPO

Boilermech Holdings Berhad open date of the IPO is on 14-04-11 and the closing date is 21-04-11.
The Boilermech IPO price is RM0.33 and issuing house is MIH 513, listing in ACE Market tentatively on 05-05-11.

For info, QL Resources Berhad owns 100% QL Feedingstuffs Sdn Bhd, which owns 100% in QL Farms Sdn Bhd, which owns 100% in QL Green Resources Sdn Bhd (formerly known as Tong Her Marine Products Sdn Bhd. Is Boilermech related to QL? I think can consider associate company (not subsidiary, mistake) of QL. Whether worth to apply or subscribe Boilermech IPO and the relationship with QL, read on.

Initial Public Offering In Conjunction With Our Listing On The Ace Market Of Bursa Malaysia Securities Berhad Comprising:-

(I) Public Issue Of 34,900,000 New Ordinary Shares Of RM0.10 Each In Boilermech Holdings Berhad Comprising:-

• 19,250,000 New Ordinary Shares Of RM0.10 Each Made Available For Application By Way Of Private Placement To Identified Bumiputera Investors Approved By The Ministry Of International Trade And Industry ("Miti")

• 8,000,000 New Ordinary Shares Of RM0.10 Each Made Available For Application By The Malaysian Public; And

• 7,650,000 New Ordinary Shares Of RM0.10 Each Made Available For Application By Our Eligible Directors, Employees And Business Associates/Persons Who Have Contributed To The Success Of Our Group; And


(II) Offer For Sale Of 13,500,000 Ordinary Shares Of RM0.10 Each Comprising:-

• 9,000,000 Ordinary Shares Of RM0.10 Each Made Available By Way Of Private Placement To Bumiputera Investors Approved By Miti; And

• 4,500,000 Ordinary Shares Of RM0.10 Each Made Available By Way Of Private Placement To Identified Investors;

BOILERM IPO at An Issue/Offer Price Of RM0.33 Per Ordinary Share Payable In Full Upon Application.

Worth to apply or subscribe Boilermech?
_____
From Boilermech company.
Our Company was incorporated in Malaysia on 8 April 2010 as a private limited company under the name Boilermech Holdings Sdn Bhd. Our Company was subsequently converted to a public limited company on 14 May 2010. Boilermech Holdings Berhad acquired the entire equity stake in Boilermech Sdn Bhd on 21 October 2010 via an equity share swap.

The history of our Group can be traced back to September 2005 when our Executive Director, Wong Wee Voo together with a third party purchased Boilermech Sdn Bhd, an inactive company, to venture into and operate in the business of design and manufacturing of boilers.

On 5 October 2005, we obtained registration from Department of Safety & Health (DOSH), Malaysia to manufacture boilers. Leveraging on the experience and expertise of Wong Wee Voo and a team of newly recruited key management personnel, we secured our first boiler manufacturing contract worth approximately RM1.83 million in October 2005.

In the following month, we secured our first overseas boiler manufacturing contract worth approximately RM1.6 million from the Indonesian market.

Our Managing Director, Leong Yew Cheong subsequently joined us in June 2006.

In July 2006, we secured a contract worth approximately RM11.1 million to manufacture two (2) boiler units of higher technical specifications in Indonesia. Each of the boilers supplies steam to generate 7.0 megawatts of electrical power. This is the first dedicated power generation biomass boiler designed and built by us.

In May 2007, we secured our first project worth approximately RM5.0 million for biomass cogeneration system (excluding turbine generator) comprising the fuel handling systems, boiler and water treatment systems.

In July 2007, we achieved another milestone by successfully securing a RM6.8 million contract to manufacture a biomass boiler with steam evaporation capacity of 130 tonnes per hour for a sugar mill in Indonesia. The biomass boiler remains to-date the largest boiler we have built in terms of capacity.


We purchased the present administrative and manufacturing facility in December 2008 .

In line with our strategy to expand our range of services, management focused on providing engineering solutions for major repairs and refurbishment work on existing/ageing boilers. We successfully secured our first major repair and refurbishment contract amounting to RM1.48 million in November 2009.

Indonesia currently represents our biggest export market accounting for approximately 41.0% of our total revenue in the FYE 30 April 2010. To tap into the growth potential of the Indonesian market and strengthen our market presence there, we appointed PT Agrindo Putra Lestari as our first non-exclusive foreign marketing agent in January 2010. We have since expanded our export markets to include Ivory Coast, Sri Lanka, Thailand and the Solomon Islands.

In October 2010, QL Green Resources Sdn Bhd became our strategic investor by acquiring a 40.5% equity interest in Boilermech Sdn Bhd. The entry of QLGR is expected to complement our strategies and capabilities in the development of biomass renewable energy.

Having only started as a new entrant in the boiler manufacturing industry in 2005, we have grown to establish ourselves as a reputable and reliable boiler manufacturing company with the capability of providing boiler repair and refurbishment services. Under the drive and stewardship of our Managing Director, Leong Yew Cheong and Executive Director, Wong Wee Voo coupled with the commitment and dedication of our team of experienced management personnel, we are presently ranked as one of the largest boiler manufacturers in Malaysia. Since the commencement of our business up to 31 August 2010, we have secured boiler manufacturing contracts from both local and overseas markets totaling approximately RM430.33 million for the design and manufacture of 164 boilers. Although we primarily serve the palm oil milling industry, we have also designed and manufactured boilers for other agricultural based processing industries such as sugar milling, rubber based manufacturing, food processing and palm oil refineries.

For other recent IPO, please visit my blog, click here.

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Boilermech share price target fair value, here.
http://politemarket.blogspot.com/2011/04/boilerm-ipo.html


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FLBhd IPO share price target fair value

Whether worth to apply Focus Lumber IPO, then let us look at the following figures:


Focus Lumber PE ratio is 5.5x (Jan 2010), there is no 2011 figure available.
Growth figure for the next few years and gearing or dividend yield for 2011 are not available.
From ECM research analysis report on Focus Lumber IPO.

According to ECM Libra, Focus Lumber is a plywood manufacturer which does not have any timber concessions. The company was founded by 3 Taiwanese entrepreneurs more than 30 years ago and the current management team is dominated by family members of the founders. The management team also holds 75.1% of the company (pre-IPO). Its main export market is US and most of its products are used for furnishing of recreational vehicles.

ECM said, at Focus Lumber IPO price of RM0.60,At IPO price, FLBhd is valued at 5.5x FY10 P/E which we believe is fully valued as compared to historical average P/E of 5.3x of Eksons, also a small cap plywood player.Despite current rally of timber-related stocks due to expected demand from reconstruction activities in Japan, we believe FLBhd will not benefit significantly as FLBhd does not export to Japan currently.
I have no comment as most information are not available.

I see whether I can get any report before the closing date.

For other recent IPO, please visit my blog, click here.
http://politemarket.blogspot.com/search/label/IPO

More on Focus Lumber share here.
http://politemarket.blogspot.com/search/label/Focus%20Lumber




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Glencore IPO

EPF, the Employees Provident Fund, has been approached to subscribe to the US$10bil-plus initial public offering of commodities giant Glencore, a senior official of the pension fund said.

Glencore is expected to kick off the much-anticipated listing this week in what could be the largest to date in London and one of the largest in Europe.

“Given the size of the IPO, a lot of the banks handling the float have introduced it to us. We will approach it like any other IPOs,” EPF deputy chief executive officer for investment Shahril Ridza Ridzuan said yesterday.

A decision would be made closer to the time of the IPO, he added.

“There were some discussions about the kind of sizes that will be made available but to be honest we've not reached a firm decision about what kind of size we'll be interested in,” he told Reuters at the Invest Malaysia 2011 conference.

“We are still evaluating the company and the prospects of the company.”

The EPF has RM425.5bil in assets as of end-September last year and is among the largest investors in the Malaysian stock market, holding stakes in almost every major listed company.

It is aiming to increase its allocation to non-ringgit investments to 20% in three to four years from 10% of its assets at the end of last year.

“Part of our focus this year is really about making sure we have the right platform, right resources to get that done and to manage those investments effectively,” he said, adding that the EPF's non-ringgit investments were mainly in the equities, fixed income and property markets.

Shahril said the fund's higher overseas allocation would not be done at the expense of its local investments.

“We have a constant flow of cash coming in from our members' contributions. A large part of the new money coming in is aimed at the global portfolio.

“So in terms of absolute size, we are actually maintaining our domestic presence. In fact, we are increasing it slightly,” he said.

EPF has a 45% stake in the country's fourth-largest banking group RHB Capital, which Shahril describes as a “holding that we are very comfortable with.”

The fund has no plans to further sell down its stake in RHB, which has been at the centre of market speculation after another shareholder, Abu Dhabi Commercial Bank said it was looking to sell its 25% stake.

Last week, EPF chief executive officer Tan Sri Azlan Zainol said the fund was open to merger proposals for the bank but they create value for shareholders although it is currently not in discussions with any parties.

Malaysia has nine banks, led by Malayan Banking Bhd and CIMB but some bankers and analysts have suggested that the banking industry might be reaching its limit.

With competition heating up, consolidation may be one way for smaller banks to keep up. - Reuters and The Star 13 April 2011

---------

Malaysia’s Employees Provident Fund (EPF), has been approached to subscribe to the US$10 billion-plus initial public offering of commodities giant Glencore, a senior official from the country’s largest pension fund said on Tuesday.

Glencore is expected to kick off the much-anticipated listing this week in what could be the largest to-date in London and one of the largest in Europe.

“Given the size of the IPO, a lot of the banks handling the float have introduced it to us. We approach it like any other IPOs,” said Shahril Ridza Ridzuan, EPF’s deputy chief executive officer for investment. A decision would be made closer to the time of the IPO, he added.

“There were some discussions about the kind of sizes that will be made available but to be honest we’ve not reached a firm (decision) on our side yet about what kind of size we’ll be interested in,” he told Reuters in an exclusive interview at the annual Invest Malaysia conference.

“We are still evaluating the company and the prospects of the company.” – Reuters, Business Times 12 April 2011

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Wednesday, April 13, 2011

Bursa Malaysia to Implement Day Order

BURSA MALAYSIA TO IMPLEMENT DAY ORDER FOR INCREASED EFFICIENCY

Bursa Malaysia Berhad will implement validity-of-order throughout the day via Day Order effective 18 April 2011, replacing the current Session Order. This change is made for increased efficiency and to meet market expectations.

Currently all orders entered into the trading system is valid for a single session only as all unmatched orders are cancelled by Bursa Malaysia immediately after the end of the morning session. Thereafter, brokers are required to re-key in their orders in the afternoon session at 2:00pm when the market re-opens for the Pre-Opening phase.

With the implementation of Day Order, all unmatched orders from the morning session will be automatically carried forward to the afternoon session and shall be considered as valid for the whole trading day. Brokers are only required to manually cancel the orders after 2:00pm if they do not wish to carry the orders into the afternoon session.

There will be no change to the current trading hours.

The benefits of the implementation of Day Order include:

1. Operation efficiency
Brokers do not have to re-key unmatched first session orders at 2:00pm onwards as the orders will remain in the trading system. This will avoid instances of brokers’ oversight in carrying forward clients’ unmatched orders from the morning session. As a result, there will be less system processes for both the Exchange and the brokers, especially for remisiers and dealers.

2. Order priority
Orders that have been placed in the morning session will automatically be carried over into the next trading session. Therefore, there will be no loss of orders priority. In line with the implementation of Day Order, a single trading limit shall be applied for the whole trading day. The single trading limit will be at 30% or 30 sen as follows:

Trading Limits (except new listings)
Price Limit Up
Above RM1.00 30%
Below RM1.00 30 sen

Price Limit Down
Above RM1.00 30%
Below RM1.00 30 sen


Trading Limits for new Listing (including Initial Public Offering)
Price Limit Up
Above RM1.00 -  400%
Below RM1.00 - 400% or 30 sen whichever is higher

Price Limit Down Above RM1.00 -  30%
Below RM1.00 - 30 sen

The limit up/down will be applicable for the whole day. Market participant have been duly informed of the changes.

 -----------------------

All unmatched orders entered during morning session will be automatically carried forward to the afternoon session by the trading engine.

There will be no lost of order priority. The unmatched order will remain in the order book.

Investors who do not wish to carry forward the unmatched orders to afternoon session can cancel their orders from 2:00 pm onwards. Order matching on the second session will commence at 2:30 pm. Therefore, investors are advised to cancel their orders before 2:30 pm.

What is the status of order if the stocks fall under suspension (“Forbid” status) in the morning session and re-quoted in the afternoon session? All unmatched orders of a suspended (“Forbid” status) stock will be eliminated immediately.

Haio PE Ratio, Growth, Gearing and Dividend Yield

Haio PE ratio, growth, gearing, dividend yield were good and I have bought it. Then something happened and they started to have negative growth.
When I redo the Haio financial positions, it is no longer attractive and then I sold it.

Let us do a very simple PEGGY Method evaluation on Haio, by using Haio share price of RM2.27.

PE: PE Ratio
G: Growth
G: Gearing
Y: Yield (dividend)

PE ratio is 16.9x (April 2011), growth is negative 61.6% (2011), +1% (2012) and +14% (2013). Net cash and dividend yield is 3.9%.
The above figures from RHB farecast with Haio Target Price Fair Value RM1.35, underperform and cease coverage. You may notice RHB in some area put RM1.71 and the conclusion put RM1.35. But previously they have already put RM1.35, so I think RM1.35 is the correct one, that is 10x of Haio EPS 2011 of RM0.135. OSK Haio fair value is RM1.93.

Based on the above, PE ratio is high and no growth. What we get is average dividend. Price may be under selling pressure because of the high PE ratio with no profit growth.


When I bought it, the PEGGY Figures were very nice, low PE ratio, high dividend, etc. After the PEGGY figures have changed, I quickly sold it at good price and take profit.

Haio price dropped from high of RM4.93 to RM4.00, then to RM3.00, and now RM2.27.

Actually what has happened to Haio?
Some said is because of Bank Negara new rulings of MLM. Some said because some of the top management have resigned.
What happen to their Indonesia venture? What happen to their heat transfer product?

I think PEGGY has helped me take profit on Haio and help me avoid Haio when it dropped to RM3.50.

I will consider Haio again if the price drop lower and there is improvement in the profit.


Please add my link to your blog, here.
http://politemarket.blogspot.com/


For more on Haio, here.
http://politemarket.blogspot.com/search/label/Haio

 Thanks

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