Friday, May 31, 2013

KPS 1Q13 earnings increase 11% YoY to RM22.0m

Kumpulan Perangsang Selangor (KPS) 1Q13 earnings increase 11% YoY to RM22.0m (against 1Q12 earnings of RM19.8m.

SHL 4Q13 net profit jumped 133% to RM11.4m

1. SHL Consolidated 4Q13 net profit jumped 133% to RM11.4m (against RM4.9m in 4Q12), FY13 earnings jumped 88% to RM34.5m.
2. SHL is a property company.

Full background from its website as below:

The Group had its beginnings in one single company dealing in traditional commodities in the 1940s. In the early 1960s', the Group ventured into property development on a joint-venture basis and has since successfully developed more than 18,000 units of houses in various housing schemes. With a careful diversification strategy, the Group is currently represented in several major sectors of the economy such as property development, construction, manufacturing, quarrying, trading and hospitality services.
The Sin Heap Lee Development Group embarked on its first own housing project in 1985 with the development of its first scheme, Taman Sri Rawang, Selangor. The Sin Heap Lee Development Group has since established itself as a leading housing developer particularly in the development of integrated housing schemes and having completed a total of 9,325 units of mixed development ranging from residential, retail to commercial units worth over RM 1.2 billion in value. The SHL Consolidated Group has earned the reputation of having fast delivery, good building quality, well-planned infrastructure and environment friendly landscaping for all its housing scheme.

OSK, Masterskill and Brahim 1Q13 result

1. OSK 1Q13 net profit jumped 20% to RM40.5m (against RM33.7m in 1Q12)
2. Masterskill 1Q13 net loss widen to RM12.6m (from RM2.9m in 1Q12)
3. Brahim suffered 1Q13 net loss of RM1.8m (against RM0.6m net profit in 1Q12)

Thursday, May 30, 2013

Kenanga upgrade REDTONE Target Price to 75 sen

1. Kenanga Research has increased its Target Price for Redtone to 75 sen (from 56 sen previously).
2. The research house has issued a report today on Redtone divestment of 21% stake in its subsidiary, Redtone Network S/B (“RN”) to D.Y.M.M. Sultan Ibrahim of Johor for a total cash consideration of RM315k.
3. Full details as attached below:

§  REDtone has entered into an agreement to divest a 21% stake in its subsidiary, Redtone Network S/B (“RN”) to D.Y.M.M. Sultan Ibrahim of Johor for a total cash consideration of RM315k, bringing the latter’s stake to 51%. The divestment is expected to be completed by 15 June 2013.
§  RN, Puncak Semangat and i-Media had been shortlisted by MCMC for the digital terrestrial television broadcast (“DTTB”) infrastructure contract in November 2012.
§  REDtone said that the DTTB business would involve continuous investments and a full management commitment and added that the Johor sultan had graciously agreed to invest in the DTTB business should the contract be awarded to RN.
§  Meanwhile, in a separate press release, REDtone said was working with Huawei, Media Broadcast GmbH (“MBG”) and PwC in its DTTB bid and is expected to submit a detailed business plan on June 3 for the second tender process. Huawei will be its Technology partner and system integrator while MBG of Europe will design the network and complete the operational requirement for the DTTB project.    

§  The whole DTTB is likely to cost RM1.0b of which RM300m is to supply set-top boxes based on earlier press report. The strong shareholders in RN will no doubt enhance the competitiveness of its DTTB bid. The group believes that the MCMC is likely to announce the final evaluation result by end-3Q.
§  We understand that the final evaluation will only see one winner selected to roll out the DTTB services to the public in early 2014. A full nationwide coverage is targeted to be reached by end-2015.  

§  The group’s future earnings are likely to depend on: 1) its ability to secure more USP projects and 2) the degree of aggressiveness of Maxis’ 4G LTE services rollout, which we have yet to impute into our forecasts.

§  There are no changes in our FY13-FY14 earnings forecasts.



§  We have raised our target price to RM0.75 (from RM0.56 previously) after rolling over the valuation base year to FY14 with a higher targeted PER of 14.5x (+0.5 SD). We believe the recent positive corporate developments within the group will likely lead to a PER band expansion where we previously valued the company based on a 2-year average PER of 11.0x. 

§  Dependency on a major partner – Maxis.  
§  Failure to secure more USP programmes.  

Tuesday, May 28, 2013

Summary of result during lunch time

1. BIMB: 1Q earnings up 14% YoY to RM74m
    The higher profitability was mainly achieved on the back of RM78.3m increase in revenue and   
    RM24.5m improvement in allowances for impairment on financing and advances, investment and 
    other assets.
    Islamic Banking and Takaful both doing well too.
    Outlook: Earnings make up 23% of consensus forecast, so it's barely in line with expectation. 

    Potential upside to share price but should be capped at RM4.00.
2. MAHSING: 1Q earnings up 16% YoY to RM69m
3. UEMLAND: 1Q earnings jump 289% YoY to RM211m
3. MSPORTS: 1Q earnings tumbled 56% YoY to RM7.4m

Thursday, May 23, 2013

YEE LEE: 1Q13 earnings more than doubled YoY

1. 1Q13 earnings jump 137% YoY. Yee Lee (Stock Code: YEELEE, 5584) 1Q13 earnings jumped 137% YoY to RM8.35m on the back of better margin on its olein (cooking oil) products as CPO prices become lower YoY.
2. Turnaround in Trading division. The Company's Trading division also registered better profit margin coupled with lower advertisement and promotion expenses in this quarter.  
3. Beneficiary of low CPO prices. Yee Lee sells olein (cooking oil) in which the price is more or less does not change much. But the input CPO price is 25% down YoY. This explains why its margin in Manufacturing division increase so much.
4. Share price to hit RM1.50 soon? Its FY13 EPS is expected to hit 16.4 sen or 31% jump YoY due to better margin in olein manufacturing and also good turnaround seen in Trading division. Using conservative 9x PE to value this stock, it is easily worth RM1.48.

Five Mistakes To Avoid When Trading Financial Markets

Found this good article online, so I think should share it here.



It’s a well known fact that 95% of “retail” traders (i.e. the small speculators) will lose money trading the financial markets.  Little wonder then that small speculators are referred to as “dumb money” by investment professionals and monitored as a contrarian indicator for future price direction.

It is not simply that the little guys choose the wrong trade, there are a number of classic mistakes that are repeated over and over again that mean losing is all but a certainty, leaving the 5% of winners and the professionals to clean up.

This article highlights what we believe to be the top five mistakes that traders make that can be avoided and increase your odds of success dramatically.

Get more free articles like this helping you learn how to trade online.

1. Not Planning Your Trades

It is not sufficient to look at a particular market, choose to either buy or sell and cross your fingers hoping for the best.  You must devote time to study your chosen market, decide whether the prevailing trend is up or down, what timescale this trend is over and where the points of support and resistance are.

You have to plan where you are going to buy or sell, where to place your stop loss and most importantly where to exit the trade.  Then, once the trade is planned and executed, you must show discipline – you made the trade for a good reason with solid justification, so any changes need equally solid justification.

2. Lettings Losses Run and Closing Winners Too Early

There is a tendency to become too emotionally involved with a trade once it has been placed, and to want the trade to succeed too much.

Therefore, novice traders tend to let losses run too long, by either widening stops or ignoring signals that the trade is going wrong, in a desperate attempt not to lose money.  All that happens is when you do eventually lose, the loss is a huge one.

Learn to take small losses and you won’t ever get smashed by an enormous loss that blows you out of the water completely – the markets will always be there tomorrow, as long as you still have capital, you are in the game.

On the flipside, novices tend to get over excited when their trades move the right way and into a profitable position and the tendency is to close the trade out earlier than planned to “bank” the profit.  Of course there are times when this is the right course of action, but if your plan said close out at a certain point, unless something has changed, stick to the plan.

3. Chasing Losses

The other classic trading mistake is to “chase” losses – after taking a loss on a trade (hopefully a small, manageable one - see above!) the natural urge is to “put it right” by getting straight back into the markets and winning the lost cash back as soon as possible.

As we know, the only way to trade is by planning each trade and executing it carefully, jumping back in to the markets after calling a losing trade is NOT going to work.

The best advice is to take a few days out of the markets, regroup and plan your next trade.

4. Overtrading

Everyone loves the thrill of placing a trade and entering the market – many traders tend to overtrade, placing too many trades that haven’t been planned properly just to be “in the game” and part of the action.

We at UKGTE only make about 10-20 carefully planned trades a year as overtrading means more money is lost on commissions and spreads and the likelihood of losing is higher as trades are more frequent.

5. Staking Too Much

Money management is the key to real success – too many traders risk far too much of their trading pot on each trade, looking for the “big win” rather than gradual and controlled growth through smaller more manageable trades.

If you go seeking the “big win”, more often than not you will end up finding the “big loss” and then its game over.


Wednesday, May 22, 2013

TDM: Time to let go of this stock

1. 1Q13 profit down 20%.Yesterday, TDM reported its 1Q2013 net profit which tumbled 20% to RM14.2m against same period last year.
2. Key reason for the drop is due to lower CPO prices of RM2265/mt (down 26% against same period last year).
3. Healthcare division is doing better with but contribution is just too small to counter the lower CPO prices effect.
4. TAKE PROFIT. Given that this stock has jumped so much this year (Year To Date share price jumped 50%), it may be wise to take profit by sell into strength. The increase in share price due to corporate exercise involving bonus issue and share split has been all priced in.

Friday, May 17, 2013

The party is coming to end soon

What does it tells you when out of the top 20 most active stocks, ALL OF THEM are penny stocks? (i.e. less than RM1.00)?

Yes, the party may come to end soon...

When I say soon, it means between 1 week to 1 month.

Fundamentally, 1Q GDP of 4.1% is already below market expectation. But the power of liquidity is still very great at this juncture... Let's see how long this liquidity factor can support the market...

This is the market snapshot at 3pm 17-May-2013....