The Store 9M13 EPS increased 29% YoY

1. Background. The Store Corporation Berhad (Code: TSTORE or 5711) is a leading operator of supermarkets, departmental stores and hypermarkets in the country. The Group has been listed on Bursa Malaysia since 1994. Overall, the Company focus on retail operations with presence throughout every state in Malaysia.
2. 9M13 EPS increased 29% YoY to 23.30 sen. According to its announcement to Bursa, the increase was mainly due to the improvement in revenue, saving in operating cost which derived from the consolidation of certain underperforming outlet with the outlet in the vicinity as well as increase in the other income.
3. 4Q13 should be weak. Last year in 4Q12 TSTORE registered 2.7 sen EPS. Conservatively can assume it manage to get the same 2.7 sen EPS in 4Q13 will make up FY13 forecast EPS of 26.0 sen.
4. Target Price of RM2.47. Assuming 9.5x PE on its FY13 EPS of 26.0 sen. From its current market price of RM2.20, upside is about 12%.

Time to take profit on MAS

1. Entry at about 30.5 sen. I recommended MAS as stocks to watch on 19-Jun-2013. The post is with the title "3 STOCKS to BUY NOW... Foreign investors turned into net buyers". At that time MAS was trading at about 30.5 sen.

Original link: http://wallstreetklci.blogspot.com/2013/06/3-stocks-to-buy-now-foreign-investors.html

2. MAS share price up recently after Government says looking to sell MAS shares but depend on the price. 

3. 10% gain within 2 months from 19-Jun to 15-August today. For this kind of high risk stocks with little fundamental, I think 10% return is good and it's time to take the chips off the table.

4. Recap of what I wrote last time about MAS as per below...

*********************BEGIN*********************
MAS (Target RM0.34-RM0.35) WARNING: Only for daredevil
>> Nothing much to talk about on this Company fundamental.
>> But due to its strong backing from government, I think this stock unlikely to fall below RM0.30.
>> Technical RSI is only 33 now (very close to oversold level of 30).
>> Expect small rebound to RM0.34-RM0.35 in the next 1 month. Once hit, take profit fast.

*********************END************************

FBMKLCI +5 points but net foreign selling RM262m?

1. Lose support in last 5 minutes yesterday. Those who track FBMKLCI closely yesterday would have noticed that at 445pm, FBMKLCI is still +10 points before suddenly erased 5 points of its gain at 450pm. At 450pm, all share price will be "locked" and all trades must be transacted at the same price transacted at that time until 5pm.
2. In the end, FBMKLCI ended only +5 points. And guess what? Net Foreign Selling is RM262m.
3. Net foreign selling RM810m in the last 3 days.
Tuesday:   Net Selling RM122m
Wednesday: Net Selling RM437m
Thursday: Net Selling RM262m
4. What does this mean? It's quite clear net foreign selling has returned and it may stay for about 1 week. Depending on foreign investor confidence in Malaysia, it may end earlier or later.
5. So KLCI may gain today but maybe only 5 points. This is caused by strong liquidity in local market. But KLCI can't appreciate significantly because it will attract major sell from foreign investors again.

Besides Malaysia, who else downgraded by Fitch?

1. It's Petronas, Maybank and TM. All outlook has been now downgraded to "Negative" from "Stable".
2. In the short term, Maybank and TM will need to pay higher interest cost in the next round they go to the market to raise bond. This should impact their earnings if the bond yield rise significantly.
3. In the long run, this is a wake up sign that Malaysia better get its debt situation under control. Otherwise, the real downgrade on the "A-" situation for Malaysia is just a matter of time.
4. What to do?
>> If you do not believe much will done to ratify the issue raised by Fitch, then go open account which allow deposit in foreign denominated $. This will at least protect against Ringgit depreciation.
>> Diversify stock investment away from pure Malaysia stocks. I am looking at WILMAR (SGD 3.15) because this stock has been bashed down severely from SGD5.50 in the last 1 year. Their earnings will be released next week, hope it will be good then this stock can move.
>> Buy into stocks that fundamentally can benefit from weak MYR such as plantation companies, rubber glove makers and technology stocks.

FIBON FY13 earnings grow 9% to RM4.9m

1. FY13 EPS up 9% to 5.00 sen. FIBON reported FY13 EPS of 5.00 sen (+9% YoY against 4.59 sen last year). However, its 4Q13 EPS declined 7% YoY to 1.04 sen due to higher admin expenses.
2. Background. FIBON is a technology Company. It is engaged in the formulation, manufacturing and sales of polymer matrix fiber composite materials and products for the Electrical, Electronic, Petrochemical and Automotive industries.
3. Dividend of 1.25 sen was announced. This will still need approval in the next AGM but usually it will go through. At current share price of 33 sen, this translates into dividend yield of 3.8%.
4.Low volume, boring stock. Today volume is still small (~65k) although the earnings and dividend was announced yesterday. Hence, this is a boring stock in which share price does not move much.
5. Strong balance sheet. This Company has no borrowing at all. And its net cash is RM20.0m or 20.0 sen per share. Basically, this means about 65% of its share price is backed by cash. From corporate finance angle, FIBON does not use its cash into good use hence its depressed share price so far.

6. Theoritical value of RM0.32 per share. Simply by using its latest book value of RM0.32 per share.

SUMMARY OF KEY FINANCIAL INFORMATION
31/05/2013

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		31/05/2013	31/05/2012	31/05/2013	31/05/2012
		$$'000	$$'000	$$'000	$$'000
1	Revenue	3,352	3,598	16,674	16,901
2	Profit/(loss) before tax	1,228	1,550	6,566	6,226
3	Profit/(loss) for the period	1,019	1,102	4,901	4,499
4	Profit/(loss) attributable to ordinary equity holders of the parent	1,019	1,102	4,901	4,499
5	Basic earnings/(loss) per share (Subunit)	1.04	1.12	5.00	4.59
6	Proposed/Declared dividend per share (Subunit)	1.25	0.00	1.25	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	0.3200		0.2900

Tower REIT post flattish 2Q13 earnings

1. Flattish earnings. TOWER REIT ("TWRREIT") reported 2Q13 EPS of 2.51 sen (+2% YoY against 2.47 sen last year). The slight increase of 2% in EPS is in line with 2% increase in revenue to RM13.2m.
2. Income distribution of 5.09 sen was announced. Ex date will be on 7-Aug-2013. Payment date is 27-Aug-2013. However, this is 8% lower compare to last year distribution of 5.48 sen.
3. Some background: The three assets of the company are Menara HLA, HP Towers and Menara ING.
4. Just a dividend play. Despite flattish earnings, dividend remain attractive with net yield of more than 6.5%.

Watch YOCB (Worth RM1.00)

Main business in home linen, homeware, and bedding accessories. Yoong Onn Corporation Berhad (YOCB) engages in the design, manufacture, distribution, retail, and trading of home linen, homeware, and bedding accessories in Malaysia. Some of the Company's key products brand are Diana, Novelle and Jean Perry. To market its product, YOCB has 17 fully-owned retail outlets under the Home’s Harmony brand name.

3Q13 grow 32% YoY to RM5.62m. 3Q13 EPS was 3.51 sen  (vs. 3Q12 level of 2.67 sen). Good earnings growth was due to higher sales through higher consignment and boutique sale. Collectively, 9M13 earnings increase 15% YoY to RM16.34, again due to same reason (better sales).

Good dividend yield of 4.9%. The Group paid 3.5 sen net dividend last year and this year. Based on latest share price of 71 sen, this translates into good dividend yield of 4.9%.

Net cash of RM13.7m. This strong balance sheet should allow the Group to expand its business easily without affecting its ability to pay dividend.

Trading below book value of 86.5 sen. It is surprising to see such a good Company is trading below its Book Value of 86.5 sen. This could be due to not many investors know this stock.

YOCB theoritically worth RM1.00. By applying very low 7x PE to 14.3 sen EPS estimate in FY14, this stock is easily worth RM1.00. For FY13, its 9 month result already achieve 10.21 sen. Make simple assumption 4Q13 can achieve 3.0 sen... FY13 forecast EPS should reach 13.21 sen. I think demand for the Company's product (home linen, homeware, and bedding accessories) is rising as many young couple move into new house and need to buy these stuffs. Hence, FY14E EPS just assume another 8% earnings growth to achieve 14.3 sen. The 7x PE is for small cap stocks which is already 30% discount to current Small Cap Index PE of 10x.

Buy 14,000 YOCB into my paper portfolio. Based on all reasons stated above, I add this stock into my paper portfolio yesterday at 69.5sen (14,000 shares). Hopefully this stock can help this paper portfolio to achieve 30% growth next year.