Technical Stock To Watch on 1/9/2015 - HEVEA (5095)

Inside the blog as written on 7/8/2015 stated hammer with long shadow was a buy signal but this was not the case where HEVEA continued its downtrend with heavy sell-off. The reason behind was due to the bad sentiment from the market because of few factors that affected the bear sentiment: 1) ringgit value keeps depreciated  2) nation reserve keeps decreases  3) political turmoil  4)  oil price drops  5) worries on China’s economy slowdown, etc.

Due to this reason, a cut or stop loss is a must when trading or speculating comes into place as besides fundamental analysis (FA) and technical analysis (TA), sentiment analysis (SA) should or should I say must take into consideration when making a trade decision as any FA and TA will become secondary important when sentiment drives and overtakes the market.   

Hevea Daily Chart

However, HEVEA was able to stop the bleeding after hitting the low of MYR0.83 as of 12/8/15 and recover the loss gradually.

Refer to the chart above, HEVEA is making higher high since 12/8/15 and once breaks the psychology level of MYR1.00 and retraced back after tested the high of MYR1.01 (the latest resistance). HEVEA is hovering the 50-days Moving Average line (blue solid line) with 1 shooting star and 2 dojis formed since the last 3 trading days before the Merdeka Day indicated there was uncertainty on this counter as investors are waiting for the quarterly report from this company (this is just my point of view).

As announced by HEVEA on 28/8/2015, the company making profit for both QoQ and YoY, with net profit increased 14.78% and 88.71%, respectively. Kindly refer http://www.klse.my/financial/quarterResult/YoY/quarter/5095/30-Jun-2015.jsp for more details.

Currency: Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION 30 Jun 2015

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30 Jun 2015	30 Jun 2014	30 Jun 2015	30 Jun 2014
		$$'000	$$'000	$$'000	$$'000
1	Revenue	111,378	106,903	227,751	211,591
2	Profit/(loss) before tax	16,534	8,966	31,134	16,754
3	Profit/(loss) for the period	16,042	8,501	30,018	15,743
4	Profit/(loss) attributable to ordinary equity holders of the parent	16,042	8,501	30,018	15,743
5	Basic earnings/(loss) per share (Subunit)	15.82	8.99	29.61	16.64
6	Proposed/Declared dividend per share (Subunit)	0.50	0.00	0.50	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 ($$)	2.9700		2.7200

Source: Bursa Malaysia

If Hevea opens gap up breaking the 2^nd downtrend line and MA50 on Monday (1/9/2015), it might goes up all the way until it testing the MYR1.01 and 3^rd downtrend line resistance. If it would to breaks these 2 resistance, the next resistance to be met will be @ MYR1.13.

Happy Trading!

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SCICOM (0099)

SCICOM (MSC) BHD

Scicom was incorporated in 1997 in Malaysia and is a PLC listed on the main board of Bursa. Scicom has been a PLC since 2005. Their centres in KL, Colombo & Jakarta service both large local conglomerates, multi-national clients & governments.

Scicom suite of services include integrated solutions in Customer Contact Management (BPO), Education and Training, Government Outsourcing Services & E-Commerce.

Scicom talks, emails, tweets, chats, processes & interacts with millions of customers annually. Over 100mil distinct transactions resolve, enhance, provide value & serves their clients customers in over 39 languages.

Their centres in M'sia, Sri Lanka & Indonesia, linked and fully redundant via state of the art multi-channel technology platforms, serves a discerning multi-national client base. Scicom provides unique solutions in service excellence across Asia Pacific.

Scicom is a global CRM Consulting, Technology services, Education and Outsourcing company.

With domain experience, and comprehensive capabilities across all industries and business functions, Scicom partners with clients to help them focus on their customers so that they become high-performance businesses both in the public and private sectors.

Their "Customer Focused Business" strategy builds on their expertise in consulting, technology, education and outsourcing to help clients perform at the highest levels so they can create sustainable value for their customers. Using their industry knowledge, service-offering expertise, technical capability and by improving  operational performance and delivery, scicom help clients increase revenues from their existing customers, retain their current customer base and proactively acquire new customers.

Scicom have long-term partnerships with global clients and governments and work with organizations of all sizes.

Scicom’s Key Differentiating factors are:

• Extensive vertical domain Expertise
• A Focus on business transformation outsourcing.
• Commitment to the long-term development of our employees.
• A Proven and experienced management team.
• Providing Innovative solutions for evolving business needs

The Business Pitch Acquiring new customers by designing and using new and future ready channels. Retain current clientele by utilizing electronic campaigns to keep customers focused on your brand and your services. Develop all categories of the customer base so that they bring value by spending more money with your brand and your services

The Scicom Advantage Process Driven Culture Value Based Management Operational Excellence Cost Savings Year on Year

• With steady earnings coming from its BPO segment and e-government service contract, which now includes language schools and public higher learning institutions.
• The EMGS contract is progressing smoothly and is complemented by stable earnings from the Business Process Outsourcing (BPO) segment. While the initial number of visa applications from language-school students is minimal as some adjustment time is required.
• Scicom’s BPO pipeline was robust and that it was in the final stages of contract bids of around RM50m.
• Scicom’s diverse client base should minimize the risk from Malaysia’s economic and political concerns as management has guided that more than 50% of its revenue is derived from clients whose business operations are outside of Malaysia and from various industry segments.
• Although the current weak Ringgit is an advantage to overseas clients, 85% of Scicom’s receivables are in Ringgit. Thus, while a weaker Ringgit is positive for the company. Scicom is also looking to expand its presence in the e-government services sector as negotiations on several regional contracts are on-going.

Scicom have its strong growth prospects, sound financial position (ungeared net cash position of RM26m as of 3QFY15) and FY15-17E dividend yields of 4.5-5%.

Affin Hwang target price given for 12mth is RM 2.39

Disclaimer:

All posts and documents submitted in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided are solely for your consideration only and you should exercise your own judgment in forming your own investment decision(s). Please also be informed that equity investment is risky and we recommend you to conduct sufficient searches for information in addition to referring our recommendations and/or opinion herein, prior to making an investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/provided by members/followers of this blog do not belong to the Admin and we take no responsibility of such.

FLBHD (5197)

Focus Lumber Berhad

FLBHD was incorporated in Malaysia on 30 October 1989 as a private limited liability company and was subsequently listed on the Main Board of Bursa Securities on 28 April 2011. Their principal activities are manufacturing and sale of plywood, veneer and Laminated Veneer Lumber (“LVL”), and investment holding. Plywood is the core product, generating the bulk of the Group’s revenue.

FLBHD plywood manufacturing mill is located at Keningau, Sabah. Over the years, with the vast experience and strong technical capabilities and know-how, we have become a major player in the plywood industry. FLBHD also emphases on environmentally friendly manufacturing and it was the first Malaysian plywood mill company certified as a CARB Certified Manufacturer on 2 October, 2008 by Professional Service Industries, Inc., a CARB authorized third party certifier. The CARB standards regulate formaldehyde emissions from wood products sold in California or used to make finished goods for sale in California. In additions, it was also awarded with the JAS certification by the Ministry of Agriculture, Forestry and Fisheries of Japan in 2009 as a proven qualified plywood manufacturer. JAS imposes stringent requirements on various aspects of production process. The JAS certification signifies the acknowledgement and endorsement of the high quality of the Group’s product which will enhance customers’ confidence.

In Jan 2013, FLBHD was accredited as a certified Lacey Compliant Wood Products Manufacturer by Benchmark International, LLC (BMH) under the BMH Lacey Compliance Verification (LCV) Program, affirming the legality of sourced forest products used in the manufacture of FLBHD products. BMH is an independent third party auditors who assist wood products manufacturers and importers in proving that their source of forest products are legal as required by the Lacey Act, which was passed by the US Congress in 1900 and 2008, by adding the protection of plants and plant products. This certification will give our US customers a higher degree of confidence and helps protect them from heavy civil and criminal penalties that can result from violating the Lacey Act. 

Focus Lumber Service supply Domestic & Foreign Hardwoods.

products & services include

• Plywood

Their main product which contributed more than 90% of our total revenue for the past 3 years.Commonly used in various industries such as the Recreational Vehicle (‘RV’), home decorating, construction and furniture industries.

• Veneer

Veneer is a thin sheet of wood which used to form the building blocks of plywood.

• Laminated Veneer Lumber

The production of Laminated Veneer Lumber commenced in March 2010.They use recycled wood chips & veneer slips to produce like products whereby use multiple layers of thin wood and veneer assembled with adhesives. This product is extremely strong in nature. It is commonly used in the construction industry for structural integrity, production of high-value furniture, housing materials & value-added products. Separate market of its own as compared to thin panel plywood and target market are the US, Taiwan and Japan.

With 97.8% of FLBHD's revenue in 2014 derived from exports and a significant 64.9% of sales going to the US, the company stands to benefit from both the strong US economic growth momentum and USD.

Focus Lumber has been steadily growing for the past 4 years. Dividend per share increased from 6 sen in 2011 - 2012 to 8 sen in 2013 - 2014, giving a generous yield of 6.3%. Its dividend payout ratio was 51.5% in 2014.

The company has a strong balance sheet with net cash of RM 73.8 mil which equivalent to 72 sen per share.

UOBKH target price RM 2.05

Disclaimer:

All posts and documents submitted in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided are solely for your consideration only and you should exercise your own judgment in forming your own investment decision(s). Please also be informed that equity investment is risky and we recommend you to conduct sufficient searches for information in addition to referring our recommendations and/or opinion herein, prior to making an investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/provided by members/followers of this blog do not belong to the Admin and we take no responsibility of such.

HOMERIZ (5160)

Homeritz Corporation

Simple and Space Saving than Ever

HOMERIZ simplistic, space saving and contemporary furniture designs are catered specifically for the Western market. Their upholstered home furniture products are made with utmost care using the finest material including treated leather imported from overseas country. 
Homeriz upholstered home furniture have various ranges which are mainly focused on “medium to high end range”.

Competitive Strengths 

1. A leading brand with complete range of upholstered home furniture & modern furniture products 
Unlike the majority of our local peers who principally involved in the manufacturing and sale of wooden based products, ERITZ present as a “one-stop centre” by offering a complete range of upholstered home furniture which includes upholstered sofas, upholstered dining chairs (with dining tables), upholstered bed frames. You can find our product in living room, bed room and kitchen. 

2. Integrated manufacturing operations 
ERITZ are a fully integrated home furniture manufacturer as we are involved in the various key stages of the manufacturing process of our products. Hence, ERITZ are able to have better control over the quality of our products as well as their production costs. 

3. Outstanding product design and development 
ERITZ in-house R&D facilities include a design workshop and prototyping laboratory which would enable ERITZ to undertake our product design development activities. ERITZ R&D team is headed by our Managing Director and he is aided by a team of more than 10 capable and experienced personnel. 

4. Strong commitment to quality 
ERITZ place great emphasis on and have strong commitment to produce quality home furniture products that meet the demands and expectations of customers. ERITZ not only committed to undertaking continuous improvements in the design of the product but also the manufacturing process of the product in order to maintain consistency of output quality.


Awards

 Malaysian Furniture Leadership Awards (MFLA / AFLA) 

The Malaysian Furniture Leadership Awards (MFLA) / Asia Furniture Leadership Awards 2009 Programme is created to honour and recognise entrepreneurial leadership in furniture businesses in Malaysia & Asia, a nation that ranks amongst top 10 in world furniture export & AFLA.

 Enterprise 50 Annual Award Programme 2008 & 2009 

Enterprise 50 is an annual award programme organised by SME Corporation Malaysia (SME Corp) and Deloitte Malaysia, to celebrate and highlight the achievements of enterprising homegrown companies that are well positioned for the future.

Golden Bull Award 2008 

Acknowledged as the most prestigious and representative annual business award, the Golden Bull Award honors the best of SMEs in Malaysia by giving them due recognition for their hard-earned success and outstanding achievements.

EARNINGS EVALUATION

1. the group could benefit from strong USD;
2. Its revenue & PATAMI are expected to grow at CAGR of 8% & 21% respectively from FY14 to FYE16;
3. forecasted FY15 net cash per share of 25.5 sen; 
4. still attractive FY15E DY of 3.7%, based on 40% payout ratio.

• HLIB research target price given RM 1.42

Disclaimer:

All posts and documents submitted in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided are solely for your consideration only and you should exercise your own judgment in forming your own investment decision(s). Please also be informed that equity investment is risky and we recommend you to conduct sufficient searches for information in addition to referring our recommendations and/or opinion herein, prior to making an investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/provided by members/followers of this blog do not belong to the Admin and we take no responsibility of such.