Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Monday, October 25, 2010


Hunza Properties posted quarterly gain/ (profit plus capital revaluation) of approx. RM 34.69 m
Q eps = RM 34.69m/ 194m shares = 17.8 sen
Bear in mind that RM 22.7m is due to revaluation gain of Penang Paragon under FRIS 140 accounting, therefore actual properties sales profit is only RM 12m which works out to be 6.2 sen Q eps (ie. RM 12m/ 194m shares). This is a 13% drop from Q/Q eps of 7.1 sen
Declares dv 5.6 sen ex. 31st Dec . Maintain buy at RM1.60

Monday, October 18, 2010

CMMT Reits. Property Co. Steel Cos. on my radar

CMMT just posted their maiden earning of Q eps of 6 sen. Assuming quarterly earnings can be maintained and with annualised PER of 10, fair value Fv = 6 x 4 x 10 = RM2.40
Comparatively AXreit, UOAreit, Qcap, ARreit, STAreit have PER ranging from 11 to 13. So CMMT is a buy for me at RM1.09

Sunrise (nta RM 2.21, Q eps 7.8 sen ) Assume PE 10, Fv = 3.12
Suncity (nta RM5.21, Q eps 15 sen ) Fv = RM 6.00
DNP (nta RM 2.35, Q eps 6 sen ) Fv = RM 2.40
Hunza (nta RM 2.30, Q eps 7 sen ) Fv = RM 3.20

Lion Ind (nta RM 4.25, Q/Q eps 10/11/12/17 sen ). Trading at PE of 4
MaSteel (nta RM 2.12, Q/Q eps 7/5/3/4 sen ). Trading at PE of 5
Kinsteel (nta RM 0.89, Q/Q eps 2/4/2/1 sen ). Trading at PE of 11
Leader (nta RM 1.25, Q/Q eps 4/3/2/3 sen ). Trading at PE of 8

Sunday, October 10, 2010

A Check on TM & Axiata Earnings

TM (nta RM 2.07, Q/Q eps 5.1sen, 4.8sen, 6.9sen, 3.5sen in August). Earning in August not that great, dropped by 50%... Trading at PE 20 is expensive..!
Let's see if new Uni-Fi subscriptions can improve near future earning.

Axiata (nta RM 2.23, Q/Q eps 6 sen, 7sen, 11sen, 7 sen in August). Quarterly earning declined by 35%... Trading at PE 15... Will buy on dips..

While USD has tumbled against most currencies, other currencies has strengthen more than MYR. Few months back AUD used to be 2.8 MYR, SGD was 2.3 MYR. Now they have move up to almost 3.1 and 2.4 respectively. What does this tells me...?
AUD and USD is close to parity... Could it be flight to commodity currencies, carry trade to higher yielding currencies.....?

Wednesday, October 6, 2010

Earnings Drop: Top Glove

Top Glove just released their quarterly earning
Net profit approx. RM 43 million, a 30% decline compared to their previous RM 64 million
Therefore earning per share, Qeps = RM 43m/ 618m shares issued = RM 0.073 or 7.3 sen
My fair value Fv = 7.3 x 4 x 10 = RM 2.92. So at RM 5.70, it's expensive for my liking.

Speculating on Supermax similar decline of 30% net profit
Net profit = 70% x last quarter RM 45 million = RM 32 m
Q eps = RM 32m/ 339 m shares = RM 0.095 or 9.5 sen
My fair value Fv = 9.5 x 4 x 10 = RM 3.80
I'll be comfortable to buy around RM3.30 when it slides from the current RM 4.26