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Michael Teo Member Star
Total Cumulative Posts 15
Joined Dec 2018
Country MALAYSIA
Gender Male


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Corporate

STOCK: TOPGLOV (7113)

Blog 22 Feb 2019, 10:55:21 AM

We are neutral on Top Glove’s latest corporate exercise. While the exercise will result in interest savings, it is offset by a mild EPS dilution assuming the exchangeable bond would eventually be converted into new shares. We continue to like Top Glove for: (1) its strong growth prospects driven by both organic growth and M&As; (2) its continued efforts in improving quality ad operational efficiency; and (3) its dominant market position as the largest rubber glove manufacturer in the world.

Corporate

STOCK: TOPGLOV (7113)

Blog 22 Feb 2019, 10:55:09 AM

The proceeds will be utilised to pare down part of its USD syndicated term loan and other higher interest loans. We anticipate a RM15.4mil savings. Assuming a full conversion of the exchangeable bonds, the additional 131.2mil new shares (equivalent to 5.1% of current outstanding shares) would dilute FY20F EPS by 2.6%, which is insignificant.

Corporate

STOCK: TOPGLOV (7113)

Blog 22 Feb 2019, 10:54:49 AM

We raise our FY19–21F forecasts by 3.3%, 3.0% and 2.7% respectively to reflect interest savings from the issuance of US$200mil exchangeable bonds. However, we tweak our FV lower to RM6.34 (from RM6.35) after factoring in a fully-diluted share base of 2,689.4mil (+5.1% vs. the current outstanding shares). Our FV is based on DCF (WACC 6.4%; terminal growth 2.5%). At RM6.34, the implied CY19F P/E is 17.4x. Top Glove has issued US$200mil guaranteed exchangeable bonds with the following key terms: 1. 2% p.a. coupon rate and fixed exchange rate of RM4.0703 per USD; 2. An exercise price of RM6.2040, which is at a 20% premium to the reference price of RM5.17 as at 20 February 2019; and 3. A tenure of five years (maturity date: 1 March 2024)

Corporate

STOCK: AXIATA (6888)

Blog 22 Feb 2019, 10:54:25 AM

Even though Axiata currently trades at a bargain FY18F EV/EBITDA of 5x, way below its Maxis’ 13x, the group’s likely weak 4QFY18 results announcement later today from further year-end asset impairments amid deteriorating overseas risk profile from Nepal’s additional capital gains tax charge on NCELL acquisition and intense competition from both local and overseas mobile operations constrain upside momentum. Additionally, the government’s intention to reduce Khazanah Nasional’s GLC holdings casts possibilities of a share overhang over the medium term.

Corporate

STOCK: AXIATA (6888)

Blog 22 Feb 2019, 10:54:14 AM

The announcement did not provide the estimated value of the arrangement, which will be determined by usage at the agreed rates. While some revenue will be generated from utilizing Celcom’s network, we expect minimal earnings contributions from webe over the medium term given its low subscriber base relative to the 4 main cellular operators currently contending for market share. Hence, we are neutral on this development.

Corporate

STOCK: AXIATA (6888)

Blog 22 Feb 2019, 10:53:55 AM

Axiata has secured an award from TM to provide 2G, 3G and 4G connectivity for voice, short messaging and data services to TM’s 73%-owned webe digital services under its 4G multioperator core network system for 3 years. This expected development is part of Axiata’s earlier domestic roaming collaboration with TM, which was signed back on January 2016. Recall that Axiata’s wholly-owned Celcom, TM and Packet One Networks (Malaysia) Sdn Bhd (renamed webe digital services) have signed 3 core agreements – TM next-gen backhaul, high speed broadband (HSBB) access and domestic roaming services – to leverage each other’s existing infrastructure and optimize asset utilization for cost efficiencies.

Corporate

STOCK: AXIATA (6888)

Blog 22 Feb 2019, 10:53:27 AM

We maintain our HOLD call on Axiata Group (Axiata) with an unchanged sum-of-parts-based fair value of RM3.86/share, which is at a 25% holding company discount to our sum-ofparts of RM5.14/share. This implies an FY19F EV/EBITDA of 5x, 2 SDs below its 3-year average of 7x.

Corporate

STOCK: BOILERM (0168)

Blog 22 Feb 2019, 10:52:44 AM

Export sales accounted for 60% of the bioenergy unit’s revenue in 9MFY19 (9MFY18: 54%). We believe that most of the overseas contracts are from Indonesia. Boilermech is one of the top three manufacturers of palm boilers in Indonesia. EBIT margin of the bioenergy division edged up to 14.9% in 9MFY19 from 13.4% in 9MFY18. EBIT of the water treatment division rose to RM2.4mil in 9MFY19 from RM2.0mil in 9MFY18 supported by the delivery of projects. EBIT margin of the unit slid to 9.3% in 9MFY19 from 9.5% in 9MFY18. Boilermech's balance sheet is clean. Net cash amounted to RM81.5mil as at end-December 2018 compared with RM73.5mil as at end-September. The group’s gross borrowings stood at RM8.1mil as at end-December 2018.

Corporate

STOCK: BOILERM (0168)

Blog 22 Feb 2019, 10:52:26 AM

Boilermech’s net profit rose by 12.3% to RM16.3mil in 9MFY19 from RM14.5mil in 9MFY18 on the back of projects, which command higher margins and increased contribution from the water treatment division. Group revenue inched up a mere 3% YoY to RM162.5mil in 9MFY19. Revenue of the bioenergy division was flat at RM137mil in 9MFY19. In a Bursa Malaysia announcement, Boilermech said that it continues to face a challenging operating environment as the order book for the current financial year is lower than last financial year.

Corporate

STOCK: BOILERM (0168)

Blog 22 Feb 2019, 10:52:08 AM

Maintain HOLD on Boilermech with an unchanged fair value of RM0.65/share. Our fair value for Boilermech is based on an FY20F PE of 15x. Boilermech is currently trading at an FYE3/20F PE of 13.7x compared with CB Industrial Product Holdings’ basic FYE12/19F PE of 10.8x. We believe that Boilermech is trading at a premium valuation as it has a strong market share in the boiler industry in Indonesia and Malaysia. Boilermech's 9MFY19 net profit was within our expectations.

Corporate

STOCK: INARI (0166)

Blog 22 Feb 2019, 10:51:08 AM

Inari’s new 640K sq ft factory in Batu Kawan is said to cater for additional jobs from its German optoelectronics customer, as well as potential new jobs from prospective customers. However, management is still unable to disclose any details, hence we have not factored any earnings contribution from its Batu Kawan facility into our profit forecasts. We continue to like Inari for its: 1) RF, which benefits from the transition to 5G and rising content per device; 2) laser devices, which are boosted by increasing biometric and augmented reality (AR) applications in smartphones; and 3) LED, which rides on the increasing demand for highresolution billboards in shopping malls. However, we remain cautious in the immediate term as the fight in 5G between the US and China may potentially delay commercial roll-out of 5G connectivity.

Corporate

STOCK: INARI (0166)

Blog 22 Feb 2019, 10:50:50 AM

2QFY19 earnings of RM58.1mil represents a 3.3% dip QoQ and a 16.4% decline YoY. This is broadly expected following weak smartphone sales figure during the Christmas season, specifically the US flagship devices. The recent launch of new South Korean flagship devices also confirmed the removal of the iris scanner in favour of a higher screen-to-body ratio. While the iris platform was reconfigured to produce a health sensor and facial recognition modules, it was not sufficient to cushion the decline in overall orders. With regards to Inari’s new product — fine-pitch LED (<2mm pixel pitch) used for billboards — the ramp-up from its pilot stage did not take off as quickly as expected. This has left a void, mainly caused by the fall in smartphone sales.

Corporate

STOCK: INARI (0166)

Blog 22 Feb 2019, 10:50:26 AM

We downgrade our recommendation on Inari Amertron (Inari) to HOLD from BUY and trim our FY19F-FY21F forecasts by 5.1%–8.3% due to lower contribution from the radio frequency (RF) segment and the removal of the iris scanner from a South Korean flagship model. Our fair value is reduced to RM1.65/share (previously RM1.90/share), pegged to an unchanged CY19F FD PE of 20x, in line with its 3-year average. Inari's 1HFY19 core net profit of RM118mil (-15.3% YoY) came in below our expectation, accounting for 45% of our full-year forecast and 49% of consensus estimates.

Corporate

STOCK: ATURMJU (7181)

Blog 22 Jan 2019, 3:51:28 PM

Original Post : https://www.investingnote.com/posts/1220353

Aturmaju Resources Berhad is a clear buy recommendation. Especially short-term traders should be able to realize quick profits. But for the longer-term oriented, the current market situation is favorable.

The price is in an intact and solid upward trend. The gap close is additionally supported by a Fibonacci reatracement and the cross of several EMAs is another clear buy signal.

It's definitely not too late. The situation is very favourable at the moment. The first target at 0.600 is only one target. I would recommend to divide the position by three.

For example you buy 3000 pieces for 0.46. 1000 you sell at 0.600 (0.14 per piece profit); 1000 you sell at 0.750 (0.29 per piece profit) and the last third can be held if the prices continue to rise. 
So you quickly secure a small profit and still have the chance to make a big profit. The chance risk ratio is better with this method.

Forum

FORUM: ATURMAJU (7181)

Blog 22 Jan 2019, 3:46:58 PM

So as usual i always look into news by theedge and i3investor blogs, this stock really makes me shock coz when i saw is only 0.30 then if jumps to 0.60 in just 1 month i guess.

Although now the price has fall to 0.46 to 0.49, in between, however what makes me interested is according to the news, they might going to sign a 20million project with Yes's. First the price is 0.60 when is announced it has MOU with Yes's, imagine if they sign the project, the price will likely skyrocket. Anyone is with me now and agree with what im thinking? 

Few articles that i read from i3investor regarding this stock:

https://klse.i3investor.com/blogs/klselim/190535.jsp

https://klse.i3investor.com/blogs/ZheKang/190898.jsp

https://klse.i3investor.com/blogs/klsedailycounters/190695.jsp

https://klse.i3investor.com/blogs/jkhoo/190732.jsp

https://klse.i3investor.com/blogs/ZheKang/190875.jsp


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