Friday 30 January 2015

Safe Cities Index 2015 - Kuala Lumpur not in the top 50

South East Asia countries that made it to the top 50:

2nd: Singapore
39th: Bangkok
48th: Ho Chi Minh City
50th: Jakarta


Poh Huat - In Sweet Spot

Summary of research report on Poh Huat

Likely to benefit from US economic recovery
Improving US housing starts, normalising US unemployment rate, improving US consumer index, stronger projected US GDP growth in 2015 and 2016

Expected margin expansion going forward
Consolidating its business: cease loss making operation in China, operation in Malaysia focuses on office furniture, more favourable economic environment in its main target market, US.

Benefiting from weakening of RM against USD
The sales mainly denominated in USD

In net cash position
Net cash RM18.1mn as of 4QFY14 (17sen/share) from net debt RM21.6mn in FY11. Besides, it has book value of RM21mn of land held for property development, to be developed in future to broaden the revenue and income base of the group

Proven track record
Have been profitable since listing in 2000
Revenue and net profit grow at CAGR of 7.9% and 6.0% respectively
The MD has more than 30 years of experience in the furniture manufacturing industry
Profitable despite US was previously impacted by sub-prime loan crisis

Reasonable dividend yield
No official dividend policy and expected dividend yield of 5.0% and 5.5% for FY15 and FY16

Treasury shares
5.9% of treasury shares. Could afford 1:20 share dividend

Tuesday 27 January 2015

Analysis on Poh Huat

Analysis on Poh Huat by Capital Cube!/stock/MY/MALAYSIA/7088/analysis-reports

Sunday 25 January 2015

Lack of public disclosure by Gunung Capital Bhd?

Gunung Capital Bhd recently announced that it has received award for a service contract amounting to RM165.0m for provision of transportation bus service for the national service trainee program from 26 December 2014 to 25 December 2017.

In less than a month, the Prime Minister announced the temporary suspension of the national service program for 1 year when revising Budget 2015.

Defence Minister tweeted his “guarantee” to National Service stakeholders that the deferment of the government program would not affect the positions of camp operators and trainers. But what about the transportation bus service provider, GUNUNG?

On average, the contract works out to be RM55m a year, which is material considering GUNUNG's annual turnover of about RM80m in recent years.

Shouldn't GUNUNG make an immediate announcement to clarify whether/ how the deferment of national service trainee program affects the financial performance of the group?

According to Bursa listing requirements, a listed company MUST make immediate public disclosure of any material information, if it is reasonably expected to have a material effect on:-

a) the price, value or market activity of any of the listed company; or
b) the decision of a holder of securities of the listed company or an investor in determining his choice of action

Wasn't it the case?

The share price did react to the news and it was widely reported by the media (The EdgeThe Star, The Sun, and others).

Timely public disclosure would minimise the possibility of those privy to the details of the contract having an unfair advantage over the public investors.