Wednesday 17 June 2015

Hevea: Directors' Remuneration - Why non-executive director's remuneration so much higher than executive director?

Below is the directors' remuneration for FY13 and FY14

Why was the non-executive director getting RM1.45m to RM1.5m in FY14 and RM1.4m to RM1.45m in FY13, roughly double the remuneration of the highest paid executive director?

Shareholders who attend the agm this Friday may want to find this out from the board of directors.

Thursday 11 June 2015

Cheah Cheng Hye vs Tan Teng Boo in Signature International Berhad

Two big surprises here

1. Value partners Group which has assets under management (AUM) of US$17b emerged as a substantial shareholder in Signature International Berhad, a smallcap in Bursa Malaysia with market cap of RM333.6m

2. Melting signs versus value. Both Cheah Cheng Hye and Tan Teng Boo are proponents of value investing. However, both of them have contradicting views on Signature.

Cheah Cheng Hye was awarded the Best of the Best Region Awards -CIO of the Year in Asia in 2011, was named 25 most influential people in Asian Hedge Funds in 2010, and 25 most influential people in asset management in Asia in 2009. Cheah Cheng Hye has been given the nicknames by the Chinese media including Golden Finger and Warren Buffett of the East.

Cheah Cheng Hye outperforms Tan Teng Boo in term of AUM and awards received. However, I think Tan Teng Boo is a better salesman, and stronger in marketing, but a bit arrogant and manipulative at times.

It will be interesting to see who makes the right call on Signature. However, Tan Teng Boo probably has lost the first round. He alerted the audience on the melting signs in Signature during his seminar on 9 May 2015. Despite the FBMKLCI has dropped 4.0% since the seminar, Signature has gained 18.3% since then, an out-performance of 22.3 in a month's time! A disastrous call on Signature by Tan Teng Boo

Thursday 4 June 2015

Asia Media: How much the worth of the board of directors' trustworthiness?

Wrote about Asia Media and raised the question whether the board members of Asia Media performed their duties diligently.


In the latest quarterly results, while the revenue has been declining since 1Q14, when commenting of the groups prospects, the board maintained the same comment made since 1Q14 that "based on the above and barring any unforeseen circumstances, the Board of Directors is of the opinion that the prospects for the Group for the next quarter will remain favourable due to increasing customers' demand"

How could revenue keep declining when there is increasing customers' demand?

Who are the board members?

1. Datuk Seri Syed Ali Bin Tan Sri Abbas Alhabshee
2. Dato' Wong Shee Kai
3. Yeong Siew Lee (Senior Independent Non-Executive Director, redesignated on 13 Feb 2015)
4. Paul Jong Jun Hian (Appointed on 10 Feb 2015)
5. Dato' Hussain @ Rizal Bin A. Rahman (Resigned on 10 Feb 2015)

The chairman's statement by Datuk Seri Syed Ali Bin Tan Sri Abbas Alhabshee in 2014 annual report is not less amazing...

"2014 was a strong year, due to existing customers demand and an influx of new customers. As a result of the good performance of the multimedia advertising services and media communication services in all three business segments, the Group presented another strong financial result in 2014. The Group reported its Revenue at RM20.89 million in FYE 2014, which achieved a CAGR of 29.07% since FYE 2007. Whilst our revenue FYE 2014 fell short of expectations which 40% lower as compare to last year, we are upbeat heading into 2015. The Group reported its EBITA of RM1.1million and net loss of RM20.5million in FYE 2014, caused by non-cash depreciation and amortisation expenses approximately RM28 million

How could it be a strong year when the revenue plunged 40% compared to a year ago and making substantial loss?

Excluding depreciation and amortisation expenses, the group was still loss-making at PBT level.

And how the Chairman obtained depreciation and amortisation expenses of approximately RM28m?

Amortisation of development costs RM22,966
Amortisation of intangible assets RM236,775
Depreciation of PPE RM20,366,854
Total: RM20,626,595

How low can the Datuk Chairman and board members go? What is the worth of their trustworthiness?

Monday 1 June 2015

Melewar: Is resignation a reason for a resignation?

Another "interesting" reason given for a director's resignation following my previous posting.

Change in Boardroom


Date of change01 Jun 2015
Type of changeResignation


A director resigns from a listed issuer and does not provide reasons for his resignation. Is the listed issuer still required to provide reasons for the resignation of the director in the announcement under paragraph 9.19(12)(b) of the Main LR?

Under paragraph 9.19(12)(b), the listed issuer is required to disclose the reasons for the
cessation of office of its director. Hence, the listed issuer must engage with the relevant
director for the reasons of his resignation.

Reason for a resignation: Resignation??

P/s: Amendment was made on 4 June 2015

Reason for resignation: semi-retirement