Saturday, June 28, 2014

Weekly Trades Dated 28/6/2014

1. Traded above last week.

2. Good Luck. ^^ May the best price be yours. ^^


hng said...

Bought UOAREITS at 1.38. Based on UOAREITs 90% payout, it is expect to declare 5.2sen in next 2 week for its first half income distribution, give rise to yield about 3.77%, or annual yield 7.5%, more than 2x higher than current FD rate

hng said...

UOAREITS is one of the top yield REITS, and better than its holding UOAdev. UOAREITs downside risk is limited, and price is well support by its recurrent at least 10.4sen income based on 90% payout, and trade at undemanding PE 11.5x, NTA RM 1.50

horse said...


Good choice. ^^

PAVREIT - SOld at 1.37. Bought back 1.35. 2sen profit. ^^

horse said...

PBBANK - I am subscribing all my right issue on this. ^^

hng said...

DRB-Hicom sets revenue target of RM17bil by 2015

1. Composites Technology Research Malaysia Sdn Bhd (CTRM)
CTRM has an outstanding orderbook of RM5.68bil which would keep it busy until 2020, with giant aircraft makers Airbus and Boeing being its main customers.

But DRB-Hicom is not looking at just the aviation industry but to synergise with its defence unit and even national carmaker Proton.

“Composites represent a huge opportunity, as certain parts could be manufactured to reduce weight while still maintaining the rigidity of the body panels. CTRM will give us another dimension to the automotive supply chain, even though Proton’s unit Lotus have some light weight solutions,” Khamil says.

DRB-Hicom bought CTRM in November last year for RM298mil in a deal with the Ministry of Finance. Currently, CTRM derives about 90% of its revenue from the manufacturing of aircraft composites at its plant in Batu Berendam, Melaka.

“CTRM’s order book is enormous and it’s growing, but I’m not just looking at the aerospace industry.

“As we move into lightweight bodyparts, composite materials would play a major role as the usage in the automotive sector for instance could reduce weight by 20%, hence producing a more energy-efficient vehicle, ” he says.

Khamil says there are about 34,000 ordered aircraft to be manufactured worldwide, and as a super Tier-2 supplier to the aviation industry, major aircraft players would ultimately come to CTRM to manufacture parts for these aircraft.

“CTRM would give us the impetus and provide us the strength and infrastructure to improve our automotive and defence industry.”

hng said...

DRB-Hicom sets revenue target of RM17bil by 2015

2. Defence Technology Sdn Bhd (DefTech)
(DefTech), would also start to recognise earnings contribution this year from its RM7.55bil 8x8 wheeled Armoured Vehicle (AV8) project.

Commissioned by the government for the Malaysian military, the project will involve the design, development and manufacture of 257 AV8s, with production peaking in 2016 and 2017. The first AV8 will be rolled out by the middle of this year.

3. Konsortium Logistik Bhd (KLB)

KLB the number one logistics provider as the logistics business in the country is very fragmented. Nobody does an integrated logistics business.

“Looking at DRB-Hicom, our strength is the diversity that we have, and our first mark would be KL Airport Services Sdn Bhd, and the last mark being Pos Malaysia Bhd. The in-between would be KLB,” he says.

Currently, KLB is the primary logistics provider for Proton, and business from Proton alone amounts to RM100mil annually.

KLB recorded a loss of RM279,000 for its nine-month period ended Sept 30. It chalked up revenue of RM217mil.

“With KLB’s enormous warehousing capacity of 1.4 million sq ft, and Pos Malaysia’s 700 touch points in the country, I’m sure we would be the number one logistics provider in the country. Most of the products within Malaysia are moving to Singapore, and I believe that about 50% of the country’s goods are currently centred towards Singapore” he says.

With that, KLB’s strongest territory is in the southern part of the country, and its competitive advantage stems from its position as a top integrated logistics player.

KLB is also expected to ride on the growth of the local logistics business. According to Frost and Sullivan, the national logistics revenue is projected to grow to RM196bil from RM146.5bil.

hng said...

DRB should perceived as conglomerate rather than solely as auto player. DRB major earning growth catalyst are derive mainly from Deftech (order book RM 7.55 billion); CTRM (orderbook RM 5.68 billion) and become key logistic player capitalize on synergistic among KL Airport Services - Konsortium Logistik Bhd - Pos Malaysia

I believe, current selling pressure is trigger by proton loss (turnaround is expect after introduction new Global small car; tie Proton-Honda). As DRB foreign funds is relatively high at 19.65% as at Dec 2013, with Norwegian fund like Skagen AS and Norwegian bank Norges Bank among its top five substantial shareholders, while BlackRock, the world’s largest fund manager, also has a stake in the company. These foregoing fund could be main culprit for current selling pressure, with EPF selling added even more pressure.

Nonetheless, as DRB share have reach 2 year low level, couple with turnaround strategy and growth driven by Deftech, CRTM, and becoming key logistic player, DRB earning is expect to continue growth despite could drag down by loss from Proton. In additional, DRB dividend policy to payout 30% net profit, back by NTA RM 3.78, with possible DRB next privatization target by Syed Mokhtar (UM land, tradewind corp, tradewind plantation, Padiberas, Malakroff, Aliran Ihsan Resource)

hng said...

Bought Symlife at 1.03, stock trading cum dividend 4sen TE, about 4% dividend yield.

Symlife share at 1.03, merely half of its NTA RM 1.99. A lot of its landbank is record at book value at date of acquisition many year ago, which if revalue stand to boost its NTA further at least 2x higher.

Symlife first build and sell concept, 70 unit superlink in setapak going to ready soon, and expect to fully take up once its official open. Based on its GDV RM 100m, and all construction cost already recognized during last financial year construction period 2012-2014, therefore, all GDV RM 100m will be gross profit and boost symlife bottom line straightly

Miharu Yong 米哈鹿。杨 said...

Hi horse,i am very surprise and curiouse about your investment strategy, how you able to make profit with the 2 sen?is it you bought and selled PAVREIT with very big volume?but however,is it worth it ?(processing fee)thanks and wish to learn from you ,thanks a lot.
Newbee in share market- Miharu^^

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