Thursday, January 31, 2008
Bought Back LIONDIV
Bought back LIONDIV at 1.50 for 5000units, just can't resist the temptation after seeing the price drop below my target price at 1.57. Let see how it work out, obviously this stock is deviate from my focus on dividend stock. This is just could be short term attempt.
Sold RESORT
Tomorrow is Federal Territory Day and is a holiday for Kuala Lumpur and Labuan. Next week is CNY, wow...time flied. Everyone guessing GE is going to be announced after CNY, GE will be held in around March. How is our bources ? KLCI drifting lower and looks like trend is changing. I just sold 1000units of Resort at 3.86 this morning keeping 2000units that was purchased at a lower price for longterm. Looking and waiting KLCI to drift lower before entering into market again for a cheaper price hopefully. Anymore excitement after GE ?? is lifting currency control gonna stimulate KLSE ?? Sorry to tell that, can't predict the future, wait and see loh...
Wednesday, January 30, 2008
Received 15sen T.E from PANAMY
Just received 15sen tax exempted from PANAMY, i believed the next round of dividend is someway around July and probably is gonna be a good one as well, minimum 1.00 again ? just need to wait and see. Anyway, i still maintain 500units of this Panamy, thinking of buying back when it fall back to my buying target price around 10.70. Till then happay trading.
Thursday, January 24, 2008
Sold LIONDIV
Bought LIONDIV on Tuesday for 5000 units at price of 1.57 and now (Thusday) have disposed all of it at a price of 1.70 for a quick contra gain. Not bad huh...thanks to the US rate cut or the DJ rebounce ?? Have you ever ask yourself how long will this going to sustain ? If you are speculator then it would be better for you to reduce your holding, sighting that the General Election is around the corner. Life after GE may seem weary.
Tuesday, January 22, 2008
Shares Swap
Looking at the current market, really heart sick. Whatever gain previously, has now turned almost zero gain. Take years to build your gains and take days to collapse it. Phew...whatever is it "don't catch the falling dagger" but everything seem to be very expensive before, now you feel dirst cheap. Hard to hide your temptation away, i'm eager to accumulate more quality stocks like Genting, Resort, Tenaga, Maybulk, Carlsbg and Cepat but instead finally, decided to dispose off half of my PANAMY at 11.10 for a swap of LIONDIV share at 1.57 for 5,000 units. Nonetheless, still stay very positive with the market for 1st quarter of year 2008, will try liquidate some and keeping majority of my stocks for very longterm as this is my focus which i'm still very much intact with "dividend stocks"......"if you are an investor, see this as normal cycle. Constant and increasing dividend is what we are looking at". Happy trading.
Friday, January 18, 2008
Received Dividend Again From BJTOTO
I have received dividend again from BJTOTO, this round is 41st & giving 8sen and noticed that the income tax rate has reduced further to 26% instead of 27% last year. This will bring down my total average purchase price of BJTOTO to $2.01 for batch 1 and $4.21 for batch 2 respectively. Overall average price will bring down to $2.56. Other than this, i managed to dispose IOICORP @ 8.15 and grab it back @ 7.90 for a contra gain of 25sen during this sell down, this retain my holding to IOICORP with a cheaper price instead. With this my average price is $5.72. Till then happy trading.
Sunday, January 13, 2008
KLSE Top 10 Picks for Year 2008
The 10 picks are:
Sime Darby Bhd. This is the largest player in the must-have sector of plantations.
TA said Sime Darby was an excellent proxy to the plantation sector, given its fairly good sensitivity to the upstream plantation business, which is the most profitable part of the palm oil value chain. “We estimate a RM100 per tonne increase in crude palm oil (CPO) price would boost Sime Darby's earnings per share by 3%,” TA said, adding that any further earnings upgrade could stem from the group's successful extraction of merger synergy.
IOI Corp Bhd. IOI Corp is the second largest plantation counter by market capitalisation after Sime Darby. Half of its operating profit for the financial year ended June 30, 2007 was derived from the upstream plantation business.
“A key catalyst for upgrade in earnings forecast is potential acquisitions. The group has been on a merger and acquisition trail, acquiring land in Sarawak and Indonesia,” said TA.
British American Tobacco (M) Bhd. This stock is on the “buy” list of Citigroup. The consensus 6% to 8% contraction in market is too pessimistic, said Citigroup head of Malaysia research Wai Kee Choong. The counter could surprise from a hike in civil servants' pay.
Public Bank Bhd. In the banking sector, this stock is on the list of Citigroup, Aseambankers and TA.
TA said: “As capital ratios are expected to improve due to the adoption of Basel II (international banking guidelines on capital requirements) by early 2008 and no mandatory transfer of 25% annual earning to statutory reserves, the group will have some leeway to improve its capital management.”
The management has also given its guidance that the bank's risk-weighted capital ratio and capital adequacy ratio are expected to improve by 70- and 50-basis points, respectively.
Citigroup likes the counter for its strong growth in business loans and asset management business as well its dividend yield of 5% to 7%.
SapuraCrest Petroleum Bhd. At the current price, oil and gas services player SapuraCrest still has plenty of upside. While the share price has corrected some 41%, its fundamentals remain intact, said Citigroup. SapuraCrest's order book now stands at more than RM5bil.
Petra Perdana Bhd. This oil and gas sector play looks like good value at the current price.
TA's pick has outperformed earnings expectations in the recent results season due to a higher vessel utilisation of 85% and charter rates that are 10% to 15% higher as the company rolled over spot contracts that have expired.
“This is likely to be the order of the day with demand for vessels shooting up following greater exploration and production activities but hampered by tight supply,” said TA.
Future growth potential is bright, with 17 more new vessels coming on stream by 2010 and most of the vessels tailored for deepwater operations, said the research house.
PLUS Expressways Bhd. In the infrastructure sector, TA likes highway concessionaire PLUS, whose traffic volume could grow greatly with the government-driven domestic development in the next few years.
TA said traffic volume growth of 7% year-on-year to 10.9 billion passenger car units (PCU) for the 10 months to October 2007 “has been encouraging, so far”.
The group's future acquisition of the ELITE and Linkedua highways announced in June last year is also expected to benefit PLUS partly from advantageous pricing from friendly party and parent, UEM Group.
Tenaga Nasional Bhd (TNB). TNB is the choice of Aseambankers and TA. At its current price level of around RM9.80, the stock has plenty of upside to the two brokerages' target prices.
Aseambankers said there could be a “reversion of 'old' bellwethers like TNB”. “We also foresee some resurgence, particularly for TNB, following a lacklustre year for the old 'TMT' bellwethers TNB, Malayan Banking Bhd and Telekom Malaysia Bhd,” it added.
TA said driving the demand growth is the general increase in economic activity, with an expected gross domestic product growth of 6.2% in 2008 and “spillover effect” from the commencement of big-ticket Ninth Malaysia Plan (9MP) projects.
RCE Capital Bhd. For mid-caps, RCE has the largest upside among Aseambankers' picks.
RCE, the brokerage said in a report, could be a “beneficiary of higher consumer spending from the recent civil service salary hike”.
Ann Joo Resources Bhd. This is Aseambankers' favourite counter in the building materials sector, which still has plenty of upside and is trading quite cheaply at the moment.
Ann Joo is an emerging integrated steel player that could benefit from sky-high steel prices. Aseambankers expects “titanic growth” for building materials plays.
Monday, December 31, 2007
Monthly Portfolio 31-December-2007
Goodbye 2007 and Welcome 2008 !!! My portfolio for the year 2007 !! No movement for my current holding. Have adjusted GUINESS purchase price after receiving 32 sen final dividend. Definitely will continue hunting for more value stock in this new year of 2008. I welcome all reader suggestions and provide me good dividend stock, particularly those stock that giving increasing dividend each year. Till then please find below and happy trading for year 2008 and make abundantly. May your resolutions come true......
Sunday, December 30, 2007
Thursday, December 27, 2007
Net Dividend Collected
Take a look of the net dividend that i collected thus far for my portfolio :-
Friday, December 21, 2007
Remisier Versus Online Trading
Wednesday December 19, 2007
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Friday, December 7, 2007
How Much is this affecting you with minimum $40 brokerage Fee Next Year?
Is imposing minimum brokerage of $40 create impact to KLSE or otherwise ?
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Thursday, November 29, 2007
Monthly Portfolio 29-November-2007
Added GENTING, MNRB & more RESORT to my portfolio this month. As usual, nothing special to my portfolio except waiting for dividend patiently. Have adjusted YILAI purchase price after receiving 5sen of dividend. One thing to take note is that the trading volume is declining, does this indicate that the hot money is pulling out slowly ? If so how much will this affect KLCI this time round ? Will the "Synergy Drive" listing spur some excitement to KLSE ? I guess only time will tell.....lets wait see...tomorrow....
Tuesday, November 20, 2007
Dividend Yielding Stocks - PBBANK, PANAMY, MNRB, GUINNESS, BJTOTO & APOLLO
Listed below are some of the high dividend yielding stocks. These stocks have been consistantly paying good dividend without failed. Some DY is as high as 10% based on current price, one can just investing in this type of counter to profit the dividend and still much better off than putting the money in FD for a mere 3.7%.
PBBANK - Dividend Yielding 6%
PANAMY - Dividend Yielding 10%
MNRB - Dividend Yielding 9%
GUINESS - Dividend Yielding 8%
BJTOTO - Dividend Yielding 7%
APOLLO - DIvidend Yielding 8%
Sunday, November 11, 2007
EKSONS & LHH
Alicafe, below is for you, hope it help. Obviously you can see LHH is on the uptrend and EKSONS is on the downtrend. There is saying "buy on support and sell at resistance" but is all depend whether the trend is up swing or down swing. Take your judge carefully. Determine the S&R is important as it will help you to execute your trades more accurately.
Monday, October 29, 2007
Monthly Portfolio 29-October-2007
This month i have added 2 more stocks in my portfolio. The first one is PANAMY, i have been tempting to buy this stock since many months back and could not get the right time and right price. Eventually decided to settle with RM10.70 and reason buying this is simple, that is none other than "dividend" that i'm looking for. This company has been paying solid dividend for many years back till now and i like this so much as it suit my type. The second stock that i have been ventured in is IOICORP. I believe that there is still room for grow as the commodity prices for oil palm is kept pressing new record high like oil. Thus, plantation stocks in here to play.
Other than the above, i have adjusted the purchase price for BJTOTO, CARLSBG, MAYBULK and RESORTS after receiving dividend of 10 sen, 5 sen, 8 sen and 2.88 sen respectively. Please find below updated of my portfolio. Till then happy trading.
Wednesday, October 10, 2007
5077-MAYBULK MALAYSIAN BULK CARRIERS BHD
MALAYSIAN BULK CARRIERS BERHAD ("MBC or the Company")
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Monday, October 1, 2007
Public Bank set to sustain record
It plans to go big in China
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
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