Monday, August 23, 2010

MYEG 0138 annual report 2009

MyEG serves as a community-based information and services centre for the public to access information, execute transactions and interact with the government and government-related institutions by utilizing its electronic services.

MyEG operation can be divided into two category; Government Enterprise Solution (“GES”) and Government to Citizen (“G2C”) services.

The GES services, delivered primarily through our E-Service Centres nationwide, are mainly catered to the daily electronic transactions of Jabatan Pengangkutan Jalan (“JPJ”) for services such as electronic test taking of the Highway Code, application of driving license, and security digital imaging.

The G2U services focus principally on electronic test booking, licensing, and E-Insolvency for Jabatan Insolvensi websites.
Divident policy
30% of the net profit.

Year 2007
  • Launch a driving license renewal services and deployment of E-services pertaining to MyKad.
  • Launch online transactional services for Jabatan Pendaftaran Negara (JPN)
  • Completed the acquisition of Sdn Bhd
  • Completed the acquisition of Fidelity Radiance Sdn Bhd

Future prospects
  • Launch online road tax renewal and purchase motor vehicles insurance.
  • Highly optimistic of consumer acceptance of this service, based on the existing number of registered vehicles of approximately 15 million in Malaysia.

Year 2008
  • Earning growth was driven by revision of rates for driving test services in 2007 and the launch of online road tax renewal services.
  • Another service was the online fuel cash rebate, a collaborative effort between MYEG and Pos Malaysia Berhad.
  • Government’s allocation of RM 572.7 million under Ninth Malaysia Plan to improve E-Government applications.
Research and Development Review
  • The group is researching online booking of JPJ’s on the road driving test and online checking of KEJARA demerit points. These services are expected to be introduced in 2009.
  • Other approval-pending projects include online motor vehicle registration and electronic application of vehicle registration numbers.
Year 2009
  • Revenue grew 19.8% year-on-year, largely due to the tremendous response to the Fropu’s latest service offerings, i.e. the online road tax renewal and auto insurance renewal which were launched in April 2008.
  • MYEG also grew its network of E-Service Centers from 54 in 2008 to 65 in 2009, beside that, the number of E-Service Kiosks deployed nationwide in the year under review to 315, from 140 previously .

Research and Development
  • Online application of vehicle registration numbers, tax monitoring system for the Customs Department, and online application for MyKad replacement and others.

Future Prospects
  • Almost 20% of all Malaysian Internet users went online to conduct e-Government transaction in 2008, so there is still a room to grow.
  • Continue to implement its aggressive marketing campaign in order to create to-of-mind awareness for MYEG as Malaysia’s e-Government services provider.
  • Continue to focus on organic growth, by expanding the geographical reach nationwide.
  • The group targets to open approximately another 30 E-Service Centers in 2010 bringing to a total 95 nationwide.
  • Maintain our emphasis on Research and Development in order to facilitate the continuous introduction of new services, and hone the competitive edge in the e-Government sector at the same time.

Friday, August 20, 2010

XingQuan further shareholder analysis

Just now check back to XingQuan history announcement, found that CIMB Investment Bank Berhad (“CIMB”), as the Stabilising Manager has purchased the following Shares in Xingquan International:

Date of Purchases : 10 July 2009

Number of Shares Purchased : 3,750,000 Shares

Price Range of Purchases : RM1.73 to RM1.80 per Share

CIMB Investment Bank Berhad, as the Stabilising Manager, hereby announce that we have ceased stabilisation action, with 16 July 2009 being the last date of the stabilising period. We have undertaken stabilising action and purchased a total of 5,866,500 Shares at a price range of RM1.72 to RM1.80 per Share. The last purchase in the course of the stabilising action was on 16 July 2009 at a price of RM1.79 per Share.
wow~ 5.86 million shares is 1.9% of the total XingQuan outstanding share (307.33 million), thats huge..
Why they buy so many at the price range of RM 1.72 to RM 1.80?? Does it mean that the stock price is undervalue?
But I am more lucky than them, because i bought at the price cheaper than them.. you jump i jump~ lol..
Check back to XingQuan annual report 2009, which revealed that most of the 30 largest shareholders are of security account holder, we can see that most of them are fund management account and those fund are growth fund, balance fund and value fund, very obviously as show at fund name, that is XingQuan is a growth company and the currently stock price undervalue..
Latest EPS 7 cents which translate to around PE 6, i will buy more if the stock price able to hit RM 1.40 or below..
Come come XingQuan, please drop more now~

Souce: Xingquan International Sports Holding Limited Annual Report 2009
            Bursamalaysia Annoucement on Xingquan dated 13/7/2009 and 20/7/2009

Wednesday, August 18, 2010

XingQuan Quarter report, 30/06/2010

Review of performance
Revenue and profit before tax increase 39.1% and 12.4% respectively as compared to the corresponding period in the preceding year.
From the breakout of income statement, the cost of sales and selling & distribution is increased from 65.0% and 6.8% to 68.3% and 11.6% respectively. This is the reason why profit before tax is not in line with revenue.

Sales volume is increasing and I believe the group is managed to continue this momentum in future as middle class of China people are getting more and more, what the management need to do is open more retail locations and spend more on advertisement. Unfortunately, the management didnt state out why the profit before tax is not in line with revenue, I think it is maybe management is spending more on avertisement, but however it is just my point of view, the real reason maybe need to wait for its annual report then only will know.

Friday, August 13, 2010

Fajar bought @ 13August2010

Ya, just a quick one.. fajar-wa

Wednesday, August 11, 2010

The Unfavorable Factors Now Facing Shoe Industry in China

More Cost for Labors

The Uprising in RMB

Raw Material Price Keeping Rising

Foreign Anti-dumping Charges

America Sub-prime Mortgage

The "Red Sea" Competition Within Shoe Manufacturers Themselves

Shoe Export Slows Down

XDL bought @ 11august2010

Buying XDL actually is the same reason why i buy XingQuan.
XDL is focusing on sport category while XingQuan is focusing on outdoor sport wear.
Both are trading at cheap price around PE 3+,
and huge market potential which can grow very fast.

Tuesday, August 10, 2010

What is 5C in investment?

Many people do talking about 5C to measure their wealth in their life.
As we know the 5C stands for: Cash, Car, Credit Card, Condonimium & Country Club

But actually in investment, it also has 5C.
What is that? For my personal point of view, it makes up of:
  1. Capital  (you need more capital to create more capital)
  2. Character (you must have a good character, so you will not use illegal method to earn money)
  3. Contrarian (you must always be contrarian, as Warren Buffett said "Be fearful when others are greedy, and be greedy when others are fearful")
  4. Calm (you must stay calm especially when the market is panic or over excited, have a good calm mind will help you to get better picture when you analysis something)
  5. Comfortable (you only invest your money in your comfortable level)

XingQuan bought @ 10August2010

Just bought XingQuan 5,000 shares at RM 1.68

Yesterday keeping my finger cross to buy at 1.60,
who knows it suddenly shoot up to RM 1.67 at the closing price.

I scare it will not come down anymore,
so I just a quick buy it at RM 1.68,
hope it will come down again so I can buy more.

At this moment of posting, it already traded at RM 1.77

Monday, August 9, 2010

Xingquan International Sports Holdings Limited 5155 Analysis

The gross profit margin is improving from 32.28% (FY 2009) to 33.62% (FY 2008) and 36.63% (FY 2009). This is due to the average selling price of the outdoor and indoor sports and leisure shoes for FY 2009 increased by 8.9% to RMB 82.73 per pair from RMB 75.98 per pair recorded for FY 2008. The increase in the gross profit is mainly due to the introduction of new model of shoes sold at higher selling price in the FY 2009 and as well as lower cost of sales per unit due to economies of scales.

We can see from the increasing gross margin, the china people is getting rich and XingQuan's brand AddNice is getting strong in China so that the China people are willing to pay more to acquire the the sport shoe.

Beside that, XingQuan targets the mid-high end market for the outdoor segment, focusing on the second and third tier cities in China.

XingQuan current price is RM 1.60
Latest EPS 10 cents which equal to PE 4

Source: Xingquan International Sports Holdings Limited Annual Report 2009

Xingquan International Sports Holdings Limited (5155) 2009

XingQuan (5155) is the first company from China to be listed on Bursa Malaysia. The group is involved in the manufacturing of shoe soles, apparels & accessories. Currently, its products are sold via 1,596 points of sales across China.

XingQuan is constructing a new factory with production floor area of approximately 55,000 sq metres and it is expected to completed in 2011. Upon completion, the production capacity for shoes and shoe sole products to increase to approximately 10.0 million (now is 5.9 million) and 28.0 million (now is 14.0 million) pairs per annum.

As we can see from the table above, the production capacity is almost there. After the completion of the new factory, we can assume that the revenue also will be double up in the coming few years.

China is going to have 1.41 billion people in year 2012. From the huge population and rapid economic growth creates a growing emerging middle class. I can forsee there will be more and more people afford to buy sport shoes.

It is reported that China's middle class increased by 22.1% to 80 million is January 2007, from 65.5 million in January 2005 and this segment of middle class is expected to increase to 700 million by 2020.

Based on research conducted by Converging Knowledge Pte. Ltd, the growth rate estimation ranges from 11.7% to 15.8* as the CAGR for China;s sportwear market and ranges from 27.0% to 42.0% as the CAGR for China;s outfoor sportwear market from 2008 to 2012.

Source: Xingquan International Sports Holdings Limited Annual Report 2009

Wednesday, August 4, 2010

Is it possible for a director to get paid at average RM 4,145.83??

(Picture is taken from Freight Management Holding Bhd Annual Report 2009)

There are 4 directors in Freight Management Holding Bhd. Total salary is RM 199,000.00
Which mean each director average get paid RM 4,145.83 (199,000/4/12). Is it possible?
How can the director survive in current economy nowsday with so low salary?
It is either the figure given wrongly (hardly possible) or else they are good management and do not spend much shareholder's money? There is one more thing need to be highlighted! Thats the salary range is maintained at that range since year 2004!

This is sure something very interesting about it..

Freight Management Holding Bhd

Freight Management Holding Bhd, FREIGHT (7210) is a non carrier-operating international freight service provider. It is a multimodal intermediary agent between exporters/importers and carriers. Currently, it offers severe types of service, which are seafreight, railfreight, airfreight, tug& barge, warehouse & distribution, customs brokerage, and haulage.

At year 08 January, the group is providing haulage service with total fleet of 30 prime movers and 150 trailers fully comissioned as at August 2009. Currently this service is started with cross-border land transportation to Thailand which provided door-to-door and depot-to-depot services. The group believed that this service holds potential and intended to gradually frow this service from twice weekly run to daily run.

From the latest financial report 2009, the management's efficiency efforts seccessfully lowered the operating costs which resulted in improved gross margin, from 22.1% in FY08 to 24.1% in FY09. The thing need to be highlighted is the management is not just improve the efficiency is one or two years, it has improve the efficiency since FY05 with gross profit margin 17.9%. (The high margin might due to the increasing contribution from customs brokerage, haulage and tug&barge services)

Beside that, the turnover of receivable date and payable date are improving.
Cash flow of FREIGHT is staying healthy and it has almost no debt in their balance sheet.

ROE 17%
Current share price 99 cents
Lastest earning stands at 3.04 cents which translate to PE 8.14 (99/12.16)
The price currently is not attractive yet and i will stay aside and apply wait and see strategy.

Monday, August 2, 2010

Masteel 2009

Masteel is the smallest integrated steel bar manufcturer listed on the Main Market. Today, Masteel operates a significanly bigger and modern rolling mill (annual capacity: 350,000 mt p.a.) as well as a billet plant (annual capacity: 450,000 mt p.a.). The group produces steel bars (high tensile round and deformed bars) and billets (mild steel and canadium alloy) mainly for the construction and infrastructure-related industries.

Last quarter, 31/3/2010 reported a earning 6.4 million with EPS 3.26, which gives PE 7 (91/13.04).
The coming quarter result is expected to be improved as the economy of Malaysia start to improve.

Due to its cyclic natural of this stock and commodity stock, the safety margin must be very high. So with the high share price 91 cents now, even with improving earning in next quarter, its price still consider high, unless there is a jump of the earning to double up, which can give PE 3.5

As a result, i will not touch this stock yet, unless the share price is trading at very attractive price.

Remarks: the next quarter is predicted to annouce at 25/8/2010

Masteel private placement

Masteel has completed the placement of 16,120,000 Masteel shares representing 82.81% of the total number of shares available under the Private Placement. Masteel further highlight that the Company has no further intention of completing the placement of the remaining 3,346,666 shares. Date annouce 30/7/2010.

With the new additional 16,120,000 shares, Masteel now is currently having 210.8 million shares.


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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.