Subscribe to the IPO of Solarvest - Listing Gains Expected

Listing date: 26/11/2019
Shariah status: Shariah-compliant approved by the Shariah Advisory Council of the Securities Commission

Share Capital
Market Cap: RM136.718 mil
Total Shares: 390.623 mil shares (IPO 19.531 mil, Company Insider/Miti/Private Placement 79.297 mil)

Business
Design & Sale of solar energy sevices (EPCC services), Operations & Maintenance of solar energy services , and Operate Solar Plant.
EPCC Services: 94.7%
Operations & Maintenance: 0.16%
Solar PV plant: 5.12%

Fundamental
Market: Ace Market
Price: RM0.35 (eps: RM0.028)
P/E & ROE: PE12.5, ROE17.43%
Cash & fixed deposit after IPO: RM0.1145 per shares
NA after IPO: RM0.16
Total debt to current asset after IPO: 0.56 (Debt: 51.111 mil, Non-Current Asset: 23.644 mil, Current asset: 91.273 mil)
Dividend policy: No formal dividend policy.

Financial Ratio
Trade receivable: 71 days
Trade Payable: 54 days
Inventory turnover: 7 days

Past Financial Proformance (Revenue, EPS)
2019: RM112.201 mil (EPS: 0.028)
2018: RM45.069 mil (EPS: 0.021)
2017: RM39.009 mil (EPS: 0.017)
2016: RM35.286 mil (EPS: 0.011)

Net Profit Margin
2019: 9.9%
2018: 18.3%
2017: 16.7%
2016: 11.8%

After IPO Sharesholding
Lim Chin Siu: 41.1% (indirect)
Tan Chyi Boon: 41.1% (indirect)
Chiau Haw Choon 33.6% (indirect)

Director & Key Managemen Remuneration for FYE2019 (from gross profit 2018)
Dato' Che Halin: RM66k
Lim Chin Siu: RM490k
Tan Chyi Boon: RM463k
Chiau Haw Choon: RM42k
Chang Kong Foo: RM42k
Fong Shin Ni: RM42k
Total director & key management remuneration from gross profit: RM1.145mil or 5.1%

Use of fund
Business expansion: 8.7%
Capital expenditure: 11.5%
Working capital: 55.5%
Repayment Debt: 14.5%
Listing expenses: 9.8%

Competitors (PE & ROE)
Solarvest: PE12.5 ROE17.43% GP9.9%
Cypark: PE8.76, ROE10.49%
Tekseng: Loss making
Gading Kencana: loss making
Helios PV: GP23.9%
Mattan: GP1.3%
Plus Solar: GP12.4%

Industry Analysis (Forecast)
Green energy is very clearly futures trend of energy. Solar is in sunrise industry with a lot competitors.

Good thing is:
1. Co-founder Owners is young.
2. PE12.5 still acceptable, but a bit high in same industry & ROE17.43% is healthy.
3. Debt ratio is healthy.
4. Revenue growing for past 4 years.
5. In sunrise industry.

The bad things:
1. Net profit margin slowing down.
2. No clear dividend policy.
3. Director remuration is over 3% of gross revenue.
4. Use 14.5% IPO fund to pay debt.
5. Many competitors not making good profit in same industry.
6. Listing on Ace market.
7. Revenue highly depend on EPCC segment.

Conclusions
Green energy is a must in futures. However, they are facing large competitors environment in same industry.

Look Out for Listing Gains

IPO Price: RM0.35
Good time: RM0.38 (PE13.5)
Bad time: RM0.17 (PE6)

Subscribe to register for the IPO and more Signals -  IPO

Improve Your Trading with Bollinger Bands

Technical traders make trading decisions based on their price charts. Each technical trader is a bit different, but the strategies they use can be grouped into a few broad categories.

Indicator-based trading is relying on indicators to analyze the price and provide trade signals. Many indicators provide a specific trade signal which alerts the trade that now is the time to take a trade.

Bollinger Bands are a technical indicator developed by John Bollinger. The indicator forms a channel around the price movements of an asset. The channels are based on standard deviations and a moving average. Bollinger bands can help you establish a trend's direction, spot potential reversals and monitor volatility. All of this can help you make better trading decisions.

Day Trading Uptrends with Bollinger Bands:

Bollinger bands help assess how strongly an asset is rising (uptrend), and when the asset is potentially losing strength or reversing. 

Here are three guidelines for using Bollinger Bands in an uptrend.

• When the price is in a strong uptrend it will typically touch or run along the upper band during impulse waves higher. When it fails to do that it shows the uptrend may be losing momentum.
• Even during an uptrend prices drop for periods of time, known as pullbacks. During an uptrend, if the price is moving strongly then pullback lows will typically occur near or above the moving average (middle) line. The pullback doesn't have to stall out near the middle line, but it does show strength if it does.
• When the price is in a strong uptrend it shouldn't touch the lower band. If it does that's a warning sign of a reversal.

Day Trading Downtrends with Bollinger Bands:

Bollinger bands help assess how strongly an asset is falling (downtrend), and when the asset is potentially strengthening (to the upside) or reversing.

These three guidelines, similar to uptrend guidelines, can help use Bollinger Bands in a downtrend.

• When the price is in a strong downtrend it will typically touch or run along the lower band during impulse waves lower. When it fails to do that it shows the downtrend may be losing momentum.
• Even during a downtrend, prices may rally for periods of time, called pullbacks. During a downtrend, if the price is moving strongly lower then pullback highs will typically occur near or below the moving average (middle) line. The pullback doesn't have to stall out near the middle line, but it does show selling strength if it does.
• When the price is in a strong downtrend it shouldn't touch the upper band. If it does that's a warning sign of a reversal.

Bollinger Bands can be combined with a trading strategy, though, such as the day trading stocks in two hours method.

The guidelines above are not a trading strategy on their own. A trading strategy requires entry points, exit points, and risk management, which we Provide to our clients. Know More.

Boost Your Trading / Investing Portfolio

As an investors we are all looking for ways to earn higher returns, but with lack of market knowledge, time and improper strategies we find it difficult to do so. In this webinar we would be discussing on how we can manage our portfolio in such a way that we could get consistent returns along with avoiding investment mistakes.
Our market expert will take you through the Webinar and as we all know managing a portfolio has become complicated over the period of time , we would explain some simple strategies and tools that have proved to be very effective in improving investment returns. Implementation of such strategies could add an expected return premium of upto 3-5% per year on overall investment.

For More Assistance Call us on - +601548770695

Stock market likely up big today. Enjoy!

The FBMKLCI index closed 6.08pts higher yesterday after China’s Commerce Ministry said Thursday that Beijing had agreed with Washington to lift existing trade tariffs between the two nations in phases. The optimism over the US-China trade deal could potentially lift local market sentiment. Coupled with the US stock market up big overnight, both KLCI and Bursa ACE index are likely to trade higher today. Resistance: 1,620 & 1,637. Support: 1,600 & 1,577.

Gainers: 456
Losers: 382
Unchanged: 398

DOW: 27,674.80 (+0.66%)
FTSE100: 7,406.41 (+0.13%)
DAX: 13,289.46 (+0.83%)
HSI: 27,847.23 (+0.57%)
STI: 3,285.72 (+0.71%)
KLCI: 1,609.33 (+0.38%)

• Binasat Communications (0195) (RM0.41): Technical Buy 

Targets: RM0.445, 0.47
Stop: RM0.37

• Gadang Holdings (9261) (RM0.745): Technical Buy 

Targets: RM0.805, 0.85
Stop: RM0.705

• Hong Kong: 

Agricultural Bank of China (1288) (HK$3.33): Technical Buy
Targets: HK$3.53, 3.66-3.70
Stop: HK$3.23

• New Times Energy Corp (166) (HK$0.103): Technical Buy 

Targets: HK$0.128, 0.154
Stop: HK$0.095

Bursa Billionaires and Their Strategies

While the economy is confronting headwinds from various bearings, it is the enterprising soul of the rich that is giving some relief. By making administrations and items, they give business and add to the country's coffers by means of assessments. Obviously, en route, they additionally accumulate riches for themselves, which is the objective of each business person.

The 34 Bursa billionaires on our list have a combined wealth of RM115.133 bil, an amazing amount by local standards. It translates to about 27.5% of the country’s latest international reserves. To put their combined wealth in perspective, as of Oct 15, Bank Negara Malaysia had RM418 bil in international reserves, which can help the government finance 8.8 months of sustained imports. In comparison, the RM115.133 bil amassed by these billionaires can help sustain more than two months of imports for the entire nation!

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FBM KLCI down 7.5pts as index seen overbought

FBM KLCI down 7.5pts as Index Seen Overbought

The FBM KLCI fell 7.5 points or 0.47% at Bursa Malaysia's afternoon close today amid US-China trade deal uncertainties and after analysts said the benchmark index was in overbought zone.

"After racking some 3% gains over the past couple of weeks with the key index already at the overbought zone, a retreat is in store. The fresh uncertainties over the Sino-US trade deal may also serve as an excuse for profit taking activities to take precedence," Malacca Securities Sdn Bhd said in a note today.

At 12:30pm, the KLCI settled down at 1,590.48 on profit taking after closing up 17.98 points or 1.14% at 1,597.98 yesterday.