Latitude Tree, Metronic, My EG, Dutch Lady, Affin Bank, Eco World, Eco World International, VS Industry, Scientex, LKL International and Perak Corp

KUALA LUMPUR (Dec 17): Based on corporate announcements and news flow today, companies that may be in focus on Friday (Dec 18) include: Latitude Tree Holdings Bhd, Metronic Global Bhd, My EG Services Bhd, Dutch Lady Milk Industries Bhd, Affin Bank Bhd, Eco World Development Group Bhd, Eco World International Bhd, VS Industry Bhd, Scientex Bhd, LKL International Bhd and Perak Corp Bhd.

Latitude Tree Holdings Bhd has proposed a one-for-one bonus issue of up to 97.16 million new shares plus an employees’ share scheme (ESS) of up to 10% of the total issued share capital of the company.

The furniture maker said the actual number of bonus shares to be issued will depend on the total issued shares on the entitlement date, which will be determined and announced at a later date upon receipt of all relevant approvals. It said the ESS is for eligible directors and employees of the company and its subsidiaries.

Its board of directors expects the proposals to be completed by the second quarter of 2021.

Metronic Global Bhd plans to raise up to RM33.94 million — almost a quarter of its current market capitalisation of RM141.52 million — through a private placement of up to 373.74 million shares or 30% of its issued shares, mainly to fund its existing and future engineering projects. The issue price of the new shares and the third-party investors will be decided at a later date, the company said.

The bulk of the proceeds, or RM32.65 million, will be used for existing and future engineering projects. Its engineering project order book stood at RM112.82 million at the latest practicable date, according to the filing to Bursa Malaysia.

My EG Services Bhd (MyEG) has cancelled 100 million of its treasury shares. The group’s total number of treasury shares held after the resale or transfer stood at 53.66 million. Its adjusted issued capital after the cancellation is 3.67 billion shares.

Dutch Lady Milk Industries Bhd said it will invest RM340 million to construct new manufacturing facilities on three parcels of land in Bandar Enstek, Negeri Sembilan that it bought this year. The group said the facilities will include manufacturing and warehousing facilities, support facilities and office facilities. They will be used for the manufacturing of the group's dairy products with capacity and space for the manufacturing of other variations that it may produce.

The facilities will be constructed between 2021 and 2025, the group said, adding that it will use internal funds for the investment.

Affin Bank Bhd has confirmed that two more of its employees at its headquarters have tested positive for Covid-19 and they are now undergoing treatment.

The bank said it will be providing the employees and their families with the necessary support and guidance while all other staff in Menara Affin who had immediate contact with the affected staff will be screened and tested for Covid-19.

It did not say that the headquarters will be closed but clarified that the affected office space as well as common areas such as elevators and toilets are being cleaned and disinfected accordingly, adding that disinfection will also be carried out in the entire building.

Eco World Development Group Bhd (EcoWorld) and its 27%-owned associate Eco World International Bhd (EWI) have set a combined sales target of RM5 billion for the financial year ending Oct 31, 2021 (FY21).

For financial results, EcoWorld said its net profit fell 18.41% to RM66.45 million for the fourth quarter ended Oct 31, 2020 (4QFY20) from RM81.46 million a year ago. Revenue declined 30% to RM635.47 million from RM906.54 million. The group attributed the lower profit for FY20 mainly to closures of sales galleries during the Movement Control Order (MCO) period, the temporary cessation of site activities from mid-March to mid-June, and the cumulative impact of inventories written down in 3QFY20 and 4QFY20.

EcoWorld declared a maiden interim dividend of two sen per share.

Meanwhile, EWI saw its net profit plunge 85.25% to RM17.44 million for 4QFY20 from a year ago, even though revenue jumped to RM57.38 million from RM254,000. The weaker performance in FY20, it said, was due to a lower share of results of joint ventures (JVs) and the commencement of accounting impairment of goodwill.

VS Industry Bhd’s net profit climbed 38.7% to RM66.68 million for the first quarter ended Oct 31, 2020 (1QFY21) from RM48.07 million a year ago, mainly due to a favourable product sales mix for its Malaysian operations. This was despite a 4.6% drop in revenue to RM987.1 million from RM1.03 billion, due to lower contribution from its China business.

On a quarter-on-quarter (q-o-q) basis, its net profit rose 23.2% from RM54.12 million for 4QFY20, while revenue grew 11.84% from RM882.61 million. The group declared a first interim dividend of 1.2 sen per share, which will be paid on March 5, 2021.

Packaging materials manufacturer Scientex Bhd’s net profit grew 14.3% year-on-year to RM92.53 million in the first quarter ended Oct 31, 2020 (1QFY21), from RM80.96 million in the same quarter last year, as its packaging division reported higher earnings.

The improved bottom line came despite an 8.6% decline in revenue to RM802.26 million from RM877.37 million. The group did not declare any dividend for the quarter.

LKL International Bhd is buying two pieces of freehold industrial land in Seri Kembangan for RM12 million or RM556 per sq ft. The lands, measuring a combined built-up area of 21,600 sq ft or 0.49 acres, also comes with two units of three-storey semi-detached factory erected on top.

The group’s wholly-owned subsidiary LKL Advance Metaltech Sdn Bhd inked the sale and purchase agreement today for the acquisition of the land from Positive Frontier Sdn Bhd, a private limited company engaged in property investment and development. It is wholly-owned by SE Commerce Sdn Bhd.

LKL said the acquisition will be funded via the proceeds it raised from the private placement announced on July 17, which raised a total of RM45.45 million.

Perak Corp Bhd has announced a debt restructuring with its creditors involving cash settlements worth over RM220 million, issuance of its shares worth over RM30 million, proposing a debt waiver amounting to RM544.55 million, and future settlements by the group's turnaround plan in the ordinary course of business.

The company is selling off four pieces of land to the Social Security Organization (Socso) for a total of RM78.68 million to settle part of its debts. It added that the debt settlement is part of efforts towards the formalisation of the group’s regularisation plan to uplift itself from its Practice Note 17 (PN17) status.  

A sum of RM70.81 million of the sale proceeds will be used for repayment of bank borrowings, and the other RM7.87 million will go for working capital requirements. The "scheme creditors" involved in Perak Corp's debt settlement scheme include Affin Islamic Bank Bhd, CIMB Bank Bhd, Affin Hwang Investment Bank Bhd, Bank Pembangunan Malaysia Bhd and Malaysia Debt Ventures Bhd.  

Separately, it has been slapped with an unusual market activity (UMA) query by the stock exchange over the sharp rise in its share price and volume today. The group is engaged in property and investment holding, real property development and provision of management services.

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FBM KLCI was up 10.35 points to 1,499.91

 The FBM KLCI was up 10.35 points to 1,499.91 in line with other Asian markets that rallied on US President Donald Trump backpedalling on a decision to halt further stimulus talks.

Most heavyweights on the FBM KLCI advanced, led by Petronas Chemicals climbing 20 sen to RM5.90, IHH Healthcare adding 10 sen to RM4.99 and Maybank risig seven sen to RM7.17.

Rubber counters took a breather after its recent rally with Top Glove staying flat at RM8.80 and Hartalega dipping four sen to RM16.86.



In plantations Sime Darby Plantation, which experienced a selloff yesterday, bounced 11 sen higher to RM5. IOI also rebounded seven sen to RM4.34 while KL Kepong stayed flat at RM22.46.

Top active stocks were Trive flat at 1.5 sen, Kanger down 0.5 sen at 19 sen and Bintai Kinden up 2.5 sen to 70.5 sen. Asian markets meanwhile ticked higher on renewed hopes for more US stimulus.

IS NOW THE TIME TO BUY?

Every market correction creates opportunity, and financial planners say this one will be no different.

If you have money that you’ve been holding on the sidelines while waiting for an opportunity to get into the market, this is probably that opportunity.The markets historically have always returned to normal and have paid handsomely to those who remained true to their plan.Stocks moved higher Tuesday as the Trump administration announced a stimulus package. Small investors have been told to sit tight, not to sell, stay the course, don’t panic. But now that we’re officially in a bear market thanks to coronavirus,

Financial Advisor VS Robo Advisor

What Is a Robo-Advisor?

In 2014, Betterment launched the world's first robo-advisor with the aim of serving ordinary individuals who did not have enough assets to interest a skilled financial advisor, many of whom still require an account minimum of five- to six-figures and who charge 1% or more each year in assets under management (AUM).

What Is a Finanacial Advisor?

Most financial advisers draw on a combination of their own education and experience. When you go to large financial advising firm, investment guidance is often based on a set of high quality portfolios created by investment experts following guidelines for varying investor scenarios.

Financial Advisor Benefits

Of course, the main thing that is lost with a robo-advisor is the human element. Financial advisors are often more than investment managers—they are communicators, educators, planners, and coaches to their clients. Relationship-building is a core part of any financial advisor's business and is often a top criteria for clients as well. A robo-advisor, for all the fees that it saves you, will never show up at your son's baseball game, take you out to lunch, or send a condolence card.

Being on-call to answer questions, provide personalized advice, and to capture a broad swath of knowledge—from investments to tax and estate planning to insurance—is a valuable resource. This human touch, however, comes with extra cost, but it's a cost that many people find valuable and are willing to pay for.

Financial Advisor-Algorithm Hybrids

That said, several robo-advisors now do have financial advisors on-call to answer questions and provide assurances. However, unlike traditional financial advisors, many of the financial advisors hired by robo-advisors are unable to make specific investment recommendations or alter the client's portfolio weights—those are governed by the algorithm.

The Bottom Line

 Although financial advisors are more expensive and require larger starting amounts, and even though humans are prone to mistakes and implicit biases and errors, those costs and even those fallibilities can provide both value and solace

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Like many people, you might also have expectations and dreams and life objectives for yourself and your family. These might incorporate purchasing a home or business … putting something aside for  college education for your children … taking a fantasy excursion … lessening taxes … retiring comfortably. 

Managing your personal finances is ultimately your responsibility. However, you don’t have to do it alone. A qualified financial adviser, like us, can help you make decisions that make the most of your financial resources.

Financial advisory can help you - 

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Do you need the services of a financial adviser?

How do you know if you could benefit from the services of a qualified financial adviser?

 You may not have the expertise, the time or the desire to actively plan and manage your complete portfolio. You may want help getting started. You may benefit from an objective, third-party perspective on what are often emotional, difficult decisions. And in today’s hectic world, it can be beneficial just to have a financial expert looking over your shoulder to double-check your efforts and make sure you stay focused and follow through with your trades.

The Process

The personal financial planning process is consisting of six steps:

Step 1: Establishing and defining the client and personal financial advisory relationship

Step 2: Gathering client data and determining goals and expectations.

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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)

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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.

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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.

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A Bullish Bias May Emerge in Greatech Technology Bhd

Shares in Greatech Technology Bhd rose 2.47% this morning following a positive technical outlook on the stock.

At 9.19am, Greatech added 4 sen to RM1.66 with 1.67 million shares traded.

RHB Retail Research said Greatech Technology Bhd may rise higher after posting a white candle and hitting its new 52-week high.

In a trading stocks note today, the research house said as the 21-day SMA line is likely to turn higher, it would appear that the bullish sentiment has been enhanced.

“A bullish bias may emerge above the RM1.55 level, with an exit set below the RM1.46 threshold.

“Towards the upside, the immediate resistance is at RM1.70. This is followed by the RM1.80 level,”

KLCI likely to rise further

Bursa market outlook:

The FBMKLCI staged a post-Budget rally yesterday as the Malaysia post-Budget 2020 Forum may have given market sentiment a boost, in our opinion. The overall performance across the board was also positive thanks to the optimism on the partial US-China trade deal. Barring any negative events coming from the external front, the index should continue to rise further today.

Resistance: 1,580 & 1,600. Support: 1,540 & 1,500.

Gainers: 487
Losers: 367
Unchanged: 407

DOW: 26,787.36 (-0.11%)
FTSE100: 7,213.45 (-0.46%)
DAX: 12,486.56 (-0.20%)
HSI: 26,521.85 (+0.81%)
STI: 3,124.45 (+0.34%)
KLCI: 1,567.59 (+0.69%)

Highlights of Budget 2020

Features of Budget 2020:

1) Govt has repaid GST refunds amounting to RM15.9b to more than 78,000 companies, and income tax refunds of RM13.6b to 448,000 companies and 184,000 taxpayers

2) Govt to extend Youth Housing Scheme administered by Bank Simpanan Nasional from Jan 1, 2020 until Dec 31, 2021. The scheme also offers a 10% loan guarantee via Cagamas to enable borrowers to get full financing and RM200 monthly instalment assistance for the first two years, limited to 10,000 home units.

3) Govt allocates RM1 billion in investment incentives to attract Fortune 500 companies and global unicorns

4) Budget 2020 has four thrusts including boosting economic growth in new economy and digital era, investing in people.

5) Protracted trade war offers Malaysia unique opportunity to become choice destination for FDI with high added value