Let us know which stocks you want us to study and present for you!
As
you know, it has been Stockify practice to shortlist 10 Stocks to Watch
and few stocks to Review in every quarter after the report card season.
As much as we want to, it is quite impossible for us to present all of
the stocks in the list. Therefore, we would like to INVITE our readers
to VOTE on the poll we created
to let us know which stocks you would like us to study in this quarter. We would present the most voted few stocks.
To watch:
1) KAREX
Some may not know that, the world largest condom manufacturer is a Malaysian company, called KAREX Berhad. KAREX produced more than 5 billion pieces of condom in 2016, roughly 20% of the world market, and export to more than 120 countries. KAREX helps brands like Durex, Lifestyle and Ansell to manufacture their condoms. Condom industry is an industry with high barrier of entry. That's why we have so many listed rubber glove makers in Malaysia but only one listed condom maker. That's also why KAREX could achieve a double digit high profit margin even being a manufacturer (KAREX own brands contribute to a relative small portion to its revenue). Good business always come with a premium price. However, after seeing its net profit drop for 5 Quarters consecutively, investors started to dump the KAREX share in big volume, causing its share price drop to RM 1.80, from historical high price of RM 3.10 (after bonus issue adjustment). The question is, is it time to "buy cheap" yet?
1) KAREX
Some may not know that, the world largest condom manufacturer is a Malaysian company, called KAREX Berhad. KAREX produced more than 5 billion pieces of condom in 2016, roughly 20% of the world market, and export to more than 120 countries. KAREX helps brands like Durex, Lifestyle and Ansell to manufacture their condoms. Condom industry is an industry with high barrier of entry. That's why we have so many listed rubber glove makers in Malaysia but only one listed condom maker. That's also why KAREX could achieve a double digit high profit margin even being a manufacturer (KAREX own brands contribute to a relative small portion to its revenue). Good business always come with a premium price. However, after seeing its net profit drop for 5 Quarters consecutively, investors started to dump the KAREX share in big volume, causing its share price drop to RM 1.80, from historical high price of RM 3.10 (after bonus issue adjustment). The question is, is it time to "buy cheap" yet?
2) AJIYA
AJIYA
was started as a metal rollforming manufacturer in 1990. Today, it is a
manufacturer and provider of metal roofing and safety glass products
that cater to a wide variety of users from industrial commercial
buildings to the common residential houses. As far as we know, the
management has a good track record in managing and transforming the
company, from its history of venturing into safety glass business,
transferring from 2nd Board to Main Board, and maintaining a good
balance sheet. Despite that, its business nature of low profit margin
and highly susceptible to external factors doesn't make it appealing to
us. However, the company recent involvement in Integrated Building
System (IBS) could provide what it lacks to be a good investment, result
in a possible re-rating in share price. We decided to examine further.
3) HEXZA
HEXZA
Corporation Bhd, a local chemical manufacturer incorporated since 1969
has just posted a surprising loss on their latest quarterly report,
mainly attributed to steep hike in their cost of raw materials for resin
products and hike of alcohol excise duty for their ethanol division.
Despite of this, the company has been in net cash position for some time
and also rewarding their shareholders with consistent dividends over
the years. Will the recent sell off provide an opportunity for fellow
investors?
4) YSPSAH
Yung
Shin Pharmaceutical Southeast Asia Holdings (YSPSAH) as its name
suggested, mainly operates in trading and manufacturing of
pharmaceutical products. The company has expanded its footprint in
Singapore, Malaysia, Vietnam, Cambodia, Myanmar, Philippines, Indonesia
and Thailand. As a player in a heavily regulated pharmaceutical
industry, the company has shown solid balance sheet and strong cash
flow. Perhaps, it deserves a deeper study for a better understanding of
its business.
5) UMSNGB
UMS-Neiken
Group Bhd (UMSNGB), an OEM and OBM that involves in designing,
manufacturing, and trading of electrical wiring accessories &
electrical products. Their OBM products are branded under UMS and
Neiken. Their products have been sold in Malaysia and 26 other countries
around the globe. The company has not attracted much spotlight, and us
in Stockify are happy to conduct a deeper research for it.
6) OLDTOWN
Oldtown
Berhad produces and sells white coffee products to the households and
food service industries. The Company also provides milk, tea and roasted
coffee powder. Despite the "low" valuation, their strong fundamentals
definitely caught our eyes.
7) KESM
KESM
Industries Bhd. is an investment holding company, which engages in the
provision of semiconductor burn-in services. It offers electrical
testing of semiconductors and reel assembly. Last year, the company was
listed as a "no-brainer investment" by KC Chong mainly because of its
strong cash flow. However, is KESM still a no-brainer investment at
present day?
Did you know, KESM was trading at around RM2.50 back in 2015?
8) JOHOTIN
Johore
Tin Bhd operates through the following segments: Investment Holding,
Tin Manufacturing, and Food and Beverage. The Investment Holding segment
focuses on investment holding activity and provision of management
services. The Tin Manufacturing segment manufactures various tins, cans,
and other containers. The Food and Beverage segment produces and sells
milk and other related dairy products. The Company's increasing revenues
and profits have caught our attention. Also, it was one of the stocks
that past ColdEye 5 yardsticks in 2016.
9) KMLOONG
Kim
Loong Resources Berhad is an investment holding company. The Company is
engaged in the cultivation of oil palm. The Company operates through
two segments: Plantation and Milling. The Plantation segment is engaged
in the cultivation of oil palm. The Milling segment is engaged in the
processing and marketing of oil palm products. We never look into
plantation stocks, maybe we should start from KMLOONG, a plantation
company with good fundamentals.
10) HAI LECK HOLDINGS
To
be honest, we don't know much about the business of the company
yet. Established in 1975, listed in Singapore, Hai Leck Holdings is one
of the leader in Singapore which provides engineering, procurement and
construction (EPC) services to the oil & gas, petrochemical,
pharmaceutical and utilities industries. By flipping through the
financial reports, we are impressed with its strong cash flow,
impressive earnings ability and at the same time trading at a cheap
valuation. We think it will worth the effort to study further.
To review:
1) RGB
We
first presented RGB in this blog after the announcement of its 3QFY16
Financial Results. Two quarters have passed since, and we think it is
time to review the company, especially after seeing the price of the
stock went historically high to RM 0.36 after our coverage, and dropped
back to current level of RM 0.285.
Check out our previous posts on RGB
2) IQGROUP
We
first presented IQGROUP after the announcement of its 2QFY16 Financial
Results when it was trading at RM 2.78. Two financial quarters later, we
continue to see good business performance in IQGROUP. We decide to
review IQGROUP to assess its valuation especially after the stellar
performance in its share price (close to 50% gain).
Check out our previous posts on IQGROUP
3) HOMERIZ
We
first presented HOMERIZ after the announcement of its 1QFY16 result.
One financial quarter later, especially with recent strengthening of
USD, we saw HOMERIZ price drop to RM 0.92, from the price of RM 0.98
when we first covered. If its fundamentals hold, it is definitely an
opportunity to buy HOMERIZ at greater margin of safety.
Check out our previous posts on HOMERIZ
4) HOCK LIAN SENG
Being
the first SGX listed company posted (after announcement of 4QFY16) in
this blog, we see a modest return in the stock price after a financial
quarter (including the high special dividend of SGD 0.125). After the
distribution of Special Dividend, some may see the stock lack of
catalyst. We would like to review the company.
Check out our previous posts on HOCK LIAN SENG
https://www.stockifyblog.com/single-post/Q1FY17
