Weekly Review – 29 October 2017 to 4 November 2017

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KIMHIN(5371)


Price Target : 1.73
  • Australia moderate property market recover could drive higher ceramic demand
  • Plan for upgrading existing plant for RM 10,000,000
  • Domestic revenue share growth to 25% in 2016
  • A recovery in property transaction volumes and more active secondary home market potential drive higher ceramic demand in FY 2018
  • Second largest ceramic manufacturer behind White Horse by domestic revenue.
  • Use RM 9.8 Million to purchase a penthouse at Melbourne Square Project
  • Top 4 ceramic player
o   White Horse
o   Yi Lai
o   Seacera
o   Kim Hin
HOMERIZ (5160)
The Star (1st November 2017)

Target Price : 1.18
  • Improve cost through effective trainings for workers and continue seeking for automation opportunities.

Dividend payment (30th October 2017)

  • 2.2 sen, subject to the approval of HOMERIZ shareholders
  •  Bring total dividend of 4.2 sen for the financial year end 31 August 2017.

Quarterly Report for the financial year end  31 August 2017 (30th October 2017)

  • Current year quarter had 19.2 % profit margin compared to last year 14.48 %. Cumulative quarter profit margin for these year is 21.02 % while last year profit margin is 20.42 %.
  • Current year quarter effective tax rate is 19.37 % which is higher than last year quarter which is 17.31 %.  However cumulative quarter effective tax rate for these year is 21.05 % which is lower than last year 22.51 %
  • There is an increase of company asset in term of property plant and equipment  by 10.02 %, inventories by 23.92 %, trade and other receivable by 23.56 %, and deposit, banks and cash balances by 6.60 %. These make the total asset increase by 12.40 % for the year
  • HOMERIZ liability is increase by 4.26 % for the year 2016.
  • HOMERIZ had net placement of RM 16,000,000 for the year 2016

LIIHEN (7089)


  • Price Target : 5.04
  • Fire broke out in LIIHEN second premise of one of its subsidiary
  • 4 out of 8 blocks production line are affected
  • The lines affected are mainly old line cater for small quantity orders
  • According to management the fire could affect 5 – 10 % of the November production
  • In 2014, fire occurred in LIIHEN main factory and production is able to resumes in 3 days time.

Extraordinary General Meeting (1st November 2017)

  • The EGM had pass the proposal to acquisition of Domain Partners Sdn Bhd.

CHINWEL (5007)

Annual report 2017 (30 October 2017)

  • Total asset for 2017 had increase by 1.77 % mainly contributed by inventories increase by16.39 % and trade receivable increase by 3.03 %. There is decrease in property, plant and equipment by 2.25 % and cash and bank balance by 14.33 
  • There is increase of share capital by RM 28,162,800 due to new Companies Act 2016. No increase of number of outstanding share.
  • The total liabilities had reduce by 17.45 % in 2017, which mainly contributed by other payables and accruals by 40.27 % and borrowing by 20.27%
  • The profit margin had decrease from 21.10 % in 2016 to 17.60 % in 2017
  • Effective tax rate had increase from 15.28 % in 2016 to 18.13 % in 2017
  • There is significant increase in indirect material by 166.96 % in 2017
  • Lesser inventories written off in 2017 which is RM 467,551 compared to RM 8,857,230 in 2016

 http://ivkls.blogspot.my/2017/11/weekly-review-29-october-2017-to-4.html