2016年10月19日星期三

Chuan 7016 泉发资源 54 sen 買入 :

--估计2016 eps= 7sen,pe=10,价位=70sen
--用Eps=7sen 算,现股价53senb只是本益比(pe) 
   7.5倍在交易,明显被低估了,于2016年6月止 
   兩季己赚592万(eps=3.5sen),因此全年达標7sen机率大。
--公可过去15年(2001 至2015年)都象征性派息,
  並从2003至2015年取得净利,只有2005年和2015年少许亏损。
--于30-6-2016 公司库存价值达9103万,现金有2428万
   nta达 rm1.54 ,借款为1.74亿 ,
--30-6-2016 的第二季公司赚副己升到 2.9% (526万/1.76亿).
--17-10-2016 公司持有Aisb(2682)6.67%股份,价值 454万(8346*rm0.545)
  4-4-2016 公司持有 pineapp(0006) 63.86%股份,价值 836万  (30970*rm0.27)
--Industrial land with factory, warehouse & office 价值 达1.51亿(31-12-2015估价)
--于4-4-2016 的30大股东共持有 132853 ,000股(78.77%),总股票数量为168669,000股
--此股己冬眠久了,配合业绩回升与现钢材料价格上升,想信下来会有不错的表现.
--確定向上走势,賣压不强与市流量低,股价易动,趁54sen低继续加码,丰衣足食。
  自由市场,进出随意.
http://chuanhuat.com.my/w3/wp-content/uploads/2015/10/ProductGuideFullSet2014_7TH.pdf
http://chuanhuat.com.my/



1)转贴


Thursday, 8 September 2016


Chuan - Don't Think Twice

Chuan Huat Resources Berhad (Chuan - 7016) is a low profile company that do not make it to the ears of most retail investor in the market. However despite that, Chuan Huat Resources Berhad founded at 1957 had actually debuted into the KLSE in 1997, putting them having on public listed for coming 20 years.

Started out as a small enterprise as a hardware shop business, till date, Chuan 3 core business are divided into building hardware division, steel service center division and IT division.

While 2016 had been a challenging year for most of the equity market, the only sector that had been defying this in the Malaysian market is none other than the cold roll steel sector, celebrating from a anti dumping tax protection on cold roll while did not impose the ban on hot roll as per demanded by Megasteel, a superbly win win situation.

Most of the steel player had ran up wildly, from bigger names like Annjoo and CSCStel, and to smaller unknown off names like YKGI, Mycron, AISB and LSteel. However, this benefit had even overflow to steel and building material trader such as Leonfb and of course, Chuan Huat Resources Berhad. The anti dumping tax impose on cold roll import had definitely push demand to contract it with local player. With the better steel margin now, the industry had a breath of relieve again.

For the 2nd quarter, we can see that Chuan saw a better revenue with better margin in the building and construction supplies, especially in the steel division.


Most of the demand came from local larger infrastructure project such as the MRT packages as well as LRT extension, road building and property construction projects in the Klang Valley, as well as Penang. Geographically, Chuan had warehouse supplies for both Klang Valley and Penang. Internationally, Chuan had foray into Cambodia.

While some may see the better steel margin in Malaysia as a seasonal event that happen once in a few years, most would not see it to end so soon, which could last up to more than 1 year.

To say this, we would not be shy to annualize Chuan potential 2016 EPS towards the range of 8 to 9 cents in a quite skeptical manner, assuming they maintain the revenue and margin. While steel price take effect into a stronger USD, the hike of interest rate from the Fed will see adverse effect in the steel margin.

Aside from the better prospect of EPS in 2016, it is a known fact that Chuan had been trading on quite a discount from it's NTA of RM 1.54. Current market price of RM 0.48 is only 31% of it's NTA, which would suggest quite a reasonable bargain for investor who seek a safety margin net through NTA.

Growing and Parting with AISB ?

While it could be less known in the public, Chuan does have a considerable interest in AISB through it's fully owned subsidiary Chuan Huat Hardware Sdn Bhd. However, it had been seen that Chuan had been reducing it's stake in AISB in a rather gradual manner from more than 7.3% to the current 6.7% holding.


The recent steel boom had lifted AISB from misery. Now that AISB could had potential corporate exercise in that would liquidate shareholding, it would be a reason on the gradual reduction of stake by Chuan in AISB. However, as long as AISB continue to surge up, that will be a win win situation for both. Subsequently, AISB had signal it's intention to be involved in property development with commercial factory for a start.


Chuan disposing off Pineapp for a windfall gain ? (Pineapple Resources Berhad - 0006)

Pineapp had gained listing in 2002, dealing with computer hardware trading and supplies. However, the stock is rarely being traded as it lacks of interest and there are no significant development in the company. For the past 10 years, the stock did not see a single day trading volume of more than 1 million units exchanging hand, and the financial are just good enough to stay afloat between the red and black.

With more almost 64% in controlling stake, the worthwhile asset of Pineapp is only it's listing status. With around 5 million in cash and 0 debts, Pineapp is a very good candidate for a quick RTO. With strict listing requirement, and with the current stagnant market situation, it will be ideal for some business owner to take the RTO process. Some of the example are the likes of Tnlogis and Wong, SYF and Mieco.

Rumor in the insider circle could had identify potential party on Pineapp. However, the main concern is still the price.

Summary
For Chuan to sit in a better steel margin with consistent demand from local infrastructure project, couple with a surging up AISB and a potential land fall on sale of Pineapp, backed with stronger EPS projection for 2016, at the current price RM 0.48 which is 31% of the NTA, it really wouldn't sound too bad to hit a bet on this vehicle, considering it too broke a long term downtrend line as well.


Valuing Chuan at RM 0.80, based on potential EPS of 8 to 9 cents, and trading at 50% value of NTA. Other windfall are bonus.

Bone TP : RM 0.80