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A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Ornapaper Berhad - From corrugated boxes to carton boxes

As you may know, most stocks on Bursa Malaysia have traded lower in recent weeks due to the bearish sentiment and lack of positive factors. Share prices may continue to retrace or consolidate, but either way, it is good to keep your options open. Ornapaper Berhad (5065) is a company I came across due to tips from my acquaintance, and thought I should review this stock.   

Ornapaper Berhad is a company involved in the paper packaging industry and is listed on Bursa Malaysia. To be precise, it designs, manufactures and sells corrugated boxes and carton boxes within Malaysia. It derives about 90% of its revenue is from the paper packaging industry while the remaining 10% of its revenue is from the manufacture of paper-based stationery.

Picture 1: Carton Boxes

Carton/corrugated boxes have many uses and serve the needs of multiple industries. Among the industries that it serves is the electrical and electronics, food and beverage, furniture, textile, rubber, plastic, and agriculture indust…

Technical Analysis Review: FBMKLCI 26/11/2017

This is a follow-up review. It has been a month since I last charted the FBMKLCI. Market sentiment continued to weaken and dragged the FBMKLCI lower. As the down trend is still intact, it will most likely persist until it reaches support.

I previously reviewed the FBMKLCI HERE. From my review, I highlighted the bearish trend. After almost a month, the bearish trend is still persisting. Check out Chart 1 below on the medium term trend:

Chart 1: FBMKLCI Medium Term Trend


Nothing too exciting about the FBMKLCI though. Investors should be cautious about the market sentiment. My view is that the FBMKLCI may not have found firm support yet and may trend lower.

Chart 1 above shows the medium-term trend of the FBMKLCI. There are a few key support and resistance levels:

Key Support:
S1: 1,700
S2: 1,680

Key Resistance:
R1: 1,725
R2: 1,751

Chart 2: FBMKLCI Short Term Trend


Final thoughts
Probably, it might be a good time to cash-in onto some profits now. Judging from immediate price action, prices may…

Trading Ideas: Century Logistics Holdings Bhd (14/11/201)

This week I wanted to take look at Century Logistics Holdings Bhd (7117) to see whether it has any potential investment value. I have never analysed this company in more detail as I had never allocated time to look at it; my loss though. Since rallying to a high of RM 1.40 in June 16, 2017, it retraced to RM 1.03 in September 2017. Ever since then, the company’s share price has been consolidating.

The company is involved with the logistics business, as described by its name – Century Logistics. This analysis is a litmus test to see whether this company warrants more attention. It was noted that on October 31, 2016, the founder and major shareholder, Datuk Richard Phua, had transacted to dispose off his 31.44% stake in Century Logistics to CJ Korea Express Asia Ltd for RM1.45 per share. Its new parent company CJ Logistics Corp is quite a large Korean logistics company with an annual turnover of over USD 4 billion.

Below is a chart of its share price performance for 1 year:

Chart 1: Centu…

Technical Analysis Review: Hiap Teck Venture Bhd (5072) - 12/11/2017

I recently found out about this company -- Hiap Teck Venture Bhd (5072) -- through a friend of mine, and I thought I should take a look at it. I have not performed my fundamental analysis on this company yet, but I wanted to write about my observations on the price action of this company. 

Based on a surface level review of its financials, I noted that its joint venture company -- Eastern Steel Sdn Bhd -- recorded an impairment loss on its property, plant and equipment of about RM 266 million in its latest Q4 2017 financial result that was announced on September 28, 2017. As Hiap Teck's interest in the joint venture company was 55%, its share of losses from Eastern Steel was roughly RM 155 million. See Picture 1 below on the summary of its quarterly results:

Picture 1: Summary Hiap Teck's Quarterly Results






(Source: i3investor)

Technical Analysis Review of its Share Price

Picture 2: Price Chart of Hiap Teck









Based on my observations of the price chart, I think the hurdle for prices to…

Chronicles of Kronologi Asia Berhad

Kronologi Asia Berhad (0176) is an electronic data management solutions provider listed on the ACE Market of Bursa Malaysia. This company has garnered much attention as its share price jumped from RM 0.36 per share in late April 2017 to RM 1.10 per share in early-November 2017 – a remarkable 300% gain!

Chart 1: Kronology Asia Berhad Share Price


What does it do?
Its prospectus pretty much sums up what it does “To achieve data assurance and protection through the systematic backup, storage and recovery of enterprise data to ensure business continuity.” In short, it is a computer data storage systems provider. It provides data storage solutions to its customer by tailoring their needs to its products.

Its products are categorized into 2 segments:

1. Enterprise data management infrastructure technology (EDM Infrastructure Technology) – the physical hardware, software and/or equipment components of EDM

2. Enterprise data management managed services (EDM MS) – backup, health checks,…

Trading Ideas: Success Transformer Corporation (7207)

Success Transformer is a company that I have been monitoring for some time. I previously made some money investing in it, and thought it would be a good idea to revisit this company now. It is involved with the industrial lighting and electric transformer manufacturing business. It has a listed subsidiary, Seremban Engineering Berhad (5163), which is involved with the process engineering industry.

Its share price has been consolidating for some time, and I think there may be opportunities to invest in this company.
Chart 1: Success Transformer Corp share price


From 2014 until 2016, Success' process equipment division was hit by cost overruns on certain projects which resulted in it reporting losses. Looking at its price chart, its share price has not progressed much from 2014 - 2016. Post financial year 2016, business operations seemed much better. It appears that its process engineering division has since gotten out of the red and is now reporting profits. Even the profit margins of…

Technical Analysis Review: HeveaBoard (5095) 25/10/2017

This counter had recently rallied and closed at a high of RM1.75 on October 23, 2017. What followed in the subsequent days were 2 straight days of profit taking. This was evident by the 2 significant black bodied candles which closed lower until October 25, 2017.
Refer Picture 1 below on the technical chart of HeveaBoard.

Picture 1:HeveaBoard Chart 25/10/2017

For any investor, testing a high 3 times at RM1.75 in 3 months would be an important indicator of a potential change in trend.

Currently, HeveaBoard is trading at an important price "zone" - immediate medium term support level of RM 1.62.

Knowledge sharing
For all support/resistance levels, there is a +/- variance of approximately 1% from the support line indicated. Hence, support at RM 1.62, can be interpreted as support at RM1.61 or RM 1.63.

Can the support zone hold?
Probably, because prices retraced about 50% from its previous rally. Note that the previous rally began in the highlighted RED rectangle - September 2017 - …

Technical Analysis Review: FBMKLCI 21/10/2017

The FBMKLCI has been depressed lately. Looking at the chart below, it makes me feel uneasy.
Charting the FBMKLCI is more for determining the overall market sentiment, and may have no relation to individual stocks.
Picture 1: FBMKLCI - Key Support / Resistance Levels

Market sentiment has been bearish. This is evident by the string of black candles in the past 2 weeks. Sentiment became more bearish as the week progressed as the index made 4 consecutive lower closes towards the end of the week. On Friday, October 20, 2017, the market closed at 1,740.65 - immediate support level.

A brief back ground on the bearish trend
On October 9, once prices failed to rally above resistance at 1,766 - zone of price rejection, prices immediately turned south. Prices broke below key support level of 1,752.

Based on the current trend, the bear trend will most likely resume until it finds support. Currently, the index is trading at its immediate support of 1,742 / 1,741.

Key support levels
If the support le…

Technical Analysis Review: Homeritz Corporation Berhad (5160) 15/10/2017

Just a brief technical analysis review of this company:

Medium Term Trend Analysis:
Chart 1

The trend for this company seems decent. A healthy consolidation pattern with a bullish bias. Forming a base above RM 0.93. And price action has been trending above its 20-day exponential moving average.

Key support areas:
S1: RM 0.940
S2: RM 0.930 (Stop loss)
S3: RM 0.910 (Stop loss)

Key resistance areas:
R1: RM 0.965
R2: RM 0.975
R3: RM 1.000

Momentum indicators:
Both the MACD and the RSI have been holding up fairly well indicating consolidation.

Potential Entry point:
A good entry point (buy) to this counter would be at around the price range on RM 0.93 - RM 0.94.

Potential Exit point:
Suggesting to exit at RM 0.98 and RM 0.99.

Risks:
Low trading volume.
Appreciation of MYR against USD.
External factors.

Short term chart:


If you want to FIND OUT MORE on the FUNDAMENTALS of this company check out my article HERE.

Note: This is not a recommendation to buy or sell this stock by the writer. The writer owns shares in…

Bison Charging Ahead !

Bison Consolidated Berhad (5275) is a dynamic convenience store company listed on the Kuala Lumpur Stock Exchange (KLSE). It has grown many folds since it first opened its myNEWS.com store in 1996. 11 years later, it has opened about 300 stores in Malaysia. In 2012, Bison entered into a joint venture with WH Smith Travel Limited to operate WH Smith news, books, travel and convenience stores in Malaysia. My first impression about the convenience store business was that this is a saturated market – apparently NOT. The thought of many convenience stores come to mind – 7 Eleven, 99 Speed Mart, KK Super Mart, NZ Magazine Centre, Family Mart, K Mart and etc.. All of the stores aforementioned compete within the convenience retail segment.

Picture 1: myNEWS.com in Bangsar LRT Station


Picture 2: myNEWS.com in Masjid Jamek LRT Station

Since its listing on the KLSE, the share price has surged almost 100% from RM1.10 to RM2.38 in one and a half years. The surge was mainly driven by the growth story…

Are Furniture Stocks Still in Vogue? So what’s Up with Hevea?

HeveaBoard Bhd (5095) is a Company that manufactures and sells high grade particleboards (PB) and ready-to-assemble (RTA) furniture. I understand that this stock has been heavily covered and monitored by most investors and finance houses, but I’d like to break it down to the lay investor.
Hevea has a very small presence in Malaysia – 3% of annual turnover, and it largely sells its furniture overseas, especially Japan (31%), China (22%), Australia (8%), and Korea (5%). About 78% of its turnover is from the Asia Pacific region and 5% from Europe. Focusing on Asia Pacific is the right strategy as this region is experiencing sustained growth.

Check out the article from Forest & Wood Products Australia regarding the potential growth of PB and MDFs in the Asia Pacific region:

http://www.fwpa.com.au/statistics-count-newsletter/1246-viewpoint-particle-board-and-mdf-market-development-in-asia-and-access-to-low-grade-logs-and-residue-materials.html

Below is a summary of the article:
There will …

Home with Homeritz

Homeritz is a company that designs, manufactures and sells its own upholstery furniture. Based on its latest 2016 annual report, it does business in every continent (Americas, Europe, Africa, Middle East, and Asia Pacific) except the North and South Pole. 
Chart 1: Revenue Breakdown Based on Geographical Location
(Source: 2016 Annual Report)

The annual report, however, does not specifically state the major countries that it sells its furniture to. I’d love to get my hands on these information. But alas, I’m not a privileged investor.

Financial Analysis
Chart 2: Income Statement Breakdown
All per share figures are computed using Chart 2 undiluted number of shares. As of the end of June 2017, Homertiz has 514,000 outstanding warrants.
(Source: Annual Reports and Quarterly Reports)

Chart 2 is an extract of the income statement of Homeritz. In 2015, Embrace Industries Sdn Bhd, a subsidiary of Homeritz was fully acquired. Hence, all profits from the subsidiary now fully accrue to the shareholde…