Skip to main content

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 project
Post a Comment

Trading Ideas: Sasbadi Holdings Berhad (5252)

Sasbadi is one of the companies that I came across numerous times back when I was a student. I was a loyal supporter of Sasbadi reference books as I found their books well organized, contained relevant information, and had a good range of exercise questions. If you were born after the 80’s I am sure you would have heard of Sasbadi. In fact, my decent examination results were partially due to purchasing their good quality reference books. 



Today I’d like to take a look at Sasbadi Holdings and see whether it has any investment merit.

Below is a chart of Sasbadi’s share price:

Chart 1: Sasbadi Historical Share Price

Based on the chart above, prices have retraced near to its initial IPO price of about 45 cents. Despite appreciating to a high of RM1.06, prices started to turned south in 2017. 

Chart 2: A detailed look at Sasbadi's share price 

Noticed the long-term bearish Head-And-Shoulders formation which formed in November 2016 to August 2017. This followed with a break of the "neckline" at RM0.87 in August 2017. Prices pulled-back beyond the neckline but eventually gap down in November 2017. This was the beginning of its downtrend and it has not found its bottom yet. Probably the downtrend was initiated by its bonus issue in August 2017, which added about 140 million shares; consequently, this diluted its earnings. Additionally, due losses recorded in Q4 2017, the downtrend was exacerbated. 

Based on technical terms, I would think that prices are still searching for its bottom. Currently, prices are trading at its immediate support at 44 cents. The next immediate support is at 35 cents. 

That is my take on its technical charts. For a holistic view, let's look at its financials.

Chart 3: Quarterly Revenue

Based on the quarterly revenue trend, its revenue seems to be seasonal. Peaking in Q1 and Q2, and trending lower in Q3 and Q4. Probably, this is the time where students purchase reference and revision books -- at the beginning of the year. And demand for its books tapers towards the end of the year due to publishers printing updated versions to cater for the next year. 

This seasonal trend is also echoed in its quarterly operating profit and PAT results in Chart 4 below. It recorded relatively higher profits in Q1 and Q2. 

Chart 4: Quarterly Operating Profit and Profit After Tax (PAT)

Final thoughts
Based on its general trend, Q2 generally performs better than Q1, then its upcoming Q2 2018 financial results should be positive. This could mean that its downtrend may be consolidating sooner than expected and it may be reaching its bottom soon. 


However, until further consolidation is evidenced, I would think it would be wise to keep Sasbadi on the investment radar for further developments. 


 To understand the market sentiment, do check out my article FBMKLCI's trend HERE.

 If you like my posts and this blog please SUBSCRIBE in the link above or follow me on Google+ !!!    THANKS


Note: This is not a recommendation to buy or sell this stock. The writer does not own shares in this company. The writer intends to share his view point on this stock’s potential investment value, any decision to invest or sell shares in this company is entirely at the reader’s own risk.
Labels:

Comments

Post a Comment

Popular posts from this blog

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 project
Post a Comment
Read more

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 shar
5 comments
Read more

Apollo Food Holdings Bhd (6432)

Is investing in Apollo Food Holdings Berhad (6432) a secure and risk-free investment? If you are not sure what Apollo Food Holdings does, you would at least have come across its products in your childhood. Do these snacks below ring a bell? Who would have thought that this company is listed on the Malaysian Stock Exchange? Based on the BCG growth share matrix, Apollo Food is categorized as a “cash cow.” Milking cash from its day-to-day operations. There has not been much excitement in its share price; it has been in a trading range of RM4.50 – RM6.00 for over 2 years. This stock will ultimately disappoint investors who are seeking growth companies with quick capital appreciation. However, those who are seeking a safe haven for their capital, or intend to protect their capital may consider this stock in their portfolio. To invest in Apollo, an investor ought to look at a longer time horizon. Hence, I will be looking at a time frame of 5 years. Chart 1: Key Financial and Investment Stat
7 comments
Read more

Heveaboard Bhd (5095) Update (11 May 2018)

This week I will be reviewing Heveaboard. This is a follow-up review to my previous Heveaboard posts.  As you are aware, many stocks on Bursa Malaysia were beaten down to its lows recently. Now, after a historic win in the 14th Malaysian General Elections by Pakatan Harapan (Alliance of Hope), will the stock market bounce back?  The General Election held on May 9,2018, was by and large peaceful and went on without a hitch.  Malaysians are hoping for a clean, fair, and just government. This positive perception will be echoed in the stock market and will bring back market confidence. We now turn our focus to the annual report of Hevea  that was recently published on April 30, 2018. I thought it would be a good time to perform a follow-up review of this stock.  Technically, it is showing signs that its share price has bottomed out and has formed a base. The share price has retraced from a high of RM1.72 in October 2017 to RM0.88 in May 8, 2018, a retracement of about 50% !!  See Char
1 comment
Read more

What should investors do during times of uncertainty

Mr Investor has been on hiatus. There have not been any concrete investment opportunities, at least on my horizon. So what have I been doing lately? I have been concentrating on my regular job! lol ...  Today, I felt like I should write about a topic which resonates strongly with me: What should you do when the markets are behaving unfavorably? The term "behaving unfavorably" means a volatile market, and any gains are wiped-out the following few days. I am sure most investors or traders, after having being exposed to the markets can relate to this. I have a few suggestions to help investors handle this situation better: Determine the stage of the stock market Before even thinking to buy shares, an investor should assess the overall market condition. It is said that timing is everything, and in this respect, this statement is true to its core. I shall share a secret with you on how to determine a good time to enter the markets. Usually, it is impos
Post a Comment
Read more