TomyPak (cont-ed) 2

I Just dig out from cimb research and would like to share with you few point.

Tomypak remains an OUTPERFORM with an unchanged
target price of RM4.96, based on a 30% discount to our 12x target P/E for Daibochi.
The share price weakness following the poor 2Q10 results is a buying opportunity.
Factors that could catalyse the stock include margin recovery and the approved share
split and bonus issue.

Among the lowest P/Es in small-cap coverage. In our small-cap universe, Tomypak
remains one of the cheapest, with a CY11 P/E of only 5.9x compared to an average of
9x for our small-cap universe. The gross dividend for FY11 is an attractive 6.2% but
could be higher if the net dividend payout ratio turns out to be higher than our 27%
forecast.

I always believe buy something with extra discount -- buy honda accord with myvi price, how you like it ? Provided it's a high performance, reliable & stable car. Is tomypak match all of these ?! If tomypak PE race to somewhere near PE11/12, our return will be somewhere near 100%.


Cimb Report

Today Star -- TomyPak (cont-ed)

Today Star -- TomyPak (cont-ed)

1.) EPS, Dividend have been quite constant and stable giving out 3 cent each quarter

2.) As government new regulation, packaging industry now can transfer raw material cost to consumer, meaning to say their margin will not affect by the raw material price fluctuation. Raw material go up 30 cent, their price will go up 30 cent or even more.

3.) Nowadays you go shopping you’ll notice, most of the packaging last time used to be tin, glass or so on.?? Lots of fancy fancy plastic, boxes to attract consumer which can boost up packaging industry like tomypak

4.) Tomypak is the 2^nd largest packaging company vs daibochi but if you ask me, I would prefer to buy something with discount and valuable – tomypak PE 6.x instead of something over price – daibochi PE9.x .

5.) The last – Revenue vs Net profit = Margin (How efficient the company use their resource turn into profit) compare tomypak (7.85%) vs daibochi (6.84%) from last quarter give me an idea – Large doesn’t mean the best

Tomorrow Star, Today Dirt -- TomyPak

Sorry for long time no update, busy with change job, move house & settle down......

Below is my latest profolio which I just bought today...

Reason ?? I'll post later when I'm free ~~ ^-^

Digi Join The Iphone Battle

Digi.Com Bhd., the Malaysian mobile- phone company controlled by Norway’s Telenor ASA, signed an agreement to sell Apple Inc.’s iPhone in Malaysia to tap growth in a market that it forecasts will surge 10-fold in five years.

“Growth is coming back this year,” Digi’s Chief Executive Officer Johan Dennelind said in an interview with Bloomberg television in Kuala Lumpur today. Digi will start selling iPhone 3G and 3GS in “coming months,” he said.

The three-year agreement will help Digi increase sales more than 5 percent cent this year, higher than the industry average, Dennelind said. Digi’s sales rose 2 percent last year, slowing from 10 percent in 2008 as Malaysia’s economy shrank 1.7 percent. The government forecasts economic growth of more than 4 percent this year.

This indeed a very good news for consumer and maxis monopoly Iphone ended.

Source : http://www.businessweek.com

Steel price vroom vroom ~~ Are you ready ?

BHP jacks up coking coal prices 55%

Mumbai: BHP Billiton, the world’s top coking coal producer, has signed a coking coal deal with Indian steelmakers at $200 per tonne, up 55% from last year’s prices.

Pawan Burde, vice president (research), PINC Research said the industry was expecting a price rise of around $180 per tonne. “Steelmakers will have to increases prices by $60-70 per tonne.” Burde believes due to the strong steel demand in the country and robust auto and infrastructure spending, passing on this cost to the consumers won’t be a problem.

So Steel kaki, are you ready for roller coaster ??

Steel Sector Comparison

The steel industry in Malaysia can be categorically subdivided into two main segments, namely the long products and the flat products --
Steel consumption is projected to grow at an annual rate of 5%, with the ratio of longs to flats falling to about 40:60 by 2007. As Malaysia continues to industrialise, the consumption pattern will progressively favour flats as is
evidently seen in other newly industrialised countries. The anticipated increase in flats consumption is also due to the expanding manufacturing sector, being the main driver of industrial development in the coming years.
On the other hand, the longs segment will continue to depend on the construction sector, primarily the residential sub-sector as large infrastructure projects will be progressively scaled down under the new administration.

I've swap my lionind fund into cscsteel, the reason:



CSCsteel cash balance after deduct all the debt still left RM0.82 per share as market price 1.75 - 0.82 = RM0.93
You're actually paying 1.04 Per share for Cscteel which give you PE 2.63
Cscsteel is the highest Margin compare to others
The only debt free company CSCsteel

Morning KL

I just dispose 10,000 unit of lionind this early morning @ 1.81. 15% gain & 2.4k pocket, lionind is recovery from deep which you can hold for another 3~5 month time but I spot another good counter going to swap later if the price come to my target range. Stay in tune....