Friday, August 26, 2011

Reporting season - comments

The reporting season is over. Quite sometimes i did not review my position, my share holding still the old ones, Hartalega, Public Bank and Allianz. Hartalega posted record quarterly profit of 55mil, the highest among glove players. What i foresee last year happened today as latex glove producers are all suffering but nitrile glove producer is enjoying. However, the market still fail to appreciate Hartalega....again. Although it had running a full capacity, people are blaming it lack of room to expand. For those are running at 60-70% capacity are regard as got room to improve. I really cannot understand the logic especially these arguments are from the so called "analyst". Hartalega had rolled out additional 2 lines at Plant 5 and is planning to build the capacity. After all these materialized, it would it capacity by 35% with the order is waiting to flow in immediately. Hartalega is not that kind of company able to grow by M&A due to its patented in-house production technology, which made them so efficient and lowest cost producer. If they decided to take more market share in future, it would kill off all competitor by lower its margin by a "few percent only". Yes.....is all its competitors. I truly not able to understand why Topglove is more pricier than Hartalega by close to market capital by almost 1 Billion. The market is so illogical!

Public Bank also posted wonderful results, it should be able to make EPS of 100sen this year. It is only trade at prospective PE of 13. Only PE of 13 for one of the best managed company. Once i joke with my friend, why he want to buy Well Fargo, since Public Bank is better? Growing profit quarter by quarter, some said "slow and steady" but i think it is not true. It is growing at the rate of mid teen and above for years you guys still called it slow and steady??

Allianz is making 70mil for 6 months ended 30 June 2011, it is now making more money than LPI, without taking into the account of any surplus transfer from life insurance. Which its market capital is also 1 Billion less than LPI. Is matter of time Allianz will fetch a comparable market capital with LPI.

Although the market is highly fluctuated currently, but i still confident that my share holding is able to withstand that and beat the market.

7 comments:

  1. Stock market is like a beauty pageant. The girl that you deemed as the most beautiful girl may not end up winning the contest :P

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  2. 2nd brother, may i have few word of u on YTLCMT?

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  3. Kris, ya i aware of that but i still chose not to believe it. Indeed stock market is not a beauty contest, sometime you just need to run 100m to get a good result but sometime is marathon.

    liverpool, YTL Cement reported good results, diluted EPS of 47 Sen. Cashflow is acceptable. Cylical stocks will get hit the most if economy turn bad. Some said the bad time is coming, but i not agree. It is a correction in bull market. Profit did not get hit only the share prices. There are substantial projects to support demand of cement products. YTL Cement had display that kind of discipline required to weather the downturn, normally they will expand during bad time mostly M&A. Do more business during good time, doing more M&A during bad time. Management is very important, you grow or get whack. YTL group of companies alway keep more cash to take advantages of others.

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  4. Hi,

    Interesting blog!

    Can you please link to my blog, I have done the same to yours:

    cgmalaysia.blogspot.com/

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  5. This comment has been removed by the author.

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  6. thanks second bro. :) I like my Mahsing as well. never touch it since so long time ago. i will be more aggresively look for better invest opportunity in SGX. happy mooncake festival there.

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