~ tAscO Q4FY12 ~

TASCO .. the traditional strong 4th quarter for Tasco did not happen this time. 

1. Q4 revenue had dropped around 8% and to make it even worst is the net profit had dropped 44% y-o-y due to higher general & administrative expanses and tax expense. This caused the profit margin reduced to 7.74% from 12.3%.
2. For full financial year 2012, it records an EPS of 28.89 cents, dropped from 34.59 cents in previous year due to lower revenue and higher general expenses & tax expenses. 
3. Higher tax expanses due to expiry of the tax incentive scheme enjoyed in previous years for one of its business segment which equivalent to additional around RM3.7M being paid as tax. 
4. PE increases to 7 based on today price of RM2.02 due to lower EPS. It's should be considered valued for a market capital of RM200m. 
5. ROE for FY12 is 11.3 , down from 14.3 last year. 
6. Full year dividend is 5.34 cents(interim) and 6.67cents (final) compare with 12.9 cents last year. 
7. Cash balance remained strong with around RM50m cash and FD in hands (RM0.5 cash per share) with borrowings of RM32m at which RM19m of it is long term bank loan. 
8. Current ratio remained strong at 2.37.
9. Retained profits are increasing as well as its NTA. There is mathematical chances to issue bonus share to increase share liquidity. 

In terms of segmental revenue and PBT, 

Tasco's business is still driven by it's contract logistics division, contributed around 81% of its overall net profit. This poorer quarter is actually caused by its lower revenue for its international business solutions and lower profit margin of its trucking division. In terms of profit margin, its international business solution segment is really bad, perhaps it's more prone to effect of raising oil price, poor imports exports trade,currency exchange, high operation costs and others. 

In the prospects column of the quarter report, it mentioned FY13 will be a challenging year  due to uncertain global economic which affected the manufacturing and international trade and eventually affected its logistic business. Else where, it also mentioned the group will continue to excel particularly in its contract logistics division, which is good as it provides the biggest contribution to its revenue and drives more strict cost control to pare down the operation costs. Furthermore, there is rumour Tasco will form a merger with other logistics parties to improve its competitive edge. 

I will sideline myself in invest in Tasco until a clearer picture is to be seen since I'm working in a manufacturing site which the business is not good currently. 

~ mUdAjAyA Q4FY12 ~

At first glance, it was definitely a disappointing 4th quarter for Mudajaya to sum up the year 2012. 

In terms of fundamental,

• Revenue and PAT dropped at a 30% rate y-o-y. Based on the report's note, the lower revenue and PBT for the current quarter was mainly due to decreased delivery of equipment components for the 4x360MW coal-fired power plant in India.
• Revenue in terms of segment,  trading & plant hiring and property development recorded an improving trend. But that was being dwarfed out by the construction segment which represents more than 90% of Mudajaya's revenues & net profit, recorded a lower net profit. 
• Full year revenue increased 23% but PAT only increased marginally. This caused the net profit margin dropped from 17% to 14.3% for year 2012. 
• Full year EPS increased marginally to 43.11 sen. PE is around 5.6 based on today price of Rm2.40. 
• ROE for year 2012 dropped from 24.4 to 21.0, still >15. 
• Full year dividends increased to 9 sen from 8sen last year. This translates into dividend yield of 3.75%. Management team only distributes around (9/43.11) 20% of net profit as dividends for this year. 
• No outstanding borrowings.
• Still remains cash rich with RM340m in hands. This translates into Rm0.62 cash per share. This is vital for its expansion or investment in future. 
• Current ratio remains good of >1.0, which shows good liquidity. 
• Share premium is as twice as share capital while retained earnings are 7 times more than its share capital. There is possibility a bonus issue will be held in future. 

Mudajaya still has an extensive amount in order book. Source: HLB. 

In short, Mudajaya still remains in my monitor list. No matter which party take charge of Putrajaya after the upcoming election, construction segment still considered as one of the areas where the new government will concentrate at. In terms of power plant construction, I do think Mudajaya will stand out against its competitors. Perhaps, the next market crash or correction will be a good price to enter. 

~ tOp mOnEy tIps fOr mAlAysIA ~

Here came with the second book written by KC Lau I read about financial management. 
It mentions about the importance of financial literature from wealth accumulation, preservation to protection and some tips on money savings and accumulation in our daily lives. Frankly speaking, I'm feeling financial literature is getting more and more important in our life. Of course, it's easier to say than done. It's still useless if I do not act after I read and learn from all this stuff. I'm paying more attention to those economic section in newspaper nowadays and I also trying to influence the people around me to manage their financial pretty well in order to become a wealthy person. Hopefully everyone is on the path of getting what they want. 

~ AMFirst REIT AnAlysIs ~

Diversification is part of the investment strategies. Capital allocation is also one of the skills an investor need to master in order to meet his investment objective and target by taking a certain degree of risk. I have been considering to invest in REIT lately as I want to force myself to be discipline enough to spare part of my salary out monthly to invest in some lower risk & stable income investment provider for my retirement purpose. 

Then I came across AmFirst REIT.

AMFirst REIT is the one of the oldest and 9th biggest REIT in terms of market capital in Malaysia. AmFirst REIT has 9 properties in hands currently including the recent acquisition of Jaya99 in Melacca. The portfolio of buildings as shown in photo below; 

Out of the 8 properties shown in the latest quarter report, three of them are having a mere 72% occupancy rate. This was further highlighted in its annual report 2012 that the commercial office was oversupply in certain area. Management team has a big task to increase the occupancy rate of these 3 properties, but overall still manage to obtain a 90.3% occupancy rate recorded during the last quarter. 

Looking back at its top 10 tenants based on rental income, 45% of the income comes from AmBank group itself. HP multimedia and RBC Dexia taking up the place at Prima 9 and Prima 10 respectively which AmFirst REIT acquired back in year 2011. 

Total asset value and net asset value is improving for the past 5 years as it's normal circumstances that the properties do appreciate in value. However, its realized net income and distribution per unit did not show as significant as its net asset value. 

One more thing to note is its unit price always traded below its net asset value per unit. 

AmFirst REIT completed a right issue to raise a total proceeds of RM214million to pare down its gearing to 28% and to increase its share liquidity at Aug 2012. 

AmFIrst REIT declared an income distribution of 3.16cents for the six month period end Sept 2012. Recent acquisition of Jaya 99 will help contributes around 0.13 cents per unit. Expected the full year income distribution will be around 6.5 cents. Income yield is around 6.2% based on today price of RM1.05. 

Will it drops until RM0.90 per unit during a market crash as this will have a income yield of around 7%? Let's wait and see, at least you do not need to such homework when the market really crash or the price drops till your buying price. 

On the other hands, CF Liew published an interview with YP Lim, CEO of AmFirst REIT in his website. There were few questions being answered regarding the right issue, tenants mixing management strategy and rebranding exercise. Perhaps you can take a look. 

~ vAlUE InvEstIng sUmmIt 2013 ~

Since the moment I purchased the tickets back in Dec last year, I was really looking forward to this summit. 

The Value Investing Summit 2013. 

The 2-day summit was organised by 8 Investment Pte Ltd and held at Kallang Threatre, Singapore. The summit gathered experienced speakers from equities, property and finance industry to share their success stories in applying value investing on their investment. 

I have been applying fundamental analysis for my stock market investment throughout the past 1 year, learning from books, forum, friends and of course the mistakes I made. 

Value investing, a method Warren Buffett and many billionaires use to achieve financial freedom in the world. Throughout the summit, it added a lot of values to my investment learning. I still have long way to go to achieve the goal I set. 

" Value investing is simple but not easy .. You're neither right nor wrong because other people agree with you. You're right because your facts are right and your reasoning are right - that's the only that makes you right. And if your facts and reasoning are right, you don't have to worry about anybody else. " - Warren Buffet

I must remember this in my investment principle. 

There is no short cut in investment. Do my homework, analysis and be discipline & rational  all the time. 

~ tOp 93 pErsOnAl finAncE FAQs ~

Having stepped into working society 2.5 years ago taught me the importance of financial management. As a typical employee, every pennies earned must be well managed in order to meet my financial goals as well as maintain the life style I wish to be. There must be a financial plan to succeed and I must discipline enough to make sure everything goes according to the plan

Having came across this book "Top 93 Personal Finance FAQs in Malaysia" in one of the local bookstore. Without any hesitation, I copied down the ISBN number and sent to my sister as she is entitled certain discounts to purchase any book in Mph. 

There is 4 chapters in this book namely Wealth protection, Wealth accumulation, Wealth management and Wealth distribution. 

Wealth protection,as its name applies, mentioned about insurance. What type of insurance suits you and how many percentage you should spare from your monthly salary to put on insurance. That's all depends on your age, family, breadwinner type and other factors. 

Wealth accumulation explained about the investment methods that we're having today in Malaysia. There are variety of investments available today that I am sure one of them sure suit you. Investment is a must to counter the devil inflation. 

Wealth management and Wealth distribution are the 2 chapters that I interested least as I do not have much assets nor taking up any loans currently. It explained how ones should manages his mortgage, car, credit card and personal loans. The latter part explained the importance of a will. 

There are still much more to learn for me. 

For those who interested in financial management, you can log on to kclau.com/ ( Author of this book) and subscribe to get update through email. KC always posts quite a number of posts related to finance and hosts a lot of webinar and seminar to the visitors. 

~ Prestariang 柏斯達亮 (PRESBHD) AnAlysIs ~

The first time I came to know Prestariang was during his IPO launching back to July 2011. When I glance at its business portfolio, my first impression was it's a boring business nature. However as time goes by, it proves that boring is a very good investment. 

Prestariang's 2 main core business activites are ICT training & Certification and Software Licence Distribution & Management. 

For the training segment, Prestariang provide both basic and professional Information Communications Technology (ICT) training and certification examination at the end of the course while software licence distribution segment is just a follow up to distribute and manage the product licences. 

In simple term, Prestariang offers clients/companies a one stop package that provides training, certified them and also get paid for the product licences. That is. Their business plan is just that simple to understand which I clarified them as boring last time Haha. So, I missed out a good company. 

Looking back at its past 3 years result, revenue, profits and earning per share are nothing but just keep increasing. That shows how good its profit stability. 

For the 9-months FY12 period, it records an EPS of 12.22 cents, expect it can achieves a full year EPS of 16 cents. Base on today price of RM1.13, its PE ratio is around 7. Profit margin is exceptionally high in the region of 25-30%. ROE is also high due to its low net asset per share. 

As of its balance sheet, the RM35m cash in hands should be more than enough to cover its borrowings of RM2m. Current ratio is high at 4.8 which demonstrates its good liquidity. The total of retained profits and share premium are triple of the share capital, thus it's mathematically able to issue bonus share to increase the share market liquidity as its net asset per share is higher than its share par value. 

Portions of the cash in hands come from the IPO listing. The utilisation of IPO proceeds is only 50% of the RM19m it raised through IPO. As of its high cash in hands and retained profits, it should have no problem to gather money for expansion expenditures. Currently, Prestariang is in the midst of setting up its first computing university in Malaysia marking the first in Malaysia to offer higher education on specific ICT fields to have a sustainable future other than its 2 core business segments. 

Apart from that, the other thing I like the most of Prestariang is its generous dividend payout. It does not have any dividend policy currently, but it declared more than 50% of its net profit for dividend. For the cumulative Q312, it had declared a total of 7cents dividend. Expected there is another dividend payout for its Q412 in the region of 2-3 cents which translated into dividend yield of 7-8% based on today price RM1.13. To make it more exaggerating,it paid the dividend every quarters. It's so nice for you to receive a passive income every 3 months. 

Majority of the contracts being award to Prestariang are from government. It also starts to develop its own training and certification programme to cater international demand. One of it is the IC Citizen programme that able achieved sale at Brunei and also in middle east countries. 

Its CEO, Dr Abu Hasan Ismail who holds numerous academic certification is also the founder of Prestariang Berhad. He has great exposure to ICT development and teaching. Besides that, he was one of the founders of Multimedia University. As for the Chairman, Dato Mohamed Yunus Ramli Bin Abbas, this CV even longer. He had 25 years service at Motorola, executive officer for Encorp Group (Encorp Media, NTV7) before became the CEO for Celcom Berhad. He also established NuSura Technologies and is now the executive director of it. Besides, he also holds numerous chairman position at different government bodies. I believe these two gentlemen will even help Prestariang secures more contracts from the government. 

Now, lets take a look at the list of top 30 shareholders of Prestariang as at May 2012 ... 

Do you spot anything on it? Do you see there is quite a number of unit trust and funds in the top 30 shareholders? Seem like the unit trust and fund managers have great confidence on Prestariang. 

So, if you're investing your money on above stated unit trusts or funds, why not directly invest in Prestaring at the stock exchange? As you can get around 8% dividend yield instead of paying 3-5% service charge and 1.5% management fees when you investing in unit trust?

You know the calculation