Zoros Invest Fun

  There is no resistant for SOLUTN, hence it fly high like no tomorrow. For CYPARK, there is a resistant at RM 1.50, hence it's blocked at here after shoot up for few days. Lesson Learnt: When comparing the stock, do consider the historical resistance level.

Results RCECAP posted a net profit of RM22.8m in 1Q21 compared with a net profit of RM24.1m in 1Q20 due to lower revenue of RM2.2m and additional allowance for impairment of RM2.6m. Extrapolated profits stand at RM91.3m (-17% YoY). Lower Revenue - lower RM2.1m and RM1.6m net fee and early settlement profit income respectively given the restricted business activities since the Movement Control Order on 18 March 2020. Additional Impairment - additional allowances for impairment of RM2.6m recognized to take into account the unfavourable impact arising from the further contraction of the forecasted Real Gross Domestic Product. Prospect - Since the Recovery MCO (RMCO), the Group has launched sales and marketing initiatives to boost disbursements. Besides, there is a increase in demand in financial applications during RMCO. I believe that RCECAP's business performance is able to back to pre-COVID levels in subsequent quarter.  Impact of Covid-19 - Operations were slightly affecte...

I have called myself as a value investor which focus on value of an assets rather than its price. However, short term and medium term of market is pretty hard to predict. Hence, it's wise to implement some technical analysis on analyzing the overall market condition, whether it's a bull, a bear or a kangaroo. From the monthly chart of KLCI, we can observe that, it seems like KLCI has formed a double top (highlighted in yellow) plus head and shoulder pattern (blue lines), which are the strong indication that the market has already formed its top! This means that, the market has higher risk at current position, and the recent strong bound, is assumed to be a dead cat bounce. Dead cat bounce is a temporary rally of stock price after a major correction (which happened on March 2020). This could be the last chance for investor to exit the market! However, that's just my assumption. Anything could happen in market. The subsequent market trend could be formed, either up or down, o...

1. KLCI已经从3月的最低点 （1207）上涨接近400点，至6月10日的最高点，1590。 2. 而中间没有大幅度的回调。长期来看，股价走势是V型反转。 3. 最近也越来也多新手加入。从Bursa Malaysia发布的资料看，新opening of CDS account增加了很多。 4. 越来越多新手入场，代表市场已经过度乐观。因为就连没有什么经验的散户都敢入场，代表市场会加大这份乐观，而造成资产的错误估价。 5. Covid-19造成的经济破坏，没有反映在股价，反而股价却反映了复苏后的经济情况。 6. 200MA仍处于下跌趋势。KLCI需要筑底后才有向上反攻的机会。 7. 试想想，KLCI可能一直从1207直飞到1590，再往上直飞数百点吗？有可能，但机率真的很小很小。股市不只有上涨，还有下跌。健康的回调可以让股价日后再破新高，而飞太高的飞机，始终会坠落。 总结：KLCI仍处于弱势，有另一波大跌的可能。任何操作都是以做反弹为主，也就是见到不对立刻散，投资者真的需要慎重慎重再慎重。

While I was reading my investment mentor, 第一天's blog, I have discovered an excellent company which is trading far below its intrinsic value! You can guess by looking at the picture that I posted -- in fact it's written on it. Ok, let me introduce to you the next hidden gem in Bursa, RCE Capital Berhad (RCECAP)! Business Model Source: Maybank Research Report RCECAP is providing personal loans financing predominantly to civil servants . The difference between RCECAP and bank is, RCECAP's source of fund is from borrowing (Term Loans, Sukuk, Revolving Credit, Banker's acceptance) instead of deposit from customer. It makes profit from the spread between interest income from customer and interest expense paid for the borrowing. It should be emphasized that RCECAP implementing direct salary deduction via Accountant General's Department of Malaysia and Biro Perkhidmatan Angkasa. This is an effective way to minimize default rate and thus improvement in profit margin. Its an...

Hoh Wah Genting Berhad (HWGB) is involved in manufacturing and trading of wires and cables, travel agent, healthcare, cryptocurrency, duty free shop.  For my personal view, as a fundamental investor, i don't think HWGB is a good counter to invest in. This is because the company doesn't have a clear direction of its future development as its business is diversified into various unrelated industry.  Besides, it's a loss making company (only make profit on 4 years out of 18 years since 2002) and has implemented few unfavorable corporate activities to investor in the past: i) Share Consolidation on 2018 (4:1)  ii) Take over with RM 0.12 while the price is closed at RM 0.21 (Update: The offer price is increased to RM 0.20 on 14 May 2020) Hence, I assume HWGB is a company, that doesn't focus on its core business, and is more concern on its own profit rather than investor's profit. From here, I will tend to analyse HWGB's intention of taking over the shares ins...

There are 4 major listed long steel companies in Malaysia, we call it as the "Big Four". They are: 1. Ann Joo Resources Berhad (安裕资源有限公司） 2. Southern Steel Berhad （南达钢铁） 3. Lion Industries Corporation Berhad （金狮工业） 4. Malaysia Steels Work (M) Berhad （大马钢厂） Their main products are long steel and steel-related product, eg. steel bar, billet, wire rods, which main customers are from construction and infrastructure industries. Due to the similar nature of business, I will analyse the Big Four's together in this article. Accounting is becoming a global business language. To understand a business's story, we need to look at its financial statements, to analyse whether it's a ably-managed business. FINANCIAL POSITION Given the capital intensive nature of steel industry, maintaining a strong financial position is a key priority of the company. Hence, I will pay more attention on its book value and capital structure.  Net Cash / (Debt) First, let us look at their cash posi...

Background TASEK (Tasek Corporation Berhad, 4448) is involved in manufacturing and selling of cement & cement related products and ready-mixed concrete in Peninsular Malaysia. Its main production plant is in Ipoh, Perak. The cement products are transported by road or rail direct to user.   Source: KLSE Screener @ 8 May 2020 In short term, market is like a voting machine. A company's share price will be affected by market sentimental. But in the long run, market is like a weighing machine. The business and financial performance of a company will eventually reflect on its share price. The worsen of financial performance has dragged down TASEK's share price from its peak on 2015 (RM16.40) to the current level (Rm5.72).     

Steel is the key pillars of economic development. It is the essential raw material used in the manufacturing sector, machinery and engineering industries, transportation equipment (automotive, railway and shipping) as well as the major ingredient for infrastructure projects. STRUCTURE OF STEEL INDUSTRY The structure of iron and steel sub-sector can be classified into two major product groups: 1. Flat Products Product:  Hard Rolled Coils (HRC), Cold Rolled Coils (CRC), pipes, tubes and coated coils. Sector: Electrical and Electronic (E&E), automotive parts and components, oil and gas, furniture, machinery and equipment and fabricated products 2. Long products Product: Billets, steel bars, wire products, angles and sections Sector: Construction and civil engineering industry.       MAJOR PRODUCER OF LONG STEEL IN MALAYSIA 1.  Alliance Steel 2.  Amsteel Mills Sdn Bhd [LIONIND (4235)] 3.  Southern Steel Ber...

Some might wondering what is CAGR when looking at my article. As CAGR is one of my favourite tool in calculating company or industry growth. CAGR is the short form of Compound Annual Growth Rate . It represents the rate of return that would be required for an investment to grow from its beginning balance to its ending balance. This is the explanation that i copy from Investopedia. This is the formula for calculating CAGR, also from Investopedia. Investopedia has been my best friend since I was in university. For better understanding, I will use a random company as example. Let's name it as ZOROS. ZOROS 5-years CAGR from 2014 to 2019 is 18%. Assume its revenue at 2014 is RM100, On 2015, its revenue should be: RM100 x (1+18%) = RM 118 On 2016, the revenue is: RM 118 x (1+18%) = RM 139.24 On 2017: RM 139.24 x (1+18%) = RM 164.30 On 2018, RM 164.30 x (1+18%) = RM 193.87 On 2019, RM 193.87 x (1+18%) = RM 228.76 Applying the formula from my best friend, ...

Background For the past 30 years, the premiums which insurance companies can charge consumers have been regulated by a tariff structure. For motor insurance, this has resulted in a growing gap between premiums collected and claims paid out by the insurers. This has led to the Motor Third Party business becoming unsustainable. To ensure that motor insurance cover continue to be made available and accessible to motorists, The New Motor Cover Framework (the Framework) was implemented in 2012 and saw four rounds of gradual upward adjustments from 2012 to 2015. The Framework also paves the way for phased liberalization of Motor Tariff in 2016. On the other hand, the Fire Tariff was revised three times from 1992 to 2000. On March 2016, Bank Negara Malaysia (BNM) had announced the Phased Liberalisation of the Motor and Fire Tariffs before transitioning to a fully liberalized market. Motor and Fire Insurance are compulsory insurance protection in Malaysia, accounting f...