Zoros Invest Fun

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, ...