There have been some requests from friends to inform them of my investment holdings and investments decisions I make. So, here it is. Hope this could help in some ways in your investment decisions and do feel free to provide feedback to me so that it could help improve my trades as well. Thanks.
Going to hold this for rather long-term until I see signs of negative turnaround for the glove industry such as supply glut, rising costs of energy/latexx, weakening USD and whether these factors can be passed on to customers. Supply glut might happen probably in another 2 years or more according to Stanley Thai. PER remains reasonable at 9.8x and 8.7x for 2010 and 2011 respectively, a huge discount to Top Glove which is trading at PE of 14.7x and 13.5x for 2010 and 2011 respectively. Earnings growth for 2011 is OK at 12.5%. The recent bonus shares (1 bonus share for 4 existing shares held) could further boost liquidity of the shares (They are already very liquid) as shares are cheaper with more shares in the market. Still like glove industry which is resilient and recession proof. Click here for more info.
Sunway Holdings (RM1.49):
The stock remains very cheap at PE of 7.4x and 6.4x for 2010 and 2011 respectively, which is at a huge discount of 50% as compared to its peers like Mudajaya, IJM, WCT or Gamuda. The company is poised to post record earnings this year coupled with huge project tenders of RM16bil with expected success rate of 10-15%. It is even cheaper than HSL or Naim which only concentrate in Sarawak and depend more on government projects whereas Sunway's orderbook is more diversified from Malaysia and government projects (Fear of overseas ventures being riskier???). It is also supported by project development and quarry business segments. Earnings growth at 15% in 2011 with strong orderbook of RM2.8bil which could last them comfortably for the next two years. Click here for more info.
This stock is about growth, high margins and strong shareholders. PE of 9.35x and 7.3x for 2010 and 2011 respectively. Earnings growth expected to be more than 25-30% over the next 5 years (If I can recall, this figure came from the CEO himself). Nikon is a substantial shareholder of about 9%. Global electronics/semiconductor sector is thriving, driven by greater usage of digital devices. With more usage of laptops, game consoles (X-box, PS3), IPAD (more tablets coming from HP and Blackberry?), demand for HDDs continues to be strong. Click here for more info.
Smaller glove manufacturer, PE of 9.4x and 7.4x for 2010 and 2011 respectively. Earnings growth expected to be strong at 27% for 2011. Stock price is cheaper which allows investors to hold more shares. Better than Adventa for now due to Adventa's hiccups in its latest quarterly results and delay in production expansion.
Stocks under watch
1. Coastal Contracts (RM2.35): Cheap valuation and high earnings growth but looks riskier for this current market (Dependent on contracts, too narrowed to O&G sector, share trading cold, costs dependent on steel prices, reliability of subcontractors). Might consider going in again when sentiments are better and shares are more liquid/volatile. Click here for more info.
2. Eng Teknologi (RM2.55): Cheap valuation, PE around 4x (unbelievably low, wonder why?). Expansion plans? Earnings growth expected to be little. Will research more.
3. APM (RM3.90): PE still below 10x. Potential to go higher. Tan Chong, MBM, Proton have moved up after the recent selldown except for this counter.
4. Dufu (RM0.54): Nobody's playing. Shares are too cold. PE exceedingly low at less than 4x. Customers too concentrated on 3 players i.e. Western Digital, Seagate and Hitachi Global Storage. Share performance is soft like tauhu :p Click here for more info.
5. Naim (RM3.00): Beneficiary of Sarawak projects. Click here for more info.
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