Wednesday, 23 September 2020

The Legends: QL vs Scientex

What is the first thing that crosses your mind when someone mentions about QL?

  1. A company that sells seafood
  2. A company that sells chicken and eggs
  3. A company that operates Family Mart
  4. A company that grows its revenue and profit annually without fail for more than 10 years
I think most investors with a few years of experience in Malaysia stock market will choose no.4.

Yes, QL is a "legendary" stock in Malaysia which has registered annual revenue and net profit growth every year without fail for at least 17 years (my available data is from FY2003).

It is commonly used as a reference when people talk about fundamental long term investment, consistent growth story and good management team.

While QL is no doubt a great company, how about Scientex? 

Sunday, 20 September 2020

Hibiscus: Sizable Private Placement of CRPS

On 9th September 2020, Hibiscus suspended its trading to make announcement of proposed private placement of new Convertible Redeemable Preference Shares (CRPS).

What is CRPS?

Preference shares are shares of a company issued with a fixed dividend payout. They are not like common shares which can dilute a company's earning and assets per share. 

Preference shares holders have the priority to be paid first in case the company is liquidated but they do not have voting rights compared to common shareholders.

Redeemable means that the company can redeem or buy back the preference shares in the future.

Convertible means that the preference shares can be converted into company's common shares before a specific date.

Private placement means that the shares are sold directly to private investors, not to the company existing shareholders.

Wednesday, 16 September 2020

Brief Notes on Top Glove

Top Glove is going to announce its highly-anticipated FY20Q4 tomorrow. Almost everyone expects at least triple jump in its net profit QoQ.

Its PATAMI in previous quarter was RM347.9mil. For the upcoming quarter, I read from various sources that it will be at least RM1.2 billion.

How will the market react to its result tomorrow?

Saturday, 12 September 2020

When Is The Next Property Boom?


Property gurus say: "Property price will double every 10 years". Is it true?

My parent bought a house which cost RM40k back in 1983. If the theory is true, then in 1993 it will cost RM80k, 2003 RM160k, 2013 RM320k and 2023 RM640k.

I don't know at what price similar houses in that area were transacted in the past, but now I know it's worth around RM450k.

This 10-year property price theory looks good as it successfully predicted that after 2013 its valuation will be more than RM320k.

However, we only have 3 more years to reach 2023 and I don't think it can appreciate another RM200k to reach RM640k in such a short period of time.