POHUAT - Pop Huat~

Poh Huat Group had more than 30 years of manufacturing excellence. POHUAT is one of the most progressive furniture producers in South East Asia[1]. Having 3 subsidiaries (Poh Huat Furniture Industries (M), SB, PHW Properties SB, Poh Huat International SB) in Malaysia, 1 subsidiary (Poh Huat Furniture Industries Vietnam Joint Stock Company) in Vietnam, 1 subsidiary (Poh Huat International (BVI) Limited) in British Virdin Islands, 1 subsidiary (Contempro Furniture (Qingdao) Co. Ltd.) in China and 1 subsidiary (Poh Huat International Furniture S.A. (Proprietary) Limited) in South Africa, POHUAT's major activities are manufacturing, trading and sale of furniture and wooden household furniture[3].

POHUAT's Home and Office Furniture [1]

To highlight the most contributing subsidiaries, Poh Huat Furniture Industries (M) Sdn Bhd, mostly manufacturing office furniture, exporting to North US and Canada together with Poh Huat Furniture Industries Vietnam Joint Stock Company, mostly manufacturing home furniture with North US as their biggest market[3]. POHUAT's products are marketed under the brand name of AT Office System and AT Home System, with acceptance in more than 60 countries in 5 continents. With their current facilities, POHUAT strive to be a "Furniture One Stop Center", to cater the ever growing demand for customers to develop a furniture collection. Being involved in local organizations such as MTIB (Malayian Timber Industry Board), MITI (Ministry of International Trade and Industry), MFA (Muar Furniture Association) and MFIC( Malaysian Furniture Industry Council), POHUAT is closely working together with the associations and had gained global recognition and international standards.

The reason why i was attracted to POHUAT is because all the furniture exported stocks, LATITUDE, HEVEA and LIIHEN released a double digit net profit in November. So next, i look the furniture companies that will be announcing their results in December. If they are going to announce good results, at least i will see advance movement prior to the result being announced. So, POHUAT met my criteria by releasing the Q Result in December and i am even more excited when they are announcing Q4 Results. POHUAT is ranked number 4 in terms of market cap and the PE looks nice. So, lets study the fundamental of POHUAT.

Comparison among furniture peers

Summary of November 2015

December is approaching and let's do a simple analysis on my Gainvestor Portfolio for November

Again, this statistics does not mean anything, it does not mean any hold/buy/sell decision, it is just to summarize and track the Gainvestor Portfolio.

Gross Performance in % for Gainvestor Portfolio for November

The result is rather disappointing, if we are not able to escape at the highest price. At the closing of 27 November, we will have losses of -7%. A few points to be considered and repented:

1. Buy on rumours, sell on facts.
If we are expecting expect good Q result, once the Q result is announced, normally profit taking activities will take place. There are 3 outcomes from the Q result. One is good result (more than double digit growth), one is bad result (losses) and one is within expectation. If the reason we buy is because for Q result, once it is released, regardless, good, bad or within expectation, we should take profit or cut loss bravely. Unless the reason you buy is because of weakening RM or long term reason, then you can hold. Again, the decision is up to you and your comfort levels. The reason we sell is the reason we buy.

Window Dressing and Next Targets?

December month is coming. Christmas decorations and Christmas songs are just around the corner. And not to forget to go for shopping or window shopping as there are a lot of sales now~ Talking about window shopping, let's talk about window dressing activities in Malaysia. The discussions below are solely for reference. Let me remind, just a reference.

Let's take a look at our index from 2011 till now.

FBMKLCI Chart

Our index had been bullish till 2014, when the oil price drops from USD110 to USD45. As Malaysia is an oil exporter country, of course it affected our index also. The highest of our FBMKLCI is 1892.33 on 24 June 2015, now we are sideway-ing around 1600 and 1700. We had been in bull and bear market and now we are recovering slowly. I would like to show a table which shows the myth of window dressing really happens...

OCNCASH - Post Q3 2015

OCNCASH posted a WOW-ing result today (25 November 2015), well at least for me, it is a WOW. Let's go through the Quarterly Result.

1) Fundamental Analysis:

OCNCASH Q3 2015 Result

Comparing Q3 2015 with Q3 2014, the revenue increased 9.76% while net profit had a whooping triple digit growth, 599.79%. Cumulatively, revenue improved 12.24% while net profit improved 127.55% [2].

A point to note here, if we compare the cumulative Q3 2015 against 2014 annual result, the net profit had already exceeded 2014 annual result by 44%. This is just the Q3. I think roughly we will know what will be happening in Q4. And how the result will impact the price, especially when the chart had broken a historical new high. This is what we call a growing company. Just to recap, OCNCASH is specialized in felts division and nonwoven division[1].

Cumulative Revenue by Geographical Segment

Next, let's look at the revenue by countries. The ranking will be Malaysia (31%), Japan (29%), Indonesia (19%) Thailand (17%) and others (5%). Around 69% of the net profit is generated from overseas, which is using USD. So, OCNCASH is a USD benefit country.

Remember in my previous post, in the annual report, Mr Chairman assured the nonwoven division will have a double digit growth this year. The increment of 9.76% in revenue for nonwoven industries on quarter on quarter basis is mainly due to increase in sales to Thailand and Japan. Revenue from air condition market also recorded an increase. The air condition is the mask industry, remember the haze that happened in Malaysia and Indonesia during September and October. However for the felts division, Indonesia showed a decrease in revenue due to the slowdown in new automotive sales. New factory will be completed in June 15 in Indonesia. That's why we see the liabilities increased for the felts division, it is all for the expansion of the business in Indonesia.

千里之行，始于足下

今天放工后，我去starbucks会和我的其中一个大学的junior。他想和我分享他现在使用的健康产品，想向我推销。

谈着谈着，我们说起自己的故乡。我本身对他的背景感到非常的震撼。来自一个小乡村的贫穷家庭，家里包括他，一共有七个兄弟姐妹，父母从事农夫。他得到奖学金，大学毕业后出来社会工作，努力赚钱。自己也做一些健康产品来赚一些额外的钱来养活自己。

我从来没有听过他的背景。就好像我们小时候读书的课本内容那样，家里不怎么有钱，从此就发奋图强，读进了大学，出来社会工作赚钱养家，帮父母减轻负担。

我知道现在的生活很艰难。如果现在的人有一个正业和一个副业，我也不觉得出奇。很多现在也做着property agent, insurance agent, public mutual, MLM等等，为的是以后要有一个更加舒服的未来。

善于利用自己的时间，来投资一份知识，不管是什么样的知识，产业也好，保险也好，我觉得这些都是有益的。在现今社会，懂得省吃俭用已经不怎么足够（可能在某些地方还足够），懂得好好理财也不足够，我们也要懂得用钱生钱。

很多创业者都想出人头地，但是正真要出人头地，根本不简单。就像我的投资那样。当初，自己也是输了钱，不是输了就输了，一定要懂得检讨自己的错误在哪里，然后要记得不要重犯自己的错误，提醒自己在同样的情况要用什么方法面对。

记得在读Form 4的sejarah时，Those who cannot remember the past are condemned to repeat it。意思就是说，如果我们不记得以前的历史，我们还会再重复同样的历史。失败是我们的必经之路。

HEXZA - Post Q1 2016

HEXZA announced their 2016 Q1 Result on 19 November 2015. 

1) Fundamental Analysis:

The Revenue dropped 5% while Net Profit increased 90%. (I personally will favour double digit growth, because from what i observe, normally the price will have some reaction in the next day. You can also take note of this.) For revenue, in 2014, 2015 and 2016, the average is around RM35 Mil. But as for net profit, it keeps on breaking new high. So now, lets dig into the operating segments of the business. Why the net profit increased so much while the revenue maintain?

HEXZA Q1 Result [2]

Q1 till Q4 of 2014, 2015 and 2016

By breaking down the operating segments of the business, there are manufacturing, investing, trading and others, we can see in a clearer picture[2]. The numbers below are all profit before tax.

Profit Before Tax for Operating Business Segment Comparing the Same Quarter

HEXZA - Chemical Solution

HEXZA Corporation

HEXZA Corporation Berhad is involved in manufacture and distribution of synthetic resins, industrial glues and a whole range of urea-formaldehyde and phenol-formaldehyde product [1]. HEXZA is engaged with property Development (Summit Development Corporation Sdn Bhd), manufacturing of formaldehyde resins (Norsechem Resins Sdn Bhd, Hexzachem Sarawak Sdn Bhd), ethyl alcohol (Chemical Industries Malaya Sdn Bhd), natural vinegar (Bio-Acetic Products Sdn Bhd), beverage (Hexza-Mather Sdn Bhd) and marketing (Norschem Marketing Sdn Bhd). The chemical products related are such as formaldehyde, adhesive resins, ethanol, ethanol absolute, liquified carbon dioxide, Kaoliang Wine, natural vinegar and Enchante Cooler.

Going straight to the point, the export-oriented companies which are benefiting from strengthening USD against Ringgit Malaysia is one of the popular theme in our market now. Companies such as EVERGREEN, HEVEA, FLBHD are all wood related companies doing exports of plywood, fibreboard etc. Look at HEVEA and FLBHD's net profit that had just being released on 17 November 2015. Both HEVEA and FLBHD had increment of 211% and 196% respectively in their net profit if compared to the same quarter. So how did the plywood related to HEXZA?

Hexzachem and Norschem Resins have access to latest technology enjoying continuous support from international organization that will be made available to the needs of Malaysia and overseas customers. Their product range includes traditional and low formaldehyde emission urea formaldehyde resins for gluing of plywood to MR plywood standards, melamine urea formaldehyde (MUF) resin for plywood, etc [1]. Formaldehyde is a colourless gas with an irritating odour and often used in the production of resins that act as glues in the manufacture of pressed wood products [2]. (you can click on my source number 2 if you want to know more information).

AWC - AWaCkening~

AWC Berhad is an investment holding company specialising in quality engineering services. AWC provides total asset management services such as integrated facilities management and engineering services to building owners[1]. AWC is involved in 4 major industries, namely facilities, engineering, environment and investment holding. Let's understand the business model of AWC before we go into more in depth details of it.

AWC is the only company who provides solution for Integrated Facilities Management (IFM) in Malaysia. Some examples for IFM, the autopay for parking at the entrance, cleaning housekeeping (pest control), Computerized Maintenance Management System (CMMS), energy and utilities, etc. Basically all new buildings will need the service of IFM in new projects. And AWC is the premier provider of total asset management and provides "one stop" integrated facilities management services. Next, AWC provides integration of key facility systems that manage electrical distribution, lighting, air conditioning and security. Basically, they supply the engineering section for the buildings, for example, civil structural, control systems, heating ventilating and air conditioning system (HVAC), building automation system (BAS), utilities, mechanical and electrical for the building. 

STREAM AWCS (Automated Waste Collection System)

Next, the environment sector. AWC also provides design, engineering and supply of STREAM Automated Waste Collection System (AWCS) to transport municipal solid waste via pipes to a central waste handling facility where it is collected and compacted into sealed containers that are then removed periodically. Basically this STREAM AWCS had resolved 2 major problems about wastes, which are irregular collection schedules of wastes and spillage of wastes from garbage trucks. The AWCS is widely used in a few countries and their projects. Just to name a few projects, In Malaysia (M-Suites Ampang, Lakeville Residence, Iskandar Residence, NU Sentral, KL Sentral, KLIA 2 Integrated Complex) Singapore (Changi General Hospital, Changi Airport Terminal 3 & 4, Resort World Sentosa) United Arab Emirates, Qatar, China and Hong Kong[2]. 

In short, AWC provides a dragon-full-set facilities to the buildings. From the engineering of air conditioner, to the facilities of CCTV security, to the waste management system, AWC integrated all of the facilities, engineering and environmental issues in IFM (Integrated Facilities Management). They are also pioneering into energy conversation. They provides pro-environment solutions, or another word, green environment, which is aligned to the Governments requirement. Even in the first page of their website amazes me, the slogan, TOWARDS SUSTAINABLE GROWTH... Going to Preferred Heights... such ambitious and charismatic slogan...

Summary of AWC Business Model[1]

UCHITEC - U SEE THAT

UCHITEC is a company which manufactures mixed signal microprocessor-based application and system integration products, and trading of complete electronic module[1]. UCHITEC had their subsidiaries in Malaysia (Uchi Optoelectronic (M) Sdn. Bhd & Uchi Electronic (M) Sdn. Bhd.) and another subsidiary in China (Uchi Technologies (Dongguan) Co., Ltd). UCHITEC is majoring in services and products. 

Their services such as product design (transforming product ideas through innovative solutions), construction and tooling design (provide customers the optimized construction and tooling designs), software + micro controller + ASIC solutions (integrating software; with UCHITEC gained their reputation through fully automatic coffee machine or a precision weighing scale), display modules solutions (specialized in LED Dot Matrix Displays and TFT Display Modules Solutions) and manufacturing services (OEM and ODM services)[2]. OEM aka Original Equipment Manufacturing whereby a company is designing and building a product based on its own specifications and then selling the product whereby ODM (Original Design Manufacturing) is designing and building a product as per another company's specifications. UCHITEC is an ODM and OEM company which can fit into the needs of their customers.

UCHITEC's products can be divided to 2 portions, which are Art of Living Group and Bio-Tech groups. UCHITEC is using IT to build a ubiquitous information society, such as a coffee machine. Next will be the Bio-Tech group, whereby commercializing health care services and biotechnology to enrich people's lives. The products of electrical and electronic appliances such as weighing scales, high end household appliances, coffee machine etc. Basically, UCHITEC draws on the wealth of experience and technology to contribute to corporate innovation.

UCHITEC serves a wide base of multi national companies, located primarily in Europe with Switzerland and Germany as major. I think their business model is quite attractive because of the ODM whereby they can fit into the needs of the customers with their expertise and experience that they have.

乌鸦喝水的投资领悟

相信大家都听过乌鸦喝水水的故事吧，今天，让我们一起返老还童，一起再听我啰嗦这只乌鸦喝水的故事吧。

在一个炎热的下午，一只乌鸦觉得口渴，一直飞来飞去找水喝。飞着飞着，看到了一个水瓶。

但是，因为水的位置太低了，还有瓶口也太小了，它无法把头伸入瓶子里喝水。于是就想着想着，不如拿小石头装在瓶子里，水位就会上升了，过后我就可以喝水了~

过后乌鸦就飞到河水旁边捡起小石头，放进瓶子里。它重复的飞到河边把小石头放在瓶子里。

终于，水位移上来了，乌鸦就开开心心的喝水了。他也看到他口渴的朋友们，于是也约了他们一起来“喝下午茶”。

好的，故事讲完了。其实有三个点，要提醒大家，也顺便提醒我自己。

1。大家有没有发现到，我提到那只乌鸦是飞去河边拿小石头的。重点来了，既然是河，那么河应该有水的，何必那么麻烦一定要喝瓶子里的水。

我们人有时候也是这样，当我们太忙于自己的工作，忙于自己的思想，执着于自己的决定时，往往忘记了其实还有更加好的解决方法，更加完善的思想。

我们想东西不要太钻牛角尖，往当方面想。“当局者迷，旁观者清”，有时候，我们也要听听别人的意见，然后，再花一点心思研究一下，才做决定。

还是回来那句“自己负责自己的决定，自己的决定自己负责”。万一做错了决定，千万不要责怪别人。必须反省不再重复错的决定。

Summary of October 2015

I done a simple analysis on my Gainvestor Portfolio.

At the end of every month, i will do a simple calculation on the gross earnings/losses.

This statistics does not mean anything, it does not mean any hold/buy/sell decision, it is just to summarize and track the Gainvestor Portfolio.

Gross Performance in % for Gainvestor Portfolio

I guess the winner is quite obvious. It is ESCERAM (0100), who grabbed the highest gross earning of 59% on 27 October. At the October closing, it still maintain his high score of 42%. This is definitely an explosive MAGNUM ESCERAM~

Congratulations who ride on the wind of ESCERAM!!! I certainly hope i can help more people to ride on the wind..

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Let's Ride the Wind and Gainvest

Gainvestor 10sai

1 November 2015

1.50pm

P/S: This is definitely not a show off post. This is just to track own performance. Please dont get me wrong...