HAIO financial result update

FY31/7/10
Financial Result
Current quarter vs 1Q09 comparison
Revenue decrease 63% to RM54.8m vs RM148.6m(1Q10) mainly due to lower revenue recorded by MLM division. From company's statement, they need longer time for division and distributors to re-align their business strategies following new rules on new members recruitment and enhancement of stockist management and professionalism.

As a result, company PBT drop 59% to RM10.8m vs RM26.3m(1Q09). EPS for current quarter stood at RM0.039, a 58% drop.

Current quarter vs immediate preceding quarter comparison 
Higher revenue(RM54.8m vs RM98.84(4Q10)) during immediate preceding quarter was contributed strongly by retail division in conjunction with Chinese New Year promotion.  MLM division is going through a consolidation stages as the reason mention above, has also effected revenue in general.

Technical Outlook
HAIO share price is in downtrend. Its immediate resistance is RM3.28, psychological support RM3.00 follow by long term support RM2.75.

Stock Valuation
With EPS RM0.30(ttm), HAIO is currently trading at PE11x. With current situation that effect company MLM division(contribute most revenue), and longer time needed to re-strategist the division. I think the share price is fully value.

Overall
With yesterday's financial announcement, i personally think HAIO MLM Division sales has hit a bottom after new mlm rules kick in. Next quarter can only get better. However, its share price is deemed overprice given its near term uncertainty. Fair value would be RM2.10~RM2.60.

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Branson: KL a good investment destination

This is an article i read from btimes, about the comment from Sir Richard Branson. I have also highlight the important point of this article.

All in all, for Malaysia to attract more interested from foreign company or fund, we need to be more liberal and transparent. Below are the story:


Malaysia is an attractive investment destination but some issues need to be tackled to attract investors, said Virgin Group founder Sir Richard Branson.

"I think Malaysia has a good reputation but some issues like what's happening with your ex-deputy prime minister (Datuk Seri) Anwar (Ibrahim) has damaged the country's reputation among foreign investors. This thing has gone on for some time," he said.

The British billionaire was speaking at the two-day "Dawn of the New Decade: Alternative Investments in Asia" forum, organised by the International Herald Tribune in Kuala Lumpur yesterday.

He was responding to questions on whether Malaysia's current economic and investment policies would be sustainable for future growth and if the political climate could affect investments.

Branson also said that Malaysia should be more liberal and open in its approach to win new investments.

"Malaysia has got a tremendous future. Generally speaking, I think Malaysia has a lot to teach the West. We look forward to learning a lot from you," he said.

The New Economic Model is seeking US$444 billion of investments over the next decade to lift the country to developed nation status.

Branson, whose Virgin Group has a stake in AirAsia's long-haul affiliate AirAsia X, also said Malaysia should split up and privatise large government-owned companies, which account for more than a third of the stock market value to increase competition and woo foreign investors.

"A lot of your companies are run by the government. It will be better if you privatise, break up big ones into smaller firms for them to compete with each other," he said.

Meanwhile, the Malaysian Investment Development Authority chairman, Tan Sri Dr Sulaiman Mahbob said there is a need to liberalise the services sector to attract foreign investments into the country.

Read more: Branson: KL a good investment destination http://www.btimes.com.my/Current_News/BTIMES/articles/jalibo/Article/#ixzz10wx8IzyP

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CSCSTEL technically looking good

Another stock in my watch-list caught my eye today. CSCSTEL has been riding very firmly on support line since 8 Sept 10, which is attractive to accumulate.(it will be awesome if i grab some back then...lol)

The current price(RM1.76) has rise a bit, not far above support still has more upside to come. According to technical chart, looks like an ascending triangle is on his way. It's crucial to break above strong resistance(RM1.84), with high volume for ongoing price hike.

I think with the nearer to closing end of the triangle, break over is more likely then break under as the timing for 3Q financial result announcement, which should be ok.

With positive MACD(cross over and rising from below zero), i think we should ACCUMULATE with care, stop loss if price drop under support.

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KPJ, is time to accumulate

Technical Outlook
KPJ has been in my radar for the past 2 years. Its share price movement has been very consistently trap in bullish price channel(continuation trend).

It start with a low of RM1.20 at August 09, hitting a high on January 10(A), April 10(B),July 10(C). However, every high follow by retrenchment with price drop back to support on February 10(D), May 10(E) and 3 days ago(F).

MACD also show a positive rebound where it's about to cross over the signal. Any rebound from under zero lines(the centerlin) is pretty safe. 

According to Price Channel, subsequent touching of support during D and E offer a good buying opportunity.
I think this time will be the same and we should wait no time to ACCUMULATE.

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NTPM financial result update

FY31/7/10
Financial Result
NTPM among the first announce its FY31/7/10(due 30/9/10) to announce its 1Q result.
For the quarter under review, its revenue stay flat at RM94.5m, however PBT drop slightly to RM16.6m from RM18.4m recorded 1Q09. The decrease of RM1.8m mainly due to increase in raw material cost.

To compare to preceding quarter, we can see a similarity where revenue rise a little bit but PBT decrease because of the same reason mention above.

I find it interesting to see its current assets and total liabilities increase at the same time. In further look, company has borrow another RM19.37m from the bank, but no explanation given  why they need more cash?

Technical Outlook
NTPM share price is trap between support(RM0.56) and resistance(RM0.63) line. This two line are very strong as i cannot see the price to go no-where then flat(like their earning) in the near future.

Stock Valuation
With today closing of RM0.595, it is trading at P/E 11.7x(eps RM0.051ttm). I think NTPM is fully value with this multiple.

Overall
Company top line has been remain stable but bottom line has drop slightly, due to increase of raw material cost. Over the short term, it is a bit hard for company to offset this additional cost to the customer. Unless it can explore some new market or product, company profit might stay flat. Therefore, it withdraw from my "Growth" list of company but remain a good company for long term investor.

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