Stock Price (2024/06/05): RM0.210
P/E: 1,117.02 (prior loss effect)
Dividend Ratio: N/A
NTA: RM0.100
Recently, the moderator saw that people are starting to focus on transportation stocks. Today, I will be introducing KGW Group Berhad (KGW, 0282), an asset-light transportation stock. I believe everyone will have some gains after reading it.
Looking at the general market situation, the Red Sea incident caused many shipping costs to rise. The original ones include: 1) the need to hire shippers at a higher cost, 2) the need for more expensive insurance, and 3) the need to borrow farther routes, such as moving to Cape of Good Hope, which will directly affect the supply chain and transportation costs.
According to information, the shipping cost per 40ft container has nearly doubled (this is an average value, not a specific route). Although it has not returned to the high level during the pandemic, it is still higher than normal.
To give you a real example, the transportation cost of a 20ft container (“TEU”) in Shanghai-North Europe has rapidly risen from USD2,530 in March 2024 to USD7,400. You can see how much the increase has been.
So what does today's KGW shipping cost matter?
Of course it matters...

Stock Price (2024/07/22): RM0.220
P/E: 12.9 times
Dividend Ratio: N/A
NTA: RM0.200
After the market correction last week, our stock market saw another 914 falling stocks yesterday. At the same time, there was also a drop in trading volume. It seems that this “correction” is a bit too big.
However, we can still notice that recent IPOs have performed very well. Oversubscribing is generally more than 50 times (depending on the industry, of course), so the moderator also wanted to share BWYS Group Berhad (BWYS, 0313), a company that few people mentioned, so that everyone can learn more about them.
We also mentioned in the title that BWYS is a steel stock, and the company's business can be divided into three categories; the first category is products related to sheet metal manufacturing (“Sheet Metal”), the second is the sale and rental of scaffolding (“scaffoldings”), that is, the “shelves” we see outside of some established industries, and the last one is trading steel-related (“trading”) products.
In FY2023, sheet metal manufacturing accounted for 73.0% of revenue, supply scaffoldings accounted for 24.9%, and last-minute trading...

Stock Price (2024/06/13): RM0.280
P/E: 8.47x
Dividend Ratio: N/A
NTA: RM0.270
Looks like yesterday should have been a great day. 3 companies actually issued prospectus ready to go public in one go public?
Among these 3 IPOs, the moderator also selected the company that he personally thought was the most interesting to discuss with everyone; however, let's first explain that this is not a trading proposal; if you see the end, you also need to filter it yourself.
Let's first talk about why we think Ocean Fresh Berhad (OFS, 0312) is so interesting; first, OFS's current IPO is only 210.1 million shares, RM0.280 per share, which means that after listing, the company's market value is RM58.8 million, which is a relatively small IPO in 2024.
Also, OFS's current IPO did not develop MITI subscriptions, and no shareholders sold shares (Offer for Sale, which also happens to be “OFS” for short), which is quite intriguing.
In other words, the OFS situation is for small stocks, and there is little selling pressure, and with further inquiries, the background of several major shareholders is also not easy. If you are interested, you can turn over the prospectus and take a closer look...
...

The moderator heard about the 2024 Olympics. Will this company benefit?
Speaking of which, the recent stock price trend of Wentel Engineering Holdings Berhad (WENTEL, 0298) was very good, and the stock price reached a record high of RM0.390; so, what is the Wentel company worth paying attention to, why is it called a “technology stock”, and what are the company's future prospects?
Let me give you a brief introduction; WENTEL was listed on February 6, 2024, and the company's main business is sheet metal processing (“Sheet Metal Fabrication”), manufacturing precision parts (“Precision Engineering”), and equipment assembly (“Assembly”).
The entire production process of WENTEL products is to first buy raw materials (mainly sheet metal), then go through a series of processes such as punching (“punching”, which I personally understand as “drilling”), laser cutting (“laser cutting”), CNC milling (“CNC milling”, which can probably be understood as “engraving” with equipment), surface treatment (“Surface Trea...

Stock Price (2024/06/05): RM0.130
P/E: -9.18 (cannot be counted due to losses in the previous quarter)
Dividend Ratio: N/A
NTA: RM0.070
Note: Before entering the main text, I want to tell readers that Siab Holdings Berhad (SIAB, 0241) has recently been working on additional shares (“Rights Issue”). The overall structure is relatively complicated. In fact, it was also because they invested in the company for a friend that the moderator specifically explained their additional share operations, so keep in mind that investing is risky!
First, let me introduce that SIAB's main business is construction, and the industries they build include the residential industry we live in and the industry we don't live in (collectively, “Non-Residential”); some of the more well-known projects SIAB has participated in in the past include Quayside Mall, F&N Intelligent Industrial Building, Hospital Bentong, and Menara LGB et al.
Well, I believe the construction industry is also relatively easy for everyone to understand; in fact, construction companies mainly bid for new projects, obtain projects, prepare for construction, and deliver projects on time; otherwise, they will get default compensation (“LAD”)...

Stock Price (2024/06/04): RM2.810
PE: 15.51 times
DY: 1.96%
NTA: RM1.702
Note: The stock price of Sprtizer Berhad (SPRITZER, 7103) has reached a record high. I would like to remind everyone that it is risky to go higher before you start reading the text!
Today, SPRITZER, which the moderator has been watching for a long time, hit a new high stock price today (well, I haven't bought anything yet). Apart from the Kuala Lumpur water outage which led to indirect sales promotion, the company's record high in the most recent quarter, or FY2024 Q1, also helped drive the stock price.
Judging from the quarterly report, SPRITZER's revenue is RM135.0 million, and profit after tax (“PAT”) is RM15.5 million. At the same time, the company should have met with some funds in the near future, so the stock price is so strong.
I believe everyone knows that SPRITZER is a well-known domestic mineral water brand, and the company's market rate for bottled water (“bottled water”) in Malaysia should be around 40.0% to 50.0%, while the market rate for mineral water should be even higher.
**Mineral water and bottled water are two different concepts, we'll explain later ~
Well, this mineral water company...

[Technology Stock] Cape EMS
Stock Price (2024/06/02): RM0.970
PE: 19.52 times
DY: 1.13%
NTA: RM0.470
Some netizens have been asking me recently, why do so many companies perform well, but their stock prices are still falling?
For example, the Cape EMS Berhad (CEB, 5311), which we are investigating, is a good example; the company reached a new high in FY2024 Q1, and profit after tax (“PAT”) also returned to RM13.4 million, but the stock price still fell from a high of RM1.080 to the key support point of RM1.000, which closed at RM0.970 last Friday.
Today, let's discuss CEB's business, and in the final part, we'll further discuss the topics of rising performance and falling stock prices.
Let me give you an overview; CEB is a company that mainly focuses on electronic manufacturing services (“EMS”), and investors with some experience in Malaysian stocks are certainly not unfamiliar with the term EMS. There are also many people who understand EMS as an “OEM” service for an electronic product. For example, a British hair dryer brand has given huge orders to many EMS companies before, and “achieved” very good results.
But I'll also share with you here, this hair dryer...

Stock Price (2024/05/19): RM2.030
PE: 11.24 times
DY: 3.20%
NTA: RM1.100
OFI (7107), which I shared with you earlier, announced their Q4 FY2024 results yesterday. In addition to a new high performance, the company also paid a dividend of RM0.020. So why did the company's stock price not rise but fall?
Before we discuss this in depth, let's take a look at OFI's performance.
In the quarter, OFI's revenue was RM109.7 million, up 30.77% from RM83.9 million in the same period last year, mainly due to increased revenue in overseas markets.
Although OFI does not have a detailed distribution of products, my personal guess is that sales of ZESS and potato chips products will increase; judging from what the company shared at AGM last year, I believe ZESS's share of the company's revenue will gradually increase in the future.
At the same time as revenue increased, the company's gross profit margin (“GPM”) also increased from 15.12% to 20.65%; profit before tax (“PBT”) surged from RM4.3 million to around RM18.2 million.
Compared to Q3, OFI's revenue...

Stock Price (2024/05/29): RM0.470
PE: (Q1 performance averaging) 11.75 times
DY: N/A
NTA: RM0.080
Note: The company's stock price has nearly doubled from RM0.240 of the IPO!
The only “vegetable stock” in Malaysia was favored by many investors after it was listed; however, the vegetable industry still has a high threshold. Why is it that only they have been listed so far, and how can they maintain their competitive advantage after listing at the same time?
The moderators are also very curious about these issues. I hope that after today's article, everyone can have a deeper understanding of this field.
First, the business of Farm Price Holdings Berhad (FPHB, 0304) can be divided into 4 main categories; the first is wholesale fresh vegetables, pre-packaged fresh vegetables (“Prepacked Vegetables”), fresh-cut fresh vegetables (“Fresh Cut Vegetables”), and operating its own retail store in Ulu Tiram, Johor.
In terms of gross profit margin (“gross profit”), of course, the highest profit margin is Fresh Cut's processed fresh vegetables (up to 30% to 40%), and generally these vegetables are...

Would love to thanks moomoo for the reminder for us investors to have a moment of reflection in life.
“Never overpaid for any stocks, no matter how much you liked the business or management.”
This remains as the mantra of my personal investment, as overshooting valuation may result in limited gains, and longer ROI period, plus high chance of capital losses when normalization of hype occurs.
May all investors pay rational price on excellent businesses.
Cheers