Friday, May 20, 2011

Presentation and Interview

Found this just now. Would like to share with you guys. An interesting and detail presentation. Long Hartalega . Here is the link.

P/S : You Must See This Movie.

Just find another link about the interview with Jens Reisch, the CEO of Allianz Malaysia at BFM. Interesting. Shall listen to it. Here.  

Wednesday, May 11, 2011

Why Allianz Is Considred Cheap To Me

I long Allianz and have been bragging about it. Why I like and hate it. I like because it is still considered cheap to me ( Will expalin later ). Hate it because of it low liquidity. If you read this  you will find the 40 % Berjaya Sampo would be sold at RM 496 mil which values Berjaya Sampo at RM1.24 bil. This is 3.3 time its book value ( NTA ) according to the source.
At RM5.25 a piece Allianz ( a general + life insurance ) is now trading at RM808 mil. Including Allianz-PA, the whole company is valued at ( 808 + 979 ) = 1.79 bil. A rough calculation will translate ( Allianz + Allianz )'s book value at RM3.64 per share. At RM5.25, it is selling at ( 5.25/3.64 ) 1.44 NTA. Comparing to Berjaya Sampo at 3.3 NTA, Allianz is considered cheap to me. Furthermore, Allianz has it life insurance arm and have a huge Taiko ( Aliianz SE ) behind it's back. Operational and prospect wise, Allianz is a queen of the ball. What do you think ?
Happy Trading. 

Tuesday, May 10, 2011

Another Oustanding Result

Hartalega just released its Q4 result. Here In short its revenue, profit, cash flow and etc is exceeding a fabulous company should have. Go ahead and tabulate it's financial ratio, profitability ratio, valuation measure or anything that you want to name it, you would find nothing less than a "thumb up". I just can't understand the market value it at PE of 11.00 ( 5.70/0.52 ) with a dividend yield of 3.68 % ( 0.21 /5.70 ). It deems kind of undemanding ( cheap lah for a layman term ). Furthermore, it is still undergoing it's expansion plan. Here is what the management has to say :

Commentary on Prospects and Targets
Our Group’s products are sold to the Health Care Industry. Glove consumption is inelastic in the medical environment because the usage of glove is mandatory for disease control. Our nitrile synthetic glove was well accepted by the end users due to its high quality and elastic properties that mimic that of a natural rubber glove.
The switching from Natural Rubber to Nitrile glove has gather momentum in Europe and demand is growing rapidly. We expect the Nitrile glove demand will continue to grow by 30% for calendar year 2011 and our Group is well positioned to take advantage of such demand growth with the completion of our plant 5 production lines which has started to contribute toward increasing our output capacity.
Correspondingly more producers are switching their production facilities to produce Nitrile glove and we may see some overcrowding of nitrile gloves producers. With the sharp increase in Nitrile material price and a weaker USD, challenging time is ahead.
Our Group is well positioned with the competitive advantage, leveraging on our technological competency, we will be able to deal with the competitive environment and limiting the impact on our margin and absolute profit.
The Group has achieved the internal target growth of net profit for the financial year ended 31 March 2011. The Board of Directors is optimistic that the Group will achieve continuous growth and securing better results for the next financial year.

Sound like they do really know what are they doing and know the game pretty well. Hopefully Mr. Market will give it a higher valuation. Long Hartalega big time.

P/S : The poster of a movie by Hou Hsiao-Hsien. A rare Japanese movie directed by 侯孝贤.Always like his movie.