Gallo Says Euro May Break Up Without `Unified Approach'

Disposed IOI

Disposed IOI @ RM4.56. sigh, bad timing, bad economic indicators, better keep cash ~50% and can enjoy raya more peacefully. :p

PORTFOLIO 1

PORTFOLIO 2

Bought IOI

Disposed Padini@ RM0.98 and bought IOI @ RM4.67. Just for raya rally. amen.

YTL Power International Berhad - RM1.79

So freaking cheap. I think most of investor concern whether they can maintain high dividend pay out, plus uncertainty of local IPP and YES business. But i think the sell off is overdone. They have other good asset that should be worth more than current price. Will start collecting at RM1.70.

Raise some cash..

Took some profit from my CI Holding for 31% gain, just to raise my cash level ~<40% - -. Balance plan to keep due to good deal with Asahi. Hope i could collect again...cheaper.

Now, i can sleep well, if market going north, at least profit already in my hand. :)

Yeo Hiap Seng chalks up good growth

KUALA LUMPUR: Yeo Hiap Seng (M) Bhd (YHS), the owner of the popular household brand Yeo’s and Cintan noodles, seems to be chalking up impressive earnings growth so far this year.

For the six months ended June 30, the food and beverage (F&B) manufacturer posted a net profit of RM11.76 million or 7.7 sen per share, compared with barely RM264,000 or 0.17 sen a year ago.

Revenue rose slightly to RM267.7 million from RM254.4 million in the previous corresponding period.

In fact, the profit achieved for 1HFY11 ended June 30 had exceeded earnings for the entire FY10 ended Dec 31 when it posted a net profit of RM3.8 million.
Nonetheless, the F&B maker’s earnings were dragged down by an impairment provision of RM10.4 million in 2Q.

The company attributed the improved earnings to higher sales, particularly in Indonesia after it relaunched the products in the republic.

Sales in Indonesia more than doubled recorded growth of 124% and exports to Singapore went up 26%.

Vincent Chui, general manager (marketing) of YHS, said the company is positive on its prospects for the current year and will continue to grow operating profit further through brand building, promotion efforts and cost management.

In addition to beverages and instant noodles, YHS also produces canned food and sauces.

YHS is committed to introduce healthy products in line with market demands, he added.

After peaking in 2006, YHS profits have been rather inconsistent. It reported annual net losses in 2007 and 2009 of RM13.6 million and RM11.1 million respectively. Its performance in 2008 and 2010 were also lacklustre with respective annual net profits of RM2.2 million and RM3.8 million.

In late 2009, YHS suffered a setback in Indonesia. The authorities there cancelled 15 of the 31 registration numbers for imports of food issued by Badan Pengawas Obat and Makanan to the company’s wholly owned unit PT YHS Indonesia. The registration numbers are for the marketing and sales of Yeo’s products in Indonesia.

In April 2010, YHS lost the distribution rights of Red Bull energy drinks to rival Fraser & Neave Holdings Bhd (F&N), which dented YHS earnings.

F&N is estimated to earn RM120 million from the distribution of Red Bull energy drink.

In FY09, Red Bull energy drink generated a revenue of RM108.3 million for YHS, with an operating profit of RM1.2 million.

However, in the latest results for 2QFY11 ended June 30, YHS said it had relaunched its products in Indonesia and sales grew by 254% during the quarter.

Malaysia is the biggest market contributing 81% revenue for YHS in FY10. The Singapore market generated about 17% and Indonesia barely 1.8%.

YHS is a market leader in Asian drinks such as chrysanthemum tea, winter melon tea, sugarcane and lychee.

“We are the market leader in the Asian drinks segment with a 37.9% share of the market,” Chui told The Edge Financial Daily.

YHS exports its products to various countries including the US, Canada, Australia, New Zealand, China, Hong Kong, Japan and Vietnam.

In addition to beverages, instant noodle is another core product in the portfolio under the brand, Cintan. YHS also produces canned food and sauces.

“Cintan has a 13.2% market share in Malaysia’s instant noodle soup-based segment. We are also the leading brand in curry chicken and kaya segments [under its canned food products],” said Chui.

Earnings aside, not many have noticed that YHS actually has a clean balance sheet with zero borrowing. As at June 30, the company’s cash balance amounted to RM30 million.

The substantial improvement in earnings appears to have gotten the attention of investors seeking exposure to F&B companies, besides the usual names like F&N and CI Holdings.

CI Holdings is selling its core subsidiary Permanis Sdn Bhd for RM820 million to Japan’s Asahi Group Holdings Ltd. For 3QFY11 ended March 31, Permanis contributed RM129.29 million in revenue to CI’s total revenue of RM140.1mil.

YHS share price was a steady climb from RM1.50 in April to a high of RM2.01 in May. The stock closed at RM1.79 last Friday, and it has gained 28% year-to-date.

To annualise the half-year profit, YHS earnings per share may possibly come in at 15.4 sen. Based on the stock price of RM1.79, YHS shares are trading at price-earnings ratio of 11.6 times.

Emerging Stocks Drop on U.S. Rating, Dragging Index Down 16% From May High

Very interesting market today. All covered with blood bath.

Took profit SOP and disposed all at 4.27 and 4.20. Raising my cash to ~25%.

Sunway Real Estate Investment Trust, SUNREIT

Sunway Real Estate Investment Trust, SUNREIT is Malaysia largest REIT player with RM4.305billion worth asset. They have a very good mixture of asset, but mostly from retail section with more than 50% of asset value comes from Sunway Pyramid. Good retail property always deliver a consistence return even during crisis due to steady growth of consumerism and being a tourist heaven place. Looking at their expertise and track record in property sector and asset enhancement area, i think its safe to put our and trust on them.

Current Price = RM 1.14

Net Asset Value = RM 0.974

Asset = RM4.305bn

Market Value = RM3.063bn

Gross DPS - RM 0.065~RM0.07

DY = 5.7% ~ 6.2%

The yield might look not attractive for time being, but looking at their asset under Right of First Refusal, over the years, more and more good asset will be injected into Sunreit, thus will increase their NAV and DPS.

Looking at uncertain market with US and EU soverign debt issue, i think Sunriet is worth a bet.

Anyway, I always love Sunway Pyramid, very good place to shop and hang out. Clean, vibrant, timeless and exciting. My no.2 favourite mall, Mid valley being no.1.

C.I. Hldgs searches for new core business

Interesting article. Im also excited for CIH new venture. Well, some analyst speculates that they might venture into snack/biscuit manufacturer, property and automotive distributor company, well out of all option, i strongly support if they want to venture into snack/biscuit manufacturers.

Since the MD has vast experience in F&B industry, it would be definitely be an advantage to the group, rather than venturing into uncharted territory for the group like automotive company. The margin is good plus since they have good and established relationship with Pepsi Co through Permanis, im sure it wont be an issue for them to bring in other Pepsi Co products like Frito Lays' etc.

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C.I. Holdings Bhd is exploring investment opportunities across various sectors, including potential investments in fast moving consumer goods (FMCG), its area of expertise.

Managing Director Datuk Johari Abdul Ghani told Bernama today that the company is focused on acquiring a controlling stake for a new core business for C.I.

C.I. has been in search of investment opportunities since it inked a proposed deal to sell off its wholly-owned subsidiary, Permanis Sdn Bhd, which provided a strong core business since the company was established.

Permanis contributed over 90 per cent to C.I.’s profit and revenue. On July 21, C.I. signed an agreement with Japan's Asahi Group Holdings Ltd, to sell Permanis for RM820 million cash.

"Since our announcement, we have received many proposals and continue evaluating them. The proposals received so far have spanned a broad range of industries including FMCG.

"At this point of time, we are not ruling out anything and will consider any new proposal received.

"However, we are focused on proposals where we can take a controlling interest. Hence, we also feel that it is important to take our time and consider each proposal carefully," Johari said.

He said C.I. is still deliberating and has yet to determine the utilisation of proceeds from the disposal of Permanis.

"We are mindful that the allocation of the proceeds must take into consideration the interest of the company and its shareholders," he added.

He is the single largest shareholder of CI with a 30 per cent stake.

Syed Khalil Syed Ibrahim and his mother, Datin Mariam Prudence Yusuf, collectively hold a 20 per cent equity interest in the company.

Johari said the company is in the midst of preparing a circular to obtain approval from shareholders for the disposal of Permanis.

"We expect to be in a position to issue the circular to shareholders in October and the extraordinary general meeting will take place 21 days thereafter," he added.

He said the company will release the results of its financial performance for the fourth quarter and full year on Aug 25.

For the financial year ended June 30, 2010, the company turned in a net profit of RM38.17 million on revenue of RM516.4 million.

C.I.posted a net profit of RM11.37 million on revenue of RM140.42 million for the fourth quarter of its financial year 2010. -– Bernama