Simulation Portfolio 5

I have been disappeared a few months busy for house hunting and some personal matter. Anyway, I am back! Look at my portfolio, is still making money, and is more than my last portfolio report.


In seven months time, my portfolio recorded a total gain of RM28350, which is slightly more than my last portfolio record! More and more news regarding the recovery of the word economy resurface, which is a good thing for those already in the market early this year. The most successful counter still is HARTA, which has appreciated almost 95% in 7 months time.


Again, I will keep all the counter in my portfolio as I believe there will be further upside in future. For DIJACOR, it will carry out RIGHTS ISSUE OF UP TO 214,115,875 NEW ORDINARY SHARES OF RM1.00 EACH TOGETHER WITH UP TO 142,743,917 FREE DETACHABLE WARRANTS AT AN ISSUE PRICE OF RM1.00 PER RIGHTS SHARE ON THE BASIS OF THREE (3) RIGHTS SHARES TOGETHER WITH TWO (2) FREE WARRANTS FOR EVERY FOUR (4) EXISTING ORDINARY SHARES OF RM1.00 EACH. This could have diluted the current NAPS of the company but the most value piece of land in the company were not valued with current price, with the issue of right share, the company may re-evaluate the value of their land bank. This in return will increase the company NAPS.


The world market still depend very much on US market as we can see for the pass few months, in other words, as long as US market advance, the rest of the market will follow and the other hand.

HARTA (Article 2)

Why I like HARTA

Glove industry is one of the recession proof industries but HARTA has been the most efficient glove producer among the glove producer in Malaysia. It has RM29.7 million net cash currently. HARTA has developed its own machinery and technologies for its high-capacity production lines.

Its production lines are highly automated and can produce up to 30,000 pieces per hour. This is the highest capacity in the industry. The group had also developed the first mechanical glove striping system in the industry. HARTA net profit margin is about 19%, far higher than the average of 6% in the industry.

The company own and run by an experience and capable person assisted by his two sons, one can consider as a family business. Both of his sons are directly involved in the business and could be a good successor in future.


HARTA Prospects

The glove maker, which has four plants currently, produces up to 6.2 billion gloves annually and its output is slated to expand to 10.5 billion pieces by 2011 when its fifth plant is ready. Glove producer remains one of the country’s best-performing manufacturing sub-sectors as demand for gloves is still increasing in the healthcare industry, in spite of the global recession. HARTA which produce nitrile and rubber gloves in the ratio of 80:20. Demand for the nitrile glove is increasing, not only in the health care industry but also in the foods sector. It has the technology, peoples and market, thus, I believe in the near future, HARTA will be a star as it net profit and dividend payout keep increasing. In fact, investor started to realize that HARTA has the potential with its share price increase more than 100% this year alone. Of course, partly is due to the worsening of A(H1N1) flu.


Dividend record

Year Gross Dividend
2009 0.08¢
2008 0.04¢

The company may want to have a minimum of 10¢ dividend payout annually.


ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 4

The current global economy seems to reach another turning point from bad to “start to boom”, perhaps another cycle start to roll again, the game is on! Money seems to flow into the equity market again and this push the word market up and up again. Cheer….

In four months time, my portfolio recorded a total gain of RM28150, which is a very good return! But beer in mind that buy the right share in the right time is the first priority, is not always happen. The most successful counter will be Harta, which has appreciated almost 92% in 4 months time. As mentioned in the last report, due to the worsening of H1N1 flu, glove demand increased globally and this has created interest over the counter.

I will keep all the counter in my portfolio as I believe this is just the beginning of another bull cycle, which I believe there will be further upside in future. The latest US unemployment drop a little bit to 9.4% last Friday shows that the US economy is improving, but slow.

Base on the KLCI historical chart, composite index has rebounded about 400 points from the low year to date to almost 1200 points.

HARTA - Article 1

Brief Introduction HARTA

Established in 1988, HARTA or its full name Hartalega has experienced tremendous growth and evolved into a sizeable company of 25 Production Lines, producing over 3 billion gloves per year and GROWING. Listed in Bursa Malaysia on 17 April 2008, produces both nitrile gloves and natural rubber gloves at a ratio of about 80:20, is currently the largest nitrile glove producer in Malaysia and the second largest in the world. HARTA may clinch the top spot as early as December 2009 when it commences operations at its two new factories which will increase its output capacity to 9.3 billion pieces of gloves and see its workforce increase by 25% to some 1,500 employees.

Historical Share Price

Refer to Chart 1. Share price of the Company since 17 April 2008 until 17 July 2009. The share price reached RM5 in one of the trading day last week in conjunction with the worsening of global Swine Flu which increased the demand for glove. I have considered of sell the counter once it reached RM5 as the total return of more than 50% within 3 months. Anyway, I believe with the economy recovering and after the completion of HARTA new production lines, the company will make more profit, thus the share price still have room to grow. I am confident that with the new production line on board, net profit of HARTA will surplus RM100 million.


Recent Quarter Financial Result

HARTA net profit rose 248% to RM31 million in its fourth quarter (4Q) ended March 31, 2009 from RM8.92 million a year earlier on the back of strong organic growth despite the challenging economic environment. HARTA net profit was up 21.5% to RM84.5mil for FY09 from RM69.5mil in FY08. Revenue jumped 72% to RM443.2mil during the period while earnings per share climbed to 34.87 cent from 31.94 cent previously. The group’s net-profit margin was about 19% in FY09 compared with 14% in FY08. HARTA has been registering a compounded annual growth rate (CAGR) of 44% in revenue in the last four years, the company also expects to sustain a double-digit growth in top line this year.




ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 3

The world equity market seems to slump after a moderate rally for the last one month, probably one can consider as a bear rally, like I has mentioned on the last report, is a bit too fast – the rally.

Now, with US jobless data shoot to 9.5% record high, what we can expect next? It seems the economy still fragile, still struggling to stop falling (not to come out from the bottom yet). I personally feel that the world economy will be slightly better from 2010, not 2009.

For the past 2 weeks, local market followed regional market faced sell off pressure and adjustment after a moderate rally. Nevertheless, the simulation model portfolio still manages to make profit up to date. Total return for the past 3 months is RM 16000. The most profitable counter is HARTA which has a return of almost 50% for just 3 months. This was mainly caused by the worsening of swine flu which increased the demand of gloves globally.

DIJACOR (Article 2)

Listed since 1992, DIJACOR is a Klang Valley based property developer. Corporate tycoon Tan Sri Danny Tan Chee Sing is the main shareholder in the company. Management lies in the capable hands of managing director Tong Kien Onn and his team. Base on Chart 2, DIJACOR net profit quite consistent between RM30 million to RM50 million for the last 5 years. Meanwhile, it’s net asset per share increase steadily to RM 2.39 as at end of 2008. The land it owns in Tropicana and Damansara Indah are stated below current market value in its books value as reported by TheEdge analysis report on Dec 2007. If based on the current market values, the estimated DIJACOR’s RNAV at about RM4 per share – almost three times the current share price.

As at end of 2008, DIJACOR has unbilled sales of RM283 million and at end-September 2008, net cash and equivalents stood at RM26.6 million. Not many property developers have net cash on hand. Further more, between December 2007 and February 2008, the company acquired a total of 186.2 acres of
mainly agriculture land, but within or nearby established areas. The acquisitions include 26.4ha in Kajang,Selangor, for RM47.5 million (RM16.50 psf);
37.4ha in Jenjarom, near Klang for RM29.5million (RM7.25 psf) and 10.7ha. in Cheras for RM18.7 million (RM16 psf). With this, DIJACOR would have a total land bank of around 386.8ha.

There are 2 main projects which may be launched from mid-2009 to mid-2010, namely Tropicana Grande and Tropicana Avenue. Tropicana Grande was to consist of 241 units condominiums with large built-up space of 2,500-4,500 sq ft, located on 2.1ha. land. Tropicana Avenue was to comprise three blocks of nine- and 11-storey shop offices on 2.8ha. land. In the meantime, the company is busy completing its existing projects in Tropicana City and Tropicana Indah, as well as the shops in TSB Sungai Buloh. DIJACOR will also focus on selling the balance of its projects and inventory, such as those in completed projects like Casa Suites, Tropics Designer Suites and Villa Green.

Tropicana City Mall opened in December 2008 and the office tower will be
completed in mid-2009. This will provide a new source of recurring income
from 2009 onwards, with rental income of over RM20 million from the mall and
RM5 million from the tower.

Besides, DIJACOR also has an Indian joint-venture project which has no been finalize yet. However, the company has proposed three-for-four rights issue but has been delayed until Sept. 2009. Anyway, it is believe that the right issue will be eventually called off given weak market conditions and its strong balance sheet.

DIJACOR's shares are trading well below it’s book value of RM2.39 as at end of 2008, which is already severely understated. DIJACOR's shares are attractive for
longer-term investors. The company has a strong balance sheet, large prime
land bank acquired at low costs and the ability to ride through the downturn relatively well.



Note: Most of the contents of this article are refer to analysis reports from TheEdge.


ATTN: THIS DISSCUSION IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. VISITORS SHOULD VERIFY INFORMATION WITH OTHER RELIABLE SOURCES.

Simulation Model Portfolio 2

Base on the current market price, total return for the simulation model portfolio is RM15300, in a period of less than 2 months. In the past 2 weeks, local market follow regional market rebound strongly and break the KLCI 1070 point settle at 1075.5 as of 5 June 2009. This is a very encouraging sign amid the recovering of the global economy. But, still I will say is better to stay cautious optimistic as the rebound seems very fast, a bit too fast.