買進券商心頭好．文語控股現金流強 可望派更高股息

◆券商：豐隆投銀研究
◆目標價：2.72令吉

文語控股（SASBADI，5252，主要板消費）擁有強勁現金流，預計可達高派息率，強勁成長潛能，及在教育體系的獨特業務覆蓋率乃該股的價值所在，我們維持“買入”評級，目標價2.72令吉。

　在次季淨利強勁推動下，文語控股上半年淨利達990萬令吉，預計未來幾個季度會有所放緩，但仍比首季來得高。儘管公司商品為零稅率，但預計會因消費力降低而下滑。整體而言，我們仍看好該公司能達到預期。

　管理層仍致力于派發高達50%淨利的股息，因此我們將派息率從35%上調至50%，股息回酬率2.3%至3.3%。公司擁有1020萬令吉至1910萬令吉的強勁現金流，淨現金達2490萬令吉，相信派息率能達標。

　文語控股收購華文出版社的計劃仍在進行中，放眼今年內可完成，相信這將推動淨利增長。此外，這也能擴大業務覆蓋率，公司目前在國民型華文學校只是一名小業者。

　愛爾朗卡出版社（Penerbit Erlangga）已採用文語控股線上教學系統，這項線上產品將在本月推出，該平台的一次性執照收入為3萬美元（約11億令吉），其中30%已貢獻首季淨利，剩余的料貢獻在第3季淨利。

　文語控股週四（4日）閉市時起1仙至2.34令吉，成交量達2萬8000股。

Source: http://www.chinapress.com.my/node/627267

热门股 数码网络上挑RM5.95

数码网络（DIGI，6947，主板基建股）日线趋势于6月3日显现一段技术反弹走势，闭市时收5.79令吉，按日涨15仙或2.66%。

短期内，该股料会上挑5.80至5.95令吉。

Source: http://www.nanyang.com/node/705027?tid=462

FLBHD (5197) - Insider Asia’s Stock Of The Day: Focus Lumber

Focus Lumber Bhd 

SABAH-based Focus Lumber (Fundamental: 1.45/3, Valuation: 2.4/3) is involved in the manufacture and sale of plywood, veneer and laminated veneer lumber.

We first featured Focus as our stock pick on December 11, 2014 at RM1.08. It went on to close at a high of  RM1.61 on April 13 before giving back part of the gains in line with the broad market weakness. We think there is further upside potential for the stock given its still-low valuations, high dividend yield and solid balance sheet. 

With 97.8% of Focus’ revenue in 2014 derived from exports, and a significant 64.9% of sales going to the US, the company stands to benefit from both the strong US economic growth momentum and USD.

Focus has bucked the volatile trend of most Malaysian timber companies over the years, which were affected by sluggish housing markets in Japan, US and Europe, as well as low commodity prices.

Its key differentiating strength is its focus on obtaining US environmental and quality accreditation and certification for its products, in order to penetrate the US market better. It was accredited as a CARB Certified Manufacturer in 2008 and a certified Lacey Compliant Wood Products Manufacturer in 2013.  As US economic growth gathers steam, this strategy is paying off.

Focus has been steadily growing for the past 4 years. For the latest 1Q2015, revenue fell 20.6% y-y to RM30 million, while net profit declined 18.8% to RM3.3 million. This was attributed to lower sales volume to the US as a result of a delay in the arrival of vessel departing to the US. 

Dividend per share increased from 6 sen in 2011-2012 to 8 sen in 2013-2014, giving a generous yield of 6.3%. Its dividend payout ratio was 51.5% in 2014.

Currently, Focus is trading at 0.99 times book with an attractive trailing 12-month P/E of 8.65 times. The company has a strong balance sheet with net cash of RM73.8 million at end-March, equivalent to 72 sen per share or 55.9% of its current market capitalisation.


http://www.theedgemarkets.com/my ... -day-focus-lumber-0

BursaAnnouncement : Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the equity interest in Embrace Industries Sdn. Bhd. (EISB) (Proposed Acquisition)

Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the equity interest in Embrace Industries Sdn. Bhd. (EISB) (Proposed Acquisition)

HOMERITZ CORPORATION BERHAD

Type	Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID	IQL-02062015-00003
Subject	Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the equity interest in Embrace Industries Sdn. Bhd. (EISB) (Proposed Acquisition)
Description	Homeritz Corporation Berhad Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the entire equity interest in Embrace Industries Sdn. Bhd.
Query Letter Contents	We refer to your Company’s announcement dated 1 June 2015, in respect of the aforesaid matter. In this connection, kindly furnish Bursa Securities with the following additional information for public release:- 1)      The salient terms of the agreement for the Proposed Acquisition and the date of such agreement was agreed upon. To also make the aforesaid agreement available for inspection. 2)      Detailed basis to arrive at the purchase consideration of RM12,167,400 taking into account the following:- (a)   The net tangible assets of EISB as at 31 August 2014; and (b)   The price/earnings ratio (“PER”) of EISB as compared to PER of Homeritz Corporation Berhad (“Homeriz”) and other companies involved in furniture business listed in Bursa Malaysia Securities Berhad. 3)      Quantification of the revenue and profit contribution (in percentage) from EISB based on the latest audited financial statements. 4)      Based on the revenue and profit contribution above, please justify further on the rationale to acquire the remaining 35% equity interests in EISB which is already a subsidiary of Homeriz. 5)      Whether there is any non-competition clause imposed on the vendors after completion of the Proposed Acquisition. If yes, to incorporate the terms thereof. If no, to justify the reasons for not having the clause. 6)      The outlook of furniture industry in Malaysia and other principle markets for EISB’s products, and the prospects of EISB in light of the industry outlook. Please furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully, HENG TECK HENG Vice President, Issuers, Listing Division, Regulation IJ/TEK Cc : Market Surveillance Dept. , Securities Commission (via fax)
For consistency purposes, the abbreviations and definations used throughout this announcement are the same as those previously defined in the announcement dated 01 June 2015 unless otherwise stated. Our announcement dated 01 June 2015 and the query letter from Bursa Malaysia Securities Berhad dated 02 June 2015 in relation to the Acquisition were referred. We append herewith the following additional information as set out in the attachment below for public release.  This announcement is dated 03 June 2015.

Please refer attachment below.

Attachments Homeritz Reply.pdf 89.1 kB

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Announcement Info

Company Name	HOMERITZ CORPORATION BERHAD
Stock Name	HOMERIZ
Date Announced	03 Jun 2015
Category	General Announcement for PLC
Reference Number	GA1-02062015-00054

Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements/4763853

Trading Idea: Beneficiary of stronger USD - FLBHD (RM1.30/Vol:166k)

• Business profile. Focus Lumber Berhad (FLBHD) was incorporated in Malaysia on 30 October 1989 as a private limited liability company and was subsequently listed on the Main Board of Bursa Securities on 28 April 2011. FLBHD’s principal activities are manufacturing and sale of plywood, veneer and Laminated Veneer Lumber (“LVL”), and inves tment holding. Plywood is the core product, generating the bulk of the group’s revenue.
• Beneficiary of stronger USD. FLBHD’s export markets contributed approximately 98% of the group’s total revenue, especially U.S market which contributed about 67% of the group’s total revenue for FY14. Since most of the revenue is denominated in USD, FLBHD’s top and bottom line could be boosted by strong USD.
• We like the stock as: (1) the stock is currently trading at 8.6x trailing P/E; (2) net cash per share of 71 sen which is 55% of share price; and (3) attractive dividend yield of 6.25%.

• On technical front, the share price is about to reverse after recent retracement from RM1.64 on 21 Apr 2015 to recent low of RM1.26 and well supported by 61.8% FR level (RM1.25). Moreover, the stock is grossly oversold and about to bottom out in near term, substantiated by reading from MACD, RSI and Slow Stochastics oscillators.
• Coupled with “Reversal As cending Triangle” s ignal on hourly chart, we are targeting RM1.40 (gap on 21 & 22 May 2015 and measurement objective of Ascending Triangle pattern on hourly chart) and RM1.49 (23.6% FR), with a long term objective of RM1.64 (all-time high). However, immediate supports are at RM1.29 and RM1.27. Cut loss below RM1.25 (61.8% FR).

Source: Hong Leong Investment Bank Research - 29 May 2015