Tuesday, January 26, 2021

Mclean growth path is great with Thailand expansion

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If you are in my Telegram group, you would had noticed that I had been talking about Mclean Technologies Bhd for quite sometime. If you want to join the Telegram for FREE, yes, FREE, you can do so at https://t.me/targetinvest88

In fact, I had been talking on Mclean since the days it is trading below 20 cents. As I find this company very interesting on it's own way, the potential growth of this company opened up my eyes and mind as I compared to the peers of the industry, hence I would like to inform that I had vested interest in Mclean Technologies Bhd (MCLEAN - 0167).

Investing are tough nowadays, hence it is imperative to look for good companies to invest in growth that can burst up in a quick manner. 

While Mclean is a small company that most do not know yet, it is dealing with services such as cleanroom packaging and surface treatment such as precision washing for a few sector, namely oil and gas, HDD and other electronic goods.




One of the most exciting move that Mclean had taken 5 years ago is to venture to Thailand to be nearer to it's major customer Seagate.

Source


Seagate expansion in Thailand from 2015 to 2020 valued at USD 470m CAPEX.

Source

Currently, Seagate owned global HDD market share 40%


What we are seeing here is could be another future technology gem riding along with global MNC growth.

According to the latest quarter report from MCLEAN, the company is expecting a improved revenue starting 2H 2021 with contribution from Thailand factory due to increase demand and orders.


Let's look at the matured player in the HDD industry scene
1. DUFU - market cap almost RM 2 billion




MCLEAN TECHNOLOGIES BHD
RM 68 million market cap



I believe that MCLEAN is on a good growth position by leveraging on the growth of Seagate, and also the proximity of MCLEAN with Seagate largest producing hub in South East Asia will definitely give MCLEAN a lot of better chances in the coming future.

At the current market capitalization of RM 68 million, there is just a huge growth in terms of market cap for Mclean, given competitor are sitting at RM 2 billion market cap (DUFU).

JCY RM 950 million
Notion RM 440 million
(Do note that JCY will be exiting HDD business and focus on Automotive, and Notion is also reducing on HDD business and focus on other)

So do you think Mclean will stay at market cap RM 68 million forever? With JCY and Notion exiting and reducing HDD orders, player in this industry will streamline to 2 player - Dufu and Mclean

How much is the potential for Mclean, let's talk about a 3 years time frame?  RM 500 million market cap? That will be above RM 2.

Stay tune for more news on Mclean with Target Invest.

-- I have to informed that I have vested interest in Mclean, and I am not a certified financial or stock analyst. Above view is just my expression for your reference study and this is not a buy sell trade call for Mclean. Kindly do your own due diligence and consult your own resources --




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Sunday, January 3, 2021

Global lumber prices soaring to benefit Minho in export

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What is the possible next trend for the global market? 2020 had saw glove theme, vaccine theme, plantation theme, logistic theme and the end year steel theme play. Coming into 2021, we should be looking no further at timber theme play, at least in the 1Q 2021.

Global plywood prices had been staying up, putting up pressure for prices to increase in construction as plywood are one of the main component in construction.


Prices for 1000 bdsf of plywood are now trading above usd 600, and in my opinion, prices will continue to remain inflated above usd 500 due to several factor as highlighted below :-

1. Coronavirus pandemic had affected the supply of log wood due to the lockdown. The timber processing supply chain from upstream logging work until downstream processing are affected by worker supply issue.

2. Developed country practicing work from home are encouraging more home renovation work to be done, and also more new home sales, hence pushing up demand for plywood in construction.

3. The forest supply for raw timber log at British Columbia are affected by infestation of mountain pine beetles. Warmer weather continue to encourage their growth and infestation.

4. Forest fire burned down 15 billion board feet of timber. 


With all the issue that are happening, supply chain are getting damaged while demand keep pushing up higher. This will only result in higher selling prices for timber goods.

WHY MINHO IS A POTENTIAL COMPANY TO GAIN FROM THIS ?

MINHO is in the business of timber for more than 40 years. Throughout the years, the business had expanded into several categories which include

-Kiln drying and chemical preservative treatment
-Manufacturing, exporting and dealing in moulded timber and related products.
-Export of processed timber products
-Trading in logs supply and timber related products
-Exploitation of timber concessions
-Operation of a fully integrated timber complex
-Manufacturing and distribution of industrial paper bags
-Property development
-Plantation



Minho export the sawn timber goods to Germany.

Currently, Minho charting is attractive as consolidation of the chart looks good at 35 cents

The price movement suggest a maturity point where a potential break out point will trigger the share price to move with a positive upward bias based on the global event happening in the timber trading.



For Mid/long term investor, current price around RM 0.35 +/- could be a good entry as price consolidated nicely around this range.


Above information is for reading and references on the write own personal opinion on the global timber trade and how it will affect company (Minho) that is dealing with timber trading. It does not represent a buy sell or trade to your investment decision.



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Friday, December 11, 2020

MCLEAN TO BE RIDING HIGH ON VACCINE LOGISTIC CHAIN SUPPLY ?

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For 2020, the most happening trades in the share market would be gloves and vaccines related companies, and logistic company that is going to be involved in distribution of vaccines.

 

Gloves company, you know who they are. Vaccine related companies that had inked MOU for distribution or manufacturing will be those like BINTAI, SOLUTION, HWGB. But how will the MOU goes, or will it materialized, that is another question, but so far, the companies shares are goreng goreng.

 

Logistic transportation are also on the hype, such TASCO that provide cold chain transportation services. TNLOGIS are also in the mood.

 

However, one might be wondering, what about companies involved in BULK PACKAGING FOR TRANSPORTATION OF VACCINE? Any listed companies in Malaysia will be close to be doing that?

 

 

IF YOU ARE WONDERING WHICH COMPANY, LET ME SHOW YOU A POTENTIAL COMPANY LISTED IN KLSE THAT HAD THE CAPABILITIES TO PROVIDE BULK PACKAGING CONTAINER FOR VACCINE TRANSPORTATION.

 

This company is MCLEAN TECHNOLOGIES BHD (MCLEAN - 0167)

 

MCLEAN mainly provide few services

1. Services for HDD industry including assembly process, cleaning and washing.

2. Services for Surface treatment for HDD industry, semicon, printers and oil and gas.

3. Manufacturing of packaging products - all types of tray, plastic corrugated partition, and customized plastic pallet that can withstand up to 1000KG load.

 

Since this is about packaging, so we will talk about the packaging segment of MCLEAN.

 

 

Below is the example of an insulated plastic pallet shipper for vaccines and other medical products.

 

 


 

 

 

More dimension to see how this plastic pallet looks like

 

 

 

 

 

The above is China brand plastic pallet shippers for medical items, including vaccines.

 

 

So what about MCLEAN ?
 

MCLEAN ALSO DOING SIMILAR PRODUCTS IN MALAYSIA AT JOHOR.

 

 

 

Their product now is servicing the semiconductor industry packaging. Customer include KESM.

So here are the image of the products, can be customized to suit customer needs.

 

So, can MCLEAN ride big on this?

 

Malaysia minister say that they want Malaysia to be a vaccine manufacturing hub in South East Asia, probably this will be able to change the fortune of MCLEAN in the coming future.

 

Now MCLEAN share price still looking good, around 20 cents range.

 

 

I believe MCLEAN will be having positive changes in 3 to 6 months time.

 

This is not a buy / sell / trade call for MCLEAN. Only informed of the potential prospect for MCLEAN. Any investment or trading decision, please do your own due diligence.

 

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Tuesday, October 6, 2020

INVEST DOMINAN NOW, FUTURE CAN GENERATE 10% ROI FROM DIVIDEND. CASH COW GOOD BUSINESS SOLID DIVIDEND PAYMENT RECORD. NO TIME TO MISS

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With MALAYSIA OPR rate shrinking down, FIXED DEPOSIT RATE had been dropping and interest income are affected greatly. 2 years back, the FD PROMOTION RATE can be as high as 4.5% PER ANNUM. At the current market scenario in 2020, the FD PROMOTION RATE can only go as high as 2% PER ANNUM, and the OPR RATE will be expected to stay low for sometime until economy recover and pick up again.

How long the market will takes to recover? How long will it pick up again? Will it stay low for a few years? 2 years? 3 years? 5 years?

If that is your concern, maybe is time to take some time and look for some dividend income that had better yield, steady and also had good management.

The one company I am looking into is DOMINAN 7169 (DOMINANT ENTERPRISE BERHAD).



This company main business is to supply raw material to furniture company for their manufacturing. Furniture plywood and skirtings. Dominan also supplies so construction material as their expansion business.

Dominant will also be looking to create a stream of steady rental income this year after their warehouse factory is ready and already have ready tenant to rent their commercial property.

Most importantly, investor have to know that this company is not a goreng goreng stock, the company owner always prioritize shareholder value, and dividend payment every quarterly.

DOMINAN had been paying dividend without fail since 2005.

Why the current price is very attractive for you to invest into DOMINAN.

1. The company had good and strong record of paying dividend. Here are the past 4 years total dividend that the company had paid out to shareholder.


YEAR 2017 - TOTAL DIVIDEND PAID IS 5 CENTS


YEAR 2018 TOTAL DIVIDEND IS 7 CENTS
YEAR 2019 TOTAL DIVIDEND IS 7 CENTS


YEAR 2020 TOTAL DIVIDEND IS 4 CENTS 


WHY FYE 2020 TOTAL DIVIDEND PAID IS LESSER ?

REASON IS SIMPLE, NOW THE WHOLE WORLD GOT COVID-19 SITUATION, AND DOMINAN SUFFER FROM A 3 MONTH LOCKDOWN ON OPERATION. THE IMPACTED THE REVENUE, HENCE THE LOWER DIVIDEND PAY OUT

HOWEVER, THE CURRENT FURNITURE LANDSCAPE AT MUAR, JOHOR IS OPERATING AT MAX CAPACITY. ORDER ARE PILLING UP AND FURNITURE MAKER ARE ALL BUSY FULFILLING ORDERS.


COMPANY LIKE POHUAT WHICH HAVE OPERATION IN MUAR AND VIETNAM ARE BOOMING WITH ORDERS.



DOMINAN ALSO HAVE OPERATION AT MUAR JOHOR AND VIETNAM.

BOTH ARE FURNITURE HUB IN SOUTHEAST ASIA!!!

SO WILL DOMINAN BUSINESS CONTINUE TO BE LOW ? OR THE BUSINESS WILL REBOUND?

IF BUSINESS REBOUND, WILL THE DIVIDEND GO BACK UP?


LETS SAY U ARE INVESTING AT 70 CENTS NOW, GIVE ANOTHER 1 YEAR, DOMINAN BUSINESS REGAIN TRACK AND CONTINUE PAY BACK 7 CENTS DIVIDEND A YEAR, MEANS YOU ARE GETTING 10% ROI ON DOMINAN DIVIDEND

RULES OF 72, BASED ON 10% ROI OF DIVIDEND, YOU WILL RECOUP ALL YOUR INVESTMENT FROM DOMINAN IN 7 YEARS!!!!

NOW THIS IS UR CHOICE TO SEE IF DOMINAN AT THE CURRENT PRICE WORTH FOR YOU TO TAKE THE RISK


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Monday, October 5, 2020

SCABLE FULL OF UPSIDE POTENTIAL NOW !!! CAN BE RUNNING AHEAD BEFORE SARAWAK ELECTION

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The Sabah state election already passed, votes casted, and new state government formed. Now the heat will be looking at the incoming Sarawak state election.

According to the constitution, the Sarawak state election must be held before the 7th September 2021, which means both parties got lesser than 12 months to prepare for it.

The Sarawak Election will be very crucial. The Sarawak state government had been pushing out a lot of infrastructure upgrade in order to improve the welfare of the people. One of the most significant is the construction of PAN BORNEO HIGHWAY.

According to TheEdge, the current completion of the Sarawak section stands at 52%, and Sabah is 32% as of August 2020.

There is still balance of 20 packages for the highway.
Excerpt taken from The Edge.



Sarawak push for infrastructure upgrade will benefit a lot of local Sarawakian company. Sarawak based company such as CMSB, SCABLE, KKB, HSL, ZECON

For now, my focus light will be SCABLE 5170. SARAWAK CABLE BERHAD



SCABLE price at the current level is very attractive. The company share price currently is resting at technical support line. While the company is making some losses, the political linkage with the Sarawak state government and established ties is very valuable for the company future potential growth.

We see the technical accumulation on 25th June 2020 as a very positive signal for the stock to move forward.



SCABLE substantial shareholder include Dato Sri Mahmud Abu Bekir Taib holding a total of 26%, which is the son of the Sarawak Governor - Tun Taib Mahmud


SARAWAK ENERGY BERHAD (SEB) also held substantial stake of 16%


WHY SCABLE WILL BE ATTRACTIVE 

1. MORE PROJECT TO BE AWARDED IN SARAWAK TO UPGRADE INFRASTRUCTURE AND RURAL AREA. EXAMPLES ARE ELECTRICITY CONNECTIVITY, INTERNET CONNECTIVITY AND ROAD.

2. SCABLE BOOK ORDER CURRENTLY MORE THAN RM 500 MILLION

3. ABLE TO PARTICIPATE MORE OF PAN BORNEO AND OTHER SARAWAK PROJECT IN COMING FUTURE

4. CURRENT SHARE PRICE IS LOW AND ATTRACTIVE WITH MINIMAL DOWNSIDE BUT GOOD UPSIDE POTENTIAL



WE HAD WITNESS SCIB UPSIDE POTENTIAL. FROM RM 1.00 UNTIL RM 4.00

NOW SCABLE CURRENT SHARE PRICE IS RM 0.20, WHERE WILL BE THE UPSIDE POTENTIAL ? RM 1.00 ?

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Tuesday, September 29, 2020

BE SMART AND DOMINAN !!!! INVEST DOMINAN ON UNDERVALUED POSITION

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Looking for the next trend play in Bursa Malaysia? No need to look further, neither left or right, east or west. The trend that is in play and will continue for a while will be the furniture theme play. But not all furniture player are going to benefit from this Work From Home, only a certain player stand out to benefit more.

Hence, I would like to point out to the FURNITURE HUB of MALAYSIA, that is in MUAR, JOHOR. This is the place where all the popular and branded furniture maker gather together, where raw material, skill worker are centered in a location.

According to data, the furniture export from MUAR, JOHOR represent 50% of the whole Malaysia. That is a very commendable figure to say.

The current COVID-19 situation had created a new market - WORK FROM HOME. This new opportunity is currently having a big void to be filled up for most of the exporting furniture player in MUAR.

The EDGE - Local Furniture players get a boost from WORK FROM HOME POLICY from the US.


According to the report, furniture maker in MUAR stand to benefit from US 2 trillion (RM 8.3 trillion) stimulus cash hand out.



So, how are furniture player in MUAR performing in terms of share price? .


POHUAT - REBOUNDED HIGHER FROM THE SELL DOWN DURING LOCKDOWN

WEGMANS - REBOUNDED HIGHER FROM LOCKDOWN SELL OFF

LIIHEN - REBOUNDED HIGHER FROM LOCKDOWN SELL OFF

SWSCAP - REBOUNDED WITH GOOD UPTREND



WHEN MOST OF THE FURNITURE MAKER IN MUAR ARE HAVING THRIVING BUSINESS, HOW ABOUT THE SUPPLIER FOR FURNITURE MAKER ????

I WANT TO INTRODUCE TO YOU - DOMINAN 7169



LESS KNOWN TO MOST, BUT THIS WOOD PANEL / PLYWOOD SUPPLIER TO FURNITURE MAKER IN MUAR AND VIETNAM IS UNDERLOOKED

HOWEVER, THE POTENTIAL TO REBOUND BACK TO IT'S NORM SHOULD NOT BE FAR AWAY AS DOMINAN IS A GOOD FUNDAMENTAL COMPANY, PAY DIVIDEND FEW TIME EVERY YEAR, NTA RM 1.80 AND WELL MANAGED WITH GOOD OWNERS.

DOMINAN STAND TO BENEFIT FROM
1. STRONG ORDER FROM FURNITURE MAKER AT MUAR
2. BETTER PRICING IN WOOD MATERIAL
3. LOWER INTEREST RATE WILL BENEFIT THE OUTSTANDING LOAN TAKEN BY DOMINAN

CURRENT PRICE CHART WILL SEE DOMINAN IS READY TO BREAK OUT FROM THE LOW PRICE RANGE, CONSOLIDATION ALREADY MAX OUT AND READY TO GO UP

DOMINAN



DOMINAN PROMOTED IN TELEGRAM DURING 68 cents to 70 cents. CURRENT 72 cents. Looking at DOMINAN to reach RM 1.00



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