Bursa Malaysia - 3247
Description
|
Value
|
Criteria
|
Point
|
Price
to Tangible Book Ratio
|
0.50*
|
<
1
|
5/5
|
Stock
Valuation
|
CAPM
=> 2.83%
Return
(2008-2014) =>22.66 %
Undervalue by 19.83%
|
CAPM
< Return
|
5/5
|
Return
on Asset
|
2.94*
|
>
0
|
4/5
|
Return
on Common Equity
|
4.17*
|
>
0
|
4/5
|
Quick
Ratio
|
3.48*
|
>1
|
5/5
|
Long
term Debt / Total Capital
|
-*
|
<50%
|
5/5
|
Continue
Dividend over Past 10 Years / Since Inception
|
Yes
|
Yes
|
2/2
|
Cash
From Operation
|
Positive
> 5 years
|
Positive
|
5/5
|
Total Point
|
|
|
35/37
|
Note:
By scoring 35/37 (94.59%),
we will look into the annual report and the latest quarterly report of GUH
before making the decision to buy the stock.
Company
Profile
GUH diversified into
too many segments, this company is not focus and specialised in one major
segments. The segments which GUH into are as followed:
- Printed Circuit Board (31.08% of 2014 profit)
- Unallocated Non-operating Segment (30.10%
of 2014 profit)
- Property Development (29.93% of 2014
profit)
- Water and Wastewater Treatment (6.38% of
2014 profit)
- Oil Palm Plantation (1.66% of 2014
profit)
- Electrical Appliances (0.86% of 2014
profit)
1)
Printed
Circuit Board
GUH has two subsidiaries GUH Circuit
Industry (PG) Sdn. Bhd and GUH Circuit Industry (Suzhou) Co. Ltd. The printed
circuit board industry is competitive, GUH had to reduce the selling price of
the printed circuit board to be competitive in the industry. Despite reduce
selling price GUH manage to increase the sales volume and the profit after tax.
GUH had started to print double layers printed circuit board in Malaysia plant.
These will attract more Malaysia customer as printing the circuit board (small
volume prototype) might still cheaper when doing in Malaysia instead of sending
to China.
2)
Unallocated
Non-operating Segment
I believe this segment is the power
plant in Cambodia which GUH owning 20% of the Cambodia Utilities Pte. Ltd. The
concession expired in May 2015 and there is no further extension on the
concession. These means GUH will lost the profit from these segment which is
around 30% of 2014 profit.
3)
Property
Development
GUH has land in Seremban which allocated
adjacent to Seremban / Labu interchange of North South Highway. Besides that it
also owned 46 acres freehold land in Simpang Ampat, Pulau Pinang.
On September 2015, GUH had sign a Sale
and Purchase agreement with Leader HoldingSdn Bhd (a private company own by the
major shareholder company) in Seberang Perai Selatan, Pulau Pinang.
4)
Water
and Wastewater Treatment
In 31 Dicember 2014, Teknoserv
Engineering Sdn Bhd, subsidiary of GUH had secured RM 74.5 million contract
which cover water and sewage plant in Malaysia. The management is planning to
expand this division to South East Asia.
5)
Oil
Palm Plantation
This year GUH is expecting to have more
output from this division as the oil palm plant in 2006 would have reached it
full maturity. However the declining of CPO price recently might effect the
revenue of GUH on these division.
6)
Electrical
Appliances
These division mainly focus on in house
light fittings. However there are too many competitors in for light fitting
oversea (Philips, Osram and China brands) and locally as well (Davis, SJ lite).
As an electrical engineer myself which designing the
electrical system for buildings in Malaysia, I personally never heard before
light fitting from GUH maybe their marketing is not as good as other.
PROS:
|
- Malaysia printed circuit board
plant in Malaysia is now able to print two layer printed circuit board.
- Many electronic appliances now
days (computer, hand phone, LED, etc) is using printed circuit board.
- The land in Pulau Pinang is a
prime piece of land.
- More palm oil trees reach maturity
this year.
|
CONS:
|
- GUH
had diversified into too many segment.
- Printed circuit board industry is
competitive, GUH force to reduce the selling price of the printed circuit
board.
- Combodia Utilities Pte Ltd concession
expired in May 2015. These concession make up of GUH 30% profit for 2014.
- Declining CPO price recently might affect
the revenue of GUH.
- GUH did not push hard on their light
fitting.
|
|
Director
of the company
GUH is owned by the Tan
Sri Dato’ Seri H’ng Bok San and his family member. Tan Sri H’ng is one of the
founder of GUH. He is an successful entrepreneur in Electrical and Electronic
industries. He sit on board of Sarawak cable and own a private company, Leader
Universal Sdn Bhd.
PROS:
|
- Tan Sri H’ng is the founder of GUH
and GUH is the only public listed company his family owned hence the H’ng
family will do their best for the company.
|
Financial
Statement
Based on the unaudited
report for financial ending 30-06-2015, GUH does not make any loan. Besides
that, GUH have also increase it cash and cash equivalent from RM 132,474,000
(December 2014) to RM 136,690,000 in June 2015. Next quarter ending 30-9-2015
might see a drop in revenue due to the end of the power concession in Cambodia.
Base on 2014 annual
report, 44.63 % of account receivable is in Renminbi and 29.39% of account
receivable is in US dollar. With the weakening of Malaysia Ringgit with
Renminbi and USD recently, these might give a increase in revenue for GUH.
|
PROS:
|
- GUH does not have any borrowing
and have large amount of cash.
- Have 44.63% of account receivable
in renminbi and 29.39% in US Dollar, these might increase the revenue of GUH
as the declining of Malaysian Ringgit recently.
|
CONS:
|
- Drop
in revenue from unallocated non-operating segment might be seen in the next
quarter.
|