Investment Analysis of Commercial Banks @ PENANG – Investalks 303

Duration: Two days

Date: 3-4 Mar 2018, 9am to 5pm

This course aims to provide participants with a thorough understanding of how to:
1. Perform analysis on financial statement of commercial banks.
2. Estimate fair value for commercial banks.
The reference reporting framework used will be IFRS.

Course outline: https://drive.google.com/open?id=151Ti_TfYDj6S4fQyH-W8b4NhOK3NXQK8

Course Fee:
1. Investalks Member: RM1,088
2. Non-member: RM1,138

Registration:

  1. Bank in
    a. Bank: Maybank
    b. Account No.: 514383562062
    c. Account Name: Ivestalks Enterprise
  2. Send the payment receipt to investalksacademy@gmail.com or Whatsapp to +6016-773 9114

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Moving to Facebook Group

Moving forward, I will gradually moving to my Facebook Group in the future – https://www.facebook.com/groups/lcchong/

This blog will cease operation in few months.

HAIO Updates – 1 Feb 2018

Join my FB group: https://www.facebook.com/groups/lcchong for more collaboration.

#HAIO Updates – 1 Feb 2018

Analysis File – HAIO-FY18-Q2

6MFY17 results were very impressive where YoY growth rate of revenue and net profit was 39% and 53% respectively.

As Chinese will be celebrating CNY festival very soon, I expect #HAIO will enjoy very fruitful FY18 closing. As their quarterly report already explained their performance, I have no further comment.

CPI Malaysia rose by 3.5 per cent to 120.9 in Dec 2017, but consumer spending on healthcare products is not declining at all.

In my opinion, at 5.38, valuation of #HAIO is not so attractive because it is almost fully valued.

  1. Baseline scenario – 4.5 – 5.5
  2. Good scenario – 4.8 – 6.0
  3. Bad scenario – 4.1 – 5.0 (unlikely to happen)
  4. Ugly scenario – 3.9 – 4.5 (unlikely to happen)

Its dividend yield is around 3.1%.

As of now, I won’t accumulate #HAIO. I will consider to sell some of the shares to harvest good profits.

At the time of writing, I owned shares of #HAIO.

#KLSE #FBMKLCI #FundamentalAnalysis

CARLSBG Updates – 31 Jan 2018

Analysis file – CARLSBG-FY17-Q3

9MFY17 results were quite impressive even if so many people complaint “no money”. YoY growth rate of revenue and net profit was 7.7% and 8.4% respectively.

As Q4 2017 and Q1 2018 are festival seasons, I expect consumption of alcoholic beverages to be relatively higher. Thus, I expect #CARLSBG will enjoy very fruitful FY17 closing.

In my opinion, at 15.94, valuation of CARLSBG is fully valued where I believe its fair value range from 14.7 to 16.2. Its dividend yield is around 4.8%.

As of now, I won’t accumulate #CARLSBG, but to hold it for extremely high dividend yield as my average cost for #CARLSBG is extremely low.

At the time of writing, I owned shares of #CARLSBG.

#KLSE#FBMKLCI#FundamentalAnalysis

Join my FB group: https://www.facebook.com/groups/lcchong for more collaboration.

WELLCAL Updates – 29 Jan 2018

Analysis file – WELLCAL-FY17-Q4.xlsx

For growth drivers and challenges, you can read Management Discussion and Analysis in Annual Report 2017. I agree with the points made in WELLCAL’s MD&A, so I don’t have additional opinion here.

As at 27 Jan 2018, WELLCAL’s close price was RM1.49. I believe that WELLCAL is still slightly undervalued based on the following scenarios.

  1. Baseline scenario – RM1.65 – 1.84
  2. Good scenario – RM1.74 – 2.01
  3. Bad scenario – RM1.60 – 1.74
  4. Ugly scenario – RM1.48 – 1.64

I will continue to accumulate WELLCAL.

At the time of writing, I owned shares of WELLCAL.

Join my FB group: https://www.facebook.com/groups/lcchong for more collaboration.

CIMB and AMMB – Recent Development

AmBank Group to cut jobs via MSS (9 Jan 2018)

AMMB cost / income was 57.40%, which the third highest in Malaysia. The next one – AFFIN or BIMB ? Both having 1st and 2nd highest cost / income.

Compare to other banks, based on my analysis, I think #AMMB is one of poor run banks in Malaysia.

Objectively speaking, this is more towards rationalisation, rather than “bad economy”.

CIMB to sell asset management unit stakes to Principal for RM950m gain (12 Jan 2018)

CIMB: “This exercise will also see our common equity Tier 1 ratio improve by approximately 18 basis points,”

This exercise actually makes sense because CET 1 Capital Ratio of CIMB is probably the lowest among public listed commercial banks in Malaysia. They really have to improve their regulatory capital.

Also, CIMB’s Tangible Common Equity over RWA is also the lowest (around 7%). For you to gauge the severity, the same ratio for BIMB is around 10.7%, and for other banks, more than 12%.

This is an exercise to improve regulatory capital.

 

Investalks 302 – Advanced Financial Statement Analysis @ Penang

In this workshop, I will be teaching sensitive areas and creative accounting in financial statements. Example of sensitive areas include:Revenue Recognition, Business Combination and Equity Investment, Intangible Assets and Goodwill, Impairment, Financial Instruments, Derivatives and Hedging, Deferred Taxation and Operating Leases.

We will also discuss cases such as “Increase in bank debt in the balance sheet without an increase in finance costs”.

Overview

This course aims to provide participants with a thorough understanding of how to perform advanced analysis on financial statement. This course brings together the key elements of financial statement analysis to help participants develop their skills in this area and enable them to ask the right questions to really get under the skin and see the real risks facing businesses and investors in these challenging times. The reference reporting framework used will be IFRS.

During the course, participants also gain an insight into how to interpret warning signals in financial statement and identify many of the creative accounting techniques used by companies.

Duration: Two days

Date: 6-7 Jan 2018, 9am to 5pm

Course Fee:

  1. Investalks Student: RM838.00
  2. Public: RM888.00

Registration:

  1. Bank in
    • Bank: Maybank
    • Account No.: 514383562062
    • Account Name: Ivestalks Enterprise
  2. Send the payment receipt to investalksacademy@gmail.com or Whatsapp to +6016-773 9114

Location: Kalyx Boardroom, Icon City, Penang https://goo.gl/maps/Cz9wZGfayZU2

Program Level

Program Level: Advanced

Prerequisites: As an “advanced” course, a reasonable grounding in the fundamental concepts of financial accounting and some experience of having carried out or reviewed financial analysis will be assumed. Participants are expected to understand concepts such how the key financial statements (Profit and Loss, Balance Sheet and Cash Flow Statement) link together, how they are structured, how to analyse financial statements using simple ratios and accounting principles such as accruals and provisions.

This training assumes a sound grasp of fundamental finance concepts and analysis. Although the analysis will be structured around key aspects such as “Liquidity” and “Gearing”, these principles are assumed to be familiar to participants, thereby enabling this session to focus on analysis and interpretation rather than definition and calculation.

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