Comments on: APM Automotive Holdings Berhad

By: kampunginvestor

kampunginvestor — Fri, 29 May 2009 18:05:35 +0000

That’s why i say brother APM is a good call but need loads of patience. Long Term outlook is good and most importantly this company wont bring you to holland! lolx! ^^

By: larry

larry — Fri, 29 May 2009 06:30:52 +0000

APM 2009Q1 results just released yesterday. Revenue from Malaysia operations declined 15% from RM 204 million to RM 174 million, while revenue from overseas operation outside declined of 35% from RM30 million to RM19 million. The seat business in Indonesia was the most affected, declining of 48%. All operting units in Malaysia remain profitable. Q1 Net Profit came in at RM10.2 million compared to RM15.2 million in pcp. Net Cash was more or less flat at RM180 million. Commenting on its prospects, the directors said:

“Despite the current economic climate, domestic vehicle sales in the 1st Quarter had done reasonably well, declining 9.2% to 118,681 units from 130,774 units last year. With vehicle sales expected to improve with the introduction of new car models and new car incentives packages, the Group’s operations in Malaysia will benefit from the higher vehicle sales in the country. On the whole, the directors are of the view that market conditions will continue to be challenging. However, by remaining strongly focused to improve quality, efficiency and cost, the Group’s results for 2009 should be satisfactory.”

It looks like APM is weathering the downturn reasonably well.

By: kampunginvestor

kampunginvestor — Wed, 27 May 2009 08:05:09 +0000

No fear bro. This counter wont bring you to Holland! ^^

By: Jeff

Jeff — Tue, 21 Apr 2009 02:10:53 +0000

hmm, true… Though I’m not sure what is the benchmark for regional bourses, Bursa’s PE of nearly 30x seems to me to be quite high.. But it is a relatively simple stock as its profit is mainly hinged on market performance and thus it will be one of the first counters to surge when bear is nearly over.

By: larry

larry — Mon, 20 Apr 2009 03:48:57 +0000

Hi Jeff
You are most welcome! Your observation is spot on I believe, depending on your return target, should be able to achieve 12-15% per annum if patient enough. But stock picking is crucial I guess, as you do not want to be in companies whose management is not aligned with shareholder value. I feel Bursa is expensive although they are doing a good job under the circumstances in improving market depth and liquidity. Hopefully they will reap the benefits of higher market volume in the longer term. Resorts and Genting are OK in terms of value I guess, but I’m more concerned about the related party transactions issue.

By: Jeff

Jeff — Sun, 19 Apr 2009 17:51:46 +0000

Larry,

Thanks, this is another good sharing of thoughts.

I have experience with this kind of stock.. Stock price below NTA, steady div, profit with little growth but steady, good cashflow, etc…. All sounds decent. The only problem is that there is just no momentum to push up the stock price and it might remain undervalued for years. But after all they are in good bargains… Good for investor with long-term reaping target.

BTW, what is your view on several other giants like Bursa, and Resorts/Genting?

By: larry

larry — Wed, 15 Apr 2009 07:38:02 +0000

Hi mbge7clt, thanks glad u like it! I know what you mean exactly. I’m also baffled by it! In the case of Maybulk there is a 30 sen tax free dividend coming up and this is attractive for many people, especially those who just look at dividend yield when buying stocks. APM price hasn’t really moved but considering the recent low of RM1.35 it hasn’t done too badly. I’m not sure about Bursa though, it has always been expensive. Another counter worth mentioning is Mega First Corporation Berhad MFCB. Like APM it sits on a huge cash pile, has solid business and is actively buying back its own shares. But the share price has hardly moved in a big way.

By: mbge7clt

mbge7clt — Tue, 14 Apr 2009 12:49:03 +0000

hi,

great sharing on this counter. i also read the article and maybulk, would like to hear your opinion why is it that companies whereby the internal stakeholders are selling always go up while those whereby the internal stakeholder are accumulating normally dont move at all. look at bursa, i notice that newton has been selling this share but it’s price keep on moving up which really perplex me. any thoughts?

thanks

By: fark.my

fark.my — Mon, 13 Apr 2009 08:17:46 +0000

APM Automotive Holdings Berhad : Horizon.my…

It doesn’t grab the headlines, but APM is one of those companies that just goes about its business, makes money and pays dividends, year-in year-out….