01 September 2014

Dukang FY14 Result Summary - September 2014

Dukang released its unaudited fully year 2014 report. The sales dropped by 40% to RMB 1,451 Million from RMB 2,406 Million a year ago. Net Profit dropped by 89% to RMB 44 Million from RMB 390 Million a year ago. It is mainly due to the decrease in gross profit margin to 36% from 41% previous year as well as the decrease in revenue. The company highlighted that decrease in revenue from both Luoyang Dukang and Siwu operations, as a result of China’s current austerity measures on luxury gifts and spending

Balance Sheet wise, Dukang registered an increase of almost 100% in inventory level to RMB 689 Million from RMB 343 Million, mainly due to the bulk purchase of good quality grain alcohol at a competitive price. The Cash level dropped to RMB 392 Million from RMB 758 Million a year ago. Nonetheless, the group maintain a healthy debt level by having total liabilities to total asset ratio of around 21%. The total equity to shareholders increased by about 2% RMB 1,999 Million. 

29 August 2014

Straco - My View of Its Acquisition / Lease of Singapore Flyer - August 2014

I had been to Singapore flyer once, and it was during 1-for-1 promotion which I bought it from Groupon website if I still remember correctly. It has one of the most beautiful scene in Singapore, and if possible you can try to ride on it during sunset (so you could enjoy both day and night scene for just 1 ride).The nearest MRT station is Promenade station (Circle Line). You may still need to walk down for 5 - 10 minutes to reach there.

Some of the information of Singapore Flyer:


The Singapore Flyer, which cost $240 million to build and has 28 air-conditioned capsules each able to accommodate 28 passengers, was opened in March 2008. It was the world's tallest Ferris wheel at 165m until Las Vegas' High Roller (167.6m) opened in March this year.

Fundamental Analysis - PB Ratio, PE Ratio and Dividend Yield

Yesterday there was a property information / education show in TV 8 (in Singapore) to introduce the commercial property investment. In the show, the guests gave some examples of how to define good investment, such as the rental yield was 4-5% for commercial buildings as compared to 2-3% for private residential buildings, and potential capital gain is higher for commercial buildings as compared to residential buildings. At the same time, the guests suggested to use "leveraging" method for property investment. For example, if you have S$1,000,000 in bank account, you could borrow up to 80% of the total property value. You could take up to 80% loan or S$1.2 million for S$1.5 million investment and S$300K cash deposit plus S$100K all relevant charges. If you are financially sound, you can take up to 2 commercial buildings with S$1.5 million each. Of course, you have to take into consideration of the underlying risk involved, and that is why even though the rental yield is higher for commercial buildings, it also requires you to have stronger holding power so that you could afford to pay for the bank loan while waiting for new tenants to rent it from you.

In shares investment, the so called fundamentalists will refer to "Relative" comparison methods to determine whether this counter is trading cheaper or more attractive to other counters / companies in same industries. However, do note that this is not the only way for picking the right counter. You still need to do more homework in order you can be more confident in your company selection.

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