For the whole month of May only once out of Top 10. T13 on 31st May.
Ace largest company by market cap. 15,000n shareholders.
Healthy order book around RM1.3B secured. More to announce by end August.
All the success factors are there for Vivocom to log in healthy quaterly profits.
When the numbers kick in the funds will swoop in, n b4 you know it, target price as called for by the various analysts ranging from 59c to 75c will be a reality not a distant goal.
Affin Investment Bank Head of Retail Research Dato' Dr Nasri Khan favours small cap construction stocks. His pick is Vivocom as emphasised in minutes 6.45 and 9.45
VIVOCOM INTL HOLDINGS BERHAD (formerly known as INSTACOM GROUP BERHAD) ("VIVOCOM" OR THE "COMPANY") - LETTER OF AWARD
The Board of Directors of Vivocom Intl Holdings Berhad (formerly known as Instacom Group Berhad) (“Vivocom” or “the Company”) is pleased to announce that its subsidiary companies,:-
1.) Vivocom Enterprise Sdn Bhd (“VESB”) had on 23 June 2016, received and accepted the Letter of Award (“LOA”) from Kiara 5 Development Sdn Bhd for the appointment as Turnkey Contractor for the construction of 1 block of 19 units low density apartment at Lot 13498, Jalan Jenjarum, PJU 6, Kampung Kayu Ara, Mukim Sungai Buloh, Daerah Petaling, Selangor Darul Ehsan The provisional contract amount is RM25,000,000 (Ringgit Malaysia Twenty Five Million). This project shall commence upon site possession and shall be completed within eighteen (18) months.
2.) Neata Aluminium (Malaysia) Sdn Bhd (“Neata”), had on 23 June 2016, received and accepted the Letter of Award (“LOA”) from Lim Hoo Seng Construction Sdn Bhd for the design, fabrication, supply, delivery and installation of aluminium and glazing works for a 41 storey of service apartment on Lot 256, Seksyen 63, Lorong Stonor, Kuala Lumpur. The contract amount is RM12,800,000 (Ringgit Malaysia Twelve Million and Eight Hundred Thousand Only). This project shall be completed within thirty-five (35) months from the date of commencement of the main contract works on 28 March 2016.
(Collectively known as the "Projects”)
The Projects are expected to contribute positively to the earnings and net assets of Vivocom for the duration of the Projects.
The risks associated with the Projects are mainly operational risks and risk of delay in completion of the Projects. Notwithstanding this, the management of Vivocom will strive to ensure full compliance to the operational procedures in the execution of the requirements of the Projects.
The Projects are in the ordinary course of business and are not subject to the approval of the shareholders of the Company or any other relevant government authorities in Malaysia.
None of the directors and/or major shareholders of Vivocom or persons connected to them have any interest, direct or indirect, in the above Projects.
- The Group has just secured another two contracts amounting to RM37.8 million, the latest in a number of “Rolling Thunder” project wins!
- Group’s order book now swells to above RM1.4 billion!
Vivocom Intl Holdings Berhad (“Vivocom”; stock code 0069) has just announced to Bursa Malaysia that the Group has secured another two separate contracts amounting to RM37.8 million which further enhances its already strong earnings and net assets to date.
Vivocom’s construction arm, Vivocom Enterprise Sdn Bhd, today received and accepted a Letter of Award (“LOA”) for a RM25 million construction project from Kiara 5 Development Sdn Bhd to be Turnkey Contractor for the construction of a block of 19 units low density apartment at Kampung Kayu Ara, Mukim Sungai Buloh, Daerah Petaling, Selangor Darul Ehsan.
Meanwhile, its manufacturing division spearheaded by Neata Aluminium (Malaysia) Sdn Bhd had separately received and accepted a LOA amounting to RM12.8 million from Lim Hoo Seng Construction Sdn Bhd for the design, fabrication, supply, delivery and installation of aluminium and glazing works for a 41-storey serviced apartment block located at Lot 256, Seksyen 63, Lorong Stonor, Kuala Lumpur.
These said contracts secured are the latest of its “Rolling Thunder” wins which has resulted in the Vivocom Group’s order book swelling to above RM1.4 billion, and coming on the heels of its sterling Q1 2016 results when it exceeded analysts’ expectations by a whopping 76%!
To recap, for Q1 2016, Vivocom’s quarterly revenue surged to RM141.54 million with profit before taxation soaring to RM33.29 million for the first three months of 2016. After accounting for taxation and minority interests, net profit came in at RM19.87 million, a 2,053 percent giant of a jump from the RM923,000 posted in the previous corresponding period.
This huge jump in revenue and profits was attributed to Vivocom’s construction division which posted PBT of RM30.01 million of the back of RM125.81 million in revenue.
Strong fundamentals yet to be reflected in Vivocom’s share price performance
Vivocom, which has been the “darling of the stock market” (previously) and “talk of the town” within the foreign and local investing communities, have seen its stock price weakening in recent weeks.
From an all high of 37 sen, the stock price slipped to 24 sen at last Tuesday’s close (before yesterday’s public holiday).
The overall sell down could very much be due to the general bearishness in the stock market given the detrimental news such as the MSCI rebalancing on Malaysia, the negativity surrounding the 1MDB saga and more importantly the extremely weak and vulnerable local Malaysian stock market, where both foreign and domestic investors are simply very nervous and will dump share for no apparent sound reasons.
For instance, in a hot market the value of shares transacted in the local KLCI would easily exceed RM2 billion, but the value transacted has been way below that level in recent weeks, sometimes even below RM500 million. The market is literally in hibernation.
The other possible reason could also be due to certain speculative investors who decided to cash out on their investments after the company’s announcement on its smashing 1st quarter results, the “sell on news” phenomena. To compound matters, anxiety amongst the investing community concerning “Brexit” or the possibility of the United Kingdom leaving the European Union could result in currency and economic uncertainties. Just a few days ago, legendary investor George Soros warned that a “Brexit” aftermath would be worse than the time he broke Bank of England”. (Interesting read here on Soros’ view on why “the Brexit crash will make all of you poorer – be warned”.)
All these negative developments had a bearing on Vivocom’s share price – just as they had on other stocks listed on Bursa Malaysia. However, what remains intact are Vivocom’s strong fundamentals.
Vivocom’s executive director Choo Seng Choon stated: “With the latest contract wins just announced, Vivocom has proven yet again its ability to secure projects, both large and small”.
“We shall continue to work very hard on securing more projects to deliver on our fundamentals performance, and we are very confident the investment community will give the Company due recognition in due course,” Choo added.
“As a matter of fact, we are now in the last stage of finalising another Head of Agreement for another project worth over RM600 million in Ipoh. The HOA will be announced in due course when completed and signed. The Company’s second quarterly results to be reported and announced in the coming weeks also look very promising and would be at least as strong as the first quarter just announced,” he further said.
Based on its annualised 1st quarter results, it’s worthwhile noting that Vivocom is currently only trading at less than 10 times price-earnings multiple whilst its peers with similar market capitalization are currently trading at price-earnings multiples ranging from 14 times to 17 times.
Meanwhile, it’s noteworthy that Vivocom shareholders base has jumped from 12,255 (on 19 February) to almost 15,000 today, a confirmation that interest in the company is still strong and growing. Obviously there are many investors out there who see tremendous value in Vivocom, indicating a high level of natural support for the share. Hence this explains the consistently high volume and liquidity on the counter of at least 1 billion shares turnover on average monthly for the past 8 months, a feat rarely seen in Malaysian stocks.
What is more, all 5 research houses covering Vivocom namely CIMB, MIDF, Mercury Securities, TE Research and SJ Securities continue to emphasis a “BUY ON VIVOCOM” – with target prices ranging from 59 sen to RM75 sen per share, signaling strong upside potential and capital appreciation of some 145% from the most conservative estimate for Vivocom’s fair value (which is MIDF’s at 59 sen).
That said, the recent price correction is a healthy phenomenon and represents an excellent opportunity for investors to buy as its price weakness has made the share relatively cheap compared to its peers and ride on its upward potential for the next 12 months – meaning, Vivocom could yet shine again!
In summary, based on its impressive 1st quarter results, its strong order book and the “buy calls” accorded to the company by the various research houses, the future of Vivocom remains bright.
Edn-Day Review & Analysis 24 June
VIVOCOM rebounded mildly after earlier round of weakness influenced by the Brexit results and settled half a sen higher at 24.5 sens.
Total volume M increased to 42.45 M shares.
Today was the third-time in three-days that prices failed in its attempt to slip below the 23.5 sen support level.
This could be evidence that the underlying strength is strong and the selling pressure has started to fizzle.
The daily QA finished in positive convergence and signaled that a trend-reversal is about to start.
May step down only mah. But also may not so what's the big deal.
Even if step down can still be engaged in other advisory capacity to ensure continuity. So what's the big deal.
Plus no great company is totally dependant on one person only. It's all a collective team effort. If depend solely on one person only, Vivocom will never be great.
Vivocom has a strong n solid management team in place n in the past few months has secured over RM1B worth of non CRCC projects which speaks volumes about it capacity to self sustain without being overly dependant on a single source for projects.
VIVOCOM closed 2 sen lower at 22.5 sen , slightly off from its intra-day low of 22.0 2 sen.
Today's volume of 66.22 M shares is the highest in five days.
This is indeed a clear indication that there were jittery traders and they have unwind today.
Violations of the 23.5 chart-support in some way prompted some edgy readers to exit market.
The big question confronting traders now is can price halt its decline and show some signs of stability after having now arrived at levels last seen in mid-February 2016?
The daily QA is still negative for the immediate term price trend.
We refer to the article appearing in The Edge on Monday, 27 June 2016, in particular to the sentences reproduced below :-
“….may see the early retirement of Dato’ Seri Dr. Yeoh Seong Mok.”
“It is not just an intention, he (Yeoh) was determined to go.”
In relation thereto, we wish to clarify that :-
the Board of Directors have not to date received any official letter of resignation nor unofficial notification from Dato’ Seri Dr. Yeoh Seong Mok on his purported intention to resign or retire;
notwithstanding his age which is closer to retirement, his departure, if any, will not affect the direction and operations of Vivocom Intl Holdings Berhad as the Group has put in place a strong and highly experienced management team which would ensure the smooth running of the Group’s operations; and
In addition, the Group, as part of our ongoing business operations, has a viable, dynamic and on-going succession and recruitment plans to replace any vacancies that may arise from time to time, to ensure minimal or no disruption to our business operations.
We will make the appropriate timely announcement to Bursa Malaysia Security Berhad should there be any material development on the postion of Dato’ Seri Dr. Yeoh Seong Mok In the future.
VIVOCOM made recovery-highs at 25.5 sens this morning and settled unchanged at 24.5 from previously.
Overall volume was moderately high at 37.59 M shares.
Volume distribution was in favor of the buyers that took 56.6% of trades from sellers.
Overall setting is expected to stay constructive as prices moved into a recovery phase.
The 25.0-26.0 levels are expected to be vaulted in the coming sessions.
Penetration of this resistance would mark the continuation of the upward cycle.
The daily Quantitative Algorithm signals are positive when it entered into a bullish cross-over divergence at close.
This signal is considered confirm if the cross-over remains at close today.
VIVOCOM made fresh recovery-highs at 25.5 sens and held steady to finally close the day at 24.0, off half a sen from previously.
Buying-interest improved as players reentered the market in a more aggressive fashion and boosted daily volume to 70.13 M shares.
Bulk of today's trades were done at the 24.5 -25.0 levels where buyers took the offensive by taking sellers on 50.20% of the trades.
The current chart pattern based on candlesticks is constructive for the immediate to medium term.
Yesterdays large positive candle followed by today's price consolidation at the upper-end of the candle indicates that the underlying momentum of VIVOCOM has turned bullish.
At this juncture, savvy traders would jump in to buy only after looking for solid evidence that this recovery-rally would be sustainable.
Many would prefer to buy-on-strength and sell higher.
One of the solid confirmation they would seek is for prices to move successfully above the immediate price resistance levels of 25.0-26.0.
The daily Quantitative Algorithm signal ended the day neutral and has yet to trigger the screaming-buy.
We would have to wait another day to get confirmation.
Just share an article, it's good news for Vivo...
According to Latest edition of Chinese Investment Magazine 资汇 (THE BUSY WEEKLY)
vol:384 4/7/2016 - 10/7/2016
In The Top 50 Stocks Of Lower P.E Ratio Ranking & Suggest Buy-In Listing
Vivo ranks No. 7 which it's P.E. ratio currently is only just 6.12 which
means Vivo can get back all of it's investment money in within 6 years only!
Trade at your own risk!
BREAKING-NEWS: THE QA SIGNALS ARE ON BUY-MODE AT CLOSE TODAY.
VIVOCOM edged higher in moderately active trading after the long holiday break and closed the day with gains of 1 sen at 24.0 sens.
A total of 22.95 M shares changed hands with buyers taking the upper hand by booking sellers on 55 % of the total trades.
Today was the fourth trading-day that prices managed to hold above the 23.0 sen support level.
Generally, traders are encouraged by this positive development and took advantage of setting to take fresh buying positions in anticipation of an upward price recovery-move in the near-term.
Other are looking to a successful move above the 25.0 26 sens levels before they are comfortable to enter into and take a buying position.
Technically, the Quantitative Algorithm signals have turned bullish at close and indicated a cycle or trend change.
This was the first time in seven weeks that this indicator has turned into a buy-mode.
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