Tek Seng's Shining Solar Business

Tek Seng's Shining

Solar Business

Every now and then, there will be a "Seng" roaring back into the spotlight on Bursa Malaysia. It used to be cash-rich & asset-rich Keck Seng Holdings Berhad and biscuit maker Hup Seng Industries Berhad.

Both these two companies hogged the limelight for long periods. I should know because Hup Seng was my maiden post while Keck Seng remained one of my favourites having seen it being written from time to time.

It was then sometimes back that one "Seng" shot back suddenly when the two main Sengs were going through a period of quietness.

If you remember, Tek Seng Holdings Berhad was first featured in my blog : Every "Seng" has its day on Aug 15, 2014. Subsequently there were features of Tek Seng now and then. The reasons were Tek Seng at that time was gaining lots of attention due to its involvement in the solar business.

At that time, the Taiwanese giant solar company Solartech Energy Corp. (SEC) was taking up an equity interest in a joint-company called TS Solartech Sdn Bhd with Tek Seng.

Investors reacted positively and swiftly to this corporate exercise and Tek Seng's shares were chased up accompanied by high volumes for weeks and months. Also in the pipeline was Tek Seng's bonus warrant shares exercise where a warrant was given for every two shares.

Such frenzied buying pushed Tek Seng's share price to peak at 93 sen on Jan, 9 for the ex-date to qualify for the warrant shares. On Feb 10,  Tek Seng warrant debuted and touched a high of 48 sen.

But the first two quarters of not so impressive results saw the declining interest in both mother and warrant shares. On Aug 25, Tek Seng hit a low of 35.5 sen while its warrants touched 15 sen on Aug 16.

At that time, many investors including yours truly must be regretting for not taking profits before the ex-date of the warrants shares.

However towards the beginning of Oct, buying interest return to Tek Seng. Investors must have sniffed something judging by the continuous buying that sent its share price up steadily culminating on the first week of Nov when it announced its 3rd Qtr results.

What caught the investors's eyes was the turn around of its solar business which has become the major contributors to the group's revenue and profit as well! The Solar division contributed 56.1% towards the current quarter and profit before tax by RM9.2 million compared to RM7.5 million.

Strangely again, Tek Seng's other four divisions, Sheeting, PP Non-Woven, PVC Leather & Others also continue to record decreasing in profit before tax. In the past, the Sheeting Division used to be the major contributor when it comes to profit before tax.

So is finally Tek Seng's solar division going to see brighter shining light at the end of the tunnel in months to come? It looks that way judging to some reports when all its eight production lines are up and running, it is going to sell even more of its products.

Currently Tek Seng has been ramping up its production lines. By year end, there should be four lines running. There are plans to install another four more lines although that would take some times.

Between now and that time, will the market be flooded with new supplies as there seem to be some aggressive expansion by a few other players in the market globally.

Tek Seng investors would surely hope not. When there is over supply, prices not only drop, sometimes it will drop below the production cost as well. That is the reason many times an big glut of supplies exceeded market demand for long periods, some smallish companies could not withstand the competition anymore and hence, folded up or over taken by some stronger and larger competitors.

Yours truly is still keeping the 15,000 shares of Tek Seng. Also yours truly has been rewarded with 7,500 shares of warrant since the end of last year. Also already in my pockets are dividends totally RM2025.00 for all those years of keeping the shares. Any surge in its mother share will correspond with a similar rise in its warrant shares.

What a sweet double delight at the moment for yours truly to have a bit of business in solar business!!

A Belated Sincere Apology

to all my Hindu friends

Since I started this blog, I have made it a point to time my posting of blog nicely to ensure that each time a festival season is due, there would be a wishing from yours truly.

But for the first time, I did forget to wish my Hindu friends A Happy Deepavali wishing prior to my blogs posted before Deepavali day.

I guess as one gets older or "senior", one tends to lose memory easily. I can safely testify on this because I have been experiencing forgetfulness more often compared to my days before surpassing the golden age of 50s.

So I humbly apologize to all my Hindu friends, readers, followers and supporters for my belated wish.

always win on November 19, 2015

in an email asked :

What stocks are you currently holding. Could I also know your cost?

Dear always win,

Surely you have a marvellous name, always win or in Bahasa, Selalu Menang. Just joking, but I really like this name. This type of name is indeed seriously needed as a good omen when it comes to investing.

Jokes aside, I still have a number of  counters left or 'unlisted" on my blog. When I say "unlisted', I mean I have yet to share it with all my readers. Of course there are very few losing counters as well. The lucky thing is that these very few losing counters were bought at very small quantities only.

From time to time, I would be "listing" the counters in my future blogs.