How Do I Choose A Stock To Buy?

A reader asked me how do I filter the stocks to buy. It's not easy to answer.

To make it short, I don't have a systematic way when it comes to selecting a company for investment. 

I'm not sure whether there is any established or better way to select or filter from a list of close to one thousand listed companies.

Basically, I have done it in many ways and I'll briefly discuss about them here.

First, I'll start with how I come to know a stock.

Screen through every single companies painstakingly

This was the method I used when I first joined the stock market back in year 2005. At that time, internet information was scarce. 

There was a thick book like a "Yellow Pages", which contained the information of all the listed companies in KLSE such as the business nature, historical revenue/profit, financial ratios such as EPS, ROE, PE ratio, debt/equity, as well as historical price chart.

I can't remember the name of this white & green colour book now as I have lost it many years ago.

Before I bought my first shares, I read a few investment books and I decided to follow their suggestion by looking at the fundamentals of the companies. So I made a stock selection criteria of ROE >15%, EPS growth >15% for at least 3 years & PE <10.

With these criteria, I screened through every companies in that thick book one by one. At last I came out with a few companies that matched the criteria. I still remember that the first 2 stocks I bought were Mahsing & WCT, and I made a profit from them.

Anyway, that kind of book is not published anymore due to the abundance of information which can be easily obtained on the internet.

Use KLSE Screener

Many years ago I came across this tool. I'm sure that most readers know what is it all about. You just need to key in your selection criteria (PE, ROE, DY, EPS etc) and the software will filter for you.

This is very easy and fast, and you can do it on your computer or smartphones. However, I seldom use it and don't really use it to select stocks since I started this blog.

From articles and news

Basically I do not actively look for a stock to buy, as investing in stock market is not a big part in my life, yet. I am quite passive.

I don't read business news and watch the stock market everyday. I do it sporadically when the interest comes and when I have the time.

You know, there are many articles that promote a stock in investment forum such as i3investor, some are very good and some are not. 

When a company secures a contract, reports good profit, ventures into new business or encounters headwinds, the news will certainly appear on online news portal such as The Star, The Edge and for Chinese, Sin Chew & Nan Yang. 

If the headlines of an article or news catch my attention, I will read them and sometimes it will lead me to study the company and then invest in it.

Analyst reports

I have trading accounts with Public Investment Bank & Hong Leong Investment Bank. However, I do not login to view all the reports because I only login when I plan to trade.

I read those analyst reports from i3investor, thanks to all the people that share them there. 

Analyst reports are a very important and useful tool for me. There are many information that retail investors like us have no access into. So, we need to depend on professional analysts who attend the company's AGM, investor briefing session or interview the management.

Regarding the target price derived by analysts, just take it as a reference and come out with your own target price. 

Of course different people have different opinion, and no one can predict the future with 100% accuracy. For Bumi Armada as example, someone gives it a target price of 10sen, while some value it at 56sen. That's a huge difference.

Now that Armada is at 26sen, who do you want to follow?

Quarterly Financial Reports

A listed company must release financial report every 3 months, we can get a lot of information from it.

Besides the revenue & profit, we can have a glimpse at its latest balance sheet & cash flow. The management will also explain the performance of the quarterly results and give a prospect of its business.

When a company has a good financial quarter, sometimes it catches my attention to further study it, IF I happen to bump into it as I only read 10-20 of those quarterly reports every 3 months.

I think this is a very common way for me to identify a stock to buy.

Before 2013, I only looked at the revenue and profit, EPS, ROE & PE ratio while making a decision.

After that, I include the balance sheet and cash flow, although not in a very detail fashion. I don't have accounting background, and have no one to ask except Mr Google when I have doubts.

I don't read annual reports unless from my invested companies or companies I plan to study. 

There is another way that can help me to find a good stock which I haven't use yet, which is subscribing to fundamental-based "Sifus" or other experienced investors.

I know that it might be a very good way to earn quick bucks from doing this. Many newbies and speculators pay the fee, and will surely buy when a stock is recommended as "buy call". This might push up the share price and quick profit can be made just like that.

Subscribing to such service can increase my chance of catching a stock with good potential, as I mention earlier that I'm quite passive in stock market and can't screen through all those listed companies and read all the announcement by myself.

At the moment, I still haven't join such groups. I'm still all alone.

How do I filter those stocks to decide whether to invest in them or not?

There are no strict rules now like I used to have in the past. Last time I set criteria for EPS growth, PE ratio, ROE, D/E ratio, DY etc. I usually don't go deeper into ROIC, FCF, PEG ratio & EV as I'm not a true value investor.

Let me show a few real examples of how I bought a stock in the past, if I still remember them correctly.

Latitude Tree

I first noticed Latitude after it released a very good quarterly results in Nov 2013. Then I studied its previous quarterly reports, annual reports and company website. I checked its previous announcement from Bursa Malaysia website. There was no analyst cover and not many news on this company. I found out from Bursa announcement that it was in the process of acquiring the remaining shares of its very profitable Vietnam operation. I projected the future earning and it's a no-brainer. 

Inari

If my memory serves me right, I first knew about Inari from a news article in Jun 2013. At that time, Inari was still a small little-known company and had proposed to acquire much bigger Amertron of the Philippines. It certainly caught my attention and the same process started. I checked its previous quarterly & annual reports, previous Bursa announcement, searched for online news and visited the company website. 

I remember that before I bought Inari shares at around 70sen (22sen now after adjustment), its share price has just rallied from 30-40sen to 70sen in a short period of time. Most investors commented that since it had already gone up 100%, it was very risky to buy at that time. I bought it anyway. Sometimes we have to ignore the noise of forummers and believe in our own judgement. Inari proves to be a big success for me. 

KESM

I came across an article or news shared by someone in i3investor about KESM in Jan 2016. It looked good to me and I decided to study it further. I saw that there was significant jump in its latest 2 quarters and by simple forward PE estimation, it was deemed undervalued for me. At that time its share price was falling from RM6 and I got it at RM4.80 and then around RM3.90 when it dropped further, with average price of RM4.42. 

It's lucky for me that its financial performance were good and share price kept increasing to over RM22. I sold some at RM20 and the rest at only RM8+. 

Geshen

I can't remember exactly how I came to know this company, which was a very cold and unknown company. From my record, I bought its shares on Mac 2015. I think may be from its previous quarterly result announcement in Feb 2015 which showed a significant jump in its net profit. It's not a very exciting result but I found out that it has just disposed its two loss-making subsidiaries and planned to acquire a growing profit-making peer. I felt that it would start a new page of growth and bought its shares. It was a great investment for me.

YOCB

This was just a coincidence. I was studying a company with a name of Yokohama in Aug 2013. When I searched for it in Bursa website, I saw another company alongside it with a strange name of "YOCB" which attracted my attention. That's how I started to study this company out of curiosity. I bought it because of its low PE ratio and good dividend. It was not a bad investment for me though I might have sold it too early.

Tambun

This is easy. I bought my first property from Tambun Indah and I certainly knew it well. As I was more focused in property investment at that time between 2008 and 2013, I knew a lot of other property companies and their projects.

At that time Tambun bought a vast landbank cheaply at Bandar Tasek Mutiara, which is located at Seberang Perai Selatan of Penang. We know that the nearby Batu Kawan is the next big thing. New projects were launched aggressively and each of them was rapidly sold out. So, it's also a no-brainer during such a property boom. 

Huayang 

Not every property stocks I bought at that time made money. Of all my completed buy-sell transaction up to today, the largest loss was Huayang, followed by Tropicana, both are property stocks. Huayang needs no introduction to investors at that time. Its revenue & profit was growing steadily, gave away mouth-watering dividends and multiple bonus issues. 

I felt like I missed the boat and always dreamed of owning its shares. Finally I became its shareholder in Sep 2014 at RM2.32, the price level which later proved to be at the peak. Even though subsequent quarterly results were good even with EPS of 11sen for 5 consecutive quarters, its share price just didn't go up but continued to drop instead. If we give a PE of 10x the share price should be at least RM4. Finally I cut loss at RM1.83 after 1 year and 4 months. Property was in the negative trend and we could not beat the trend.

PPHB

I found out this stock after it released its FY19Q1 results in May19. The result was nothing spectacular, just that the market gave it a low PE of around 5x. After studying it like usual, there seemed to be slow growth in this company and I believed that its products have more demand nowadays. I bought in May19 and only in the end of 2019, the stocks price started to jump.

I would say that most of the time I find a company to invest through its quarterly financial report, while PE ratio and growth prospect are the main things I look at to decide whether to invest in it, although the debt ratio & simple cash flow still play a part.

So, how should you filter or select a company to invest in? The answer is read more, and do your own homework.

Property: Huayang, Tambun, Matrix

Most property stocks in Bursa Malaysia reversed their uptrend since Oct14.

Property stocks have been falling for one and half years now and I still do not see any encouraging signs of recovery.

Many property developers delay their new launches and registered poorer sales in 2015.

However, there are some who manage to take advantage of lower supply in the market to rake in more sales in 2015.

These companies are mostly those who serve a niche market with their exceptional branding or strategic location.

As I have less time for blogging, I will briefly review the quarterly financial results of those property stocks I have.

Currently I have 2 property stocks in my portfolio (excluding Scientex) after selling all Huayang shares in Jan16.

HUAYANG

Huayang's FY16Q3's financial result is good as expected.

It posted a PATAMI of RM30.2mil, with cumulative 9-month PATAMI of RM88.7mil which is 10% higher than FY15's corresponding period.

When I bought Huayang's shares in Sep14, even though I was aware of property market slowdown, I predicted that Huayang can post strong financial results for at least FY15 & FY16, and give at least 13sen dividend for 2 years.

This is actually not too hard to predict base on its previous new sales trend and unbilled sales.

If new sales manage to beat market expectation in FY15 & FY16, then the results could be even better.

Now we are at the end of Huayang's FY16 (which ends on Mac16), financial results and dividends are good as expected but there is no surprise in new sales.

EPS average about 11sen a quarter and what should be its fair value base on PE ratio?

Anyway, I failed to predict the PE ratio market would like give it.

This shows that PE ratio is nothing if market sentiment is poor in the sector.

New sales so far after 9MFY16 stands at RM255mil, which is unlikely to reach RM400mil in the whole year of FY16. Huayang achieves new sales of RM460mil for FY15.

So unbilled sales drop from RM733mil a year ago to RM530mil now.

It's not hard to predict that Huayang's FY17 will be poorer.

I have sold all my shares in Huayang at a loss of 13.3%. However, it does not mean that I don't like Huayang or it is a poor company. It's just part of portfolio management.

For FY16, Huayang should be able to give the same 13sen dividends like previous FY. This is a good 7.1% yield at current share price of RM1.82.

TAMBUN

Tambun posted a good FY15Q4 result but a fair value gain on investment property of RM6.67mil was included in the PBT.

Even though revenue drops 20% for FY15 compared to FY14, PATAMI manage to stay about the same at slightly more than RM100mil..

Just like Huayang, Tambun's new sales drop from RM429mil in FY14 to RM263mil in FY15. Unbilled sales drop from RM427mil to RM324mil in the same period of time.

However, I think this does not reflect the true sales status of Tambun as it was affected negatively by delay in development approval.

New project Raintree Park 2 contributed RM55mil new sales in Dec15, while Avenue Garden is still yet to be counted in.

I think these 2 projects (combined GDV RM300mil) should be able to give at least RM200mil of new sales to Tambun in FY15 if there is no delay.

Pearl City Mall, even though only a small 2-storey mall, will open to public in 2 weeks time. 

Besides, Jit Sin SPS branch should be able to start student intake for year 2017, and the plan to set up a private hospital in Pearl City is still on-going.

For 2016, new sales might not be that good but Tambun should not have a problem to surpass FY15's figure.

It should give around 9 sen dividend for FY15, which means a dividend yield of 6.8% at current share price of RM1.33.

MATRIX

Despite soft property market, Matrix still manage to sell more properties in 2015 which I think is rare in the sector.

Matrix bags a record-breaking RM805mil new sales in FY15 compared to RM630mil in FY14. Thus, unbilled sales also rise to RM633mil from RM429mil.

In FY16, Matrix will concentrate mainly on its Bandar Sri Sendayan, where it will launch projects worth more than RM1bil there in 2016.

It will build a new extreme park in BSS to make the township more appealing, while I think Matrix may end up operating a private hospital in the future.

Matrix has declared total 14.4sen (adjusted) dividends for FY15. This is a 6.0% yield at current share price of RM2.40.

Tambun: Affected By APDL Delay

Tambun Indah FY15Q3 Financial Result

TAMBUN (RM mil)	FY15Q3	FY15Q2	FY15Q1	FY14Q4	FY14Q3
Revenue	86.2	60.0	130.4	110.1	116.8
Gross Profit	38.0	28.0	47.6	38.8	43.8
Gross%	44.1	46.7	36.5	35.2	37.5
PBT	32.9	22.2	41.3	35.1	34.8
PBT%	38.2	37.0	31.7	31.9	29.8
PATAMI	23.8	17.1	29.9	25.9	25.5
Property Rev	85.4	59.6	129.5
Property OP	31.6	21.6	40.6
Investment Rev	0.5	0.2	0.2
Investment OP	0.9	2.6	2.4
Total Equity	428.8	417.1	427.5	397.0	377.9
Total Assets	704.9	733.7	667.5	661.8	636.8
Trade Receivables	117.9	125.0	146.0	118.0	117.0
Prop dev cost	94.5	67.6	59.5	72.5	83.9
Inventories	2.2	2.2	2.2	2.4	0.3
Cash	118.4	143.4	116.0	131.5	151.1
Total Liabilities	273.3	314.0	237.1	262.4	256.6
Trade Payables	82.5	104.2	95.9	103.9	93.1
ST Borrowings	31.4	39.2	30.9	35.2	13.8
LT Borrowings	153.2	165.0	119.1	117.7	133.2
Net Cash Flow	-13.0	12.0	-12.3	17.7	37.3
Operation	27.6	3.6	28.8	-5.5	3.0
Investment	-28.9	-28.3	-11.6	-12.8	8.5
Financing	-11.7	36.7	-29.6	36.0	25.8
Dividend paid	41.0	12.6	12.6	26.8	26.8
EPS	5.61	4.05	7.10	6.24	6.22
NAS	1.01	0.99	1.01	0.94	0.92
D/E Ratio	0.15	0.15	0.08	0.05	Net cash

Even though Tambun's FY15Q3 result has improved compared to preceding quarter of FY15Q2, its revenue and PATAMI actually drop 26% and 6.7% compared YoY.

In FY15Q3, it only registered RM21.8mil new sales, compared to RM25.1mil in Q2 & RM146.3mil in Q1.

Up to 9M15, it only achieved RM193mil new sales, which is less than half of its target of RM400mil in FY15.

To recap, Tambun manage to achieve RM429mil and RM500mil new sales in FY14 & FY13 respectively. 

Latest unbilled sales drop further to RM343.2mil from RM408.1mil a quarter ago.

Is Tambun's sales really that bad?

I think those who have visited its sales office or recently bought its properties might not think so.

It is not a secret that many property developers in Penang are facing a delay in getting Advertising Permit & Developers License (APDL) from the federal government.

The approval process which normally takes 2 weeks is now delayed to many many months with no clear reasons (though many should roughly know the reason).

Up until end of Q3 (Sep15), I think Tambun still could not get the APDL for its upcoming projects such as Avenue Garden (GDV RM92.8mil), Raintree Park 2 (GDV RM217.7mil) & Pearl Tropika (GDV RM138.4mil).

That's why it can only recognized RM21.8mil new sales from its existing projects.

I understand that Tambun has already obtained the APDL now and we should see vast improvement in its new sales in FY16, if not in FY15Q4, depends on when the S&P agreement are signed.

Judging from the interest or "registration" for its upcoming projects, Tambun should be able to meet its target RM400mil new sales in FY15 if no delay in APDL.

There is a high demand for properties in Pearl City in which its latest officially launched project Raintree Park 1 which consists of 310 units properties are almost 100% sold out.

The average take up rate for its on-going projects is an encouraging 91%.

Because of this delay in new project launch, Tambun might not be able to produce "consistent" quarterly results in the near future.

Its upcoming quarterly results might be "patchy".

Tambun has started to collect rental from GEMS International School in Pearl City, which is estimated to be RM3.5mil a year according to analyst.

Pearl City Mall which is scheduled to be operational in the first half of 2016 will also contribute to Tambun's rental income later.

Unlike GEMS, Tambun is indirectly involved in the operation of the mall via a 50/50 joint venture.

Besides, there might be another future rental/operation income in medical center in Pearl City.

Tambun's borrowings have increased due to the addition of investment property to the group.

Asiapac registered a massive fair value gain in investment properties after its Imago Mall was completed. Will Tambun do the same for its Pearl City Mall?

Anyway, Tambun has revised its dividend policy to exclude the valuation gain/loss from its investment properties.

A first interim dividend of 3 sen for FY15 has been announced, which is similar to last year.

I'm confident that Tambun should be able to pay at least 9sen dividend for FY15, which means a yield of 6.4% at share price of RM1.40.

Its FY15 EPS should be able to exceed 20sen and this will give it a relatively low PE ratio.

I think all these should provide a good support for its share price.

If the sales recognition of the delayed projects are all recognized in 2016, then I guess year 2016 should be an impressive year for Tambun, as long as there is no more delay in APDL approval.

Tambun is the "pioneer" and also "longest serving" stock in my portfolio started since mid-2013. It is also the one and only stock which has ever occupied my core portfolio.

Of course I have pared down my shareholding in Tambun gradually since 2014.

As I wish to limit my portfolio to maximum 15 stocks, I did think of selling all Tambun shares to free up some space, because share price of property stocks are not expected to do very well in the next one or two years.

Once, I thought of this seriously on bed before I slept and decided to sell all Tambun's shares the next morning. However, in the next morning, I changed my mind and decided not to sell.

I'm not asking readers to buy or not to sell shares of Tambun. My position is different as my remaining Tambun shares are already "free shares" and I plan to stay with it for a special reason.

Tambun: Another Surprise

Tambun Indah FY15Q2 Financial Result

TAMBUN	FY15Q2	FY15Q1	FY14Q4	FY14Q3	FY14Q2
Revenue	60.0	130.4	110.1	116.8	128.0
Gross Profit	28.0	47.6	38.8	43.8	38.1
Gross%	46.7	36.5	35.2	37.5	29.8
PBT	22.2	41.3	35.1	34.8	33.1
PBT%	37.0	31.7	31.9	29.8	25.9
PAT	17.1	29.9	25.9	25.5	25.4
Total Equity	417.1	427.5	397.0	377.9	351.0
Total Assets	733.7	667.5	661.8	636.8	676.1
Trade Receivables	125.0	146.0	118.0	117.0	106.8
Prop dev cost	67.6	59.5	72.5	83.9	57.2
Inventories	2.2	2.2	2.4	0.3	0.3
Cash	143.4	116.0	131.5	151.1	194.4
Total Liabilities	314.0	237.1	262.4	256.6	323.0
Trade Payables	104.2	95.9	103.9	93.1	102.0
ST Borrowings	39.2	30.9	35.2	13.8	38.3
LT Borrowings	165.0	119.1	117.7	133.2	164.7
Net Cash Flow	12.0	-12.3	17.7	37.3	80.6
Operation	3.6	28.8	-5.5	3.0	-23.1
Investment	-28.3	-11.6	-12.8	8.5	2.4
Financing	36.7	-29.6	36.0	25.8	101.3
Dividend paid	12.6	12.6	26.8	26.8	7.9
EPS	4.05	7.10	6.24	6.22	6.34
NAS	0.99	1.01	0.94	0.92	0.86
D/E Ratio	0.15	0.08	0.05	Net cash	0.02

After a pleasant surprise in FY15Q1, Tambun posts another surprise in FY15Q2, but this time it's a negative surprise.

FY15Q2's revenue (RM60mil) and PATAMI (RM17mil) drop 54% and 43% respectively QoQ.

I don't expect FY15Q2 to match FY15Q1's result but I actually expect a PATAMI of RM20-25mil.

At 1H15, revenue and PATAMI drop 21% and 7.3% respectively compared to 1H14.

Net debt/equity ratio increases to 0.15 as it has completed acquisition of land worth RM39.4mil in Bukit Mertajam in Jun15.

Besides, another surprise is about its new sales achieved in FY15Q2 which is just RM25mil. It is a far cry from RM146.3mil a quarter ago.

According to Tambun, the reason for poorer FY15Q2 is because of the timing of billing, in which a few projects are near completion while 2 new projects launched in end of 2014 are in early stage of construction.

Pearl Avenue shop offices have got its OC in mid Aug while Pearl Residence, Permai Residence & Pearl Harmoni should follow very soon.

The 2 new projects launched in end 2014 mentioned here should be Raintree Park 1 and Pearl Avenue 2.

Construction of Pearl Avenue 2 is running quite well now but progress of Raintree Park 1 is rather slow and is still at very early stage.

Average projects take-up rate is at a good 89.2% which is not a surprise to me, while unbilled sales at end of 1H15 drops from RM443.6mil to RM408.1mil.

Tambun has started to sell other new projects in Pearl City such as high-rise Avenue Garden (2 blocks), Pearl Tropika (DST) and  Raintree Park 2 some time ago.

It seems like these projects are still yet to be approved by local authority by mid-2015 but most of the units have already been snatched up by buyers.

From a visit to Tambun's sales office, I think these projects should register at least 70% take-up rate, especially Avenue Garden.

Earthwork and piling have already started at the site of Avenue Garden, and the show houses of Raintree Park 2 are being constructed now.

When these projects are approved later, then new sales figure is likely to jump.

Avenue Garden & Raintree Park 2 are said to have a combined GDV of RM300mil.





According to the latest Pearl City master plan, there are a few new additions to its residential projects such as Pearl Botanik (gated & guarded) and non-gated Pearl Saujana I, II, III & Pearl Impiana.

I expect these projects to be launched in 2016.

After this, vacant land in Pearl City will be about half the size when Tambun started its first project Pearl Garden here in 2009.

However, high-rise projects such as apartment and retirement village in the future will help to boost its GDV.

       Avenue Garden


In June last year, Tambun Indah announced that it planned to acquire 27 parcels of land measuring 209.54 acres south of its Pearl City for RM150mil.

Unfortunately, this proposed acquisition was terminated in November by Tambun Indah due to non-fulfillment of a condition precedent. 

Since early June15, I believe that the same plot of land has been put on sale online at Mudah.com. The location and size (209 acres) are similar.

The land is still on sale at the moment.

The red line in the map above marks the border of Tambun's existing land according to its latest master plan. It looks like there is an overlapping here...

The asking price for the land is now RM182.1mil, which is 21% higher than price offered to Tambun Indah last year.

The land which is mainly planted with oil palm trees, is accessible via Tambun's Pearl City and a new fly-over on the southern part of the land.

Which developer will get the land finally?

Meanwhile, the construction of GEMS International School is already completed, with internal renovation on-going. It will be the first international school in mainland of Penang.

It has a great list of facilities and those who are interested can arrange for a school tour. It will start operation on 7th September 2015.

       GEMS

I have toured the school and I would say that I am quite impressed.

It has 2 sports complex halls with 3 & 2 badminton courts respectively, 2 swimming pools, 2 basketball courts, a futsal court and a football field.

Other facilities are standard such as library, study corners, play corners, outdoor corners, dance room,  music room, science labs, black box theater etc.

There is a meal plan designed by dietitian as well.

Annual school fees range from RM24,000 to RM40,000, excluding books, uniform, resource fee, exam fee, meal plan etc.

       GEMS


I heard that there are already 170 students enrollment 2 weeks ago. I think it should get at least 200 students when the school starts next week.

Unlike Matrix who owns 100% of its private school, Tambun does not have shares in the operation of GEMS International school but will get rental income from leasing out the 3-storey buildings & land.

According to earlier analyst report by RHB, the rental for the first 8 years will be fixed at 8% of construction cost plus 4% of land value. The rental will increase by 2% annually from ninth year onward.

The construction cost for the school is reported as RM38mil earlier by RHB. If the 8-acre (350k sq ft) land is valued at RM35psf, then the potential gross annual rental will be RM3.5mil, which represents a good yield of 7%.

From latest cash flow statement, there is an addition of investment properties worth RM29.3mil and I believe that it should be the cost for GEMS International School construction.

So, Tambun will start to get full contribution from this rental income from FY15Q3.

       GEMS

Just opposite GEMS, the construction of Pearl City Mall is progressing well and phase 1 is expected to open for business in the first half of 2016.

Tambun has 50% shares in the operation of the mall as it is a 50:50 JV with a mall operator based in Kedah who also operates Amanjaya Mall in Sg Petani.

The construction cost for phase 1 (170k sq ft) is about RM45-50mil and could potentially offer a yield of 8% according to RHB analyst.

So in year 2016, Tambun will add another asset to its book.

Meanwhile, the construction of Jit Sin SPS branch is progressing rather slowly due to shortage of fund. It is expected to start student intake in 2017.

For me, it remains the most important catalyst for residential demand in Pearl City.

       Raintree Park 1

Everyone is concern about the slow down in property market.

In Penang, some may worry that the launch of so many affordable projects by the state government may affect developers who build affordable homes.

I'm not too worry though, as Seberang Perai Selatan is booming and Tambun mainly sells landed houses.

Though I won't define a DST selling at RM450k is affordable, it may still looks relatively cheap when Eco World launch its DST at Eco Meadows later.

If you visit Pearl City sales office, you can see that their new projects still sell very well.

Of course we won't expect Tambun to grow at the same pace like it did since 2010. Its earning may even fall in year 2016.

Like any other developers, Tambun needs to purchase more land to sustain its earning in the future.

Personally I'm still optimistic that Tambun's net profit in FY15 can reach RM100mil.

Tambun's share price has dropped quite a lot in the past one month. With this kind of quarterly result, it will surely succumbed to more selling pressure.

I just consider myself a "business owner" in Tambun who develops Pearl City and who now owns a 20-acre land in the bustling Song Ban Kheng road in BM.