Health check on property companies (M'sia)

3 key indicators to check the health of a property companies.

1. Gross Development Value GDV:-
Often, you would find these information in the Chairman’s and CEO’s Statements and the Operating Review within a company’s annual reports.


2. Landbanking:-
Size of land bank and remaining GDV
Landbanking is often referred to a property company’s purchase to increase their land holdings. There is no real tangible asset for property stocks

3. Unbilled Sales:-
Unbilled sales are revenues which have yet to be reported in a company’s financial statements. These could be property sales achieved by their current projects. Often, they would be reported in the next 1 - 2 financial year

Health check on tech/semicon companies (M'sia)

3 key indicators to check the health of technology or semiconductors companies.

1. Inventory level:-
Inventory ÷ revenue
High inventory level may cause inventory write down, as tech demand changes rapidly


2. Investment expenditure:-
Capex ÷ revenue
Compare it with the previous quarters, if it grows higher then be careful on the profits for upcoming quarters

3. Net profit margin:-
Upstream players eg. Vitrox is doing an automated testing machine and semiconductors biz is maintaining a 20% to 30% profit margin all the time. However, downstream players eg. SKP Resources is doing assembly biz, which only maintaining a 5% to 10% profit margin.