This article is for all investors who lost money investing in Bursa
Malaysia companies. Many small investors, usually are victims of analyst
reports, victims of greedy directors after IPO, victims of unconfirmed
take over news like KFM's case, etc.
In this example, we use Hiap Huat Holdings (HHHCorp, 0160) as one example of company directors performing at an awful, shocking, horrid, horrendous level after IPO of the Company.
Hiap Huat is directed by a family lead executive director team, son as CEO, wife as executive director and mother as director. Three other directors are non independent directors.
Prior to IPO in 2012, the company were making profit of RM1.9million (2008), RM1.7million (2009), RM5.2million (2010), RM6.1million (2011).
Extract from IPO prospectus:
Before IPO, CEO mention that company will utilize funds to expand overseas and for Pulau Indah plant. The Pulau Indah plant will boost the company financial performance by double. His statement convinced a strong oversubscription rate of 63 times on IPO shares.
On IPO day, share price open at RM0.32 (60% above IPO price of RM0.20). One week later, the share price drop to RM0.20, one year later to RM0.16, then RM0.10, then now RM0.065.
Worst, the company financial performance is so horrendous that revenue drop every year since 2012, profit become BIG LOSSES every year after IPO.
But, this did not stop CEO from telling publicly that Pulau Indah plant will reduce transportation cost and double production capacity. Many new investors fall for his expansion plans in 2014.
Since 2014, the company's financial performance in 2015 and 2016 is even more horrendous than in 2014 and 2013. This prove that he is incompetent and does not work hard enough to improve company performance despite publicly sharing that production capacity will double. How did the company revenue reduce by half even after opening of a new plant in 2014 worth RM32mil?
The company has since blame the poor performance on the oil prices and bad economy. In 2013 and 2014, oil price were above US$100 per barrel, the management has not addressed why the company still make horrendous profits between quarters and losses in 2014.
A past director name has continuously liquidated his shareholding of 19% (2013) to less than 1% (2016). This director is said to be the ex-husband of the CEO's mother and one of the founders. Is this company a retirement fund for this ex-director or should be a company for the public?
Worse, the director continue to remunerate themself in excess of millions every year even though the company suffer losses every year since IPO (Just look at the annual report since 2013).
Executive director and wife of CEO, went on the Star in 2014 to talk about changing the HR culture in this company.
On a shocking revelation, the company rating on Jobstreet by their employees is 2.2 stars. None of the five categories (Learning, Benefits and perks, Job growth, Happiness, Management) is more than 2.2 stars. Benefits and perks, and management is 1.7 stars.
Now in 2016, nothing has improve. The interview with the Star between this director is purely a one sided view from her perspective. She has failed to understand her employees, proved by Jobstreet ratings.
Setting up of Auto360. In 2015, CEO went on to set up a e platform, Auto360.my. He did not say how will this benefit the Company. There is also no communication on how will he monetize this e platform. It is more than 1 and a half year since the setting up of this e platform. When and how only will be address this Auto360.my app? Is he focusing enough on the company's business or is Auto360.my a personal venture that does not benefit shareholders of the company?
Are the shareholders held hostage by these directors.? Will any regulatory authority review the practices of these directors? Will shareholders vote to remove these directors in the next AGM?
What will be the fate of this company?
http://klse.i3investor.com/blogs/martingarrison/111939.jsp
In this example, we use Hiap Huat Holdings (HHHCorp, 0160) as one example of company directors performing at an awful, shocking, horrid, horrendous level after IPO of the Company.
Hiap Huat is directed by a family lead executive director team, son as CEO, wife as executive director and mother as director. Three other directors are non independent directors.
Prior to IPO in 2012, the company were making profit of RM1.9million (2008), RM1.7million (2009), RM5.2million (2010), RM6.1million (2011).
Extract from IPO prospectus:
Before IPO, CEO mention that company will utilize funds to expand overseas and for Pulau Indah plant. The Pulau Indah plant will boost the company financial performance by double. His statement convinced a strong oversubscription rate of 63 times on IPO shares.
On IPO day, share price open at RM0.32 (60% above IPO price of RM0.20). One week later, the share price drop to RM0.20, one year later to RM0.16, then RM0.10, then now RM0.065.
Worst, the company financial performance is so horrendous that revenue drop every year since 2012, profit become BIG LOSSES every year after IPO.
But, this did not stop CEO from telling publicly that Pulau Indah plant will reduce transportation cost and double production capacity. Many new investors fall for his expansion plans in 2014.
Since 2014, the company's financial performance in 2015 and 2016 is even more horrendous than in 2014 and 2013. This prove that he is incompetent and does not work hard enough to improve company performance despite publicly sharing that production capacity will double. How did the company revenue reduce by half even after opening of a new plant in 2014 worth RM32mil?
The company has since blame the poor performance on the oil prices and bad economy. In 2013 and 2014, oil price were above US$100 per barrel, the management has not addressed why the company still make horrendous profits between quarters and losses in 2014.
A past director name has continuously liquidated his shareholding of 19% (2013) to less than 1% (2016). This director is said to be the ex-husband of the CEO's mother and one of the founders. Is this company a retirement fund for this ex-director or should be a company for the public?
Worse, the director continue to remunerate themself in excess of millions every year even though the company suffer losses every year since IPO (Just look at the annual report since 2013).
Executive director and wife of CEO, went on the Star in 2014 to talk about changing the HR culture in this company.
On a shocking revelation, the company rating on Jobstreet by their employees is 2.2 stars. None of the five categories (Learning, Benefits and perks, Job growth, Happiness, Management) is more than 2.2 stars. Benefits and perks, and management is 1.7 stars.
Now in 2016, nothing has improve. The interview with the Star between this director is purely a one sided view from her perspective. She has failed to understand her employees, proved by Jobstreet ratings.
Setting up of Auto360. In 2015, CEO went on to set up a e platform, Auto360.my. He did not say how will this benefit the Company. There is also no communication on how will he monetize this e platform. It is more than 1 and a half year since the setting up of this e platform. When and how only will be address this Auto360.my app? Is he focusing enough on the company's business or is Auto360.my a personal venture that does not benefit shareholders of the company?
Are the shareholders held hostage by these directors.? Will any regulatory authority review the practices of these directors? Will shareholders vote to remove these directors in the next AGM?
What will be the fate of this company?
http://klse.i3investor.com/blogs/martingarrison/111939.jsp
