Tong Herr Resources Berhad

Date announced 24/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010

STOCK TONGHER C0DE  5010 

Price $ 1.86 Curr. ttm-PE  9.70 Curr. DY 2.69%
LFY Div 5.00 DPO ratio 26%
ROE 8.4% PBT Margin 21.6% PAT Margin 7.7%

Rec. qRev 109005 q-q % chg 71% y-y% chq 125%
Rec qPbt 23498 q-q % chg 135% y-y% chq 499%
Rec. qEps 6.57 q-q % chg 32% y-y% chq 136%
ttm-Eps 19.18 q-q % chg 25% y-y% chq 83%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 10.00 Avg. L PE 4.00
Forecast High Pr 2.45 Forecast Low Pr 1.62 Recent Severe Low Pr 1.62
Current price is at Lower 1/3 of valuation zone.

RISK: Upside 71% Downside 29%
One Year Appreciation Potential 6% Avg. yield 3%
Avg. Total Annual Potential Return (over next 5 years) 10%

CPE/SPE 1.39 P/NTA 0.81 NTA 2.29 SPE 7.00 Rational Pr 1.34



Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr


Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 1.81
(Figures in Malaysian Ringgits)
1 Week -1.6% 13 Weeks -1.6%
4 Weeks -3.7% 52 Weeks 7.7%

Tong Herr Resources Berhad Key Data:
Ticker: TONGHER Country: MALAYSIA
Exchanges: KUL Major Industry: Machinery & Equipment
Sub Industry: Miscellaneous Machinery & Equipment

2009 Sales 211,554,410
(Year Ending Jan 2010).
Employees: 183
Currency: Malaysian Ringgits Market Cap: 230,434,720
Fiscal Yr Ends: December Shares Outstanding: 127,312,000
Share Type: Ordinary Closely Held Shares: 78,455,794


Day's Range: 1.84 - 1.88
52wk Range: 1.65 - 2.04
Volume: 50,100
Avg Vol (3m): 54,798


Prospects for the current financial year (from its quarterly report)
Barring any unforeseen circumstances, the Group expects its business prospects for the current financial year to remain positive.