share investment

Company information:

Efficient E-Solutions Berhad (EFFICIENT) was incorporated in Malaysia under the Companies Act, 1965 on 27 October 2003 as a private limited company under the name Efficient E-Solutions Sdn Bhd. Subsequently, EFFICIENT was converted into a public company and assumed its present name on 10 February 2004.
EFFICIENT and its subsidiaries are principally involved in the provision of integrated outsourcing solutions in data and document processing ("DDP") to banks, stock-broking companies, insurance companies and telecommunications operators. DDP covers services ranging from data extraction, conversion, formatting of documents to data printing and the preparation of printed documents for distribution via post. The Group also provides electronic bill presentment services, to data extraction, creation, and delivery via electronic media.

Summary of financial performance:

Year	2008	2007	2006
Revenue(MYR)	59500000	56410000	43010000
Profit(MYR)	15840000	15120000	12110000
EPS(MYR)	0.0241	0.023	0.0404
Profit Margin	26.6218%	26.8038%	28.1562%

The latest financial report for the half of current year shows the unaudited revenue is RM33,239,000 whilst the profit is RM9,178,000,which are 12% and 8.7% higher than the figures of corresponding period in the proceeding year.The profit margin is 27.61% which indicates the company controlling the costs well and enhancing the performances of work in order to be efficient enough competing with other competitors.

The company also issued 2% of RM0.01 first interim dividend in the last quarter.I believe the company will create more benefits for the shareholders.

According to the latest audited EPS(RM0.0241) and weighted average PE(16.7) of the industry,the fair value of the share should be around RM0.40.However,up to today,the share price is understated at RM0.255.Therefore,this share has a great potential to boost and present its real value.

Recently the economic is recovering from the recession.Thus,the share markets everywhere begin to show the growth.Many people may want to do some share investments as an alternative instead of buying mutual funds.So I just share with you how to start share trading in Malaysia.

Malaysia has only one share market-Kuala Lumpur Stock Exchange(Bursa Malaysia).Almost all buying or selling actions are taking place there except those direct deal/off market deal which normally involves in bulk transactions.Now we could go to open the trading account.

1.You could choose any securities(broker) company you like,perhaps you could consider whether it is close to your house and how the charges are.You could refer to this list for all registered securities.

The requirements for open a trading account in securities are very limited,normally the only requirement is you are above 18 years old.

2.Open a trading account and CDS account in the security

Trading account could be divided into two types-nominee account and direct account.

Nominee account:Once you buy some shares,your name will not show on the registration book of existing shareholders directly,instead it will show as XXX SECURITY-beneficial to YOUR NAME.

Advantage:Not necessary to visit the security frequently as they could help you deal with most matters(ie, banking in dividends,sign up forms for bonus shares/warrants etc).

Disadvantage:You can not apply for IPO using Nominee account.You may not receive the annual report,some gift vouchers easily.

Direct account:Once you buy some shares,your name will directly show on the registration book of existing shareholders.

Advantage:You apply for IPO using this account.You could receive the annual report and voucher from the company you invest directly.

Disadvantage:You may have to bank in the dividend by your own.If having some bonus issue,you may need to visit the security to sign up some forms by yourself.

However,I still prefer to have direct account.

The charge for open a trading account is varied from different securities,but most of them are free of charge.And commonly you only need to pay for RM10 for new CDS(Central Depositary System) account which is the account to electronically store your shares by some Malaysian law.

After you have a trading account and a CDS account,you are able to buy shares in the market.

3.Know the fees for each transaction

For buying or selling,it will occur some fees comprising of brokerage fee,clearing fee and stamp duty.

The brokerage depends on what methods you used to buy/sell shares-phone call or online.Commonly if you call for making the transaction,you will be charged higher,ie. 0.7%;if you make the transaction through online platform,you will only charged at 0.42%.

The clearing fee is 0.03%.The stamp duty is RM1 for every RM1000.However,I suggest you ask the details from the security.

These are all the basic stuff you need to do and need to know before you make the very first transaction.If you think you have absorbed all,you could start to enjoy the fun from share investment now.I think you could learn the rest knowledge from trading.