The Business Model of Focus Lumber. Source Its Products From Lowest Cost & Sell to Highest Value USA, Calvin Tan Research

June 9, 2018 By Calvin Tan Smart Investment

Dear Friends of i3 Forum,


Today I want to talk about FOCUS LUMBER (5197)


Successful Businesses like IKEA or WALMART Have Set Up Systems for Giving Value to Mankind and reap the rewards of success.


IKEA Employs a group of designers. Its products are constantly changed & updated with the changing of the taste according to the times and fashions of the day.


Then IKEA goes to the source to get material, goods at cheapest costs & services. This is to find the Most Cost Saving ingredients, the raw material at its cheapest cost. And with skill accumulated through decades create new products at very competitive rates.

Then bypassing wholesalers, retailers & middle men IKEA sells quality designer goods & furniture at 20% to 30% cheaper than products of comparative quality by competitors. Everywhere IKEA goes there is roaring success. So IKEA has a very successful Business Model.


Same goes for Walmart (One of Warren Buffet Top Stocks). Walmart goes to China. Negotiate for the lowest price by bulk purchase. Ship back to US at lowest freight rate. Then sell direct to the American Consumers in Big Box Store at very competitive prices that few competitor could match.


Such are the SUCCESSFUL BUSINESS MODELS IKEA & WALMART Have Visioned, Planned & Executed. These SYSYEMS For Wealth Have Made Them HUGE SUCCESS.


What about FOCUS LUMBER?


FOCUS LUMBER was set up by the Taiwanese Experts in their Long Years of Experience with Lumber and especially Plywood.

They FOCUS on High Value ADDED PLYWOOD. These could generate exceptional profit margins of 20% to 25% unlike selling conventional plywood for a mere 5% to 6% profit. So FOCUS LUMBER sets itself apart from all normal Plywood Manufacturers.


Now Sabah has been chosen for 2 reasons

1) Its proximity to Taiwan

2) Its Vast Store of the Last Remaining Lumber in the World.

In 1776 USA got its independent. And for the next 250 Years all its Lumber were fell and consumed – leaving only the last remaining Forests designated as National Parks. Sabah is the Source – the Ultimate Source for Logs that can be turned into Specialty Plywood. Why? For The Recreation of Americans!


See how high the Stacked Up Plywood of Focus Lumber


  • 24 YEARS OF LUMBER HISTORY – Manufacturing and sale of plywood, veneer & Laminated Veneer Lumber

With a population of over 300 millions the US is the Number One Market for RV (Recreational Vehicles). The interior walls of these RV need lots of Plywood made from tropical hardwood.



And its Final Destination


Related image


Image result for plywood inside rv

See the Driver on the Front Right

Related image

My Brother in Law studied in USA Unverisity for 2 years. He bought a Used RV and used it as a home for 2 years. There are many parks with plug in water & electric facilities in USA. After 2 years he sold of his 2nd hand RV for about the same price & returned to Singapore.

Related image


Every year Millions of Americans go traveling, hunting, camping, hiking, picnicking,  roaming, fishing and visit National Parks in these RV


Image result for rv in usa





‘The RV space is on fire’: Millennials expected to push sales to record highs

  • RV shipments are expected to surge to their highest level ever, according to a forecast from the Recreation Vehicle Industry Association.
  • It would be the industry’s eighth consecutive year of gains.
  • Thor Industries and Winnebago Industries posted huge growth in their most recent earnings report.
  • “They’ve done massively well because they’ve made massively creative acquisitions,” said Gerrick Johnson, an analyst at BMO Capital Markets.


Sometimes, bigger isn’t always better.

The recreational vehicle industry has figured that out and it has led to record-breaking growth.

This year, RV shipments are expected to hit their highest level ever, according to the Recreation Vehicle Industry Association, marking the industry’s eighth consecutive year of gains.


Why America’s RV market is booming


Source: RVIA

View photos


Source: RVIA


Surging Demand for Homes with RV Parking

The RV industry is on pace for record RV shipments this year. The Recreational Vehicle Industry Association (RVIA) estimates that over 400,000 RVs1 will be shipped in 2016. About 9 million RVs are now on the road in the US, and an estimated 8% to 9% of all US households now own an RV. New high-end motor homes can easily cost $100,000, $200,000, $300,000, or more—a sizable investment that you don’t necessarily want to just leave sitting out on the street.


With Trump’s USD1.5 Trillions (About Rm6 Trillions) For Infrar Jobs of Highways, Bridges, Rural Roads more Ameericans will buy RVs and explore USA.





Warmest Regards


Calvin Tan Research



And these are some Salient Factors for Focus Lumber

  1. At Rm1.08 with NTA Rm1.60 Focus Lumber is selling at more than 30% discount. So it has Margin of safety.

2) Company has zero borrowings and zero gearing.


3) It pays 6 Sen & 2 Sen dividends making it a total of 8 sen. At Rm1.08 this translates to a nice 7.4% dividend yield which is twice that of Bank FD rate.

4) With the banning of Log export from Sabah Focus Lumber will now have an abundant of raw material. When China banned imports of waste papers – the shares of paper recycling like Muda surged. So Focus Lumber share price will perform better in coming days.


5) With US in full employment it bodes well for the economy in expansion. So export of plywood to USA will also expand.

6) Seeing good prospects Insiders have been buying and buying Under Value FLB shares from the open market



7) By all yardsticks of NTA, Dividend & Growth Prospects FLB share price in now undemanding and worth a buy.

Please buy or sell after doing your own due diligence.











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