EcoWorld: Set For Explosive Growth - Bursa D

Sunday, 27 April 2014 

 

Since it acquired Focal Aims's shares at RM1.40 per share in Sep last year, Eco World's share price has appreciated more than 5-fold, from less than RM1 to more than RM5.

 

I didn't buy Eco World's shares as I don't know how much it can earn in the future, even though I'm quite sure that it will reach SP Setia's current level in the future. However, how many years will it take? Is it worth to park my money here for many years?

 

Now here comes some clues.

 

 

 

As expected, Eco World has made a few major corporate exercises which will propel it to be one of the largest property developer "overnight".

 

In summary, Eco World Bhd proposed to acquire the development rights to 8 projects and the shares of a company with development land from the subsidiaries of its private company Eco World Sdn Bhd.

 

Before this, the listed part of Eco World only has one on-going project at Kota Masai township with 991.6 acres remaining, which was inherited from Focal Aims. The other project EcoSanctuary at Kota Kemuning, which was recently acquired from Tropicana, is only expected to be launched in 2015.

 

After the proposed acquisition, Eco World's total landbank will increase from 1,326 acres to 4,433 acres, while total GDV will increase almost 3-fold from RM13.5bil to RM43.5bil.

 

The table below shows Eco World Bhd & Eco World Sdn Bhd's landbank, in which all are in the property hotspots of Klang Valley, Iskandar Johor and Penang.

 

 

 

 

Eco World has already launched EcoSky (GDV RM970mil) and EcoBotanic (GDV RM3.79bil) in the fourth quarter of last year. It plans to launch all its other projects except EcoMacalister between 2014-2015.

 

It sets a sales target of RM2bil in 2014 and RM3bil in 2015. It has achieved sales of RM1.13bil as at 31 Mac 2014 from the two projects launched last year.

 

Eco World plans to launched another 6 projects shortly within the 3rd and 4th quarter of this year. They are EcoMajestic, EcoSpring, Eco Business Park I & II, EcoTropics and EcoTerraces. 

 

EcoMajestic at Semenyih which has 1,073 acres land will be Eco World's largest township development at the moment. Inevitably this makes me link it to the success of Setia Alam by SP Setia.

 

The maps below show the location Eco World's projects.

 

 

       Eco World In Penang

 

 

       Eco World In Klang Valley

 

 

       Eco World In Iskandar Johor

 

 

To fund all these acquisition, Eco World will pay Eco World Sdn Bhd's shareholders (EW Holdings & Sinarmas Harta) in the form of Eco World's shares (shares subscription), as well as proposing rights issue with free warrants and then a 20% private placement.

 

Currently Eco World has total paid-up shares of 253.3mil, with par value RM1.

 

First, it will carry out share split of 1 into 2 ordinary shares, to total 506.6mil shares with par value of 50sen each.

 

Then EW Holdings and Sinarmas harta will subscribe to 403.4mil new Eco World's shares each, for RM1.70 per share, thus increasing the total paid up shares to 1,371.64mil. 

 

After the share subscription, the public will only hold 13.48% (from 34.95%) of Eco World's shares, which will not be compliant to listing requirement of at least 25% shares in public hands.

 

Because of this, EcoWorld has proposed rights issue with free warrants and then 20% private placement.

 

The proposed rights issue with free warrants will raise approximately RM788mil before full exercise of the warrants. The number and pricing of the rights share are yet to be determined, but the price is expected to be fixed at not less than 20% discount!

 

After the rights issue, Ecoworld will carry out placement of shares up to 20% to investors to be identified later.

 

 

Below is the estimated paid-up shares after all the corporate exercises are completed. The number of shares after the share subscription is confirmed. After that, all are just base on assumption only.

 

 

 

 

In the calculation above, the proposed rights issue is assumed to be 1 rights to 2 ordinary shares at RM1.20 each, and 4 warrants for every 5 rights shares with exercise price of RM1.97 for warrants.

 

Even before any warrants are converted into shares, Eco World's total paid up shares already surges to 2.364 billion, about 4.6 times more than its total shares now after share split.

 

So the earning will be diluted by 4.6x (if the assumption on rights issue is true) and the GDV will increase by 3x.

 

 

       EcoSky

 

 

How "BIG" will Eco World be after all the proposed corporate exercises completed?

 

We know that Eco World will have 4,433 acres of land with total GDV of RM43.5bil after this. Lets compare with other major developers in Malaysia.

 

The table below is obtained from CIMB analyst report dated 31 March 2014.

 

 

 

In term of landbank, Eco world with 4,433 acres will become the third largest land owner in the list behind UEM Sunrise & SP Setia. In term of GDV of RM43.5bil,  it will still be quite a distance behind UEM Sunrise, Tropicana & SP Setia.

 

What should be the fair value for Eco World's share price?

 

Eco World's share closed at RM5.40 last weekend. Is it worth to buy now?

 

If the share split happens now, the price will be adjusted to RM2.70. Remember that the share subscription is fixed at RM1.70 per share, while the rights issue price is assumed to be only RM1.20 after at least 20% discount. 

 

After the proposed rights issue and placement are completed, the total paid up shares are assumed to jump to 2,364 million (exclude warrants conversion). 

 

If the fair value is RM2.70 (or RM5.40 before split) given a PE ratio of 15x, the EPS should be 18sen. For total shares of 2,364mil, its profit attributed to shareholders needs to be RM425mil.

 

Can Eco World achieve RM425mil annual net profit in the next few years?

 

Below are the FY13 results & latest PE ratio of other major developers.

 

FY13 RM	Rev (bil)	PATAMI (mil)	PE
UEMS	3.43	579.1	18.4
SPSetia	3.06	417.8	17.9
Tropicana	1.48	362.3	6.0
Mahsing	2.00	280.6	11.6

 

 

After comparing to the others, do you think RM400mil annual net profit is achievable for Eco World, given its target sales of RM5bil in the next 2 years?

 

I'm not sure. What I only know is that its projects will sell very very well.

 

If Eco World can get about 15% net profit like SP Setia, then it will be RM750mil net profit from the RM5bil sales but this should be divided into 3-4 years.

 

I don't think Eco World can produce an impressive result for its FY14 which will end in Sep14. So far its FY14Q1 only produced PATAMI of RM0.8mil out of revenue of RM22.6mil, even though it has achieved sales of RM1.13bil in Mac14.

 

So I think it will take quite a number of years before it can reach the earning level of SP Setia which Mr Liew Kee Sin took decades to build.

 

Anyway, there will be a further 20% earning dilution in the future when the warrants are fully converted to mother shares.

 

Eco World & Tropicana, both are going for fast & furious growth, both has precious land at Macalister Road Penang and Canal City, which one do you think is better?

Malaysia cannot succeed unless equal opportunity given to non-Muslims, says Obama

BY JENNIFER GOMEZ
APRIL 27, 2014
LATEST UPDATE: APRIL 27, 2014 09:18 PM

Obama pointing to a student for a question during the Young Southeast Asian Leadership Initiative town hall meeting at the University of Malaya in Kuala Lumpur today. - Reuters pic, April 27, 2014.

Malaysia must ensure non-Muslims in the country also have equal opportunites as its Muslim majority if the Southeast Asian nation wanted to continue prospering, United States President Barack Obama said today of his landmark visit, 48 years after the last American president paid a visit.

"Malaysia won't succeed if the non-Muslims do not have the same opportunity,” Obama said in a townhall meeting for Asean youths at Dewan Tunku Cancelor in University of Malaya in Kuala Lumpur today.

Obama said non-Muslims in Malaysia are currently facing hostility, and some have felt oppressed.

"There shouldn't be reason to discriminate, and you have to make sure that you are speaking out against this in daily life.

And as you emerge as leaders, you should be on the side of politics that brings people together rather than drive them apart," Obama said to cheers from the crowd.

Obama said this today when answering a question from a Myanmar youth on factors of cooperation that can bring Asean together given its diversity.

He pointed out that the biggest source of conflict and war and hardship throughout the world was due to people treating those who were not like them differently.

He said the situation in Myanmar right now was that the country was going through a transition after decades of oppressive government, and it was now trying to open things up, which he said is to be lauded.

"However, the danger now that they are democratising, is that there will be groups inside Myanmar that might organise themselves politically around religious or ethnic identities instead of principles of justice or rule of law and democracy.

And you can actually see conflict that would move Myanmar in a bad direction," he said, adding that one of the problems in Myanmar was that the rights of its minority Muslim community were not protected.

Obama then added that the situation was not unique to Myanmar, and that in Malaysia, which had a majority Muslim population, there were instances where those who were not Muslims found themselves experiencing hostility.

He also said that even in the US, historically, the biggest conflicts arose around race, but over the course of generations the situation had improved, to the point that he could be elected as a president.

"All of us have within us biasness and prejudices against people who are not like us or people who are not raised in the same faith or come from different backgrounds, but the world is shrinking and getting smaller.

"You could think that way when living separately in villages and tribes and did not have contact with each other.

“But with the internet and smartphones, cultures all colliding, no country is going to succeed if part of its population is sidelined and being discriminated against," he added.

He then went on to say that similarly, Malaysia would also not succeed if non-Muslims were not given the opportunity, while the same would happen in Myanmar if the Muslim population was oppressed.

"Malaysia won't succeed if non-muslims don't have equal opportunity, Myanmar won’t succeed if the muslim population is oppressed.

"No society is going to succeed if half your population made up of women are not getting the same education and employment opportunities as men too," he added.

As such, he called on youths to embrace culture and be proud of who they were, while also appreciating differences in languages, food and how differently one worshipped God, adding that these were things to be proud of and not a tool to look down on a person.

He also called on the new generation to stand in "other people's shoes and look at things through their eyes".

Obama said that almost every religion teaches the basic principle of "do unto others as you want others to do unto you" and to "treat people the way you want to be treated".

"And if you are not doing that, then we are going backwards instead of going forward and this is true for all over the world," he told the 700-strong crowd of youths and civil society representatives. – April 27, 2014.

http://www.themalaysianinsider.com/malaysia/article/malaysia-cannot-succeed-unless-equal-opportunity-given-to-non-muslims-says

【前風變壓器】【SUCCESS】 - 千年虫

Saturday, 26 April 2014 

[7207] SUCCESS

 

【前風變壓器】【SUCCESS】

公司的背景：(Company's Background)

公司成立于1980年，也是马来西亚之一的最大低压变压器和工业照明灯设备制造商。

公司供的低压变压器产品在马来西亚是最全面的。还有提供大量的工业照明灯在国内和国际市场。

公司生产变压器和工业电源产品，如自动稳压器，电力线调节器，节能流明稳压器，高强度放电（HID）镇流器，电池充电器和测试人员。我们也做工业照明产品，如泛光灯，工矿和街道照明灯。

公司目前拥有超过850经销商在马来西亚。该公司开始通过提供，维修和配套的国内市场，也取得长足的进展在国际市场上。现在出口到40多个国家，包括法 国，澳大利亚，阿拉伯联合酋长国（阿联酋） ，日本，韩国，印度，香港香港和新加坡。公司进军全球市场将继续快速和有效地推进。

对环境的普遍担忧使未来与能源效率和可再生能源产品，为公司的首要任务。目标是继续研究和开发这些产品。同时，公司将被定位为电气工业设备与广泛的内部制造能力，已建立的制造商。新技术的发展将被纳入公司的生产流程和客户服务，以尽可能有效和高效越好。

公司打算在主场以巩固我们的地位与卓越品质的产品可靠的制造商，并在海外加强公司的市场地位。公司的目标是成为一个可靠的，动态的和重要的竞争者，无论是在马来西亚及海外以产品质量和客户满意度的承诺。

2005年头才上市在大马交易所的主板。代表公司上市在主板快要十年了。2015年1月19日，最高交易价在RM1.28。快接近十年后的今天（2014 年4月25日），股价收市在RM1.58。代表比上主板的第一天只高出30sen（没把股息和其他分红算在内）。如果以总回酬来算（把股息和其他分红算在 内），回酬大概是一倍。

SUCCESS was established in 1980 and now is one of the largest low-voltage transformer and industrial lighting manufacturers in Malaysia.

Company provide the most comprehensive range of low voltage transformers in Malaysia and also supply a large volume of industrial lighting to both domestic and international markets.

Manufactures transformers and industrial power products such as automatic voltage stabilisers, power line conditioners, energy-saving lumens regulators, high intensity discharge (HID) ballasts, battery chargers and testers. We also make industrial lighting products such as floodlights, highbay and street lighting.

The company has over 850 distributors in Malaysia. Has began by supplying, servicing and supporting domestic markets but have since made considerable headway in the international market and now export to over 40 countries including France, Australia, the United Arab Emirates (UAE), Japan, Korea, India, Hong Kong and Singapore. Our expansion into global markets will continue to advance rapidly and effectively.

Universal concerns over the environment have made coming up with energy efficient and renewable energy products a priority for the company. It is the company objective to continue researching and developing these products. Meanwhile, the company will be positioned as an established manufacturer of electrical industrial equipment with extensive in-house manufacturing capabilities. New technological developments will be incorporated into the manufacturing processes and customer service in order to be as efficient and effective as possible.

It is the company intention to consolidate our position at home as a reliable manufacturer with superior quality products, and to intensify our market presence overseas. SUCCESS aim to become a reliable, dynamic and important player both in Malaysia and overseas with a commitment to product quality and customer satisfaction.

SUCCESS has listed to main board of Malaysia's stock market exchange in early of year 2005. This represent for almost 10 years history. During its listing on 19-Jan-2005, the price price was peaked at RM1.28. For almost 10 years listing, the stock price finally broke its peak to reach RM1.58 on 25-Apr-204. This represent of 30sen higher than its first listing's highest share price (without considering of bonus and dividend along the years). By holding the share since from first day of listing, the return is merely one fold after consider of bonus and dividend returns.


部分投资者对公司的负面看法：(Negative Perception on The Company)

1）管理层不够积极 - 如果有细心跟踪公司在大马交易所公布的公告，可以发觉公司一路来都很积极地通过收购仔公司为经销这条路程来扑未来之路。也许公司一路来都很低调，而导致公司给部分投资者的一个坏印象。
2）低股息 - 表面上，我是同意的。但是一间以成长为主的公司，派发比较低的股息是可以体谅的。接下来的2014年5月19日，也是公司历史以来派发最高股息的一次，4sen。别忘了，公司曾经在2006年给红股，2011年也派出库存股，来回报小股。
3）沉闷的股价 - 笔者刚出道的时期，曾经投资过此公司。那时给我的感觉是一间很沉闷的公司。股价温水煮青蛙的那样感觉。就是如此，间接觉得公司对小股的照顾没什么样。

这个股给我的印象中，很多散户都赔了钱。长期投资他的回酬也不怎么样好！投资其实是一道很奥秘的学问。在某些时期，看起来很不错的公司，但是投资起来的回 酬就是不怎么样好。也许这就是时机的关系吧！笔者这次投资他，是以背离部分投资者的看法来跟他碰个运气，也不一定是对的。个人的其中一个投资方法就是喜欢 做人不喜欢做的事！只要觉得赔钱的风险几率不大（就算亏也不会很多）就可以去马了！

1) Management is not aggressive - If you really pay attention to the company announcement in the bursa website, you will notice there are many acquisition/incorporation of new subsidiaries news announced by the company from time to time. For me, it is a aggressive way for the company to make its future path with better return. I guess the bad perception on the company is due to low profile habit from the company and also investor do not really get sufficient information in deep about the company.

2) Low dividend payout - From a very brief glance on the company, I also certain to agree on this. Anyhow, the company is approaching the growth path as the main objective. Thus, it is acceptable for low dividend payout in the past. There will be 4sen dividend going to be ex-date on 19-May-2014 and it is the highest payout (in sen) in the history of dividend payout. Be remind that the company have also paid bonus share in year 2006 and distributed treasury share in year 2011 as well.

3) Boring stock price - Author did invested on this stock in the past. I really felt the share price movement was boring and annoying. It just like a frog inside slow boiling water which the share price will kill you slowly and deadly. This is one of the reason caused me felt the company is not treating minority shareholder in good way (as the share price is not moving up at all!)

From my past perception, I knew there are quite a number of local retail investors lost their money and time in this stock. Even you hold it for long term, the return is not really impressive at all! Stock investment is not just a direct question as like mathematics question. But it come with some hidden messages for you to make a guess and make the investment interesting. Timing to get involve into certain stock is important as well. Sometime, I like to make decision against local retailers' will to invest on a company and just try my luck by doing that. As long as I feel the risk for the investment in low (even if I judge wrongly, the loss is limited), I will just make it without hesitation.


主要看好的重点：(Main Points To Invest)

1）拥有连续成长10年的公司，但是股价又不怎么样的表现。
2）低估（RM1.58，EPS=25sen，PE=6.32），股息开始有增加的现象。
3）拥有SEB仔公司的65%股权。SEB预测能从Pengerang油田发展计划中得益。期待SEB稳健成长的业绩和其股价走动的效应。
4）亮眼的年复合增长率。
      》十年收入的成长率 CAGR 17.92% （2013 @ 322,929 vs 2004 @ 62,105）
      》十年税后盈利的成长率 CAGR 33.74%（2013 @ 28,934 vs 2004 @ 1,580）
5）预测成长能继续。（注意参考2013年3月买地来发展的公告）
。。。等等。。。

1) 10 years continuous growth record but its share price performance does not impressive at all yet.
2) Undervalued (RM1.58, EPS=25sen, PE=6.32) and started to show some indication on higher dividend payout.
3) The company has 65% of share in subsidiary, SEB, which is a listed company as well. Foresee the O&G expansion activity at Pengerang, Johor will contribute positively to SEB. Looking good on the SEB's growth and also its share price movement side effect to SUCCESS.
4) Impressive Compound Annual Growth Rate (CAGR)
      》10 years Revenue CAGR 17.92% （2013 @ 322,929 vs 2004 @ 62,105）
      》10 years PAT CAGR 33.74%（2013 @ 28,934 vs 2004 @ 1,580）
5) Foresee its growth will able to sustain well. (Pay attention to Mar-2013's land acquisition announcement)
...etc...


基本分析：(Fundamental Analysis)

10 Years P&L Trend

5 Years FA Trend

技术分析：(Technical Analysis)

Monthly Chart

Daily Chart

PJ Development Holdings Berhad - The Sleeping Beauty Has Waken Up

(PJDev share price)

(PJDev-WC share price)

1. Background Info on PJDev

Based on share price of RM1.58 and 456 mil shares, PJDev has market cap of RM720 mil. 

The group rerported net profit of RM83 mil over past twelve months. As such, current share price translates into PE multiple of 8.7 times.

The group has borrowings of RM450 mil, cash of RM129 mil. Based on net assets of RM987 mil, net gearing is 0.33 times only.

PJDev recently announced sale of two properties which will bring in RM406 mil cash and generate gain of RM154 mil. 

Factoring in the above, net assets will increase to RM1,141 mil, loans let's say remain at RM450 mil, cash will increase to RM535 mil. The group will be in net cash position. Please refer to Section 5 below for further information. 

2. Principal Business Activities

The group is principally involved in the following four business activities :-

(Property Development Division)

This division contributed almost 50% of the group's net profit. Please refer to sections below for further details.

(Cable Division)

Subsidiary company Olympic Cable Company manufactures power utility cable since 1968. It ws acquired by PJDev in 1990. 

It also has manufacturing facility in Vietnam, under OVI Cable (Vietnam).

(Hotels & Leisure Division)

Swiss Garden hotel chain with various hotels all over Malaysia.

SGI Vacation Club provides access to 6 resorts in Malaysia. Vacation ownership scheme and time share membership.

(Building Material Division)

Acotec prefabricated wall panel for building construction.

3. Segmental Breakdown

The following tabel sets out each division's net profit contribution to the group. 

Property development contributed RM40.7 mil, representing 49% of total net profit.

Construction division contributed very little profit, probably due to its focus of undertaking in house jobs within the group.

Net profit		March	June	Sept	Dec	TOTAL
(RM mil)		2013	2013	2013	2013	2013
Property development		7.4	11.5	12.0	9.8	40.7
Construction		1.6	(3.6)	2.4	2.7	3.1
cable manufacturing		4.6	4.9	5.3	4.9	19.7
Building materials		2.0	1.2	1.5	2.8	7.5
hotels & leisure		2.3	3.7	4.6	5.1	15.7
investment holdings		(1.7)	3.2	(4.5)	(0.1)	(3.1)
others		(0.2)	(0.2)	(0.2)	(0.3)	(0.9)
TOTAL		16.0	20.7	21.1	25.0	82.7
Shares (mil)		456.1	456.1	456.1	456.1	456.1
EPS (sen)		3.5	4.5	4.6	5.5	18.1

4. Landbanks

The following are details of the properties owned by PJDev.

Out of total net book value of RM629 mil, only approximately 53% (RM336 mil) are development land bank. The rest are resorts related.

Location		Details	Area	Date of	NBV
			(acres)	Acquisition	(RM mil)
Damai Laut Resort, Lumut		Resort	n/a	1990	115.6
Swiss Garden Hotel		Hotel	n/a	1997	86.5
Swiss G Resort, Kuantan		Resort	n/a	1999	53.1
Subtotal					255.2
Harbour Place,		land for mixed	16.2	1996	71.5
Seberang Prai Utara		development
You City, Cheras		mixed development	13.2	2007	64.9
Subang Jaya		land for mixed	2.7	2010	38.3
		development
Sek 52, KL		land for mixed	0.5	2011	37.9
		development
Seksyen 13, PJ (DKSH land)			5.9	pending	124.2
				completion
Subtotal					336.8
Kuantan, Pahang		land for oil palms	1,000.0	2006	37.4
GRAND TOTAL					629.4

Almost all of the development land bank is currently under development (Harbour Place at Butterworth, You City Cheras, You One at USJ). 

This is typical of OLH group of companies, which seemed to prefer asset light strategy. Instead of holding vast land bank, they like to acquire land when they are ready to use it for development. This kind of fast turnaround method is good for Return on Equity. 

As discussed in my previous articles, size of land holding is a matter of preference. Lack of vast land bank should not be deemed as a handicap. As long as the developer has the requisite skills and resources to pull it off, it is a viable strategy that could benefit the company and the shareholders.

5. Land Sales

On 31 December 2013, PJDev entered into a conditional sale and purchase agreement to dispose of Menara PJD to Top Glove's major shareholder for RM220 mil cash. Upon completion, the disposal will result in gain of RM101 mil. 

On 20 January 2014, PJDev entered into a conditional sale and purchase agreement with a China based developer to dispose of 70% stake in a piece of land at Sri Hartamas for RM186 mil cash. PJDev will retain 30% stake in a JV company to develop the land. Upon completion, the disposal will result in gain of RM53 mil.

The two disposals generated a lot of excitement.

Prince charming delivered the kiss and sleeping beauty woke up. Share price ran from RM1.00 to RM1.60 over few months.

6. Development Projects

PJDev has development projects at Penang, Klang Valley, Johor and Pahang.

Relevant details such as GDV, take up rate, unbilled sales, etc are not readily available. As usual, I don't dwell too much into these details as I trust that the management would have proper planning to ensure steady stream of earnings coming in from the various projects.

However, I found two of the group's projects very interesting :-

(a) You City at Cheras is located right next to LRT station (please refer to photo below).

(b) You One at USJ, Subang is located at the back of USJ Summit shopping centre and Global Oriental Berhad's ("GOB") mixed development project Da:Men. As mentioned in Part 7 of GOB articles, an LRT line is currently under construction and run right in front of Da:Men. The new LRT station is only about 2 minutes walking distance away.

Due to proximity to LRT lines, these two projects should be well received and contribute to group earnings over next one to two years. 

The following are pictures of PJDev's various development projects :-

(Northern Region)

(Wellesley Residence, Butterworth)

(Woodsbury, Butterworth)

(Klang Valley)

(You City, Cheras.  Please note the new LRT station at the right side of the photo)

(You One, USJ)

(You One is located at the back of Da:Men, GOB's mixed development project at Subang. The dotted line is the new LRT line)

(Southern Region)

(You Terrace, JB) 

(Mon't Callista, JB)

(East Coast)

(Swiss Garden Resort Residence, Kuantan)

7. PJDev-WC

Of course, any write up on PJDev will not be complete without mentioning the WC !!!

This instrument has delighted many i3 members when it rose from 15 sen to 80 sen over a period of one year.

A gain of 400%.

WC expires in December 2020. Exercise price is RM1.00. Based on latest market price of mother share and WC and RM1.58 and 78 sen respectively, conversion premium is 13%.

8. Concluding Remarks

(a) PJDev's fundamentals are sound. It has strong balance sheet and good profit track record. It also consistently paid out dividend of 5 sen per sahre over past few years.

(b) The groip has five business divisions. However, I am of the view that the construction division, the building material division, the cable manufactruing division and the resorts / leisure division have limited scalibility. Together they contributed almost half of PJDev's net profit. Going forward, I expect them to report steady profit. But they might not be able to grow in an exciting way.

The property division is what makes PJDev sexy. With revenue of RM300m+, there is scope for further growth. In my opnion, it is not inconceivable that one day this division will double its profitability, propelling PJDev's overall earnings to a new level. Some of its projects are exciting and have yet to contribute in a material way to earnings in the past. We should watch this division closely.

(c) Recent disposal of two pieces of land has fired investors' imagination. Let's see how things will evolve going forward.

(d) Last but not least, both PJDev and OSK Property are owned by Tan Sri OLH. I think it is a matter of time before he will rationalise the two groups. The merger would create an entity with market cap of more than RM1 billion with significant financial and operating resoucres.

It would be interesting if it really materialize.

Have a nice day

by Icon8888

LTKM (7085) - The Undervalue GEM Poultry Farm (LTK Omega Plus) (Target price - RM 5)

Current Price - RM2.98

Target Price - RM5.00

Upside - RM2.02 (67%)

Quarter result FY2014

Q1 : 13.97cents Q2 : 11.85cents Q3 : 13.16cents Q4 : 12cents (estimated) Total estimated EPS:50cents

PE: 6 (inclusive estimated Q4 result)

Dividend

FY 2013 4cents (Interim dividend) + 8cents (final dividend)

FY 2014 8cents (Interim dividend) + 8cents (final dividend - estimated)

Dividend yield: 5% (inclusive estimated final dividend)

Overview:

Main product - LTK Omega + LTK Organic Selenium Plus (Egg)

LTKM berhad, an investment holdings company, operates poultry farms in Malaysia. It is engaged in chickens and organic fertilizers. It is also engaged in extraction and trading of sand. 

As per figures shows about, the PE ratio is only 6 and the dividend yield for this company is 5%. The company's EPS have been stablely stood at 11 to 14sen eps per quarter for the last 4 quarter. Hence, the estimated Q4 2014 will be 12cents.

With a great EPS (50sen) and a good dividend payout for the company (16sen), I think it is a undervalue company for branded egg company such as LTK to only stand at PE6.

Buy at your own risk

by pingdan

Airasia - Golden oppurtunity to enter at cheap price (RM2.26)

Date (a)	Exchange rate (b)	EPS (sen) ©	Forex gain/loss (RM'000) (d)	Effect of forex (e)	Actual EPS (w/o consider forex) (f)	Fair value gain on Thailand Airasia (RM'000) (g)	Effect of Fair Value Gain (h)	Actual EPS w/o consider forex and Fair Value Gain (i)	EPS (sen) (j)	Year (k)
31/3/11	3.0253	6.2		-	6.20	-	-	6.20
30/6/11	3.0200	3.8		-	3.80	-	-	3.80
30/9/11	3.1890	5.5		-	5.50	-	-	5.50
31/12/11	3.1685	4.9	(70,603)	(2.54)	7.44	-	-	7.44	22.94	2011
31/3/12	3.0645	6.2	55,391	1.99	4.21	-	-	4.21
30/6/12	3.1778	43.0	(65,947)	(2.37)	45.37	1,160,370	41.72	3.65
30/9/12	3.0585	5.7	58,080	2.09	3.61	-	-	3.61
31/12/12	3.0580	12.6	(20,858)	(0.75)	13.35	-	-	13.35	24.82	2012
31/3/13	3.0935	3.8	(37,688)	(1.36)	5.16	-	-	5.16
30/6/13	3.1605	2.1	(122,718)	(4.41)	6.51	-	-	6.51
30/9/13	3.2595	1.3	(185,885)	(6.68)	7.98	-	-	7.98
31/12/13	3.2755	8.8	(44,897)	(1.61)	10.41	-	-	10.41	30.07	2013

From the table above shows that the EPS (earning per share) for Airasia during the past 3 years.

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Column (a) shows that the quarterly ended date.

Column (b) shows that the exchange rate between USD and MYR.

Column (c) shows that the EPS as per announcement from the quarter report.

Column (d) shows that the total forex gain/loss during each quarter.

Column (d) shows that the effect of forex gain/loss to EPS during each quarter.

Column (e) shows that the EPS without consider the effect of forex.

Column (f) shows that the fair value gain on Thailand Airasia.

Column (h) shows that the effect of fair value gain to EPS.

Column (i) shows that the EPS without consider the effect of forex and fair value gain.

Column (j) shows that the yearly EPS without consider the effect of forex and fair value gain.

Column (k) shows that the year ended.

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As you can see from column (j), the EPS for Airasia have improved year by year (2011: 22.94sen to 2012: 24.82sen to 2013: 30.07sen) while the share price still remain on RM2.26 (as per 24/4/2014). As you can see from column (e), the total effect of forex have drag down the EPS by 14.06sen (1.36+4.41+6.68+1.61), which is almost half of the actual EPS. Hence the price have been dropped from RM3.80 (10/7/2012) to RM2.26. 

With the opening of KLIA 2 and stable forex exchange (USD to MYR) (31/12/2013:USD1 : RM3.2755 / 31/3/2014:USD1 : RM3.2725), the effect of forex loss for Airasia will not continued in Q1 2014. Hence, I believe the result for Q1 2014 for Airasia will improved.

Using EPS30sen, the price earning ratio is stand at as low as 7.5. If using PE 10, the price can be easily up to RM3.00 without consider the positive effect of venture in India market and opening of KLIA.

With the reason above, I think this is a golden opportunity to collect Airasia at a very attractive price. Oh ya, dont forget about the dividend that just declared this Wednesday. (2013: 4sen - which is 25% for the EPS as per yearly report)

This is the first time i written a blog. If there is any suggestion for improvement, please leave the comment on below.

Buy at your own risk.

Thank you

by pingdan