Bursa Malaysia - Value

A planned show?

2009-03-07T10:05:00.002+08:00

Suddenly, I recalled that toll operators will raise the toll rate. Then, the government came in and said no.
Is this all planned for the coming by elections?

From best to worst?

2009-03-01T01:21:00.002+08:00

It has been a long time I did not follow Malaysia stock market. Gave up after the tsunami election. Almost everything went worst from the best. 2007 was a superb year. Simply pick one of the top 10 and high possibility you will make a gain.

Well, let me recap - current financial crisis was a snowball effect from the the issue unveiled in 2007. But many people were so positive that it would not create any big crisis like this. Ok, 2007 was the best year . Q1 of 2008 was acceptable. I still remember Intel CEO said that he does not see any impact to the demand due to recession. Then, all gone wrong in Sept and Oct. Banks collapsed, US government provided funds to help so many companies in US ... and many many more.

When I looked at the quarterly results at Bursa Malaysia website, almost all Mesdaq gone. The champion should be Viztel? I am not sure I read it correctly or not. Revenue recorded in the quarter is RM3,000. Even N2N, Titan, TongHer are also in red. Can you believe? A listed company has only RM3k revenue in a quarter? I wonder when the auditor will raise the on-going concern for the company.

Back to US market, it is happening too. Citi is trading at $1++ only, which is cheaper than Public Bank or Bursa. Dell, Amd, Intel and the rest are on sales too.

Should we start buying now? Perhaps the bottom is yet to come?

More terrible Q1'09 result will be released in April?

Oh no ... AUD

2008-10-12T10:15:00.004+08:00

What happened to AUD which has dropped so much since it's high in last year?
If not mistaken, it was MYR 1 = AUD 3.3. However, it is now MYR 1 = AUD 2.2. Any idea?

Meanwhile, US market is hit badly by credit crisis and yet USD has started to climb up. Why is it so?

Please leave your comments.

Bursa Malaysia

2007-12-09T18:36:00.000+08:00

It was reported in a few newspapers that some foreign parties are interested to buy a stake in Bursa, with the price of around RM20. Closing price for Bursa on last friday is RM14.20.

Is it a good time to buy in?

Award for Mah Sing

2007-09-27T21:04:00.000+08:00

Below is the article from The Star:

KUALA LUMPUR: Mah Sing Group Bhd has bagged the Best Development Malaysia Award at the 13th International Property Awards 2007 in London.

It was awarded for its gated and guarded high-end residential development of Damansara Legenda in Petaling Jaya.

The results of the world's largest property competition were announced on Sept 14, and the awards were presented at a gala dinner in London's Grosvenor Square.

About 400 property professionals, representing 56 different countries, gathered in eager anticipation of winning one of the highly prestigious awards.

Mah Sing managing director Datuk Leong Hoy Kum said in a statement that the group was gratified to be recognised at an international level for its development.

"Awards and recognition like the International Property Awards, and the Forbes Best Under A Billion award, which we have won for the third year running in 2007, serves to encourage us and allow us to stand out in the crowded market place.

"We shall certainly be bringing more quality homes to discerning home buyers soon," he said.

The International Property Awards in association with CNBC is aimed to identify the very best in the residential property market.

Nextnation: Weak Q1 result

2007-09-27T20:59:00.001+08:00

As expected, nX posted a very weak Q1 result. Below is the article from The Edge:

KUALA LUMPUR: Nextnation Communication Bhd’s net profit for its first quarter (1Q) ended July 31, 2007 fell sharply to RM611,000 from RM4.8 million a year ago mainly due to the rising operating costs for its wider geographical regions participation coupled with the higher technical expenses incurred from its restructuring process.

In an announcement yesterday, the company said its revenue was 24.1% lower at RM17.79 million against RM23.45 million a year earlier because of the delay in business transactions and projects as a result of the on-going restructuring process. Its basic earnings per share was 0.16 sen.

Going forward, Nextnation said the group would continue to focus on its technology, products development, service enhancement, market expansion, and maintaining strategic partnerships.

“The board expects increasing positive contribution from the group’s overseas operations in order to support business expansion,” it said, adding that the board expects a satisfactory performance for the remaining financial year barring any unforeseen circumstances.

Comment: I am wondering how long do they need for the restructuring? Once again, if it is well managed, restructuring should not be the reason for the extremely weak result. I also wonder what excuse they will use for the coming quarter. Restructure for a few years?

Oil & Gas Sector

2007-09-23T11:05:00.000+08:00

The above sector is another sector that could be benefited from the high crude oil price recently, where it is still trading at above USD81 per barrel.

EPIC is among the O&G stocks that attracts my attention. Strong balance sheet and monopoly of services in Terengganu are the main factors. However, the ability of the management is still a big question mark. You may refer to Whereiszemoola blog for details analysis. From buying a business perspective for mid-term, EPIC should be a good bet. It is set to enjoy Eastern Corridor as well, which will be launched by PM by end of October.

Another attractive O&G stock would be Petra Perdana. With the acquisition of additional 4 vessels, almost all research houses released reports that give a BUY call to Petra Perdana. Averagely, the target price for Petra is above RM6. As a result, it has 20% upside potential conservatively. Everything looks correct now and the emerge of high profile substantial shareholder should be able to push the stock to higher level quicker. Petra has strong support at RM5 at the moment.

Property Sector

2007-09-23T09:34:00.000+08:00

Personally, I believe the above sector will be the winner during the year end rally. By the way, let us hope there is no huge crash from now until year end. Otherwise, we may need to change our strategy again.

Property sector has been a hot topic since the waiver of RGPT, back in somewhere in April. However, quarterly results from the main players are not impressive enough. Perhaps it may take some times for the developers to enjoy better result from the incentive introduced by the Gov? Or maybe the cycle in Malaysia is not correct where HK and Singapore have been enjoying the great development in this sector since 2 years ago?

With the uncertainty of global economic and market at the moment, do the effort from Malaysia Goverment will be enough to support property sector? What will happen to all the high-end projects if economic crisis hits the global market in next 2 years?

Base on historical data, it shows that the crisis hits every 10-12 years. It is 2007 now and the crisis may come the latest by 2009? How many of the high-end projects can be completed by 2009?

Anyway, I believe Mah Sing offers good buying oppurtunity now. The stock price has been in huge selling pressure after the substantial shareholders, Felda continues to dispose their holdings in recent weeks. Perhaps they need the money to buy the en-bloc of The Icon @ Tun Razak? From another prespective, Capital Group is still holding tightly and the price is still below some of the acquisitions done by them. It should be a great value to buy with current price.

Meanwhile, according to Oriental Biz, d7 - a project by YTLLand is selling like a hot cake in the pre-launch. Within an hour, a total of 100 units were 'swept way' by the buyers. YTL Land should be another good bargain hunting stock at currect price as the prospect of Sentul area is good. YTL Land has huge landbanks in Sentul.

Lastly, if you prefer to bet in Northern area, E&O, Asas Dunia and Equine should be in the shortlist. Asas Dunia have landbanks in the mainland while Equine will be enjoying their 20% stake in the company which will be developing PGCC. Even though both Asas Dunia and Equine do not have strong financial results in the past, they have big potential in the future ...

Nextnation - Q1 result

2007-09-22T19:37:00.000+08:00

It is the time for Nextnation to release their Q1 result in this month, September. As I mentioned before, I have sold all of my holdings in the company a day after their Q4 result, back in June.

I also noticed that some of the investors still holding it as they believe there is nothing wrong with the business model of the company.

I went through some of the websites of nX and found that there are not much changes or progress to the company. They even removed their release where the CEO, Mr Tey comments about their Q4 result - where everyone can remember that the company incurred net loss for the first time(I think it should be around RM0.4mil?). Prior to this, nX has recorded net profit of RM4mil consistently every quarter.

I believe their venture into China is a failure as well. If I can remember correctly, the JV in China has been called off. Furthermore, I never see any progress and development over there. The mobile game portal - mostar should be considered as a failure too. You hardly see any development and the forum is really cold, with not much gamers having discussion there.

What do you expect from the coming Q1 result? Amid our mistake early before too late?

Fundamentally, I believe this stock is at the end of the era. But who knows speculators may push up the price in the future?

In conclusion, I think it is not worthwhile to keep holding it as they are many other attractive oppurtinities outside there. Property sector? Oil and Gas sector?

Just to share a meaningful quote from my friend - 'Not all good counters make you money, but those make you money counters are good counters' It is the fact, isn't? Happy investing ....

Petra Perdana Bhd

2007-09-13T17:49:00.001+08:00

Below is the daily report from HBDS:

Petra Perdana: Better earnings visibility with newly acquired
vessels
(Buy; PETR MK; RM4.94)

􀂾 Story: Petra is acquiring five new vessels for RM323.5m. The
new vessels provide better earnings visibility and they are well
positioned to benefit from the growing demand for offshore
vessels and rising vessel charter rates.

􀂾 Point: The new vessels will be placed under the sale and
leaseback arrangement. Assuming an average charter rate of
US$1.8/bhp for FY08-09, we estimate an average EBIT margin of
31% from the new vessels. We have upgraded our FY08-09 net
profit forecast by 8% and 7%, respectively to factor in the
contribution from the new vessels.

􀂾 Relevance: We expect Petra’s gearing to remain stable at 1.3x
for FY07 and 1.2x for FY08. We reiterate our BUY rating for
Petra with an SOP-derived target price of RM6.40/share based on
targeted 20x FY08 PER for marine services. The key re-rating
catalysts for Petra are:- (i) rising charter rates, (ii) expanding fleet
size; and

Budget .. Property sector .. Global Market ...

2007-09-08T18:00:00.000+08:00

EPF withdrawal

With the approval to withdraw money from EPF Account II for purchasing property, would it push the property sector to a higher level? Personally, I believe the demand for property will be higher as the potential buyers will have higher purchasing power by utilizing the money available in their EPF Account II.

2k?

However, the 50% discount for the stamp duty of property with value not more than RM250k is pretty immaterial in my opinion. With reference to the article in local newspaper, the discount represents a total of max 2k and it is only eligible for 1 property each individual. Is 2k that significant to a buyer who can buy a 250k property? I am not able to see the importance and I believe this has no major impact to the property sector.

Higher brokerage fee in 2008

Meanwhile, the min brokerage fee will be RM40 per transaction, starting Jan'08. I have no idea why the gov decided to increase it. Retails investors may be reluctant to pay for the higher brokerage fee where it has a direct impact to the net profit/loss for each investestment/trade.

Global Market

US market market gave up ~250 pts after the release of not impressive payroll data on Friday. China market dropped as well on Friday. Osama video clip may appear on 11 Sept? Will Fed cut the interest rate on 18 Sept? What will be the direction for global stock markets? We can deny that Malaysia market continues to be influenced by the global market at the moment.

The collapse

Personally, I believe the real huge correction will come after next year Beijing Olympic. Meanwhile, I am discovering and learning to join US stock market and options. You may visit optionXpress to look around. US market is more volatile and easier to make money? In the other way, it would be easier to lose money as well.

No Sin Tax

It is the first tax the gov did not raise the sin tax in Budget presentation? hooray for drinkers and smokers ....

Titan Chemicals: Q207 result

2007-08-30T19:39:00.000+08:00

Titan Chemicals net profit in Q2 is sharply lower as compared to Q1 result. The net profit for the company has been declining consistently from a high of RM241mil in Q406, to a lower net profit of RM156mil in Q107. With reference to the latest quarterly result from Titan, the net profit is RM80mil - which represents a drop of ~50% from Q107.

Nevertheless, Titan has declared a dividend of 3 sen (tax exempt).

The financial performance is still very depending on the difference between the cost of raw material and the selling price of finished goods.

I believe it is not worthwhile to hold this stock in the current stock market condition as the possibility to enjoy capital appreciatation is not high. The fluctuation of the stock price remains small and it is hard to see a surprise from them at the moment.

Uncertainty is the best word to describe Titan's financial performance ...

E&O: Q107 result

2007-08-30T19:35:00.000+08:00

Good quarterly result posted by E&O ..

The Edge

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) posted a 50.21% rise in net profit to RM15.24 million for the first quarter (1Q) ended June 30, 2007 from RM10.14 million a year earlier mainly from the contribution of its on-going projects.

Its revenue also rose by almost 50% to RM171.49 million. Earnings per share was 2.97 sen.

Announcing its 1Q results yesterday, E&O said the improved results were mainly due to the higher revenue from its on-going property development projects including Dua Residency, Idamansara and Seri Tanjung Pinang.

It said revenue generated by the hotel division had improved by 19.5% compared to the previous corresponding quarter.

Meanwhile, E & O Property Development Bhd's net profit for the 1Q ended June 30, 2007 jumped 75% to RM35.49 million from RM20.35 million on a 50.58% increase in revenue to RM163.98.
Earnings per share was 5.42 sen.

The company said that the better earnings reflected significantly higher contributions from its property division on the back of higher profit margin.

Top Property Developers honoured by The Edge

2007-08-30T19:30:00.000+08:00

The top 10 are:

Bandar Raya Developments Bhd
Boustead Properties Bhd
E&O Property Development Bhd
IGB Corporation Bhd
IOI Properties Bhd
Island & Peninsular Bhd
SP Setia Bhd
Sime UEP Properties Bhd
Sunrise Bhd
Sunway City

Selangor Dredging Berhad

2007-08-26T12:19:00.000+08:00

Kenanga has given very high target price for SDRED in a research report from them - RM1.84. Below are the important notes from the report:

1Q08 net profit of RM8.7m was within our expectations at 23% of our full year forecast of RM37.6m. 1Q08 net profit mainly attributed by stronger recognition of earnings from Park Seven which is fully sold and having completed the basement level is progressing rapidly above ground level. In addition, there was also the recognition from the sale of Ameera condominium units launched in January 2007 which are more than 70% sold.

QoQ, 1Q08 net profit was 19.8% lower than 4Q07 where one off gain and write back of accrued tax of RM6.1m and RM3.2m respectively was recognised. In comparison, 1Q08 operating profit of RM12.1m was 252.9% higher than 4Q07’s RM3.4m. 4Q07 is seasonally slower quarter given the shorter working days accounting for the festive holidays. In addition, the construction cost incurred at Ameera was not matched by progressive claims being ground clearing, piling and basement work. Marketing expenses for the launch in January 2007 was also expensed when incurred.

YoY, 1Q08 net profit was 280% higher! In 1Q07, Selangor Dredging only had Amansari and Park Seven projects to rely on. The progress of work for Park Seven was still at basement levels where progress billings were limited. In addition, the hotel made RM2.2m pre-tax loss compared to RM889,000 pre-tax loss in 1Q08. 1Q07 income tax rate was 42% due to unavailability of group relief for losses incurred by a subsidiary company.Tax rate was 11% in 1Q08 due to non-taxable income and tax losses brought forward. We expect tax rate to normalise to statutory rate in succeeding quarters.

We are maintaining FY08 and FY09 net profit forecast. The slated projects for launches are still on schedule. The RM230m 20 Trees will be launched this Saturday while the two Singapore projects worth RM620m will be launched in November and second half of 2008.

Maintain BUY with target price of RM1.84 based on sum of parts RNAV. We remain positive that the company is on the right track as the future development pipeline remains exciting and their projects have been well received. FY08E and FY09E PER multiples of 11.1x and 7.5x remains attractive.

Genting Berhad

2007-08-25T19:06:00.000+08:00

Genting has released their quarterly result in this week and below is the comment from HDBS. HDBS is upgrading their call from HOLD to BUY with a target price of RM8.60.

Results
Genting’s 2Q07 NI included EI amounting to RM298.1m. Stripping this out, pretax profit from continuing operations came in at RM618.3m (+13% y-o-y; -2% q-o-q). Revenue surged 42% y-o-y given the inclusion of Stanley Leisure effective Oct
2006.
Nevertheless, operating profit was crimped by losses from Genting International (GIL SP) arising from fair valuation losses and impairment losses on intangible assets
totaling S$43.3m. This saw a 10ppt contraction in gaming EBIT margin to 28% (2Q06: 43%). Also, finance cost rose 2x to RM100.5m. 1H07 NI included EI amounting to RM872m. Stripping this out, pretax profit from continuing operations came in at RM1.2b (+20% y-o-y), in line with house and market expectation.

Outlook
We maintain our core pretax profit for continuing operations of RM2.5b for FY07
and RM3.0b for FY08. Core net profit is projected to come in at RM1.4b for FY07 and RM1.5b (+12% y-o-y), driven by higher gaming contribution from Resorts World and Stanley Leisure. Also, non-core earnings from plantation, oil and gas is expected to rise on the back of higher selling prices for the plantation sector and higher production output for the oil and gas division. The power division will also continue to provide firm operating
cashflow.

Dijaya Corporation

2007-08-05T22:11:00.000+08:00

Most of the people from KL and Selangor know about Tropicana, which is among the most luxury residential area. However, most of them may not aware of the developer for this area. Tropicana is a project from Dijaya Corp.

It appears that this developer is out of the radar of most of the investors and analysts at this moment. The company feels that it is not the time to call analysts for a briefing untiil it has built up its landbank, according to its MD Tong Kien Oon in an interview.

Its share price is no trading significantly lower its net book value and estimated RNAV. It closed at RM1.42 last Friday and ths stock is trading at about 34% discount to its book value of RM2.16.

InsiderAsia believes the value of land owned by Dijaya is severely understated -Tropicana: cost RM10.54 psf vs market value of about RM150 psf; and
Damansara Indah: cost RM10.15 psf vs market value of about RM130psf.

In Tropicana, the company will be launching 400 units of low-rise condo with an indicative pricing of RM300 psf. The GDV is RM500mil.

In Damansara Indah, Dijaya launched 88 units of 3-storey semi-d with built up of about 6,200 sq ft and priced from RM2mil each. Two blocks of low-rise condo in the same area will be launched soon.

'Based on the upcoming launches, we expect Dijaya's profit too see a huge jump in the next 2 to 3 years' says an analyst.

Dijaya is also developing Tropicana City, valued at RM600mil in SS2 - 3-storey Tropicana Mall, a 24-storey block of serviced apartments and a 12-storey office tower.

The mall and office tower will be ready in 3Q of 2008 and the apartment block in 2009. The mall is expected to bring in rental income of between RM20mil to RM30mil per annum.

Lastly, Dijaya also has a stake in a JV company in India. It is developing a 25 acres land in Hyderabad, India and it is scheduled for launch in the 1H of 2008. Base on the stake in the JV company, the project is expected to bring in revenue of RM400mil.

Mah Sing - The Icon @ Jalan Tun Razak

2007-07-27T21:53:00.000+08:00

Once again, article from The Edge:

KUALA LUMPUR: Mah Sing Group Bhd subsidiary Star Residence Sdn Bhd is selling one of two wings of The Icon Jalan Tun Razak, a grade A office development, to Koperasi Permodalan Felda Bhd for RM174.4 million in an en bloc deal.

In a statement yesterday, Mah Sing said Star Residence had entered into a sale and purchase agreement (SPA) with Felda for the proposed sale of the 20-storey West Wing of The Icon.

It said the transaction value for the wing, which had a total floor area of 243,830 sq ft, worked out to be RM715 per sq ft. Included in the purchase price are 301 carpark bays.

Upon the execution of the SPA, Felda will pay RM17.44 million or 10% of the purchase price, with the balance 90% to be paid progressively according to the stage of works completed.

Mah Sing’s group managing director Datuk Leong Hoy Kum said: “With the strong demand for commercial developments, we will continue to target more prime commercial land in Kuala Lumpur and the Klang Valley for our Icon series of commercial developments.”

“Moving forward, we target to conclude more en-bloc sales for our Icon series of commercial developments, including The Icon Mont’Kiara, where the signature tower will house SoHo units and corporate designer suites.

“With our expertise in lifestyle developments, we will raise the bar for commercial developments in our Icon series, melding trendy features into our practical designs,” he said.

Leong said with a seven-year track record of on-time delivery of quality properties, the group was confident that the Icon series of commercial properties would soon make an impact on the market.

He said construction of The Icon Jalan Tun Razak was scheduled to be completed in 24 months inclusive of the issuance of the certificate of practical completion.

“Besides making The Icon a landmark in the vicinity, we are confident that it will value add in terms of potential capital appreciation in the future as we are looking at total returns instead of just yields,” Leong said.

He said the group was targeting local and international companies which were increasingly active in the central business district.

Leong said with the economy performing well, the demand for grade A offices was growing unabated as there were a trend of companies to locate to high profile locations.

He added that with The Icon Jalan Tun Razak expected to be completed before other purpose-built office buildings in the area, the group was confident of further capital appreciation.

E&O Prop: New launching @ STP

2007-07-27T21:44:00.001+08:00

Article from The Edge:

KUALA LUMPUR: E&O Property Development Bhd will be launching an upscale exclusive service apartments in Penang.

Called the Suites at Waterside, the luxurious one- and two-bedroom service apartments are built around the Waterside at Seri Tanjung Pinang, which encompasses a pleasure marina, waterfront promenade, retail marketplace as well as a five-storey lighthouse dubbed The Beacon.

Comprising 160 units, each apartment is priced between RM445,000 and RM1.25million. Prospective buyers can choose from four floor plans, with build-up areas ranging from 853 sq ft to 2,568 sq ft.

Slated to be completed in 2010, the 4.8ha site of the project emulates some of the well-known waterfront destinations in Australia, the Mediterranean and the US.

“This is Penang island’s first service apartment of a truly five-star calibre. Aside from its exquisitely appointed interiors, the Suites at Waterside are unique due to its seafront resort lifestyle concept fronting a vibrant marina,” said E&O Property Development marketing and sales director KC Chong.

He said the Suites at Waterside presents a rare opportunity for those looking for investment in a property, vacation getaway or a retirement home.

Currently, phase one covering 96ha introduces landscaped parks, boulevards and seafront esplanades in a guarded community of terraced, semi-detached and detached homes, condominiums and service apartments, and commercial and retail precincts.

Phase two of the project will consist of 296ha with a cluster of islands emerging offshore, linked via a series of bridges.

Mah Sing - Another commercial project

2007-07-27T21:40:00.000+08:00

Below is the article from The Edge:

KUALA LUMPUR: Mah Sing Group Bhd plans to undertake a RM256 million project, called Southgate Commercial Centre, along Jalan Tun Razak.

It announced on July 27 that the project would be build on 1.92-ha freehold land which it was acquiring for RM52 million or RM250.90 per sq ft from Ninchii Fashion Sdn Bhd.

Mah Sing group managing director Datuk Leong Hoy Kum said the company was targeting corporate and high-end customers, including professionals, investors and entrepreneurs for the Southgate Commercial Centre.

“With the prime address and easy accessibility, law firms, consultancies and advertising agencies are just a few of the professions which could set up office here,” he said. It was also seeking to attract niche boutiques and specialty stores.

Southgate Commercial Centre, modelled after the Xintiandi success story in Shanghai, was conceptualised as an integrated commercial and leisure hub and is expected to be completed in three years.

With its Southgate Commercial Centre, Mah Sing has 14 development projects with a total gross development value (GDV) of RM3.726 billion.

Together with its unbilled sales of RM430 million as at March 31, 2007, the total GDV of RM4.156 billion would ensure earnings visibility for the company for over seven years.

Southgate Commercial Centre was the company’s third commercial development in Kuala Lumpur after its Grade A office development in Jalan Tun Razak and its integrated lifestyle development offering office suites enclosed by a resort style plaza in Mont’ Kiara.

Eupe Corporation Bhd - Goldman Sachs

2007-07-24T18:33:00.000+08:00

Goldman Sachs is in action again :

The Goldman Sachs Group, Inc has emerged as a substantial shareholder in property developer EUPE Corporation Bhd with a 5.72% stake.

A filing with Bursa Malaysia showed that Goldman Sachs acquired 2.2 million EUPE shares on July 11.

The acquisition raised its shareholding to 7.32 million shares.

The Kedah-based company's share price surged to RM1.34 on July 11, riding on the positive outlook for property companies.

Property Sector

2007-07-19T22:37:00.000+08:00

Below is the research report from HDBS:

􀂾 Demand to pick up. We notice the recent trend and incentives by the government is changing the property industry structurally and expect long-term positives occurring in the sector, especially the high-end segment.

􀂾 Untapped foreign market. The lifting of RPGT, easing of foreign ownership and speedy delivery systems are in our view, important and liberal measures taken by the government to improve the attractiveness to the largely untapped foreign demand. The government has a target of at least RM20b foreign ownership by 2010. Early signals such as appreciation in prime land prices, increase in selling prices of high-end properties and high pre-sold sales indicate that our properties, especially the
luxury segment, are due for re-rating.

􀂾 Maintain Overweight. Financially strong developers with strong branding and properties skewed to mid-high end are set to benefit. YTL Land (YTLL MK, PT RM3.30) and Sunrise (Sun MK,PT RM4.90) are our picks for the sector to ride on the property
upcycle.

Mah Sing - Target Prices

2007-07-15T20:32:00.000+08:00

Research houses Macquarie and KAF Seagroatt & Campbell Securities set their target prices of RM2.60 and RM2.75 respectively on Mah Sing. These target prices are adjusted after the bonus issue and stock split undertaken by Mah Sing.

Mah Sing closed at RM2.30 last Friday. Thus, the target prices imply a potential 13% to 19%.

The ex-dividend date of this stock is on 1 Aug 2007.

Northern Growth

2007-07-15T17:41:00.000+08:00

The below property companies have been picked by The Edge, to watch in Penang property play:

1. Sime Darby Bhd - front runner for the job to upgrade Penang International Airport;

2. Equine Bhd - holds a 25% stake in a projects to redevelop 249 acres of prime land currently occupied by the Penang Turf Club (named Penang City Park with an estimated of RM25bil GDV);

3. Oriental Holdings Bhd - owns 118 acres of vacant freehold land on Penang Island, which were acquired many years ago at a low cost of RM10.56 psf;

4. E&O Property Development Bhd - developing Sri Tanjung Pinang and owns 355.58 acres of vacant freehold land in the South West district at a cost of RM120.5mil, or RM7.78 psf;

5. Mah Sing Group Bhd - will develop Southbay Penang which is expected to generate a total of RM1.28mil;

6. Hunza Properties Bhd - a local Penang-based developer; and

7. Sunway City Bhd - owns a 38.61 acres of vacant freehold land in Penang Island and has completed several projects as well successfully.

More ... Glomac Bhd

2007-07-15T09:36:00.000+08:00

There was a negetive article about Glomac, back in May 2007. Some analysts raised their concerns as the group's flagship project - Aman Suria Damansara is nearing completion, no clear project substantial enough to fill the earnings of Aman Suria Damansara for FY2007 to FY2008. It is further reported that newer commercial projects, when completed, may be caught at the wrong end of the office property cycle. An analyst adds: "With the property sector boom in the early cycle and the government launching more incentives to boost the sector, it may be too early to call a 'sell' on Glomac.

For the Financial Year Ended 2007, Glomac recorded a total of RM293mil revenue, with net profit of RM32mil. The revenue is slightly higher as compared to preceding year [RM285mil]. However, net profit is slight lower [RM32mil vs RM37mil]. Glomac has declared a total of 9 sen dividend for both financial years. Net assets per share has increased moderately from RM1.81 to RM1.90.

Meanwhile, Glomac has moved beyond Malaysia. The group has identified some 30 acres in Pune (India), a second-tier city with a population of about six million, to build its first residential projects overseas. This planned project will concentrate on high-end residential homes targeted at the locals.

To recap, Glomac already has investments in Australia and Thailand. Last year, it purchased an office building for A$30.5mil in Melbourne and bought into a Thai company specialising in constructing warehouses. Glomac inked the partnership earlier this year and WHA Glomac Aliance Co Ltd was formed.

WHA Glomac Alliance officially handed a purpose-built pharmaceutical warehouse for Dielthlem Ltd on July 9. It is located on 76,000 sq m of freehold land in Bangkok's Samutprakam province. Two warehouses haven been buily offering some 550,00 sq ft of space. It will be leased to Dielthlam for 15 years with rental to increase by 10% every three years. This has created a good recurring income for the group

At home, Glomac is being kept busy with several commercial projects that are expected to take of next year. Plans have been submitted [Glomac Tower] and the group is confident that it will be start working early next year even with the official freeze on construction of office building in the city. Any developer who wants to put up an office building in the city has to ensure its secures a substantial percentage of tenants who require the space. Glomac's executive vice-chairman, Datuk Richard Fong confirms that Glomac has secured some 'big tenants'. Glomac is looking at some banks from Middle East taking up the space. This is by virtue of its partnership with Al Batha.

Lastly, Glomac would prefer to look at India for the time being, rather than IDR or Penang.

Closed at RM1.69 last Friday, should it be a cheap entry for a small property company which has exposure/venture into overseas - Thailand, Australia and India?

Glomac Berhad

2007-07-13T22:03:00.000+08:00

Glomac looks interesting to me after this week correction. It closed at RM1.69 this week, a pull back after it hit the highest price at RM1.81 on Tuesday.
2 major projects from Glomac - Suria Stonor and Glomac Tower set to be another milestone from the developer. Both projects will be the additional landmarks in KLCC area.

Glomac Tower

Glomac and Al Batha Real Estate Co have established Glomac Al Batha Sdn Bhd to spearhead the development of the Grade A office tower which will be located at the corner of Jalan Pinang and Jalan P.Ramlee. The 40-storey tower which includes two levels of food and beverage facilities and four basement car park levels is scheduled for construction in the first quarter of 2008.

The construction of the tower, which has an estimated gross development value of RM 450 million, will take approximately 30 months to complete and will be boost in confidence for investors from the Gulf region.

Al Batha Real Estate vice-chairman Sheikh Salem Mohammad Sultan Al-Qasimi said, he hoped the relationship with Glomac would lead to more property developments here. Glomac has a 51% stake in the joint venture.

Surio Stonor

Suria Stonor is an exclusive condominium development that combines the space and ambience of a bungalow with all the conveniences of modern living.

Located in an oasis of serenity in the heart of the city within the Stonor Enclave, Suria Stonor offers some of the most generous living spaces within the vicinity of the Kuala Lumpur City Centre. Each of its 138 freehold residences, comprising triplex penthouses, duplexes and condominiums, offers a built-up that ranges from 3,000 sq. ft to over 8,000 sq. ft.

Sales in Suria Stonor have continued to climb higher. The project is now almost 80% sold, and it is on schedule for completion in April 2008. The pricing is now about RM1,000 per square foot, which is reflective of the current pricing for high end condominiums in the vicinity of the city centre

Mah Sing - Capital Group

2007-07-13T21:53:00.000+08:00

Filing to Bursa Malaysia shows that Capital Group has acquired Mah Sing aggressively from 5 July to 9 July. They have acquired a total of ~11mil shares during these trading days.
After the acquisition and bonus issue (1 for 5), Capital Group holds ~59mil shares of Mah Sing. The recent acquisition by Capital Group shows their confidence in Mah Sing Group?

Nextnation - Receivables

2007-07-10T18:13:00.000+08:00

Finally, nX CEO PY Tey came out and explain the high receiables of the company. It was reported in The Star.

I have two questions:

1. If the cash flow is strong, why do they need to accept the credit facility?
2. If the likelihood of default payment was not strong, why they made provision of doubtful debts in last quarter result?

Nextnation - Revolving Project Loan of RM10mil

2007-07-09T20:03:00.000+08:00

Announcement to Bursa Malaysia, from Nextnation shows that Nextnation has accepted a Credit Facility:

The Board of Directors of Nextnation Communication Berhad ("Nextnation" or "the Company") is pleased to announce that its wholly-owned subsidiary company, namely Nextnation Network Sdn. Bhd. ("Nextnation Network" or "the Borrower") had on 9 July 2007 accepted a Credit Facility i.e. a Revolving Project Loan of the principal amount of up to RM10.0 million only ("the Credit Facility") granted by Malaysia Debt Ventures Berhad for the Group's overseas expansion.

The Credit Facility is secured by corporate guarantee from Nextnation and the Borrower's certain assets.

Is this an indication that nX is running out of cash? Or they will be awarded a major project from overseas?

Looking at the current cash balance of the company, it is really worrying ....

YTL Land & Development

2007-07-08T21:57:00.001+08:00

YTL Land has continued to surge higher in last week. It was opened at RM1.80 on Monday and closed at RM2.38 on Friday, the stock's 52-week high. As a reminder, HDBS has pegged YTL Land's target price at RM3.30, substantially above last Friday's closing price.

YTL Land's key landbanks include Lake Edge in Puchong, with about RM100mil GDV left; Pantai Hillpark (RM800mil GDV left and a 294-acre area in Sentul with a GDV of about RM17bil remaining.

Meanwhile, YTL Land has released the advertising 'teasers' for its d7 project, its first commercial development in Sentul East, with a GDV of about RM80mil.

HDBS forecasts YTL Land's net profit for FY2007 to be RM16.1mil, which is more than 50% lower than FY2006's net profit of RM45.9mil. However, forecasts for the company's net profit in FY2008 and FY2009 to pick up to RM55mil and RM148.3mil respectively.

Adventa Bhd

2007-07-08T21:42:00.000+08:00

Adventa Bhd has been picked as one of the hot stocks in this The Edge.

Below are the information from The Edge:

Technical support : Long term - RM1.20; Short term - RM1.50
Technical resistance: Long term - RM3.20; Short term - RM2.10

Dealers say CEO Low Chin Guan's recent statement that the company's output of surgical gloves from several new production lines were sould out caused the counter to spike. A dealer says latecomers should take the oppurtunity to move in when the counter sees a correction.

Adventa Bhd

2007-07-04T19:58:00.000+08:00

Adventa Bhd involves in manufacturing and distributing of healthcare products. It looks interesting according to Kenanga Research, with a target price of RM2.48 Adventa closed at RM1.70 today, add on another 7 sen.

Below are the major points from the research report:

Glove manufacturer with a difference, being only a handful of manufacturers capable of making a meaningful entry into the high end surgical glove market. First Malaysian company to be TUV certified since 1997 which can count upon reputable clients including John Hopkins Hospital of USA and large Group Purchasing Organisations;
Aggressive capacity expansion should see output rising from 2 billion pieces to 3.5 billion by FY09, a 34% CAGR increase;
High barriers to entry for the surgical glove segment, unlike the normal examination glove where requirements are demanding and qualification time consuming. Surgeons “stickiness” to a particular brand can pose a huge barrier for new aspirants. With quality and competitive pricing, the Group has been able to make successful inroad into this segment under OEM and their own brand basis;
Foray into Uruguay should bear fruits in the medium term. Cost advantages couple with the ability to provide a higher level of service to a market size of 500m in terms of population is an opportunity not to be missed. The South American production facility allows for the scaling of the tariff wall and cut short the lead time for customer order to eventual receipt of the goods; and
Compelling valuation at 6.3x FY09. Fair value of RM2.48 based on 6.5x FY09F (January year end) represent a 25% discount to the market average of 12.8x. The discount is mainly to account for its smallish size and the execution risk with its overseas forays. With increase investor familiarity and proven execution, the discount factor can and will be narrowed. Buy with an upside of 52% from the current RM1.63 level.

Lastly, Adventa has been delivering consistent quarterly financial performances as well:

Mah Sing: Premier Lifestyle Developer

2007-07-03T20:22:00.000+08:00

Finally, Mah Sing has upgraded their website. Frankly speaking, the website prior to this upgrade was a bit lousy and did not match with the image of the company - Premier Lifestyle Developer.

Now, we can check the series of property development from Mah Sing easily in the website - Perdana, Residence, Legenda and Commercial.

Perdana

It is synonympus with well-planned lifestyle townships. The townships would be self contained yet easily accessible. Generous, well maintained central parks will become community focal points. It is priced between RM200k to RM700k.

Residence

The trend-setting Residence series will appeal to those who aspire to better living. Thoughful details in both the interiors and exteriors of the homes will be characteristics of these boutique developments. Extensive landscaping including green perimeter buffers, manicured and courtyards will add to the spacious airiness, allowing the project to blend seamlessly with nature. It is tagged between RM700k to RM1.3mil.

Legenda

The luxurious Legenda series is the elites, the creme de la creme who reward themselves with a home in a prestigious, prime location. Manicured landscaping and lush geenery creates a revitalizing ambience for wholesome living. Smart home features enhance comfort and convenience, while state of the art security features ensure tranquility unperturbed by the outside world. It starts at RM1.3mil.

Commercial

It is in prime locations in the economic hotspots of Malaysia. Grade A office building, resort offices with innovative themes to enhance new business lifestyles. Live, work and play. An irresistible investment opportunity for discerning investors.

YTL Land: d7

2007-07-01T23:55:00.000+08:00

I saw YTL Land d7 Sentul East advertisement in this week The Edge. I went to the website and found that it is quite unique. d7 Sentul East contains duplex office, retail and F&B.

Some of the features of d7:

- cutting-edge duplex offices with exclusive bridge unites
- half sculpture, half workspace
- 10 mins to KLCC and Mont' Kiara
- 45 mins to KLIA
- next to Sentul KTM Komuter & LRT stations
- wireless broadband
- freehold

This should be the starting point of the entire development in Sentul area. YTL Land has a big plan for this area according to the research report from HDBS. YTL Land closed at RM1.80 last Friday. This represents a potential upside of 83% according to the target price set by HDBS, RM3.30.

CIMB Top Picks

2007-06-30T13:37:00.000+08:00

Below are the top picks from CIMB:

Target Price (RM)
Air Asia 2.45
AMMB 5.35
Gamuda 8.75
Hunza Prop 4.50
Kencana 2.20
KL Kepong 14.50
Maybank 15.30
MRCB 3.15
SP Setia 10.00
Tenaga 15.00

Meanwhile, CIMB also set KLCI target at 1,7000 points in the next 12 months. I notice that the target prices are not attractive by looking at their current prices. Is this an indication the uptrend is limited now?

Mah Sing: Sea Villas

2007-06-30T13:29:00.000+08:00

Below is the article in The Star:

Mah Sing Group Bhd has proposed to build sea villas as an added attraction in its Southbay Penang project.

Managing director Datuk Leong Hoy Kum said Mah Sing was in the process of submitting its application to develop these villas.

Speaking after the company AGM yesterday, he said should it be given approval, it would be a first in Penang.

He also said Southbay’s current gross development value (GDV) of RM1.28bil did not include the proposed sea villas, which would be built on the seabed.

“Southbay’s target market includes local and foreign investors who are keen to invest in high-value commercial properties,” he said.

Southbay’s residential developments, Legenda@Southbay Penang and Residence@Southbay Penang, are set to be launched in the first half of 2008, to be followed by commercial properties.

Also included in its target market for Southbay were participants in the Malaysia My Second Home programme, Leong said.

The foreign investors interested in Mah Sing’s properties were from South Korea, Japan, the Middle East, Hong Kong, the US, Singapore and Europe, he said.

Leong also said the group was keen to lure institutional investors, as Malaysia’s property sector was attractive due to its prices being among the lowest in the region.

On overseas markets, Leong said Mah Sing was discussing with some parties in Vietnam to venture into residential and condominium development within Ho Chi Minh City, and also exploring opportunities in Doha.

“But, we are in no hurry to venture overseas. We are evaluating opportunities and, if we do go abroad, we want to ensure minimal capital outlay,” he added.

On the Icon development in Jalan Tun Razak, Kuala Lumpur, Leong said Mah Sing was keen to retain one of its blocks to ensure recurring income.

Mah Sing would capitalise on the low supply of semi-detached houses and bungalows in the Klang Valley, he said.

He added that of the total residential supply (in the Klang Valley), only 5% consisted of these types of residences.

Also, Leong said, Mah Sing was keen to further boost its commercial and office property sector due to its high growth potential.

Based on studies from Regroup Associates, it is estimated that buyers outnumber sellers by as much 15:1 in certain (commercial) developments.

With this high demand, it had set a target price of about RM900 per sq ft for Grade A offices in Kuala Lumpur within two years.

To date, Mah Sing has 13 developments and, with unbilled sales of RM430mil as at March 31, bringing its total GDV to RM3.9bil.

Net Loss for Nextnation in Q4 result

2007-06-29T18:44:00.000+08:00

nX posted a net loss of RM251k in Q4. It is very bad as I do not expect a growing company like nX will register a quarterly net loss.
It is worrying as they do not disclose how much they spent for upgrading the systems and the most important point is they provided doubtful debts. In other words, the trade receivables will not be all collected eventually.
By comparing this quarter (Q4) against last quarter (Q3), revenue recorded has decreased from RM28mil to RM21mil while operating expenses remain almost the same RM22mil vs RM21mil. Another disappointed point is the loss before tax incurred in other countries, which is amounted to RM7.7mil. This is arrived even though nX recorded a total of RM44mil from the operations in other countries.
The qtrly result is badly impacted when the management provided doubtful debts expenses. It is to first time they done it and we do not know will they provide this again in the future. We also do not know when the upgrade of systems will be completed as well. No dividend is proposed since the cashflow is weak and disappointing as well.
In the mean time, I am wondering how much the share price will drop on Monday. Hopefully the current low price has reflected the bad current quarter result. This is the worst investment I ever made. Are you going to hold on? I am calculating how much I can get back by disposing it for future investment.
nX, good bye and I wish you all the best in the future.

YNH Property Bhd

2007-06-28T21:33:00.000+08:00

Below is the article about YNH Property in The Star:

YNH Property Bhd's share price has fallen 50 sen over the past three days on reports that a proposed joint-venture agreement with Singapore's CapitaLand Ltd has lapsed, which was confirmed by the latter yesterday.

However, YNH is confident the development of Menara YNH in Jalan Sultan Ismail, Kuala Lumpur, will proceed as scheduled despite the exit of CapitaLand.

According to YNH chief financial officer Y.M. Chan, the company will launch the project this year and expects it to be completed in 2011.

The approvals from the authorities are expected in the next two to three months.

Last December, YNH's wholly-owned unit Kar Sin Bhd entered into a memorandum of understanding (MoU) with CapitaLand Commercial and Integrated Development Ltd to jointly develop the commercial project beside the Shangri-La Hotel.

YNH was to have a 60% stake in the joint venture.

In a joint statement on the deal, the two companies had said further details would follow approval from the authorities.

But, in a statement yesterday, CapitaLand said the joint development with YNH had been called off. It said the MoU to build an office tower in the Golden Triangle of Kuala Lumpur “has lapsed due to non-fulfilment of the conditions precedent”.

In an announcement to Bursa Malaysia, YNH said the deal was off and it would develop the project on its own.

It is understood the dispute was over the value of the 133,000-sq-ft land of the project.

According to Chan, a few other potential partners had shown interest in the project and that the company would consider their proposals.

“Based on our strong cash position, and with the support of financial institutions, we may decide to undertake the project on our own,” he said.

He said a number of global real estate and private equity funds had shown interest in buying the building en bloc.

“Going by the strong interest and the high expected yield of 7% per annum, we have raised the price of the building to RM1.5bil from RM1bil,” Chan said.

The office tower with a net lettable space of 1.1 million sq ft – of which 10% is retail space – will cost RM500mil and provide an expected gross margin of 38% to YNH.

To ensure top quality and premium value, Chan said a reputable contractor, preferably from Japan, would be engaged to work alongside YNH's in-house construction arm to undertake the project.

YNH shares ended yesterday 15 sen lower at RM2.80.

YNH continued its downtrend today as it gave up another 10 cents. I believe recent drop of share price is due to over reaction by the investors. Although the JV agreement has been called-off, there is no major impact to the company at the moment. Furthermore, YNH has explained that they will be able to develop the office tower themselves or with the other partners. As a result, I believe it is a good chance to buy into YNH at the current price.

G.K. Goh Holdings Limited - E&O

2007-06-26T20:25:00.000+08:00

While Goldman has been disposing E&O recently, it appears that G.K. Goh Holdings Limited from Singapore has purchased E&O shares from 18 June to 20 June. Filing to Bursa Malaysia shows that G.K. Goh Holdings Limited has purchased a total of 1.5mil shares during the period. After the acquisitions, G.K. Goh Holdings Limited has accumulated a total of 73,049,699 shares of E&O, which represets 19.14% of E&O.

By checking the historical prices of E&O, it was traded between RM3.00 to RM3.12 during the period. I was wondering what has triggered G.K. Goh Holdings Limited to make the purchase. Thus, I have checked the share price of E&O Prop. During these 3 days, E&O Prop had a great breakout where it was traded from RM3.80 to RM4.34.

It would be great if G.K. Goh Holdings Limited continues to buy in E&O as it can provide the support to the share price when Goldman continues to dispose their holdings.

Goldman Sachs - E&O

2007-06-25T21:22:00.000+08:00

Filings to Bursa Malaysia show Goldman Sachs has disposed E&O shares consistently recently. The details of the disposals are as follow:

Date & No of securities
11/06/07 - 100,000
12/06/07 - 100,000
13/06/07 - 60,000
14/06/07 - 31,000
15/06/07 - 5,000
18/06/07 - 300,000
19/06/07 - 300,000
20/06/07 - 500,000

After the disposal, Goldman is still holding 27,369,300 shares (7.17%). As Goldman continues to dispose E&O, I believe it would be difficult for E&O to have any breakout from it's trading range in the near term. E&O has been trading around RM3.00 a few weeks. I would consider E&O is lucky enough if it can hold around RM3.00 while Goldman continues to sell off.

Green Packet: High Receivables

2007-06-24T16:47:00.000+08:00

It is not the first time GPacket's CEO, Puan Chan Cheong comes out and explains about the company high receivables. FY2006 receivables jumped 155% year on year when the revenue jumped by 151%. It is contributed by the high growth rate GPacket enjoys, which means that receivables would rise accordingly.
Puan also mentions that the major receivables for the group are from the big names like China Telekom, Hewlett-Packard, Lenovo, Dell, Sony, RHB Bank and Samsung. Looking at the profile of its trade debtors, it is almost impossible they will not pay to GPacket for the services rendered and goods sold. It should be a another relief for the investors as Puan has came out and explained further about the high receivables.
Meanwhile, four out of five analysts polled on Bloomberg are still calling a 'buy', with target prices raning from RM4.90 to RM6.40. At last Friday's RM4 close, the lower range of analysts' target prices implies a potential upside of 22.5% at least.

Green Packet Berhad

2007-06-22T21:17:00.001+08:00

Green Packet's stock price has decreased consistenly from RM5.00 until today's RM4.00. With reference to today closing price, it has almost hit the lowest end of day price in the last 3 months.

It's stock price has increased sharply from the lowest price at RM4 to RM5 recently before it drops back to RM4 again today. The previous decrease is mainly due to the below expectation Q1 result. After that, there was speculation that DiGi may buy into Green Packet and they will work together to roll out WiMax facility. It has pushed the stock price went back to RM5. However, there was nothing happened and the stock price has been dropping back to RM4 level recently.
I believe Green Packet needs to release some positive news or developments in order to make the stock price goes up again.

Nextnation

2007-06-22T20:41:00.000+08:00

Finally, the stock price of nX has increased 2 cents after it has been dropping into the down trend zone for a few weeks.
nX is due to release its Q4 result by next week. I hope this is an indicator where nX will post another impressive quarterly result.

While I am waiting for the Q4 result, I will continue to monitor the substandial shareholders changes in Bursa Malaysia website. With reference to Megan and Transmile cases, the founders and major shareholders disposed their stakes before the issues came out. As a result, I would think any movement made by the major shareholders would be another important and major indirect indicator in nX.

YTL Land

2007-06-22T20:18:00.000+08:00

Below is the research report from HDBS:

YTL Land: The third leg of luxury condominium golden triangle (Initiating with Buy; RM1.56; YTLL MK)

􀂾 Story: YTL Land & Development Bhd (YTLL) has the largest tract of prime land near KLCC and Mont’ Kiara. Measuring 294 acres, it is a self-contained enclave that is divided into two unique but distinctive areas named Sentul West and Sentul East. In its masterplan, YTLL plans to build 4,000 luxury condominiums in Sentul West and 3,000 condominiums in Sentul East.

􀂾 Point: We believe YTLL’s Sentul development is the up and coming address in Kuala Lumpur. Recent positive measures by the government have already seen property prices rise in Mont’ Kiara and KLCC. Sentul, which is located smack in between Mont’ Kiara
and KLCC, should generate more interest and price appreciation in time.

􀂾 Relevance: We are initiating coverage on YLLL with a Buy recommendation, ascribing a RNAV-based TP of RM3.30. YTLL’s focus on high-end properties will benefit from recent positive measures by the government. We believe the stage is set for YTLL
to leverage on and be more aggressive project launches, especially its Sentul projects.

Nextnation: Relief .. Positive News from Ozura

2007-06-21T21:01:00.000+08:00

Nextnation's wholly owned subsidiary, Ozura has released a positive press with the title - Breaking into the Chinese Mobile Space.

Ozura has managed to enter China mobile market, which has more than the populations of Japan and U.S combined. The entry was done by parterning with Chinabyte. Both companies are working together in running MOSTAR, China's first and exclusive tournament based mobile gaming community portal.
Ozura is now working with Chinatec, Inc, a Chinese based mobile content provider engaged in multi-lateral mobile game licensing authorizing across Asia, in order to acquire more licenses to launch branded content in MOSTAR. Chinatec has lined up numerous celebrities activities throughout the years and we have geared up ourselves to launch these branded games in conjunction with their advertisement and promotion.
Moving on, Ozura is scheduled to release FunlogiXT 2.0 in the fourth quarter this year with more added features that scalable, adaptable, distributed, self-dependent and performance.

E&O vs E&O Prop

2007-06-20T20:54:00.000+08:00

Finally, the major gap between E&O and E&O Prop has appeared in these few days. E&O closed at RM3.08 while E&OP closed at RM4.20 today.
E&OP has surged from RM3.60 to today’s closing price in recent weeks while E&O continues to trade at RM3.00 range. Besides that, Putra Perdana (another E&O 51% owned subsidiary) is closed at RM2.11 today.
As E&OP has increased about another RM0.60, I believe E&O should be following the uptrend which enjoyed by E&OP soon. Looking at current situation, E&O remains undervalued with the investors do not value any single cent for E&O’s holding in Putra Perdana and its hotel operations.
The trading volumes of E&O for the last few days have increased as well. While the sellers remained high, there were parties bought in aggressively as well where it hit the highest point at RM3.12 today.

This should be another easy money opportunity as long as E&OP continues to trade at above RM4.00 and Goldman Sachs does not dispose E&O in bulk.

Mah Sing: CIMB - Target Price: RM6.50

2007-06-19T21:34:00.000+08:00

Below is the research repot from CIMB:

Mah Sing update – Geographical diversification complete

The recent acquisition of 87 acres of land bank in Penang completes Mah Sing's geographical diversification in all three major property markets in Malaysia. The Penang land comprises only 14% of the group's 650-acre land bank but makes up 37% of the total GDV of RM3.5bn. We have raised FY08-09 earnings forecasts by 3% as contribution from Southbay Penang will offset slower-than-estimated sales from the recently launched Cheras and Johor projects. Our target price, however, has been raised from RM6.00 to RM6.50 as we now value the stock at the sector 2008 P/E of 16x, instead of a 20% discount to the previous target sector P/E of 18x. We maintain our BUY call. Re-rating catalysts include further value-enhancing land bank acquisitions and improved liquidity from the upcoming share split and bonus issues.

Mobile Messaging Service Providers

2007-06-18T21:33:00.000+08:00

I found this interesting article in The Edge Daily website. Should Malaysia Goverment do the same thing?

18-06-2007: SPs unhurt by China rule

Four Malaysian mobile messaging service providers (SPs) which have substantial businesses in China do not expect the Chinese government's new ruling for the industry to adversely affect their operations on the mainland.

The new ruling, which comes into effect in November this year, involves the introduction of a unified short message service code (SMS), or short code, for service providers in China, and a more stringent code of conduct for the SPs.

The four companies are Green Packet Bhd, mTouche Technology Bhd, AKN Messaging Technologies Bhd (AKN MTech) and Macro Kiosk Bhd.

mTouche chairman and group chief executive officer Eugene Goh said the use of a new short code would not harm the operations of its 40%-owned associate GMO Global Ltd, as it was just a matter of changing to a new code.

"The greatest impact would be on those (SPs) which brand their short code, such as one with a short code of 8888," he told The Edge Financial Daily via telephone last Friday. GMO Global is also 40% owned by Green Packet.

mTouche chief operating officer Tan Wee Meng said a unified short code would benefit the players in the long run, as it would be easier for them to do marketing and promotions.

China's Ministry of Information Industry (MII) had been planning to take over the management and issuance of short codes from the telecommunications companies (telcos) since 2005.

At present, the four largest telcos in China — China Mobile, China Unicom, China Telecom and China Netcom — issue their own short codes to SPs.

In addition, each province in China has a different short code, which caused considerable inconvenience for the SPs as well as their subscribers.

With a unified short code, these SPs would only need to apply to the MII for their own short code that can be used nationwide.

MII's proposal aims to avoid the problems caused by different codes provided by the various telcos, apart from rationalising the mobile messaging industry by filtering and removing SPs that operate illegally. The SPs have until Oct 31to switch to their new code.

However, there are concerns that the SPs may lose their customer base that use old codes, as there is uncertainty whether customers would be able to migrate to the new code. The transformation process also takes time, which may affect the SPs' revenue and earnings.

AKN MTech managing director Lim Seng Boon said the new ruling would help "clean up" the mobile messaging market in China, referring to spam SMS.

"In the long term, (a regulated market) will reduce consumers' phobia in using the services, and will give confidence to consumers.

"However, there is a possibility that service providers may lose their customer base, and they will have to start all over again to get new customers," he said.

However, mTouche's Tan said losing existing customer base was not definite. "They are still fine-tuning the system to migrate the customers to the new code."

Macro Kiosk CEO Kenny Goh said the unified short code would enable easier marketing and promotions, and mobile users would find it more convenient. "There will be minimal impact on our bottom line as only a small portion of our China revenue comes from subscription-based services. Unified short codes mainly affect subscription-based services," he said.

He added that Macro Kiosk, whose major shareholder is Main Board-listed Goldis Bhd, had been in China for three years, and would expand its presence beyond Beijing and Shanghai with the launch of the unified short code.

"This will indeed be good for the market as Macro Kiosk is poised to roll out more services in the months ahead," he said.

Meanwhile, Green Packet group MD and CEO Puan Chan Cheong said the company was not affected by the new ruling. "But it would be beneficial for our associate company, GMO Global Ltd because they are in this space," he added in an email reply.

BCT Technology

2007-06-18T21:08:00.000+08:00

Below is the reseach report from HDBS:

BCT Technology: Successful 12.2m shares private placement (Buy; MYR1.07; BCTT MK)
BCTT announced last Friday that it had successfully placed out 12.2m new shares at RM1.00 per share, representing 5.6% discount to its 5-day VWAP (volume-weighted average price) of RM1.06.
This is 6.5% discount to its closing price of RM1.07 on Friday. Funds raised from this placement would be used for working capital that would potentially lead to earnings upgrade. Additionally, we expect news flow from BCTT with respect to its growth strategies – organically or via M&A.
As such, we maintain our Buy call on BCTT with a price target of RM1.70, which is based on 8x FY08 EPS.

E&O - RM1b property portfolio

2007-06-18T19:34:00.000+08:00

According to The Edge, E&O plans to assemble an array of properties worth RM1bil that it hopes will give it a steady recurring income.
Executive Director, Eric Chan says that this move will reduce the dependence of income generated by E&O Prop. The creation of a property investment portfolio would add more depth and generate returns at E&O level.
E&O remains undervalued due to its status as a holding company. E&O's market value is RM1.11bil while its 64% stake in E&O Prop alone is worth RM1.5bil.
For your information, E&O has proposed to dispose of up to 90mil shares, represents 13.8% stake in E&O Prop and its entire 50.8% stake in Putrajaya Perdana Bhd. The proceed may be used to fund the property investment portfolio.
E&O itself is developing an office tower project on the 1.15-acre site, in downtown KL. The development cost is about RM150mil and the project is not for sales will go into the property investment portfolio.
Adding to this will be a retail component at the marina of STP which will eventually be sold by E&O Prop to E&O. There will be another shopping mall for lease to Tesco near STP project as well. It will be sold to E&O as well.
Eric Chan also says that E&O is expecting a return of RM80mil or more a year and this should be good enough by considering E&O's net profit was RM60.9mil last year.

Meanwhile, E&O closed at RM3.02 with high volume today. E&O Prop hit it historic high at RM4.06 but failed to sustain and closed at RM3.86 today. E&O looks interesting at this point of time. However, there is another factor to consider where Goldman Sachs has disposed some E&O's shares last few days.

In short term, E&O will continue to depend on the income generated from E&O Prop ...

Mah Sing: Hijauan Residence

2007-06-17T23:44:00.000+08:00

I saw this advertisement in this week The Edge:

It is the latest project launched by Mah Sing. It looks really nice ....

LCL Corporation Berhad - Goldman Sachs

2007-06-17T09:17:00.000+08:00

Filing to Bursa Malaysia shows that Goldman has emerged as the substantial shareholder of LCL. Goldman bought 900,000 shares on 7 June 07. After the purchase, Goldman has 2.3mil shares, represents a total of 5.52% in LCL.

LCL was traded between the range of RM4.66 to RM5.10 on 7 June 07. LCL closed at RM5.95 last Friday. Perhaps we can buy in if there is a correction in LCL where the price will come down a bit?

RCE Capital

2007-06-16T19:38:00.000+08:00

Below is the article publised in today's The Star newspaper. Short term target is RM1.20 while the next projection is around RM1.40-RM1.50. Meanwhile, Oriental Business also published an article about RCE and target price is RM1.33 from an unnamed analyst. Base on the short term target price, an investor would be able to enjoy ~20% return. RCE should a rising star for 2007. Goldman Sachs is another important factor that has raised the profile of RCE.

RCE Capital Bhd has been on the steep upward momentum on persistent follow-through buying interest over the past several months, navigating the shares into the unknown territory to establish a fresh all-time high of RM1.01 during intra-day session yesterday.

Based on the daily bar chart, prices had climbed quite substantially since staging a major breakout of the 52 sen level sometime in February, but they show no sign of abating just yet, at least for now.

Perhaps, investors who are already in it can consider holding on to their shares for more capital gains.

Technically, the oscillator per cent K reversed upward from the neutral zone and crossed over the oscillator per cent D of the daily slow-stochastic momentum index to trigger a short-term buy on Thursday.

Similarly, the 14-day relative strength index headed higher towards the bullish territory.

In addition, the moving average convergence/divergence indicator continued to expand positively against the signal line.

On the back of the bullish reading, prices are likely to move forward, targeting the RM1.20 mark in the short-term.

The next upside projection is seen around the RM1.40-RM1.50 band.

As for the downside, initial support is anticipated at 95 sen. An additional floor is pegged at the 90 sen level.

Salary play

WHILE civil servants are celebrating an upcoming salary revision, companies such as RCE Capital Bhd are rejoicing as well. The company, which has its mainstay in the provision of consumer credit facilities for Government servants seems a likely beneficiary of the pay hike.

According to research house Aseambankers, RCE Capital’s loans book has grown substantially over the past few years. As at March this year, RCE Capital’s principal amount of its total loan was about RM500mil, up from less than RM70mil in 2002.

Aseambankers says, “With the regulated personal loan and consumption credit market in Malaysia worth approximately RM25bil, this implies tremendous opportunity for RCE Capital to grow its market share and loans book further. And, given higher consumption power that could be derived from an upcoming salary revision in the civil service, we expect RCE Capital’s position to strengthen significantly.”

Mah Sing: The Icon @ Tun Razak

2007-06-16T12:36:00.000+08:00

According to the research report from Aseambankers, The Icon, located along Jalan Tun Razak, which is five minutes away from the Petronas Twin Towers, will comprise two 20-storey office block, is close for sale soon.

The selling price is expected to set a new benchmark around the KLCC area, with an asking price of more than RM600 per sq ft. The costruction work is expected to commence next week. It is the debut for Mah Sing in commercial building. The completion of each tower block is expected to take only 18 to 24 moths as super-structure work can be completed quickly.
The management is expecting good margins of between 30% to 36% for this project. As previously reported in other research report, there is a shortage of Grade A offices at KLCC area and I believe Mah Sing would be able to benefit from the current situation.

SMS Scam

2007-06-15T21:05:00.000+08:00

As most of the nX's investors are aware, 2 subsidiaries of nX were in the list MCMC for non-compliance issues.
After doing some surfings in the internet, I found 2 interesting blogs, writting about this issue. The first one is Screenshots and another one is antijeffooi.

Both of the bloggers are having war against each others and you may read them out when you are free. You will gain a lot of knowledge about SMS but I am not sure how true and accurate is for the scam mentioned there.
nX is less being mentioned in the blogs as the main 'agenda' is about MacroKiosk.
Who is right and who is wrong? I have no idea and I will continue to support and believe the management team of nX.

Mah Sing: Rights Issue status

2007-06-15T20:49:00.000+08:00

Mah Sing Rights Issue is oversubscipted by a total of 56.24%. You may refer to the below table further information and this can be found in Bursa Malaysia website:

This situation indicates the high confident level that the current shareholders have towards the future of the company. I believe it can go further under the management and leadership of Datuk Leong. This is boost by the efforts from the government in promoting properties sector in Malaysia.
Did you submit for the excess applications? I did and the chances for me to get it is almost impossible now ....

RCE crossed RM1

2007-06-15T20:37:00.000+08:00

Finally, RCE broke RM1 level this morning. However, it could not sustain and closed at RM0.965.

With reference to the research reports from S&P and Kenanga, there is a huge potential for RCE in the medium term. They rate RCE as a 'buy' with target price of RM1.05 and RM1.20 respectively.
RCE could reach the target price of Kenanga in the medium term as long as there is no sudden crash in the market.

Mah Sing: Southbay Penang

2007-06-14T20:59:00.000+08:00

According to The Edge Daily website, the proposed acquisition of lands by Mah Sing Group is in Batu Maung area. It will be a mixed developement, comprising commercial and residential components. It is expected to be completed in five to seven years.
Managing Director Datuk Leong said it is just 10 minutes from Penang Bridge via the highway and only five minutes from the proposed second Penang Bridge. Mah Sing plans to introduce up-market Lagenda@Southbay and Residence@Southbay. The other major point is the group plans to cooperate with institutional investors to develop hotels which optimise its location.

Personally, I think the proposed second Penang Bridge plays an important role to ensure the first development at Penang by Mah Sing will be successful. I would say Batu Maung area is not that really 'prime' at the moment as there is nothing much major development. There is not major hotspots as compared to E&O's STP (Gurney area) or IJM's condominium projects along Jelutong Express Way and Tesco area.

However, it should be a good move for Mah Sing into Penang market where the land is a scarce resource. The next phase of developments in Penang should be at south area since the town area, Gurney area and Batu Feringghi area are almost developed. SP Setia and IOI Properties have projects at south area as well.

Lastly, Aseambanker is considering to upgrade the target price for Mah Sing ..

Please Welcome Mah Sing To Penang

2007-06-13T23:07:00.001+08:00

Finally, Mah Sing has proposed acquisition of Prime Freehold Land measuring approximately 351,251 square metres (86.78 acres) in Penang via its Subsidiary Companies, Vienna View Development Sdn Bhd, Enrich Property Development Sdn Bhd and Vienna Home Sdn Bhd from Kembang Biru Sdn Bhd For Total Cash Consideration of RM115.75 Million or the equivalent of approximately RM30.61 per square foot

The management team is yet again to deliver their promise. People from Penang will be able to enjoy quality homes from Mah Sing. Looking forward for the coming projects at Penang.

Green Packet Berhad

2007-06-12T21:55:00.000+08:00

Filing to Bursa Malaysia shows that OSK Ventures International Berhad has disposed off 3,000,000 shares of Green Packet on 6 June and 7 June. However, OSKVI still holds 16% of GPacket after the disposal.
Is there any hidden indicator in the disposal?

mTouche

2007-06-12T19:26:00.000+08:00

Below are the recommedation and valuation from Kenanga on mTouche:

The Group is targeting 1.0m-subscriber base (less than 1% of Japan’s mobile phone population) at a subscription charge of around USD3/user/month, which is in line with the market’s average mobile value-added service fee. That will translate into a revenue of USD3.0m per month should the target be achieved. In a recent meeting, MTB’s management hinted that the group would focus on expanding organically and consolidating its existing operations. Until M-Bit and the push of mobile value added services in new markets and interactive TV ventures abroad prove themselves, we are maintaining our FY07 and FY08 earnings forecasts.
As such, we are maintaining our HOLD-rating on MTB with a revised 12-month target price of RM1.99 (-2.9% from RM2.05 earlier), which is based on industry average FY07 P/E of 7.0x. Limited earnings visibility remains our biggest concern going forward.

Looks like mTouche has to depend heavily on their new software 'M-Bit Network' for greater future earnings. M-Bit is the first global P2P Search and File Super-Distribution network that allows the sharing of content files between mobile phones via transmission over wireless mobile networks.

I am not sure about the mobile phone users at Japan. In my opinions, this is not going to work at local market. Our market is not yet developed until such a lavel where we need to rely on this type of network to transfer our contents.

'Uncertainty' is the best word to describe mTouche at this moment ...

Sunrise Bhd

2007-06-12T18:58:00.000+08:00

There are a total of 3 research houses covered Sunrise Bhd recently. They are Aseambanker, Hdbs and RHB. Below are the target prices from each of them:

Aseambanker - RM4.62
HDBS - RM4.88
RHB - RM4.27

Major points from HDBS' report:

Sunrise is venturing into developing its maiden commercial development in the city center, agreeing to buy a 1.65-acre land near Jalan Sultan Ismail for up to RM35.0m or RM487psf depending on the approval of Development Order by September 2007. Otherwise, Sunrise would only pay RM25.1m for the land. Sunrise also announced the completion of its disposal of investment assets in Plaza Mont’ Kiara for RM90m to Quill Capital Trust.

We are positive on this considering KL’s shortage of Grade A office space. We believe Sunrise is able to leverage on its strong brand name to sell the new project. The purchase also means the proceeds are immediately put into value accretive land acquisition.

We maintain our Buy recommendation on Sunrise with a RNAV-based TP of RM4.90. The acquisition is expected to complete by 2007 and we believe Sunrise is planning to launch the project earliest by next year.

As HDBS mentioned there is a shortage of Grade A office space in KL area, I would think Mah Sing will be benefit from this situation too since they are ready to develop their first commercial project area too - The Icon @ Tun Razak.

While there was no surprise in quarterly results announced by most of the major players last month, most of the research hourses are confident that 2H 07 would be very exciting for property players after a series of good news and incentives announced by Government in the first half of 2007.

Crisis at Megan and MBF Corp

2007-06-10T20:48:00.000+08:00

The above companies are being suspended at this moment. Megan case is a hot topic recently where it has announced that accounting misstatements in its books go back to its 2005 financial year - by overstate its trade receivables, revenue, cost of sales, inventories and deposits and prepayments. Meanwhile, MBF Corp is facing the possibility of being delisted as SC has rejected its request for more time to fix its financial position after being designated a Practice Note (PN) 17 company a year ago.

In Megan case, it has raised another great concern about the quality of audit report. The external auditor for Megan is not a small or medium audit firm, it is another Big Four - KPMG. They never raised any concern about company's accounts before this. They are the external auditor for Megan since it was listed in 2000. Megan is currently being investigated by SC. If KPMG failed to show that they have actually carried out sufficient audit trials during the audit, should we see actions to be taken against the partner from KPMG who signed off the previos report? Megan is another sinking ship due to not honest management team. I wonder what is going to happen to this company as the top level management key personals have left the company one by one. The worst case is it will be delisted. According to a source, Megan's records for the periods prior to 2005 were 'accidentally destroyed'. It is just another biggest joke in the town ....

It was reported in The Edge that MBF Corp Bhd's suspension is good for the major shareholders and bad for the minority interest. It is mainly due to there is a hidden jewel in the company - QBE Insurance Bhd. Some parties have offered a great price tag to purchase the 49% of QBE which owns by MBF Corp. However, the deal was dropped in April. Everything will be different if MBF Corp had sold QBE as this would help the cash position of the company. Again, I believe this crisis is caused by the management where they do not care about their minority interest. According to The Edge, if Loy (the majority shareholder) makes an offer of 10 sen a base, which is at 25% premium to its share price pre-suspension, he would have to pay about RM17mil for the 60% of the shares he does not own to take over the company. Guess what he will get? It is a total control of the valuable 49& stake in QBE, which is worth close to RM90mil.

Base on the above 2 cases, I would think its very important to look at the management team before investing ...

Master of Maya

2007-06-10T20:36:00.000+08:00

I saw this advertisement in this week The Edge:

It is another effort to introduce mobile gamings to Malaysia mobile phone users and hope nX can benefit from this.

Another important Quarterly Result - nX

2007-06-09T15:57:00.001+08:00

It would be another important quarterly result from nX, which is due in this month (June'07). Although there is no news release reporting the high receivables of the company, it remains a major concern for investors like us. High receivables has became a major highlight with the cases like Transmile, Megan and Nasioncom. Both Transmile and Megan which drop into the troubles (either poor accounting record for Transmile or false accounting records for Megan) have one similarity. Nevertheless, the similarity is they have high receivables balances. As a result, it has triggered many questions among the investors about the situation of nX. It's trade and other receivables stand at 67mil as at 31 Jan 07, increased by 28mil from last year financial report (as at 30 April 2006) which has been audited.

In my opinion, there may have 3 possible situations for nX regarding its high receivables.

1. It is a norm in the communication industry. In other words, all the balances will be collected eventually. I could not find another competitor for comparison. Some may argue that mtouche and AKN Mess Tech do not have such a high balace of trade receivable. However, I would think we are not comparing an apple to another apple in this case. Both mtouche and AKN Mess Tech do not have the growth level like nX. Of course, I think it would be fair to say that AKN Mess Tech is at its downtrend and would not be able to compare with nX at this moment.

2. nX is facing difficulties in collection. They provide platforms and services to other parties and the customers are not able to pay back to them. If this is the case, nX may face a major impact to their financial condition as they need to write off the bad debts. Any write off would definitely give a bad hit to the financial result as trade receivables is the highest current asset for nX. It will result a lower trade receivables which will be transferred to profit and loss account. With a net profit of RM5mil+ per quarter, I wonder how much nX can absorb this ...

3. The worst case is nX also involves in creating false accounting records. Everything is gone if this is real. Nothing else needs to be mentioned other than cut loss by selling off before it is too late.

Personally, I have full confident over the management team. Therefore, scenario 3 is very unlikely in my opinion.

I hope nX will report another impressive quarterly result in this month. My expectations are higher revenue recorded and higher net profit than previous quarter. nX recorded 28mil revenue and 5.7mil net profit in last quarter.

I also hope that CEO Mr. Tey will come out and explain about the high receiveables.Mr Puan from GPacket has done it and why not nX also do the same thing?

Airocom Technology Berhad

2007-06-09T15:18:00.000+08:00

While I was trying to compare nX with it's competitor, I discoverd this company - Airocom Technology Berhad.
Here is some backgroud about the company - It was established on Nov 1990 as software application developer and integrator specializing in SMS solutions.
I believe this is another listed company that should not be touched as I think this company is a joke. Latest quarterly result shows that it has recorded only 56k revenue. I have no idea why this company got listed with this type of track record. A normal not listed company may simply record a higher revenue than Airocom.

In conclusion, it is another lack of quality company listed in Mesdaq ...

Ozura-ChinaByte Mobile Tournament Games

2007-06-08T17:26:00.000+08:00

China's First Mobile Gaming Community which support Mobile Tournament Games is powered by Ozura's funlogiX platform.
I visited the website again recently and noticed that more games were being introduced at the portal, for example, The Duel Online and Gempak (which has been converted to Chinese version. I also found that the forum is quite active with the participations from the gamers.

I would say this portal is quite successful and hope it keeps growing and bring in more revenue to Ozura. Meanwhile, Maxgames, a local mobile games portal has been proven as a great one with so many activities have been carried out by Ozura and Maxis.
Mobile gaming is definitely a booming market where Ozura can continue to tap in other markets by partnering with the content providers or telcos from other countries to run a similar type of mobile tournament in the future.

While blogging this posting, I spent RM6 to try my luck by sending 2 SMS to the game show from Astro, Fun Fun Fun. If there is more and more this type of game show from TV producers, I am sure this is another market where it will benefit Nextnation as they do provide this type of platform.

RCE Capital Berhad

2007-06-07T21:51:00.000+08:00

Kenanga Research gives a buy call for RCE, with a target price of RM1.20. They have issued a total of 9 pages research covering RCE Capital Berhad. If you have access to Kenanga portal, you may go ahead to download and read the report. I would say it is a very comprehensive research report.

Below are some of the highlights from the report:

- Low risk of defaulted payments with automatic salary deduction scheme by ANGKASA

- Effective NPLs of 1.7%. The bulk of defaulted payments due to quirks of the deduction system

- Highly conservative general provision of 8% in FY06 to normalise to 2% with FRS139

- Size & speed of loan payout matter more than interest rate to government employees

- Cost-savings from co-operatives’ distribution system

The operating and business model of RCE is as below:

Eastern & Oriental Berhad

2007-06-07T20:24:00.000+08:00

Filing to Bursa Malaysia shows that Goldman Sachs International (GS) has disposed a total of 720,000 securities of E&O on 29 May and 30 May. This is the first time GS disposed E&O shares in recent months.
After the mentioned disposal, GS still holds a total of 30,255,300 shares, which represents 8.21% in E&O. I noticed that there were many sellers for E&O in today trading.
Is it the time for us to cash out part of our holdings in E&O now? You should note that the market interest has shifted from major players like SP Setia, Mah Sing and E&O to second liners, such as DNP and Equine. However, in my opnion, they appear to be more speculative than reflecting the value in the companies.
I would think YTLLAND, SDRED, PJDEV and DIJACOR are better options for value investing.

Mah Sing eyes Penang market

2007-06-04T21:28:00.000+08:00

Mah Sing is eager to make its presence felt in the robust Penang property market. “We
will consider developing a Legenda residential series if we venture to land-scarce markets like Penang island,” president and CEO Datuk Leong Hoy Kum said.
• This year, the company is looking to purchase two to three pieces of land in high growth markets in the Klang Valley, Johor Baru and Penang.
• On its commercial ventures, Datuk said “We are looking at building more Grade A offices that have retail and shop lots to meet the strong demand for such properties now. The occupancy rates for such property have reached 85% to 90%.Our aim is to maintain a 70% earnings contribution from sales of residential properties, with commercial property making up the balance.”

Property Sector

2007-06-04T21:09:00.000+08:00

Below is the research report from HDBS Investment Bank:

The Business Times reported that the government is expected to announce a project to turn Malaysia into an international property destination. The project is believed to be able to bring in RM20b in foreign direct investment within 10 years and help create more jobs.Prime Minister Datuk Seri Abdullah Ahmad Badawi will announce the details soon.
The plan is expected to boost the demand of properties in the country. We are seeing all the positive signals from the government to improve the property sector in the country. Within a space of five months, the government has announced the abolishment of RPGT, relaxation of FIC requirements and improvement the overall efficiency
of the delivery system. We maintain our overweight rating on the sector. We continue to like property developers with a strong brand name that would ensure pricing power and sizable prime landbank focusing on mid to high end properties. Sunrise (TP RM4.65) remains our top pick of the property sector.

Latest Press Release from Ozura

2007-06-04T18:19:00.000+08:00

Below is the latest press release from Ozura. FunlogiX, a mobile games platform developed by Ozura is a big achievement in the industry as it has been picked by many companies to run their respective mobile games portals.

World's First Mobile Trading Card Game "Master of Maya" Lands in MaxGames

Kuala Lumpur – Ozura Mobile ("Ozura"), a leading international publisher and developer of mobile entertainment, and Maxis Communication Berhad ("Maxis") jointly launched the world's first mobile trading card game, "Master of Maya" in MaxGames, a tournament based mobile gaming and community portal.

Master of Maya, a real time multiplayer game published by Nokia Siemens Networks, collaborates the classic trading card game concept with MaxGames which is powered by Ozura's FunlogiX™ to enhance mobile users' experience i.e. users can play with each other wherever and whenever they like.

"Maxis is very proud to launch this first in the world in Malaysia. It will take our innovative Games Unlimited proposition to the next level. In the world of Master of Maya, players will be faced with epic battles full of dramatic action to take them places they have never experienced before. It features a trading card RPG element and a story about the ancient community of the Mayan people with magical skills challenging their mysterious opponents." states Kee Saik Meng, Head of Games & Entertainment at Maxis.

In Master of Maya, the player takes the role of a Mayan ruler and combines a variety of characters to form a powerful team with which he or she can go up against other players. Special mutation cards enable the characters to be evolved and their fighting and sorcery skills improved. In the multiplayer mode, not only the players can play with theirs friends – regardless of where the players are situated, they also can challenge any player from the Maya community.

Lion Peh, Ozura's Chief Executive Officer recommended that the game has skillfully united the perception of trading cards with the technologies of the current mobile phones.

"We are confident that Master of Maya and our MaxGames portal will pave the way for future mobile games with high-production values. It has real mass market appeal and even people who haven't yet discovered the trading cards will enjoy this gameplay," said Lion.

Master of Maya was launched on 1st of June 2007. Players who are interested can log on to MaxGames via WAP. To learn more about Master of Maya, please visit MaxGames at www.maxgames.com.my to instantly commence familiarizing and acknowledging its contents.

Tong Herr Resources Berhad

2007-06-03T18:00:00.000+08:00

Tong Herr is involved in manufacturing and sale of nuts bolts and screws of all types of iron and steel. They are among the biggest manufacturer in the world for these products.
It is another strong fundamental company that still worth of bargain hunting. Below is the quarterly results:

The revenue has been increasing significantly (Q1'06: 47mil vs Q1'07: 111mil). Net profit has been flying high as well, from 5mil in Q1'06 to 19mil in Q1'07. Its dividend payout is considered high as well, with a total of 24 sen for financial year ended 31 Dec 2007.
I believe it can be another Top Glove which can continue to grow steadily in the next 3-5 years.

Audit Fees Issue?

2007-06-03T17:27:00.000+08:00

This issue has been brought out as a result of Transmile case. Some argues that the low audit fee in the country has prevented the external auditor to carry out entended auditing procedures.
I think it is very unfair statement from investor's prespective. As the external auditor, their job is to ensure the financial statment is true and fair view when they signed of the report. This is nothing to do how much audit fee does the company is paying to the auditor. If the above arguement is valid, should we assume that higher audit fee indicates the report is more reliable?

With reference to the interim report from Moores Rowland Risk Managament Sdn Bhd, Transmile's 2005 result is in doubt too. In order words, partner from Deloitte & Touche who signed off last year report should be responsible as well? Should investors take action against the external auditor?
Let us wait and read more upcoming report from Moores Rowland ...

Target price for E&O

2007-06-03T17:14:00.000+08:00

Kenanga gives a 'buy' call with a target price of RM4.10 based on its sum of parts revised RNAV. Meanwhile, HDBS continue their 'buy' call with a RM3.80 target price, also based on its RNAV calculation.
Personally, I think this stock should be trading within the current range, with no major fluctuation from its closing price at RM2.96 last Friday. I always use the price of E&O Prop as the 'yardstick' for E&O as E&O Prop is the major income driver for E&O. E&O Prop closed at RM3.54 last Friday.
I shall look into E&O again once there is a big gap between the share prices of E&O and E&o Prop.

Inappropriate billing from content providers

2007-06-03T08:23:00.000+08:00

I read about the above issue again this morning. This round it is in one of the chinese newspaper, Oriental Daily. Both Macro Kiosk and Nextnation were mentioned in the article. It is stated that both content providers have breached the rules but still managed to continue their business with the provided short codes.
Macro Kiosk (a subsidiary of listed company, Goldis Berhad) is in the highlight in the article. A customer lodged a complain to Screenshots (a blog site) and the blogger uploaded the customer's statement to the blog. After that, the innocent customer was charged RM200++ by Macro Kiosk for being the charges of mobile contents provided.
The article also shows that Telcos (Maxis, DiGi and Celcom) are actually getting 30%-40% from the content price charged to customers. I believe the body in charged should do something as the percentage is too high and this may create unhealthy environment in this industry.
I am not sure about Nextnation case as they have released press statement about this. I have no idea whether this issue continues to happen after the release of press statement or it was actually before this. Anyhow, nX was awarded the prestigious Mobile Content Developer of the Year at the annual Frost & Sullivan Malaysia Telecoms Awards Banque. This indicates that they are actually doing the right things.
Perhaps nX should issue another press statement to make thing clearer?

Upcoming mobile games from Ozura

2007-06-02T12:28:00.000+08:00

Nextnation wholly owned subsidiary, Ozura is set to release another 3 new mobile games - Burnee The Cook, Journey to Olympus and Counter Smash.
I believe Counter Smash will receive a hot response from the gamers in Malaysia as badminton is the No.2 sport in Malaysia.
Let's try it out when the mobile games have been released officially ...

Goldman Sachs acquired additional shares in RCE

2007-05-31T18:59:00.000+08:00

High profile foreign investment fund, Goldman Sachs acquired another 2,200,000 shares of RCE Capital Berhad. Goldman acquired the shares after RCE announced another good quarter result on 22 May. Filing to Bursa Malaysia shows that they acquired on 23 May (1.40mil units), 24 May (1.13mil units) and 25 May (0.67mil units). After these acquisitions, Goldman Sachs holds 54mil shares of RCE. This represents a total of 8.35% of total paid-up shares of the company.
The trading price range of the above 3 days is from RM0.82 to RM0.89. Goldman is comfortable to add weight in this company at the mentioned range. Once again, looking at the investment track records of Golman, I am very confident that RCE stock price will grow to another higher level. It closed at RM0.81 today and this should be a very attractive price for value investors to buy in now.
Will RCE stock price increase like E&O or AsiaEp?

Mahsing Q107 result

2007-05-30T21:02:00.001+08:00

There is no surprise from Mahsing for their Q107 result. The recorded revenue is RM141mil and the net profit is RM17.9mil, with EPS of 10.61 for the quarter ended 31 March.

Below is the performance review that found in the announcement to Bursa Malaysia:

The Group recorded profit after tax after minority interest of RM17.9 million for the financial period ended 31 March 2007, a 20% improvement compared to RM14.9 million for the previous corresponding financial period ended 31 March 2006. The
improvement in profit after tax was attributed to contribution from more projects, especially when the Company has grown from 4 launched projects in the 1st quarter of 2006 to 8 launched projects in the 1st quarter of 2007. In the Klang Valley, all the Group’s properties are located within an 18km radius of Petaling Jaya which is the Klang Valley’s growth corridor, whereas all the projects in Johor Bahru are located in the southern tip of the Iskandar Development Region. The good response received by all the projects bears strong testament to the market’s confidence in the promise that the Mah Sing brand name holds.

The Board of Directors is confident that the Group’s focus in the lifestyle medium to high end residential market and commercial segment would result in continued good performance in 2007. This is in view that the property market is expected to enjoy a positive run especially in the medium to high-end segment, with improved sentiments due to several factors, including the spillover from the Ninth Malaysia Plan, a stronger ringgit, flattening interest rates, sustained economic growth momentum, growing income per capita and wealth creation from the stock market. The Group's strong track record, premium branding and innovative offerings will continue to attract good take up with the new projects coming on board in 2007, namely Kemuning Residence in Shah Alam, One Residence and Hijauan Residence in Cheras, Duta Perdana
in Puchong, The Icon@Jalan Tun Razak, The Icon@Mont' Kiara and Sierra Perdana in Tebrau-Plentong, Johor Bahru.

E&O - Proposed disposal of equity in E&O Prop and P Perdana

2007-05-29T21:40:00.000+08:00

There is no surprise from E&O latest quarterly result. It has recorded revenue of RM320mil for the quarter ended 31 March 07. The net profit of the quarter is RM31mil and EPS is 7.39 sen. Higher dividend is proposed as well (4 sen vs 2 sen). Everything is in line with the expectation.
The only surprise that I got is E&O proposed to dispose 13.8% of their holding in E&O Prop and the entire holdings in Putrajaya Perdana. As an estimation, E&O will get a proceed of RM500mil from the disposals.
About a year ago, E&O MD, Datuk Terry stated that E&O will be a complete property company where it has property development, construction and hotel operations. However, E&O came out with this proposal just after the restructuring being completed.
It is a good chance for E&O to cash out their investment. Should capital repayment takes place after the disposal? Where and what is the growth for E&O in the future?
How the proceed will be utilised?
A bit confusing about E&O future ....

Nasioncom - Telco founder charged

2007-05-29T20:21:00.000+08:00

Personally, I think it is a must to avoid in investing in this company as the management is not honest. There is no point to put your money in the company where it is run by a dishonest management team.

Below is the aricle from a local newspaper:

SHARES of Nasioncom Holdings Bhd declined by 11.76 per cent after three individuals were charged yesterday for providing misleading information about the company to the Securities Commission.
Former managing director Datuk Chee Kok Wing and former director Shamsul Khalid Ismail were accused of inflating the revenue figure of RM194.98 million shown in the company's 2005 Annual Report.

SC's investigation revealed that the financial statement contained a total of RM143.12 million of sales that were not transacted.

Both Chee and Shamsul pleaded not guilty and were allowed bail at RM200,000 and RM100,000 respectively. They were also ordered to surrender their passports to the court.

Mah Soon Chai, a shareholder of Express Top-Up Sdn Bhd, a unit of NasionCom, was also charged.

Nasioncom shares on Bursa Malaysia closed 1 sen lower at 7.5 sen yesterday. More than 13.9 million shares changed hands.

Value of its shares have gone down by 57 per cent so far this year. It has a market capital of RM60 million.

Mobile Content Developer of the Year - Frost & Sullivan

2007-05-29T19:47:00.000+08:00

Nextnation Communication Berhad (Nextnation) was awarded the prestigious Mobile Content Developer of the Year at the annual Frost & Sullivan Malaysia Telecoms Awards Banquet, held yesterday. Fifteen titles were conferred at the event which was officiated by Deputy Minister of Energy, Water and Communications, Datuk Shaziman Abu Mansor.

The Frost & Sullivan Awards are presented to companies that demonstrate best practices in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. The awards recognise companies which have pushed the boundaries of excellence and demonstrated outstanding performance in the telecommunications, information and communications technology industry.

In his acceptance speech, Group CEO and MD, Mr. PY Tey noted that the award is a validation and recognition of Nextnation's efforts and contribution in building a dynamic and viable mobile content industry in Malaysia. He noted that, "The company has been aggressively pursuing opportunities outside of the country, and to a large extent have been quite successful at replicating our home-grown business model in various countries in the region. I do not think it impossible, that in 3 to 5 years, Nextnation will become the leading mobile applications service provider in the Asia Pacific region, joining the ranks of many of our Malaysian peers."

He also thanked the judges, customers and employees of the group, "I wish to thank the distinguished panel of judges for selecting us as the Award recipient, our customers who have supported us towards greater synergy within the industry, and I personally would like to thank team Nextnation for journeying with me in making this company what it is today."

Winners were evaluated on revenue growth, market share and growth in market share, leadership in product innovation, breadth of products and solutions, and various actual market performance indicators. Frost & Sullivan's analysts short listed, researched and evaluated the top contenders in each category. The findings of the detailed evaluation were then presented to an independent panel of judges comprising representatives from the telecommunications sector, industry leaders and the media.

Article from The Star

2007-05-29T19:40:00.000+08:00

Just in case if you have missed out an article from The Star:

Nextnation Communication Bhd was not a tiny fledgling company. It came to the market with a net profit of RM12.5mil in its financial year (FY) ended April 30, 2005. It was listed on Mesdaq in August that year.

Its net profit expanded 33% to RM16.7mil in FY06 and it completes its FY07 this month. For the first nine months of FY07, its earnings rose a further 33% to RM16.4mil, almost as much as the earnings for the whole of FY06.

In terms of revenue, it grew 60% to RM28mil for the first nine months of FY07 from the same period in FY06, which indicates it is successfully replicating its business model overseas. Nextnation, as its name suggests, is going places.

Its earnings growth, however, did not keep pace with its swift rise in revenue because additional costs were incurred in its expansion into Indonesia, Thailand and China. Even so, its net profit for the third quarter (Q3) ended Jan 31, 2007, rose 49% to RM6.4mil.

The acceleration of earnings growth in Q3 is believed to be attributable to contribution from its overseas markets.

Nextnation is set to post a net profit of over RM20mil in FY07, which would make it among the top five most profitable Mesdaq companies.

Maintaining its rate of annual growth, which looks achievable, the shares would be valued at a prospective price/earnings ratio (PE) of just about 6 times, which is a low price for a growth stock.

Additionally, there is a perception it is mainly engaged in developing games content which is channelled through mobile phone networks. Actually, the company develops software and invests in servers for data, including games, which are accessed on mobile phones.

It operates a tollgate for mobile data, and that lends it a higher level of business stability than companies that have to constantly develop popular new games.

Putrajaya Perdana Berhad

2007-05-28T22:07:00.000+08:00

Construction arm of EnO posted another impressive quarterly result. By making a fast quarterly between quarter ended Mar'07 and Mar'06, revenue is increased from RM152mil to RM180mil. Net profit has increased ~RM4mil, from RM9.3mil to RM13.3mil.

Below are the notes found in the announcement to Bursa Malaysia:

Performace Review

The Group achieved a revenue of RM537.3mil for the financial year ended 31 Mar 07, representing an increase of 23% compared to the preceding financial year.
At the back of higher revenue recorded, the Group achieved a higher pre-tax profit of RM52.7mil representing an increase of RM7.3mil or 16% oer the pre-tax profit of RM45.5mil achieved in the preceding financial year.

Comment On The Results of Current Quarter Compared To Immediate Preceding Quarter

For the current quarter ended 31 Mar 07, the Group recorded a revenue of RM108.8mil and a profit before tax of RM18mil which represented an increase of 25% and 32% respectively as compared to the revenue of RM144.7mil and profit before taxation of RM13.6mil in the immediate preceding quarter.

Lastly, a final dividend in respect of the financial year ended 31 Mar 07, of 6.0 sen per share less 27 percent income tax will be proposed for shareholders' approval at the forthcoming AGM. This translates into a dividend of 11.0 sen for this financial year (interim dividend of 5.0 were paid).

The dividend payment looks interesting. However, the trading volume for this company remains very low with no major fluctuation to the share price, where it is traded within the range of RM1.90 to RM2.00 for the past few weeks.

Better result from P Perdana will surely contribute positively to EnO where it holds ~50% of P Perdana. Quarterly result of EnO will be due for release in this month as well. As EnO Prop will be recording higher revenue certainly, it should be a very good year for EnO.

GPacket: High receivable manageable

2007-05-27T14:14:00.000+08:00

There is an article in this week The Edge where Green Packet CEO Puan Chan Cheong explained and confident that all its receivable will be collected. He pointed out, "That is the norm in the telecommunications business we are in."
Hopefully nX trade receivables is in the same situation where all of them will be collected eventually. Should nX, the winner of Mobile Content Developer of the Year, CEO Tey Por Yee (the below picture) comes out to do the same thing? I would think it is very unlikely where nX is a low profile company where you hardly find any research or article on them. However, it's financial performance talks about all their success stories. Unless we see or discover any negetive news about them, I have high level of confident with them and hope their overseas operations will start contributing to the bottom line positively in the near future.

RCE Capital Berhad

2007-05-27T14:03:00.000+08:00

RCE received a strong buy call from Standard & Poor. PM has finally unveiled a much-anticipated and much-deservered pay rise for the civil service.
This move is positive for RCE, which provides financing to the civil service. Its loan book has grown by leaps and bounds, increasing from just RM69mil as at end-June 2005 to RM366mil as at end-Dec 2006. S&P expects this rapid pace to continue, aided in part by the increase in disposable income for the civil service.
The target price is RM1.05. S&P also project strong earnings growth over the next few years.

It is Nextnation again ...

2007-05-26T23:45:00.000+08:00

Recently, there are a few of Nextnat (nX) shareholders are complaining about the weak performance of it's stock price. It closed at RM0.305 last friday (note: the price is adjusted after bonus issue [1:2]). This translates to the closing price of about RM0.46 prior to the bonus issue.
I tend not to write anything about the technique, skill, plan or any know how. This is because I believe everyone has their own way and belief. This only important point is to gain and win money from the stock market.
However, I would like to take this oppurtunity to write something about what I had read in a book about the greatest investor - Warren Buffett. According to the book, investors should not sell or dispose even though the price has dropped 50% from the purchase price. Investors should see the situation as the chance to accumulate more units at cheap/lower price. Of course, this is provided that you have picked up a good counter.
This makes sense to me if you have the holding power. For example, if you bought Genting @ RM20+ before the financial crisis and sold it @ RM10+. Then, you have lost almost 50% of your money. If you hold it and sell it today, I am sure you have made a very good profit as it touched RM40 this year. Furthermore, you will be able to gain more if you bought more @ RM10+.
In the other hand, if you bought a speculation counter or a counter without financial performance support, such as PSCI, Fountain and Karensoft, you should take necessary to cut loss as soon as you can.
In nX case, I do not see any bad or negetive development in the company at the moment. So, I think it is not necessary to dispose nX now. Of course, if you know something else out there which can give you better return, you may go ahead to dispose nX.
Personally, I would see this is a good oppurtunity for me to buy more. Cretainly, I hope there is nothing wrong with their high balances of Trade Receivables and Trade Paybles.

KEURO

2007-05-26T22:03:00.000+08:00

According to my friend, it is worthwhile to key an eye on KEURO due to the following news:

Kumpulan Europlus Bhd. (KEUR MK): The Malaysian construction company said its unit signed a concession agreement with the government to build a 3.02 billion ringgit ($891 million) highway on the country's west coast. The concession period is 33 years. The shares added 3 sen, or 3.7 percent, to 85 sen.

Perhaps it is a good trading buy? Good luck ...

mTouche Technology Bhd

2007-05-26T21:30:00.001+08:00

As I do not have any positive news about Nexnat, it would be a better way to write about their main competitor - mTouche Technology Bhd.

The important points from comment by TA Securities:

- mTouche 1Q07 result is below analyst expectation, accounting only for 11% TA Securities full year estimates;

- QoQ, revenue declined 21% while net profit was also lowered by 46%; and

- TA Securities is lowering their expectation of contributions from associate companies to zero for FY07.

I also notice that HSBC also dispose their stake in mTouche consistenly recently.

Is it the industry is in the downtrend as consumers have lost their confident over mobile contents services? I would say yes since so many issues with short code owners recently. Of course, Nextnation has been involved too. I think they have to do something to fix this problem.

However, I believe there will be no significant impact to them. They are platforms provider and they are acting like a hypermarket where they provide the services to many other smaller players/customers. Looking at current entertainment programs available in Malaysia, everything is about voting by SMS. I am not sure which program is using their platform but there must be a few. Nextnation is among the dominant players in the market for mobile application services.

If Nextnation Q4 result continues to surge higher, everything would be clear - Nextnation is the mobile application services industry leader in Malaysia.

RCE Capital Berhad

2007-05-22T19:17:00.000+08:00

As expected, RCE posted another good quarterly result. Revenue is increased from 19mil to 31mil while net profit went up to 16mil from 7mil (comparing Mar'07 vs Mar'06). A final dividend of 1 sen is proposed as well, pending the approval of shareholders in the coming AGM.
For the financial year ended Mar 07, total revenue is 98mil as compared to 57mil, recorded in last financial year. Net profit is increased from 20mil to 63mil as well. However, there is a gain on disposal of investment [~20mil] in this financial year. By ignoring this gain, the net profit is actually increased about 100%.
As company closely linked to Am Group, I believe RCE is set for another higher level in medium term. The company profile is further brought up by the emergences of high profile substantial shareholders, both HSBC and Goldman.
I believe RCE has a very good prospect in the coming year.

.... Nextnation ....

2007-05-21T22:28:00.000+08:00

Please visit nexttrade for some information about Nextnation.
The blogger pointed out the main concern that we have - very high trade receivables.
Any bad debt to be written off will hit the financial badly.
Meanwhile, most of the main competitors are not performing that well. For example, mtouche and MNC Wireless which posted not really good quarterly results recently. Does this indicate the downtrend of this industry? Or Nextnation will stand out from them and continue to post impressive result?
Let us wait for Q4 result which is due in June ...

N2N Connect Berhad

2007-05-21T21:54:00.000+08:00

N2N Connect Berhad has announced it quarterly result today. The company is doing really well - they leap high!
Revenue is increased from 2.7mil from 9.9mil. (By comparing last year Q vs this year Q). Net profit is increased from 1.3mil to 7.2mil. It is very hard to find a mesdaq company with this set of impressive result. Well, I have to say they are doing better than my favourite, Nextnation.
According to the release, better result are mainly due to:

- increase in matched trade fees generated from eBrokerConnectTM as more transactions were being matched in the online stock trading as evidenced by increased market volume and market value of equities traded on Bursa Malaysia Securities Berhad;

- the continuous increase in MobileConnectTM and PDAConnectTM subscribers;

- increase in number of broking houses implementing the Company's financial solution systems, i.e. eBrokerConnect™, MobileConnect™, SMSConnect™ and GlobalConnect, from seven to nine;

- additional income from developing and licensing the Online Trading Game on Singapore Exchange Securities Trading Limited's website; and
- additional income from software development of financial solutions in e-commerce and m-commerce sector in Saudi Arabia.

It is worth to keep an eye on this company. If they manage to go abroad succesfully, by doing the same thing in Malaysia, it has huge potential.

Free Messenger from Ozura

2007-05-20T17:07:00.000+08:00

This is nothing related to stock market.
I discovered a useful mobile phone application, published by Ozura. Basically, it is a tool where you can connect to 3 different types of messenger at the same time, at low cost as well. They are ICQ, MSN, and Yahoo!.
Please go to this website for further info - http://www.mobeep.com

Quarterly result

2007-05-20T09:17:00.000+08:00

Quaterly result for companies with quarter end at 31 Mar will be due soon - by end of May 2007.
'Branded' companies continue to deliver impressive result. As a result, I expect EnO, EnO Prop and Mah Sing Group to announce higher result - both q-to-q and y-to-y.
Sri Tanjung Pinang of EnO continues to be one of the hottest project in Penang Island. I had a look at the other projects in Penang Island and found that the designs of STP units are the most unique and attractive (my personal oppinion). Yet, they are priced at a very competition price. The main advantage of STP is it is located at the prime area - just about 5 minutes drive from Penang Gurney Drive (I guess everyone knows this place). Considering EnO Porp is highly geared, I do not expect any dividend payment from them. However, looking at the track record, I believe EnO will declare at least dividend of 2 sen for the financial year ended 2006. Both companies stock price are holding well at RM3 and RM3.50 respectively. I am still waiting for another 'Easy Money Oppurtunity' where there is a big gap between EnO Prop and EnO. At this moment, the gap is not big enough for me to buy more easily - not comfortable for the margin of safety.
Meanwhile, Mah Sing stock price has been sliding in recently weeks - from the highest of RM5.70 to RM5.30. One of the driver that I could think of is the conversion of warrants where it resulted more shares in the market and we are going through the dilution effect. With it's special management and operation style, I will say that Mah Sing is a must buy counter in property sector. Right Issue, shares split and bonus issue are expected to be completed by July 2007.
Lastly, Sunrise has been trading steadily within the range of RM3.70 to RM4.00 recently. It has announced its impressive quarterly result. Projects at Mont Kiara continue to contribute positively to the company with high sales recorded.

whereiszeemola - Nextnation

2007-05-13T13:28:00.000+08:00

The blogger did a very good research on Nextnat after receiving my request.
Thank you so much!
Please visit the site in order to get more useful information about Nextnation.

Candidates for going private

2007-05-13T13:27:00.000+08:00

Read this from The Edge:

1. AmInvestment
2. Batu Kawan Bhd
3. Berjaya Land Bhd
4. Dijaya Corp Bhd
5. Goldis Bhd

Personally, I think Goldis is very attractive as it is still trading below the worth of its stake in IGB. Is this another 'Easy money oppurtunity' like E&O?

Happy Investing ....

The Greatest Investor - Warren Buffett

2007-05-09T20:47:00.000+08:00

Received this forwarded mail from my friend:

> There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

> 1. He bought his first share at age 11 and he now regrets that he started too late!
> 2. He bought a small farm at age 14 with savings from delivering newspapers.
> 3. He still lives in the same small 3-bedroom house in mid-town Omaha,
> that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

> 4. He drives his own car everywhere and does not have a driver or security people around him.
> 5. He never travels by private jet, although he owns the world's largest private jet company.
> 6. His company, Berkshire Hathaway, owns 63 companies. He writes only
> one letter each year to the CEOs of these companies, giving them goals
> for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.

> 7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.

> 8. Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

> 9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
>
> His advice to young people:
> "Stay away from credit cards and invest in yourself and
>
> Remember:
> A. Money doesn't create man but it is the man who created money.
> B. Live your life as simple as you are.
> C. Don't do what others say, just listen them, but do what you feel good.
> D. Don't go on brand name; just wear those things in which u feel comfortable.
> E. Don't waste your money on unnecessary things; just spend on them who really in need rather.
> F. After all it's your life then why give chance to others to rule our life.

Titan - Q107 result

2007-05-09T20:41:00.000+08:00

Obviously, Titan posted a disappointed Q1 result. Even though the revenue is higher compares to last quater [Q4'06], the net profit dropped from 200mil++ to 156mil in this quarter.
Looking at current developement in the market, I believe it is not worth to continue parking money in this company. Property counters remain my top priority at this moment.

Updates: Nextnation

2007-05-05T22:00:00.000+08:00

Nextnation has incorporated its subsidiary in India - Nextnation Mobitech India Pte Lrd, via its other susididiary Code Wireless. This is in line the group's overseas market expansion strategies to diversify and grow the revenue base.
No doubt, Nextnation has been doing very well in growing overseas revenue with higher revenue recorded from Q to Q. However, the net profit margin of overseas operation remains a big disappointment, with only ~4%. It is totally no match to the net profit margin from Malaysia operation, which is ~30%.
I am not sure the reason and factor behind to low overseas net profit margin. I hope the management will do something to improve it. I hope they will look at the revenue from Malaysia as well, which is decreasing from Q to Q. More attention should be put in Malaysia since it has high net profit margin. Revenue is important, however it is more important to convert the revenue into net profit.

Meanwhile, funlogix has landed China successfully. Ozura has team up with ChinaByte to launch its first and exclusive tournament based mobile gaming community portal. You can see a few Ozura's games in the portal (http://fun.mostar.on).

Nextnation is growing but the share price is not the case. I expect a better performance in term of share price in second half. Private placement should be completed by June and bonus issues should be allocated to the shareholders by this year as well.

Cumulative net profit in this year is RM15.9mil while the full year net profit for last year is RM16.7. With my personal expectation of at least RM6mil net profit for the last quarter, it would translate the full year net profit ~RM22mil. This represents an increase of ~30% in net profit.

It should be a great year for Nextnation ...

Goldman Sachs - RCE Capital

2007-05-01T10:06:00.000+08:00

Goldman Sachs made another move in acquiring public company shares in Malaysia.
This time their target is RCE Capital. Filing to Bursa malaysia shows that they acquired 50mil shares or 7.73% stake in the open market on April 18. RCE closed at 81 sen on that day.
Looking at Goldman's track record, I believe RCE share price will easily break RM1 in another 1 or 2 months.

Goldman Sachs is the substantial shareholder for E&O, AsiaEp and StemLife. Look at their share price now ....

It is a golden oppurtunity to buy RCE since it closed at 84 sen which is not far from the price Goldman paid for it.