Saturday, January 30, 2010

Different between RON95 and RON97

I am having 2 cars, an old junk 13 years old and a new car. When government started to introduce the RON95 in September last year, i switch to use RON95 on my old car but remain using RON97 on my new car. Decision as such just because i heard too many story about new RON95 petrol about it side effect, knocking sound, less power, petrol consumption higher, engine could be spoilt, RON95 is dirtier & blah blah blah. That left me no choice to continue using RON97 for new car for fearing of the side effects and thinking of what the hack and what worst can it be on a 13 years old car, so long as i can save some money so opted RON95 on this.

After using more than 3 months RON95 on my old car this is what i can conclude:-

There is indeed a different between RON95 & RON97.......
1) Petrol consumption slightly higher but is of insignificant
2) RON95 is not as smooth as compare to RON97
3) There is engine knocking sound getting worst overtime especially when you press the accelerator
4) This is the worst one. Each time i started the engine, i normally worming up the engine for a while before engaging to drive. When i release my pedal, my car always jerk and the car engine nearing death. This happen after using RON95 for 2 months.

I was wondering could it be due to old car and the problem started to surface ?? I decided to switch back to RON97 before i send my car to work shop for checkup. To my surprise, the above problem disappear after switching back to RON97.

hmmmmm........ there is something for me to ponder here....!?
To remain RON95 or paying a higher premium for a better grade patrol !? or... should i mix the two? 2 weeks for RON97 and 1 week for RON95.........or my old junk's engine just not suitable for RON95 ?

Petrol that sold by Petronas, Shell, BHP, Esso, Caltex and Mobil is not the same i believe. Each company has its own ingredients to enhance the ability of the quality of petrol respectively. So could anyone here tell me which company offer the best RON95 ??

Friday, January 29, 2010

PBBANK has started initiation of Shares Buy Back ?

I extracted the announcement below this morning and noticed that the figure that i calculated for outstanding treasury shares is not tally. So would like to make a correction and record here. At least to make the figure near or close to accuracy so as to serve a more accurate calculation in future. Looks like PBBANK is starting the buyback activities. Remember there is initiation of 10% shares buyback here. Good Luck!! :)


Notice of Shares Buy Back - Immediate Announcement

Date of Buy Back : 28/01/2010

Description of Shares Purchased : Ordinary shares of RM1.00 each

No. of Shares Purchased : 10,000 shares

Minimum Price Paid For Each Share Purchased : RM 11.740

Maximum Price Paid For Each Share Purchased : RM 11.740

Total Consideration Paid : RM 117,400.00

No. of Shares Purchased Retained in Treasury : 10,000 shares

No. of Shares Which Are Proposed To Be Cancelled : 0 shares

Cumulative Net Outstanding Treasury Shares As At To-Date : 68,025,318 shares

Adjusted Issued Capital After Cancellation : 0

Date Lodged With Registrar of Company :

Lodged By :


Total cumulative net outstanding treasury shares as at 28 January 2010 comprise

the following:

68,025,318 Local Shares (Stock Code: 1295)

12,461,850 Foreign Shares (Stock Code: 1295F)




Thursday, January 28, 2010

Genting upgraded to 'buy'

Read the snippet news below :-

Genting upgraded to 'buy' at Maybank

Genting Bhd, Southeast Asia’s largest publicly-traded casino operator, was upgraded to “buy” from “hold” at Maybank Investment Bank Bhd on optimism its Resorts World Sentosa project in Singapore “will pull in the crowds” and boost its earnings.

Maybank also raised the company’s share price estimate to RM8.85 from RM7.08. -- Bloomberg
Upgrade from hold to buy from RM7.08 to RM8.85. Just get the different between the two prices (8.85 – 7.08), a RM1.77 upgraded and is 25% increase in price. What does this mean ?

It means GSP/Resorts World Sentosa can boost Genting earning by 25% assuming RM7.08 is fully value price. Wow !!

Tuesday, January 26, 2010

What Can i hope from GENM ?

Wedding Gifts, Favours, Bells said...

wat do u think of GENM... how much holdings they had in genting sp? GENM not moving at all... hovering between 2.70-3.00 for very long time liao...

January 19, 2010 3:36:00 AM GMT+08:00

Horse said...

Wedding Gifts,

GENM has been underperformed & it current valuation stood abt 13X PE which is far from 17X PE. I believe soon they will do a catch up. Strong cash flow & stable earning, i hope for a special div coming Feb 2010 since they got ton of cash but usually a fat hope. :(

Many avoiding this guy as there is competitive risk from Resorts Singapore where business might be affected.

Secondly, is the RPTs recently where Genting try to get cash out from GENM.

Thirdly, is the long waited special div never come to reality to unlock cash reserves that cause many disappointment including me. :(

Anyway im still keeping & hope for a turn around.

January 19, 2010 10:03:00 AM GMT+08:00

I personally feel that GENM is a super laggard & underperformed stock, if one were to trading within the range, it will surely make a lot from this. Furthermore, buying anything at this range should be quite safe, the down side is limited but the up side is quite promising. Assuming the below valuation :-

Net profit for 3Q for year ending 2009 stood at = RM965m

Total EPS for all 3Q = 16.89sen


Expected Net profit for 4Q 2009 to be announced Feb2010 is = RM357m basing on 27% profit of it previous 4Q’s revenue

FY 09 profit = 965 + 357 = RM1.3b

EPS for 4Q = 6.05sen

Total EPS for all 4Q for year ending 2009 = 16.89 + 6.05 = 22.94sen

PE = 2.86/22.94 = 12.47sen

Fair value (basing valuation of 15X FY10 PE) = RM3.44

Did you see the FV !! Couple with GENM net cash pile approximately RM5b there which is continuing to grow, this represent about 0.85sen per share to be given away if they decide to but as I said earlier this is fat hope. If we just lump this amount into the valuation basing on current PE 12.47sen, so just whack the figure in (RM2.86 + 0.85) will give us RM3.71. Wow, see what I get here….!! With such solid cash backing, at current price (RM2.86) should be worth looking. I would expect or hope for a higher dividend payout announcement in the coming 4Q result at least if a special dividend is far too much.

Friday, January 22, 2010

Axis REIT plans new acquisitions

Axis Real Estate Investment Trust (REIT) plans to acquire another three to five properties in 2010 and raise
RM113 million in the early part of the year. Its target was expand the total assets to at least RM1 billion from
RM907.7 million as at December last year, said Axis REIT Managers Bhd Chief Executive Officer Stewart
Axis REIT Managers is the promoter of Axis REIT. LaBrooy said the potential acquisition targets included
two units of brand new logistics warehouses in Johor, a factory or warehouse in Puchong and an office
building in Cyberjaya. The acquisitions will total RM180 million.
As at Dec 31, 2009, Axis REIT had 21 properties in Malaysia.
In a media briefing on Axis REIT's financial performance for last year and its future growth prospects, he
said: "We are positive about our financial results this year despite the soft property market.
"Our strategy is to maintain occupancy rates and make new acquisitions." He said the trust also planned
another capital raising exercise in early 2010. "There is potential to place out another 61.4 million units and
raise a war chest of RM113 million for future acquisitions," he disclosed.
LaBrooy said that among other developments for this year would be on its corporate property in Petaling Jaya
called Quattro West which was formerly known as Nestle House.
"We are undergoing a complete refurbishment of the building to reposition the asset and increase revenue," he
He said Quattro West would be taken up by another listed company that had committed to a 15-year lease of
50 per cent of the space commencing July.
Another property that would provide unitholders with opportunities for capital gain was the proposed
acquisition of two logistics warehouses in Seberang Perai, Penang which was expected to be completed by
The Seberang Perai warehouse acquisition at RM24.25 million, he said, was at a 9.2 per cent discount to
market value and would provide unitholders with a cpaital gain of approximately RM1.78 million.
"The acquisition will increase gearing level from 34.03 per cent to 35.61 per cent," he added.
LaBrooy said 35 per cent would be the trigger point for gearing level and should it touch above this level,
Axis REIT would a undertake private placement to bring it down.

Axis REIT's unit price, he pointed out, saw an improvement at the end of 2009 as compared to end of 2008.

"It closed at RM1.93, a 72 per cent increase from the 2008 closing price," he added. -- BERNAMA

Thursday, January 21, 2010

Leader Universal

This company involve in 3 major businesses where 1) they are 1 of the largest cable & wire producer in South East Asia 2) in power generation business 3) a property development player where it developed several projects range from residential to commercial.

Cable & wire is the bread and butter of its revenue while power generation will become an important growth component & property business is just minimal.

The company has recently secured an agreement of 25 years from Combodia to develop a 230KV power transmission system worth around USD107m.

This will somehow translate to approximate of RM374m revenue but spread across to how many years was never mentioned in detail. Assuming just lump or whack this figure in the coming 4Q that will boost up its 4Q revenue to about RM900m…wow a fantastic & significant increase, more or less can match with BJTOTO’s revenue, this will in turn boost up the EPS drastically I presume but somehow profit margin for Leader is relatively very or extremely small I would say about 4% I wonder why ?? Maybe due to the operating profit margin for cable & wire business is very small about 3%. So, with that will give us RM36m net profit for 4Q & this represent a EPS of 8.24sen add up previously accumulated 3Q of 9.63sen, total is 17.87sen.

Basing on current price (RM0.91) the PE is trading at 5.09sen. Looks reasonably low enough for consideration but one needs to be careful of it high operating cost and low profit margin, any glimmer of unsustainable revenue will definitely run into red but there is 4% cushion constituted from the above power project likely to be quite stable for now.

***Some risk factor to consider :-

As I just dump the project figure to 4Q, this is not accurate at all as the revenue should span across to it entire project milestone.

At the point of writing this, I do not own any Leader shares as yet. The above do not serve as a buy call.

Wednesday, January 20, 2010

PBBANK distribute shares dividend again !!

PBBANK has just declared a distribution of share dividend of 1:68 and a 2nd interim dividend of 25%. All in all is about 1.47% + 2.06% = 3.5% of annual dividend yield. As mentioned in my previous post here, where i am expecting a share dividend as well for this quarter, true enough a share dividend is declared but of a smaller units by almost half (1:68) compare to previous (1:35).
Lets work out the estimation :-

Total shares issued = 2,472,348,084
Total shares in treasury (estimated) = 93,211,433
Shares dividend of 1:68 = 2,472,348,084 / 68 = 36,358,060
Estimated balance shares in treasury (After 1:68 shares dividend)

= 93,211,433 – 36,358,060

= 56,853,373

WOW, there is still estimated about 56million shares in treasury for next round of distribution ??

Remember there will be another 10% shares buyback in my previous post here.
Another 247million shares to play with, which mean PBBANK will somehow work toward unit trust approach by giving distribution of share units every single year..?

Looks like they are going to make this as annual event. That indeed good news in the long run for long term player like me. “Laughing all the way to Bank huh”

Monday, January 18, 2010

What do we expect from GENTING SP in 4 years time ??

While reading the report below, somehow there is some excitement when the report mentioning the growth in 4 years (the estimated revenue grow from $3billion this year to $6 billion in 2013), a double grow in revenue in just 4 years !!! that represent a 25% growth on every year which i think is a healthy growth. Isn't it ?

Assuming below…..

1st year (2010) = USD$3b = S$4.25b
EPS = 4.25b/10.2b = 41.67sen
Take 5sen PE, the Fair value(FV) = 0.4167 X 5 = S$2.08

2nd year (2011) = S$4.25b X 25% = S$1.06b + S$4.25b = S$5.31b
EPS = 5.31b/10.2b = 52.06sen
FV = S$2.60

3rd year (2012) = S$5.65b + S$1.06b = S$6.71b (Note: for easy calculation just take 1.06b as 25% growth)
EPS = 6.71b/10.2b = 65.78sen
FV = S$3.28

4th year (2013) = S$6.71b + S$1.06b = S$7.77b
EPS = 7.77b/10.2b = 76.18sen
FV = S$3.80

Do you think Genting SP will work out in according to above perfection ??
Even if profit stagnant with S$4.25b a year, you still get a FV of S$2.08, worth buying ??

Latest news below :-

Singapore’s First Casino ‘Ready’ to Open, Awaits Gaming License

Jan. 18 (Bloomberg) -- Genting Singapore Plc is ready to start operating Singapore’s first legal casino as soon as the city state’s government issues its gaming license, the company said today.

Genting Singapore’s stock added as much as 4 percent this morning on speculation gambling may begin at the company’s Resorts World Sentosa complex as soon as February’s Chinese New Year holiday.

“We are ready,” Robin Goh, a spokesman for Resorts World, said. “We can open the casino as soon as we have the license.”

Four hotels and 10 restaurants within the $4.5 billion Sentosa island complex will begin accepting guests from Jan. 20. A Universal Studios theme park in the complex is also waiting for a license to operate, and will open as soon as that is issued, Goh said.

A second casino resort, the Marina Bay Sands, being built by Las Vegas Sands Corp., will open later after encountering construction delays. Singapore announced in April 2005 it was overturning a ban on casinos that had been in place since independence. Resorts World and Marina Bay are the only two casino developments approved so far.

“We believe they, Resorts World, will get their gaming license before Chinese New Year,” Aaron Fischer, a gaming analyst at CLSA Asia Pacific Markets in Hong Kong, said in a telephone interview. “We expect gaming revenues to be bigger. There is a huge gaming market in Southeast Asia.”

In a report published last month, CLSA Asia Pacific Markets said it estimates Resorts World’s gaming revenue to rise from $2.5 billion this year to $3.8 billion by 2013. The Singapore casino market will generate $3 billion in revenue this year, growing to $6 billion in 2013, CLSA said in the report.

Genting Singapore gained 3.2 percent to S$1.29 as of 2:30 p.m. in Singapore. The stock climbed 200 percent in the past year, compared with a 67 percent gain for the benchmark Straits Times Index.

Friday, January 15, 2010

Understanding Dividend Payout Ratio

Dividend Payout Ratio (DPR) is one of the metrics used in fundamental analysis.

It almost seems like a measurement invented because it looked like it was important, but nobody can really agree on why.

The DPR (it usually doesn’t even warrant a capitalized abbreviation) measures what a company’s pays out to investors in the form of dividends.

A direct calculation of the DPR is by dividing the annual dividends per share by the Earnings Per Share.

DPR = Dividends Per Share / EPS

For example, if a company like PBBANK paid out 55sen per share in annual dividends and had 76.93sen in EPS, the DPR would be 71%. (55 / 76.93 = 71%)

The real question is whether 71% is good or bad and that is subject to interpretation. Growing companies will typically retain more profits to fund growth and pay lower or no dividends.

Companies that pay higher dividends may be in mature industries where there is little room for growth and paying higher dividends is the best use of profits (Beverage, Gaming, Telco & REIT is fall into this group).

Either way, you must view the whole DPR issue in the context of the company and its industry. By itself, it tells you very little.

Tuesday, January 12, 2010

PBBANK Shares Buy Back

This is indeed good news to all shareholders, not only it will stabilize the share price, likelihood that future share dividend may be even more envisaged. See here my previous post about PBBANK.

With purchase up to 10% of its share issued, it will mean about 247millions share, that represent about RM2.8b at current price of RM11.40. In other word PBBANK only spending 8% to 9% of it cash balance, which is relatively small. After the share buyback the estimated treasury shares will stood at 247 + 93 = 340m shares.
This giant still remain very robust.

See news below :-

Public Bank to seek nod in AGM

KUALA LUMPUR: Public Bank Bhd will be seeking shareholders’ approval to purchase up to 10% of its issued and paid-up share capital at its AGM on a date to be announced later.

In a statement to Bursa Malaysia, Public Bank said a statement to shareholders containing information on the proposed share buy-back authority would be despatched to shareholders together with its annual report in due course.

Thursday, January 7, 2010


As we enter in January and February of 2010, there is this REIT worth mentioning, which is one of its kind in REIT industry, a first plantation REIT in Malaysia. Yes is none other than BSDREIT. Most of the REITs that we dealt with today are usually buildings REIT but this one is plantation land REIT.

BSDREIT is an ISLAMIC plantation-based reit as well. It is managed & administered by Boustead REIT Managers Sdn Bhd. Its investment objective is to invest primarily in plantation assets (oil palm estates and palm oil mills). BSDREIT currently owns plantation lands that previously belong to Boustead Group. Those lands are sold to Bsdreit and then lease back to Boustead Group, in return Bsdreit get the leasing fees as revenue. Beside the leasing fees, there is also agreement for Bsdreit to gain some % of profit sharing from the increase of CPO price.

January & February are the crucial months for Bsdreit as the company is entering the months to consolidate their total income and it is also estimated to announce the distribution payout around this period, i guess this might provide kicker to the share price as well.

At the point of writting this, Bsdreit stood at RM1.31. Lembaga Tabung Haji is accumulating it almost every single month in open market since June 2009.

Monday, January 4, 2010

What do we expect from BJTOTO in the coming quarter (Mar 2010) ??

As of March 2009 BJTOTO stood at cash flow of 230 millions. With recent active shares buyback to about 13m shares, do we expect another shares dividend ?? Obviously, no one would know except the management of BJTOTO. One thing for sure to give out shares dividend the current repository of Bjtoto’s share still far from it capability, they need at least balloon up to 100m shares buyback in treasury before June 2010 in order to be able to do so. Which mean another 87% shares require for this exercise to materialize. Lets assume shares buyback at an average price of RM4.35, thus, 4.35 x 87m = RM378m. A total of RM378m needed !? where is the money come from ?? Through borrowing again ??

So, I’m quite skeptical any shares dividend will be declared in the coming 4th quarter but however a likelihood of 3rd Q interim dividend is possible after they have advanced dividend payment of the 2 previous quarters. Judging the dividend payout every quarterly, it is time they exercise the 3rd Q dividend else we will actually truly ‘miss’ out 1 dividend following their norm dividend payout history. BUT don’t hope for big this time round, I am expecting around 5sen to 8sen 3rd Q dividend in March 2010.

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