1. 90.83% Konsortium ABASS Sdn Bhd. ABASS is responsible for the operations and maintenance of the Sungai Semenyih water supply scheme, output capacity 545 litres/day
2. 30% Splash, is responsible for the operations and maintenance of the Sungai Selangor water supply scheme phase 1 and phase 2, output capacity 2500 litres/day
3. 20% SPRINT Highway
4. 30% KPS-HCM, involve in road maintenance and repair for the state of Selangor
5. Own and operate Quality Hotel City Centre, located in KL (net book value RM 46.9m)
6. Own and operate Brisdale International Hotel, located in KL (Net book value RM 26.1m)
7. Own and operate Corporate cum hotel tower, located in Shah Alam (Net book value RM 61m)
(Remark: The hotel part of the tower already refurbish into new corporate space)
8. 40% NGC Energy, sell Liquefied Petroleum Gas (LPG) to the domestic retail sector under 'Mira' name, command the second largest share in the domestic LPG market.
9. 30% Ceres Telecom, JV with Virgin Mobile, provides mobiles voice, data telephony services, and prepaid mobile under Friendi brand target foreign worker
10. Perangsang Templer Golf club to be redevelop into high end resident area, enter into JV with SP setia in which KPS entitle 16% GDV or RM 200m profit
1. 90.83% Konsortium ABASS Sdn Bhd. ABASS is responsible for the operations and maintenance of the Sungai Semenyih water supply scheme, output capacity 545 million litres/day
Remark: take over offer price: RM 992m: equity: RM 86m, assets: RM 906m
2. 30% Splash, is responsible for the operations and maintenance of the Sungai Selangor water supply scheme phase 1 and phase 2, output capacity 2000 million litres/day
Remark: take over offer price RM 1835m (equity: RM 251m, assets: RM 1584m)
3. 20% SPRINT Highway
Remark: KPS cost of investment RM 125m
4. 30% KPS-HCM, involve in road maintenance and repair for the state of Selangor
5. Own and operate Quality Hotel City Centre, located in KL (net book value RM 46.9m)
6. Own and operate Brisdale International Hotel, located in KL (Net book value RM 26.1m)
7. Own and operate Corporate cum hotel tower, located in Shah Alam (Net book value RM 61m)
(Remark: The hotel part of the tower already refurbish into new corporate space)
8. 40% NGC Energy, sell Liquefied Petroleum Gas (LPG) to the domestic retail sector under 'Mira' name, command the second largest share in the domestic LPG market.
Remark: KPS cost of investment RM 40m
9. 30% Ceres Telecom, JV with Virgin Mobile, provides mobiles voice, data telephony services, and prepaid mobile under Friendi brand target foreign worker
Remark: KPS cost of investment RM 45m
10. Perangsang Templer Golf club to be redevelop into high end resident area, enter into JV with SP setia in which KPS entitle 16% GDV or RM 200m profit
In summary 1. KPS share of divestment from disposal Abbass is RM 78.3m and write off ability RM 825m.
2. KPS will only recognized associate splash equity for RM 75m,and write off liabilities RM 475m. But if valuation regain back to previous offer based on book value, splash should value to RM 2500m, and KPS share of equity value at RM 750m
3. Other KPS value court as cost of investment: RM 344m
4. JV with SP setia, once materialize, KPS should recognized profit RM 200m
5. KPS cash balance: RM 142m
6. KPS borrowing (interest bearing): RM 1020m
Minimum scenario: KPS net cash RM 1119.3m or RM 2.24/share Maximum scenario: KPS net cash RM 1794.3m or RM 3.59/share
1. Water divestment 1. RM 3.78 cash per share, if fully diluted by warrant conversion and convertible sukuk bond, cash per share diluted into RM 3.05/share.
2. Oil and Gas Estimate Oil and Gas revenue RM 800m, net margin 9%, deliver annual profit RM 70m, apply PE 10x, worth RM 1.70 /share or fully diluted RM 1.45/share
3. Piping construction project, estimate order book RM 500m annually, net margin 6x, net profit RM 30m, apply PE 6x, worth another 42sen/share or fully diluted 35sen/share
All in, sum of part Puncak value = RM 4.85 - RM 5.90
Puncak profit down mainly due to loss in oil and gas division, resulted from Peronas project worth RM 1.8bilion (RM 600m pa) deter to start only on mid April. Expect oil and gas maiden profit only will recognized in 2H. Puncak pipe construction project worth RM 550m still in initial stage, should be pose better result next quarter.
Puncak core water profit remain stable. Based on annualized EPF 50-60sen, Puncak is trading at merely PE 5-6x
YTL share partly influence by exclusion of Shariah list, whereas YTLP share partly influence by its fail to re-enter into latest shariah list. On top of that, today is end of May, fund manager portfolio readjustment also causing increase in volatility.
Many analyst has failed to recognized Puncak balance cash in their sum of part analysis. In addition, there is inconsistency in analyst report in regard to the pPuncak sum of part calculation.
The proposed take over value Puncak at RM 5.56 billion (equity portion RM 1.55 billion + liabilities RM 4.01 billion)), but the offer indicate PAAB will resume all water related liabilities. Therefore, if Puncak or Syabas have more liabilities than offer RM 4.01b, it will also resume by PAAB without affecting Puncak Sum of Part value.
12 comments:
KPS sum of part analysis
1. 90.83% Konsortium ABASS Sdn Bhd. ABASS is responsible for the operations and maintenance of the Sungai Semenyih water supply scheme, output capacity 545 litres/day
2. 30% Splash, is responsible for the operations and maintenance of the Sungai Selangor water supply scheme phase 1 and phase 2, output capacity 2500 litres/day
3. 20% SPRINT Highway
4. 30% KPS-HCM, involve in road maintenance and repair for the state of Selangor
5. Own and operate Quality Hotel City Centre, located in KL (net book value RM 46.9m)
6. Own and operate Brisdale International Hotel, located in KL (Net book value RM 26.1m)
7. Own and operate Corporate cum hotel tower, located in Shah Alam (Net book value RM 61m)
(Remark: The hotel part of the tower already refurbish into new corporate space)
8. 40% NGC Energy, sell Liquefied Petroleum Gas (LPG) to the domestic retail sector under 'Mira' name, command the second largest share in the domestic LPG market.
9. 30% Ceres Telecom, JV with Virgin Mobile, provides mobiles voice, data telephony services, and prepaid mobile under Friendi brand target foreign worker
10. Perangsang Templer Golf club to be redevelop into high end resident area, enter into JV with SP setia in which KPS entitle 16% GDV or RM 200m profit
KPS sum of part analysis (revise)
1. 90.83% Konsortium ABASS Sdn Bhd. ABASS is responsible for the operations and maintenance of the Sungai Semenyih water supply scheme, output capacity 545 million litres/day
Remark: take over offer price: RM 992m: equity: RM 86m, assets: RM 906m
2. 30% Splash, is responsible for the operations and maintenance of the Sungai Selangor water supply scheme phase 1 and phase 2, output capacity 2000 million litres/day
Remark: take over offer price RM 1835m (equity: RM 251m, assets: RM 1584m)
3. 20% SPRINT Highway
Remark: KPS cost of investment RM 125m
4. 30% KPS-HCM, involve in road maintenance and repair for the state of Selangor
5. Own and operate Quality Hotel City Centre, located in KL (net book value RM 46.9m)
6. Own and operate Brisdale International Hotel, located in KL (Net book value RM 26.1m)
7. Own and operate Corporate cum hotel tower, located in Shah Alam (Net book value RM 61m)
(Remark: The hotel part of the tower already refurbish into new corporate space)
8. 40% NGC Energy, sell Liquefied Petroleum Gas (LPG) to the domestic retail sector under 'Mira' name, command the second largest share in the domestic LPG market.
Remark: KPS cost of investment RM 40m
9. 30% Ceres Telecom, JV with Virgin Mobile, provides mobiles voice, data telephony services, and prepaid mobile under Friendi brand target foreign worker
Remark: KPS cost of investment RM 45m
10. Perangsang Templer Golf club to be redevelop into high end resident area, enter into JV with SP setia in which KPS entitle 16% GDV or RM 200m profit
In summary
1. KPS share of divestment from disposal Abbass is RM 78.3m and write off ability RM 825m.
2. KPS will only recognized associate splash equity for RM 75m,and write off liabilities RM 475m. But if valuation regain back to previous offer based on book value, splash should value to RM 2500m, and KPS share of equity value at RM 750m
3. Other KPS value court as cost of investment: RM 344m
4. JV with SP setia, once materialize, KPS should recognized profit RM 200m
5. KPS cash balance: RM 142m
6. KPS borrowing (interest bearing): RM 1020m
Minimum scenario: KPS net cash RM 1119.3m or RM 2.24/share
Maximum scenario: KPS net cash RM 1794.3m or RM 3.59/share
Sum of part analysis for Puncak
1. Water divestment
1. RM 3.78 cash per share, if fully diluted by warrant conversion and convertible sukuk bond, cash per share diluted into RM 3.05/share.
2. Oil and Gas
Estimate Oil and Gas revenue RM 800m, net margin 9%, deliver annual profit RM 70m, apply PE 10x, worth RM 1.70 /share or fully diluted RM 1.45/share
3. Piping construction project, estimate order book RM 500m annually, net margin 6x, net profit RM 30m, apply PE 6x, worth another 42sen/share or fully diluted 35sen/share
All in, sum of part Puncak value = RM 4.85 - RM 5.90
Hng
Do you take into account landbanks owned by KPS when calculating value for KPS
Teng
KPS have no more landbank as it have disposed off its property arm, KHSB at 8.5sen to KDEB.
KPS only exposure to property is through redevelop of its golf course, JV with SP setia in which KPS entitle to RM 200m profit
There it seem some movement on YTLPWR. ^^
Hope it come.^^
hng & teng - still hold any ?
Wow! PUNCAK's 1Q revenue and profit drop.
Wonder how it will fair tomorrow...
Horse
Still hold both YTLP and its WB.
Bought back YTLP at 1.51, YTL at 1.62, but sold back at 1.64, realize intraday gain and wb at 54.5sen
Puncak profit down mainly due to loss in oil and gas division, resulted from Peronas project worth RM 1.8bilion (RM 600m pa) deter to start only on mid April. Expect oil and gas maiden profit only will recognized in 2H. Puncak pipe construction project worth RM 550m still in initial stage, should be pose better result next quarter.
Puncak core water profit remain stable. Based on annualized EPF 50-60sen, Puncak is trading at merely PE 5-6x
YTL share partly influence by exclusion of Shariah list, whereas YTLP share partly influence by its fail to re-enter into latest shariah list. On top of that, today is end of May, fund manager portfolio readjustment also causing increase in volatility.
Many analyst has failed to recognized Puncak balance cash in their sum of part analysis. In addition, there is inconsistency in analyst report in regard to the pPuncak sum of part calculation.
The proposed take over value Puncak at RM 5.56 billion (equity portion RM 1.55 billion + liabilities RM 4.01 billion)), but the offer indicate PAAB will resume all water related liabilities. Therefore, if Puncak or Syabas have more liabilities than offer RM 4.01b, it will also resume by PAAB without affecting Puncak Sum of Part value.
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