Sunday, June 15, 2014

Weekly Trades Dated : 15/6/2014

1. Traded above last week. ^^

2. Good Luck.


hng said...

.............Surely the moral of the story is this: silence is the best policy when you and your shareholders have benefited enormously from close ties with the government. Yeoh is an erudite businessman and has built up a reputation for delivering top-class products, Pangkor Laut and the restored Majestic Hotel comes to mind. But the man will not win any popularity contest even on Mars.

Some people dislike his self promotion and others just detest the fact that the IPP concession given to YTL during the Mahathir era was lopsided. It was silly of him to stand before his peers at the Pemandu function and even touch on the topic of crony capitalism.

Heck, this was like preaching to most cynical of cynics: men and women who believed that YTL's financial muscle today is the result of solid political connections.

His comments started a firestorm and resulted in all eyes being trained on YTL projects, including the 4A power plant...........

18/06/2014 16:00

hng said...

Revise Sum of Part for Puncak

1. Puncak net cash is close to RM 2.0bilion (RM 1.55 billion from water divestment + Puncak exiting cash holding RM 450m-500m) = net cash RM 3.74/share

2, Puncak retains its non-water concessions-related assets in the construction/water/sewerage infra segments = RM 200m (37sen/share)

3. Puncak property assets worth around RM250m (47sen/share)

4. Puncak Oil and Gas, based on revenue 700m - RM 800m, net profit margin 10%-12%, PE 12x - 15x = RM 1.60/share - RM 2.70/share

5. Cash from warrant conversion = RM 40.9m (7.6sen/share)

6. Interest saving from sukuk conversion = RM 6.6m (1.2sen/share)

SUM OF PART value = RM 6.27/share - RM 7.37/share

hng said...

The Board of Directors of Perangsang Selangor (“Board”), with the exception of YM Raja Haji Idris Raja Kamarudin and Encik Suhaimi Bin Kamaralzaman (“Interested Directors”) who are Directors of KDEB and deemed interested, wishes to announce that the Company has received an offer letter dated 20 June 2014 (“Offer”) in relation to the Proposals on the evening of the same day. The Board (except for the Interested Directors) at its meeting today, has resolved to accept the Offer from KDEB after deliberating on the Proposals on the following indicative terms and conditions: -
(i) The Proposed Purchase of the 90.83% equity in TMSB for an indicative consideration of RM78.054 million; and

(ii) The Proposed Resolution of the BaIDS A and BaIDS B via KDEB’s assumption of the liabilities amounting to an aggregate nominal amount of RM200.0 million as consideration for the settlement of inter-company debt.

The Company expects to commence negotiations with KDEB to finalise the terms and conditions of the definitive agreement(s) to be executed by the parties in relation to the Proposals, which are conditional upon, amongst others, the approval of the shareholders of the Company at an extraordinary general meeting (“EGM”) to be convened.

Remarks: KPS divestment of its 90.83% TMSB for cash RM 78m, worth only 16sen/share.

KPS main realizable cash is all depend on 30% splash value, range from 75m to RM 750m, worth 15sen - RM 1.50/share, depending on valuation of Splash, RM 250 (current offer) to RM 2.50 billion (1x book value)

hng said...

About 50% of Puncak sum of part analysis is in the form of net cash (RM 2.0 billion). Therefore, no PE is peg to cash. If part of these cash hoard is use for M&A in oil and gas business, namely expansion to ownership of rigs, vessels and other upstream-related assets, then the earning derive from these division will have peg PE to give higher valuation. For example, if Puncak utilize 50% (RM 1 billion) of its cash hoard for acquisition, and expect to earning net profit margin of 10%, peg PE 15x, then Puncak sum of part will increase by another RM 500m, or additional RM 1.00/share.

Puncak infra water and construction division only peg at 8x due to smaller order book RM 560m. If puncak able to secure water related infra work from RAPID, Peronas namely Water treatment plant + effluent treatment plant, worth another RM 2.0 bilion, in which Puncak is front-runners now, then, Puncak orderbook will soar to 3.5x to RM 2.56bilion, ensure earning visibility up to 4-5 year and higher PE to up to 12x will give additional RM 1.00/share

All in all, Puncak sum of part have potential to value up to RM 9.30/share if part of its cash hoard use for earning accretive M&A + secure additional infra work from Rapid project

horse said...


Congratz on your Puncak & KPS. ^^

Laughing all the way to the Bank. ^^

hng said...

資產脫售回退股東?商業高峰8月特大定奪2014-06-26 16:43


Teng said...

Bought some Pavreit at 1.34

hng said...

Sold off all Puncak and KPS, realize total 6D profit.

hng said...

Bought DRB at 2.24. Proton GSC is due to official launched after Hari Raya, its a game changer for Proton

hng said...

The main reason trigger to selloff Puncak and KPS were

1. Rozali intend to use cash proceed from water divestment to venture into Palm oil plantation, deviate from its core buiness water and oil/gas

2. Rozali have identified several land to start planting palm oil tree and several palm estate already......skeptical that Rozali may already bought these land/estate through nominee, which later selllback to Puncak at high price, siphoning cash...

3. Palm oil is OLD business, no brain barrier business and highly capital intensive and long gestation time.

4. KP splash value remain uncertain

5. MB, Khalid post is under threat...may force to step down very soon, especially he have lost its own division president seat. Further dampen prospect water restructuring

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