Thursday, 17 April 2014

Symlife - The Symphony Of Life

The market as volatile as its character is, had saw DJIA rebounding back from a last week tech slam, where a series of technology rated stock took steep plunge, sending DJIA down below. However as of now, DJIA staged a strong come back with +121 at this time, looking to challenge 16500 again in the coming few days.

On a local outlook, while a lot of measure had been implemented to curb speculation on property, despite doing so, the new launches of properties are still looking strong with good rate of take up, and Malaysia properties are still deemed cheap by foreigners.
The properties index had shown a strong uptrend which had been ongoing for 3 months, where a lot of properties counter are highly hunted down for their undervalued land as well as their prestigious launches as well. One of the remarkable gainer is Ecoworld (Formerly known as Focal Aims), after seeing Tan Sri Liew's son heading the company with a team of experts from SP Setia. Ecoworld, from a lowly 30 cents 1 year ago, it is now sitting above RM 5.00, approximately 1600% gain in 1 year.

Will the property counter still be hot? I bet so it will continue to be as hot as it could for the next coming few weeks.

While most of the prominent counters had went from ground to sky, it had never left my attention away from Symphony Life Berhad (Symlife - 1538), a fully geared potential hit in the coming days. Let's have a look at Symlife.

Symlife had trading around the range of RM 0.95 to RM 1.15 for the past 6 months. The recent volume had been marking a bullish start for Symlife as they positioned to challenge above RM 1.15 in the coming days. I am anticipating a larger volume, as much as 5m shares transacted in the coming days as Symlife challenge forward.

Probably, you might want to wonder, what could be so interesting in Symlife. Let's have a quick look at their 3Q FYE 2014 result.
Symlife is currently trading at RM 1.06 is a 45% discount from it's NTA of RM 1.93. And to put things more interesting, a large portion of prime land held by Symlife is hugely undervalued as it had not been revalued from purchase.



Symlife NTA will be easily throttle above RM 3.50 once all the land had been revalued, with the Sungai Long land being the largest contributor after Symlife had paid a premium recently to convert the piece of land into a residential and commercial title for upcoming development.

The Symphony of Life

Symphony Life Berhad, previously known as Bolton Berhad, had went through difficult times when the company had expanded into various of business. Currently under the helm of Tan Sri Azman Yahya, he had reduced Bolton (now Symlife) from a more than half a billion debt into less than a quarter billion now after refocusing the company direction into a focusing on it's property division while disposing off it's other non core assets. Tan Sri Azman Yahya, a white knight for Symlife, was the man appointed by government in 1998 to set up and head the Pengurusan Danaharta Nasional Berhad, and he was the chairman for Corporate Debt Restructuring Committee, set up by BNM to assist debt restructuring of viable companies.
Restructuring a heavy indebted company had been always not easy. Tan Sri Azman had took 3.5 years to reposition the company, which is now starting to bloom after a long hard work. And April 2013, Tan Sri Azman Yahya had send a strong message to the market that he is going to bring the company into higher ground by changing the name of the company from Bolton to Symphony Life Berhad.


Symphony Life, a BCI Asia Top 10 developer is currently heading several projects.
- Elevia Residences, Taman Tasik Prima, Puchong with a GDV of RM100m
- Summer Homes, Taman Tasik Prima, Puchong with a GDV of  approx RM100m
- Tower 28 of Wharf Residences, with a GDV of approx RM200m
- TWY Duplex Condo, Moont Kiara with a GDV of RM 250m
- Tijani Ukay, Ukay Perdana with a GDV of RM 300m (70% balance)
- Amanjaya, Sungai Petani, Kedah with a GDV approx RM200m
- Lavender Heights, Senawang at Seremban with a GDV of approx 100m
- 6 Ceylon condominium at Bukit Ceylon, GDV approx RM150m

Symphony Life coming up mega projects will be looking at
- 625 acres mixed township development in Sungai Long with RM6b GDV (With New MRR2 access)
- Signal Hill, Kota Kinabalu with a GDV of RM 520m
- Star Residence, high end mixed development project between Jalan Mayang and Jalan Yap Kwan Seng for a GDV of RM2b
- 51G at Jalan Gurney, Kuala Lumpur for a GDV of RM 360m
- Taman Desiran Bayu at Wangsa Maju for a GDV of RM100m


Symphony Life is one of the oldest developer in Malaysia, known for it's quality in delivering the best in their products. With more than RM500m of unbilled sales that is going to be reflected possibly in the last quarter of FYE 2014, this will be sending Symlife share price above the sky as the current EPS for 3 cumulative quarter is standing at 12.70 cents, where trading at PER x10 will be valuing the company at RM 1.27 already. Taking a skeptical 10% from the RM500m unbilled sales turning into profit will be seeing a contribution of RM50m to 310m shares, effectively boosting an EPS of RM 0.16, totaling a FYE 2014 EPS at RM 0.287, which can be possibly looking at RM 2.50 at that kind of earnings.

I believe Symlife will be a good company to be invested in due to it's huge discount in NTA, huge prime land location, solid management team, huge upcoming projects and attractive earnings. Symlife will be looking to see a short term target at RM 1.15, while a long term will see Symlife putting above RM 1.50.

Decided on your investment? Don't be too late.

Bone's short term TP: RM 1.15

Cheers and regards,
Bone

Thursday, 10 April 2014

Pantech - Powering Pengerang

The global market sentiment had started back to pick up it's paces again as most of the negativity in the market had disappeared. While the DJIA index had challenged 16500 a couple of time, it could be taken down in the coming days by a strong bullish market as KLSE aim towards setting base at 1900 with contributions from the local oil and gas industry and government infrastructural projects.

The latest major business event that had taken place is none other than the announcement of the Pengerang Integrated Complex (PIC) in south Johor that will bring a whopping GDV of USD 27b (RM 88.56b) whereby the Refinery Petrochemical Integrated Development (RAPID) will be sitting on USD 16b (RM 52.48b) while the associated facilities, USD 11b (RM36.08b).

This is one of the mega project that is announced by Malaysia this year, which is a core component for Malaysia to transform into a developed country by 2020. The PIC will be sitting on a 6242 acre site that will be a host for about 70,000 people during it's construction, and more than 4,000 employees when operating, which is capable of producing 300,000 barrels per day of various grades of products from synthetic rubbers to high grade polymers.



With the huge amount of money placed on the line, who could be the beneficial? It had came to my attention on Pantech, the one-stop center for oil and gas industry.

Let's have a quick look out on Pantech.


Pantech had saw a recent plunge below RM 0.95 and consolidate around RM 0.90 prior to the weaker financial quarterly that had saw earning putting a step behind. However, Pantech still keep up with it's dividend with the previous quarter which sums up to a cumulative of 3.2 cents on the 3rd Quarter of FYE 2013. Recently, Pantech had risen actively after announcement of the approval on the Final Investment Decision on Pengerang Integrated Complex, Johor.

A portion of Pengerang had started development back then since 2011 for the deep water petroleum terminal. Pengerang currently has more than  RM70bil worth of projects in the pipeline, which is 33% of all investment costs of all our entry point projects in Malaysia. While looking at a sector view, Pengerang's total projects value is a whopping of 70% of those in the oil, gas and energy sector, highlighting the massiveness of the project.


While the PIC carries a massive weight, Pantech had came along the way to be another massive supplier for this mega project.

Pantech had been in the oil and gas industry for more than 2 decades, serving in :
  1. Oil & Gas both onshore and offshore.
  2. Marine & Shipbuilding industries(Including Oil Rig, Jackets, FPSO and more)
  3. Petrochemical & Chemical Plants
  4. Palm Oil Mills
  5. Palm Oil Refineries
  6. Oleo Chemical Plants
  7. Bio-fuel & Bio-diesel Plants
  8. Sea Water Desalination Plants
  9. Power Plants
  10. Refinery & Process Plants
  11. All type of piping system
  12. Flow Control System for Piping
  13. Storage Terminals.
Pantech had built its name from the quality of material, and is the certified material supplier for major clients like Shell, Petronas and Exxon Mobil. Pantech also had a solid clientele with heavy weights oil and gas constructor such as SKPetrol, Dialog and MHB.

Pantech and Pengerang
How does Pantech and Pengerang rings a bomb?

Pengerang top beneficial during the construction and development period will be looking at Dialog as it's fore runner. While the development is looking at a massive scale of supplies in construction material as well as oil and gas pipes, While numbers are still unknown for the time being, a wild guess of 5% on the pipes and valves will be sounding a crazy RM2.5b allocation over a period of 4 years will be seeing an average of RM 1.09 revenue per share on Pantech. (Pantech issued share 570m). Putting a margin of 30%, we are probably going to see a wild increase towards an EPS of RM 0.30 on Pantech, which might possibly put Pantech above RM 2.00 based on a PER x7, not including it's current and future book orders from other projects or overseas.

While competition is hot on the supplying, Pantech competitive advantage is that it is based in Johor with supplies readily on the move. In fact, they are actually positioned for this top notch job as we had solid internal news confirming on the supplying contract, which had basically covered 70% of most of the contracts.


In conclusion, I would conclude that Pantech will be one of the golden pick in 2014 with the following reasons:
- Backed by major GDV of RM 88b from Pengerang Integrated Complex.
- Certified material supplier from Petronas, Shell, Exxon Mobil
- Proximity on development site
- Established player in the industry
- Unofficial confirmation on supplying contract

A short term outlook will position Pantech above RM 1.00, while a longer term outlook might put Pantech at RM 1.50 as the project revenue starts to kick in stage by stage.

Are you decided yet now? Game in or out - You decide.

Bone's short term TP : RM 1.10

Regards,
Bone

Tuesday, 8 April 2014

Cuscapi - Revamping Business Trend

The DJIA had been shedding off it gains again after trying for the 3rd time to break above the 16500 mark in the recent 3 months. Is the bull still strong enough to push the DJIA index over 16500 in the coming few weeks as it retested for 3 times? Or it is a sign of a weakening bull? What we can be assure of is that the Feds will continue to reduce its quantitative easing in a gradually manner, while Yellen loose monetary policy will continue to be in force to continue encouraging more growth as US continue its recovery.

One of the latest major event that will be taking place is the opening of the new KLIA 2 Terminal in the coming month. The controversial airport had been delayed for a few times on it's grand opening, and had finally saw 2nd May 2014 being fixed in for the opening.

The KLIA 2 is a joint venture between UEMS and Bina Puri on the building and structure, while KUB had been on the runways, and Cuscapi will be seen handling the POS (Point of Sales) System in the new low cost carrier terminal - KLIA 2.


Let's have a look at Cuscapi latest movement.


Cuscapi had recently saw some active volume back then at the middle of February 2014, where the price had sniffed above RM 0.45, while consolidation took place at the range of RM 0.38 to RM 0.40.
Cuscapi could be looking set to break above RM 0.40 with some good participative volume in the coming days.

What is on Cuscapi
Cuscapi got it's presence felt in the market through its POS system offered throughout Malaysia, with notable chain restaurant like KFC, McDonalds, Pizza Hut, Kenny Rogers. While their POS system is a cash cow to the company, the latest evolutionary product that Cuscapi had ventured into its the latest REV (Revenue Enhancement Platform) for the F&B industries. While the development of the software and hardware had been intensive and costly, Cuscapi is finally ready to rev up it's latest product to the local and global market presence.

Currently, Cuscapi had been targetting China and Philippines to expand it's presence overseas, especially with it's new product where they are targeting to see revenue doubling up in the beginning of 2015.

While REV is still a new product that had yet to run on a full scale, the long awaited RM 21 million, 5 years contract from KLIA 2 had finally able to show some light on Cuscapi as the new terminal is to go live on 2 May 2014. Cuscapi handling the POS system for KLIA 2 will be looking to see the new contract finally being able to contribute to the earnings soon.

Catalyst
The larger catalyst that we will be looking at Cuscapi should be the latest M&A that Cuscapi is in talk with in China that will probably see Cuscapi potential earning to increase by 50% to 100% by end of 2015. The M&A that will be able to boost Cuscapi presence in China by a much shorter time frame is looking at 90% completion, while 10% left on some minor terms to be laid out. China market presence will definitely be a game changer for Cuscapi in their business, as there are more mid range chain restaurant, estimated at 300 to 500.

REV is a high potential market trend product in the F&B industry. In a IT savvy era, more and more traditional method are being replaced with new technology. REV could be a potential hit in the market as the current population, largely dominated by youth and young adults, had a high taste on IT related products. Should the market flow with the trend, a initial subscription of 5000 REV will be looking set to inject more than RM10million into their revenue soon. A saturated trend might be looking more than 10000 subscription, which will be channeling a very good source of income for Cuscapi in the future.


In my opinion, I would see Cuscapi as a good trading buy with the following points highlighted
- Opening of KLIA 2 theme play (Bpuri, KUB, Cuscapi)
- M&A with China based technology solution providers in penetrating China market in a faster pace
- High potential market trend maker product - REV (Targeting IT savvy young generation patrons - the majority population of the world)
- Beneficial in upcoming GST implementation


Bone's short term TP: RM 0.425


Cheers and have a nice day.

Monday, 7 April 2014

Farmbes - Deep Frying Chicken

The global market forecast had see market continue being bullish in the coming days. As the the recent jobs data last month in the US had saw 192,000 jobs added into the market, it is however still trailing behind the median forecast of 200,000 jobs, hence analyst suggested that the US market is actually still far from being seeing a tightening policy to be implemented at anytime. US analyst believe that they will continue to see a lower interest rate by the Feds for the time being. The stronger economy in the US had also continue to see a stronger USD against the MYR, with the current being RM 3.28 to 1 USD. With the rate it is rising, it is foreseeable that 1 USD will soon be looking at RM 3.35 in the coming days.

As the global and local economy continue to grow, human population continue to increase. Currently, the Malaysian population in 2014 stand up to more than 30million people. Along with this increase, it had definitely attracted my attention towards some FMCG industries, and for this time around - Farmbes.

Let's have a quick glance at the latest movement of Farmbes.

Farmbes, a Melaka based poultry farm, had been in a wild swing recently, with latest corporate action that saw F.C.H Holdings Sdn Bhd under the Fong family taking up private placement of 555,300 shares in Farmbes with a price of RM 1.22. The price of the share had seen some consolidation at RM 0.70 after for the past 3 weeks as it will be looking set to see a break out in that region after saturation of volume in that region. I anticipated that volume will be breaking above 5m transaction in a single day with a powerful break upwards, penetrating above RM 0.75.


What is frying the chicken?
The poultry industry had recently came into the limelight with consumer complaining about the rising price of the broiler since July 2013. However, the rise is literally inevitable for broiler farm because of some of the following reason :
- A minimum wage policy of RM900 per month, which is 50% increased (excluding allowance)
- Rising feeding cost in poultry (higher price for Corn and Soybeans, which is largely affected by stronger USD against MYR)
- Increase in electricity tariffs, hence higher operational cost
- Increase in logistic cost

Amongst all, the rising feeding cost, which attributes to 60% of the total cost, is the major factor to see a higher production cost in each bird.

While a higher cost structure over a priced controlled item doesn't sound appealing to any of the broiler farm, however, the recent move by the government is indirectly channeling more sales towards the legalized broiler operators, such as Farmbes.

The government had been actively closing down operation of unlicensed broiler operator in Johor, of which most of them are contract farmers. The reason for the closure is due to the poor waste management and manure management. Agriculture and agro-based industry Minister, Datuk Seri Ismail Sabri Yaakob, wants all state governments to enforce the Poultry Farming Enactment to ensure that all slaughterhouses are licensed and registered to enable the authorities to monitor their operations.

A golden opportunity for Farmbes
Farmbes, with 61,083,263 shares issued in the KLSE is currently sitting on a market capitalization of RM41.84m while PW had RM52.69m and Layhong, RM 90.6m, putting Farmbes as the smallest of all.

However, with the current seizure of operation from unlicensed and illegal broiler operators, Farmbes is taking this as a golden opportunity to expand in order to meet the market demand. Farmbes had recorded strong revenue in FYE 2013, mainly due to the improved price of the broilers and larger sales quantity, attributable from the increasing demand from the population, and the lack of supplies.

Sales revenue jumped 17.5% to RM 470m for FYE 2013, while EPS for FYE2013 stand at 7.33 cents. The current price of Farmbes (RM 0.70) is sitting on a 73.68% discount behind the NTA of RM 2.66 for FYE 2013.

Farmbes will continue to see a strong growth in 2014 from the increasing population in Malaysia, and the people's preference in consuming chicken as a cheaper source of protein compared to other meats.


Poultry prices to go up by 1H 2014
Poultry price will position to be revised by 1H 2014 after strong pressure from the broiler operators as a higher cost structure is eating into the margin hugely. In fact, the government had basically consented on the raise which will be pending to be announced soon. Wholesale price will be projected to raise above RM 6/kg in the coming days. The poultry industry is already showing a strong and significant signs of an upcoming price hike in the poultry meat with LayHong leading on the charge.



Previously, the announcement of a 30% increase in stationary prices back then on November 2013 had saw Pelikan revival after it's business recording critical losses from quarter after quarter. Pelikan took a shot above from a lowly RM 0.35 to the current RM 0.87 as of last Friday after recording better profit since the increase, which is a stunning 148% capital appreciation.



In my opinion, Farmbes will be a good trading buy due to
- Upcoming price increase in the poultry meat
- Business expansion seen from private placement of shares from F.C.H Holdings
- Increasing demand on the popular meat as a cheap source of protein
- Higher demand after seizure of unlicensed operators/contract farmers, channeling more sales
- Business product is resistive towards a downtrend market
- High growth opportunity and high margin for capital appreciation (small cap with 61m shares)


Farmbes will be looking set to break above RM 0.75 in the coming days after consolidating well at RM 0.70, while a longer term outlook will position Farmbes into touching RM 1.00 soon, mainly attributed by the upcoming announcement of price hike in poultry.

Had you decided your venture into Farmbes? Your call, don't be too late.

Bone's short term TP : RM 0.80

Cheers and have a nice day

Regards,
Bone

Reference
http://www.thepoultrysite.com/poultrynews/31703/malaysian-minister-tightens-up-on-unlicensed-poultry-abattoirs
http://www.thepoultrysite.com/poultrynews/30844/johor-faces-issues-on-being-malaysias-largest-chicken-producer

Wednesday, 2 April 2014

Prestar - Railing on Hot Roads

The market had been undecided for the past couple of weeks with anxiety from the Fed Meeting and the on going tension between Russia and Ukraine, as well as the worries of China, from the collapse of shadow banking to weak Chinese data and slowing down. However, the bull might had set in its course after the backing from Yellen to continue to support the current loose monetary policy and also China forecasting a strong PMI in the coming month. Locally, we had so far seen a significant market theme play on undervalued properties counter, furniture/timber, oil & gas, plantation, and the latest being consumer products.

The current market theme play should be focusing on GST implementation as the bill is finally ready to be tabled out in the next upcoming parliament. Yesterday, we had saw bullish run up on Ghlsys, Cuscapi, Censof, N2N, Scicom, Mpay, while some other like Opensys, SMRT had tried riding along as well.

While the GST theme play is going strong, I believe it will also be a good time to accumulate some undervalued industrial material player for the time being - Prestar.

Let's take a look at Prestar.


Prestar during their glorious moment back then when projects is coming from everywhere and they are doing great. Prestar is involved in the following:

- Slitting & shearing of carbon & stainless steel mother coils into slitted coils / sheets for automotive, electrical & electronic, office equipment, metal stamping indsutries
- Roll forming of carbon steel pipes and hollow sections
- Roll forming of stainless steel pipes & hollow sections
- Manufacturing of steel flat bars, steel purlines
- Manufacturing of wheelbarrows and platform hand trucks
- Manufacturing of steel shelving & pallet racking and other storage equipment
- Manufacturing of highway guardrails

The recent massive construction on both infrastructural, residential and commercial properties had contributed to the positive growth towards the company income.

The company had recorded a 58% growth in the EPS in FYE 2013 compared to 2012 of 4.42 cents, Prestar ended FYE 2013 with EPS of 7.01 cents with an upcoming dividend of 2 cents that is to be announced soon. Their NTA increase relatively to RM 1.11 while the company had a quite a number of land and properties reserved that had yet to be revalued.


Upcoming catalyst

 I believe Prestar will continue to see good growth in their quarterly result as the company had been look set to bag in more lucrative projects, especially highway guardrails from
- West Coast Expressway, 273km (40km linking Ipoh to WCE to be built later)
- DASH Highway 20.1km
- Kidex Highway 14.9km
- SCORE corridor (320km stretch from Tanjung Manis to Samalaju), extension to Mukah, Baram and Tunoh.

Rumor had it that Prestar had already bagged in the WCE project for guardrails that is worth more than RM400m for the 273km stretch. Taking a 15% profit margin, this project will be easily contributing a net earning of RM 0.33 per shares (Based on RM60m profit / 180.98m shares) on top of it's current business and operation. The WCE carries a GDV of RM6b will see actual job fully dished out on 2H 2014.

Beside that, the on going KVMRT Line 1 and KVMRT Line 2 in the coming days, and the future KVMRT Line 3 will continue to see demand in the steel industry for the upcoming years.

Currently price at RM 0.54 with 2 cents dividend in hand with prospective future growth ahead, Prestar will be deemed lucrative at the current price trading at a PER x7.5. With the earning from the WCE highway project, Prestar will be easily price above RM1.00. Short term outlook will position Prestar into challenging RM 0.60, while a longer tenure outlook will be looking at RM 0.70.

Bone's short term TP: RM 0.60

Cheers and have a nice day

Regards,
Bone

Friday, 28 March 2014

Malton - Mounting the Mega Artwork

The market sentiment had seemingly started to recover after all the dramatic event from a Russian standoff with the Ukraine, China's shadow banking and our local aviation disaster with the missing of MH370 which had been concluded as crashed into the southern part of the Indian Ocean. My deepest condolences to the family member's of the victims.

I believe that the market is improving with more participation from the foreign fund. The KLCI had broke off from it's consolidation stage of 1830 and penetrate to 1840 as sentiment regain it's positive charge again. While a lot of measure had been implemented by the government as a cooling off measure in the property market, I would continue to believe that property company with strategic projects and demand will continue to break forward.

One of them that doesn't walk away from this criteria is definitely Malton Berhad.


Malton had been trading in a rather lowly in the past 2 years as they are awaiting for the best moment to earmark their catalyst project into the Klang Valley. With Datuk Desmond Lim as the executive chairman for Malton, his name carries a heavyweight title in the property market with the success of Pavilion in Bukit Bintang.

The success of Pavilion had encourage Datuk Desmond to build a even greater mega artwork in bukit jalil, dubbed Pavilion 2, which had been attractively looking at a GDV of more than RM 3.9b in which Malton will be entitled for 82% (Approx RM3.2b) of the GDV in a JV effort with HoHup.

Let's have a quick technical glance on Malton

Malton had seen a 5 months consolidation mostly at the range withint RM 0.85 to RM 1.00. Malton had seen saturation at this level and will be looking set challenge above RM 1.00 with a greater volume in the coming days as I anticipate a daily transaction of more than 15m of shares transacted over the counter.


Delivering the Mega Artwork
Probably, you might want to know what kind of mega artwork will Malton be undertaking. Let's have a quick look on the whole list.

- Nova Saujana at Subang Jaya, 386 units of lifestyle residences and retail lots on 3.17 acres freehold land along Jalan Lapangan Terbang Subang.
- SK One Residence at Sri Kembangan with a GDV of more than RM200m
- Ukay Spring at Ukay Perdana, RM 600m GDV with Superlink, Semi D and Zero Lot Bungalow on 56 acres of land
- Amaya Maluri at Taman Maluri, RM 215 GDV projects with two 19 storey blocks with total of 399 units serviced apartment
- Pavilion 2 (Bukit Jalil City) with a GDV of RM 3.9b and shopping mall worth RM 3.5b with Phase 1 - 3 & 5 storey retail shop office, Phase 2 -Luxury Highrise Park Residence, Phase 3 - Regional shopping mall, Phase 4 - Hotel or Corporate Office Tower
- 300 acre Mixed Development in Batu Kawan with GDV of RM 3.88b (beside IKEA Batu Kawan)
- Nova Pantai at Pantai Dalam, 1140 units of serviced apartment and 280 units of affordable apartment for a GDV of RM 800m
- Amaya Duta at Jalan Kuching with 1479 units of serviced apartment and 20 retail lots with RM800m GDV.
- 12 acres Mixed development in Sungai Buloh near Kwasa Damansara
-  9.57 acres of commercial redevelopment in Pusat Bandar Damansara with more than RM2b GDV


With more than RM10b in GDV on hand in Malton, the projects is good enough to keep Malton busy for the next 5 to 7 years as they start to deliver the projects. Malton had been seeing an increase in revenue for 2 cumulative quarter in the 1st half of FYE 2014, with 295.5m in revenue and a sharp increase of EPS at 9.69 cents compared to the previous cumulative quarter at 4.24 cents, a more than 100% jump. NTA continue to increase to RM 1.57 per share.


With 418m shares at a current market cap of RM380m, a skeptical calculation of 10% contribution of RM10b GDV to the earnings of Malton will be spelling out more than RM1b of profit channeling to 418m shares, which is a staggering RM 2.39 EPS. Divide it into 5 years for completion will see an average of RM 0.47 earning per share, and trading at a skeptical PER x8 will be seeing Malton easily be valued at RM 3.76 in the coming term.

Is property market still going strong in the market currently?

The recent launch of SK One Residence from Malton had saw the appetite of the market in prime area still strong despite the cooling measure by the government. The Block A unit had been snapped up like hot cakes with more than 90% sold. SK One Residence, commanding a GDV of more than RM200m will see revenue bursting into the coming quarter result soon once SPA initiated by the purchaser.

Malton, well known for it's development in strategic prime location and quality workmanship will continue to see more demand in their projects as they continue to introduce their outstanding artwork masterpieces.

While Malton had been doing good in their residential projects, Malton biggest catalyst in their corporate should see Pavilion 2 topping it's list as they JV with Hohup in the prime connecting place of Bukit Jalil, Puchong and KL in Bukit Jalil City. Pavilion 2 will see experience mall management, Pavilion bringing another level of lifestyle into Bukit Jalil soon once the mall is ready.





In my opinion, Malton at the current value of RM 0.91 is deemed hugely undervalued at the moment as it is trading at a 42% discount from it's NTA of RM 1.57. And with 1H 2014 EPS of 9.69 cents, trading at PER x10 will look at Malton being valued at RM 0.97 already. I believe Malton will be heading for a bullish run in the coming days, as they challenge above RM 1.00 in a strong manner, while a longer term outlook will see Malton conquering RM 1.50.

Others reference on Malton
Redevelopment of Pusat Bandar Damansara
Pavilion 2 JV with Hohup

Bone's short term TP: RM 1.00

Are you ready to ride the wave? You decide.

Cheers and have a nice day

Regards,
Bone
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