Tuesday, 30 September 2014

Gpacket - A New Chapter with TM

The Green Packet saga that had been a hot hit last year with a stint on a the verge of being sold to Digi had abruptly ended with a pact with the local fixed line internet provide - TM. Speculation had been hot and furious back then with the heavily indebted Green Packet clinging with a small glimpse of hope in their money burning core asset - P1. Back then, Green Packet had invested more than RM 1 billion in P1 infrastructure and site, however, the investment had not been able to see a strong flow of income with tons of infrastructural upgrades which had continue to burn a deeper hole into Green Packet pocket.

With the latest strategic partner TM on board, what could be the next course of direction for Green Packet?

Let's have a quick look at Green Packet latest chart outlook
Green Packet had been trading at the range of RM 0.35 for the past 5 months. Green Packet dipped further after an outlook of a possible entry of PN17 status, however to see a strong rebound which had been supported by shareholder buy back from Tan Sri Ong Leong Huat vehicle OSKVI and Tan Sri Dato Kok Onn open market purchases. Green Packet is looking to see a good reversal in the coming days, which will be suggestion a stronger pick up in the participation of volume as Gpacket looks to challenge a quick resistant line at RM 0.50

Green Packet - Riding on TM

Recently, it had been the government effort to see a higher penetration rate of high speed internet coverage in the whole Malaysia. The MCMC had set a 75% of penetration rate in the internet coverage by 2015, which is still seeing a gap to be closed up after 1st quarter 2014 reported a penetration rate of 67.3%. The Budget 2014 had also highlighted the launch of HSBB phase 2, a total capex of RM 3.4 billion which will be broken down into RM 1.8 billion for the expansion of HSBB coverage in major town and cities and RM 1.6 billion for the suburb area. (The Star - Budget 2014, HSBB Phase 2 to take off)

With TM holding the sole concessionary towards the development of HSBB in Malaysia, the acquirement of stake in P1 under the arm of TM will be a good a strong indicator for Green Packet to see a life in the coming days ahead.

Based on the research did, penetrating into the rural areas with through land line cable might be difficult and also not cost friendly. The investment might not be able to see a visible return in should TM be laying ground lines to penetrate into rural areas. However, turning around the table towards and shifting into wireless HSBB coverage might be a good solution now.

While TM had been lacking of higher frequency spectrum that can carries more data, TM definitely need to get hold of a higher frequency spectrum in order to see the services being labeled as HSBB. With this in line, Green Packet's P1, carrying 30 MHz of 2300 spectrum and 20 MHz of 2600 spectrum, had come as a good solution for TM as the duo joint together to compliment each other.

Based on the outlook, the framework to penetrate into the rural areas will be seeing TM expanding fiber optic coverage and building more than 1,000 telecommunication transmission tower for wireless transmission, and P1 to disseminate the data using the 4G LTE data spectrum. (Sinchew). ZTE and OCK will be the prime consultant and contractor for the building and construction of the telecommunication tower.

With this in line, this will bring TM back into the wireless game to compete against Telco which had been providing services in this lucrative market. With the world moving around, wireless market will be the next "huge data consuming market" in the coming days. TM will be hitting the road soon with the recent completion of acquirement in P1 and Green Packet restructuring deal which is to be finalized this week (3rd Quarter of 2014). TM will leverage on the all ready sites from Green Packet to roll out TMgo (Broadband-to-go). According to sources, the sites that had previously installed by Green Packet under P1 can be switched into 4G ready in a couple of hours, putting TM on a strong front for an official launch of TMgo to hit the major towns and cities in Klang Valley. (Source - The Malay Mail)

Gpacket will be an interesting stock to be look out in the coming days. While the financial data of the company had been weak, the entrance of strategic partner - TM, will be going to do huge magic for Gpacket in the coming days ahead. Gpacket will be an interesting stock to be traded / invested based on:
- The finalization of deal and work out structure with strategic partner - TM
- Exposure in the HSBB Phase 2 which is worth RM 3.4 billion
- Convincing buy backs from substantial shareholder - OSKVI and Tan Sri Dato Kok Onn
- TM soft launch wireless service - TMgo in rural area

I believe Gpacket will be able to challenge higher in the coming days, with a short term outlook at RM 0.50. Should the joint roll out effort of TM-P1 to be strong, Gpacket will be definitely going to see a better change in the future.

Begin a new chapter with Gpacket? You decide.
Bone's short term TP : RM 0.50

Cheers and have a nice day


Monday, 29 September 2014

ANCOM - Red Hot Berry

The US equity market had saw a good rebound last Friday after DJIA regained pace, putting up at 17113.15 (+167.35) with Nike leading the charge forward after seeing Apple sliding off more than 3% in the previous day after the viral bend test on the latest iPhone 6 and 6 Plus went cracking in social media.

Media, be it from social media, news media or any kind of media is very influential in the current internet era. News can be spread around the world in just seconds from a click - and that is the power of the internet media.

While the international media is always hot with news from all over the nations, our local media had been in a hot scene as of lately. Little known Ancom Berhad had been actually the holding company for Redberry Sdn Bhd, which had been involved in online and offline news and media.

Ancom Berhad is a diversified company that had been involved in
- Agricultural and Industrial Chemical manufacturing and sales
- Polymer manufacturing and marketing
- Logistic solution for chemical transportation, container, bulk cargo handling and warehousing
- Media marketing and advertising

Let's have a quick look at Ancom latest price chart
Ancom Berhad had been trading at the range of RM 0.55 to RM 0.70 for the past 6 months. Ancom had been seeing open market purchases from Managing Director Dato Dr Siew Ka Wei and stakeholder Chan Thye Seng under his listed vehicle P&O Berhad. At the current level, Ancom will deemed to have been well consolidated and a fresh surge of volume will be bringing Ancom higher in the coming days.

ANCOM - The Next Big Media House

The media and advertising industry is a multi billion ringgit industry in Malaysia. The industry will only continue to grow bigger to reach out to more people with the leverage of internet and social media. With this huge prospect, ANCOM had got to it's feet for a piece from the big pie.

ANCOM had been operating their media unit under Redberry. The list of services that is offered under Redberry includes:
- Bernama TV - A 24 hours local and international news in four languages covering current issues and trends
- The Malay Mail - The oldest English paper since 1896
- The Malaysian Reserve - Addressing 10,000 business decision everyday, covering business news, corporate news, stock news, current issues and policy decisions that will impact business directions
- Redberry Airport - Exclusive media concessionaire at the KLIA, KLIA 2 and Senai International Airport
- Redberry Ambient - Captivating audience through digital screens
- Redberry Contact Center - Third party outsource call center
- Redberry Digital - Online & Mobile marketing
- Redberry Event - Event organizer for international and local motor sports event
- Redberry Outdoor - Outdoor advertising in highways (DUKE, SILK, BesRaya, NPE, Smart) and Rapid KL Bus fleet
- Redberry Retail - Through MagiqADS, providing retail media solutions like billboards, banners, floor media, trolley, shelf ads and sponsorship to giant like AEON, AEON Big, Tesco

It had never been easy for ANCOM, especially with the high operation expenses in the media house.
ANCOM had been seeing a challenging year for FYE 2014, with the implementation of minimum wage, higher electricity tariffs and stiffer challenging environment. While ANCOM had recorded a lower revenue for FYE 2014, it had drastically reduce the operation cost which had turn the company into profit with an EPS of 4.3 cents. The current share price is trading at 55.8% discount based on NTA of RM 1.29.

Latest Event
ANCOM had restructured the Redberry with 2 significant changes revolving around The Malay Mail and The Malaysian Reserved.

To recap back, local billionaire Tan Sri Syed Mokthar had been vying for a media publishing unit for quite sometime, however, been rejected by the Home Minister. This had came in a good timing for ANCOM's cash bleeding "The Malaysian Reserve" which focuses in daily financial news. Tan Sri Syed Mokthar is believe to had lock in a deal for "The Malaysian Reserve", with a possible absolute buy over of "The Malaysian Reserve", or through buying a stake in Ancom Berhad.

While doing so, Redberry will put in full focus in "The Malay Mail". The latest corporate hiring which includes Datuk Wong Sai Wan, managing director of The Star, resigned and join Redberry as Director of Special Projects. His moves had came along with the joining of Leslie Lau and Joan Lau, both senior editor in The Malaysian Insiders along with a team of 30 people. Another senior newsman, Datuk Syed Nadzri Syed Harun had also joined Redberry from The News Straits Times Press.

Earlier this year, The Malay Mail had went ahead to launch a package deal with Huawei and Samsung with other 3 papers, forming a Media Alliance and bringing out the digital revolution in the newspaper industry. (Source - The Malay Mail)

While speculation had been very hot on what could be the deal like for Tan Sri Syed Mokthar with Ancom, it had been closely speculated that ANCOMLB (Ancom Logistic Berhad - 0048) might be one of the vehicle that is used for the entry of Tan Sri Syed Mokthar via a private placement that is going to come soon after a a series of assets sales, capital reduction and capital repayment exercise that had went through in Ancomlb. Rumor had it said that Redberry might be injected into Ancomlb with huge bankrolling from billionaire Syed Mokthar to power the media house and unseat The Star in the coming days.

The Malay Mail is going in the right direction by bringing the newspaper into hand held gadgets. Ancom will be going to see it's fruits of investment in bringing in and assembling a team of high powered and experience group.

Meanwhile, Tan Sri Clement Hii had also been joining in the media run with his latest HCK Media which publishes The Ant Daily. Rising up also had The Sun which is under BJMedia will also be on it's way to capture a bigger pie. By looking at the charts, It can be viewed as small-medium size media firm are ready to unseat The Star.

1. Ancom - Redberry

2. HCK Capital - The Ant Daily

3. BJMedia - The Sun

4. Star - The Star

I believe Ancom will be a good company to be invested into based on :
- Restructuring Redberry with new experience management and strong team with prime focus in The Malay Mail, focusing on e-paper subscription.
- Trading at 55.8% discount from NTA of RM 1.29.
- Investment stakes in Ancomlb (47.07%) and Nylex (45.61%) is worth a combined RM 85.68 million (If calculate Nylex based on NTA of RM 1.50 which is worth RM 132.95 million, translating to a combined value of RM 161.91 million). Ancom Berhad current market capitalization is RM 122.615 million.
- Sale of The Malaysian Reserve to billionaire Tan Sri Syed Mokthar at undisclosed price, rumored to be hitting more than RM 50million, which includes licensing.

Ancom will be looking to trend higher in the coming days. A break above RM 0.60 will put Ancom into challenging psychological mark of RM 0.70. Long term outlook will put Ancom trading at RM 0.80 to RM 1.00.

Bone's short term TP : RM 0.70

Kinibiz - Syed Mokthar buys Malaysian Reserve
The Edge Malaysia

Cheers and have a nice day


Friday, 26 September 2014

SYSCORP - Sizzling On Samalaju

The SCORE program that had been running in Sarawak had been intensifying as of lately as many of the energy intensive project had started to roll out and become operational by the end of 2014. The progressive development of SCORE's Phase 1 (2008 to 2015) had saw mega aluminium smelting plant being set up, as well as the RM 1.8 billion Samalaju Deep Sea Port, which is the main port that will be catering for the supplies for the energy-intensive industries and construction materials for other infrastructure projects.

While the score project had been running in a huge scale, who are the parties that will be looking to benefits from it?

At a quick glance, it is noticeable that Press Metal Berhad (PMetal - 8869) had been a huge beneficiary from the huge demand in alumnium, which will be seeing production shooting above 405,200 tonnes for FYE 2014.

Another beneficiary will be CMSB, with it's USD 2 billion world class aluminium smelter - SALCO, which is located at Samalaju. SALCO is able to handle up to 1.5 million tonne of aluminium.

While both the above had been involved in the smelter plant, logistic to cater for supplies and material and also distribution will be another lucrative income as well. Which this in line, SYSCORP had came into the picture.

Let's have a quick look at SYSCORP latest chart and readings.
A quick look at SYSCORP will reflect that the stock had consolidated towards the lower range of RM 0.50 in a gradual manner. The roll down of the prices, however, did not associate with big volume shot down, which had suggested on the major accumulation at the range of RM 0.60. At RM 0.50, SYSCORP had also met with it's main technical support. SYSCORP will be seeing a strong rebound anytime soon in the coming days after the consolidation had peaked out and started to seek for fresh volume.

A quick financial outlook will see SYSCORP locking their revenue above the RM 1 billion mark for FYE 2014. This had been a big breakthrough for SYSCORP and SYSCORP will be continue seeing a growth in it's shipping and shipbuilding division in the coming years.

SYSCORP - Burning On Samalaju's Fire

SYSCORP is currently the most important and major logistic player in the Samalaju Deep Sea Port. SYSCORP had already started their services in the Samalaju Port with 2 barge berths and a roll-on, roll-off ramp. The facilities is able to cater for 450,000 tonnes of cargo for this year. While doing so, SYSCORP had secured 2 major building packages for the port project, propelling them to have the first mover advantage at the port, which will be expected to be fully operational by 2016.

To recap, the SCORE program is a energy intensive program which will be harnessing 20,000 megawatts of hydroelectric power, 1.46 billion tonnes of coal, 1.3 million barrel of oil and 40.9 trillion cubic feet of natural gas at a conservative measure. This had not take into consideration of the logistic for building and construction material for the booming up Samalaju Industrial Park. Adding more weight towards the logistic for exportation will be the current 2 major plants (Press Metal Bintulu Sdn Bhd and OM Materials (Sarawak) Sdn Bhd) that had been operational in Samalaju Industrial Park, with another 1 to begin operation in this quarter and 2 more major plant to be ready by 2016. (Source - Sea Trade Global)

SYSCORP had also made some prudent investment in Indonesia after acquiring a 49% stake in freight forwarder PT Baruna Adipras for a good cut at RM 1.35 million. Currently, SYSCORP is seeing commodities such as animal feeds and related food products trading between Indonesian ports. However, SYSCORP will move into the iron ore trade which will be more lucrative.

SYSCORP will continue to strengthened their business activities in shipbuilding and shipping activities. While SYSCORP is not directly related to the booming oil and gas industries, it had been player a vital support for the oil and gas industries through building, repair and maintenance.

I believe SYSCORP will be a good company to be invested into based on :
- Huge prospect in the SCORE program that will be seeing 1.46 billion tonnes of coal, 1.3 million barrel of oil, 40.9 trillion cubic feet of Natural Gas, specific building and construction material, exportation for Samalaju Industrial Park manufactured goods.
- Heavy exposure towards the booming of SCORE program in Sarawak
- Leading Logistic Player for Samalaju Deep Sea Port
- Secured 2 major building and construction project for the Samalaju Deep Sea Port
- Started commissioning services in Samalaju Deep Sea Port, with a capacity of 450,000 tonne a year
- Strong fleet of ships (301 vessels) ready to cater for more cargo demand immediately.
- Indirect exposure in the oil and gas industries through ship building, repair and maintenance service.
- Strong growing revenue breaking into RM 1.12 billion for FYE 2014
- Trading at 45% discount towards NTA of RM 0.94

SYSCORP is truly a good company to be invested into at the current level based on it's strong exposure in the logistic of SCORE project. A quick outlook will put SYSCORP back in challenging RM 0.60, while a longer term outlook will suggest SYSCORP in trading near to RM 0.80 to RM 1.00 range.

- The Edge Malaysia
The Borneo Post

Choose to sizzle with Syscorp? You decide.
Bone's short term TP : RM 0.65 (Maintained)

Cheers and have a nice day


Thursday, 25 September 2014

SMI - Return On Track

The market had taken a step back arising from the tension that is continuing in the Middle East with the joint effort from the US and several Middle East country in the fight against the IS in Syria through air strikes and missiles. However, the news is generally seeing as being absorbed into the market as the policy market in the US and Europe continue to strive to a further recovery with monetary easing and stimulus packages. The KLCI is currently resting at the 1st support level of 1840 before looking for a new direction in the coming days.

While global economy is heading for recovery, little known South Malaysia Industries Berhad (SMI - 4375) would be also heading for a recovery for FYE 2014 after putting up losses for the past couple of years due to the challenging environment of the steel and wire industry and the delay in several prime projects launches.

Let's have a quick look into SMI latest price chart

SMI had been consolidating and trading at the range of RM 0.20 for the past 6 months. The consolidation is seeing saturation at the range of RM 0.20 and will be looking to see a new surge of volume in bringing SMI into higher range in the coming days. Trading volume will be anticipated to pick up in the coming days after a long consolidation.

SMI - Steering Positive Again

SMI is involved in the following business
- Manufacturing and trading of cold drawn, annealed and galvanized PVC coated steel wires
- Properties development
- Car park operator

SMI started out in the manufacturing and trading of steel wires in the beginning. As the company grows, SMI had ventured into the properties sector which is primarily focused in Kelana Jaya and Ipoh, Perak. Some of the completion of property by SMI includes the Kelana Square and Zenith Residence and Zenith Corporate Park which is located at the strategic vicinity of Kelana Jaya.

SMI main losses came from the division in China which is mainly operating a cinema business at Wuhan, Hubei. Due to the low box office and stiffer competition from coming up new complexes in the area, SMI had finally put a stop to this bleeding asset which is siphoning more than RM 3 million annually from it's operation, maintenance, depreciation of assets and amortization cost. In turn, the site will be leased out to a local party to change the site into a restaurant cum entertainment outlet which will enable SMI to enjoy steady recurring income from the rental lease.

Even though SMI had been showing a negative earning in it's quarterly, the group is actually standing in a strong cash position amounting to RM 45.04 million, equivalent to RM 0.214 cash per share. As per the 1H of FYE 2014, SMI had a NTA of RM 0.73, which is trading at a 71% discount currently.

Coming up on SMI

SMI had held back several projects launches in the market as to see a better direction in the property market before launching. Right now, SMI will be looking to hit forward with several projects.

1.) Zenith Corporate Park - Phase 3 dubbed as Pinnacle, Kelana Jaya

The last remaining Phase 3 to be developed under with Perantara Properties Sdn Bhd and Terra Mirus Kelana Sdn Bhd that will be seeing a GDV of more than RM 120 million.

The project which is looking at the range of RM 550 to RM 600 per square feet is at hot snatch target which is located at the prime area of Kelana Jaya, right behind the booming Paradigm Mall. According to insider sources, the response for Pinnacle had been outstanding with a huge take up in their soft launches. The unbilled sales will be able to put SMI back to the black.

2. Bandar Meru Raya, Jelapang, Ipoh

The last phase of the hotly sought after Bandar Meru Raya which is developed by wholly owned subsidiary - Anastoria Sdn Bhd will be looking to unlock the last phase, Phase M8, which consist of 64 units of double storey terrace houses with a GDV of RM 19.9 million. The project had saw a strong response and is currently near to sold off status.

3. Taman Saikat

Taman Saikat is another residential development undertaken by Anostoria Sdn Bhd. This project will be featuring a mixed of terrace house, Semi D and Bungalow which is located near Gunung Rapat area. Taman Saikat had a close proximity to the city area of Ipoh. The latest phase being 22 units of double storey carrying a GDV of RM 7.6 million (RM 350,000 per unit) is reasonable priced and fully sold off.

SMI will be on it's journey to turn the table around, in FYE 2014, with turn around catalyst featuring the hot and prime project at Pinnacle - Kelana Jaya. At the price of RM 0.20, SMI is deemed a favorable price to be vested into due to the following:
- Strong cash level of RM 0.214 cash per share
- Trading at 71% discount from NTA of RM 0.73
- Good and prime land bank in Ipoh and Kelana Jaya
- Launching of The Pinnacle - Kelana Jaya carrying a GDV of more than RM 120 million which had already seen hot snap up at soft launches, currently sitting in huge unbilled sales.
- Discontinuation of cash bleeding operation in China
- Steel wire manufacturing and trading to see a pick up in 2H 2014

SMI will be looking to trade higher in the coming days. Pushing above RM 0.25 will see SMI heading towards RM 0.30 in the coming days. At the current price, SMI is deemed very attractive with it's good cash value in hand, and high prospective projects launches.

Bone's short term TP: RM 0.25


Wednesday, 24 September 2014

VSOLAR - Solar Synergy

Malaysia is on the track in seeking to intensify the development of renewable energy which was set of since 2011 as to reduce the carbon income of the country through renewable energy such as Solar Photovoltaic (PV), Biomass / Biogas and Hydro Power Electricity. Which this in line, the government had been reinforced by fiscal incentives such as investment tax allowances and the SREP (Small Renewable Energy Program) which encourages the connection of small renewable energy power generation plants to the national grid.

With this in line, on 6th January 2014, VSOLAR (formerly known as Fastrack Solution) had restructure the company direction and core business direction towards the renewable energy sector, with a focus in the solar farming industry.

Let's have a quick look at VSOLAR price chart

VSOLAR had been trending in the range of RM 0.14 before the break up above RM 0.15 which mark a new up trending move on VSOLAR. As VSOLAR had realign their core business focus into solar farming, VSOLAR will be expected to see more interested investor in the coming days, which will be looking to see more participating volumes in the coming days. A quick resistance will be placed at RM 0.20, while a convincing strong breach above RM 0.20 with a good supporter volume will put VSOLAR trading in the uncharted territory.

VSOLAR - Power of Solar

Solar Interactive Sdn Bhd, a wholly owned subsidiary of VSOLAR, had on 1st August 2013 entered into a Renewable Energy Power Purchase Agreement (REPPA) with TNB for the sale and delivery of renewable energy by for a concession of 21 years. For a start, VSOLAR had started a 500kW solar farm in the region of Simpang Pulai, Kinta, Perak with a Feed-In Tariff (FIT) rate of RM 1.3812 /kWh, commenced 3rd November 2013.

The renewable energy sector had been a hot topic recently, which had saw a number of listed company that had direct business relation in the sector being getting much public interest. Let's have a quick look at the following company which is on a hot stint in renewable energy.

1. Fitters Diversified Berhad (Fitters - 9318)

Future NRG Sdn Bhd (FNRG) is involved in biomass to renewable energy-distributed generation and combined heat and power projects. This includes biomass gasification for rural electrification, captive power and grid-connected plants with capacities up to 4Mwe and also conventional steam cycle power plants apply for larger capacity projects 

2. Amcorp Properties Berhad (AMPROP - 1007)

AMPROP had been a hot target for investor after emerging as the single largest solar farm with 10.25MW capacity located at Gemas, Negeri Sembilan. AMPROP had been in a strong uptrend since 80 cents, hitting a high at RM 1.49.

3. Tek Seng Holdings Berhad (TekSeng - 7200)

Tek Seng had been in a strong uptrend after seeing a strong record of orders for the solar panel after seeing huge appetite in the Solar Farming sector.

4. Cypark Resources Berhad (Cypark - 5184)

One of the more established player in the renewable energy sector will be Cypark. Cypark had solar farm spanning from Pajam and Bukit Palong of Negeri Sembilan, Kuala Perlis in Perlis and Rimba Terjun in Pontian, Johor. The 5th site will be located in Kuala Sawah, Rantau, which is the 3rd in Negeri Sembilan with is said to have a 6,475MWh annual generation capacity capable of powering 7000 homes with green electricity. Cypark aggressive expansion in the Solar Farming had also attracted savvy investor Chua Ma Yu into the sector as well.

Next Up Coming Catalyst

VSOLAR had saw a 10% private placement from Asia Bioenergy Tech Berhad (AsiaBio - 0150) recently. While under the SREP plan, the maximum allowable limit for an individual company is 10MW, which means Solar Interactive Sdn Bhd still have a capacity of 9.5 MW in the coming days to be installed.

According to sources, VSOLAR had been planning their phase 2 of solar farm which will be looking to see approximately 3 to 5 MW plant being set up.

VSOLAR will be the next big thing after CYPARK after realigning their business focus into solar energy farming. At the current market capitalization of RM 50 million, VSOLAR is just putting it's 1st step into the industry. A 10 MW solar farm will be able to generate a recurring income of around RM 11 to 12 million per year. With the new direction in VSOLAR, we believe that VSOLAR will be the next big player in solar farming in the coming days ahead.

At the current price of RM 0.18, VSOLAR is a very attractive target for a long term investment. A quick outlook will definitely put VSOLAR challenging RM 0.20 and testing RM 0.25 in a short term whilst a long term target will be looking at RM 0.50.

Solar and you? You decide.

Bone's short term TP : RM 0.30

Cheers and have a nice day


Monday, 22 September 2014

September Special - BJCorp - The Rise Of The Empire

Berjaya Corporation Berhad is a no stranger to most of the Malaysian investor and trader. The Berjaya Corporation group of companies started back then at 1984 when founder, Tan Sri Vincent Tan acquire a controlling stake in Berjaya Industrial Berhad from Broken Hill Proprietary Limited (Australia) and National Iron & Steel Mills Limited (Singapore). Under the guidance and leadership of Tan Sri Vincent Tan, he had managed to turn the diversified conglomerate which is now under the helm of Berjaya Corporation Berhad (BJCorp - 3395)

Berjaya Corporation Berhad, with a total employee strength of more than 16,000 had been engaged in a diversified business portfolio ranging from
- Consumer Marketing, Direct Selling & Retail
- Financial Services
- Hotels, Resorts, Vacation Timeshare & Recreation Development
- Property Investment and Development
- Gaming and Lottery Management
- Environmental Services and Clean Technology Investment
- Motor Trading and Distribution
- Food & Beverages
- Investment Holding and others

While Berjaya Corporation Berhad had a wide span of subsidiary that cover a lot of business, let's have a quick look at some of the listed business entity that is currently held direct and indirectly by Berjaya Corporation Berhad.

1. Berjaya Sports Toto Berhad (BJToto - 1562)
Market Cap - RM 5.039 billion
BJCorp direct and indirect interest of 48.64% in BJTOTO is equivalent to RM 2.45 billion

2. Berjaya Media Berhad (BJMedia - 6025)

Market Cap - RM 125.77 million
BJCorp direct and indirect interest of 13.39% in BJMedia is equivalent to RM 16.84 million

3. Berjaya Food Berhad (BJFood - 5196)

Market Cap - RM 894.13 million
BJCorp direct and indirect interest of 51% in BJFood is equivalent to RM 456 million

4. Berjaya Asset Berhad (BJAsset - 3239)

Market Cap - RM 1.075 billion
BJCorp direct and indirect interest of 16.38% in BJAsset is equivalent to RM 176.08 million

5. Berjaya Land Berhad (BJLand - 4219)

Market Cap - RM 4.2 billion
BJCorp direct and indirect interest of 62.5% in BJLand is equivalent to RM 2.625 billion

6. Berjaya Auto Berhad (BJAuto - 5248)

Market Cap - RM 2.618 billion
BJCorp direct and indirect interest of 50.48% in BJAuto is equivalent to RM 1.321 billion

7. Atlan Holdings Berhad (Atlan - 7048)

Market Cap - RM 1.179 billion
BJCorp direct and indirect interest of 26.3% in Atlan is equivalent to RM 310.07 million

8. Stemlife Berhad (Stemlfe - 0137)
Market Cap - RM 115 million
BJCorp direct interest of 10% is Stemlife is equivalent to RM 11.5 million

9. Magni-Tech Industries Berhad (Magni - 7087)
Market Cap - RM 346 million
BJCorp direct interest of 23.2% in Magni is equivalent to RM 80.27 million

10. Berjaya Philippines Inc (BCor.PS)
Market Cap - RM 1.665 billion
BJCorp direct interest of 88.26% in Berjaya Philippines Inc is equivalent to RM 1.469 billion

Taking the 10 listed subsidiary that is under Berjaya Corporation Berhad, that is already commanding a whooping RM 8.915 billion. This had yet to take into consideration of the unlisted entity which comprises of Cosway, Berjaya University College of Hospitality and some others companies.

While digging deeper into it's tangible asset and properties held under BJCorp, it had been a interesting find that most of the lands and properties held under it had been mostly dated back then until 1990 which had not gone through an updated valuation on the current market prices of the assets.

BJCorp own several notable prime pieces of land which is at Jalan Ampang, Mukim Petaling, and also a hot rising spot in Taman Tun Abdul Razak. Most of the land held are freehold lands. Assume the land value increase by a skeptical 50%, the land revaluation reserves is sitting at more than RM 500 million.

At the current market capitalization of RM 2.107 billion for BJCorp, this is definitely a grossly undervalued, underestimated and underrated share which had been bolstering it's presence in the South East Asia, China, Hong Kong, Korea and London. While it is hard to determined the true value in Berjaya Corporation Berhad, the tangible and intangible assets and the on going business and prospectus will definitely see Berjaya Corp being a conglomerate of more than RM 10 billion in market value.

BJCorp - Hot Brewing Prospectus Ahead

The coming years for Berjaya Group will be definitely be very interesting and powerful which a number of huge mega projects that will be taking place, as well as penetration into the new market. On the list will be

1.) Berjaya Land mixed development project valued at RM 6.3 billion on the 244.79 acres in Selangor Turf Club land at Sungai Besi. This development which had been a costly wait for BJLand had finally saw a green light after the relocation of STC to the new 750 acres of land in Bukit Tagar. Recent development had saw BJCorp disposed 15 parcels of land totaling 10,726 acres together with palm oil mill in Selangor to Tagar Properties Sdn Bhd for RM 743m, putting a net gain of RM 147 million.

The green light is further confirmed when BJCorp had increased it's stake in BJLand using wholly owned subsidiary Bizurai Bijak Sdn Bhd to acquire 4.22% in BJLand, raising it's total stake to 62.5%.

2.) Berjaya Waterfront mixed commercial and high end residential development in Johor will be another big hit in the Berjaya Group. Back then in December 2013, Berjaya Times Square Sdn Bhd had sold 20% stake to Sultan Ibrahim Ismail Sultan Iskandar of Johor. According to sources, Berjaya Waterfront will be replicating another mini Bukit Tinggi in JB which will comes with the spices of slot machine in the prime land spreading over 17 acres. Atlan, another subsidiary of Berjaya Corp will be also in the highlight of the Berjaya Waterfront development.

The latest source will see the possible entry of Singaporean Tycoon - Peter Lim Eng Hock into the Berjaya Waterfront development as well through the newly acquire vehicle - TMCLIFE
Peter Lim had an extensive wide range of interest, including healthcare, real estate, automotive, fashion, food and beverages as well as education.

3.) BJCorp winning the tender to operate Vietnam's computerized lottery system, which will involved in the investment, procurement, installation and operation of the system. The project will be undertaken by Berjaya Gia Thinh Investment Technology Co Ltd (Berjaya GTI), which is 51% owned by Berjaya Lottery Vietnam Ltd, which in turn is 80% owned by BJCorp and 20% by BJToto. As of 2014, the total population of Vietnam stands at 92.5 million people, which is 3 times the population of Malaysia. As being the sole operator for a 92.5 million population of people in Vietnam, and the strong urge of Vietnamese to gamble, the legal lottery system will be looking to take a skeptical 10% of population, which will be translating to 9.25 million of participants.

All this hot brewing development will be very powerful and enormous when launched. While doing so, insiders had been seen accumulating the shares of BJCorp in a gradual manner at the range of RM 0.50. Executive Director Dato Zurainah Binti Musa had been accumulating BJCORP-LC at the price range of RM 0.28, translating to paying RM 0.56 for a mothershare in BJCorp, which represent a 12% premium over the mother share which is priced at RM 0.50.

I believe BJCorp is definitely a good and prospective investment at the range of RM 0.50 based on
- Berjaya Land RM 6.3 billion GDV at Sungai Besi
- Berjaya Waterfront with a possible more than RM 10 billion worth of GDV, with a potential entry from Singaporean developer - Peter Lim Eng Hock.
- Vietnam number forecast operation license. Vietnam population is 92.5 million, 3 times of Malaysia population.
- Insider buying at RM 0.50. 
- Deeply undervalued at the current market cap of RM 2.1 billion while investment and asset value more than RM 10 billion.
- Disposal of land and investment asset in paring down debts and churning more cash for the coming mega development.

BJCorp at the range of RM 0.50 to RM 0.55 will be a good price to lock into position. A quick outlook will put BJCorp in testing RM 0.60, while a long term outlook will put BJCorp back to action above RM 1.00.

Lock in or out? You decide
Bone's short term TP : RM 0.60

Cheers and have a nice day


Friday, 19 September 2014

Nicorp - Raging Oils

The global market had been in an upbeat mode after the Fed had continued to maintain the near zero interest rate as they plans to end it's third bond buying program in October. Meanwhile, in the European region, ECB, under Mario Draghi, is on it's way to put up with the $ 3 trillion euro (USD 3.9 trillion) stimulus program that is aimed to boost up the European economy. On the local outlook, Bank Negara Malaysia had taken the choice to maintain the OPR at 3.25%, hence shedding out the rumored higher interest rate that will dampen the local economy. With all this in line, the bulls are definitely in the advantage position now.

As we entered into the end of 3rd quarter of 2014, the 4th quarter of 2014 will definitely not miss out the Oil and Gas theme, in which Petronas will be panning out projects from the upstream and downstream activities. To back this up, Prime Minister Datuk Sri Najib had on 25th March 2014 forecast Malaysia's oil and gas sector's upstream to a near USD 60 billion (Approx RM 198 billion) over the next 5 years - source TheMalayMailOnline

While the pie definitely looks good and handsome, quite a number of companies had started to place their position to benefit direct or indirectly from the capex and also from the bullish state in the oil and gas industry. Now, will Nicorp ever comes into the oil and gas picture?

Let's have a quick look at Nicorp.

Nicorp had been consolidating at the range of RM 0.125 for more than 6 months. A quick resistant level will be placed at RM 0.145. With most of the huge volume buying are done above RM 0.125, Nicorp will be looking good to penetrate above RM 0.15 in the coming days after seeing a Private Placement being placed at RM 0.12. The consolidation in Nicorp shares should had reach a level of saturation and will be ready for a good run up in the coming days.

A quick look at some of the trends that had been happening in the KLSE market with company entering into Oil and Gas through acquisition or RTO.

1. Symphony, to be RTO by Ranhill Group.

2. PDZ steered by Pelaburan Mara Berhad (PMB) to turn PDZ into a Oil and Gas player

3. GBH to be RTO by Dynac Sdn Bhd

4. DNEX acquire OGPC and moving to oil and gas

5. PWorth JV with Semaring Enterprise Sdn Bhd

6. APFT venturing to oil and gas to 51% in PT Technic (M) Sdn Bhd

As of lately, Nicorp had underwent a 10% private placement that will be used to put a facelift on their existing Seremban Center Point Mall. The mall will be closed for a refurbishment and will then reopen with a TGV Cinema that will be attracting more crowd. Nicorp had also relocated their office to Bangsar, and had indicated that they will be looking to acquire more business as the logging business in Kelantan had been inconsistent due to landscaping of the forest.

Nicorp had earlier went into a joint venture with Keloil Sdn Bhd to venture into the production and distribution of household and industrial gas cylinders and bottling of LPG. The joint venture is between Keloil PTT LPG Sdn Bhd and Erawan LMW Industries Sdn Bhd, with 2 bottling facilities situated at Bukit Kayu Hitam and Bachok with a capacity to bottle up 6,000 tonnes a month.

With the current board reorganization and the dismissal of Dato Raymond Chan from his position of being the CEO of Nicorp, Nicorp will definitely be ready for a new face to steer the troubled and underperformed company in the coming days. According to sources, Nicorp will be seeing a new CEO that will be coming with a few business injection/acquisition, with a high stake being placed in the upstream oil and gas activities.

While everything is still speculative in nature, Nicorp had underwent some board level reshuffle, and will be looking to see a possible huge turnaround in the coming days. At the level of RM 0.125, with a private placement being priced at RM 0.12 and fully subscribed, the risk and reward in taking position at Nicorp is seemingly cushioned on the stronger opportunities in the coming days ahead. A break above RM 0.15 will be looking to see a better run up in Nicorp.

Nicorp can be a good try based on
- Private placement priced at RM 0.12 fully subscribed
- A board level change, with Dato Raymond Chan relinquish of his post of being the CEO of Nicorp
- Potential for more oil and gas exposure, looking at the current trend
- Acceptable risk with a higher chance of reward at the current level

Bone's short term TP: RM 0.15

Cheers and have a nice day