Tuesday, 7 March 2017

What are you waiting now if this company is a future MidValley

As you know, one of the criteria of being successful in investing had to be attributable towards the ability to foresee the long term potential when nothing is built yet. Of course, in order to reap the great success of this opportunity, it is utmost important that the holding power have to be very strong, and the investor much have high tolerance towards resisting the urge to take a premature profits, and also being able to ride through rough moments in the market, controlling emotions.

Before I would present to you this company that had such potential in replicating successful malls such as MidValley and One Utama, you must ensure that you have a good solid cash that is prepare to go long haul, for at least 3 to 4 years.

Now, I foresee this very precious company is going to happen exactly what I had went through with the other 2 companies I am involved in 4 to 5 years ago.

Before I am going to tell you what company is this, let me tell you what I had went through 4 to 5 years ago.

As some might know and some might not know, I am involved in the real estate industry 4 to 5 years ago. Prior in dealing with sub-sales market, my first experience in selling a new project from a developer is with i-Bhd (iBhd - 4251). As some of you might know, iBhd is previously dealing in air conditioner, however, the company took a major change shift and turnaround, and got involved into property development. Basically, iCity Shah Alam is the first big maiden project of iBhd, which comprises of SOVO, SOHO, Residential, Service Suites, Offices and Shopping Complexes. As for me, I am involved in the sales and marketing of iSOVO, which is erected above the carpark. During that time, Shah Alam is selling for about RM 500 per square feet. Sales are crazy and most units from 2 blocks of SOVO taken up in 1.5 months. As I am seeing the sales bombing in so easily like chicken laying eggs, it intrigued me into looking into iBhd share price.

That was in 2012 where iSOVO is launched, and iBhd is only a mere 80 cents. The rest is history, where in 2014 before the share split, it is trading at RM 3.50. You do the maths and see what is the return.


So, prior after the completion of iSOVO in iBhd, I continue my real estate journey, and seize the opportunity in my 2nd project sales with Gadang. During that time, Gadang is known as a construction outfit player, and not too well known on property development as it's previous portfolio consist of lower end housing. However, the launching of The Vyne - Sungai Besi is one of the maiden high end flagship project by Gadang. With a total of 5 blocks in the whole master plan, I am involved in the 2nd and 3rd block of the sales (Block B and Block C). Block A was fully sold out then.

To my amaze, Block B take up rate was again amazing. If I am not wrong, the whole of Block B is fully taken in 3 weeks. Since I had saw what happened to iBhd on their first maiden project, I told myself not to miss Gadang, especially if I am also involved in the sales.

At that point of time, Gadang is just trading at 80 cents. And the share price sky rocketed into RM 2 region due to improving revenue and profits.

So, can you see it now that investing is really that easy ? Based on the above 2 example, both companies saw share price sky rocket a lot on their first maiden project.

Now, I foresee that this company that is going to provide the same feat!!! You better be ready for this, honestly!

This company is previously plagued with financial problem, and it took Dato Tiong to rescue this ailing company from being delisted, now into a coming up mega rock star in the property arena. Ecofirst Consolidated Berhad (Ecofirs - 3557) is the rising major star player that every property and share market investor need to look on.


Now the company maiden flagship project will be a 87 acre prime freehold land at Ukay Perdana. According to Google Maps, it is 7.2km away from KLCC, 8 minutes drive. This mega project that is undertaken by Ecofirst carries more than RM 5 billion in GDV. And with it's official launch of Liberty Arc in March, this is going to be the time where the share price will start to melt the brake pads. According to reliable information, Block B and Block C are 95% sold out and the remaining Block A will be going out fast too. (Source - AmpangUkay)

While there aren't any recognition of revenue for Liberty Arc, things are not going slow at the site.
According to Google Maps, the earthwork are being done and latest update reveal that even the foundation pilling had carried out and going to be completed soon.

If you have doubt on me, I will show you the financial statement. It is stated that "Property Development Cost" in it's current asset at RM 200 million!!! Now that is a big figure that if once recognized into sales revenue, you know what will happen into the financial result.

Now after seeing so much of lucrative facts and example, it is your time again to do the decision making. I have wrote on this company back then when it is still 20 cents in 2013, that is when this company is forming up after a series of restructuring.

Now in 2017, the company is starting on it's maiden project on the 87 acre freehold land with more than RM 5 billion in GDV, where the share price is sitting at just RM 0.28 cents. Yes, I am introducing Ecofirst to you before this company start to rampage all the way up like how iBhd and Gadang did for their First Maiden Project.


After sacrificing the cash cow 1Segamat mall in Johor in order to improve cash flow and reduce debts, the integrated development in this place which comprises of malls, hotel and service suites will put a strong recurring income for the whole group, and it is potential to replicate into the MidValley of Ampang Ukay.

3 to 4 years ago, IGBREIT is around RM 1.00. To date, it is RM 1.71, not counting into the dividends throughout the journey. You would had sighed on the opportunity missed out 3 to 4 years ago, and you cannot go back into the time.

Now, Ecofirst is 28 cents. I am telling you that in 3 to 4 years down the road, it could be 70 cents, 80 cents, and who knows, more than RM 1.00. Don't be surprise, but everything starts with the action now.

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