Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Fri, 13 Jul 2018, 10:55 AM

 

MRCB CLOSED IN TOP NUMBER ONE VOLUME & UP 27% WITH PDP FOR LRT3 POSITIVE NEWS, Calvin Tan Research

Author:   |    Publish date:


Hi Guys,

It has been a spectacular rebound for MRCB today due to the positive turn of event for MRCB/GKENT  PDP for LRT3 being restored.

With  almost 200 Million Shares Done with 27% gain MRCB has not been so actively chased up for a long long time.

The Trigger was due to MRCB being oversold plus the Positive Reinstatement of LRT3 Project.

This shows that PH's Policy is not set in stone as things might yet change.

THINGS MIGHT YET CHANGE?

YESSS!

FM Lim Guan Eng said even the HSR is viable if the "Price is Right"

And rumour has it that HSR could be done for half the price - Only Rm55 Billions instead of the bloated Rm110 Billions

And if MRCB could go up 27%  with the reinstatement of LRT3 who knows whether It Might Even Go Double Limit Up if

MRCB's PDP Job for High Speed Rail (HSR) is Up Again?

So guys, keep your fingers crossed & hold tight for those who already bought.

 

What about George Kent who went limit up?

Calvin thinks as of now Gadang offers better value than GKent

Why?

Here are some salient facts about Gadang at current price of 68 sen

 

1) Gadang is 68 sen with NTA of Rm1.03. So Gadang is selling at a 34% Discount to NTA which now qualifies the 30% Margin of safety by Ben Graham.  Whereas GKent is Rm1.29 with NTA only 83 sen. So GKent is selling above Net Asset Value.

 

2) Some other factors favouring Gadang are

a) It has secured TRX Job which is Ongoing

b) Its 2 Job Packages in Pengerang RAPID also progressing well. One of my Johor Buddies owns a canteen in RAPID - serving food to 1,000 Nationals from China, Bangladesh & Others. He has almost completed current phase.

And he is fortunate to win the next new phase of Job in RAPID by providing even more food to 2,000 people starting End 2018

Will Gadang win more Projects in Pengerang's RAPID

See QTR report about its construction progress

Revenue for the current year to date increased 46% to RM271.81 million as compared to RM185.96 million recorded in the preceding year to date. In line with this, profit before tax increased 45% to RM68.37 million in the current year to date.

This was mainly due to:

 Progress arising from existing project namely, RAPID package 301 and 402;

 Commencement of work for new projects namely, KVMRT V206 project , (RM952 MILLIONS VIADUCT PROJECT  FROM SERDANG RAYA  TO UPM)

TRX project and Cyberjaya Hospital project; and

 Recognition of variation orders attributed from completed projects.

AND CYBERJAYA HOSPITAL PROJECT IS NOT AFFECTED BY PH CURRENT BELT TIGHTENING SCOURGE.

LOOK AT ITS PROPERTY DIVISION

Property Division For the current quarter, revenue increased to RM57.91 million as compared to RM51.83 million with corresponding profit before tax increased to RM19.52 million as compared to RM16.92 million in the corresponding quarter of the preceding year.

As the overall property market demand weaken, revenue for the current year to date decreased from RM176.03 million to RM123.40 million. In tandem with this, profit before tax decreased from RM49.55 million to RM38.60 million. This was mainly due to completion of some development projects.

In spite of challenging times for property Gadang managed to eke out a gain. Its Capital City which is a white elephant is also ready soon (Phew! It escaped due to its Cash Rich Partners from Singapore)

One Interesting highlight is Insiders kept up accumulation of Gadang shares

See

While Insiders of Gadang are buying consistently Insiders of GKent are only nibbling

Any time now Gadang Qtr Results should be out soon

Will it be good, bad or ok?

Calvin thinks it should be fairly good due to progress bilings from Job done.

 

Warm regards

 

Calvin Tan Research

 

Please buy/sell after doing your own due diligence

 

Additions:

 

MRCB

Even without HSR MRCB on its own has already secured Rm7 Billions Ongoing Jobs. So MRCB is undervalue.

 

GADANG IS BETTER THAN GKENT. AND CERTAINLY FAR BETTER THAN JAKS ANY TIME

So far Gadang has escaped the carnage of job cancellations or litigations 

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Labels: MRCB

Related Stocks

Chart Stock Name Last Change Volume 
MRCB 0.68 +0.005 (0.74%) 16,156,000 

  Patrick13 likes this.
 
gohkimhock I still believe HaiO is the best value investing counter than construction counters.
13/07/2018 00:26
13/07/2018 01:43
calvintaneng stupid or clever?
or too clever for your own good and then you missed when price is running up and away!
13/07/2018 02:03
calvintaneng "Hsr to resume if price is cut," Lim Guan Eng
13/07/2018 02:16
teareader818 If price is drastically cut, can still make profit or not.
13/07/2018 02:33
100000741798333 LRT3: Price cuts to the bones, not much meat/fat left, no cost over-run (fixed price project now), project construction time now extended, meaning potential material and labour costs , etc... and rising interest rate environment. Smell potential danger !!!
13/07/2018 07:07
FamousAmos I already predicted TanEnd will claim credits again... but his cost was > RM1.
13/07/2018 07:36
Patrick13 No harm to hold both Gadang and GKent.
13/07/2018 08:16
calvintaneng Good morning,

MRCB Job is PDP which is only paperwork. So the cost is mostly brain power.

Any price is a good price.

RM900 MILLIONS EASY MONEY WORKING MOSTLY IN AIRCOND OFFICE.

HOW MUCH TO CUT?

DOESN'T MATTER AS LONG AS THERE IS PROFIT

BUT SEE BEYOND THAT

MRCB MAIN GOLD LODE WILL BE BANDAR MALAYSIA OF WHICH MRCB IS THE TOD EXPERT

SO SEE FURTHER AHEAD.

MRCB GO GO GO!
13/07/2018 09:17
calvintaneng After stale bulls have cashed out & short term punters have taken profit MRCB should find a new base. From there it will then move higher
13/07/2018 10:09
calvintaneng Patrick13 likes this.


Patrick13
No harm to hold both Gadang and GKent.
13/07/2018 08:16


Good. Patrick13 has a sound and balanced approach.

Don't need sailang. Diversify for safety.
13/07/2018 10:12
calvintaneng Gadang is fortunate to land projects that escaped the cutting knife of PH Govt which hammered other construction compaines

1) Its MRT Job ongoing KVMRT V206 project , (RM952 MILLIONS VIADUCT PROJECT FROM SERDANG RAYA TO UPM)

2) Its 2 Jobs package in Pengerang RAPID buffered by Rm28 Billions cash infusion from Saudi Aramco. Gadang might still win some more projects in RAPID like Dialogue which is still expanding. And more downstream investments on the way.

3) Its Cyberjaya Hospital Project is a neccessity

4) And TRX is not cancelled. WCT even won a fresh project for TRX

5) Its white elephant Capital City is saved by its cash rich partner Hatten from Singapore

This week or next Gadang should be out with another good QTR
13/07/2018 10:22
calvintaneng Refresh your memory on MRCB

http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/153089.jsp
13/07/2018 10:29
calvintaneng More refreshing of memory on MRCB

http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/151603.jsp
13/07/2018 10:31
calvintaneng Hi guys,

I passed by CAPITAL CITY yesterday in Booming Iskandar

Place is getting better.

A surprising change with improvements.

Will post New Photos of CAPITAL CITY later

Stay tuned.
13/07/2018 11:56


 

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