IzzoNo worry this counter..holdnn accumulate by range price
goldentriangleSolution for property developers? Governments plan to issue money-lending licences to developers is “a noble idea” !!!
goldentriangleGovernment is starting to giving more positive "Mangkin" or "Catalysis" into property sector!!! Will Property sector then started to booming??? Can't wait for the coming Budget 2017 in October!!! Still got one month to go!!!
Git13Mah Sing strongly lobby government to ease property market by increasing total amount that individual can withdraw from second account in EPF. http://www.theedgeproperty.com.my/my/content/887763/mah-sing-budget-2017-wish-list
CKNYAMVivocom’ entry into affordable housing will support earnings October 19, 2016, Wednesday Sharon Kong, email@example.com
KUCHING: Vivocom International Holdings Bhd’s (Vivocom) entry into the affordable housing market will support earnings, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observes, given that there is ready demand for affordable housing in Perak and East Coast of Peninsular Malaysia.
According to MIDF Research in a corporate update, Vivocom management aspires to diversify the group’s project portfolio and improves its working capital via affordable housing projects.
“While an affordable housing project generally provides lower single-digit margin for contractors, nonetheless it generates orderbook backlog for longer-term as well as tighter contractual obligations,” the research arm said.
“This would help to match Vivocom’s total construction revenue and earnings with cash inflows from predictable progress billings.”
MIDF Research highlighted that the recently clinched Kinta Valley and Tronoh affordable housing projects are crucial as a learning curve to provide experience in value engineering, traction of gaining tender advantage and wide content application of industrialised building system (IBS) in constructing affordable housing units.
“Vivocom is upbeat especially in East Coast of Malaysia where the demand of affordable housing exceeds supply,” the research arm said.
It added that Vivocom’s management has indicated an expanding IBS content for building construction citing cost advantage as well as time savings as primary drivers.
In MIDF Research’s view, Vivocom’s interest in affordable housing segment comes as no surprise as the State Government of Perak has announced in January 2016, the rolling out of 10,000 units of affordable housing by 2018.
“The Perak Housing Department currently has a waiting list of more than 12,000 applicants for its affordable housing schemes.
“Another example is Terengganu, which has a waiting list of 56,000 applicants since end of 2015,” the research arm noted.
Meanwhile, on the strength on the group’s balance sheet, MIDF Research believed that Vivocom presents a compelling risk/reward opportunity amidst the pressured share price.
Vivocom’s orderbook of RM3.5 billion is at all time high or approximately 48-month orderbook backlog (38-fold financial year 2015 (FY15) construction revenue cover which is the highest in the research arm’s coverage).
Premised on the group’s FY15 working capital/net income cover of 12.1-fold and diligent FY15 working capital/orderbook cover of 0.03-fold, the research arm viewed that Vivocom’s balance sheet fundamental strength is set to outweigh the risk of heavy orderbook execution.
On to its FY16/FY17 earnings estimates, MIDF Research has altogether reiterated earnings projections which are underpinned by a growing orderbook of circa 15 per cent which will swell to more than RM4 billion based on affordable housing projects that Vivocom has tendered.
MIDF Research has also reaffirmed its ‘buy’ recommendation with a target price of RM0.63 per share based on FY17 sum-of-parts (SOP) methodology on an implied prospective price earnings ratio (PER) of 13-fold which is on the lower end of the research arm’s small to mid-cap construction PER range of 10-fold to 14-fold (up 1.3 standard deviation above the mean of 12).
CKNYAMStock: [Vivocom 0069] Total Value Date Receive LOA Date Commerce Date Completion Durations Remarks 1 Pavilion Hilltop, Mont Kiara fr CRCC 34,762,000.00 11/12/15 1/12/16 7/12/18 18 months 2 Rumah Selangorku Bdr Ulu Klang fr CRCC 116,400,000.00 12/8/15 1/18/16 7/1/17 18 months 3 1 Gateway Klang, Selangor fr CRCC 195,525,000.00 11/12/15 1/12/16 12/1/18 3 years 4 Neata Aluminium old orderbook as September 2016 351,753,000.00 11/12/15 Kemensah height (82.4mil),tamarind square(10.3mil),lumi tropicana (37.7mil), KL Gateway (15.4), Eclipse Residence (15mil) 5 Teras Millenium to Instacom for Telco Hub sites 29,000,000.00 11/12/15 1/12/16 8/12/16 7 months 6 Jointly Develop Kharisma Port Indonesia 1/15/16 No agreement sign 7 Desa Tasik Project fr Coneff Corp (2 block Commercial) 240,418,000.00 1/20/16 3/8/16 12/8/19 45 months 8 Desa Tasik Project fr Coneff Corp (24 storeys Condo ) 230,000,000.00 1/26/16 9 PBT Engineering for Third Avenue Cyberjaya to Neata 22,500,000.00 4/4/16 4/4/16 9/4/17 17 months 10 V-Development fr Gated Housing Bdr Ulu Klang 15,000,000.00 4/4/16 7/1/16 2/1/18 18 months 11 Green Venture Chepor Hulu Kinta Project 90,000,000.00 4/26/16 12 De Facto Wilayah Sultan Azlan Shah Hulu Kinta Project 160,000,000.00 5/5/16 13 Goldenhill Accenture Genting Sempah pahang project 46,000,000.00 5/20/16 7/20/16 7/20/18 24 months 14 Kiara5 Development Kg Kayu Ara Sg buloh 25,000,000.00 6/23/16 8/23/16 2/23/18 18 months 15 Lim Hoo Seng Construction Lorong stonor project to Neata 12,800,000.00 6/23/16 6/30/16 5/1/19 35 months 16 Seni perspek Bandar tasik Amanjaya Daerah kinta 756,000,000.00 8/4/16 JCA status 17 Green Venture Wilayah Chepor Project 18storeys Apartment 100,000,000.00 8/19/16 24 months 18 Dazamega Mukim Hulu Kinta Project 600,000,000.00 9/1/16 48 months HOA status Total Project Pipeline that annouced in BursaMalaysia 3,025,158,000.00
2016 SPA ~(100k x 1%+200kx2%)x50%=2,500 Loan(90%) ~(270k x 0.5%)x50%=675
TankhaylongStamp duty for 1st house buyer (500k house) 2016 SPA ~(100k x 1%+ 400k x 2%)x 50%=4,500 Loan(90%) ~(450k x 0.5% x 50%=1,125
2017 SPA ~(300k x 0% + 200k x 2%)=4,000 Loan (90%) ~(300k x 0% + 150k x 0.5%)=750
bsngpgPotential benefit from the exemption on stamp duty announced in Budget 17 for Mahsing is negligible as most of the Mahsing's products are priced higher than RM300K. Indeed marginal negative impact may be created along the new measure to Mahsing as some of the lower income buyers will now attracted to properties lower than 300K which is not the focus of Mahsing.
bsngpgBeing said that biz of Mahsing will still move on with similar profit level as last year at the worst case while aiming for growth. Dividend will be paid at 40% DPO again next year. Therefore I will just sit back with my big holding on Mahsing and waiting for the next dividend in Sep17 and turn around moment of property market.