Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Sat, 15 Jun 2019, 3:25 PM

 

NAIM is Firing Up on All Four Engines just like the 747 Jumbo Plane, Calvin Tan Research

Author:   |    Publish date:


NAIM is Firing Up on All Four Engines just like the 747 Jumbo Plane, Calvin Tan Research

Author:   |    Publish date: 

 

 


 

Hi guys,

Today Dayang suddenly spiked up due to the momentum triggered in O&G interest in Carimin.

And Naim followed close behind in its price surge

But Naim has 3 other engines of growth even without Dayang

So what are the Other 3?

The other three are Pan Borneo Highway, Construction & Real Estate

Altogather NAIM has four engines of growth like 4x4 cylinders firing now. The macro picture looks good

 

Now let's take a closer look at the micro level

 

1)  The Latest Table of content gave a Resounding Turnaround

 

UMMARY OF KEY FINANCIAL INFORMATION
30 Sep 2018

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Sep 2018
30 Sep 2017
30 Sep 2018
30 Sep 2017
$$'000
$$'000
$$'000
$$'000
1 Revenue
178,760
53,654
438,949
260,950
2 Profit/(loss) before tax
33,865
-86,065
31,128
-118,094
3 Profit/(loss) for the period
30,530
-94,828
24,505
-130,385
4 Profit/(loss) attributable to ordinary equity holders of the parent
30,323
-95,014
23,398
-130,949
5 Basic earnings/(loss) per share (Subunit)
12.80
-40.10
9.87
-55.27
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
4.2800
4.1800
 

 

All revenue, profit & Nta increased from last year quarter

 

2) NAIM IS SELLING AT HUGE DISCOUNT TO NAV

At 52.5 sen with NTA of Rm2.40 (adjusted 2 for 3 bonus) is selling at almost 80% discount to NTA

Naim at its recent peak was over Rm6.00 & now price has fallen by 90% near historic low....making this a great bargain

 

3) POWERFUL EARNINGS PER SHARE (EPS)

So good. Naim has not only High NTA it has also got Powerful Earnings

And this is not just a one off

Refer to Qtr result

The Group recorded higher revenue of RM438.9 million for the period under review, as compared to RM261.0 million reported in the corresponding period of 2017. The increase was contributed by both Property and Construction divisions, which recorded a 78% increase in their revenue when compared against that achieved in the corresponding period of 2017, due to increased work progress and additional new property sales [see Note 17.1 (b) for details].

Property segment recorded an increase in its revenue and profit during the current period under view. The increase was partly contributed by increased work progress achieved. Higher new sales of about RM100.6 million (January to September 2017: RM92.9 million) also had led to the increase in the property revenue and profit during the 9-month period.

17.2 Review of performance of major associate Our associate, Dayang Enterprise Holdings Bhd. (“DEHB”), reported an unaudited profit after tax attributable to owners of about RM66.5 million, against a loss of RM89.7 million registered in the corresponding period of 2017. The improvement in the DEHB performance wasmainly due to higher maintenance work orders performed during the period under review.

So from here we can see that all three

Construction

Property

Oil & Gas (Dayang)

are doing well

Resulting is a nice 12.8 sen profit this last quarter

 

4) PAN BORNEO HGHWAY

This single connecting highway will increase the Value of NAIM LANDBANKS By manifold

In the 1950s One Acre Land in Shah Alam was worth only Rm5,000. After KL - Klang Federal Highway was built the Lands in Shah Alam increased by manifold.

Like the wild wild West of USA in its pioneer days those lands were given free to settlers. Same goes for those Lands in Pahang in early days. After the KL - Karak Highway was built land prices soared in Pahang. And the PLUS- North South Highway unlocked the land Value from Perlis to Perak... from Seremban to the Southernmost part of Johor.

Since NAIM is the Largest Real Estate Land Owner in Sarawak it stands to gain the most in Land Value appreciation

And spearheading its future

See

Naim Holdings Berhad has accepted the award of Pan Borneo Highway Project which is the package work for Pantu Junction to Batang Skrang in Sarawak. The contract is estimated to worth at least RM 1.1 Billion for Naim Holdings Berhad.

 

5)NAIM CASHING IN ON AFFORDABLE HOUSING

KUCHING: Naim Holdings Bhd, which has a huge landbank in Sarawak’s major towns, expects to build at least 1,000 units of affordable houses in three years to cash in on market demand.

Managing director Datuk Hasmi Hasnan said Naim’s main focus was to build more affordable houses in Miri, Kuching and Bintulu where it has over 2,500 acres of prime land.

The land has an average book value of RM170,000 per acre and RM4 per square foot.

Hasmi said Naim had in the past several years switched to undertaking high-end residential property projects like high-rise condominiums because the government was very aggressive in building affordable houses like 1Malaysia People’s Housing or 1PRIMA nationwide.

He said as the new Pakatan Harapan government would like to see the private sector’s participation in providing affordable homes, “we see we can play our role here”.

Hasmi said Naim had received good market response to its newly launched affordable housing scheme Primrose Terraces in SouthLake Permyjaya in Miri.

“The single-storey terrace houses there are offered at about RM300,000 each,” he told StarBiz after the company’s AGM here.

NOTE: NAIM COST OF LAND ONLY RM4 PER SQ FT

ONE ACRE LAND CAN BUILD 10 HOUSES OR RM3 MILLIONS

 

 

THE PROFIT WILL BE PHENOMENAL

 

6) PROXIMITY TO BRUNEI (NAIM'S MIRI LANDBANKS

NAIM'S HOUSING ENCLAVE IN MIRI IS ONLY 2 HOURS BY CAR TO BRUNEI

 

It takes more than 8 Hours by Car from Brunei to Kota Kinabalu

 

Just like the Strong Singapore Dollar the Brunei Dollar is worth Rm3.00 each

 

So expect NAIM's Properties to sell well in Miri

 

 

NAIM ALSO HAS INVESTMENT IN DAYANG

 

For that I quote from post of one i3 Forumer:

 

 

Author:   |    Publish date: 

 

 


 

There is no misleading or bullshit here, so I will put a link there for your reference. I list down only 5 reasons why Dayang Enterprise is a good proxy for Carimin Petroleum, especially for now.

 

1) 84% vessel utilization rate. Yup, it is 84%

How much the vessel utilization rate in March 2018? It was only 27%. Then it had increased to 70% in Jun 2018. Now the vessel utilization rate of Dayang is as high as 84%. What it means by such high vessel utilization rate? It means the worst is over for Dayang, so they had recorded very good results in second and third quarter 2018.

 

2) Secured multiple MCM contracts last year, NOT only one

Yes, multiple MCM contracts has secured last year. These projects are secured from Petronas Carigali and other oil & gas players in local industry. This year they will bid for the contracts worth RM600 million, both local and overseas. 

 

3) Sustainable EPS but share price lagging behind

As you know, Carimin Petroleum had been shot up from RM0.205 to RM0.85 just in few months. And for Dayang, it has ranged from RM0.50 to RM3.90 within this 5 years. Too early to say it will return to its glory time but I’m sure that the downside risk is very very very limited now. (The important thing must say 3 times)

 

4) The group "firmly believe" the worst is over

“We firmly believe that 2018 will be a real turnaround for the group after experiencing poor results over the past two financial years…” You can read this statement on their latest quarter prospects. Looks like they are very confident that they will turnaround this year. 

 

5) Improving balance sheet in next few quarters/years

Dayang's management very confident that their balance sheet will continue to improve "significantly" as the impressive financial performance in the third quarter has indirectly demonstrated the financial discipline undertaken to turn around the company. 

 

If you missed the Carimin Petroleum, maybe Dayang is another good proxy to you. But please do your homework before buying. Please feel free to comment. Thank you for reading.

 

 

So what should be the Intrinsic Value of Naim

 

Uncle KYY has calculated the price of carimin due to its one quarter result

And i quote 

 

Carimin: Waiting for Correction Strategy - Koon Yew Yin

Author:   |    Publish date: 

Mon, 4 Feb 2019, 12:30 PM 

""In my previous article namely Carimin-is doing what business, I said that just based on its 1st Q EPS of 5 sen, I have projected the company will most likely report 4 X 5 = 20 sen EPS and its share price can be selling at Rm 2.00, equal to P/E 10.""

 

In the simplistic (simpleton) way of projecting carimin share price at P/E 10 Kyy used the forward EPS of 5x4 for carimin

Should we use this to calculate NAIM?

Then it will be 12.8 x 4 = 51.2 sen

And if PE 10 then NAIM should be Rm5.12 target price?

Of course not! This is not maths. This is madness

 

 

BEST REGARDS

 

Calvin Tan

Singapore

 

STOP PRESS!

 

A more realistic Value of Naim at this juncture would be:

 

1) The 30% Discount from NTA method by Ben Graham

Ben Graham & Walter Schloss look for at least 30% discount to Value of Assets

So Rm2.40 X .7 = Rm1.68 would present a 30% discount

So is the Target Price of NAIM at Rm1.68?

 

2) Marks Howard does not predict future earnings. He works from the present

So take this latest quarter true EPS of 12.8 sen

So 10 times PRESENT P/E would be Rm1.28

 

3) So wil the Target Range for NAIM be Rm1.28 to Rm1.68?

No one knows exactly how things will turn out as it is yet future

But these are some pointers

Have a fruitful & profitable day!

 

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Labels: NAIM

Related Stocks

Chart Stock Name Last Change Volume 
NAIM 0.805 +0.005 (0.63%) 3,880,100 

  Be the first to like this.
 
calvintaneng http://www.naim.com.my/press-releases/naims-property-mega-deals-coming-way/
08/02/2019 12:04 AM
calvintaneng Miri distance to Brunei
https://www.google.com/search?q=miri+distance+to+brunei&oq=miri+distance+to+brunei&aqs=chrome..69i57j0l3.13263j0j7&sourceid=chrome&ie=UTF-8
08/02/2019 12:12 AM
calvintaneng https://borneobulletin.com.bn/bruneians-make-a-beeline-to-cross-border-ahead-of-new-year/
08/02/2019 12:15 AM
Patron https://klse.i3investor.com/servlets/pfs/47695.jsp?stockWhatIf=PERISAI
08/02/2019 12:32 AM
Patron All have a look before u start listening to this scammer
08/02/2019 12:32 AM
calvintaneng Yes by all means check up and read up on all Calvin buy calls

See buy call of carimin at 39.5 sen also

Now up 100%
08/02/2019 1:19 AM
beso i seldom agree with calvin but this one i support
08/02/2019 1:34 AM
moneykj Fitters
08/02/2019 8:34 AM
calvintaneng Fitters ok

Now the mini bull run is on O&G companies like carimin and dayang

Dayang means "princess" and Naim means "contented"

So Naim fits in the bull cycle of dayang
08/02/2019 8:47 AM
hollandking is very obvious they are trying to goreng these mini counters, but i'm very sure whatever the same group of ppl touched, they will all fall back down in the end, like the others. Long term definitely a bad idea, only for speculators.
08/02/2019 8:53 AM
calvintaneng Holland King is correct

Market is cyclical

Since Naim came down from over RM6. 00 a rebound up and over RM1. 00 highly possible
08/02/2019 9:52 AM
calvintaneng Although market is cyclical the need for affordable housing is a very basic necessity

Naim is into affordable housing and highway infrar

Food
Clothes
Affordable house for shelter

Are necessities of life and therefore non-cyclical
08/02/2019 3:14 PM
calvintaneng See more about Naim

http://stocksmalaysia.blogspot.com/2017/02/naim-holdings-hidden-gem-of-sarawak.html
09/02/2019 11:32 AM
moneykj Congrats Calvin. Finally...
09/02/2019 11:43 AM
calvintaneng moneykj Congrats Calvin. Finally...
09/02/2019 11:43

Thank you

May you have a prosperous year!

Gong Xi Fa Cai!
09/02/2019 12:06 PM
calvintaneng Thks
Short term spurt because of 2 reasons


1. Oil & Gas theme play in Dayang triggered by Carimin price surge. Dayang up caused interest in Naim. The cash value in Dayang is already about 50% of Naim as Naim owns almost 30% of Dayang

2. Article here created awareness which many of us have overlooked including me. After Dayang surged I went in to study Naim's last quarter report more closely. And it was an interesting surprise. All solid

How far price will go depends on

1. Naim and Dayang own strong fundamental from here

2. Mass psychology will also come into play. If Carimin still surge up followed by Dayang and other O&G related companies Mr Market might go crazy and chase stocks into short term overvaluation

I like reason no. 1 and I am very cautious on reason no. 2 which might hurt those punters who join in at the later stage

Gong Xi Fa Cai
09/02/2019 12:47 PM
calvintaneng uptrending

Book can be cooked.. Lol

Be careful with no dividend payment companies reporting improving earnings while receivables also shot up...
09/02/2019 15:03
X
calvintaneng

Book cooking in Naim?

Let's see

1) Recent Rights Issue were all taken up by Directors at 45 sen (they even undertake all RI not subscribed). So they put in their own capital.

2) As for Receivables?

They are from

a) Houses sold by Bank progressive loan release. So can trust MayBank, Public Bank, CIMB Bank, Hong Leong Bank & RHB Bank to pay?

b) Under Pan Borneo Highway & KL MRT
They are Govt projects. Can LGE the Minster of finance pay?

c) Under Dayang receivables are from Petronas
Petrona got money or not?

So must think with your brain ok?
09/02/2019 10:20 PM
calvintaneng Posted by uptrending > Feb 10, 2019 10:46 AM | Report Abuse

Dayang is an associate company, not a subsidiary, of Naim. Its Financial Statement or the Balance Sheet is not consolidated with that of Naim.


calvintaneng
23969 posts
Posted by calvintaneng > Feb 10, 2019 11:21 AM | Report Abuse X

These are irrelevant issues

Don't need to be sidetracked

Look at these latest report

1) DIRECTORS HAVE ALL TAKEN UP THEIR ALLOTTED RI

DATUK ABDUL HAMED BIN SEPAWI 25-Jan-2019 Acquired 64,225,550 0.450 View Detail
DATUK ABDUL HAMED BIN SEPAWI 25-Jan-2019 Acquired 22,816,827 0.450 View Detail
DATUK ABDUL HAMED BIN SEPAWI 25-Jan-2019 Acquired 1,314,183 0.450 View Detail
DATUK HASMI BIN HASNAN 25-Jan-2019 Acquired 71,754,217 0.450 View Detail
DATUK HASMI BIN HASNAN 25-Jan-2019 Acquired 39,061,918 0.450 View Detail
DATUK HASMI BIN HASNAN 25-Jan-2019 Acquired 22,667,200 0.450 View Detail
DATUK HASMI BIN HASNAN 25-Jan-2019 Acquired 382,327 0.450 View Detail
WONG PING ENG 25-Jan-2019 Acquired 7,500 0.450

So those who failed to exercise their Rights have missed the golden opportunity


2) Prospects
The property investment and trading operations will continue to contribute
positively to the Group results. In addition to retail property, we will be embarking
on other types of commercial properties, for example hotel in Bintulu Paragon,
for recurring income.
We will continue to improve the quarry operations and achieve economies of
scale to manage fixed overheads costs.

1,000 units of affordable houses at Rm300,000 each means Rm300 millions gross. Since land cost only Rm4.00 psf profit can be up to 50% or Rm150 millions

So the RI raising Cash was for 3 Property Developments.
After affordable housing will be commercial properties. Especially if they build for incoming tourists from Brunei to Miri for shopping

This is what happened to Pelangi Bhd in downtown JB. The 3 storey shophouses priced at Rm3 millions in Jln Sri Pelangi were all snapped up. Other places in JB shop houses were priced at 50% less

Building Hotel in Bintulu Paragon another plus as this area going into huge FDI investment boom

And Naim's quarry will be busy supplying aggregate for the Pan Borneo Highway

For Dayang as its share price moves upward Naim will gain the most as it has the most shares
10/02/2019 11:24 AM
calvintaneng CARIMIN VERSUS DAYANG: Both Oil & Gas Service Provider(Compare and Contrast Similarities & Differences) Calvin Tan Research
Author: calvintaneng | Publish date: Sun, 10 Feb 2019, 09:29 PM

THE BEST IS YET TO COME!!

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/192789.jsp
10/02/2019 9:44 PM
calvintaneng ASIAPAC WILL FLY LIKE A POWERFUL ROCKET WITH 3 BOOSTERS

ONE = ECRL

TWO = VMY 2020

THREE = HIGH SPEED RAIL


ONE MORE = AVIATION HUB FOR LABU


JUST AS NAIM FIRING UP WITH 4 ENGINES


ASIAPAC WILL BE POWERING UP BY 3 BOOSTERS ON ITS ROCKET!!

NAIM WAS ONLY 50 SEN WHEN CALVIN POSTED THIS
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/192653.jsp

TODAY NAIM UP MORE THAN 100&

HOLD ALL ASAIPAC SHARES TIGHT TIGHT

ASIAPAC WILL FOLLOW JUST LIKE NAIM UP 100% OR MORE!!!
12/04/2019 10:07 AM
calvintaneng ROCKET BOOSTER FOR ASIAPAC WILL BE

1) ECRL FIRST BOOSTER.....ASIAPAC STARTING TO FIRE UP
EARLY BIRDS BUY BELOW 20 SEN

2) VMY 2020.. 2ND ROCKET BOOSTER.PEOPLE CHASING ASIAPAC OVER 45 SEN

45 SEN STILL CHEAP AS ITS NTA OVER 90 SEN

3) HIGH SPEED RAIL (VERY FAST TRAIN ZOOMING!!!)

ASIAPAC GOES LIMIT UP JUST LIKE NAIM SHOT UP TO OVER RM1.30!!!

SO ASIAPAC SHOOTING UP NEAR RM1.00

MISSED NAIM AT 50 SEN?

BETTER DON'T MISS ASIAPAC NOW!!!
12/04/2019 10:11 AM
calvintaneng ROCKET BOOSTER FOR ASIAPAC WILL BE

1) ECRL FIRST BOOSTER.....ASIAPAC STARTING TO FIRE UP
EARLY BIRDS BUY BELOW 20 SEN

2) VMY 2020.. 2ND ROCKET BOOSTER.PEOPLE CHASING ASIAPAC OVER 45 SEN

45 SEN STILL CHEAP AS ITS NTA OVER 90 SEN

3) HIGH SPEED RAIL (VERY FAST TRAIN ZOOMING!!!)

ASIAPAC GOES LIMIT UP JUST LIKE NAIM SHOT UP TO OVER RM1.30!!!

SO ASIAPAC SHOOTING UP NEAR RM1.00

MISSED NAIM AT 50 SEN?

BETTER DON'T MISS ASIAPAC NOW!!!
15/04/2019 4:26 PM
calvintaneng ASIAPAC WILL FLY LIKE A POWERFUL ROCKET WITH 3 BOOSTERS

ONE = ECRL

TWO = VMY 2020

THREE = HIGH SPEED RAIL


ONE MORE = AVIATION HUB FOR LABU


JUST AS NAIM FIRING UP WITH 4 ENGINES


ASIAPAC WILL BE POWERING UP BY 3 BOOSTERS ON ITS ROCKET!!

NAIM WAS ONLY 50 SEN WHEN CALVIN POSTED THIS
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/192653.jsp

TODAY NAIM UP MORE THAN 100&

HOLD ALL ASAIPAC SHARES TIGHT TIGHT

ASIAPAC WILL FOLLOW JUST LIKE NAIM UP 100% OR MORE!!!
15/04/2019 4:26 PM


 

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