Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Mon, 25 Mar 2019, 10:04 PM

 

TOP 7 FACTORS YOU SHOULD KNOW ABOUT Ahmad Zaki Resources Bhd (7078) Calvin Tan Research

Author:   |    Publish date:


Hi guys,

These are the salient factors for AZRB

 

1) A DEFENSIVE HIGH MARGIN OF SAFETY STOCK

At 36.5 sen with NTA at 89 sen AZRB is selling at almost 60% discount to NTA. This is the margin of safety Ben Graham required at 30%

 

2) AZRB AT 36.5 SEN IS SELLING AT ALL TIME LOW COMPARED TO ITS HEY DAYS OF OVER RM2.60 BEFORE SPLIT

This is the time to buy low. Buy low is the most important criteria to sell high later (As opposed to chase high then sell low)

 

3) AZRB IS A TOP CLASS A BUMI CONTRACTOR. IT WINS CONTRACTS ON ITS OWN MERIT

IT HAS SECURED MANY CONSTRUCTION PROJECTS

 

4) AZRB PAYS GOOD DIVIDENDS

See

 

Let's calculate for year 2018

It paid a One sen dividend

It gave One Bonus share for 8 shares held which is 1/8 x 36.5 = equivalent to 4.56 sen

So total yield is 4.56 & One sen = 5.56 sen

That is a very nice 15.2% yield

(NOTE: AT 15.2% YIELD AZRB OFFERS ONE OF THE HIGHEST DIVIDEND YIELD IN KLSE)

This shows that Company is sanguine about its future as dividend cannot lie

 

5) THE MANAGEMENT OF AZRB IS FAIR AND TRANSPARENT

To benefit from the Bonus Issue & Dividend AZRB DIRECTORS USED THEIR OWN MONIES TO BUY SHARES FROM OPEN MARKET TO QUALIFY FOR THEM JUST LIKE ALL SHAREHOLDERS (THERE IS NO SPECIAL FAVOURS LIKE JAKS DIRECTORS WHICH REWARD THEMSELVES WITH LOTS OF "FREE SHARES"

See

NOTE: DIRECTORS AND INSIDERS BUYING SHOWED CONFIDENCE (AND THEIR COST OF PURCHASE BEFORE BONUS RANGES FROM 50 SEN TO OVER RM1.00)

So at 36.5 Sen we are getting in far below Directors' cost

 

6) AZRB HAS LAND ASSETS STILL AT OLD BOOK VALUE AT WONDERFUL PRICES

See (refer to AR and scroll down to Properties owned by AZRB)

Let;s take a look at 2 pieces

1) At Property No. 6 GM 1754 Lot 167 Mukim Sabai Daerah Bentong Pahang Darul Makmur Date of purchase 8-Oct-10

Vacant land Freehold 4.578 ha    Price: RM960,000

AZRB has a 4.578 hectare of FREEHOLD LAND IN BENTONG with a Book Value of Rm960,000

One hectare = 2.471 acre

So 4.578 hectare x 2.471 = 11.312 Acres

So 11.312 Acres of Freehold Lands valued at Rm960,000

How much per acre

Rm960,000 divides by 11.312 = Rm84,865 per acre

How much per sq ft? Divides 84,865 by 43560 = Rm1.94 Psf

Whoa! AZRB's Freehold land in Bentong has a Book Value of Rm1.94 psf?

This is less than the price of a mosaic tile going at Rm2.00 to Rm3.00 psf

 

See this

Lot 8316 PT18854 - PT19458 Mukim Bukit Payung Daerah Marang Terengganu Darul Iman

Land held for Development Leasehold expiring in year 2115   66.96 acres  Rm7,500,000

This is a leasehold development land with lease until year 2115

66.96 acres priced at Rm7.5 millions

To convert to price per acre  Rm7,500,000 divides by 66.96 = Rm112,007

To further convert to Per Sq Ft

Rm112,007 divides by 43,560 = Rm2.57

Wow. At Rm2.57 psf this is even cheaper than Naim's land in Sarawak at Rm4 psf

 

NOW IF ECRL (East Coast Railway Line) is restored then AZRB should reap a windfall like Pan Borneo Highway for Naim. If not still Ok

Those lands in Bentong are suitable to plant "Mau Sang Wang Durian" while Maran has a population of over 100,000 people. So just build affordable houses and they should sell well

 

7) TOP 30 SHAREHOLDERS OF AZRB ARE LOCAL FUNDS, FOREIGN FUNDS & BANKS & UNIT TRUSTS & INSURANCE COMPANY

LIST OF 30 LARGEST SHAREHOLDERS AS PER RECORD OF DEPOSITORS 

Zaki Holdings (M) Sdn Bhd

AMSEC Nominees (Tempatan) Sdn Bhd - Pledged Securities Account - AmBank (M) Berhad for Zaki Holdings (M) Sdn.bhd.

Zaki Holdings (M) Sdn Bhd

Lembaga Tabung Haji

Citigroup Nominees (Asing) Sdn Bhd - Exempt An for Citibank New York (Norges Bank 14)

Cartaban Nominees (Tempatan) Sdn Bhd - RHB Trustees Berhad for Manulife Investment Shariah Progress fund

CIMB Group Nominees (Tempatan) Sdn Bhd -

CIMB Commerce Trustee Berhad - Kenanga Growth Fund Citigroup Nominees (Tempatan) Sdn Bhd -

Kumpulan Wang Persaraan (Diperbadankan) (Kenanga)

Amanahraya Trustees Berhad - Public Islamic Select Treasures Fund

CIMB Group Nominees (Tempatan) Sdn Bhd -

Hong Leong Asset Management Bhd for Hong Leong Assurance Berhad

(LP Fund ED102) Citigroup Nominees (Tempatan) Sdn Bhd

- Kumpulan Wang Persaraan (Diperbadankan)

(Affin Hwang SM CF) Citigroup Nominees (Tempatan) Sdn Bhd -

Employees Provident Fund Board (Asian Islamic)

Amanahraya Trustees Berhad - Public Islamic Treasures Growth Fund

 - Pledged Securities Account for Dato' W Zulkifli Bin Haji W Muda

Citigroup Nominees (Tempatan) Sdn Bhd - Universal Trustee (Malaysia) Berhad for CIMB Islamic Small Cap Fund

Hong Leong Assurance Berhad - As Beneficial Owner (Unitlinked GF) Universal Trustee (Malaysia) Berhad -

KAF Dana Adib Amanahraya Trustee Berhad -

Public Islamic Opportunities Fund CIMB Islamic Nominees (Tempatan) Sdn Bhd -

CIMB Islamic Trustee Berhad - Kenanga Syariah Growth Fund

Maybank Nominees (Tempatan) Sdn Bhd - Pledged Securities Account for Tang Sing Ling Cartaban Nominees (Tempatan) Sdn Bhd

- RHB Trustees Berhad for Manulife Investment -

HW Shariah Flexi Fund Amanahraya Trustees Berhad -

PB Islamic Smallcap Fund Citigroup Nominees (Tempatan) Sdn Bhd -

Pledged Securities Account for Tan Sri Dato' Sri Haji Wan Zaki Bin Haji Wan Muda 1

 

So many Top Guns are here

ZAKI HOLDING TOP BOSSES PUT THEIR OWN MONIES INSIDE AZRB

Public Islamic Select Treasures FundPB Islamic Smallcap Fun.  Public Islamic Treasures Growth Fund

Hong Leong Assurance

CIMB Islamic Small Cap

KAF-Seacroat

Affin Hwang

EPF

Tabung Haji

Manulife Insurance

Amanahraya

Kenanga Growth Fund

 Kenanga Syariah Growth Fund

If These Top Guns & Top Funds Put Their Monies in AZRB you think AZRB will remain a penny stock for long?

ALL THEIR HOLDING COSTS ARE MUCH HIGHER THAN NOW

SO WHAT ARE YOU WAITING FOR?

 

BEST REGARDS

 

Calvin Tan Research

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Labels: AZRB

Related Stocks

Chart Stock Name Last Change Volume 
AZRB 0.51 +0.005 (0.99%) 7,903,700 

  chanso likes this.
 
cheoky Shhh
14/02/2019 12:43 AM
moneykj Wah...Good. Calvin kor stock selection has improved a lot. TA looks good. Azrb tomorrow sure hit jackpot. Congrats Calvin.
14/02/2019 12:58 AM
Koon Bee Hoseh
14/02/2019 1:31 AM
Hafid pls be inform that azrb plantation is killing. lossing
14/02/2019 9:11 AM
calvintaneng A VERY GOOD HAPPY MORNING

Welcome moneykj and Koon Bee

Hope you huat in AZRB just as in Opcom & Naim

Hafid

Plantation losses were due to weak CPO & weaker Rupiah. This is one off & both recovering

ALL CLEAR NOW

LOOK FORWARD FOR WHOLE OF YEAR 2019 NEXT 4 QUARTERS AND SEE
14/02/2019 9:23 AM
calvintaneng AZRB was impacted by forex losses
If not its core business should be reporting higher profit

Latest news show Ringgit going up against USD

This is good news because AZRB borrowings are in US Dollar

Every rise of Ringgit will increase the bottom line for AZRB going forward

https://www.nst.com.my/business/2019/01/450437/some-worlds-biggest-banks-see-stronger-ringgit-2019

https://www.nst.com.my/business/2019/02/459794/rm-hit-38-against-usd-end-2019
14/02/2019 10:14 AM
Zhuge_Lin AZRB net profit margin is only 2%-4%. Borrowing is super high. Last Q operating cash flow negative. Get money from financing.
14/02/2019 2:58 PM
calvintaneng Get money from financing rm100 mil is for tok bali expansion

Perfectly OK as Petronas wants Azrb to deepen port for accelerates business
14/02/2019 3:02 PM
calvintaneng High borrowings

1. For a Toll Road. Over RM1 billions spent

2. To build Teaching Hospital
This one got Rm600 millions payment from Govt

Check out all the figures and facts
14/02/2019 3:04 PM
calvintaneng See this article from YEAR 2014 (5 years ago_ NOW FAST FORWARD TO CALVIN COMMENTS IN BRACKETS

KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB) is expecting RM700 million to RM750 million in revenue this year, driven by its construction division, said chief operating officer Datuk Roslan Jaffar.

He said construction projects including the Klang Valley mass rapid transit (MRT), the International Islamic University Malaysia’s (IIUM) teaching hospital in Kuantan, Pahang and Permodalan Nasional Bhd’s (PNB) hotel and office tower project in Kuala Lumpur will contribute to its projected higher revenue.

In 2012, AZRB was awarded a construction package worth RM764.9 million for a viaduct and station for the MRT,

as well as a RM673 million contract from PNB for the construction of a 50-storey hotel and the refurbishment of an existing 35-storey office building in Jalan Sultan Ismail.


It also bagged a RM600 million deal to develop IIUM’s teaching hospital.

(THIS RM600 MILLIONS WILL COME SOON) (CHUN CHUN ONE)


Other projects AZRB hopes to clinch this year involve the MRT2, the Tun Razak Exchange in Kuala Lumpur and Petroliam Nasional Bhd’s refinery and petrochemicals integrated development (Rapid) in Johor.

(PETRONAS AWARDED CONTRACTS IN TOK BALI & IN KEMAMAN) (CHUN CHUN ONE!!)

On the group’s construction of the RM1.55 billion East Klang Valley Expressway (EKVE) connecting the Silk Highway in Kajang to the Karak Expressway in Gombak, Roslan said work is expected to start by the third quarter of this year. The project is scheduled to take three to four years to complete.

(THIS HIGHWAY COMPLETING SOON THIS VERY YEAR OF 2019) (CHUN CHUN ONE!!!)

In February last year, AZRB entered into a concession agreement with the government for the design, construction, completion, operation, management and maintenance of the EKVE for a period of 50 years. (SEE AZRB GETS GOVT JOBS!!)

On its plantations, Roslan said AZRB is looking to expand its total planted area from 4,700ha to 10,000ha in Kalimantan Barat, Indonesia over the next few years. It is also planning to build a 90-tonne mill in the plantation area.
“We are finalising the design by this year, so we should be able to construct it by early next year and start commissioning it by 2016.

“Five years down the road, we hope our plantations will be a significant contributor [to the group’s revenue],” he added.

(THAT WAS IN 2014 NOW IS 5 YEAR DOWN THE ROAD IS YEAR 2019 TO REAP HARVEST) CHUN CHUN ONE!!


On capital expenditure this year, the group has allocated RM150 million for the construction of EKVE and another RM90 million for the construction of the mill.

This article first appeared in The Edge Financial Daily, on March 18, 2014.

(ALL THE BUSINESSES WILL CONVERGE TO MAKE PROFITS IN YEAR 2019)

(VERY CHUN CHUN TIMING!!!)

(THIS IS THE REASON WHY COMPANY IS SANGUINE TO GIVE A VERY NICE 15.2% DIVIDEND YIELD TO ALL DIRECTORS AND SHAREHOLDERS)

THE FUTURE NOW IS GETTING VERY BRIGHT

(WHILE PRICE OF AZRB NOW BOTTOMING AND GOING FOR A MULTIYEAR REBOUND!!!)))
14/02/2019 3:49 PM
calvintaneng Posted by autobot > Feb 14, 2019 04:15 PM | Report Abuse

Calvin bro, now all eyes on oil and gas counter, AZRB can't go higher one. Just looks at TURBO, the point is now it still unmove there.
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=5...

Calvin replies:

AZRB engine just started

Lots of stale bulls and doubters must get out first

AFTER THAT THE ENGINE WILL FIRE UP AND TURN ON THE TURBO CHARGE

ONCE TURBO CHARGING IS ON

THE MADDENING CROWD OF MR MARKET MIGHT JOIN IN & PRICE WILL SHOOT INTO OVERVALUATION

FOR NOW STILL VERY SAFE

IF TAKE BEN GRAHAN SAFETY BELT METHOD THEN

89 x .7 = 62.3 SEN

THEN 62.3 SEN IS THE MARGIN OF SUPPORT

IF IT CROSSES 62 SEN THEN ONLY BE CAREFUL

FOR NOW JUST ACCUMULATE

KEEP IT
14/02/2019 4:25 PM
sandrakkc Last chance to take at 39.5
14/02/2019 4:34 PM
calvintaneng sandrakkc
Last chance to take 39.5
14/02/2019 16:36

Sandra is correct!!

Slow boat will miss Azrb at 40 sen just like those slow boat who missed carimin at 39.5 sen, missed dayang at 55 sen & missed Naim at 50 sen
15/02/2019 9:28 AM
calvintaneng AZRB (A to Z RINGGIT BERHAD) Reposting from May 2018 Article , Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/193594.jsp
15/02/2019 3:03 PM
calvintaneng In today Star paper Manulife is telling people to buy unit trusts

This confidence is due to a better year ahead

But Manulife is in Top 30 holders of Azrb as well as unit trusts from Public Bank , Hong Leong Assurance, Kaf-seagraot, Kenanga, Hwang and Cimb Unit Trusts also invest in Azrb

So AZRB is the ultimate destination for so many Funds to park their pooled monies
16/02/2019 4:19 PM
calvintaneng Oil price rising

https://www.cnbc.com/2019/02/15/oil-prices-are-rising-and-poised-for-a-breakout-watch-these-levels.html
17/02/2019 10:21 PM
calvintaneng Brent Crude Crossing usd66 a barrel

Good for more o&g activities

I read that Sabah produce mostly natural gas whereas Trengganu produce more crude oil

And crude oil is what Refinery wants

So good for Azrb
19/02/2019 8:11 AM


 

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