Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Tue, 20 Oct 2020, 2:43 PM

 

NAIM (5073) At 74.5 sen is Giving a 18 Sen Dividend soon. That means Rm180 per share or 24.1% Yield (equals to 13 months int rate of 1.75% in Malaysia

Author:   |    Publish date:


Hi guys,

We have waited and finally Naim is calling for Egm to conclude sale of lands to Sarawak Government for Rm340 Millions Cash

This is about 68 sen Pure Cash

Of this Rm340 Millions Naim will allocate Rm90 millions as reward for share holders which is a very generous 18 sen Cash per share equal to 22.9% yield

Since Malaysia Int rate has fallen to only 1.75% this means 13 years int paid upfront

 

As Malaysian Banks are going thru 6 months moratorium for property lenders Banks now got cash contrain

So many listed Companies finding it hard to borrow are asking for Cash calls through Rights Issue after Rights Issue

So it is indeed refreshing that Naim is Giving out this very generous 18 sen dividend

 

And these are the Top Reasons why Naim is good

1) At 78.5 sen with NTA of Rm2.60 Naim is selling at a Whopping 70% Discount to NTA. This is more than twice the 30% discount required by Benjamin Graham

 

2) A check with NAIM NTA they consist of

i) Real Estate in the Vast Territory of Sarawak. Many still at old book value

These two pieces sold have generated a profit of Rm110 Millions or about 22  sen profit

At Rm340 Millions sale value 68 sen Naim making 22 sen means a profit of 32% from Land Investments

 

ii) Naim is also the Top Holder of both Dayang & Perdana

If Naim were to sell off Dayang it will get another 51.5 sen PURE CASH.

If Naim wants to it could also give out more Cash as Dividend. And Naim still got Rm13.3 Millions in Perdana

 

3) Already Flowing with Deep Value The Sale of Lands Near Bintulu to SARAWAK ECONOMIC DEV BOARD (Under Sarawak Chief Minister) will now bring in more than 70,000 new jobs

So Naim has planned to build 2,500 affordable houses here for sale at Rm300,000 per unit

From recent records these Single Storey houses at Rm300,000 are selling like Hot Cakes

 

4) As many are still unaware (just as they were unaware of our highlights on Palm Oil bull run) It is the best time to invest in Naim early while others are still oblivious to its great potential

 

5) And these are the Unfolding Events Still Ahead

On Oct 6th Naim EGM will pass resolution for Land Sales to Sarawak Economic Dev

Once approved then will come 18 sen 0r Rm180 dividend per share (Highiest in Malaysia)

Dividend to shareholders (Refer to Naim Announcement https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3089092
(b)
Rm90,000,000 (about 18 sen per share)
 

Top glove only give 8.5 sen dividend

 

6) By Feb 2021 the Result of Naim will show a gain of 22 sen profit.

By then Analysts will sit up and more will take notice 

the Proposed Disposal will enable the Company to immediately unlock the value and monetise its investment in the Subject Lands at an estimated net gain on disposal of approximately RM110.17 million. In addition, the Disposal Consideration also represents a premium of RM153.17 million / 81.98% to Naim’s cost of investment in the Subject Lands of RM186.83 million.

 

7) And from the Sale of 2,500 houses Naim expected to make a gross Sale of Rm750 Millions

Not counting its investments in Dayang, Perdana or its construction arm

Also possible sale of more Industrial Lands to Unlock Value

 

What is the Intrinsic Value of Naim then?

At Nta of Rm2.60 we take a 30% discounr

So Rm1.82

So is Naim valued at Rm1.82?

To be even more defensive we take another 30% cut

Rm1.27

So will Naim rise to Rm1.27?

Highly possible

So at 78.5 sen there is a 60% Upside

 

Best Regards

 

Calvin Tan Research

Singapore

 

Please buy or sell after doing your own due diligence. Please consult your fund manager or remisier before investing your hard earned monies

 

Note : Big Things are going for Sarawak in General and Naim in particular as Sarawak Govt has received Rm2.95 Billions Sales Tax from Federal Govt of Malaysia

See

 

Finally, Petronas pays up RM2.95 bln to Sarawak for 2019 SST

 

 

KUCHING (Sept 17): Petroliam Nasional Berhad (Petronas) and its subsidiaries have handed over a cheque for RM2,956,671,407.36 to the Sarawak government today as payment of arrears for the State Sales Tax (SST) on petroleum products.

 

To a question from the press, Abang Johari said he believed that all Sarawakians were happy with the settlement with Petronas.

He also said that the fund would be utilised for various development projects in the state.

 

Further note:

With almost Rm3 Billions Cash infusion Sarawak will now go into Development Boom. This will boost Naim as it is one of the Biggest Player in Sarawak

 

Further note:

These are the fundamental criteria of Naim

1. Price to asset value is only 30 per cent.
Deep discount with Huge margin of safety

2. An 18 sen dividend which is the best by far in both Malaysia or Singapore...beating even Topglove at only 8.5 sen

3. Great prospect as Sarawak Govt after receiving Rm2.95 Billions cash infusion is going for big ticket projects near lands of Bintulu of which Naim still hold substantial acres

4. Strategic move by Naim in building 2500 affordable single storey houses for sale at Rm300k

These bread and butter houses will sell like hot cakes being the cheapest in all of Malaysia
Will bring in Rm750 Millions gross

5. In boom times Naim was priced near Rm7.00 and now dropped to bargain basement level of only 77 sen

6. Best of the best is the yield. Highest dividend history of Naim dividend payout was year 2006 when Naim gave 14.4 sen dividend when price was Rm3.00

Now at the low low price or 77 sen Naim is giving an amzing dividend of 18 sen a share

7. How could genuine value investor miss?

 

Disclaimer

All information provided here should be treated for informational purposes only. It is solely reflecting author's personal views and the author should not be held liable for any actions taken in reliance on information contained herein.

 

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Labels: NAIM

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Chart Stock Name Last Change Volume 
NAIM 0.865 +0.075 (9.49%) 16,052,400 

 
calvintaneng WHY IS DIVIDEND IMPORTANT? From Dr Neoh Soon Kean's STOCK MARKET INVESTMENT, Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-09-24-story-h1514272489-WHY_IS_DIVIDEND_IMPORTANT_From_Dr_Neoh_Soon_Kean_s_STOCK_MARKET_INVESTM.jsp
30/09/2020 8:37 AM
warrenG I dont see any mention about 18cents dividend in the announcement...
30/09/2020 11:17 AM
calvintaneng WarrenG

Go to Naim Bursa Website

Click on announcement

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3089313

Then search deeper click on open the detail content

See

Utilisation of proceeds

2.5

See
Under Note b

Dividends to shareholders (b) Rm90,000,000

Do you see the figure Rm90 MILLIONS DESIGNATED AS DIVIDENDS TO SHARE HOLDERS

Rm90 MILLIONS = 18 SEN PER SHARE

Still want to know how I calculate and arrived at 18 sen per share?
30/09/2020 12:17 PM
Sslee Dear Calvintaneng,
For your information:
https://klse.i3investor.com/blogs/Sslee_blog/2020-09-30-story-h1514383998-Forewarn_to_be_forearmed_my_fellow_i3_bloggers.jsp
30/09/2020 12:23 PM
calvintaneng Tyvm SSLee

I will post disclaimer as per what you said
30/09/2020 1:56 PM
TheContrarian Thanks to Calvin I bought at 74.5 sen on Monday.
30/09/2020 3:16 PM
apolloang I bought at 0.77 and 0.80 today
30/09/2020 3:19 PM
amateurJR Another limit up buy call by calvin again? Many parties including big sharks and ikan bilis really interested in your stock pick
30/09/2020 4:44 PM
greedy44444 Greedy ikan bilis never learned...70 cents coming. Save your hard-earned money !
30/09/2020 6:49 PM
calvintaneng 70 sen coming?

Naim is selling 2 pieces of industrial lands to Sarawak Economic Corp for Rm340 millions cash

That is already 68 sen pure cash

Of this amount Naim is setting aside 18 sen to reward shareholders

So Naim still got extra 50 sen for building affordable high tech single storey houses for sale at Rm300k each

The cost of building one storey house is about Rm70k to Rm80k

Naim has its own lands with book value only Rm4 psf

So total cost is only Rm100k and selling at Rm300k will make Rm200k per house

That means that the 18 sen dividend is not a one off. Can expect more dividends to come

So learn to see value

And Naim has so many more pieces of industrial lands as well as housing lands

Any time Naim decides to sell them Naim can unlock further value

Then Naim is also Top holder of Dayang and Perdana

Naim is a wonderful company selling at attractive prices

Can you find a better dividend stock than Naim ?
30/09/2020 7:59 PM
Up_again Naim-80 cents
Market cap - 410 mil
Cash in hand 180 mil 340 mil land sales for Sarawak petroleum hub
Owns 26% of Dayang and 10% of Perdana worth 350 mil

Basically Getting NaIm’s property business, land in Kuching and shopping malls for free

Dividend 18 cents this year
30/09/2020 9:11 PM
calvintaneng More than that

Naim's assets are located in the last frontier of growth in the wild wild East of Malaysia with best potential for upside growth.

USA has its wild wild West after the Pilgrim Fathers settled in Eastern USA

Before there was Kl - Klang Federal Highway it took the very first car to travel one whole day from Kl to Klang

Today with the ease of the Federal Highway it takes only one hour to drive from Kl to Port Klang

Whole stretch of PJ, Subang, Shah Alam and Klang now fully built up

So is the North South highway that made travel from Padang Besar to Johor 2nd Link a breeze

All the cities and towns along NS Highway now boom and boom

Sarawak will now grow like never before with the advent of the Great Pan Borneo Highway

And Naim with all its strategic landbanks all along the Highway will benefit the mostest

Naim is in a land free from tornadoes, earthquake or tsunami. In the south Indonesia is also building its new capital in Kalimantan

So exciting times is coming for Naim

Naim is a best kept secret value stock
30/09/2020 11:30 PM
apolloang tan sri calvin u must tell uncle koon to sell all his glove stocks and buy naim….hehe
30/09/2020 11:40 PM
calvintaneng Good morning

Precisely Uncle Koon has not bought into Naim therefore Naim is still such a bargain for us

Last time Uncle Koon chased up Dayang from 70 sen to Rm3.01 the subsidiary of Naim in the Ogse bull run

So we buy low and not chase high
01/10/2020 8:26 AM
calvintaneng The best investment is not found when stocks are hot and popular because prices are no longer cheap

The best buys are those still overlooked, unloved, under reported and not yet in the radar of analysts

Naim is one of these hidden gems
01/10/2020 9:25 AM
enigmatic [control your emotions, discipline your mind] See this before buying calvintan's recommendation https://klse.i3investor.com/servlets/pfs/131750.jsp
01/10/2020 4:04 PM
calvintaneng Price is what you pay and value is what you get

Value will eventually dictate prices not prices dictate value

People who bided up Dayang over Rm3.00 have overpaid as Dayang now returns back to its true value below Rm1.50

Conversely, people buying Naim at 80 sen is getting a lot of value yet to be reflected in its share price

Naim sale of lands

68 sen

Naim total cash position in dayang if dayang is sold off

52 sen

Just selling these 2 pieces of lands and dayang shares alone

68 sen + 52 sen = Rm1.20

Naim at 80 sen is only 2/3 of cash

All the rest of condo , shopping malls, shares in Perdana, other industrial lands, construction business, ppe are all Free

This is how undervalue Naim is

Over the short term the share market is a voting machine but over longer term the stock market turns into a weighing machine
01/10/2020 4:04 PM
CCCL Longer term the stock market is a weighing machine. Precisely correct. Imagine if Uncle Koon the 2nd largest shareholder in Supermx since 2009. Now how much his net worth? Unfortunately not.
01/10/2020 7:16 PM


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