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Overview
Financial Highlight
Headlines
Business Background Berjaya Assets Bhd is an investment holding company. The company's business segments are gaming and related activities, Property development and property investment, and Recreation. Group operates various forecast lotteries in Sarawak, as well as provides lottery consultancy and related services. It is also involved in the investment and development of properties; operation of a hotel, theme park, and car park; management of a ferry terminal; and leasing of a theatre, as well as general trading and provision of commission agency services. Business activity of Berjaya is primarily functioned through Malaysia.
  Victor Yong It has property development near Singapore, not up? http://www.klsescreener.com/v2/news/view/406697 19/07/2018 18:21 Victor Yong News, Less than one year ago..property project in johor. :) Ahmad Naqib Idris / August 09, 2017 Berjaya Assets targets 70% occupancy for Berjaya Waterfront KUALA LUMPUR (Aug 9): Berjaya Assets Bhd aims to increase occupancy of its Berjaya Waterfront development in Johor from 50% currently to 70% by year end, as the group expects to secure new tenants going forward. Berjaya Assets executive director Koh Huey Min said it has been successful in refurbishing the asset, since acquiring it from Atlan Holdings Bhd for RM325 million in 2012. She said the group has refurbished the development for less than RM20 million, and has been in talks with a few prospects from China since last year. “Negotiations are still ongoing. We have also talked to the big brands at Berjaya Times Square which are keen to go in. We will definitely see some increment in occupancy — we are targeting to achieve approximately 70% by year end. With the new tenants, I am confident we can take it to the next level,” said Koh at an investor briefing yesterday. She said the group has the right to reclaim another 55 acres (22.26ha) of seabed adjacent to the existing site, which will further enhance the development’s value. Koh said the environmental impact assessment has been secured, with the group currently in the midst of submitting the environment management plan and getting planning approval. She added that the reclamation works can only start next year, as approval will only be secured within three to six months. The group estimates a reclamation cost of less than RM200 per sq ft, significantly lower than the highest recorded transaction price of RM800 per sq ft for the area. “Even if I were to give about 50% discount at RM400 per sq ft, we still have a value of about RM1 billion. “And this is only looking at the value of the land. We have earmarked it for a mixed development project, comprising hotels, residential units and probably hospital facilities, which will definitely push the gross development value beyond RM1 billion.” She said the reclamation works will take less than two years, but added that Berjaya Assets is not in a hurry to finish the development, considering current market conditions. The development will likely be completed phase by phase. Asked if Berjaya Assets would consider injecting its assets into a real estate investment trust (REIT), Koh said the group will have to consider restructuring its borrowings to meet requirements for REITs, as well as whether the yields are attractive. She said maybe Berjaya Waterfront Sdn Bhd — which owns the Berjaya Waterfront development — could be turned into a REIT. “The Berjaya Waterfront project is still light and has potential for growth because the occupancy rate is still at about 50%.” This article first appeared in The Edge Financial Daily, on Aug 9, 2017. 19/07/2018 18:26 Victor Yong Since august last year, mentioned about selling its gambling biz to become shariah-compliant stock, I think this disposal will be announce or confirm anytime from now :) Malaysia Berjaya Assets Aiming For One Billion Ringgit From Shoplot Sales-Official August 08, 2017 14:53 JST By Alexander Winifred Nikkei Markets KUALA LUMPUR (Aug 08) -- Berjaya Assets is aiming to get about one billion ringgit (233.4 million) from selling shop lots in iconic Berjaya Times Square building in Kuala Lumpur, and could use the cash to fund acquisition to power growth, its executive director said Tuesday. "The company is in talks with parties to monetize the shop lot assets," Koh Huey Min said at an analyst conference. "We're in talks with prospects from China" to take up more space at the company's Berjaya Waterfront hotel-to-shopping complex and is aiming for a 70% occupancy rate by the end of this year from the current 50%, Koh said. The comments come as Berjaya Assets, controlled by lottery-to-retail tycoon Vincent Tan, plans to further diversify its business as revenue from its core gaming business continues to dwindle. Revenue from the company's Natural Avenue unit, the largest lottery operator in Malaysia's Sarawak state, will be surpassed by income from property business in 2017, Koh said. The company plans to focus on its property and newly acquired auto assembly business even as it mulls exiting the gaming business to comply with Shariah rules, she added. Shariah refers to Islamic law that among other things bans alcohol, charging of interest, speculation or benefiting to the detriment of the public good. "We want to focus on the property and car assembly business, and at the same time, meet Shariah requirement," Koh said. In May, Berjaya Assets completed the acquisition of Oriental Assemblers, which currently makes 40,000 vehicles mainly for the group. It could raise production by building a new plant on an existing land asset, Koh said without elaborating. Berjaya Assets plans to start reclamation work on a Johor project in one-two years, Koh said. - By Alexander Winifred; alexander.winifred@nikkeinewsrise.com; +603-20267363 - Edited By Abhrajit Gangopadhyay - Send Feedback to feedback@nikkeinewsrise.com - Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd. 20/07/2018 09:15 Victor Yong :p CORPORATE DEVELOPMENTS Oriental Assemblers On 21st June 2016, Aroma Kiara Sdn Bhd, a wholly-owned subsidiary company of the Company entered into a Share Purchase Agreement with Oriental Holdings Berhad, Oriental Rubber & Palm Oil Sdn Berhad, Dato’ Syed Mohamad Bin Syed Murtaza, and Dato' Seri Haji Md Isahak Bin Md. Yusuf to acquire 100% equity interest in Oriental Assemblers Sdn Bhd for a total cash consideration of RM32.5 million ("Proposed Acquisition"). On 6th January 2017, the Company announced that the Share Purchase Agreement is now unconditional upon the receipt of the approval from the Ministry of International Trade and Industry for the Proposed Acquisition on 29th December 2016 and hence, the balance of cash consideration amounting to RM29.25 million being 90% of the consideration will be settled pursuant to the terms of the Share Purchase Agreement. This transaction has since been completed on 1st June 2017. Megaquest (NFO) On 12th July 2016, Tropicfair Sdn Bhd, a wholly-owned subsidiary company of the Company had entered into a Share Sale Agreement with Violet Circle Sdn Bhd to acquire the remaining 50% equity interest in Megaquest Sdn Bhd for a total cash consideration of RM108.0 million. The said acquisition is still pending. Foshan City Bureau of Commerce On 13th July 2016, Berjaya Waterfront Sdn Bhd (“BWSB”), a wholly-owned subsidiary company of the Company and Foshan City Bureau of Commerce (“FCBC”), the agency responsible for the commerce development and management of the Government of Foshan City, Guangdong Province in China entered into a Memorandum of Understanding (MOU) for Collaboration to foster trade and investment from Foshan City to the South East Asia Duty Free Trade City (“SEADFTC”) project. Under the MOU, both BWSB and FCBC will establish a framework for collaboration with progressive discussions, exchange of information, and development and investment updates for the relevant commercial initiatives. FCBC will organise trade visits to SEADFTC to explore and conduct trading and investment activities with the intention of promoting this project as a strategic initiative for Foshan City investors in Malaysia. 20/07/2018 09:38 Victor Yong Good, if bjassets privatise 7-eleven via share swap, etc. :) According to a May 4 filing with Bursa Malaysia, Berjaya Retail Bhd disposed of 5.5 million shares on May 2, leaving it with a direct interest of 312.46 million shares or a 28.14% stake. The shares were acquired by Sublime Cartel Sdn Bhd, a wholly-owned unit of Berjaya Assets Bhd (BAssets), which saw its deemed interest rise to 58.22 million shares or 5.243% equity interest. On May 7, a block of 130 million 7-Eleven shares was traded off market. The buyer was not known at press time but it could be BAssets as there is speculation that it may take 7-Eleven private. A previous article by The Edge quoted sources as saying that BAssets — controlled by tycoon Tan Sri Vincent Tan — is contemplating the corporate exercise and that the diversified group is likely to continue increasing its stake in 7-Eleven to double digits. As at April 20, Tan’s direct stake in BAssets was 826.74 million shares or 32.32% while his in-direct interest was 750.59 million shares or 29.34%. 20/07/2018 17:57 Victor Yong Good also, if bjassets spin off berjaya times Square as REITs :) In light of the challenging outlook, Previndran recommends that companies streamline asset holdings, and divide them between core and non-core assets while reviewing their loans. For property development companies that have investment properties, he recommends placing them in a real estate investment trust, or finding ways to monetise them. PETALING JAYA: The market may have begun to show signs of improvement following the Malaysian General Elections, but it is still too early to cheer. Real estate consultant Zerin Properties CEO Previndran Singhe is expecting challenging times in the near future, especially at the corporate level. Previndran told EdgeProp.my that the ongoing US-China trade war, rising concerns over risks of another financial crisis, and the ongoing restructuring exercise by the new Malaysian government are just some of the issues that could lead to market fatigue and pose a threat to companies. “I think there is going to be a spin-off effect [from the US-China trade war] because we are part of the supply chain for China. You are going to see some companies experience tough times, especially commencing November and December. “The market will be fatigued. This cannot be helped, but it will be a short-term pain that we all have to go through,” he said, adding that the “short-term pain” could last at least 12 months before the dust settles. He cited instances of property developers who put their project launches on hold in order to wait for greater clarity and direction from the government. As a result, developers could face cash-flow issues while servicing debts. Small and medium enterprises could see their bottom lines hit by the US-China tariffs, and subsequently face problems paying off loans for their properties. Total non-performing loans showed an increase of 6.68% to RM25.89 billion in May 2018, from RM24.27 billion as at end 2017. In light of the challenging outlook, Previndran recommends that companies streamline asset holdings, and divide them between core and non-core assets while reviewing their loans. For property development companies that have investment properties, he recommends placing them in a real estate investment trust, or finding ways to monetise them. Meanwhile, he said, it would be a good time for real estate agencies and consultancy firms to innovate, in order to meet the needs of these companies. Taking into account the changing needs of corporations in such challenging times, Zerin Properties recently introduced Zerin Capital, to offer corporate real estate services such as loan restructuring, corporate real estate mergers and acquisitions (M&A), real estate financial consultation, and real estate restructuring to help companies preserve current value and create future value. “There will be a lot of opportunities for real estate firms. But it is going to be tough for them if they want to stick to traditional methods.” This story first appeared in the EdgeProp.my pullout on July 20, 2018. Download EdgeProp.my pullout here for free. 20/07/2018 18:00 Vict Involved in Car assembling, hotel, prop development, gambling, etc... Quite diversified but share price fell from 50sen+ :) 31/07/2018 10:53 Vict Buy before it becomes a shariah compliant stock. Sultan Johor is a major shareholder.gambling biz in Sarawak will be divested.... Don't think it will be delayed further, anytime from now. Buy before the price rocks 02/08/2018 16:30 Vict Don't think sultan Johor wanted to invest in gambling biz, they should have agreed to divest the gambling biz in Sarawak asap 03/08/2018 15:57 Vict Vincent tan and sultan Johor control more than more 70percents of bjassets. Maybe, they can privatise it... The gambling biz in Sarawak can be disposed off thereafter :) 06/08/2018 11:22 Vict When will bjassets divest its gambling biz? :) KUALA LUMPUR: Kewujudan pusat judi termasuk di Genting Highland tidak perlu dibenarkan beroperasi, kata Datuk Mujahid Yusof Rawa. Menteri di Jabatan Perdana Menteri (Hal Ehwal Agama) itu berkata demikian secara peribadi kerana aktiviti itu ditentang semua agama, bukan sahaja Islam. “Saya kalau bertanya kepada saya, kalau boleh (judi) Genting Highland ke, semua tak ada. Sebab ini akan jadi masalah, selagi ada permintaan selagi itu ada tawaran,” katanya ketika ucapan pergulungan titah Agong di Dewan Rakyat. Mujahid berkata demikian menjawab pertayaan Datuk Seri Edmund Santhara (PH-Segamat) yang menanyakan adakah kerajaan hanya membenarkan syarikat judi besar seperti di Genting Highland dan mengetepikan permohonan syarikat kecil. Mujahid turut menjawab pertanyaan Edmund, adakah terdapat peruntukan undang-undang tidak membenarkan orang Islam menjadi pemegang saham dalam syarikat judi. Beliau menjawab: “Mana-mana ahli lambaga pengarah Islam terlibat dalam syarikat perjudian tidak ada. Saya bercakap dari segi moralnya, jadi saya nasihat kepada orang Islam jika beliau tahu tanggungjawab dia, kalau judi haram maka nak jadi ahli lembaga, lagi tak boleh,” katanya. Dalam perkembangan lain, Mujahid bersetuju dengan cadangan Datuk Nik Muhammad Zawawi Salleh (PAS-Pasir Puteh) supaya setiap kementerian membentuk satu jawatankuasa bagi membolehkan semua wakil agama mengadakan perbincangan soal judi dan memperkenalkan penguatkuasaan hukuman bagi semua agama secara selari bagi kesalahan judi. “Saya bersetuju dengan Pasir Puteh, sebab saya kira isu judi bukan Islam sahaja tapi merentasi semua kaum,” kata Mujahid sambil memaklumkan pihaknya bersetuju menjadikan Kelantan sebagai contoh dalam membanteras judi, jika ia memberi kebaikan.” 06/08/2018 21:54 Vict In my opinion, better to privatise bjassets because of its gambling biz in Sarawak Dan sultan Johor is a major shareholder. Less publicity as a non-listed company, etc... Vincent tan has privatised listed companies before, nothing new. 29/08/2018 08:47 somersby dono vt tan doing what? price keep droping, and dymm sultan johor buyng so much 07/09/2018 23:07 Vict Buy some today, below 30sen now, follow sultan Johor's investment, one of the major shareholders in bjassets. 14/09/2018 09:05 Vict Buy and hold till bjassets becomes a shariah compliant stock... I think it is very near now 14/09/2018 09:11 Vict Hoping bjassets would sell its gambling biz in Sarawak to bjtoto via cash or cash plus non-gambling assets from bjtoto. :) 14/09/2018 09:25 Vict Last year's prediction and this year's share price very different :) CONCLUSION / RECOMMENDATION“Malaysia’s economy”Above market expectations, Malaysia recorded a 1Q/2017 GDP growth of 5.6%, according to Bank NegaraMalaysia. BNM has maintained its accommodative overnight policy rate (OPR) at 3.0%, while inflation(CPI) (April 2017) has hiked up to +4.4%. Malaysia’s April 2017 PMI stood at the improved sentiment levelof 50.7. For March 2017, Malaysia recorded encouraging y-o-y growth of +24.1% for Exports, +24.1% forImports, +13.6% for Manufacturing Sales and +4.6% for Industrial Production Index (IPI).“Buy/Outperform Call”Given Berjaya Asset’s investment highlights as mentioned above, we thus recommend aBuy/OutperformCall, with a target price (TP) of RM1.62. The TP is derived based on a P/BV of1.0 time, suggesting a32.8% or40 sen potential upside in stock price, based on our FY18E numbers. We find that BerjayaAsset’s P/BV valuations are currently reasonable,and look forward for further upside potential. The grouphas a manageablenetgearing position of around 0.3 times its shareholders’ funds, andhencedoes appearreasonably priced.“Investors’ interest piqued”As per announcements on Bursa Malaysia, we note that Tan Sri Vincent Tan(“TSVT”)has been buying upBerjaya Asset shares since 31st May 2017, with a total of more than 1.4 million shares acquired.Alsonotably, there has been a slew of warrants conversions since 26th April 2017, with more than 75 million ofwarrants having been converted into ordinary shares of Berjaya Assets.Since April 2017, the Group’sshare price and trading volume has been noticeably higher than in the preceding months, and this haspiqued investors’ interest and curiosity. While we are unaware of TSVT’s next market manoeuvre, therecould be a myriad of possibilities, ranging frominternalcorporate exercises to M&A and JV initiatives. Themarket eagerly waits for the next move. 19/09/2018 10:46 Vict INVESTMENT HIGHLIGHTS The group has a number of growth catalyst s or investment highlights, which we list down here: Substantial value and tenant base, especially at Berjaya Times Square. Potential upside from expansion and land reclamation of Berjaya Waterfront in JB. Potential upside from its venture into motor ve Oriental Assemblers. Potential upside from MOU with China party. Possible divestment of some lands / buildings. hicle assembly / distributorship via its acquisition of Management team with many years of experience in the property development and managem industry. Possible dividend / bonus upside . 19/09/2018 10:47 Vict CORPORATE DEVELOPMENTS Oriental Assemblers On 21 st June 2016, Aroma Kiara Sdn Bhd, a whollyowned subsi More than 30 years of experience, including more than 10 years of experience in managing the NFO business. diary company of the Company entered into a Share Purchase Agreement with Oriental Holdings Berhad, Oriental Rubber & Palm Oil Sdn Berhad, Dato’ Syed Mohamad Bin Syed Murtaza, and Dato' Seri Haji Md Isahak Bin Md. Yusuf to acquire 100% equity interest in O riental Assemblers Sdn Bhd for a total cash consideration of RM32.5 million ("Proposed Acquisition"). On 6 th January 2017, the Company announced that the Share Purchase Agreement is now unconditional upon the receipt of the approval from the Ministry of I Acquisition on 29 th nternational Trade and Industry for the Proposed December 2016 and hence, the balance of cash consideration amounting to RM29.25 t. million being 90% of the consideration will be settled pursuant to the terms of the Share Purchase Agreemen This transaction has since been completed on 1 Megaquest (NFO) On 12 th July 2016, Tropicfair Sdn Bhd, a whollyst June 2017. owned subsidiary company of the Company had entered into a Share Sale Agreement with Violet Circle Sdn Bhd to acquire the remai ning 50% equity interest in Megaquest Sdn Bhd for a total cash consideration of RM108.0 million. The said acquisition is still pending. Foshan City Bureau of Commerce On 13 th July 2016, Berjaya Waterfront Sdn Bhd (“BWSB”), a whollyowned subsidiary comp any of the Company and Foshan City Bureau of Commerce (“FCBC”), the agency responsible for the commerce development and management of the Government of Foshan City, Guangdong Province in China entered into a Memorandum of Understanding (MOU) for Collaborat ion to foster trade and investment from Foshan City to the South East Asia Duty Free Trade City (“SEADFTC”) project. Under the MOU, both BWSB and FCBC will establish a framework for collaboration with progressive discussions, exchange of information, and development and investment updates for the relevant commercial initiatives. FCBC will organise trade visits to SEADFTC to explore and conduct trading and investment activities with the intention of promoting this project as a strategic initiative for Fosh an City investors in Malaysia. 19/09/2018 10:48 Vict Prediction in July 2017 :) BERJAYA ASSETS BHD [3239]“InterestingTimesAhead”COMPANY BACKGROUND Update Report18 July, 2017MAIN MARKETPROPERTIESMarket Price (RM):1.22Target Price (RM):1.62Upside (%):32.8Upside (RM):0.40KEY INFO52wk Low (RM):0.7152wk High (RM):1.40Average 1-yr Vol(“000):332.7Issued Shares (mil):1447.6Market Cap (mil):1766.1Financial year end:30th JunePar value (RM)1.00TOP 3 DIRECTSHAREHOLDERSTan Sri Dato’ SeriVincent Tan:41.9%Portal Access S/B:6.3%Berjaya Land Bhd:3.0%:Buy/Out PerformBACKGROUNDBerjaya Assets Berhad was listed in August 2009, taking over the listingstatus of Matrix International Bhd.The group’s headquarters is located atBerjaya Times Square, in downtown Kuala Lumpur.Berjaya Assets Bhd is agroup mainly focusedon property development and management, but ithas also diversified into a few other business activities.INVESTMENT HIGHLIGHTSThe group has a number of growthcatalystsor investment highlights,somewhich we list down here:> Substantial value and tenant base, especially at Berjaya Times Square.> Potential upside from expansion and land reclamation of BerjayaWaterfront in JB.> Potential upside from its venture into motor vehicle assembly /distributorship via its acquisition of Oriental Assemblers.> Potential upside from MOU with China party.> Possible divestment of some lands / buildings.> Possibledividend/bonus upside.> Management team with many years of experience in the propertydevelopment and management industry.RECOMMENDATIONWe recommend aBuy/Outperform with target price of RM1.62,reflecting aP/BV of1.0 time over its FY18 BV/Share. 19/09/2018 10:50 Vict Food and Beverage (Berjaya Assets Food (BAF) Sdn Bhd) Berjaya Assets Berhad through its 100% owned subsidiary, Berjaya Assets Food (BAF) Sdn Bhd obtai ned a license agreement with Greyhound Café Co Ltd (from Thailand) for exclusive rights to establish and operate cafes under the trademark ‘Greyhound Café’ in Malaysia. Greyhound Café is a fashionable casual dining café that offers a trendy and creative mi Greyhound Café restaurant was opened on 1 st x of menus, great service and ambience. The first March 2016 at ANSA, in the heart of Bukit Bintang, Kuala Lumpur. A new outlet at Mid Valley Megamall has since opened. 19/09/2018 10:51  superbear2020 Good buy @ P/E = -21.18 (negative) ? I still have some shares here (a few K), already stop loss by selling half of them last few months. If I know it will drop further like hell, I will sell all. Hopefully the analysis is right, the shares will boom up soon .... :-) 20/09/2018 09:17 Vict I guess , maybe, interested parties just let the price to fall to the lowest price level, then slowly buyback in bulk... When substantial quantity has been bought, then they continue to buy more and more till the price is back to a reasonable level. 20/09/2018 09:42  |
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