GLOBAL ORIENTAL BERHAD

background: 4 core business segments:

- property development, which is engaged in the development of residential and commercial properties, and sale of development land(highlighted red is contributed largely for the current revenue, refer to Q1 2016)

- construction, which is engaged in the construction of property development projects and other similar construction activities

- property letting, which is engaged in the rental of properties

- investment holding

Quick glance:

What is the Company's plans:

- Clear off debts & future development plan (Source)

- highlighted below shows they are desperate to clear the debts as last Q2 sold two more lands for cash...

How much debts?

- 262.8mil

How to clear?

- Cash from balance sheet shows that the company has 69mil (not to mention 39mil inventories and 35mil of receivable)

- selling da:men for 488mil

Total of cash = 557mil(assume if da:men confirmed sold)

Net cash total/share is 0.647(12.5% upside of current 0.575) as 294.2mil(557mil-262.8mil) / 454.7(mil of shares)

However, I can also conservatively calculate GOB share price at around 0.78 per share(regardless of other segment's revenue, see Pic A) by Q2 2016 as 353.1mil/454.7(mil of shares)

353.1mil = 488mil + 39mil inventories + 35mil of receivable +16.3mil cash coming in future(see below) - total of debts

Pic A:

Conclusion: GOB is considered undervalue even current weak market sentiment for property segment!

*I didn't hold any share of GOB as just write for fun, it's not a buy/sell call as just for reference only

*too bad no dividend

Other info:

btw, sharing a chart of after AMPROP sold off Kesas for 280mil cash last time at April 2014.

- estimated upside of 80-90%