INVESTMENT MUST BE "INDEPENDENT" & "RATIONAL"

1. Investment in any particular stocks must be independent (not influence by others because one have done sufficient homework about the biz and only answerable to oneself and nobody else) and rational (based on biz fundamental, risk, financial indicator, trend).

ADMIST THE DULL STOCK MARKET, GADANG ATTRACT ATTENTION

1. Lately Gadang stock fluctuation and rise attracted some attention.
2. Many investors are wondering what some of the substantial shareholders are doing, such as sale by Franklin Templeton, Tan Sri Kok On sold some shares and new shareholder became the top 30 @ 30 September 2016.
3. Everyone has his own basis for buying and selling - some for kids education, some due to margin exposure, some have to show their performance, some because their target attain.
4. Therefore, look at "fact" and avoid "noise".

FACTS AND NOISES

1. Multiple proposals on Split, Bonus and Free Warrants.
2. JV with Kwasa Land owner for development (detail not out yet)
3. Tan Sri sold some shares (how many percent?)

Sometime we over speculate at the wrong stuff, like, why Tan Sri sold its shares, is it a sign of profit is dropping that he know more than other investors? Why Templeton selling? Why prominent shareholder buying?

LETS REVISIT SOME OLD FACTS

                                                    Shareholders Funds           Profit

2004                                            111.8 m                              3.612m

2015                                            529.1m                             94.767m

Increase                                      417.3  (A)                            91.1  (B)

Inc PAT/Inc SF                         (B)/(A) = 22% (2004 - 2015)

Inc PAT/Inc SF                              @100% (2010 - 2015)

GOING FORWARD

1. Before the two announcements on Multiple Proposals and Kwasa Land,

2. Gadang order book (RM600m-800m +) + unbill sales (RM200m+)

3. Gadang has a GDV on property of RM5.4b (mainly low cost and landed)

4. Gadang has 4 water concessionaires in Indonesia providing stable cash flows

5. Gadang has plantation about 5,181 ac in Sabah

6. Gadang's hydro electric power plant in Sumatera will commence in FY2018

7. MRT2 - The Star mentioned similar MRT1 contractors not choosen yet will likely be choosen

CATALYSTS FOR FUTURE (3-5 YEAR GROWTH)

Sometimes we must look beyond 1-2 years, as business needs time to execute.

1.  Kwasa Land - will improve order book

2.  Gradual new sale of properties (low cost), will help contribute growth

3. Power plant will contribute positively in FY2018

4. Palm oil plantation coming to mature, will provide growth

5.  Multiple proposals will be positive (improve volume), liked by shareholders

6.  MRT2 project announcement soon (<6 months)

MR. FONG SILING (Prominent Investor)

30.9.14       1,500,000

30.9.15       4,600,000

30.9.16       5,000,000

Don't over speculate other investor intention.  Use as reference.  Do your homework in detail, if anyone ask you, you are able to support your basis.  Everyone has different knowledge about the biz, example, say, I know the plantation biz well, and I believe the potential is better than what the analysts reported, so I know the value is there.  Similarly the Power Plant in Indonesia, could be another catalyst, but only contribute in FY2018.

Or example, you know Tan Sri or your friends know some of the ED, and know that their management is capable (at least based on the last 5 years), so, you believe their performance for next 5 years (cumulative) should be better than last 5 years (about RM230m +).  Where will the profit comes from, construction? property (plus JV properties)? Power Plant? Plantation? etc.

GADANG's TAGLINE

• Going to the Next Level of Sustainable Growth