Target Invest - We Target, We Invest


Publish date: Fri, 05 Apr 2024, 09:05 AM


Malaysia government had restarted the HSR (KL-SG) project under Prime Minister Anwar Ibrahim. Ever since then, listed company especially property developer with prime land located near to those subject area had been going up strongly.
This big project will be carrying a mega price tag worth more than RM 100 billion, which include land acquisition and infrastructure construction cost.
As of the latest, three consortia is believed to be on the short listed candidates.
The three consortia are YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd, Malaysian Resources Corp Bhd-IJM Construction Sdn Bhd-Berjaya Rail Sdn Bhd-Keretapi Tanah Melayu Bhd (MRCB-IJM-BRail-KTMB) and a Chinese consortium said to be led by state-owned China Railway Construction.
Most of the developer sitting in big plot of prime land in Johor had saw share price riding up high. While Bandar Malaysia co-owner IWCITY saw share price double up from 40 cents to 80 cents region. UEMS from 25 cents to RM 1.20. SPSETIA from 50 cents to RM 1.40. While those are the big names that had liven up, there are smaller player which will be benefiting from the land acquisition.
I will zoom into the HSR BATU PAHAT station.
As you can see, the HSR station will be from Jurong West -> Iskandar Puteri -> Batu Pahat -> Muar -> Ayer Keroh -> Seremban -> Putrajaya -> Bandar Malaysia
For the case of Batu Pahat, the only best possible slot to go through the town city will be the small neckline of land which comprises of a few old factories.
According to research and studies, the potential proposed station will be most probably on the east side, and follow by an elevated railway that will cut through the northern side of Batu Pahat.
The best possible location is owned by Hwatai biscuit factory.
The current land occupied by Hwatai are all leasehold. Most of the land are not revalued. While remainder lease is low, there are many hidden value inside the land that could possibly bring Hwatai worth more than RM 150 million from compensation.
Based on oustanding shares of 74.833 million shares, that compensation will give Hwatai a war chest of RM 2 per share.

Currently, HWATAI shares is trading at 55 cents. What is to be seen in the future when the HSR railway is confirmed will be the revealed soon.

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.


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