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HOW MUCH DO YOU THINK PAOS WILL GET FROM LAND REVALUATION OR CASH FROM POTENTIAL LAND SALE FOR MALAYSIA HIGH SPEED RAIL DEVELOPMENT
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88
In my previous posting on PAOS, I mentioned on the potential of factory land acquisition by myHSR for the construction of HIGH SPEED RAIL HSR PUTRAJAYA station around the area of Banting.
Read more info here
According to the annual report, PAOS properties had been sitting in net book valued more than 20 years ago. With the potential coming on HIGH SPEED RAIL HSR PUTRAJAYA STATION taking it's factory land, there will be a need for revaluation of properties in order to reflect the right price for the purchase.
Let's take a look on the properties asset of PAOS.
The potential asset near HIGH SPEED RAIL HSR PUTRAJAYA will be NO.3, JALAN GANGSA, KAW PERUSAHAAN BANTING, 42700 BANTING, SELANGOR.
The land area is 119,356sf (Around 2.74 acre), sitting at RM 2.6 million in valuation.
According to the latest transaction around that area taken from BRICKZ.MY
Let's say PAOS FACTORY land area is RM 200 PSF in average, the subject property will be valued at RM 23.87 million, an stunning increased of RM 21 million. (Current book value is just being 10% of the real market value)
What about the value for the main office at Shah alam?
The land in Shah alam is 254850sf, around 5.85 acre.
Current price at the industrial area is transacting at RM 230 PSF in average.
Which mean, PAOS factory at Section 15 shah alam will be looking at RM 58.61 million on average, a big increase of RM 47.11 million.
Combining both, the revaluation gain will be RM 68.11 million. The revaluation exercise will potentially bring in 37.5 cents in EPS.
What is more intriguing is the recent transaction surrounding this area where factory transaction are going on in a group. The transaction could be looking to see HSR railway alignment going from banting into shah alam and turning to bandar Malaysia.
If this really happen, PAOS will stand to receive almost RM 70 million in land sale for HSR construction.
I would like to inform my reader that I am invested in PAOS due to
1. Asset being very undervalued with net book value more than 20 years ago
2. Asset highly potential for conversion into cash through malaysia HIGH SPEED RAIL Land Acquisition
3. Asset highly link with movement in HWATAI
I will continue to stay invested in PAOS to see the excitement of the Malaysia High Speed Rail development.
IMPORTANT NOTICE
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.
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88
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