Hi Guys,

It has been a spectacular rebound for MRCB today due to the positive turn of event for MRCB/GKENT  PDP for LRT3 being restored.

With  almost 200 Million Shares Done with 27% gain MRCB has not been so actively chased up for a long long time.

The Trigger was due to MRCB being oversold plus the Positive Reinstatement of LRT3 Project.

This shows that PH's Policy is not set in stone as things might yet change.

THINGS MIGHT YET CHANGE?

YESSS!

FM Lim Guan Eng said even the HSR is viable if the "Price is Right"

And rumour has it that HSR could be done for half the price - Only Rm55 Billions instead of the bloated Rm110 Billions

And if MRCB could go up 27%  with the reinstatement of LRT3 who knows whether It Might Even Go Double Limit Up if

MRCB's PDP Job for High Speed Rail (HSR) is Up Again?

So guys, keep your fingers crossed & hold tight for those who already bought.

What about George Kent who went limit up?

Calvin thinks as of now Gadang offers better value than GKent

Why?

Here are some salient facts about Gadang at current price of 68 sen

1) Gadang is 68 sen with NTA of Rm1.03. So Gadang is selling at a 34% Discount to NTA which now qualifies the 30% Margin of safety by Ben Graham.  Whereas GKent is Rm1.29 with NTA only 83 sen. So GKent is selling above Net Asset Value.

2) Some other factors favouring Gadang are

a) It has secured TRX Job which is Ongoing

b) Its 2 Job Packages in Pengerang RAPID also progressing well. One of my Johor Buddies owns a canteen in RAPID - serving food to 1,000 Nationals from China, Bangladesh & Others. He has almost completed current phase.

And he is fortunate to win the next new phase of Job in RAPID by providing even more food to 2,000 people starting End 2018

Will Gadang win more Projects in Pengerang's RAPID

See QTR report about its construction progress

Revenue for the current year to date increased 46% to RM271.81 million as compared to RM185.96 million recorded in the preceding year to date. In line with this, profit before tax increased 45% to RM68.37 million in the current year to date.

This was mainly due to:

 Progress arising from existing project namely, RAPID package 301 and 402;

 Commencement of work for new projects namely, KVMRT V206 project , (RM952 MILLIONS VIADUCT PROJECT  FROM SERDANG RAYA  TO UPM)

TRX project and Cyberjaya Hospital project; and

 Recognition of variation orders attributed from completed projects.

AND CYBERJAYA HOSPITAL PROJECT IS NOT AFFECTED BY PH CURRENT BELT TIGHTENING SCOURGE.

LOOK AT ITS PROPERTY DIVISION

Property Division For the current quarter, revenue increased to RM57.91 million as compared to RM51.83 million with corresponding profit before tax increased to RM19.52 million as compared to RM16.92 million in the corresponding quarter of the preceding year.

As the overall property market demand weaken, revenue for the current year to date decreased from RM176.03 million to RM123.40 million. In tandem with this, profit before tax decreased from RM49.55 million to RM38.60 million. This was mainly due to completion of some development projects.

In spite of challenging times for property Gadang managed to eke out a gain. Its Capital City which is a white elephant is also ready soon (Phew! It escaped due to its Cash Rich Partners from Singapore)

One Interesting highlight is Insiders kept up accumulation of Gadang shares

See

TAN SRI DATO' KOK ONN	10-Jul-2018	Acquired	17,000	0.662
TAN SRI DATO' KOK ONN	09-Jul-2018	Acquired	35,000	0.670
TAN SRI DATO' KOK ONN	02-Jul-2018	Acquired	63,000	0.691
TAN SRI DATO' KOK ONN	29-Jun-2018	Acquired	220,000	0.695
TAN SRI DATO' KOK ONN	28-Jun-2018	Acquired	60,000	-
TAN SRI DATO' KOK ONN	27-Jun-2018	Acquired	191,000	0.687
TAN SRI DATO' KOK ONN	21-Jun-2018	Acquired	98,700	0.716
TAN SRI DATO' KOK ONN	19-Jun-2018	Acquired	79,500	0.723
TAN SRI DATO' KOK ONN	18-Jun-2018	Acquired	77,900	0.743
TAN SRI DATO' KOK ONN	01-Jun-2018	Acquired	102,000	0.666
TAN SRI DATO' KOK ONN	31-May-2018	Acquired	173,000	0.656
TAN SRI DATO' KOK ONN	30-May-2018	Acquired	159,000	0.680
TAN SRI DATO' KOK ONN	25-May-2018	Acquired	1,000	0.750
TAN SRI DATO' KOK ONN	24-May-2018	Acquired	40,000	0.750
MR BOEY TAK KONG	24-May-2018	Acquired	63,700	0.730
TAN SRI DATO' KOK ONN	18-May-2018	Acquired	22,000	0.772
TAN SRI DATO' KOK ONN	15-May-2018	Acquired	23,000	0.785
TAN SRI DATO' KOK ONN	14-May-2018	Acquired	35,600	0.767
TAN SRI DATO' KOK ONN	07-May-2018	Acquired	32,000	0.818
TAN SRI DATO' KOK ONN	03-May-2018	Acquired	130,200	0.817
TAN SRI DATO' KOK ONN	02-May-2018	Acquired	45,000	0.811
TAN SRI DATO' KOK ONN	30-Apr-2018	Acquired	106,000	0.810
TAN SRI DATO' KOK ONN	27-Apr-2018	Acquired	54,000	0.810

While Insiders of Gadang are buying consistently Insiders of GKent are only nibbling

Any time now Gadang Qtr Results should be out soon

Will it be good, bad or ok?

Calvin thinks it should be fairly good due to progress bilings from Job done.

Warm regards

Calvin Tan Research

Please buy/sell after doing your own due diligence

Additions:

MRCB

Even without HSR MRCB on its own has already secured Rm7 Billions Ongoing Jobs. So MRCB is undervalue.

GADANG IS BETTER THAN GKENT. AND CERTAINLY FAR BETTER THAN JAKS ANY TIME

So far Gadang has escaped the carnage of job cancellations or litigations