THE INVESTMENT APPROACH OF CALVIN TAN
CMSB (2852) OWNER OF KENANGA INVESTMENT BANK , CEMENT MONOPOLY, FIBER OPTIC TOWER MONOPOLY IN SARAWAK, Calvin Tan Research
calvintaneng
Publish date: Tue, 12 Nov 2019, 02:40 PM
calvintaneng
0 1,803
Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
Dear Friends, Investors & Traders
Calvin promoted Opcom, Netx & Redtone as Top NFCP Fiberisation Stocks for Coming Digital Economy Bull Run soon
Today, I found another good one. That is, CMSB who owns Sacofa
CMSB Current price: Rm2.35.....................One Year Target Price Rm4.70 (100% Upside expected)
Why Sacofa?
See
CMSB to buy telco firm for RM186.79m
03 APR 2015 / 05:36 H.
PETALING JAYA: Cahya Mata Sarawak Bhd (CMSB) is buying a 50% stake in Sacofa Sdn Bhd, a Sarawak based telecommunications infrastructure and services company, for RM186.79 million.
In a filing with the stock exchange, CMSB said it had entered into a conditional share purchase agreement with the State Financial Secretary, on behalf of the state government of Sarawak, for the proposed acquisition.
CMSB said the acquisition will be funded internally and/or through bank borrowings.
"While CMSB understands that our major stakeholders will have many questions about this acquisition, we have no further comment to make until the sale and purchase is concluded, at which time we will make a further statement," said CMSB group managing director Datuk Richard Curtis.
CMSB said the acquisition fits into CMSB's business in the infrastructure and economic developments in Sarawak.
"As the business in Sacofa is already income-generating, the proposed acquisition is expected to be income accretive, and is envisaged to increase the overall business profitability of the CMSB. In view of the above, the board believes that Sacofa will contribute positively to the operations of the CMSB group," it noted.
Sacofa was granted a 20-year concession to build, manage, lease and maintain telecommunication towers in Sarawak by the state government of Sarawak on March 5, 2002.
In a filing with the stock exchange, CMSB said it had entered into a conditional share purchase agreement with the State Financial Secretary, on behalf of the state government of Sarawak, for the proposed acquisition.
CMSB said the acquisition will be funded internally and/or through bank borrowings.
"While CMSB understands that our major stakeholders will have many questions about this acquisition, we have no further comment to make until the sale and purchase is concluded, at which time we will make a further statement," said CMSB group managing director Datuk Richard Curtis.
CMSB said the acquisition fits into CMSB's business in the infrastructure and economic developments in Sarawak.
"As the business in Sacofa is already income-generating, the proposed acquisition is expected to be income accretive, and is envisaged to increase the overall business profitability of the CMSB. In view of the above, the board believes that Sacofa will contribute positively to the operations of the CMSB group," it noted.
Sacofa was granted a 20-year concession to build, manage, lease and maintain telecommunication towers in Sarawak by the state government of Sarawak on March 5, 2002.
"Although there is a finite life to the concession agreement, Sacofa currently operates more than 600 telecommunications towers and this serves as a strong deterrent to any potential new market entrants in assessing the potential investment requirements to compete with Sacofa," CMSB added.
According to the announcement, Sacofa leases its towers to the local telecommunication players, including Celcom, DiGi and Maxis.
"Sacofa has strong earnings visibility due to its position as the sole provider of telecommunication towers to telcos players in Sarawak provides the company with high visibility on future revenue," CMSB said.
According to the announcement, Sacofa leases its towers to the local telecommunication players, including Celcom, DiGi and Maxis.
"Sacofa has strong earnings visibility due to its position as the sole provider of telecommunication towers to telcos players in Sarawak provides the company with high visibility on future revenue," CMSB said.
FROM HERE WE CAN SEE THAT CMSB HAS A MONOPOLY IN TELCO TRANSMISSION TOWERS FOR CELCOM DIGI AND MAXIS (NOT ROHAS OR OCK)
THE ENTIRE LENGTH OF THE PAN BORNEO HIGHWAY WILL SEE MANY MORE FIBER OPTIC TOWERS INSTALLED BY SACOFA OF CMSB
WE ALSO NOTE THAT CMSB IS THE CEMENT MONOPOLY IN EAST MALAYSIA JUST AS LAFARGE IS TO WEST MALAYSIA
CMSB IS ALSO THE TOP HOLDER OF KENANGA INVESTMENT BANK AT 25% IN TOP 30 SHARE HOLDERS
AND WITH THE TWIN RISE OF BRENT CRUDE OIL & RECOVERY OF CPO PRICES IN EAST MALAYSIA CMSB WILL BENEFIT ALOT
CMSB IS ALSO INTO CONSTRUCTION BUSINESS AND SUCCESSFULLY BIDDED FOR WORK PACKAGES FROM THE PAN BORNEO HIGHWAYS
AND IN LATEST BUDGET ALLOCATION FINANCE MINISTER LIM GUAN ENG SAID SABAH RECEIVED THE HIGHEST CASH ALLOCATION OVER RM5 BILLIONS WHILE SARAWAK RECEIVED OVER RM4 BILLIONS FOR DEVELOPMENT PROJECTS
ALL THESE POSITIVE CONTRIBUTING FACTORS WILL TURN AROUND THE FORTUNES OF CMSB
SEEING VERY INCREASINGLY BRIGHT PROSPECTS INSIDERS/DIRECTORS OF CMSB ARE NOW BUYING
| DATO SRI MAHMUD ABU BEKIR TAIB | 18-Sep-2019 | Acquired | 20,000 | 2.278 |
 |
| DATO SRI MAHMUD ABU BEKIR TAIB | 04-Sep-2019 | Acquired | 20,000 | 2.300 |
|
| DATO SRI MAHMUD ABU BEKIR TAIB | 30-Aug-2019 | Acquired | 75,000 | 2.360 |
|
| DATO SRI MAHMUD ABU BEKIR TAIB | 29-Aug-2019 | Acquired | 50,000 | 2.300 |
|
| DATO SRI MAHMUD ABU BEKIR TAIB | 28-Aug-2019 | Acquired | 100,000 | 2.325 |
| DATO SRI SULAIMAN ABDUL RAHMAN TAIB | 29-Oct-2019 | Acquired |
130,000 |
BEST REGARDS
Calvin Tan Research
Singapore
Please nuy or sell after doing your own due diligence
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Discussions
1 person likes this. Showing 8 of 8 comments
Pang72
Fintec as well as Netx and Cmsb are all undervalue
Cmsb has a long term advantage by virtue of 2 monopolies
1. Major cement player in East Malaysia with few competitors. Future supply to modernising Brunei.
Also Indonesia shifting its capital to kalimantan will see lots of demand for cement
2. Sacofa has a monopoly in Telco towers for broadband transmission. Especially all along the pan Borneo highway will all be wired up with fiber optic cables.
Cmsb also has the advantage of cheap hydro power. It was cheap hydro power that helped pm metal to be so competitive due to so cheap source of energy
2019-11-13 09:23
Cmsb too many businesses to control. We will see about this. Netx is living kurap....Someone let go soo many netx shares. All sor chais go and buy!!??
2019-11-13 13:35
@calvintaneng
I do agree that CMSB has monopoly in cement sector but it is limited only to Sarawak Region. However, currently cement sector is facing squeezed margin.
Secondly, Pan Borneo Highway is still far from completion, not to mention proper lighting along the highway. Therefore, the fiber optic thing is far from the vision.
This is just my two cents worth considering.
2019-11-13 13:40
Precisely Sarawak is still under construction
AND fiber towers are no up yet
These present wonderful room for expansion
Unlike dutchlady and f&n facing saturation. Govt taxing sugar is forcing F&n to go into milk production a very big way. This will eat into dlady margin
For cmsb it is a monopoly with vast potential for future expansion
I bought Lafarge at Rm2. 25 when I saw ecrl restarting
Suddenly Ytl took over Lafarge and then it was chased up to Rm4. 50 for a 100% upside
With so great potential ahead there is no telling some entity will also offer to take cbsb private
I think cmsb is worth more than Lafarge in intrinsic value
So I buy wherever and whenever I see value
2019-11-13 17:02
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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2019-11-12 15:06