Traderman, I have to agree on you. Tomorrow open 0.180. Your best quote of 2017

http://www.theborneopost.com/2016/10/19/vivocom-entry-into-affordable-housing-will-support-earnings/

18 October 2016 | Corporate Update MIDF Research Report
Vivocom International Holdings Berhad Entry into Affordable Housing
INVESTMENT HIGHLIGHTS
• We recently visited Mr. Choo Seng Choon, Executive Director of Vivocom International Holdings (VIHB)
• The visit unveiled compelling risk/reward narrative
• FY16/FY17 earnings estimates intact supported by growing
and diversified orderbook
• We maintain our BUY recommendation with a TP of RM0.63
The key takeaways from the visit are as follow:
Balance sheet strength. We believe that VIHB presents a compelling risk/reward opportunity amidst the pressured share price. Its orderbook of RM3.5bn is at all time high or approximately 48-month orderbook backlog (38x FY15 construction revenue cover which is the highest in our coverage). Premised on its FY15 working capital/net income cover of 12.1x and diligent FY15 working capital/orderbook cover of 0.03x, we view that VIHB’s balance sheet fundamental strength is set to outweigh the risk of heavy orderbook execution.
Diversifying project portfolio. VIHB management aspires to diversify its project portfolio and improves its working capital (Figure 1) via affordable housing projects. While an affordable housing project generally provides lower single-digit margin for contractors, nonetheless it generates orderbook backlog for longer-term as well as tighter contractual obligations. This would help to match VIHB’s total construction revenue and earnings with cash inflows from predictable progress billings.
Entry into affordable housing segment will support earnings.
The recently clinched Kinta Valley and Tronoh affordable housing projects are crucial as a learning curve to provide experience in value engineering, traction of gaining tender advantage and wide content application of industrialised building system (IBS) in constructing affordable housing units. VIHB is upbeat especially in East Coast of Malaysia where the demand of affordable housing exceeds supply. VIHB’s management has indicated an expanding IBS content for building construction citing cost advantage as well as time savings as primary drivers.
FY16/FY17 earnings estimates intact. Altogether, we reiterate our earnings projections which are underpinned by a growing orderbook of c.15.0% which will swell to more than RM4.0bn based on affordable housing projects that VIHB has tendered.Ready demand for affordable housing in Perak and East Coast of Peninsular Malaysia. VIHB’s interest in affordable housing segment comes as no surprise as the State Government of Perak has announced in January 2016, the rolling out of 10,000 units of affordable housing by 2018. The Perak Housing Department currently has a waiting list of more than 12,000 applicants for its affordable housing schemes. Another example is Terengganu, which has a waiting list of 56,000 applicants since end of 2015.
Recommendation. We reaffirm our BUY recommendation with a TP of RM0.63 per share based on FY17 sum-of- parts (SOP) methodology on an implied prospective PER of 13x which is on the lower end of our small to mid-cap construction

VIHB is upbeat especially in East Coast of Malaysia where the demand of affordable housing exceeds supply. VIHB’s management has indicated an expanding IBS content for building construction citing cost advantage as well as time savings as primary drivers.

Ready demand for affordable housing in Perak and East Coast of Peninsular Malaysia. VIHB’s interest in affordable housing segment comes as no surprise as the State Government of Perak has announced in January 2016, the rolling out of 10,000 units of affordable housing by 2018. The Perak Housing Department currently has a waiting list of more than 12,000 applicants for its affordable housing schemes. Another example is Terengganu, which has a waiting list of 56,000 applicants since end of 2015.

Letter of Award (“LOA”) from Udaran Sdn. Bhd. for the appointment as Main Contractor for the construction of mixed development comprising of 2-storeys terrace houses and commercial buildings. The contract amount is RM52,000,000 (Ringgit Malaysia Fifty Two Million). This project shall commence upon site possession and shall be completed within twenty-four (24) months from the date of commencement. The project is located at Mukim Pulau Kerengga, Daerah Marang, Terengganu Darul Iman, untuk Tetuan Lembaga Tabung Amanah Warisan Negeri Terengganu (“Project 2”)

I think the midf report has made a hint earlier about east coast project and kuala terengganu affording housing segment projects has come true. Hope more more projects awards soon

Good start of the year 2017! Let be positive !

Lim Sc, u better sold now. Plenty buyer waiting. Just click one button. Don't act as innocents trader. Nobody force your hand to buy or sell. If u think u get cheated on share why still come around to trade.

Good article with so much details

Now if u look at daily trading pattern, it is more like collection mode. Big buyer sell all share in hand and let it drop to current price. If not drop further, buy n keep longer term will be good move.

Vivavivo2017, you have good point. Coming q4 profits easily push Vivocom to eps 0.210 and above. Based on last 4q Pe is only 7.86. Almost two month price stagnant at 0.160. It's only matter when new projects announcement will be out. Stay tuned.

Mr OTB, there is always no ending when posting public forum. Result prove everything. Let move on and don't affected by such comments. Just participate as qualify participant and let us also study your picks in 2017 and learn together. Tq

Tan KW, appreciate your hardwork. At first I thought we need to created ourself. Tq

I believe there is no perfect stock pick unless you are dynamic to change your pick when you see opportunity. Who ever has pick Ekovest, Mycron, Gamuda from begining till end are the true winner

Venfx, very good pick. All the best!

Very good advise OTB. Tq

Dear Tan KW,

My 2017 stock pick as follows:-
1) Krono - 20%
2) Vivocom - 20%
3) Dnex- 20%
4) Solutn - 20%
5) opensys - 19%

Thank you.
CKNYAM

Tq richardcslim bro.

I wish to see what comment u will change when share price go up.

Kfm and perisai almost pn17 still can goreng and up. So don't even compare with vivo.

Every month got crisis, brexit, us election, ringgit fall, fed hike etc. so u better put your money in bank and don't come here to comment. If u don't own a single share here, don't even talk empty in forum.

Tony private placement was 1.88 per share. He won't let it drop too lost. Now margin of safety is very good with current PE and EPS

Collection money always not easy in construction sector, but at least cash in hand has improve dramatically. Secondly, Vivocom is still practicing low borrowing not like PN17 company. Private placement also been delay show them are not desperate on funding. Vivocom is a subcontractor and main contractor but not developer. They don't need invest on buying land with high borrowing. The share price drop do not reflect the actual business grow they are transforming. Only short term trader will worry current price.

1 Pavilion Hilltop, Mont Kiara fr CRCC 34,762,000.00
Marinox sky villa penang fr CRCC 120,000,000.00
1 Gateway Klang. Selangor phase 1 FR CRCC 132,000,000.00
2 Rumah Selangorku Bdr Ulu Klang fr CRCC 116,400,000.00
3 1 Gateway Klang, Selangor phase 2 fr CRCC 195,525,000.00
4 Neata Aluminium old orderbook as September 2016 351,753,000.00
5 Teras Millenium to Instacom for Telco Hub sites 29,000,000.00
6 Jointly Develop Kharisma Port Indonesia
7 Desa Tasik Project fr Coneff Corp (2 block Commercial) 240,418,000.00
8 Desa Tasik Project fr Coneff Corp (24 storeys Condo ) 230,000,000.00
9 PBT Engineering for Third Avenue Cyberjaya to Neata 22,500,000.00
10 V-Development fr Gated Housing Bdr Ulu Klang 15,000,000.00
11
12 De Facto Wilayah Sultan Azlan Shah Hulu Kinta Project 160,000,000.00
13 Goldenhill Accenture Genting Sempah pahang project 46,000,000.00
14 Kiara5 Development Kg Kayu Ara Sg buloh 25,000,000.00
15 Lim Hoo Seng Construction Lorong stonor project to Neata 12,800,000.00
16 Seni perspek Bandar tasik Amanjaya Daerah kinta 756,000,000.00
17 Green Venture Wilayah Chepor Project 18storeys Apartment 100,000,000.00
18 Dazamega Mukim Hulu Kinta Project 600,000,000.00

Total Project Received that annouced in BursaMalaysia 3,187,158,000.00

Up to last 4quarter still making profit, why would the price will drop further . Are Vivocom is PN17 or run out of orderbook ? the current share price is just been pressing down by operator.

Sometime a rotten egg will spoil the basket golden eggs. I do agree I-Power to Instacom period, this company has not been managed well and director has been manipulating. But since Vivocom taken over on November 2015, many changes and better business platform has been implemented to transform a money losses company to profitable. Due to share base are huge, Vivocom easy been targeted by syndicate. But this does not reflect the good practice BOD try to move the company main board. Hope soon the share price should go back to its actual fair value price.

Q4 revenue will be highest among other quarters as it was the cycle period among all the projects start kick in. If Vivocom targeted RM500mil revenue for FYE 2016, this quarter 4 must hits RM150mil. Will additional nett profits RM20mil, total nett profits fye 2016 is Rm70mil equal to EPS 2.2 cents.

Those who lost hope, can always sell now. Cause someone will sapu your share. Projects announcement anticipate will be around corner. Don't ask me date. As I will keep collect at low price. This is not a buy or sell call.

Investor001, good highlighted on HOA. In fact I had been reminded everyone before. In further extent, I went to clarify with Vivocom official staff about all HOA contracts. The answer is same as above. All HOA remain order books. Unless there is announcement of termination of HOA otherwise it remain as orderbook. Actually now HOA remaining only on Perak state projects. As you can see in perak mb website they also annouced all the project with Vivocom officially. .

ROE should be 16. Above PE and EPS is based on last four quarter. I believe coming q4 will improve further.

PE Now 7.58. Eps 2.16. It still undervalue for construction company.

Instacom average revenue a year used to be RM100mil. But now Vivocom as at Q3 2016, revenue has gone up RM300mil with orderbook close to RM3bil. So judge yourself, the value that paying to neata is justified or not. It will keep them busy till 2018. If you accepted the bonus issue share, you have to prepare to hold longer to appreciate it value. A lot of negative emotion surrounding Vivocom because it's share price drop. But what if share price rise up again, and will you write acquisition Neata is a good bargain and turnaround to the company?

Those project already announced, I had excluded project like Genting sempah, Amanjaya, Chepor green venture, meru height de facto and etc.

For a reminder, during the last AGM on April 2016, there is a paper handout of order in pipeline. Attached below was the list.
1) Penang Major Road & Tunnel - RM350mil
2) VTower Subang Hitech - RM 300mil
3) KKWaterfront - Coneff Development- RM500mil
4) M101 Skywheel - RM500mil
5) meru21 DAman Resisdence Condo - RM150mil
6) Tropic City by Regal International - RM250mil
7) V Plaza Balakong - RM23mil
8) GEmas Johor Double Track Railway - Rm800mil

Those project already announced, I had excluded like Genting sempah, Amanjaya, Chepor green venture, meru height de facto and etc.

Merry Christmas !

Two weeks constantly stable at 0.165 to 0.170, let hope for correction soon. I more concern when could be announcement of new project. Hope the big fish collect enough and start push.

Go bury yourself in KFM

https://markets.ft.com/data/equities/tearsheet/forecasts?s=VIVOCOM:KLS

Some positive signal from TA

Secondly, a company making good revenue does not guarantee a share price always go up. How about FGV, Goodway, Mextex, Johan? This all counter not making good revenue but share price still go up. Does this counter meaning good to you as well. Everything about timing and depend when fund manager want to RERating the share. And of course got news to goreng.

gamer, your comments is very fair. If writer don't understand, go direct their office and get more informations from the right person. See at your own eye the actual expansion in Vivocom office and business growth. Your article was writing based on emotion to the share price drop , so the conclusion everything is bad. If the Vivocom share price go up later, then what another story u want to create. Though of days.

Short term rebound, cannot see a bullish rebounds, if get pass 0.750 would be better

Don't bother HSR first , still long way

http://www.bfm.my/bg-choo-seng-choon-constructing-changes-vivocom

Answer to u

Aikkk where is the JAY sifu said PESONA not worth this value now 0.625. Congrat PESONA. Even will go correction later but still give investor make money. Mission accomplished

Lim SC, CRCC has been maincon for this even BUCG has withdraw. BUCG only has small portion investment there only. U supposed to worry when Vivocom get the penang tunnel project package. Old new regard BUCG.

Congrat those bought at 0.700 below.

Cruz, yes Vivocom has to touch 0.190 to widening the ma line. Then long stronger bull uptrend.

Good guys, love to see u guys around. Let hope it break 0.160 in order to show sign of reversal. They must hit 0.190 to firm up reversal uptrend

Goodboy u collect any 0.240 today?

Good boy as ur wish bro. Just buy at low. Don't chase at high

I m sure u can collect at 0.240