brilliant

All the while this shares 76.5 million is acquired from IWH. Used to be JV between LKH and Johor State

Currency Malaysian Ringgit (MYR)
Date interest acquired 30 Dec 2015
No of securities 76,500,000
Circumstances by reason of which Securities Holder has interest
Dividend in species to the shareholders of Iskandar Waterfront Holdings Sdn Bhd ("IWH") and all the entitlement of the shareholders were distributed to Serumpun Abadi Sdn Bhd ("SA").

SA is a joint venture company between Credence Resources Sdn Bhd and Kumpulan Prasarana Rakyat Johor Sdn Bhd with the same proportion of shareholdings as in IWH.

to me it does not matter, at 50 sen or 40 sen is still the same. maybe 40 sen I will buy more. so no warrant conversion is better for me, less dilution

Maybe...why he wants to do this? Ekovest does not need new money?

Aiyo...why botak so mean one kah...recyle warrant...no lah...alternatively can try not to allow warrant holder to convert..later push down price below 48sen...with this bad news..like this more likely lah..lol...aiyoyo...kikiki

most tycoons have anchor company, such like Usaha Tegas for Ananda, Bcorp for VT, Guoco for Quek, IOI Corp for Lee Shin Cheng, YTL Corp etc. etc. LKH does not have a real anchor
He has tried to consolidate once, with IWCITY unsuccessful. This is another attempt on another company

not the right thing to do, but selling to pick up

This stock will benefit from the trade war

I believe LKH is doing recycling. For the warrants

I know what this writer is trying to say. Just say it. Does not have to be "loh soh". There is huge risks now especially for the followers who went in late stages.

For this kind of businessman, it is not just trying proof someone wrong or principal. He is onto various businesses. The track record is upmost important. Now market will see how he solves this problem. The one in India cannot be solved and it is in another country. Bumi's problem can be solved.

It is not ego, for him he will not let go when he feels that he lets his shareholders down. At the very least he will try to resolve the problem. If he is unable to then maybe there will be other options. O&G is the first business where he started.
Unfortunately there are challenges. I think the Downturn did not disappoint him that much. The Kraken project is there to be provided. It is one of the largest but must be complicated.

What Icon is saying is absolutely correct. For AK he definitely will be extremely despair for Bumi to be in this position. AK is not just any tycoon. His category is similar to like Robert Kuok, Quek. The fault lies in the kraken project. And it is no surprise that the CEO us being let go.

On top of that the main raw material is a very expensive ingredient which is subject to change on an immediate basis and affects bottomline on a huge basis, due to the fact that it is 70%+ of entire AirAsia costs, its major expenses.This is also a nasty surprise, should fuel prices spike suddenly. These 2 costs are not something that you can pass through to the customer.

Philip,
May I know how did the70% come about?

https://www.theguardian.com/business/2019/feb/01/trump-hails-china-trade-talks-progress-and-says-he-will-meet-xi-jinping-soon

At the end of two days of high-level talks next door to the White House, Liu told Trump China would make a new, immediate commitment to increase soybean purchases. An administration official later clarified the amount as a total of 5m tonnes, in effect doubling the amount bought by China since resuming limited purchases in December.

I did not say using palm oil is bad. And Soy does not cause swine flu

I personally do not like Sapura because to me the sincerity is not there, his salary (RM70 million a year) and the support that they get from some of the local funds. I tend to shy away from companies like this.

That's my personal opinion.

If one looks at the report by CIMB below, it is quite extensive. It is using Sum of Parts valuation some level of discount. To me, it is sufficient, for how it values the company, look at page 55.

https://www.cimbpreferred.com.my/content/dam/cimb-preferred/pdf/daily-brief/August2018/Msia%20Sect.pdf

Again, I am putting a higher perspective on valuation as Sum of Parts does not look at the intangibles which to me Bumi Armada is quite strong.
Again, I feel that as in past experiences, investors are very risk averse over companies with debt. Previously, there was a similar fear over Airasia. Look at where Airasia is today in its balance sheet. Today, Bumi Armada's case is slightly more severe than Airasia, but it has many options where it can solve its short term gearing and liquidity issue.

sorry wrong one.

https://brokingrfs.cimb.com/2ImBfcFsa3Dcr_pUApFhShEga9foNYjyRqMqb7cs_pkM7XDXFVLBneq1FhbZFOcOUzzDQxoq-8opFE7J0.pdf

One read through the original analysis, this is very objective and detailed analysis, I agree that the fear of default could be too much

https://brokingrfs.cimb.com/N6MA70cFgqoaJzzMws9EC2jPdvnlvC6gWPq3sW-MjouSYgzwfKm56V1_uZDsV8biPrU183u1FswqTj3c0.pdf

yesterday's announcement on JV for Armada Cabaca was a positive announcement. It is one of the process to derisk as well as deleverage. Armada Cabaca is one of the largest project for Bumi Armada, they are getting a partner to reduce the cashflow needs. This is what Bumi Armada meant by not needing to raise funds from placements.

UOBKH: Bumi Armada (BAB MK/ SELL - Downgrade/ RM0.16/ TP: RM0.10)
OMS Now A Key De-rating Catalyst And Earnings Drag
Analyst: Ho Meng Tel: +603 2147 1987
Based on the lack of announcements on subsea work replenishments, OMS is now a major fundamental drag. OMS losses will widen. Given the worsening EBITDA outlook for OMS, BAB appears expensive at 10x EV/EBITDA vs peers. We assume a significant loan base is linked to OMS, hence any potential refinancing will not be cause for relief. Based on impairment risks (subsea), EBITDA downgrades and cash crunch, we downgrade BAB to SELL and target price to RM0.10.
Please peruse today's report link below:-
Bumi Armada (BAB MK/SELL/RM0.16/Target: RM0.10)

WHAT’S NEW
· OMS the new downside risk. Looking beyond stable FPSO earnings and even if BAB manages to secure a relief on the RM1.5b loan refinancing, we believe OMS appears as the key downside risk which was not properly guided by management up till recently. The subsea vessels which support profits for OMS had gradually been out of job, with Installer finished in Jun 2018 and Constructor recently in Oct 18.
· There is clearly no announcement on 2019 job scope for subsea vessels. The premise of our downgrade is assuming worst-case non-utilisation of the subsea vessels given the lack of announcements. Typically, these subsea vessels (catered for the Caspian Sea) do not work during the winter season, but 4Q could record profits from the procurement phase in preparation for works in the following year. However in this case, we now assume there are no works in future and assume a worst-case scenario whereby OMS losses to widen with subsea non-utilisation from 4Q18 to early 2020.
· By studying the loan profile, we understand that about 50-60% of the RM11b loan base are project loans for FPSOs, with the remainder of ~RM5.3b being unsecured corporate debt. We believe these were incurred to fund OMS expansion in the early years. Recap that BAB has repaid RM0.5b, with RM1.5b remaining unsecured corporate loans whereby management guided that they will strive to reach a refinancing solution within 1Q19. Even with a cash balance of ~RM1b, it is uncertain if the cash can sustain the group in the next 2 year horizon (assuming no loan extension) when the FCF generation is still deteriorating.
· We cute earnings forecasts by 10-19%. Our 2019F EBITDA is adjusted to RM1b base (2017: RM1.2b) vs consensus forecast of RM1.3b. Given its burgeoning loans and our projection of more downgrade risks to consensus forecasts for EBITDA, BAB is not cheap trading at 10x forward EV/EBITDA. In comparison, global FPSO and OSV players are trading within the 6-10x EV/EBITDA range. Its direct local peer Yinson, is trading at 8-9x EV/EBITDA.

ACTION:
· Lower target price to RM0.10 (from RM0.41). Our SOTP target price implies 2x P/E and 0.1x 2019F P/B, which is at a discount to Yinson’s 18x forward P/E. However, it implies 9x EV/EBITDA which is comparable to Yinson’s and that of other FPSO and OSV peers. The DCF for FPSO is valued at RM0.87/share. We lowered our OMS valuation from RM0.10/share to RM0.07/share to reflect the potential subsea impairment risk. Also, we deduct ~RM5b of net debt from our SOTP assumption, which we assume is tied to the troubled OMS segment.
· Downgrade to SELL (from BUY). Even though the group remains profit-generating and has likely stabilised its FPSO earnings, this itself is not sufficient as we now foresee further downside risk. Sentiment will shift to the fundamental drag from the OMS division, which has still not been adequately factored in by the market based on EBITDA forecasts. At the very least, the group must replenish OMS contracts (and return it to profitability) and resolve the uncertainties of loan refinancing to support upside catalysts for the stock.

http://www.intellecpoint.com/2018/12/airasia-india-is-not-pulling-back-from.html

hard to say, there are obviously short term weakness. yesterday's sale was based on very small volume only 0.15% of total stocks and dropped 10 sen

possible, but they cannot take away concessions without charging toll. One must remember that EPF is not government's money but people's money.

EPF has more assets than Khazanah by ratio of 7:1. Both are people's money.

Another fund which has funds is PNB. Similar, it is public's money.
They cannot and should not use people's money to take over toll and abolish it. In my mind, the compensation for PLUS is more than RM40 billion. Otherwise Abu Sahid would not offer it for RM36 billion last year. See below.

https://www.youtube.com/watch?v=fCYMmDzYEGo

By eliminating toll for PLUS, it will effect our EPF and Khazanah's fund.

https://www.thestar.com.my/business/business-news/2018/05/18/toll-dilemma/

as mentioned in the above article, to be correct the debt amount of bond which is outstanding for PLUS is actually RM30.2 billion. I wonder the government can pay this off even though it is not one off payment. On top of that maintenance is about RM1 billion per year.

The DAP government is way too eager to eliminate toll

http://www.freemalaysiatoday.com/category/nation/2018/04/03/mahathir-toll-charges-will-be-abolished-in-stages/

They need RM634 million

Jon, they can't raise enough funds

Paperplane, let's call it this investment is for Felicity's future.

Only problem is with the cash call, for those that has no fund will be stuck. But one can still sell the excess.

If WCEHB drops below 80 sen, the exercise structure has to be changed.

This exercise is a fair one for all investors with a tinge of creativeness and cheekiness.

If the company does a private placement, it will be even more unfair. This exercise calls for participation from all.

The fund raising is non-negotiable.

Basis of determining and justification for the conversion price of the RCULS
The RCULS will be issued at 100% of its nominal value. The conversion price of the RCULS for each conversion period (“Conversion Period”) will be determined and fixed by the Board, and announced by the Company at a later date (“Price-Fixing Date”) after the receipt of all relevant approvals for the Proposed Rights Issue but before the Entitlement Date.
The conversion price will be determined after taking into consideration, among others, the following:-
(i) the theoretical ex-rights price (“TERP”) of WCEHB Shares, calculated based on the five (5)-day volume weighted average market price (“VWAMP”) of WCEHB Shares immediately preceding the Price-Fixing Date;
(ii) the conversion price for each Conversion Period will be at a discount of at least 15% to the TERP;
(iii) the historical share price movement of WCEHB Shares;
(iv) the earnings potential of WCEHB and its subsidiary companies (“WCEHB Group”) as well as its 40% associate company, namely Radiant Pillar Sdn Bhd (“RPSB”); and
(v) the overall funding requirements of WCEHB Group over the next five (5) years.

Look at Item (ii) - conversion price will be at discount of at least 15%.

Jon

If I create another structure:

For every 12 shares owned, the rights is to purchase 5 RCULS at nominal value of RM1.00 and conversion price is RM1.68. No warrants.

Is there less dilution? No, it is similar.

It is same just that there is no sweetener (warrants).

The structure is much the same, whether more shares or less shares is the same. What WCE needs to have is to raise RM634.44 million as in Page 7 of the announcement. However structure it creates, it needs to raise that amount. In fact, through this it allows the group to raise 2 to 3 times in one exercise. 1st the 50 sen, 2nd the 34 sen and perhaps warrants.

Hi Vein82k6

If one does not want to subscribe, there is a period where you can sell the "excess" shares.

Of course, do not listen to me as I have caused many not to make money through this shares.

the sale of leasing arm from perspective of the buyer. i.e. BBAM
https://www.facebook.com/MalaysianInvest/posts/1611374048911073

He cannot see the difference between an operator against an asset owner. The leasing business is like an asset owner. Airasia - its main business is being a low costs airline operator. Being an airline operator or business, it will manage the number of planes it owns to keep its balance sheet healthy.

https://www.facebook.com/MalaysianInvest/posts/1604872266227918

Not a good quarter for Airasia. However to some extent should have been expected as it was impacted by Mount Agung's volcanic eruption during the quarter. On top of that, the heavy ramp up would have caused lower revenue per passenger as they have to lower the fares to attract customers to take up the newly introduced slots.

https://www.facebook.com/MalaysianInvest/posts/1603160223065789

Precisely

-----------------------------------------------------------------------

Bursa does not need a crisis to sell down. It is the gomen funds that engineer a sell down n after hitting a low, they buy back n we, the ikan bilis, also chase after the shares on seeing it rebounding. Gomen funds e.g. EPF ... survives using this method since they are the dominant force in Bursa. Retail n foreign funds make up only a small percentage.

What a load of BS, media is facing lots of challenges and they do not know what to do. Acquiring Rev does not change anything. If Rev Asia does not know how to make money, Media Prima does not know as well. Online media marketing is through Facebook, Google - it will not go through local channel. Even klse.i3investor is a bigger play than any of the traditional channels.

Hi Probability, your insight is very good, but you actually miss the gist of this article.
Also, I do not think Shell being a close second to Petronas will want to grow the retail segment too fast. In the retail side Shell is probably the largest at the moment. They will not want to outgrow Petronas. The race is actually for the 2nd and 3rd. I do not think a foreign player will want to outgrow the local supported incumbent too far. If one wants to operate well, operate within limits and do not get over noticed. This is business.
While Hengyuan can be a good refiner (yet to be really tested for a long period) - it is purely a refiner. At this moment, the crack for a refiner is good. One should be wary of buying at its highest margin period.
For retailing, look at PDB as a very good example, the government will never allow the retail to lose money. As for refinery, it is a different story. The input price is according to MOPS as well as output price for the refined oil. Shell buys from Hengyuan at MOPS.

The amount of venom being thrown to a person when shares plunge is really funny

nonsense

primary reason, Oldtown actually makes money from the transaction - smart move. But there are more than that.

The transaction is weird, MoneySiFU noticed it.

A very good article and very accurate, Keep it up!

Going down is a good thing.

There is a possibility that IJM may go bankrupt as it has taken a highway that is too difficult to complete. The land in the coastal is too soft for a highway to be built.
Nevermind that IJM has done many highways before, i.e. Besraya, NPE, India etc.

I think WCE will not have enough funds to complete the highway anyway as the cash level from the Balance Sheet is weak.

Please do sell, it has up too fast in a short period

If you think it is going to do you well over a period of 20-30 years, perhaps....