Yesterday up 37sen. today up another 18sen at RM4.42 now 11am. Volumn still low at 1.1m. Look like there is no enough seller in the market....

...Expect recurring income growth btw 15% to 20%....
...KSL City occupancy rate >90% ....
...Look to buy more land....
...Concentrate mid range housing, demand always there ...
...upbeat long term bcos scarcity land across crossway...
...our sales have actually pickup as we are aggressive...
...in spite slowdown, KSL cont with pipeline of launch...
...looking into upto 30% div payout (recurring income)...

More clarity revealed by Chairman,as report by latest Weekly Edge(8-14Sep14).

Assume FY14 EPS 65sen. Current Mkt PE of 10X for mid cap property, should value KSL at RM6.50.

Europe slowdown bcos Ukraine Crisis. EU QE is coming, definity good for South East Asia share market which is booming.

Finally, back in broker house coverage. Kenanga give fair value RM6.63.


http://klse.i3investor.com/blogs/kenangaresearch/58195.jsp

Finally play strong catch up with other 2nd tie property stock like Brem. Brem NTA at RM2.80 and its price has move from last yr RM1 to now RM2.65. KSL NTA at RM3.50. With stronger mgt at KSL, KSL has good chance moving toward RM3.50 sooner.

KSL-W only at RM1.56, very low premium (conversion price RM1.60, expire 2 yrs time). Market seem price in a consolidation of mother price.

KSL now at RM3.10 are well support by NTA RM3.50 ie P/B only low at 0.88 time.

Airasia Indonesia have better prospect to turnaround soon as TigerAir today declare they will close their Indonesia operation, Mandala on 30/6/14. Airasia will benefit the most as Mandala is primary focus on international routes competing against Airasia.

Malaysia Aviation Turbulance Times:

Another story: Malindo Air catch fires. Return back safely today in Subang Airport.

http://www.nst.com.my/latest/terengganu-bound-malindo-air-plane-catches-fire-1.533217

Blame loss on lower property dvpt revenue, fair value investment loss (RM8.8m), rpgt RM (RM12m), another distorting factor is depreciation increase to RM8m during 4Q13. Full year 2013 dep only RM10.6m (2012:RM3.7m). This can be seen in Note 25 of the report.

The depreciation mostly like related to plant & machinery, might due to prior year/quarter underdepreciation or plant accelerating depreciation due to change of useful life usage estimate. 2012 Annual report Note 14, show P&M cost at RM20m at 31/12/12.

TF tweeted 'bloomberg report error. AA is declaring dividend.' Better wait & see.

Correction Time due to over optimisim expectation of 4Q13. KSL stock has a lot of potential. The current market are pricing the potential of mid cap property stock like EcoWorld, MKH, CHHB, Brem, to narrow the gap btw big & small cap. The pricing of potential would continue so long as Malaysia GDP register moderate grow amid low interest rate environment.

hit new low yesterday 98.5sen. Assuming DPU is 7.2sen, gross div yield would be 7.3%. Only small investor is interested, but not big fund like EPF as counter is small and illiquid.

Will Lion Boss Rusdi Kirana retired from Lion Air CEO position sooner or later? To be more involve in Politic Party PKB?

http://www.republika.co.id/berita/nasional/politik/14/02/08/n0neaf-pkb-sulsel-dukung-rusdi-tinggalkan-lion-air

Only Time Tell !!!

Will the price war with MAS end sooner or later? Khazanah want MAS improve yield!

http://www.btimes.com.my/Current_News/BTIMES/articles/MAS20/Article/

Hmmmmmmmmm........we shall see, folks!!

break RM2.30, postive mid-cap play sentiment. Lead by Country Height.

U.S. stocks rallied 292 point on Wednesday after the Federal Reserve announced a small reduction in its stimulus program but stressed interest rates would stay low for even longer than previously promised.

Will AA rebound strongly, with foreign investor overreacted to Fed tapering?

Malindo Air Hot News '.....More than a year into its partnership to form the country’s newest airline, Malindo Air, owners Indonesian billionaire Rusdi Kirana and National Aerospace Defence & Industries Bhd (Nadi) are said to have fallen out, with talk of a possible exit of Nadi from the business....'

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=201461:drama-at-malindo-air-fallout-between-top-owners-indonesian-billionaire-rusdi-malaysias-nadi?&Itemid=3#axzz2nbNTfUnN

PRice drop may due to poor sentiment of foreign selling heavily in Singapore REIT last week especially Industrial REIT. It is believe Spore Industrial property are overprice due to easing US Fed policy. Now Fed tapering is coming very soon. May be overreacted in Msia since Msia property is not cynical as Spore.

Yesterday only up 2 sen though release good result. KSL seem grossly undervalue on PE & NTA basis, it will need take longer time to reflect it value as Investor show lack of interest due to current softening property outlook. Big run of price can be only expected on improved property outlook.

Affin research house stated 'expect KSL FY14 earnings to weaken from its record FY13 net profit due to the softening in Johor property market as a result of the recent regulatory curbs on property speculation and foreigner purchase.'

cash balance in KSL improved to RM114m @ sep 13 from RM44m @ Dec12. May be this provide some hope on year end dividend.

On median & long term basis, KSL holding vast Iskandar land bank, will benefit the most from Spore investors. Spore investors is getting richer day to day due to their 'money minded' govt which have strong appetite favouring richs & talented investors to boost the City growth.

There is view that Kirana making big order is to get huge discount. Cheaper cost mean will easily get investor support for financing. Latest purchase 737Max & A320, both popular model support this view. All the order is done before Bali crash incidents. After the crash, indonesia biz seem going south. If plane got no where to park, should consider plans of lease out or sold out. However, lease or sold cannot be done if lease rate or selling price is not good. Judging what surronding lately news reported, the only thing can say is Good Luck to Lion Air.

Financer will come as long as your plane is popular type like A320 or 737-800 boz of good resale value or re-lease and cheaper maintance cost. Not 737-900ER type operated by LionAir.

If look at Airasia account, back to envelope calculation indicate downpayment is far less than 5% discount price, may be 2%-3% for booking the slots.

Talk about 10-20yr later about lion air? I think too long. Lion Air indonesia operation is doing badly lately. When an airline in trouble, first thing they do is to default lease payment. Will this happen sooner or later, just watch out lor.

How do Lion air service 230 planes, Sydney morning herald asks, how about 1000 planes?

The article may not have a complete answers. The following are extracted from an online airline forumers, which may have a more complete answer to funding: New Innovative Financing, Always look for Financers.

....Funding? All you need is funding to get the order going, like 5% to get the slots. The US EXIM Bank then guarantees the order. The leasing companies then take over for the rest. So...

1. Discount pricing for the bulk order.
2. Pay 5% (of the discounted price) now, to secure the production slots for the order, and this can be paid by someone else (ie: financed) on behalf of Lion Air.
3. Pay the Pre-Delivery Payments about 24-12 months out before the aircraft is delivered, this can be financed (either on behalf of Lion Air, or on behalf of the aircraft), and ranges from 20-50% of the discounted price.
4. Pay the remaining amount (25% to 55%) on delivery. Either the financiers pay for this, or the airline pays for that amount then immediately sells it and lease it back (depends on who paid for #2 & #3).

So, for every aircraft, what Lion needs to come up with is 5% now for the bulk order... and just make sure it pays the monthly dues from "as little as 2 years out" to the amount of leasing 1/4 or 1/2 an aircraft, then lease the aircraft fully once it gets delivered. (and it seems they're not short of willing investors for the aircraft through private placements either).

Remember Lion converted several 739ERs to 738s due to financing reason (mainly because there was worries about the resale values of the 739ERs hence raising the financing costs).

Numbers appeared much better than market expectation. At RM2.51 may be near to bottom out. Able contain the damage done by MAS & Malindo irrational low fares to minimum.

Will the 6% GST effective in April 2015 impose on domestic flights? Let see what CIMB said.

http://klse.i3investor.com/blogs/cimbresearchklse/39355.jsp

Nomore BB news. BB could be in Indonesia,very busy delivering the aircraft tyre to Indo from overseas. Lion Air last week flight delay again due to shortage of tyres.

http://www.thejakartapost.com/news/2013/10/19/lion-air-admits-negligence-caused-flight-delays.html

Another news, Thai Lion to launch end 2014.

http://www.bangkokpost.com/business/aviation/375563/thai-lion-prepared-to-roar-at-budget-carriers

Hmmmmmm! A weaker Lion is it mean a stronger AA? Really food for Thought...... .Definitely, a weaker lion is not capable to attack bull or bear. So BB is safe to play around with lion!

Do not under estimate the power of BB. AA up is because BB did not posting!!

BB is busy now. Counting the profit. Recalling some share buy at 262 and some sell at 262. It is win-win stretegy. Up win, down also win. ...... lol

Good Morning, folks! Swamy kid have doing posting in Bahasa Indonesia lately. This is good news! What it mean is he must be reading those bahasa indonesia online news to update himself. Lion caught the indonesia media heavy coverage lately for the wrong reason of bad services like frequent flight delays, passager open emergency exit, passage hold lion staff as hostage, waves of pilot resign, Lion Airport bus got fire etc......

Is this mean Lion Air empire will burst soon or just slowy slowy leaking air bit by bit only........or biz as usual? Is 2.62 is good entry point or exit point, really food for thought.....?

TA Securities provide an update report on AA indonesia on 24 Sep. Key takeaways from the Meeting with AA Indo management are as follows:
i) IAA is expected to maintain its pole position in the international segment;
ii) Its domestic market share is expected to hit 7% by end 2013
from 5% as at 2Q13;
iii) It is looking to close up the margin gap with MAA and TAA, and
iv) The proposed IPO plan could experience further delays.

BB, What to know why TA believe the AAI IPO would further delay, please refer below for full report.

http://www.bursamalaysia.com/market/listed-companies/research-repository/research-reports

Harimau kekekekekeke.. Must be hungry already. Hari Hari Mau makan. BB, please cabut cepat balik to yr cave! Bull or Bear will be target of harimau. AA is up now, you are not suppose out of cave and play play for funs.

BB hide in the dark cave today. Posting some many spaculative Fed tapering postings for the past weeks. Now he just realise that there is no tapering from Fed due to soft US economy outlook.

Price up due to spillover effect from Johor base property player Focul Aim (FA), to be take over by SP Setia Son. FA now trade at RM1.75, NetAsset RM1.20, P/B=1.45. KSL trade at RM2.14, NA RM3.16. P/B=0.67 only!

President Barack Obama said today Russia’s bid to get Syria to surrender its chemical weapons is a “potentially positive development” that could avert a U.S. strike, while expressing skepticism about whether the embattled regime would follow through.

Hmmmmmm.......!! Will this be a pratical solution to Syria Crisis?

So how now, folks?

India Aviation News. Chennei based Spicejet heading Kingfisher way?

Chennai, Aug 30 : .... SpiceJet seems to be heading the Kingfisher way as AAI (Airport Authority of India) has decided to put the carrier on cash-and-carry basis for using the airport facilities across India........

http://truthdive.com/2013/08/30/spicejet-heading-the-kingfisher-way.html

The Happy party still on. 2Q13 result above expectation. Annouce special div 30sen. Total interim div is 40sen less tax.

Read newspaper lately, MAS now dumping biz class fares. Fuel price up already, cannot forever dump economy fares.

Malindo also did not cancel flight so frequent lately. Must be already gotten funding from parents.

In AA 2Q13 Press Release it state the following:

Indonesia AirAsia (“IAA”) posted another profitable quarter with revenue up by 42% to IDR1,398.23 billion from IDR986.52 billion last year. Operating profit saw a 13% increase to IDR87.66 billion from IDR77.65 billion reported during the same period last year. IAA’s 2Q13 profit after tax was IDR51.66 billion – up 72% y-o-y. IAA’s CEO, Dharmadi said “The impressive jump in terms of revenue was attributed to the 3% y-o-y increase in average fare at IDR576,507 and the 29% increase in ancillary income per passenger at IDR151,040 with the highest contributor being baggage. The 33% increase in the number of passengers carried was supported by the 32% increase in capacity translated to a load factor of 79% (up 1 ppt y-o-y). We also saw a good 11% increase in RASK at IDR486.71, while the increase in CASK which stood at IDR456.19 was mainly due to aircraft operating lease expense as we took in 6 additional aircraft y-o-y, and led to the increase in staff cost which was also due to salary increment for pilots and engineers, and minimum wage policy adjustment set by the government.”

With revenue up at 42%!!, It is mean AAI gain huge ground at the expense of Lion Air?

BB, you better do not stay too close to Lion. Bull/Bear will become lion pray once lion cannot find food! Take care!!

THe Truth has been revealed. THe drop of AA yield are caused mainly by MAS aggressive capacity addition (local & international) of 20% yoy on 2Q13. Malindo impact are not as big as MAS. For further details, pls refer to below CIMB FULL PDF Report.

http://klse.i3investor.com/blogs/cimbresearchklse/35271.jsp

In another CIMB report dd 21 Aug 'MAS - illusive profit', it state the effect of aggressive capacity addition has cause MAS’s 2Q13 core net loss of RM213m was worse than 2Q12’s RM181m loss despite lower oil prices. No turnaround expected for MAS in next few years.

Indonesia not enough food, Lion has to come to Malaysia looking for bull or bear. May be disappointed as bull or bear only found in Northern country. Lion may find BB only in Malaysia. hehehehe!!!!

speculative driven. Those want to buy MAS must think twice about their strong Union.

BB will get refueled and be energetic again after reading the following latest news titled 'CAAP suspends Zest Air for failing flight standards'.

http://www.gmanetwork.com/news/story/322367/economy/caap-suspends-zest-air-for-failing-flight-standards

Keeping a pure bear or pure bull as a pet is definitely very dangerous..... However keeping a mix of both, then we are not so sure lor...

Surprising morning close @ RM5.81, near all year high. Any good news? could its be more dividend soon??

Folk, doubt the up coming 2Q13 result will be extra outstanding as the controlling shareholder, Tune Air & TF, has disposal in total 2.6mil share at RM3.18 on 7/8/13. The recent weak ringgit & surge of oil price will impact 3Q13 though real threat from Malindo is receding.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1374609

BB, careful now! cows being attacked by Lion lately! Bull or bear may be its next target. Be Alert!

Folk, Malindo revealed lately another unique strategy, this time with baggage allowance 35kg for economy class (cannot believe! even more than Emirate of 30kg) for new route to Dharka with one way promotional fare as low as RM399. AA pull out Dharka route few year ago, can Malindo beat the odd?

Let get an inside of the competition level of this route from an article ‘price war on Dhaka-KL route’ dated 2/8/13 , which state as below:

...... Regent Air recently entered the route, a lucrative one for airlines due to the presence of around seven lakh Bangladeshi expatriates in Malaysia. The airline set Tk 27,500 as the starting fare for a round trip, which prompted United Airways to cut its fare to Tk 26,750 from Tk 30,810. And from August 28, Malindo Air, a Malaysia-based airline, is joining the rat race with a round trip fare of Tk21,000. Around 1,600 passengers can be carried from Dhaka to Kuala Lumpur daily then by the carriers. Biman Bangladesh Airlines and Malaysian Airlines, too, operate on the route; round trips with them cost Tk 35,230 and Tk 33,000 respectively. Meanwhile, Biman has offered two tickets for the price of one for roundtrips on the route, as part of a promotion scheme for Eid-ul-Fitr. “We are aware of the increased flights to Kuala Lumpur — and the reduced fares. Biman will, of course, be adjusting its fares too,” said Kevin Steele, managing director of Biman, adding that competition is good for the customers and is “not an issue” for the carrier. But Tasbirul Ahmed Choudhury, managing director of United Airways, said the price competition is not healthy for long-term viability. “It would be almost impossible to survive at such low rates for the local airlines.” ......

With already 4 existing players... ..Oohps! the fate of Malindo in this route already known!

Folk, Always remember Sun Tzi Art of War strategy ‘By planning ahead, we already know the outcome b4 the war started’!

Folk, Be careful! do not take the target price of CIMB & RHB for granted. CIMB is the principal advisor and RHB is underwriters of AAX IPO. They may not be 100% indepedant in their research.

There is no direct flight between Wuhan & KL, how can you consider fligt D7 0393 is cancelled?

Folk, There you go! Remember, never, never, never 'hate' a stock forever by repeating your old postings!!

Folk, Malinnndo is going to launch Dharka Fight on 28 Aug. Until today, the website FRONT PAGE did not mention about Dharka destination. A search of fares, indicate oneway promtional fare RM399 on 28 Aug. Not really a very cheap fare.

Will this route share the same fate of Tawau route, become an adhoc basis route?

Only time will tell!!!.

The New CEO is internally promoted within the firm. He was the head of firm's property management div. Hope he will meet with broker houses more frequently for the preparation of broker house's investment research report (now apparently none so far).

Another news, LRT delay again. This time delay 18 month from 2014 to 2016. LRT delay mean occupancy in Summit Office will remain low. Summit Mall renovation may have to deferred again. Traffic jam continue due to construction of LRT.

Summit Mall is in fact is a 2nd or 3rd grade mall since there are so many strate titles, though it location is good. Traffic jam in Summit can be resolved in the future, but not the strata title. Mall with so many strata title has handicap the management to reconfigure the retail spaces in an effective way.

HariRaya is near... Less flights cancellation expected during this period. Some School even are off from next monday onward...with 2 week school holiday. ...

No sure the details of rulings. But based on what media reported, there is AOC & Biz licence in Msia.

Folk, Malindo announced next destination, Dharka launch on 28 Aug (about 1 month from now), while AAX launch Adelaide is 30 Oct (3 mth). Is 1 month notice adequate enough?

Hmmmmmmmmmmmm! Malindo is really a very different animals. Always creating headlines ...

Folk, want to know what is the implication of airline's chronic delay of flights? Why not refer to below extraction from Jakarta Post dd 30/7/13 on the Indonesia Pacific Royale Airline:

...... Besides the violation of maximum flying hours, Djoko said airlines that violated flight schedules or those reported for chronic delays could see their Air Operating Certificate revoked. “This happened to Pacific Royale, which last week saw its AOC revoked by us because it did not fly as scheduled,” he said.“They will have to request a new AOC to be able to fly again, since their business license is still valid.” .......

http://www.thejakartaglobe.com/news/airlines-to-endure-tougher-penalties-in-push-for-safety/