GREAT REIT NEWS!! Cannot believe! The dividend declared (3.43sen) is more than its income (2.93sen). This must be thank to those smart accountant come with new ideas of 'creative accounting'. In the past, manager fee is is treated as expenses. Now since the manager fee is paid in IGBReit share unit, manager fee expenses would be distribute as dividend!

Really it is great dream come true for many poeple! We can spend more than we earn, isnt it a very good new!

Anyway, It remain to see whehter other Reit would follow IGBReit to distribute manager fee expenses as dividend.

Very high cancellation rate for Malindo Flight. These type of incident only can happened in Malaysia but not Australia, though we have a Trade & Consumer Minister. In Austalia there are law to protect the right of customer and ensure no misleading advertisement.

Malindo Air now turn their focus on ATR biz in Subang Skypark. Due to limited slots and strategy location of Skypark, Turbo ATR biz can be a profitable in median term.

In another new. Malindo Air’s CEO Chandan Rama Murti said the maiden Darka flight will be on Aug 28. “We will carry passengers with a brand new Boeing 777 aircraft. Initially, we will operate on the Dhaka-Kuala Lumpur route on a daily basis,” he said at the inaugural ceremony in Dhaka on Sunday.

Malindo may probably is waiting money from the Lion. Heavily doubt the other shareholder, NADI, will contribute any money further. Though we do not know the exact loss for Malindo, we are able to do some guessing work by making reference on other source of information. Let look at the following 2 statistic of other startup airline:

1. Airasia Phillippine start with 2 plane thorughout whole year 2012, and incurred a total 12 month loss of RM93m.

2. Mandala Tiger start operating from April 2012 with initial 3 planes. CAPA estimate loss about RM105mil (USD34m) for the first 6 month based on Tiger Air Account.

Based on the above reference, it can reliably estimate that Malindo Air 4 month (Apr-July) loss should exceed RM40mil since Malindo has 4 A737-900 and some Turbo ATR. Bear in mind that operation cost in Malaysia is higher and Airasia has intentionally increase domestic route frequency massively to fight against Malindo.

Malindo want to fly to India for non stop 5 to 6 hours range flight, better get enough fundings before start the flight! The loss would be even higher since those flight are non-stop and no India citizen would book Malindo since Malindo has no branding in India. If Malindo simply cancel flight, which India travel agent will book Malindo again? Malindo probably now are looking into all these issue. And as such, Dhaka flight though appear in website for sometime, has not started yet!

CMMT under heavy selling pressure. Outlook are not as bright as before. Gurney Drive mall face direct competition from incoming Paragon Mall. SungeiWang face decrease traffic as MRT construction cause heavy traffic jam. The only bright spot is EastCoast Mall. Doubt any meaningful rebound in share price as future rental revision will be much lower compared with years before.

Folk, Hubline in last qtr March 2013, reported the loss on scrapping of four older vessels is RM 26.2 million. Hubline may have to scap further in coming qtrs. Even though hubline do not scrap the vessels, auditors may press for potential impairment loss on those older vessel value in current financial year ended 30 Sep 2013.

Anyway, the current price of 5 sen look attractive compared with Net Asset @ 30/3/13 at 19sen (on assumption no future warrant conversation).

Want to know more about Malindo. Please refer to yesterday CIMB write up on 'Avaition - What up Malindo?'. Could it be AA price up this morning due to this report?

http://klse.i3investor.com/blogs/cimbresearchklse/33225.jsp

Key for India succeed is India consumers love low fares like Msia, Thailand & Indonesia while in Japan airfares is secondary factors. Also in India, road infrusture are poor and no high speed train.

Suggest to forumers to have vacation in Southern India next time instead of Europe.

The truth of running up of Komark share price lately have been revealed. On 28 Jun 2013, Komark Board receive EGM request from substantial shareholders Lim & Tan, holding 18% to remove all the directors, including founder Koh family. Based 2012 annual report, Koh family were holding 21% in Komark. During the yr 2013, both Koh family, Lim & Tan, buying share in the open market. On 24 Jun 2013, Komark annouced a private placement 10% share, at price not less than RM1, target be completed by 3Q13.

Komark Net Assets @30/4/13 is RM1.52. At current price @ 12/7/13 78Sen, It is mean the share price still GROSSLY undervalue? May be not, since the Komark just breakeven dont make lot of money, not having a great biz model. Somemore, auditors is not big Four auditor and thus cannot give investor adequate assurance that the NA is at RM1.52. Komark has a simple Balance Sheet with Fixed Asset @ 30/4/12 at RM152mil. Bulk of it is Land & Building RM32m (may be undervalue) and Plant & Machinery RM85m.

Anyway, just wait to see whether the share price can move further up and close to RM1 private placement price. Heavy doubt Tan & Lim are able to win the battle since it is unknown how much the undisclosed shareholding are friendly party to Koh family and 10% private placement definitely will go toward Koh friend. In addition, Tan & Lim, based on document disclosed, they are formerly bankers and not involved in the biz of printing. Also, Koh family cannot let go Komark since they are happily taking bulk of director remuneration RM2.8mil in FY2012.

After reading all this, have you already fall in love with Komark?

There is no right issues. It is just seek 20% of sharecapital no share to be issued in the form of private placement, if circumstance required . In the AGM, Amfirst CEO highlight that they have set a clear vision as 'be a leading Commercial REIT'. For the coming yr, emphasis on AEI like renovation budget for Wisma Amfirst RM4mil, Menara Ambank RM25m & Summit Mall RM48m. There is no threat (true?) for Summit for the upcoming mall next to Summit as the said mall is much smaller and attract different segment of customers. Huge supply office in KL is not big threat as AMfirst KL office occupied by Ambank customers, and new supply is more toward higher grade office customers. Amfirst claim Jaya 99, melaka is very good buy with good yield. Target Amfirst gearing 35% to 40%. Claim that Amfirst has strong sponsar like Ambank & ARA (but no mention of potential assets injection from sponsor). Nobody raise the question how the low occopancy rate for some of building to be addressed. Claim building valuation in the book is conservative, which based on investment method in view of high transaction price of similar surronding areas. Claim share price is not reflective of true value of Amfirst as share price do not taking account the low gearing & potential acqusition (no mention of potential assets injection pipeline how can analyst take into potential acquisiton?)

Amfirst has been CONSISTENTLY underperformed its peer for past few yrs like Tower REIT & OUB REIT . Will mapping out clear vision 'to be a leading commercial reit' this yr, enable Amfirst play catch up with peers in term of share price & DPU sooner or later? Should investors continue to give them some benefit of doubt again? Anyway, mapping out a clear vision definately is a very right first stretegic step, in term of biz direction. With the 2 strong sponsors and buildings in stretegic location, there are huge room for Amfirst to improve its performance. Of course, improvement will only done by step & step . Investors' patient is the key..... .

Folk, at this price @1.25, AAX share price is one of the most expensive airline stock, in term of PE valuation. Any negative news will send the share price crash! of course, this is on the assumption that stabilisar manager is off duty. Better stick with its parent Airasia @ RM3.22, with a more reasoable valuation with potential dividend windfall. So far, medium haul LCC is only proven can be marginally profitable, but is NOT yet a very profitable with good margin biz model. It will take many year to fine tune the model to be a very profitable biz model. Ask yourself are you patient enough to wait?

HOTcake IPO! Draw strong institional interest. Price would be driven up by institutional and speculation interest upon listing. Favourable Qualitative factors as follow:

1. Institional offer more than 5x oversubscribed
2. Strength of Sona management
3. Huge success of previous SPAC, hisbiscus & Cliq.
4. onerus moratorium on promoters
5. Predominant draw local interest. Local mkt has excess liquidity.

No risk, No return!.

AA have aggressive plan in India. India currently 80% air booking done through travel agents. There are great potential of India with population of RM1.2 billion, incomplete road infrusture, no high speed train, no comparable real LCC, strong support from southern state govt (Tamil Nadul & Kerala), strong local partner, high domestic fare, Strong AA brand in southern State, focus on underserve secondary town, plan India Football Club, AA India have a very bright future in India.

Based on the above factors, it appear than AA india JV has a good chance to suceed compared with JVs in Japan (high cost & HST) and Phippline (too many players). Therefore with everything go smooth in India, AA future will be in India. Sooner or later, who know, TF might shift it office again! This time from Jakarta to India.

AA share is not moving (up or down), must be MrBB not around. He is most likely went to Chennei and Kochi, South India for holiday. Airasia India will be next hot topic for the coming month.

The best way to judge whether TTB is better than WB is how much investor willing to pay.

Investors have paid more than 1mil to have a lunch with WB. Therefore, to have a lunch with TTB, ideally investor would have to fork out more than 1mil .... lol

Will AA re-enter japan market sooner or later? Below are online new from Chennei, India:

Malaysian low cost airline AirAsia is scouting for a new partner in Japan to fly the domestic routes there after its recent divorce with its two-year-old joint venture partner ANA Holdings Inc, said a top group official.

“We are looking for suitable partners there. There is no time frame fixed for reentering the Japanese market,” AirAsia group CEO Tony Fernandes told reporters on Saturday (29/6/13).

I attended last yr AGM not this yr AGM. Last yr, there are not many shareholders attended the said AGM. probably less than 10. In order to carry out the resolution, due to low attendant of shareholders, can you believe that the directors had to hold their hand up to make good the enough no of votes? Last yr also no much dicussion and ended the agm very fast. After AGM, enjoyed a free buffet lumch in the hotel....

Anyway, Chairman Mr Khoo has deny he will privatise the co few month ago. It is also believed no dividend will be declare as KSL want to conserve bank for land acquiisition.

AA sold Japan JV to ANA at good price, should react favourly by investors. It indeed remove one of the two huge overhang (Japan JV & Malindo Air effect). Recall investor reacted negatively by selling heavely when 1Q13 result report huge loss for Japan JV.

Now banking on softing oil price.... (china can no longer grow as fast as before which pushed up the commodity price by then), let see will AA share move faster?

AA price drop back to Rm3.32 from RM3.40 this morning, may indicate market are not so excited about AAX. AAX prospectus indicate 2012 in fact report loss if we exclude foreign exchange, no doubt 1Q13 show improving result. Now, they are banking on favourable market conditions (eg softing oil price, KLCI record high) to market the AAX share at RM1.45.

Judging from the above, at current price RM3.32, AA is safer bet than AAX.

AA may declare again special div if AA Indo get listed by 4Q13. More planes can be sold from AA to AA Indo.

AA boss may need more money as they are struggling to succeed with ‘extra-curricular’ sporting adventures. QPR was recently relegated from the EPL, while the Caterham F1 Grand Prix team is currently ranked 11th (out of 11) in this year’s F1 championship

Share overhang in KSL continue dragging the performance of its share price. Lembaga Tambung Haji still holding 19.8m (5.1%) share in KSL at 3/6/13. LTH Sold 1.4m shr in last friday 31/5/13 and 2.2m shr in Monday 3/6/13.

However, there is no disposal of any shr from controlling shareholder, Ku family from beginning of this year though price has gone up a lot.

192mil stock is at June 2012. RM142mil is at Mar 2013. Take 9 mth to bring down the stock level. No sure whether is an improvement. June 2012 build up may due to HariRaya sales in 3Q12. Drop to RM142 is after CNY. The only indicators is sales GP margin drop from 52% to 49%, may due to stock clearance or intense competition.

Retailer always build up stock b4 festive season. Clear stock after it.

1Q13 result out: Sales up 80% Yoy. Profit before tax also up 80% yoy. Proven KSL a efficent developer with fast turnaround time from landbank to profit.

1. AA Exdate for Div 6 sen tomorrow 31/5. A lot of buyer now because of alot of seller last few days.

2. AA Japan (AAJ) has harder challenges to face. AAJ CEO Yoshinori Odagiri say 'cost has proven to be our toughest challenge but believes this can be driven down once more economics of scale is introduced.'

It look like AAJ would continue to incur huge loss for a long period in view of economic of scale will take time to build. Current AAJ only has 4 planes.

3. AA Management believes Malindo’s business model is more similar to a full service carrier and will directly compete with MAS in terms of commonality of business model and routes. AA has reduce Malaysia additional fleet from 10 to 6 fleet in 2013.

Malindo extra length 32' seat mean more suitable to compete with MAS. There is a good chance that AA yield will continue record good growth in coming quarters due to limited competition from Malindo, Najib 's BN win over election and softening oil price.

Airasia claim Japan JV has failed. What AA is going to do? below interesting points reported from Reuters on 25/5/13:

Fernandes said AirAsia hoped to resolve differences with its partner All Nippon Airways in the next few weeks but did not exclude a break-up of the venture, which allows each partner to pull out with its investment protected by the other.

"The model will work. But I'm not sure our partnership and the way we will run it would necessarily work. We've got to be aligned on that and we're hoping to be aligned. I'm moderately optimistic that
we can make it work," he said.

"If we agree in a couple of weeks time then we just go do it. All our other affiliates have made money, Japan should be no different."

Asked what would happen if the two sides failed to reach an agreement, he said, "Then we'll have to part ways, I think".

The weekly Edge dd 20/5/13 interviewed with TTB reveal some interesting points:
- TTB now focus on 2 global funds, icap global fund & icap international value fund.
- Icap have office in Sydney, Spore, HK, KL.
- TTB spend most of his time on road visiting companies around the world.
- TTB claim he has a unique way of running his fund. Support by a large team of analysts, he is the ONLY decision maker. It is a 'ONE MAN SHOW' with no investment committee and no one with different views.
- TTB claim Najib election result is worst than former PM, fear be replaced in the coming umno election.
- TTB expect KLCI could slump to 1000 to 1560 from current 1783.
- TTB work 7 day a week and work even harder than 24 yr ago when Capital Dymanic was formed.
- TTB plan is don't want just be a global company, want to be true global fund manager from Asia.

The 20% discount is most likely due to 'consistent underpeformance' of icap over the last few years. When a fund can consistently beat the market, investor will like the fund and the share price will be trade at premium over NAV like early day of icap.

MrTTB most likely adopted the china-man style management. In early day of icap, he only has one fund to look after. But now, he may have over-stretched him as he need to take care of so many funds across different region.

The 20% discount will mostly continue to persist unless the fund can perform better or a winding up expectation be initiated by shareholders.

Before election reach RM3.70. After BN win the election, reach even higher on the expectation of more foreign direct investment to drive up industrial property price. Currently ,there are shortage of industrial/warehouse property in Penang & KlangValley.

Compared with another small industrial reit -Atrium Reit, Axis is in a better position to capitalise strong industrial property demand by constantly upgrading/rdeveloping it assets to maximise the rental. Sponsor acquisition by Axis is still possible in this current high property prices environment.

However, Axis closing @ 16/5/13 RM3.87 is not cheap on gross yield 4.6% (18/387), beating all the retail reit with the exception of new listed KLCC staple reit.

With DryBulk Baltic Index at record low level of 861 @ 15/5/13 (historical high is 10,000++ in 2007), any rebound of share price most likely shortlive.

AA share px performance is laggard compared with its associate, ThaiAirsia and TuneInsurance due to concern of potential competition from Malindo Air.

However, AA prospect appear getting better, as malindo launch daily service to Sibu, Miri, Tawau with launch fare of RM98, RM98, RM138. The launch fares pose no threat to AA at all and are not cheap compared with luanch fares to kuching (RM38) and KK 2 mth ago. It seem that Malindo try to avoid a direct competition with AA by offering super low fares.

AA share price get a boost from declining oil price lately. Selling from major shareholder was well absorbed and such that major shareholder statistic are not so relevant anymore.

MrBB, careful now! a new challanger is around. You should continue play safe and hide in the cave.

AXIS price closed today 17/4/13 @ RM3.68, suprisingly beating all the target price recommended by all broker houses.

Look like analysts have to buck up and revise upward the target price of AXIS ASAP to stay 'ahead' of the market.

Other than today a Lion Air 737-800 plane crash into Bali sea on landing, other Lion Air recent incident of safety record as follow:

1. On 1 Nov 2012, a Lion Boeing 737-400 from Jakarta bearing flight no 716, skidded the runway during landing in Bandara Supadio, Pontinak.

2. On 23 Dec 2012, a Lion plane from Jakarta bearing no GT 260, burst it’s tyre during the landing of Bandara Hj Raja Fisabilah, Riau Island province.

3. On 30 Dec 2012, a lion 737-400/ JT 71 8 from Jakarta, skidded again the runway during landing in Bandara Supadio, Pontinak.

4. On 21 Feb 2013, a lion 737-400 plane burst the type during landing on Bandar Supadio, Pontinak.

If AAX dont fly to India Metro City, Malindo Air (with extended range plane) will fly to those city.

If we exclude the 'Iskandar' Thame Play factor, the return for property stocks for the past 2 month is more and less in line with KLCI. Iskandar Drivers are primarily determined by Singapore Dollar, less from Msia side.

Based on Msia sound macro factors, the property boom can last for a few more yrs. Property stocks with sound fundamental, are expected to do well in next few yr ahead.

Market up marginally today. Now the market has priced in the election result, in anticipating Najib will form the next govt. If any event later change the market expectation that Najib is no longer next PM, market will crash.

So folk! MrBB! All readers! Invest wisely, otherwise will burn your hand badly!

Millionaire, are you still around? Put on weight already, eating abalone everyday? Is MrBB a 'she' or 'he' or....?

This counter, it annual return (capital gain & net dividend) estimated about only 10%. Very little return even for some long term investors. It is more suitable for Leisure Investor, who invest for fun. Definitely not suitable for investor holding hard core cash.

This counter is mean for dividend payout, not for capital gain. Born in the 'wrong' industry where currently there are oversupply of office space in Klang Valley. Also, promotors and management capability are not as strong as some other REIT manager.

AM from day one is already a Kampung REIT. Ten year later from now, it remain will be same a small Kampung REIT.

AXRB share price closed last Friday 22/3/13 @ RM3.35, generate a FY13 gross yield of 5.3% (18/335). Which is still lower than retails REIT’s yield ranging from 4.5% to 5.0%. Some long term individual investors are contemplating of to take profit.

In fact, the run up of share price for past one year is due to strong capability of management team of AXRB capitalising on strong property market vide its timely comprehensive assets redevelopment and refurbishments exercise to tailor need the new demand. Also, most of its assets held are well located and its surrounding areas enjoy rapid price appreciation. In addition, there is also shortage of warehousing and industrial space in Klang Valley and Johor Bahru. A strong property market will ensure healthy rental revision, faster assets refurbishment and redevelopment, higher capital gain on assets disposal. All these will translate into higher dividend.

Therefore, as long as property market remain booming, the share price of AXRB mostly likely on uptrend.

Based on recent macro data of [1] huge national current account surplus [2] government debts high but still manageable [3] well capitalised banking system [4] Govt’s Economic Transformation Programme [5] weak Europe economy recovery (ie mean less inflation pressure & low local interest rate), [6] resilience of Asean region economy, it appear that Malaysia strong property market can at least continue for a few more years.

Par value only 1 sen but sell at offer price 75 sen. Really can't believe the logic behind. The company has no biz at the movement, but with a group of oil and gas business professionals. Imagine how many years u will take to build a biz from RM1 mil to RM75mil.

Now market is in JB Inskandar property theme play. Will oil & Gas theme be on play when Clip listing? Only time will tell.

As mentioned earlier, Lion Air boss has set up a Aircraft leasing co in Spore recently. Look like they are venturing into a aircraft leasing biz soon.

Admist uncertainty of election, huge run-up to RM1.94 from Jan 13 @ RM1.43. Together with Tebrau & UEMLand, JB LandBank Theme continue on play. Election defensive stocks and with low foreign shareholding. Valuation is catching up with Inkandar Water Front targeted at mid year IPO. JB is like 15 year ago of HongKong's Shenzen.

On longer investment horison, looking forward further price upside on 2 ground. 1. More positive new flow from Spore. 2) Strong quarterly result indicating fast turnaround time from landbank into bottomline.
3) Net Asset @dec12 at RM2.79 (without landbank valuation).

However, there is risk of property over-supply glut, if JB cannot acheive strong grow or government property cooling measure if too fast run-up of property price.

AA div for FY12 is 24 sen, generate yield 8.6% at current price RM2.78. Assuming AA cut it div 50% to 12 sen in FY13, yield will still attractive at 4.3% (12/278). No wonder local investors like EPF keep buying lately.

As price drop, MrBB will keep buying. Soon and later, we will read the announcement .... Mr BB become substantial shareholder replacing wellington. ...LoL....

THe drastic downgrade of TP from RM6.50 to RM5.40 within a month, reflect a slap on the broker house face. The sharp downgrade to enable the broker house to rectify the wrong assumption of overly high GP margin used in previous assessment on making the profit projection of APM.

In fact, b4 the 4Q12 result announcement, there are rumours in i3portal that APM is under pressure to cut selling price to customers.

On SWOP analysis, unsual high GP margin of APM for the past 2 years is not sustainable going forward, as APM derived 65% from only 2 customers, proton & peradua. Therefore, APM is only a price taker.

APM has found it difficult to make inroads into regional automotive markets whether through exports or overseas operations. This indicate the APM is not competitive on regional basis, but some extent, still competitive in domestic market.

In conclusion, most of the broker house are over optimistic on the APM biz outlook in their previous asessment. In reality, APM are still a domestic players. When margin become high, Proton & Peradua will knock the door and ask for price reduction. Want to be a Asean big players, APM still very miles aways. However, APM has a very light assets balance sheet, generate huge cashflow every quarter. The cashflow can support generous dividend and share price. Going forward, APM should view as a dividend stock instead of growth stock.

Outlook of Hektar are getting better & better.

Annual report 2012 indicate 2012 traffic for Subang Parade & Mahkota Parade increase by 44% and 34% respectively. Therefore, healhty rental revision rates expected for both mall in 2013.

On the other hand, the reposition & reburnishment of 2 new kedah malls acquired in Oct 2012 (Landmark & Central Square), are expected to completed by end 2013. Healthy rental revision rate are expected after the exercise.

With (1) stronger outlook of rental revision rates, (2)current high gross yield at 7.1% (10.5/148) and (3)potential yield compression since retail peer trade at yield range 4.5% to 5.0%, these 3 fundamental factors point to the high possibility of strong run up of hektar share price in later part of 2013.

Challengers keep changing from time to time, the defending champion remain is MrBB. lol....

Last day for entitlement of special div. AA up 3 sen to RM2.99. MrBB diam-diam rest in the cave. Look like investor do not think Malindo Air hyprid biz model (more close to Full Service model) will pose a big threat to AA.

Indo media this week report that Lion air Boss lately form a plane leasing co, call 'Transportation Partners' in Spore to lease the plane to lion air and outsiders. Is this mean that Lion Air may have over order the plane and cannot absorb all of them?

Launch of Malindo Air on 22 March.... . May be is a good news.

To certain extend, investors will have a clearer picture of Malindo Business Model when assessing the impact of Malindo Air.

The Star reported that 'Malindo Operating Boeing 737-900ER airplanes, which have a capacity of 180 seats each and capable of serving destinations within a five and a half hour range'. Website also reveal that there are 15kg free baggage allowance on Economy Class, Extra legroom 32” seat pitch, meal provided, enjoyed aerobridge from KLIA main terminal.

It look like they are hybrid with biz class since they are only 180 seats. Will this Malindo biz model work? I think within few month, we will have the answer.

Special of div 18 sen, Tune Air are getting approx 128mil dividend, based shareholding of 25%.

MrB&B should change his favourate statement:'Tune Air has acquired a total of 44,080,000 units at ZERO cost (instead of an average price of 2.904 costing Rm128 million) from 15 Oct 2012 till 29/01/2013.

Sharp correction from RM6 to now 22/2/13 3pm @ RM5.20. What has gone wrong with stock? Fundamentally, RHB last week reveal the weak link of APM. In short are as follows:

1. APM is still reliant on sales to domestic OEMs. APM’s revenues mainly come from domestic OEMs (about 75%) of which about 65% are derived from sales to Proton and Perodua.

2. APM is a price taker. With the domestic OEMs under pressure to be more cost competitive, Perodua and Proton have implemented a 15% price reduction across the board beginning 1 Jan 2013 without any corresponding volume undertaking.

3. Limited export and overseas sales. APM has found it difficult to make inroads into regional automotive markets whether through exports or overseas operations. Japanese and other major global autoparts vendors already dominate regional automotive assembly hubs in Thailand and Indonesia.

4. Looking beyond organic growth. The founders of APM have historically managed the company conservatively and only growing organically.