Let me unpack to you what (i understand) on the significant of this MOU with SPNB.

1) 20,000 unit of house for New Generation of Felda Settlers. First 10,000 units is already on hand. Target completion :- 2 years.

2) SPNB own housing - Aspirasi , Idaman and Mesra. Some of the supply for Mesra is already on going. With this MOU, AJIYA has secured a strong foothold in local housing market especially, when the government is emphasizing on usage of IBS. Ajiya will be given access to supply to 50,000 units of housing in next 5 years


3) PR1MA - There are several project running and around 8000 units on hand awaiting orders

4) PPA1M - opening to PPA1M

5) KPKT - Already some projects are in the final phase of negotiation and construction should commence soon. Impact will be felt in FY'18

SPNB, PR1MA, PPA1M and KPKT are tasked to provide 250,000 units of housing for Malaysian in next 3-5 years.


Bottom Line impact:-

a) Should Ajiya starts the 10000unit of Felda 2nd generation housing in 2 months and the contractor completed in the housing in 2 years (until June 2019).

Profit Margin approx. 3K per unit x 2500units per quarter = RM7.5M or RM30M per annum.
(profit margin is 10% a low double digit of the per unit value of the AGIBS system)

b) Should Ajiya secure the supply to all landed Aspirasi, Idaman and Mesra projects (approximately 12000 units in next 2 years)

Profit margin approx. 3K per unit x 1500 per quarter = RM4.5M or RM18M per annum.

Base on the projection of projects coming up, Ajiya should be doubling up its profit to RM50M by 2018. EPS would increase to 18.06 per share.

Based on P/E of 12 , AJIYA share price should be worth arond RM1.30 to 1.40 a share.

Bearing in mind that with more project coming onboard, efficiency and margin will improved further.


Salient Point for this IBS and why it will work well with the government appointed contractors:-
1) AGIBS components consist of almost 80% of the material needed to construct a house (from ground onwards). It covers wall, window frame, window, facia board, steel trusses, metal roofing, door frame, car porch, etc etc. All this are available in house and manufactured by Ajiya various subsidiaries.

Benefits to SPNB/ Government-
With the material cost covered mainly by SPNB and government, the contractors need not worry about cash flows and material price fluctuation. Hence they are able to concentrate in their core work - constructing. In short the deliveries of houses could be hastened.

With material cost secured, the government can safely meets their agenda of provided "affordable housing" to the mass.

Benefits to Ajiya
On Ajiya side, this MOU s significant as it enable a "packaged" sales for all the components it manufactures. everything inhouse means a better "fit" for all components and a seamless supply chain. In the next 5 years, this will translate to better margin, less returns or rejects and improved bottom line.

AGIBS provide a solid avenue for all AJIYA units with a guarantee demand for all the components they are now manufacturing.

2) AGIBS is easy to install and use. AGIBS is easy to install. It doesn't require complicated tools and can be anyone can master the AJIYA has also established a training facilities with CIDB to provide training for installers of AGIBS system.


Benefit to Government
Provide job opportunity to local. Installer of AGIBS system gets goods returns and are paid relatively well. They reward incentive is based on the number of units of house they installed. A skilled team of 5 person could complete installation of 15-20 units of house within 14 days. It will reduces the reliance on foreign worker.

Benefit to Ajiya
With more trained installers, the acceptance of AGIBS will grow. More and more people are familiar with AGIBS and its advantages

3) Quality finishing
AGIBS has far provide great finishing and quality. AGIBS enjoy goods IBS score, Acoustic score as well as good fire rating.

This is just my observation and opinion based on information obtained.

Good luck and Happy investing.!

Construction is a cyclical business and same goes to building material. It cannot be based on quarterly basis. Some quarter may be lower some may be higher depending on progress. This AGIBS of Ajiya is a direct link with the pace of the construction.

I have visited a few sites that uses AIGBS to have a clear picture of this AGIBS. It does speed up the construction process. Most of the contractor /developer I met, definitely prefers to use AGIBS for their future projects. The end result of AGIBS not only means cost saving but quality with little defect issues. AGIBS is far more superior than precast!

It is only fair that through time, Ajiya will prosper because of AGIBS. It take times to garner the acceptance. Most contractor are only familiar with conventional brick and mortar method. But once the acceptance level grow, Ajiya will grow exponentially.

I am keeping my Ajiya shares for long term.

Wow...one after another. Wonder who is net?

beautiful...

tunggu itu olang keluar dr gua...masih tengah bertapa...cari ilham

http://www.cnbc.com/2017/05/16/this-latest-trump-russia-leak-smells-like-a-coup-attempt-commentary.html

Dalian Wanda- EPF-SP Setia or the Englarged PNB property umbrella???? 10 B valuation need company with big muscle

selling pressure growing

Love this counter. Steady and good long term bet. Have been keeping it for 3 years now. Together with QL Kept since 2009. Cannot afford big counter like PBB, Nestle, TNB...this is one of the sure bet.

Seems like someone is pushing it down to collect....

Made in China...thank you XJP & Jib for the early Raya Angpow...hahahaha

some say buy, some say sell.... make your own judgement

Just exited at Changkat Jering...enough for me.. Thank you very much. Have a pleasant journey to Haadyai or Bangkok. Cheerssssss

Ada olang cakap "Month of May will reach 30cents" ....itu olang senyap sj...

:( coming down with volume....

zzzzzz.zzzzzzzz.....zzzzzzz

Wonder where r the buyers ....ystdy closing there r 2.5 million buyers at 18 cents?

By the way just a question to all forerunner here?

Has anyone of you patronize the hotel chain owned by ASB? Did you have a pep talk with any of their frontline managers?

If yes share how you feel of the business?

What most analyst does nowadays is talk to the big bosses who usually paints fantastic picture of the company to get upgrades.

Similarly, people analyses historic data to predict the future. Is this right method ? Well I don't know..May be a lot of sifu can share their thoughts.

Hope market can rebound soo

@thenewbee..i m not speculating...I didn't even provide any target price. Who do you think is speculating here...people who give beautiful prediction?

Well it's your choice. Most people love to read comments that is sweet to the ears.

Just a simple reminder to those who buy for T-4.

Sembelit ke sakit perut. Ardu haiii...if result is next week it better be good...or else ...pening lah.

:( trapping

England no good..sorry yer

++:)++ f...e...w.... m.....o....r......e

d.....e......y 2 g.............o

:) hmmm...to be continued

:( arduii

Diam diamond ubi berisi

Mari lah Mari..:)

:)

:)

sorry not a regular here..I do have some hevea stocks and has been keeping it for sometime...been reading all the conversation and analysing the result...don't see what is really wrong with this counter. a slight drop from the previous quarter and it gets some one writting no negatively..

Its still time to accumulate at this price...

My pleasure.

more than happy to release all to you.

Adam...queue and buy..put more buyer.....I have 1.38 million more shares to throw. come and catch it.

Arduii boring betui...

Hopefully it is better than previous quarter...

Result should be just around the corner

Remember to catch and keep cheers

Good happy to know got people still interested to buy

Haha yeah buy more...gua ada banyak lagi bekalan...

Good results coming?

mati...... hapak tun takde

sell sell

Dump...dump

dump....this counter go for others

Warrant open tomorrow ...10cents...

Good observation... Are you one of the 'accumulator'?

Just wondering how many forumers actually is keeping this counter or has a share in this counter?

Other investment is a creative accounting tool.... Use mostly by construction company.... For ehemmm you know whatlah ( cannot elaborate) . astino has a division involved in chicken farm construction...

The 2 billion income tax bill may have some impact on coffers. Time to buy on weakness.