Magnum PE is high due to their one time loss on taxation in last Financial year.
If you check the Quarter Result this year, they shall stay at about the same PE ratio.

Most important is the Kyoto deal.
Once it is confirm done.
Both Bj Corp and Bj Land shall fly.

Base on VT's disclosure on 27-02-19 on share holding of Bj Land.
His total share is still at 80.07%, have not included the 4.67% shares suppose to be received.
Therefore, we can say as at last week, Penta still remain major s.holder >5%.

To answer Kahhoeng's questions :

(1) Penta direct business deal to purchase from others could actually be higher than 0.38 per share
otherwise, why the need for Penta to purchase from others first. The deal is completed within a few weeks. BJCorp could have offered to those buyers. WHY only Penta, and this is not the first time!
Answer: Watch out the statement of Penta notice, the direct transaction between Penta and other foreign fund manager might not involve transaction cash. Penta might act as Agent for them.

2) BJCorp is ONLY buying 4+% from Penta when BJLand is already suffering from required free floating share issue. If the deal is genuine, BJCorp offer should be extended to purchase all from not just Penta, but other minorities as well.
Answer: The free floating issue will only officially trigger once the shares transferred to Bj Corp. ETA 15-02-19. Then Bj Corp will offer MGO to the remaining share-holders.

The only question is why they do not wait for Penta to finish consolidate all shares under their umbrella and offer share swap? Swap 396 million bj land with 500 million bj corp.
Can they offer two times of share swap with PEnta ?

Nevertheless, the ultimate goal of investment shall be achieving good return from the share market.
As retailers, to complaint on VT is not being fair to the minority will not pull back their privatise movement.
What the retailers shall think, strategies and prepare is the next move.

kahhoeng reckoned the deal between Bjcorp and Penta is illegal.
Regret to reply that the deal is fine in term of "willing buyer willing seller" basis.
Penta act as Agent to consolidate those Bjland shares witheld by other foreig fund manager. last week is transaction with Macquarie Bank Ltd., and this week with Golden Sachs.
Between Penta and BjCorp, they are still close partner as they remain major share-holder at BjCorp.
However, retailers hv lost the biggest supporting arm to against to de-listing exercise.

before last week, I put high hope on those foreign fund who hold about 11% Bjland shares will stand against Bj Corp privatise move.
As most of them hv invested at RM1.00 to RM1.20 during the peak at 2010.
However, the yesterday deal between Penta with Bj Corp proved that they stand side by side with Bj Corp on this privatise exercise.
Of course, with Bjland delisted, Penta still remain as major shareholder of BjCorp with holding of 500 million Bj Corp (if Penta swap the second batch of bjland shares with Bjcorp shares, as projected above).

As Bj Corp group hv control beyond 90%, I believe mandatory delisting from Bursa should be the only option.
I'm not sure if the minority shareholders united and defend at less than 10% shares can be accepted by the SC.
This will triggle the worst case scenario, Bjland suspended.

The only question is shall retailers sold to VT at 38sen ?
If answer is NO.
What could the retailers do ?

From latest announcement, Penta hv 396 million Bjland shares.
They agree to swap 230 million Bjland shares with 1.26 x BjCorp shares, to get 291 million BjCorp shares.
Pls note that BjCorp notice hv stated they hv Mandate from share-holders to issue max 500 million shares (based on 10% of share capital of 5 billion). This means BjCorp hv got balance of 209 million BjCorp shares to swap with Penta remaining 166 million Bjland shares, x 1.26 = 209.16 million.
Once this second deal is done, Bj Corp + VT will control 90% of BJland; and MGO to remaining retailers will take place.
However, noted that no more BJCorp shares is available for Bj Corp to offer to Bjland minority share-holders, therefore, Cash Call shall be the only option.
Of course, 38sen or above is the offer.

JeffreyTeck Query:
Profit and EPS up but net asset per share down. Any accountant can explain?

BjLand NA drop to RM0.81 from RM0.86, even EPS is RM0.0033.

It is a bit academy answer, while refer to A1 note:
(a) MFRS 9: Financial Instruments, and
(b) MFRS 15: Revenue from Contracts with Customers,

Let read the Financial impact (in page 11), the effects of adoptions of both MFRS 9 & 15 have given impacts on the NA :
1. Revaluation reserve of (RM 30.6 mil)
2. Retained Earnings (RM 219.7 mil)
- which under Equity side
and transfer to
3. other long term liabilities + RM 241.6 mil
- which under Liabilities side

This have give direct impact on the NA drop to RM0.81 from RM0.86.

Anywhere, If compare to current market price of RM0.245, the NA still stay a very high side.

Notwithstanding the above, the cash & cash Equivalents of Bj-Land is of RM 773.8 mil, (under Closing balance, stated in Page 7) which is RM0.155 cash per share.

Assume distribute the cash back, you still hold all the assets, properties, lands, hotels, clubs and 40% of Bj-Toto and 100% of HR Owen with only RM0.09 per share cost.

There is no way for Bj Land to be privatized by VT, as the foreign fund have bought at RM1; they will not easily dispose to Bj-corp at the current price of 20c ++.

Therefore, there are 2 outcomes:

1. Bj Corp release back Bj Land shares either via private placement to some local investors; or distribute back to Bj-Corp share-holders as special dividens in species. Bj-land fall back to above 20% share split at market, no suspension of listing.

2. Bj-corp choose to let Bj-land suspended, and slowly take back from the each of the retailers. Assume taken all retailers' shares exclude foreign fund holding (12.9%) up to 87.1%. Then only call for private placement; or call for special divide in species.

If those good news from China Great Mall repayment, Jeju returns; and Vietnam special gains back within few months. Believe Bj-corp will push option 1.

They have been selling to potential buyers a RM6 per shares (before 1 split into 4) in 2008.
Could they do it again at 2018 ??

If buy bjland,

Good side:
1. It trade at lower price of 23c, and have higher price target of 77c (from i3)
2. It enjoy direct and best results from special gain from Vietnam; return from Jeju law suit; repayment from SkyOcean.
3. Good news come STC settlement meeting with Selanagor Gorv set on 17-10-18.
4. Good news from Okinawa Hotel work after two years of planning since 30-11-16 announcement at Opening Ceremony of Kyoto Four Season Hotel.

Bad side:
1. No liquidity, 80% owned by Bjcorp, 12.9% owned by foreign fund which purchased at around RM1.00. Market retailer got only 7.1% float shares.
2. Threat of suspension by Bursa, dead-line for public spread is of 13-12-18; then shares will be suspended.

For Bj Land annual Report, in Page 26 & 27 - Corporate Structure, while Bj Land list-down their subsidiaries, their usually will list-down according to business category, regardless that they are son, grandson or grand-grand son.

Therefore, if read from this chart only, it will have confusion of HR-Owen is 99.3% subsidiary direct under Bj-Land.

Actually,
1. HR-Owen is 99.3% subsidiary of Bj Philippines ;
2. Bj Philippines is 88.26% subsidiary of Bj toto ;
3. Bj Toto is then 40.23% subsidiary of Bj Land.


Pls refer to : 49 LIST OF SUBSIDIARIES AND ASSOCIATED COMPANIES, from page 204 to 219 to has the actual relationship of them.

Hi Kahhoeng,

1. FY18 Q1 report, the assets held for sales RM 516 million, vs RM 43 million in FY17-Q4.
There is no clear statement on it, however if you read Annual Report on FY17, Material Properties as compare to AR on FY16. The Commercial development at Berjaya Central Park - Ritz Carton Residents (Book value of RM 523 million, at 30-04-16) was removed from there. However, no announcement had been made. I presume this is the "assets held for sales".

2. FY17 Q4 report, financing cost is high, up to RM 126 million, much higher than FY16 Q4, while the debts n FY17 Q4 is lesser than FY16 Q4, this is due debts amount recorded is at closing date of financing year end. When Bj Corp progressively repay back the debts, the outstanding sum still subject to interest charges. If you read into each quarter report, you will found the highest debts is at FY17 Q2.

Good morning to all.

There is important info for Vietlott hidden underneath the Annual Reports of BCorp & BLand.
While we read BCorp FY2017 AR, segmental result of Gaming, total revenue is RM3.567 Bil, in which RM241 mil is sales for ILTS classified as inter-segment.
While we read BLand FY2017 AR, segmental result of Gaming, total revenue is RM3.365 Bil.

The different of these two revenue is from Vietlott, RM 204 Mil (VDN 1.02 Trillion).
However, the result is much difficult to study, BLand is RM413 Mil, BCorp is RM334 Mil.
Different is RM79 Mil, from the expenses of RM241 Mil (of ILTS).
Can we direct say result is RM320 Mil from above ? Seek for solution.

@jon,

Correction on segmental result, refer to Note B1:
1. PGMC at Philippines, both revenue & pre-tax profit is drop, -4.6% and -25.2%.
2. Sports Toto M'sia, revenue drop -2.3%, however pre-tax profit is up 2.3%, due to lower prize payout.
3. HR Owen, revenue up to RM670.7 mil from RM262.1 mil. Pre-tax profit up to RM15.5 mil from RM6.9 mil. Very bright results for this Q1, and could be a new profit trend for HR Owen.
4. No statement about Vietlott result, however while read P&L sheet, item named : Share of results of associated companies, it's result is (- RM1.783 mil), as Bj-toto owns 10% of Vietlott, Vietlott result could be (- RM17.83 mil).

Fro info. Both VT & Robin share-holdings were counted together, therefore, total holdings were 45% only. Nevertheless, it is also huge qty.

VT direct holding = 22.5%
VT indirect holding = 22.5% (via several holding companies; in which Robin has 13% too)

abv8888... I hv did some home-work about Penta, assume they have converted all ICULs into BjCorp shares, Total shares extra are 176,625,000, since 10-06-16.

Table 1, TSVT share-holding of Bj Corp as at 01-09-2016:

No. of BCorp Ordinary Shares, 1,076,186,290, 22.74% (Direct)
No. of BCorp Ordinary Shares, 1,074,207,732, 22.69% (Deem interest)
TOTAL: 2,150,384,022, 45.43%

Table 2, TSVT share-holding of Bj Corp as at 24-08-2015: (FY-2015 Annual Report)

No. of BCorp Ordinary Shares, 997,300,000, 24.03% (Direct)
No. of BCorp Ordinary Shares, 1,005,944,632, 24.24% (Deem interest)
TOTAL: 2,003,244,632, 48.27%

From TSVT disclosure, the extra 147 million shares extra were as below:
1. Conversion from 0%-ICULs, 99 mil
2. Conversion from 2%-ICULs, 70 mil
3. Disposal of shares to 3rd party, (35) mil
4. Purchased from open market, 13 mil

The finding is, those shares converted by Penta, 176.6 mil - 13.0 mil (by TSVT) = 163.6 mil, majority of those shares were bought by retailers for the past few months, June to October-16.

That's the reason why Bj-Corp share price was stuck at 32c ~ 34c for so long.

Ricky Kiat... May I ask how could we found the 3rd party bought the 35mil shares from TSVT is - Multi-Purpose Capital Holdings Berhad ?

Can you share with us ?

abv8888, you are right!
Penta's name does not appear in 30 major share holders, means they have dispose off at market for the past few months. Once the selling force was gone, the bottom line will form and up trend will begin.

While you look into the 2% ICULs, TSVT has hold up-to 99,80% of the market 2% ICULs, means Penta has fully converted their ICULs into Bj-Corp shares.

Q1: Why Penta like to convert the RM1.00 ICULs with 2% fix yield per annum into 33c ~ 34c of normal shares? Are they only aim for the 3:100 bonus shares at 30-12-2016? Or something else?

Q2: There was somebody ask a question in the AGM about why Bj-Corp give an RM1.00 ICULs with 2% yield for Penta and TSVT to sell Bj-Land to Bj-Corp. As there will be 2% interest over the 355 million ICULs = RM7.1 mil per annum.

The management answer is they like to hold back Bj-Land shares from Penta, instead of let another External party to purchase the substantial bulk of Bj-Land shares, 6% of total 5 Billion from Penta.

Benefits no.1, the purchase of 6% Bj-Land shares from Penta shares were using Bj-Corp ICULs with 2% yield, non-cash involved.
The extra 355 x 2 million ( one part by TSVT & one part by Penta) free warrants will further enhance Bj-Corp Capital Fund position if those warrants were converted into Bj-Corp shares with RM710 million.

Benefit no.2, as Penta has full converted into Bj-Corp shares, the yearly interest of RM7.1 mil/2 = RM3.55 mil was no longer an issue; if TSVT also convert them into Bj-Corp, no more interests will need to be paid.

FYI, TSVT has converted 70 million ICULs into Bj-Corp shares, and then sell off 35 million to third party.

Q3: Can somebody give a good guess on why this drastic action had been done by done both Tycoon, TSTV and Penta ? What is their agenda ? Pls share with us if you have some idea. Thks.

Q4: As at 01-09-2016, TSVT has hold about 45.5% of shares, out of 5 Billion shares, means there are balance of 3 Billion shares float in the market. Hugh qty of floating shares in the market.

Therefore, while the wave is coming, anticipate that the usual turn-over per day shall be of 15 million ~ 30 million; then boost up to 80 million ~ 100 million per day.

The only question is when it coming ?

Table 1, TSVT share-holding of Bj Corp as at 01-09-2016:

No. of BCorp Ordinary Shares, 1,076,186,290, 22.74% (Direct)
No. of BCorp Ordinary Shares, 1,074,207,732, 22.69% (Deem interest)
TOTAL: 2,150,384,022, 45.43%

No. of BCorp 5% ICULS, 155,916,065, 24.17% (Direct)
No. of BCorp 5% ICULS, 136,868,700, 21.22% (Deem interest)
No. of BCorp 5% ICULS, 109,973,349, 17.05% (Indirect int)
TOTAL: 402,758,114, 62.39%

No. of BCorp 2% ICULS 102,627,780, 99.80% (Direct)
This is exchanged from 6% Bj-Land to Bj-Corp.

Tonight let share on some interesting data accumulated since FY-2015:

1. 10/11/14, Bj-Corp sold Bj-Auto, 100 mil shares, total proceed is = RM325.2 mil
2. 03/16~06/16, Bj-Corp sold Bj-Auto, 398 mil shares, total proceed is = RM789.4 mil
3. 05/07/16, Bj-Corp inject Bj-Auto, 9.09% shares to new SPV, to get 33% of SPV. (no-cash)
4. 20/10/15, Bj-Corp sold Sg Tinggi Land, 10,000 ++ acres, value = RM743.0 mil
5. 16/12/15, Bj-Land sold GMOC, China, in 3 payments, First = RM 33.4 mil (deposit)
6. Second payment (in escrow account) = RM677.9 mil
7. Say at 16/01.17 Last payment, 13mths after SPA signed, = RM677.9 mil
8. 10/11/15, Bj-Corp sold Magni-tech,12 mil shares, total proceed is = RM 43.6 mil
9. 11/01/16, Bj-Corp sold Magni-tech, 12 mil shares, total proceed is = RM 50.0 mil
10. 08/06/16, Bj-Corp sold Magni-tech, 13.7mil shares, total proceed is = RM 56.7 mil
11. 28/12/15, Bj-Corp sold BEE-Fushan, solid waste TP, total proceed is = RM 76.7 mil
12. 05/10/16, Bj-Corp sold Tiaga at Toronto, wood business, proceed is = RM206.0 mil
Proceed shall be collected in Feb-2017.

Total Proceed back to Bj-Corp, as at Q3-FY2017 is of = RM3,679.9 mil

As compare to the total long term + short term loans of =(RM7.200.0 mil)

The actual debt balance is of =(RM3,520.1 mil)

I believe Bj-Corp has an very interesting story hidden behind the present asset clearing exercise,

After factor in the new Revenue from Vietlott from Vietnam & the newly opened Four Seasons Hotel at Kyoto on 15-10-16. We shall aspect bullish result from Bj-Corp.

Nevertheless, when is the time? Pls contact TSVT for better clarity.

Just like we should ask our No.1 man to confirm the time for next election.

Thks.

Tonight let share on some interesting data accumulated since FY-2015:

1. 10/11/14, Bj-Corp sold Bj-Auto, 100 mil shares, total proceed is = RM325.2 mil
2. 03/16~06/16, Bj-Corp sold Bj-Auto, 398 mil shares, total proceed is = RM789.4 mil
3. 05/07/16, Bj-Corp inject Bj-Auto, 9.09% shares to new SPV, to get 33% of SPV. (no-cash)
4. 20/10/15, Bj-Corp sold Sg Tinggi Land, 10,000 ++ acres, value = RM743.0 mil
5. 16/12/15, Bj-Land sold GMOC, China, in 3 payments, First = RM 33.4 mil (deposit)
6. Second payment (in escrow account) = RM677.9 mil
7. Say at 16/01.17 Last payment, 13mths after SPA signed, = RM677.9 mil
8. 10/11/15, Bj-Corp sold Magni-tech,12 mil shares, total proceed is = RM 43.6 mil
9. 11/01/16, Bj-Corp sold Magni-tech, 12 mil shares, total proceed is = RM 50.0 mil
10. 08/06/16, Bj-Corp sold Magni-tech, 13.7mil shares, total proceed is = RM 50.0 mil

Tonight let we all share some interesting data, accumulated from FY-2015:

1. 10/11/14

One important signal from one of the big holder like Penta, who has jointly with TSVT to comvert total of 12% of BjLand shares, which is 600mil shares, value of RM0.70 on 01-June-2016, to exchange with BjCorp 350mil RM1.00 BjCorp-LE ICULs, plus 2 free warrants, BjCorp-WC, and extra RM70mil cash.
Penta has 50% shares on he said deal.

Means they are using 300mil of RM0,70 BjLand shares to exchange with 175mil of RM1.00 BjCorp-LE ICULs + 350mil of free warranty-WC + RM35 mil cash.
Immediately after the exchange exercise completed. Penta had converted most of their BjCorp-LE ICULs into BjCorp shares which only worth market value of RM0.33 now.

Penta has now hold total shares of
175 mil BjCorp shares at RM0.33 + 350mil BjCorp WC at RM0.085 + RM35mil = RM122.5mil
which were converted from 300 mil BjLand shares of RM0.70 = RM210 mil;
This give Penta immediate paper loss of RM87.5mil.

What is their strategy behind this conversion?
That's what we shall study and dig-out in order to see through the full picture.
We hope Fund Manager like Penta shall become our "indicator" for us to follow.
How soon the story will come to the end of the show, let see.

The RM0.72 was he average cost from day one the share buy back scheme started as early as FY2010, while share price > RM1,00. The accumulative of total share buy back up to 182 mil on FY-2014. Whole FY-2015 there is no share buy back. Then last 8 mil shares were bought back on June-2016, make up to 190 mil shares. On accounting purposes, the dividends declared is based on the cost have been spent on those treasury shares. Not the current price value in open market.

Let see another scenario, say BjCorp gone up to RM1.00 before the Ex-date, then the yield is 3c, not 1c as what smartly has calc'd.

Bonus Calc:

1. Get the cost of share buy back,
= Total cost of share buy back / total shares buy back
= RM133,249,000 / 190,000,000 shares bought back
= RM0.72 (rounded)

2. Total dividend given,
= 3 for 100
= 3 x RM0.72 / 100 x RM1.00 (par value)
= RM0.0216