Datuk Lee said Digistar is also bidding for two projects — a total security solution for a government agency and an infrastructure-related project along with other related system integration jobs, which he estimates to be worth a total of RM2 billion.

Mercury Securities has an “outperform” call on Digistar, with a “buy” recommendation based on a fair value of 28.5 sen.

Digistar used to be a technology company, but now it is more like a concession company, because now its main revenue is from the JKR concession project. Digistar will back to technology company once it successfully secure the Broadcast Equipment installation project for RTM Media City, or its has secure any big CMS project from the government.

What is concession business? It is same as toll operator, you build a highway with your own pocket money, then government give you the right to collect toll money for XX years.

The best example you can refer to MENANG, this company secured a lot of concession project for UITM (University Teknologi Mara). Back to year 2011-2012, this stock only hanging around 25sen.. But after its successfully completed the UITM campus, it start to received recurring income. With this recurring income, it secure more UITM concession project. And today, the share price is at 80sen.

For Digistar, now it only 18.5sen, do you think it is very hard to go back to 30sen?

Back to year 2011, Digistar has surge from 13 sen all the way to 60 sen.
I bought it at 13 sen, sold at 16 sen, bought back 19 sen, then sold again on 24 sen, then bought back again on 32 sen, sold at 37 sen.. and not dare to chase again. and it go up to 60sen.

VenFX, the best part of Digistar is:-

Dato Steven Sim Leong Thun and his family is one of the substantial shareholder.

Who is Dato Steven? He is the founder of Secret Recipe.

A lot of people not sure how big is Secret Recipe, let me tell you, Secret Recipe has more than 440 outlets in Asia.

Ven Felix, for your information, Digistar's borrowing was mainly due to the bond issue for the JKR Concession project.
Digistar raised RM280mil from that project, and average coupon rate was around 5%.

Digistar is a smart company, it use leverage to enter into a huge concession project, which will provide recurring income for the next 15 years.

So far digistar only utilised RM240 mil for that project, and the project was completed on July 2016. That mean, there is no more risk to worry Digistar failed to complete the project.

As at 31 Dec 2017, Digistar still have approx RM60mil cash in bank, and Digistar going to received another RM66mil lump sum payment from Government.
With this concession on hand, Digistar will get RM3 mil per month, or RM36 mil per year. And the bond interest per year was approximately RM15 mil per year. This first batch of bond of RM60 mil will only maturity on 30 Sep 2018, by that time, Digistar should have RM60 mil + RM66 mil + RM3mil x 21 month = RM189mil on hand. Let said Digistar utilised RM50mil to pay its operation cost, bond interest, salaries...etc, there will be RM139mil in bank.

moneykj, hehe.. you smell something right..

lchits, yes, the above example is refer to the JKR concession project.
A lot of people cannot see the whole picture, they only know that Digistar is making loss, huge borrowing, revenue drop...etc.
They don't understand the concession deal, they don't know how to calculate the value.
I create the above example is to give them a better understanding on the concession deal.

I have one investment holding company, and the company hold two property.

First property located at PJ, cost is RM500,000 (bought in year 2005), outstanding loan is RM480,000. You might wondering why the property has bough for 12 years d, but loan still RM480,000? The reason is all this while I only pay the interst, so I didn't pay for the principal.
Currently my monthly interest is RM3000, and the monthly rental I collected is RM3500.


Second property is a shoplot nearby new LRT station. I bought it at Year 2015 @ RM1.8mil, and my loan amount is RM1.8mil as well. Same as above, I only paid interest only, so the outstanding loan is still same at RM1.8mil. Due to the construction of LRT (will take 3-4 years to complete) that area become very jam, and many shop nearby has closed down. Initially that place can rent for RM9500, but the rental I collect is only RM6000, so that mean every month I'm incurred loss of RM3500. I believe this loss will be over once the LRT station is ready.

Beside the above properties, my company still have additional RM500k assets, such as cash, bank, fixed deposit and etc.

Recently, an investor offer to buy my first property at RM2 mil, and if the deal is on, that mean I will received RM1.5mil on hand, as balance of RM500k will used to pay off the loan.

Based on the above illustration, do you think how much my company worth?

Guys, I offer you a deal, you see whether you want it or not?

My company is a Multi National Company, and recently we has construct a research laboratory.
In this new laboratory, we need to purchase a lot of advance equipment.

So, I offer you to buy RM2.4mil equipment for my laboratory, and we will lease the equipment from you for 15 years. We will signed a fixed price contract with you, each month pay you RM30,000, for 15 years, and at the end of 15th years, all the equipment will be outdated and the market price will become ZERO (in total you will received RM30,000 x 12 month x 15 years = RM5,400,000).

So you might thinking that you don't have money to fund for this project, no worry, my company will issue you a guarantee letter, and with this letter, I am sure all the bank will lend you money for you to buy the equipment.

Let said the loan interest is 5%, and based on RM2.4mil loan, you monthly installment is RM19k.
Since I will pay you RM30k each month, that mean your positive cash flow per month is RM11k, and you are going to earn this RM11k per month for the next 15 years.

Let said many investor are interested on this project, but my boss will only select one investor for this project, how much would you wiling to pay to my boss (under-table) , in order to secure this project.

RM100k, RM200k, RM300k, RM500k, or RM1mil?

Let said RM1 mil, if we include the RM1 mil into loan, that mean in total you need to borrow RM3.4mil from bank. Based on RM3.4 mil loan @ 5% interest @ 15 years tenure, your monthly installments will be approx RM27,000. Since I will lease from you at RM30,000, so you still have positive cash flow of RM3000 per month.

Remember, you no need to fork out any single sen from your pocket, all the money you need to invest you can get from loan, because my MNC company will issue a guarantee letter to help you to secure loan from bank.

Will you invest in this project? Please share your opinion.

Guys, I offer you a deal, you see whether you want it or not?

My company is a Multi National Company, and recently we has construct a research laboratory.
In this new laboratory, we need to purchase a lot of advance equipment.

So, I offer you to buy RM2.4mil equipment for my laboratory, and we will lease the equipment from you for 15 years. We will signed a fixed price contract with you, each month pay you RM30,000, for 15 years, and at the end of 15th years, all the equipment will be outdated and the market price will become ZERO (in total you will received RM30,000 x 12 month x 15 years = RM5,400,000).

So you might thinking that you don't have money to fund for this project, no worry, my company will issue you a guarantee letter, and with this letter, I am sure all the bank will lend you money for you to buy the equipment.

Let said the loan interest is 5%, and based on RM2.4mil loan, you monthly installment is RM19k.
Since I will pay you RM30k each month, that mean your positive cash flow per month is RM11k, and you are going to earn this RM11k per month for the next 15 years.

Let said many investor are interested on this project, but my boss will only select one investor for this project, how much would you wiling to pay to my boss (under-table) , in order to secure this project.

RM100k, RM200k, RM300k, RM500k, or RM1mil?

Let said RM1 mil, if we include the RM1 mil into loan, that mean in total you need to borrow RM3.4mil from bank. Based on RM3.4 mil loan @ 5% interest @ 15 years tenure, your monthly installments will be approx RM27,000. Since I will lease from you at RM30,000, so you still have positive cash flow of RM3000 per month.

Remember, you no need to fork out any single sen from your pocket, all the money you need to invest you can get from loan, because my MNC company will issue a guarantee letter to help you to secure loan from bank.

Will you invest in this project? Please share your opinion.

Come on guys, is 6%, not 6 sen.
This company has 300mil shares, if paid 6 sen, it has to fork out RM18mil, and its retained profit so far has RM19mil only.
So 6% is only equal to 0.6sen, company will only fork out RM1.8mil to pay to shareholder.

Heng Kee, sure, more to come.. now haven't start yet, now just prepare to move only.

Yup, tomorrow try again.. If still cannot, then next week try again, next month try again....
I got holding power and I got patient, I will ride to Kuek Family together.

Can't reveal yet, because the plan not materialized yet.

However, I can throw some other candy here first.
If you refer to the annual report 2016, you will realised that Digistar has bought two piece of Industrial Land at Melaka Tengah. If you know the current market price there, and you compare with the purchase price that Digistar bought, you will see that Digistar is currently sitting on at least RM7mil paper gain already.

Currently Digistar has more that RM60million on hand, and very soon there will be another RM66mil to be received from Government, after paying off some bank loan and bond coupon, Digistar should have at least RM100million on hand.

With this RM100million on hand, Digistar can venture into many opportunity. Do you see the potential?

Very good example indeed. Another example could be Ter Poh Yee

Hope tomorrow SSTEEL can move up 20% like LIONIND.

RM1.50 increase 20% = RM1.80.

Let pray hard tonight!

8.6 sen EPS per quarter, and this is no one off income, this EPS can be repeated on next quarter, just refer to the steel price and you will know. So worth at least RM2.00

Hi lchits, the DTTB you are referring to the RTM Media City project right?
That project is still on going, so Digistar still in the midst of discussion with Syed Mohktar group, on supplying, installation and commissioning of the broadcast equipment. Currently no outcome yet, as these project have been delay, until now Syed Mokhtar group haven't start any work.

Loy88, not insider news, as I'm not an insider. But I just know that they are working on some project.

I heard a good news for Digistar, but dare not to share now, wait until it materialized first.
But if it really materialised, then it would be the long wait catalyst for Digistar, believe it can bring the share price go back to 30 sen level, but provide market as hot as now la.

Both Mycron and CSCStel are in the same industry, using same material, any reason why Mycron still can maintain its profit, but CSCstel failed to maintain its profit?

Can anyone analyse and share with us the outcome?

Not bad result on Q to Q, revenue increased, profit increased.
On Y to Y, both revenue and profit are drop, but this is expected by the market d, so overall it is still quite a good result.

Based on SSTEEL latest EPS of 8 sen, it should worth at least RM2.00.

就我个人而言，其实是餐馆，小贩们趁机起价，导致我们消费者减少食用蛋。
从十年前到现在，鸡蛋的价钱都没有很大的改变，都维持在30-40仙。
以前我们在外面茶室吃东西时，加蛋的价格总是50仙，这个价格很合理，因为我们知道蛋的价格是30仙，小贩帮我们打蛋加入我们的食物，给他赚个盈利20仙很合理，所以我们都会不计较的加蛋。
但是现在，在外面茶室吃一餐，加蛋最便宜都要RM1，有些还要求RM1.50，这些都是很过分的价格，因为到现在为止，蛋的价格还是30-40仙，为什么你顺手帮我打个蛋，就要赚我额外的RM0.70 - RM1.20?
所以，我选择了不加蛋，而间接造成了鸡蛋的销售没有成长。

If this QR Chinwell delivered a result of 7 sen, do you think the share price can go back to RM2.30 previous high?
Lets pray and see.

haha.. this ccb really ccb liow.

BabyTA, if you said the result is weak, then probably you are not familiar with this counter.
For me, this result is consider very good for Digistar. Anyway, let see how the market react.

Now I know why JAKS share has been surged so much for the past few months, because of him... Ok, tomorrow should unload my JAKS first! hehehe

Anyone knowing when the new terengganu hospital will be operate?

After SILK highway disposed successfully, SILK will become a pure O&G player.
It will ride on the uptrend oil.

Forward PE = 8.6 x 4 = 34.4 sen

Based on PE 9 times, the share price can go as high as RM3.10.

Let put a discount of 30%, SSTEEL should be at RM2.16 level.

So short term target RM1.60 is achievable.

Long term target is RM2.16, if next quarter SSTEEL produce the same or better result as current quarter.

Yup, old news. But what moneykj try to highlight here is there is very high possibility that the RM66 mil will be reflected in coming QR.

My 6 cents told me that the result will be same like CSCSTEEL, it has been reflected in the share price since last month.

Calvin Tan, don't you think that a company who has RM1 billion assets, but only can generate RM13 mil revenue, and RM1 mil profit per quarter is very lousy?

Compare with Inno, that company only have around RM400mil assets, but can generate RM41 mil revenue and RM13 mil profit per quarter.

But anyway, your above portfolio is much much better than tiger, I'm glad you didn't buy Tiger.

Erm... I remember that day you said you have bought 1 million unit of TIGER.
Why it is not in your portfolio?

Two years ago, there is one forumer name "Datuk", last time he always claim he know Vincent Tan very well, and "Datuk" made a lot of money from BJCORP.

Where is the Datuk now?

newbb, as I mentioned last time, SSTEEL increase its borrowing to payoff its trade payable. This is because majority of its trade payable are in foreign currency, as MYR is weakening every month, it is a smart decision made by the management, to reduce the exposure in foreign exchange.

Now the company back on the track and can continue generate more profit, so I believe very soon company can announce bonus issue. (unlikely will declare high dividend, as this company need to reserve more cash on hand).

Once bonus issue announce, many ICULS holder will convert their ICULS to mother share, and company can save the interest cost, but EPS will be diluted as well.

I also BIG Like!! Thumbs up for Zefftan

Be aware that rubber raw material price has increased a lot recently..
All glove counter profit margin will be eaten by the raw material price..
Hard to transfer price to buyer, as now glove market are very competitive, supply more than demand.

TheContrarian, I found that you are much much more smarter than the headless chicken Calvin.. I agreed with your comments, the all plantation land that Dutaland hold is treeless, that why its revenue contributed from Plantation segment are so low.

Last year Dutaland got some announcement on the Kenny Height land right (together with Olympia), do you mind to further elaborate the transaction to us, such as what is their plan on the land, so far any development project carried on there, what is the profit sharing between olympia and dutaland?

Beside that, do you have any update on the Grand Duta Hyatt Hotel? Last year I passed by I saw got worker putting on the safety net on the construction area, but not sure what is the current progress. If you know, please share more to us.

MrPauper, I'm just small potato, my 30% gain is less than 3% gain that you made, haha! But anyway, let's hope SSTEEL present a nice quarter report, and hope it can be the first counter that limit up in Year 2017. Cheers!

MrPauper, good to know that got ample of time to collect, but sad to said that I got no $$ to collect.. All $$ went in d

Sherlock, don't worry, my vietnam freight forwarder friend said the pollution case doesn't affect the operation of Chin Well Factory. However, as mentioned earlier by the ChinWell Director, the export to Europe are dropping, due to competitive from China, and slow demand for industrial fasterner. So now their Euro Market mostly depends on the DIY product.

1 billion market cap doesn't mean share price sure will hit RM2.86, maybe company achieve it through right issue, private placement, Esos..etc. I am not familiar with this company, so I can't comment more,

MrPauper, I though Southern Steel HRC plant has shut down since the new production line cannot operate? Did Souther Steel have other HRC Plant? Please advise.

Chong Chin Meow, did you notice Datuk disposed 32 million share @ 4sen, and now you bought 1 million @ RM0.045.
Did you ask yourself, why Datuk dispose so many share?

WealthWizard, are you still on CNY Holiday leave?
We are waiting for your report, hope can see you publish it as soon as possible.

who is lexcts, why you keep looking for him/her?
He/she can help us to push CSCSTEEL to RM2.50?