Based on the projected revenues and after-tax profits of Paramount, the company will be doing well at least for the next three years. The unbilled sales have increased to RM866mil as at 30/6/18. Its education segment will witness profit growth of 5% to 10% per annum. It is also expected that some lands or investment properties will be monetised with substantial gains on disposal. Therefore, the share price will move up when the profits increase quite substantially for the next few years.

The CEO is an accountant with experience in banking for several years. He is a professional manager and he knows that his performance is entirely judged by results and not by empty promises.

His performance for the last 3 years and 2019

Property Sales
2016 RM420mil
2017 RM842mil
2018 RM1,000mil (by the 1H/18, RM598mil sales concluded. Need to do only RM402 mil in 2H/18)
2019 ???

I believe that he is definitely planning to do more than RM1bil (may be RM1.3bil) in 2019. He has already lined up the launchings of Berkeley Uptown in Klang, commercial building in Atwater, Section 13, PJ and more phases in Utropolis Batu Kawan. It is good to have a responsible and dedicated professional CEO who knows what the market (especially the big boss and shareholders) wants. He is pushing himself to achieve the target so that the share price will rise in line with the performance of the results. Everybody is benefitted including the major shareholders, minority shareholders and the CEO himself.

Generally, STP2A has been completely reclaimed and all the land titles have been issued. E&O sold 6 plots of land (bulk sales) to the Tier 1 pioneer investor KWAP at discounted prices (about RM500 to RM550 per sq.ft) about 2 years ago. That land sale was carried out to bring in cash to finance the ongoing reclamation work then.
With the land plots can be physically witnessed now, E&O targets to sell some of the remaining plots to potential building owners or developers at the prevailing market price which I think should be between RM700 to RM900 per sq.ft). Preference will be given to potential buyers who intend to develop the land fast and preferably with iconic buildings.

@Calvintaneng and TheContranian, your idea that TT may engage a series of two or more MGOs to achieve his plan, that is possible but the process will take at least one or few years longer.

TT as the major shareholder will surely want to pay the least possible for the shares not owned by him. It is free market, we as the minorities have the rights not to sell if the offer is too low. Unless he raises his offer price, I think not many will sell something worth RM3.01 at the price of RM0.66 a share.

I have written an analysis on TA Enterprise MGO titled

"TA ENTERPRISE - MANDATORY GENERAL OFFER ANALYSIS"

Please read before you make your decision on your acceptance of the offer.

The offer has been concluded to be "UNFAIR" and "UNREASONABLE".

@coffee, it is good to share and obtain valuable information on i3 platform.

I feel pity with KYY. He bought too much and it has become his responsibility to support the price. I think for a passive shareholder, it is better not to buy more than 10%.

@dusti, I am self employed, not working in corporate.

Thks! DK66. If that is true, RM450mil is created as profit for Jaks. At the same time, RM1,050mil is created for CPECC's 70% share. In total, the value of the project is jacked up by RM1,500mil so that it will be accounted as construction profit to cover their supposed capital injections. However, the is a negative consequence for this. More interest payment will be paid and eventually be reducing profits in the future.

In the previous annual report, it was stated that Jaks has to inject USD110mil (RM450mil) into the Vietnam power plant JV as capital. Anyone knows if Jaks has already pumped in the money? If Jaks does not have the money, what will happen?

Simple analysis on Jaks. Jaks has two main businesses.

1) Development
Evolve Mall has been completed but it is still incurring losses. It is expected to continue losing money for the next few years.
Pacific Star is badly behind schedule. The court has ordered the RM50mil bank guarantee to be released to The Star. However, Jaks has more penalty to pay. It has to pay LAD ((usually 8% per annum) to all the purchasers of the office suites and residential units for the work delay. If the completion date is 3 years behind schedule from the date stipulated in the S&P agreement, it has to pay a whopping 24% of the purchase price as LAD.

2) Vietnam Power Plant
Everybody is predicting that the profits will be as high as YTL Power's already expired (a few years ago) IPP contract in Malaysia. However, the truth is YTL Power's new 3-year power supply contract with TNB and its Singapore's Seraya Power Plant have thin profit margins. It is dangerous to assume that the profit margin will be the same as YTL Power's IPP contracts in Malaysia many years ago. When we want to analyse the Vietnam Power Plant profit margins, we can see that not much information is released by Jaks for its power plant venture. We are unable to get the information on the unit selling price, amount of loan and its interest rate charges from the Chinese banks. Without this information, forecasts of future profit is impossible.

@cswong11,

Datuk has made an offer at RM0.66 per share. You will not be foreced to sell to Datuk at a price lower than RM0.66.

@Fabien Extraordinaire,

It is actually TA3 & TA4. The land is about 2.47 acres and worth about RM3,900psf or RM420mil in total value. If the land were to be sold, TA would make a profit on disposal amounting to RM344mil as TA's cost was about RM76mil.

I think should be still ok to buy and keep for long term. Undervalued company.

Guocoland's Phase 1 condo project (592 units) in Alam Damai, Cheras is selling well. Confirmed sales has reached 60% mark. Company will be launching the remaining Phase 2 condo units (786 units) and 181 units of landed property in the first quarter of 2019. The total GDV of emerald Hills is RM900mil.

@hopetobecorrect, your view that the assets of the target privatisation company should be revalued is really constructive. It is workable and correct from every aspects. Bursa and SC should really think about it and put it as a requirement. It is also making the items in the balance sheet showing true and fair figures. The balance sheet should shows the present and up to date figures, not historical figures like the existing balance sheet is showing now. After this, the RNAV will become the NTA in the balance sheet.

Just sharing for ppl to understand that we should look at RNAV instead of NTA. RNAV is the actual and the correct NTA to refer to. For TA Ent, the actual NTA should be RM2.50 per share.

Therefore, Datuk's offer at RM0.66 is only 26.4% of the actual value. In simple words, he wants to buy your RM2.5million bungalow at the price of RM660k. Offer is too bad. Don't sell.

The investing community (retail, institutional, mutual funds and retirement funds) has to partly blame themselves for being taken advantage by the major shareholders. They don't see the low price as a bargain. Some are also not willing to buy but prepare to sell at the low price. As a result, KSL is trading at the current low price level.

The reason is the major shareholders want the share price to remain low so that they can collect cheaply. They can make more money by collecting the shares at low price. If possible, they would like to buy all the shares of the company.

They will not revise unless Bursa changes the Financial Reporting Standards (FRS), requiring them to revalue their landbanks every fixed interval (may be every 3 years).

Upsidedown119, you are right. KSL is well run. They are building new investment properties for recurring rental and room rate incomes. Last month, they just opened another new hotel, KSL Hotspring Resort Hotel in Taman Daya, JB.

Their other existing investment properties including KSL City Resort Hotel and KSL City Mall are doing extremely well and making a lot of money. We should praise the CEO and management for the good jobs done.

Like what you said, they are building KSL City Mall 2 in Klang now.

May be it will be clearer if I write it in this way.

"If you are the major shareholder of KSL and still have a lot of spared money, what will you invest? You definitely will buy more of the shares of KSL which is selling at about 30% of its actual value. You will not invest in other assets that are offering at the current market price."

If you are the major shareholder of the company and still have lots of spared money, what will you invest? You definitely will buy back the shares of your company which is selling at about 30% of the actual value. You will not invest in other new property or new business that are offering at the current market values.

More than 10 years ago, companies are allowed and encouraged to revalue their landbanks. Therefore, the NTA would reflect the actual market values of the landbanks. However, the subsequent FRS (Financial Reporting Standards) by Bursa requires the landbanks to be carried at cost. This new requirements is suitable for companies who bought lands for immediate developments like SDB, Hua Yang, MCT, Thriven and Sunsuria.

However, there are some companies that bought their development landbanks and keep them for a long time, between 10 years to as long as 40 years in some cases. The NTA in this type of companies is grossly underestimated. As the NTA does not show the true picture of the company, the financial analysts then create a new term for the actual NTA when the current market values of the properties are calculated. They name it RNAV (Revised Net Asset Values). In fact, the RNAV is actually the NTA of the development companies.

I would say Bursa has set the wrong FRS and enable the property counters to grossly underestimate their NTAs and hence artificially suppress the share price of the property counters. The major shareholders are very happy with this because they can buy back the shares from the market either in their personal capacities or company share buybacks at very low price. That is the reason that there were so many privatisations taken place in these few years in property counters.

This includes Hunza, OSK Property, PJ Dev, Wing Tai and a few more. The two ongoing mandatory general offers are TA and TAGB. The major shareholders are taking advantage of the wrong situations and ignorant of the general retail shareholders. If Bursa Malaysia does not revise the FRS and corrects the situations, more and more companies will be privatised. The counters that fall into this catogery are E&O, MKH, Paramount, Oriental, TA, TAGB, KSL, Tropicana and some others.

Many of the retail investors do not have the financial knowledge and are fooled by the wrong situations. For me, I am equipped with the financial knowledge and many years of experience in Bursa to witness and realise the wrong development took place.

More than 10 years ago, companies are allowed and encouraged to revalue their landbanks. Therefore, the NTA would reflect the actual market values of the landbanks. However, the subsequent FRS (Financial Reporting Standards) by Bursa requires the landbanks to be carried at cost. This new requirements is suitable for companies who bought lands for immediate developments like SDB, Hua Yang, MCT, Thriven and Sunsuria.

However, there are some companies that bought their development landbanks and keep them for a long time, between 10 years to as long as 40 years in some cases. The NTA in this type of companies is grossly underestimated. As the NTA does not show the true picture of the company, the financial analysts then create a new term for the actual NTA when the current market values of the properties are calculated. They name it RNAV (Revised Net Asset Values). In fact, the RNAV is actually the NTA of the development companies.

I would say Bursa has set the wrong FRS and enable the property counters to grossly underestimate their NTAs and hence artificially suppress the share price of the property counters. The major shareholders are very happy with this because they can buy back the shares from the market either in their personal capacities or company share buybacks at very low price. That is the reason that there were so many privatisations taken place in these few years in property counters.

This includes Hunza, OSK Property, PJ Dev, Wing Tai and a few more. The two ongoing mandatory general offers are TA and TAGB. The major shareholders are taking advantage of the wrong situations and ignorant of the general retail shareholders. If Bursa Malaysia does not revise the FRS and corrects the situations, more and more companies will be privatised. The counters that fall into this catogery are E&O, MKH, Paramount, Oriental, TA, TAGB, KSL, Tropicana and some others.

Many of the retail investors do not have the financial knowledge and are fooled by the wrong situations. For me, I am equipped with the financial knowledge and many years of experience in Bursa to witness and realise the wrong development took place.

More than 10 years ago, companies are allowed and encouraged to revalue their landbanks. Therefore, the NTA would reflect the actual market values of the landbanks. However, the subsequent FRS (Financial Reporting Standards) by Bursa requires the landbanks to be carried at cost. This new requirements is suitable for companies who bought lands for immediate developments like SDB, Hua Yang, MCT, Thriven and Sunsuria.

However, there are some companies that bought their development landbanks and keep them for a long time, between 10 years to as long as 40 years in some cases. The NTA in this type of companies is grossly underestimated. As the NTA does not show the true picture of the company, the financial analysts then create a new term for the actual NTA when the current market values of the properties are calculated. They name it RNAV (Revised Net Asset Values). In fact, the RNAV is actually the NTA of the development companies.

I would say Bursa has set the wrong FRS and enable the property counters to grossly underestimate their NTAs and hence artificially suppress the share price of the property counters. The major shareholders are very happy with this because they can buy back the shares from the market either in their personal capacities or company share buybacks at very low price. That is the reason that there were so many privatisations taken place in these few years in property counters.

This includes Hunza, OSK Property, PJ Dev, Wing Tai and a few more. The two ongoing mandatory general offers are TA and TAGB. The major shareholders are taking advantage of the wrong situations and ignorant of the general retail shareholders. If Bursa Malaysia does not revise the FRS and corrects the situations, more and more companies will be privatised. The counters that fall into this catogery are E&O, MKH, Paramount, Oriental, TA, TAGB, KSL, Tropicana and some others.

Many of the retail investors do not have the financial knowledge and are fooled by the wrong situations. For me, I am equipped with the financial knowledge and many years of experience in Bursa to witness and realise the wrong development took place.

More than 10 years ago, companies are allowed and encouraged to revalue their landbanks. Therefore, the NTA would reflect the actual market values of the landbanks. However, the subsequent FRS (Financial Reporting Standards) by Bursa requires the landbanks to be carried at cost. This new requirements is suitable for companies who bought lands for immediate developments like SDB, Hua Yang, MCT, Thriven and Sunsuria.

However, there are some companies that bought their development landbanks and keep them for a long time, between 10 years to as long as 40 years in some cases. The NTA in this type of companies is grossly underestimated. As the NTA does not show the true picture of the company, the financial analysts then create a new term for the actual NTA when the current market values of the properties are calculated. They name it RNAV (Revised Net Asset Values). In fact, the RNAV is actually the NTA of the development companies.

I would say Bursa has set the wrong FRS and enable the property counters to grossly underestimate their NTAs and hence artificially suppress the share price of the property counters. The major shareholders are very happy with this because they can buy back the shares from the market either in their personal capacities or company share buybacks at very low price. That is the reason that there were so many privatisations taken place in these few years in property counters.

This includes Hunza, OSK Property, PJ Dev, Wing Tai and a few more. The two ongoing mandatory general offers are TA and TAGB. The major shareholders are taking advantage of the wrong situations and ignorant of the general retail shareholders. If Bursa Malaysia does not revise the FRS and corrects the situations, more and more companies will be privatised. The counters that fall into this catogery are E&O, MKH, Paramount, Oriental, TA, TAGB, KSL, Tropicana and some others.

Many of the retail investors do not have the financial knowledge and are fooled by the wrong situations. For me, I am equipped with the financial knowledge and many years of experience in Bursa to witness and realise the wrong development took place.

More than 10 years ago, companies are allowed and encouraged to revalue their landbanks. Therefore, the NTA would reflect the actual market values of the landbanks. However, the subsequent FRS (Financial Reporting Standards) by Bursa requires the landbanks to be carried at cost. This new requirements is suitable for companies who bought lands for immediate developments like SDB, Hua Yang, MCT, Thriven and Sunsuria.

However, there are some companies that bought their development landbanks and keep them for a long time, between 10 years to as long as 40 years in some cases. The NTA in this type of companies is grossly underestimated. As the NTA does not show the true picture of the company, the financial analysts then create a new term for the actual NTA when the current market values of the properties are calculated. They name it RNAV (Revised Net Asset Values). In fact, the RNAV is actually the NTA of the development companies.

I would say Bursa has set the wrong FRS and enable the property counters to grossly underestimate their NTAs and hence artificially suppress the share price of the property counters. The major shareholders are very happy with this because they can buy back the shares from the market either in their personal capacities or company share buybacks at very low price. That is the reason that there were so many privatisations taken place in these few years in property counters.

This includes Hunza, OSK Property, PJ Dev, Wing Tai and a few more. The two ongoing mandatory general offers are TA and TAGB. The major shareholders are taking advantage of the wrong situations and ignorant of the general retail shareholders. If Bursa Malaysia does not revise the FRS and corrects the situations, more and more companies will be privatised. The counters that fall into this catogery are E&O, MKH, Paramount, Oriental, TA, TAGB, KSL, Tropicana and some others.

Many of the retail investors do not have the financial knowledge and are fooled by the wrong situations. For me, I am equipped with the financial knowledge and many years of experience in Bursa to witness and realise the wrong development took place.

Major shareholder usually makes the most money from privatisation. The following example shows very clearly about this. Symphony House was bought over by its chairman Tan Sri Azman at RM60mil in 2014 and sold at RM164.1mil to Boardroom 4 years later. He laughs all the way to the bank with RM104.1mil profits. Minorities are always on the losing side as many of them do not have the financial knowledge.

Minorities do not look at the real value of the company. What they know is the property market not good. Don't buy property stock. I give you a very good analogy for the current TA offer. Do you sell your semidee that you have bought at RM1.45mil many years ago for RM660k as the property market is not good. Worst still is that semidee worths much more today. Minorities, don't sell at 66 Sen.

http://www.theedgemarkets.com/article/boardroom-take-over-symphony-hou...

https://www.thestar.com.my/business/business-news/2014/03/27/azman-and...

Major shareholder usually makes the most money from privatisation. The following example shows very clearly about this. Symphony House was bought over by Tan Sri Azman at RM60mil in 2014 and sold at RM164.1mil to Boardroom 4 years later. He laughs all the way to the bank with RM104.1mil profits. Minorities are always on the losing side and victimised as many of them do not have the financial knowledge.

It is not surprising that Tan Sri will do the same for Symphony Life now at the current low price, way below its real value.

https://www.thestar.com.my/business/business-news/2014/03/27/azman-and...

Many people who invest in TAGB still lose money because they had bought it at a higher price. Actually, they have picked a right counter but the market price remains low as the market is unaware of this hidden gem. Tony knew very well about the company and had been slowly accumulated TAGB for the last 18 months until the minimum shareholders' spread reduces to below 25%. After that, he started to buy into TA until it crossed the 33% threshold and triggered the MGO. Please do not lelong your shareholdings and sell them away at such a cheap price. Tony wants your shares at a cheap and unfair price. Unless he increases the offer price to at least RM1.20, otherwise just don't sell to him.

@Chang24, many people who invest in TAGB still lose money because they had bought it at a higher price. Actually, they have picked a right counter but the market price remains low as the market is unaware of this hidden gem. Tony knew very well about the company and had been slowly accumulated TAGB for the last 18 months until the minimum shareholders' spread reduces to below 25%. After that, he started to buy into TA until it crossed the 33% threshold and triggered the MGO. Please do not lelong your shareholdings and sell them away at such a cheap price. Tony wants your shares at a cheap and unfair price. Unless he increases the offer price to at least RM1.20, otherwise just don't sell to him.

@Klixklix, you are right! During IPO in 2009, price was RM0.50. The land and properties have appreciated two or three times since 2009. How can the price become RM0.31? Just to give you an example, the KLCC land has appreciated from RM550/sq.ft. to RM3,500/sq.ft. today which is 536%. The Sri Damansara land has increased from RM87/sq.ft. to RM500/sq.ft. today, an increase of 475%. The real value of TAGB should be RM1.20 and not RM0.31.

Value investor, Tong Kooi Ong starts to turn positive towards the property sector. The price of property counters has dropped to a stage that they are too cheap now. It is good news for Mah Sing and Ecoworld in particular and all the property counters as a whole.

https://www.theedgemarkets.com/aa/tong/portfolio

@idka, I agree with you that The Swissotel Merchant Court Hotel market value should be higher than S$1mil per room.

Value investor, Tong Kooi Ong starts to turn positive towards the property sector. The price of property counters has dropped to a stage that they are too cheap now. It is good news for Mah Sing and Ecoworld in particular and all the property counters as a whole.

https://www.theedgemarkets.com/aa/tong/portfolio

The current bad market condition is the best opportunity for merger and acquisition. The offeror can take over a target company at a fraction of the real worth.

The current bad market condition is the best opportunity for merger and acquisition. The offeror can take over a target company at a fraction of the real worth.

Price should go up for the next two days for those purchases to be eligible for the 4.1sen dividend. Comparing to its NTA of RM1.48, price is still cheap.

@dusti, the statutory funds like EPF, Lembaga Tabung Haji and KWAP are taking quite significant positions in E&O. Among the three, KWAP has taking even more aggressive stance by participating directly into the developments of STP2. The first project that is scheduled to be launched in the next 6 to 9 months in STP2 will be a JV between KWAP and E&O.

The statutory funds like EPF, Lembaga Tabung Haji and KWAP are taking quite significant positions in E&O. Among the three, KWAP has taking even more aggressive stance by participating directly into the developments of STP2. The first project that is scheduled to be launched in the next 6 to 9 months in STP2 will be a JV between KWAP and E&O.

Please go through the post and refer to reports from other sources as well. The post I wrote is based on my studies on the company from various sources available. Do your own judgements before you invest.

Most of the investors are making losses since 2015. They may have selected one or two counters that make a lot of money, but their portfolio as a whole are making losses.

Keeping 11.57% and being a passive investor in E&O is meaningless to Sime Property. Sime Property has to either sell the shareholdings away or increase its stakes. Sime Property bought the shares about 5 years ago at RM2.30 a share. It means Sime Property will be making losses if they sell them away at the current price. They also risk being looked foolish when the share price climb to a much higher level in the next few years.

Why Sime Property had bought into E&O at RM2.30 a share in 2013 in the first place? They must have hired professionals to calculate, performed due diligence and found out that it worth more than RM2.30 a share. I think Sime Property should take advantage of the current low price level to increase its stakes or talk to Lembaga Tabung Haji if they intend to sell its stakes. Lembaga Tabung Haji was seen reducing its shareholdings in the open market recently.

The Sime Property Dilemma - What To Do With Investment In E&O?

On 27/9/2016, Sime Darby sold 10% of its 22.2% shareholdings in E&O at RM2.45 per share. One of the reasons may be the investment is in an opposition state. However, Pakatan Harapan has won GE14 and Penang is now ruled by the ruling party. Should Sime Property relook into its investment strategy in E&O? The answer should be "Yes". Sime Property should look into its strategy and what they should do with its remaining investment of 11.57% in E&O?

The waiting or gestation period is over. The harvesting phase has begun.

The 1st island of STP2 has been fully reclaimed. 20% of the development land has been monetized and sold to KWAP. Profits from the sales will be recognised within the next two years progressively according to infrastructure milestone constructed.

The construction work of the bridge linking the mainland to the island has commenced and is scheduled to be completed by 2020. Furthermore, the first development in the island will be launched within 6 months to 9 months from now.

When all these happened, the investors can visualize the real value of the whole development. E&O share price will be on uptrend inline with the increase in awareness of the investing community on the real values of the island.

Thks for sharing. I will go through, digest and incorporate the good ones into my investment strategy.

Looking at the PE ratio of 3.93 times and Price to Book ratio of 0.45 times, RM0.66 is still very cheap for investors to buy into the company.

The new government has indicated a few times that they together with Bank Negara will look into ways to increase housing loan amounts to especially the first time purchasers.