A lot of land purchased by IWCity is still covered with water and not reclaimed yet. We can checked this out from the news and articles.

Apart from STP 2 reclamation, E&O has a lot of solid land. More than 300 acres in Gertak Sanggul (Penang), some land in STP 1, more than 130 acres in Elmina (Shah Alam), 2 pieces of land near to KLCC and 200 acres in Johor Baru.

STP 2A will be completed in second half of 2018. Nowadays, land reclamation is fast especially done by Chinese contractor. Their speed is very fast. If we look at other project, Forest City as a reference, it started reclamation in 2015. By today, one mall is aldy opened, many blocks of building is in progress now.

E&O planned to launch their first project in 2019.

Agree with you, Stockmanmy.

Just compare IWCity with E&O

E&O
Land : Some existing, some under reclamation.
RNAV : RM6.10 (Affin Hwang, The Edge)
Share Price : RM 1.93 ( 32% of RNAV)

IWCity
Land : Some existing, some under reclamation.
RNAV : RM4.50 (The Edge)
Share Price : RM 2.93 ( 65% of RNAV)

So now, the price will increase or not?
My answer : It is actually Terry Tham vs Lim Kang Hoo
If Lim Kang Hoo is able to attract investors to trade IWCity at 65% of RNAV, is Terry Tham able to do that or not?

Gurney Drive is now built with a row of shopping malls, hotels, night spots and condominiums. It is called the millionaires row. The new developments that are in progress there now are all more than 40 storeys tall. STPs is just across a short bridge. This shows you the potential of STP 2.

Singapore has Marina Bay, KL has Bandar Malaysia. STP 2 will be the Penang version. These 3 areas have the same features. They are big enough, near to the existing CBDs and totally new areas which can be planned by metropolitan planners. The bridges, roads, commercial zone, high rise residential zones, shopping belt and parks can be properly planned. Just like Marina Bay will be the most valuable area in Singapore, STP 2 will be the most valuable CBD for Penang.

Look at its location, it is near to the existing CBD and Gurney Drive. The new highway and future LRT will pass through the area. The two most famous shopping malls, Gurney Plaza and Gurney Paragon are just across the future bridge that will be built from STP 2.

I think E&O should find a more glamour name for STP 2. Something as attractive as Marina Bay and Bandar Malaysia,

KWAP went in at the implied land price of RM530 / sq.ft.. It is positive to E&O as the land is valued at such a good price eventhough it is not completely reclaimed yet. By the time the reclamation is completed and the land buyers can physically view the land, it can easily fetch more than RM800 / sq. ft.

Ok! Thks, Lcsw.

Dusti, let us hope it is good news.

PenquinDad, u are sure it is bank syndicated loan and not local fund?

The Edge reports today that E&O is in talk with a local fund to invest up to 40% of STP2A. It is good news.


http://www.theedgemarkets.com/my/article/eo-finds-partner-kick-start-stp-phase-2a-%E2%80%94-sources

Takashi Sorimachi, is the good news still there or the new project has been called off?

This counter is still cheap. It has gone up in lesser percentage as compared to TAGB.

Lcsw, is it 12,000 or 12,200 shares? Did the management mention that the exercise price will be revised to exactly RM1.55?

Dusti, takeover is possible only if Terry can get a loaded party/ parties to work together with him. If he works alone, I think the fund involved is too massive for him.

Sorry, I don't have target price. I am keeping for long term.

Kilerprice007, hope you will make money.

Investors buy into E&O mainly because of the land reclaimation of the 760 acres in STP2. The earnings from the reclamation will be massive. Its development is secondary comparatively.

However, E&O is quite successful in its recent launchings. The 2 blocks of Tamarind condos in STP is almost sold out. The Amaris n Ariza high end by the sea link houses in STP are the final pieces of landed properties in STP. Both launches are well received by the market. In near future, they will launch a condo project in Jalan Kia Peng, KL and the first phase of Elmina Wellness City in Shah Alam.

TA starts to inch up again after a week of consolidation. It is good that some consolidation took place to clear off the possible sellers and contra players.

I think CCCC, the reclamation contractor will take up some land n become strategic partner for STP2. This will be a positive news as CCCC will help develop and quicken the development of STP2 as a whole. STP2 will also be the Northern Malaysia business hub for Mainland Chinese corporations.

Almost every property counter has risen. Some of them rose more than 100% like Ekovest and IWC. This is the one and only who is still sleeping.

Moving up again. RM1.97 now.

SharePlayer, your eyes are sharp.

start moving again after some consolidation. RM1.91 now.

singh1, that is very true. Ha ha!

We can only find this kind of cheap sales in Bursa Malaysia. We can not find this mispricing in other part of the world. Malaysian investors are not sophiscated enough and they see this piece of gold as stone.

We can only find this kind of cheap sales in Bursa Malaysia. We can not find this mispricing in other part of the world. Malaysian investors are not sophiscated enough and they see this piece of gold as stone.

MKH is having a preview on TR Residence in Jalan Tun Razak, KL (A highrise condo with GDV of more than RM400mil). The project is in walking distance to MRT, Monorail and LRT stations. This is one of the few project that has access to a few modes of transportation within walking distance. It will definitely sell well even though at this slow market condition because the location is too attractive to the smaller pool of prospective buyers.

E&O will launch the first phase of wellness center in Elmina West in Selangor by end of this year or early next year. This will be the second wellness center after Avira Wellness Center in Iskandar Johor. These 2 projects will provide future development for the next 10 to 15 years worth about RM8bil to RM10bil in total.

However, the jewel of the crown is still STP2 which will be the game changer for E&O once the reclamation is completed.

It is good to inch up slowly. There will be fewer contra players and the price will be more sustainable.

Tksw, where did you get the news that W Hotel will only be opened in Feb 2019. From the progress at the site, it looks like the hotel can be opened within 6 to 9 months time. Even the glass curtain wall is almost completed. Why need another 2 years? Why Trop wants to delay the opening?

It is good to inch up slowly. There will be fewer contra players and the price will be more sustainable.

Thks! Takashi.

Kenken85, I am not worry to tell the truth. In fact, you will be surprised that not many will believe the information that they get. Most ppl are more happy to get tips on speculative counters to earn fast money than to invest for long term.

Yes, boss is buying.

Is the big project mentioned by Takashi Sorimachi still on? Delayed or called off?

With the completion of Vancouver project and planned sales of Little Bay Cove land, Tiah junior may concentrate on developing its Malaysian landbank and managing the 7 hotels TAGB owned worldwide. The Damansara Avenue project, KLCC land, Bukit Bintang land and Dutamas project will require his leadership to uplock their values. The 7 hotels also need his supervision to increase their yields as mentioned by Tiah junior in an interview last year.

I put a lot of faith in both TA n TAGB.

With the completion of Vancouver project and planned sales of Little Bay Cove land, Tiah junior may concentrate on developing its Malaysian landbank and managing the 7 hotels TAGB owned worldwide. The Damansara Avenue project, KLCC land, Bukit Bintang land and Dutamas project will require his leadership to uplock their values. The 7 hotels also need his supervision to increase their yields as mentioned by Tiah junior in an interview last year.

I put a lot of faith in both TA n TAGB.

Something for us to think about.

As we can see, the market is willing to pay 40 times to 50 times PE for counters like IHH and KPJ and the analysts are still calling "Buy". They argue that the profits are growing.

For proprty counters, we are now at the lows of property market. The share prices of many property counters have come down more than 50% from their highs about 2.5 years ago. We expect their profits to grow in the next few years after it hit its bottom in near future (nobody is able to tell you when). Shoudn't we pay a higher PE because we expect the property market and the profits to grow in the near to medium terms.

There will always be some ups and downs in quarterly earnings especially for construction and development counters like MKH. The recognitions of progress claim can not be even out fairly among the quarters. Work done for this quarter sometimes can only be recognised in the next quarter. Therefore, don't be too carried away by the less bouyant quarterly profit. Look at the whole picture from at least a yearly perspective. I am confident that MKH will make more than RM0.50 for this financial year.

The current poor property market condition started more than 2 years ago. However, MKH has still performed fairly well in development segment. It is still having fairly good sales in hand and expected to have good sales for this and next financial years. It has a few ongoing and upcoming projects to be launched this year which are near to MRT including Saville Cheras, TR Residence in Jalan Tun Razak, MKH Boulevard 2, Prima Housing in Kajang and Kajang 2.

For Kajang 2, MKH has purposedly shelved the launchings in the last few years because they are waiting for the MRT and the two flyovers leading to kajang 2 to be completed. MRT will start operation in May 2017 and the flyovers will be ready soon. MKH will start to launch their products in Kajang 2 again. MKH has more than 400 acres in Kajang 2 (including Kajang 2 South) and they are going to bring in good profits in future. Sales are expected to be good due to its linkage to MRT (via KTM) even though in the current soft property market condition.

Just judge yourself, a well managed company trading at 6 times PE, is it cheap?

Fair value adjustment is also profit to the company. That means the company has property or properties that worth more than the value accounted for in the book. The adjustment is definitely good especially to a property company like KSL.

Based on the last quarter results already announced, most plantation companies did very well. I am hopeful MKH last quarter results will be good.

Dusti, it takes another 1.5 years for first island of the reclamation to be completed and another 2 years to reclaim the second island. In total, the company needs 3.5 years to realise its values.

Singh 1, the positive side of the possible sale are profit can be realised immediatelyand the debt gearing can be brought down to make the counter more attractive. TAGB has many properties and selling one or two pieces to make the balance sheet more attractive may be a good move.

Singh 1, the positive side of the possible sale are profit can be realised immediatelyand the debt gearing can be brought down to make the counter more attractive. TAGB has many properties and selling one or two pieces to make the balance sheet more attractive may be a good move.

Singh 1, thks for your link for the proposed Little Bay Cove land sales. This is a positive news to both TA and TAGB. The proposed land sales will help TA n TAGB to realise its profit immediately.

Based on the 2015 Annual Report, the land is carried in the book at RM417.1mil. (After minus out the land used for Illume (Phase 2) development.

If the land can be sold at A$280mil (RM961.2mil), the profit from this disposal will be RM544.1mil. The profit is about 130% from the amount stated in the accounts.

Like what I said earlier, almost all the properties of TA n TAGB are situated in very prime locations. Its Little Bay Cove land is one the last few suburb development land remaining in southeastern side of Sydney. We had also seen that the NTA (net tangible assets) of TA n TAGB are highly underestimated with the 130% profit just to sell the land. Some of its properties like KLCC land, hotels in Sydney, Melbourne, Singapore and China have the actual present market values more than 3 times the net book values in the accounts.

Singh 1, thks for your link for the proposed Little Bay Cove land sales. This is a positive news to both TA and TAGB. The proposed land sales will help TA n TAGB to realise its profit immediately.

Based on the 2015 Annual Report, the land is carried in the book at RM417.1mil. (After minus out the land used for Illume (Phase 2) development.

If the land can be sold at A$280mil (RM961.2mil), the profit from this disposal will be RM544.1mil. The profit is about 130% from the amount stated in the accounts.

Like what I said earlier, almost all the properties of TA n TAGB are situated in very prime locations. Its Little Bay Cove land is one the last few suburb development land remaining in southeastern side of Sydney. We had also seen that the NTA (net tangible assets) of TA n TAGB are highly underestimated with the 130% profit just to sell the land. Some of its properties like KLCC land, hotels in Sydney, Melbourne, Singapore and China have the actual present market values more than 3 times the net book values in the accounts.

The main reason u buy into E&O is STP2.

STP2 will be a 760 acre reclaimed island.

Assume market value of reclaimed land --- RM600 / sq ft (Current market price of surrounding land is RM800 to RM1000 / sq ft)
Cost of reclamation --- RM150 / sq. ft.

Assume 85% net usable land = 646 acres

Profit for the whole reclamation = RM12.66bil

Profit per share = RM10.07.
Compare that to the current share price, RM1.87 per share. Don't you thinlk it is lelong price.

Remember, this is just profit from the land reclaimed. When it is developed, there will be additional profits from development.

That is the reason Terry Tham bought at RM2.90 per share from Sime Darby. He was supposed to retire in the UK, but was too tempted and bought into it because RM2.90 was too cheap for him to walk away.

Just see how quiet is this thread. That means not many retail investors are involved. Price has moved up to RM1.87 without much retail participation. Purely rising because of fundamentals and future prospect of STP2.

Heavy buying. Up 5.44% in first 30 minutes of trading. Its projects namely Star Residences, Twy and Union Suites are going to bring in hefty profits. Share price will move up together with the profits.

The current price for TAGB is unreasonably low. Market has wrongly price it too low. We will see uptrend for the next few months.