Here's the link to download the CIMB report:

https://cimbequityresearch.cimb.com/EFAOnTheWeb/EFAWebAPI/GetDocPDF.asp?A=CIMB&DocGUID=1FE3727F-80A6-4EEF-A328-BDDC9EBBAE85

A successful investment for those who bought early

Manage to briefly attend Union Suites launch on Saturday. Some details:

- According to salesperson (whether accurate or not I don't know), >200 bookings, about 30 have signed S&P
- Units currently open for booking from level 8-31 (apartments are from level 8 to 41, level 42 is facilities floor)
- So 456 units open for booking (19 apartments each floor from level 8-31). Total units: 626 units
- 8% discount for people who book during launch. Booking fee RM10k
- Fully furnished. Maintenance fee at 37 sen psf

Nearby competitor is Sunway Geo Residences 3, but this is bigger units (and hence more expensive) ranging from 988 to 1,772 sq ft.

Interesting. Fatfish (http://www.fatfish.co/our-business/) bought off-market at 29 sen.

From Fatfish website:

Fatfish’s Venture Capital division invests into more mature startup (typically pre Series A or Series A round) across Asia and Australia.

In Malaysia Fatfish’s subsidiary Fatfish Ventures Sdn Bhd has been appointed as a co-investment partner of Cradle, an early stage technology funding agency under the Ministry of Finance of Malaysia. Fatfish regularly co-invests with other venture capital firms in the region and continuously seeks to foster close business relationship with its peers in the regional venture investment space.

Fatfish’s main proposition as a value-enhancing investor is its ability to assist the startups it invests in by making available to the startups its resources and network in the tech eco-system across the geographical markets it operates in, especially in the Southeast Asia region – one of the fastest growth markets in the world.

Fatfish currently operates 4 offices in Singapore, Kuala Lumpur, Jakarta and Melbourne. Each of the Fatfish offices is staffed with key personnel that are equipped to assist companies to roll out their business objectives in the in-country market.

Bro, let me see if I can go for Union Suites launch this weekend (22-23 Apr). I have been too busy lately.

Nothing much I can share now besides what you've alr mentioned. I'm expecting good take up rates for the same reasons as what the COO mentioned in the article. Small built-up sizes at RM880psf shouldn't be too hard to sell I believe.

The project is another high rise development so even if sales is good we still need to wait for the construction progress for Symlife to recognize the profits.

http://www.theedgemarkets.com/article/symphony-life%E2%80%99s-project-bandar-sunway-tap-student-population

Time to switch to SYF

"Long-term cost synergies between SYF and MIECO. The acquisition of 56.76% of MIECO is expected to have a positive bearing on the operations of SYF and MIECO. While unquantifiable at this juncture, we expect meaningful cost savings as MIECO leverages on the enlarged SYF-MIECO entity’s raw material purchases to secure better bargains in its procurement process. Sawdust from SYF’s sawmills and downstream furniture production operations will also be used as raw material for MIECO’s particle board manufacturing operations."

UOB Kay Hian wrote an initiation report on Mieco on 10 Apr.

"Potential merger to entrench MIECO as the largest particleboard manufacturer. With MIECO and SYF having the same controlling shareholder, Datuk Seri Ng, a potential merger between both entities would further entrench MIECO as the largest particle board manufacturer in Malaysia with a combined production capacity of >1,000,000m3 p.a.. We believe an acquisition could entail a potential amalgamation of SYF’s board division into MIECO (or vice-versa) that would allow the group to compete on a regional scale with the larger Thai particle board manufacturers."

If there's a positive M&A between SYF and Mieco, SYF could fly.

Broker must be RHB then?

@kancs3118, I have been tied up with stuff, no time to visit the showroom yet. Have you gone to check it out?

@kancs3118, I'll try and see what I can find out

The Symphony of Value

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5368105

First SCADA contract from Tenaga since Willowglen became one of their few approved SCADA vendors (Remote Terminal Unit suppliers)

Well said.

Hi kancs3118, do you know who the service apartment operator is?

Mayland should understand the unhappiness of minorities.

Imagine if we could turn the table around and ask them to undetake a mandatory offer on L&G at RNAV or even at book value of 63.92 sen. Then see how they would feel.

Come to think about it, Mayland is big enough to privatise L&G. They should do that then they can do whatever they want with L&G - RPT, inject properties, etc

I agree that it is not fair to minorities. I too would advise to vote AGAINST all resolutions.

Why must L&G buy from Mayland at RNAV? Given current property market condition L&G can buy landbank/properties from other parties at a good discount below RNAV.

Mayland probably knows many minorities can't take up the rights issue, so it appears to be the perfect time for them to either dispose their assets at good price or dilute minority shareholdings for their own benefit.

With L&G's strong balance sheet, I believe minorities would have been happier if they geared up or took on borrowings.

Could possibly be a positive spillover effect from Oldtown's recent impressive FMCG segment results.

Also, regional institutional investors could be building a position in Power Root as they seek to gain exposure to FMCG coffee manufacturers in the region.

Probably only just PWROOT and Oldtown in the region now after Singapore's Super Group gets taken private and delisted soon ( http://www.businesstimes.com.sg/companies-markets/pre-conditions-in-takeover-of-super-group-met-by-sapphire-investments )

Recall that some months back Super became a takeover target, analysts said the bid valued Super at a whopping forward P/E of 27x!

Good quarter and even better times ahead.

(continued)

Issues resolved

Moving forward, another positive note for Symphony Life is that obstacles relating to two of its projects have been resolved.

The company's 607ha Bandar Amanjaya township in Sungai Petani, Kedah, had a few years of inactivity due to regulatory approval issues.

But in March, it launched and fully sold its latest phase comprising 417 units of single-storey terrace houses on some 16ha of freehold land. The project has a GDV of about RM70 mil.

With the latest launch, Symphony Life has some 150ha of remaining land to be developed in Bandar Amanjaya.

For the next launch, which is expected next year, Hazurin says the company plans to build semi-detached and bungalow units. Average selling prices are quoted at RM300 per sq ft. However, he says the plans are still at the "conceptual stage''.

Tijani Signal Hill, a 51:49 joint-venture project between Symphony Life and the landowner at Signal Hill, Kota Kinabalu, has also obtained the necessary approvals.

The 4ha project was initially expected to be launched last year with an estimated GDV of RM450 mil. It comprises two towers of luxury condominiums and three-storey landed luxury villas.

Hazurin says the company will make changes to the proposed development to better suit market conditions in Sabah.

Hidden value

Apart from a steady growth in profits, some investors like Symphony Life for its hidden value.

The company's 161ha in Sungai Long, which is located close to Bandar Mahkota, Cheras, is said to be its “jewel in the crown”.

"Symphony Life may not be the fastest growing property company, but we see long-term investment value with the company's land in Sungai Long," says the Singapore fund manager.

The land, which has a net book value of RM144.8 mil or just RM8.40 per sq ft, is a substantial asset relative to Symphony Life's market capitalisation of RM215 mil, says an analyst.

Development of the land has been delayed over the years. Last year, a parcel of land measuring about 9ha was compulsorily acquired by the state government for the East Klang Valley Expressway (EKVE).

Hazurin says the authorities acquired the land for about RM15 per sq ft, but Symphony Life has appealed for RM30 per sq ft as it believes the land is worth more than the price it was acquired for.

“Assuming the land is valued at RM30 per sq ft, the 161ha is worth RM519 mil. That is a surplus of RM374 mil or about RM1.30 per share over its net book value of RM145 mil.

"That means Symphony Life's net assets per share of RM2.08 does not quite reflect its true value,” says the analyst.

Hazurin concurs and says Symphony Life's shares are "severely undervalued".

Detailed development plans for the Sungai Long land, he says, will be carried out once the company has more details on how the EKVE will be laid out.

"We want to better prepare the site to have a better township.”

Although the EKVE has further delayed the development, Hazurin says on the upside, the expressway will add value to the development by improving accessibility.

Based on previous preliminary plans, the GDV of the township development at Sungai Long was estimated at RM6-8 bil.

Last week, Focus Malaysia had an article on Symphony Life, issue 196, Sep 3-9:

Symphony Life a hidden gem

Symphony Life Bhd, a property development company helmed by corporate bigwig Tan Sri Azman Yahya is set to see better times.

A chunk of the company's unbilled sales of close to RM1 bil will be recognised as profits starting from the current financial year.

Some from the investment community have also identified Symphony Life as a hidden gem among smaller-capitalisation property stocks. They say the company is trading at a "very large" discount to its intrinsic value - mainly from it owning a 16lha piece of land in Sungai Long, Selangor, which value is set to be unlocked in the coming years.

"In the next 12-18 months, Symphony Life's unbilled sales of about RM1 bil will mean its profits will move in one direction only, which is up," says a fund manager at Island Asset Management Pte Ltd, a fund management company in Singapore.

Symphony Life chief financial officer Hazurin Harun tells FocusM the company was able to recognise only a small portion of its high unbilled sales in FY16 ended March 30, because its major highrise property projects were constructed at the foundation level only.

In FY16, Symphony Life's earnings fell to RM13.2 mil from RM43.9 mil a year ago on the back of revenue declining to RM144.3 mil from RM286.1 mil.

Hazurin says profits from property projects are recognised based on the percentage of completion. With the foundation level completed, construction progress of the entire project will be much faster, and hence, profit recognition from the projects will as well, he says.

This is reflected in Symphony Life's Q1 ended June 30, which was released last week. Its net profit grew more than two-fold to RM4.6 mil from RM2.04 mil a year ago, on the back of revenue climbing 19% to RM47.5 mil.

The company's high unbilled sales are mostly attributed to encouraging sales of its high-end property projects, namely TWY@Mont Kiara and Star Residences.

TWY@Mont Kiara, the first phase of its project in Mont Kiara, Kuala Lumpur, comprises 484 units of all duplex condominiums. The project, with a gross development value (GDV) of about RM400 mil, saw a take-up rate of about 90% and is expected to be completed in 2019.

Star Residences, located at the Kuala Lumpur City Centre, is a 50:50 joint venture with UM Land Bhd. It has an expected GDV of close to RM3 bil.

The development consists of three towers of luxury apartments and five blocks of retail spaces.

The first, known as Residential Tower 1, has seen a 93% take-up. The recently launched residential Tower 2 is about 40% sold. The retail portion, called Signature Retail, is about 53% taken up.

The third residential tower with a GDV of about RM1 bil is yet to be launched. Unbilled sales for the project now stands at about RM1.1 bil.

In addition to its unbilled sales, Symphony Life's future profits will also be supported by upcoming projects worth RM3 bil in GDV. The company targets sales of RM400 mil in FY17, says Hazurin.

Symphony Life's future launches include phase two of its Mont Kiara project, with an estimated GDV of RM400mil. Another project, Union Suites@ Sunway at Bandar Sunway, has a GDV of about RM420 mil.

"Over the years the company has sold its projects while replenishing its land bank,” says the fund manager.

He says Symphony Life has been delivering profits since Tan Sri Azman Yahya took control of the company. He holds an indirect stake of 19.4% in Symphony Life through Gajahrimau Capital Sdn Bhd.

Azman joined Symphony Life (previously known as Bolton Bhd) in 2005. He spent the first few years undertaking a massive clean-up of the company's assets and liabilities, including reducing its high gearing and disposing of non-core assets and businesses.

He is also the founder and chief executive officer of business outsourcing company Symphony House Bhd, which was taken private in December last year.

Focus Malaysia wrote about them in latest issue. The long awaited REIT could finally be happening this year. Let's see.

Focus Malaysia had a write up on Willowglen last week (April 2-8 issue).

Highlights:

- Targeting revenue of RM200-300m in 5 years time.

- FY16 target revenue RM130m.

- Tendering RM400-500m jobs, hopes to get 30-40% of jobs tendered.

- Banking on infrastructure projects, particularly transportation.

- Tendering for LRT3 project, much bigger than the LRT Ampang and KJ extesion line projects which were previously awarded to Willow.

- Targeting Singapore's common services tunnel project worth S$40m.

- Willow became one of the few Scada vendors for Tenaga recently.

- Plans to market products of its recently acquired Canadian company Willowglen Systems Inc, globally.

- Net cash RM44m, 26% of market cap and 36% of shareholders' equity. Debt free since 2003.

- Ex-cash P/E of about 7x, high FCF yields and ROE.

- MD Wong Ah Chiew strong local connections in the construction industry is a positive for Willow.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5028261

http://www.thestar.com.my/metro/community/2016/02/23/freeze-on-approval-of-hotel-licences-enough-rooms-in-kl-says-mayor/

Duta Grand Hotel, revised application submitted today (6 Jan):
http://www.epbt.gov.my/osc/Borang_info.cfm?ID=372115&NoForm=Form2

Thank you, I appreciate your feedback.

What stocks are you currently eyeing or think have good potential upside?

Ok, have updated RNAV.

Thanks for the input/feedback guys.

It would generate future CF because the properties will be monetized.

E.g. the NBV of the 4.46 acres Mont Kiara land is RM51m or RM264 psf.

The TWY development which sits on 2 acres of the Mont Kiara land has a GDV of RM480m. Take-up rate good, exceeding 80%. Assuming 15% net margins, this project would contribute a total of RM72mil in future net profits. DCF at 11% over a 5yr development period, it's ~RM53mil, implying ~RM600 psf (surplus of more than RM300 psf)

For the remaining land at Mont Kiara, there's another project with an est.
GDV of RM400m in the pipeline.

I see. I heard they're leasing it out to Tesco. Do you happen to know how much Symlife is receiving from them?

Let me check out the Focus Malaysia report, thanks.

To be honest, I don't think I could give much insight into the refarming exercise than what has already been mentioned. I don't think the refarming will affect Redtone much though, unless the refarming leads to U Mobile getting a slice of the 900MHz spectrum and there's some sort of M&A exercise with Redtone after that.