gforce2

gforce2 | Joined since 2012-06-22

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Stock

2 months ago | Report Abuse

https://www.theedgemarkets.com/article/amfirst-reit-dispose-menara-amfirst-petaling-jaya-rm62-mil

Following the disposal, the REIT will incur net loss on disposal of RM4.93 million.

It is noted that Menara AmFIRST was first acquired by the REIT in 2006 for an initial cost of RM57.1 million. As at end-March, its audited net book value stood at RM64.6 million.

“The manager opines that considering the age and limited scope for growth of the asset, it is opportune to dispose of this asset to repay existing borrowings to optimize the trust’s gearing level,” the REIT said.

It added that the proceeds will be used to pare down its existing borrowings.

The proposed disposal is expected to be completed by 3Q22, it said.

===

It's an old building, only 60% occupied. Probably only earning enough to cover the loan repayments. Better for them to clean up their balance sheets. Take a small haircut now, NAV will still be way above current market price.

Stock

2021-08-27 18:26 | Report Abuse

If you have a TIIH.online account, you can apply for the DRP. You can subscribe to the new shares (@RM0.56620 per share, about 9% discount to market price), just have to pay for the stamp duty (RM10) and handling fee (RM5). It only makes sense to do this if you have more than 21000 CMMT shares, otherwise the stamp duty/handling fees will be more than what you 'save' from the discount. (Note: calculations based on a static market price of RM0.62, but keep in mind that share price will fall after ex-date due to the dividend distribution)

If you don't apply for DRP, you will get the dividend deposited to your bank account as normal.

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2021-06-23 20:59 | Report Abuse

16% stake for RM750m. That values the healthcare assets at a nice RM4.69b! That's more than half of Sunway's current market cap!

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2021-04-16 16:43 | Report Abuse

Wow, Wan Azmi selling down his stake at a loss! Original investment @98 sen per share in 2019.

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2021-04-12 16:02 | Report Abuse

Had a weekend visit to Sunway Velocity. If it wasn't for the mandatory face masks, you wouldn't think that there was a pandemic still ongoing. Parking bays were full, F&B outlets were doing brisk trade, and there was even a queue to enter the AEON supermarket (to enforce crowd control and social distancing rules). Might not be long before they inject Velocity Mall assets into SUNREIT, I think.

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2021-04-02 17:40 | Report Abuse

2.5sen, First dividend in over 5 years. Are things finally turning around for ILB?

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2021-03-27 08:07 | Report Abuse

https://www.theedgemarkets.com/article/maybank-eo-sime-darby-kerjaya-prospek-group-velesto-ioi-corp-cypark-malton-kimlun-haio

Amazing Parade Sdn Bhd is making a mandatory takeover offer to Eastern & Oriental Bhd (E&O) at 60 sen per share after it bought a 10.89% stake from Sime Darby Bhd. E&O said it received notice of the MGO from Amazing Parade — the private vehicle of the Tee brothers, who control construction firm Kerjaya Prospek Group Bhd. Sime Darby, meanwhile, said it has disposed of its last block of shares in E&O to Amazing Parade for RM93.5 million cash. Its indirect wholly-owned subsidiary Sime Darby Nominees Sdn Bhd today entered into a share sale agreement to dispose of its entire stake in E&O, comprising 155.83 million ordinary shares and representing approximately 10.89% equity interest in the shares outstanding of E&O, to Amazing Parade for a total cash consideration of RM93.5 million or 60 sen per share.

===

Sime Darby has exited. GKG still selling. 60 sen is dirt cheap, but perhaps Kerjaya team can bring in some cash, capital and fresh ideas to turn things around.

Stock

2021-03-18 17:49 | Report Abuse

Buying into KSENG is basically paying RM3.65 for a share that has cash equivalents of RM2.60 per share, net asset almost RM6/share. Most of their losses stem from their idle hotel and hospitality businesses. Patience is a virtue.

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2021-03-15 11:54 | Report Abuse

Sunway-PA will make a good 4-5 year investment, if compared against FD and REITs. I would still choose to hold some of the mother share. Why? If Sunway decides on a healthcare IPO within the next 4-5 years, that's a potential windfall. I am not sure if PA holders are entitled to it, unless they convert to mother shares. When SunCon was listed, Sunway shareholders received some SunCon shares for free. I expect when SunMed is listed, a similar scenario will unfold.

Stock

2021-03-12 15:17 | Report Abuse

Hats off to them. Managed to rise 23% from last week with low volume trading, keeping under the radar of all the punters. Liquid assets of more than RM320m, that's more than RM0.80 per share!

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2021-03-12 08:50 | Report Abuse

This is a stock that has been sitting on a huge nest egg since 2017, after selling off some Sabah plantations for RM750m. Based on their financial results, if you count their short term investment, deposits and cash equivalent, they are sitting on over RM520m, or more than RM0.59 per share. Net asset is RM1.47, so they are holding close to 40% in liquid assets.

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2021-03-09 23:38 | Report Abuse

Hardly any malls under AMFirst, except Summit USJ. The rest are commercial office spaces, and hard to see a true recovery in this stock until Covid19 vaccination hits high gear. That being said, Net Asset Value is 1.22, huge 66% discount, like buying auction property with existing tenant. For long term investors, just snap it up cheap, and look at it again in 2-3 years.

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2021-02-26 12:37 | Report Abuse

DRP is now available for those using TIIH, starting today. For those who want to take advantage of the DRP discount (4.69 sen less than theoretical ex-price), keep in mind that it only makes mathematical sense if you have more than 10000 shares in CMMT (entitles you to about 336 shares). That is due to the RM10 stamp duty & RM5 handling fee (assuming you use TIIH online to process, as it may actually cost more for courier fee of physical document).

If you have less than 10000 shares, it will probably make financial sense to take the cash instead.

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2021-01-18 15:11 | Report Abuse

Exercise price revised downwards from RM1.65 to RM1.56 due to issuance of SUNWAY-PA shares last month. Long-term warrant holders would also have noticed additional WB shares issued (628 additional shares for every 10000 shares held).

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3099661

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2020-12-09 11:30 | Report Abuse

A Choo Pin > You have to buy before ex-date to be entitled to dividend. Price will normally be adjusted down on ex-date.

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2020-06-10 00:25 | Report Abuse

EPF outsources some of their investing to the investment banks, which receive fees for meeting certain level of returns. EPF is a major market mover and its transactions add significantly to daily volumes and ranges. It is not uncommon for intra-day trades to be done, to lock in some profits. Different banks may have different strategies in play, so some may be buying, while others might be selling the same stock. as long as there is no collusion, it is technically not illegal.

Stock

2020-03-03 01:18 | Report Abuse

https://www.theedgemarkets.com/article/guocoland-sell-menara-guoco-tower-reit-rm242m

KUALA LUMPUR (March 2): GuocoLand (Malaysia) Bhd is selling Menara Guoco in Damansara Heights here to Tower Real Estate Investment Trust (Tower REIT) for RM242.1 million cash, in a related party transaction (RPT).

Menara Guoco is a 19-storey office building which forms part of an integrated commercial development known as Damansara City, comprising another office building, a hotel, a retail mall, serviced apartments and car parks.

As at Feb 6, 2020, the building has an occupancy rate of about 97.1% and is expected to increase Tower REIT's pro forma occupancy rate for its portfolio to 59.8% from 48.1%.

Upon completion of the proposed acquisition, Tower REIT's consolidated asset base is expected to increase about 42.3% to RM814.3 million and the average building age of its property portfolio is expected to decrease to 18 years from 23.

The proposed disposal is expected to be completed by the third quarter of 2020.

===

The rental market for commercial office space has been facing a glut for years now. Yield on this property is under 5% p.a.with 97.1% occupancy and they're estimating 100% loan @4.3% p.a.

I don't expect DPU to improve too much in the short-term, but it will probably help to stabilize the dividend as the other two office buildings currently have less than 50% occupancy! If you look at their last quarterly result, yields have possibly fallen below 2.5%! Menara HLA is still under renovation!

Who else wins?
1. Guocoland, as they cash-out a relatively low yield asset and lower their borrowings.
2. Hong Leong Bank, as they will probably issue the RM242m loan themselves @4.3% p.a.
3. GLM REIT Management, the REIT management company, since their earnings depend on the NAV of the properties.

Stock

2019-11-28 03:09 | Report Abuse

https://www.theedgemarkets.com/article/marine-general-proposes-debttoequity-scheme-restructure-subsidiaries-whopping-borrowings

KUALA LUMPUR (Nov 27): Debt-laden offshore service vessel operator Marine & General Bhd (M&G) has proposed a debt-to-equity scheme that entails the issue of 1.5 billion new shares to restructure RM200 million of the total of RM923.2 million debts owed by its subsidiaries.

JMM has entered into three separate agreements with Affin Bank Bhd, Maybank Islamic Bank Bhd and Bank Pembangunan Malaysia Bhd (BPMB). Meanwhile, JMG 3 and JMG 4 have signed facility agreements with BPMB.

More info:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/6352837

===

1. Reduced debt by RM200m. RM50m upfront paid out to banks, and the balance RM150m as preference shares redeemable over 10 years (but only once the outstanding dues have been settled).
2. This was one of my debt reduction ideas from 2018. At that point in time, it seemed unlikely. Market conditions have changed in 2019, so banks were more willing to negotiate on debt restructuring. As an added bonus, they are even willing to accept a conversion price of RM0.10 per M&G share!
3. There's a sizeable annual interest savings from this exercise, as well as a restructuring gain of RM24.1m. This puts M&G on the right path to return to profitability.

Caveat: 10 years later, the total number of shares goes up by 1.5b shares! (Factor of 3)

Stock

2019-10-29 09:33 | Report Abuse

https://www.theedgemarkets.com/article/hong-leongs-tower-reit-reinvent-coworking-space

The innovation centre is expected to occupy 250,000 sq ft or about 65% of the total 385,215 sq ft net lettable area in Menara HLA.

Chua is optimistic that 250,000 sq ft of space to be offered by the innovation centre will be fully occupied by tenants after renovation works are completed by end-2020.

Currently, about 100,000 sq ft have been taken up by six tenants including local training academy KCOM Group and a co-working space operator.

Stock

2019-10-02 20:23 | Report Abuse

https://www.theedgemarkets.com/article/marine-general-gets-vessel-supply-contract-petronas

KUALA LUMPUR (Oct 2): Marine & General Bhd (M&G) has bagged a contract by Petronas Carigali Sdn Bhd for the provision of a unit of anchor handling tug and supply vessel for the petroleum arrangement contractors (PACs) production operations.

M&G said the contract, received by Jasa Merin (Malaysia) Sdn Bhd, commenced on Sept 16 and has a duration of 709 days, with an option to extend the contract for a one-plus-one-year term.

“The contract and option, estimated to have a value of approximately RM17 million for the primary term, is expected to contribute positively to the earnings of M&G for the financial period ending April 30, 2020 and beyond,” it said in a filing with Bursa Malaysia.

===

1. That's another RM8.5m/yr in revenue (~ RM2.1m for the next quarter).
2. This should boost Upstream fleet utilization above 80%, assuming no other expiring contracts.
3. However, Upstream is still loss-making for M&G.

Stock

2019-09-14 20:14 | Report Abuse

https://www.theedgemarkets.com/article/uem-sunrise-ni-hsin-masteel-marine-general-petchem-and-taliworks

Offshore support services provider Marine & General Bhd's unit has bagged a contract from Hess Exploration and Production Malaysia B.V. worth approximately RM12.9 million with an additional RM6.5 million for an optional extended term.

Marine & General said its subsidiary Jasa Merin (Malaysia) Sdn Bhd has been awarded the contract by Hess for the provision of one 120MT anchor handling tug supply vessel to support Hess' Malaysian drilling operations on July 11, 2019.

Marine & General said the contract, which commenced on July 11, is for a primary duration of 12 months, with an option for Hess to extend for an additional six months.

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2019-06-27 15:38 | Report Abuse

Sunway Education Group is a not-for-profit, parked under Jeffrey Cheah Foundation. Any "profits" are recycled into scholarships.
Sunway still owns the land where the campus is located, but that is currently being transferred to Sunway REIT for RM550m. Is money is still being generated in the form of rental income.

Stock

2019-06-24 21:15 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6200025

https://www.theedgemarkets.com/article/marine-general-unit-get-three-contracts-petronas-worth-rm209m

KUALA LUMPUR (June 24): Marine & General Bhd’s subsidiary Jasa Merin (Malaysia) Sdn Bhd has bagged three work awards from Petronas Carigali Sdn Bhd worth a total of RM20.9 million, for the provision of anchor handling tug & supply vessel.

In a Bursa Malaysia filing today, the group said the contracts, worth approximately RM6.98 million each, will last for six months with an option to extend by another six months.

It said the contracts are expected to contribute positively to the earnings of the group for the financial period ending April 30, 2020 (FY20).

===

1. This should add RM10.47m revenue per quarter.
2. Fleet utilisation has generally been on an upward trend based on Q results ... upstream 55%, 60%, 73.4%, 65% (latest quarter was lower due to repair/maintenance and monsoon season); average of 63%. 3 AHTS vessels will boost utilisation up to ~79%, assuming all other contracts still on.
3. Will we see a Q profit soon? Possibly in the last quarter 2019, assuming their new chemical tanker comes online.

Stock

2019-04-09 14:38 | Report Abuse

1. They're not going to issue RM10b perpetual bonds all at once! That's absurd!
2. Most of the acquisitions will probably come from matured Sunway assets, with decent yields above 6% p.a.
3. Sunway & the Cheah family still have skin in the game, owning over 40% of SunREIT.
4. You can't compare SunREIT to Hyflux, as the business cashflow is different. Operational cashflow is positive, as it is primarily a rental income business. SunREIT's perpetual bonds will be used primarily to fund future asset purchases. Net gearing is about 39%.
On the other hand, Hyflux issued perpetual bonds to roll over maturing debt; in fact, when they issued the bond in 2016, they had NEGATIVE cashflow from operations and net debt to equity ratio of 0.98 (98% gearing!).

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2019-03-07 04:05 | Report Abuse

IGBREIT, KLCC = both have prime locations, with high occupancy rates, DPU has increased consistently Y-o-Y.
SUNREIT = has diversified income sources, DPU generally increasing Y-o-Y. Strong sponsor in Sunway, with regular asset transfers over the years.
YTLREIT = purely hotel assets. Has international assets & forex earnings to weather a weaker ringgit.

HEKTAR = drop in DPU since 2016, rights issue in 2017, Subang Parade dealing with lower occupancy rates, negative rental reversions & undergoing asset enhancement this year. Note that Subang Parade contributed about 35% to Net Property Income in 2018.

Stock

2019-02-28 20:35 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6082525

The Board of Directors of Sunway Berhad (“Sunway”) is pleased to declare a second single tier interim dividend in respect of the financial year ended 31 December 2018 as follows:

a) A second interim cash dividend of 2 sen per share; and

b) A share dividend distribution of approximately 48.5 million treasury shares on the basis of 1 treasury share for every 100 existing ordinary shares held.

The entitlement and payment dates in respect of the aforesaid dividends will be determined and announced in due course.

This announcement is dated 28 February 2019.

Stock

2019-02-04 02:06 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6055393

ZELAN 31-Jan-2019 Additional Listing Exercise of Warrants - 26,250 shares at 0.250.

Someone actually exercised their 2014/2019 warrants at RM0.25? That's a bold move indeed. They could have just bought 5 times that amount on the open market!

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2019-01-31 03:08 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6053177

PROPOSED DISPOSAL OF THE ENTIRE 50% EQUITY INTEREST IN INTEGRATED NATIONAL LOGISTICS DWC-LLC ("INL") BY ILB TO NATIONAL TRADING & DEVELOPING EST. ("NTDE") ("PROPOSED DISPOSAL")

Looks like ILB is selling off its loss-making Dubai subsidiary.
The terms don't look so great. It's 10% cash, and the balance 90% in 12 quarterly instalments starting April 2020!

On the plus side, at least it won't be draining any more cash reserves!

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2018-08-25 00:55 | Report Abuse

It looks like the initial signs of recovery in the 2Q 2018 Financial Results. Some highlights:

1. Negotiated lower interest rates on their existing debts, thanks to CDRC. Recall 1Q2018, interest expenses were RM 16.6m, compared to RM 10.95m in 2Q2018! That's a 34% reduction in interest rates (effectively from ~6.7% to ~4.5% p.a. by my estimates). It also looks like they have started to pare down their debts, albeit slowly.

2. Downstream Division is finally turning a profit!

3. Upstream Division Fleet Utilization at 55%, not including the latest 2 contracts signed in July & August. Based on their 2017 Annual Report, they have 21 vessels under Upstream Division. 55% means that 11.55 vessels are being utilised. Add in the 2 contracts (2 AHTS vessels and 1 SSV pro-rata), 13.2 vessels... assuming only the new contracts added, next quarter's utilization should be about 63%, and increasing to 69% in 4Q. The new contracts will add about RM 3m revenue for 3Q, and RM 5.4m in 4Q onwards.

===
Analysis & Predictions:
Their downstream division has 1 more ship to be deployed, which should add another RM 1m - 1.5m to revenue in the 4Q. There is also 1 more ship being constructed, to be ready in 2019.

I expect the 3Q results to show a RM 9.5m - 10m loss, dropping to RM 7m loss in 4Q, assuming 69% utilization (Upstream). Daily Charter Rates (DCR) should improve, as oil prices are now hovering at USD70-75/barrel, compared to USD45-65/barrel in 2017.

I predict M&G will be able to get their Upstream Fleet Utilization to about 75 - 80% in 2019, which should bring their quarterly losses down to about RM 3.5m - 4m.

Downstream activities will help bring M&G back into profitability. I estimate M&G will need to expand to 8 - 9 tankers, before we start to see an overall net profit. Thankfully, they still have about RM 151m in FDs/money market, which should be enough to buy another 2 - 3 tankers.

I still feel that they need to bring their debt ratios down to below RM 500m. At the re-negotiated rates, they are still burning about RM 44m a year on interest alone. Bringing the debt level to below RM500m should save about RM 22m/year.
Unfortunately, there's no easy way to do this. Any debt-to-equity or rights issue at current prices will find it hard to raise RM 100m, let alone RM 500m.

Stock

2018-08-18 22:08 | Report Abuse

This is an interim dividend, only the 2nd quarter. TWRREIT needs to make sure that it fulfills the 90% requirement for the full year, or else be liable to 24% corporate tax.

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2018-08-17 22:03 | Report Abuse

Sam1026 > That was a special dividend in 2017, after selling Silk Highway to PNB. Unlikely to have any dividends soon, as its core oil & gas business is still bleeding money.

On the plus side, oil prices have trended upwards. It is starting to get some new contracts (3 yr, with option to extend): RM17m with Hess E&P, RM48m with Murphy Oil Sarawak.

If you take these two contracts and divide by 36 months, it works out to about RM1.8m/mth additional revenue, or RM5.4m/quarter. I'm not sure what their profit margins are on these contracts, but even if you factor in these 2 contracts at RM2m profit/quarter, they are still operating at a loss of about RM16.6m/quarter. (Coincidentally, they are spending about RM16.6m/quarter on interest repayments alone!)

As of 31-Mar-2018, M&G is sitting on about RM229m in cash/deposits/reserves/FDs. That might seem like a lot, but its total liabilities is almost RM1b! It's no wonder that they are currently working with CDRC/BNM to help restructure its debt load.

I can think of a few ideas how this could pan out:
1. Convert the debt into equity. Bring down the debt to about RM200-300m, if possible.
2. A rights issue or private placement to raise fresh capital, to pare down debt. Similar effect to the 1st option, but might not be viewed favorably by shareholders.
3. M&A to create synergies & shareholder value.

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2018-08-17 20:59 | Report Abuse

Taken from the 2Q 2018 Financial Results:

B8 CORPORATE PROPOSAL AND DEVELOPMENTS

Classic Hotel, Muar, Johor
The 10 year lease for the Classic Hotel building granted to Wetex Realty Sdn Bhd (“Lessee”)
expired on 29 April 2018. Despite having an option to renew the lease for a further 5 year
period, the Lessee decided not to exercise its option to renew the lease upon expiry of the
lease period. The management of Hektar REIT had recently explored and reviewed several
proposals from potential hotel operators to take over the operations and business of the
hotel and also from potential purchasers to acquire the hotel building but have decided to
appoint Hektar REIT’s exclusive property management company, Hektar Property Services
Sdn Bhd (“HPSSB”) to take over and manage the operations and business of the hotel,
currently known as “Classic Hotel”.

Classic Hotel has ceased its business operations on 1 May 2018 and will soon undergo a
major refurbishment and rebranding exercise with a targeted hotel reopening or launch date
in Q4 2018.

Stock

2018-07-26 18:22 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5866229

On July 20, 2018 the U.S. Department of Commerce (“DOC”) issued a preliminary affirmative anti-circumvention determination concerning carbon steel butt-weld fittings from Malaysia. The DOC preliminarily determined that Malaysian companies are circumventing the antidumping duty (AD) order on butt-weld fittings from China. As a result, carbon steel butt-weld fittings having an inside diameter of less than 14 inches exported by Pantech Steel Industries Sdn Bhd (“PSI”) to the United States are subject to a cash deposit rate for estimated AD duties of 182.90% ad valorem, based on the duty rate in effect on carbon steel butt-weld fittings from China.

DOC’s decision is a preliminary determination only. PSI is represented by legal counsel in the United States concerning this matter, and is taking all possible legal steps to reverse this preliminary determination. Pending further developments in the DOC investigation, PSI has suspended all shipments of carbon steel butt-weld fittings having an inside diameter of less than 14 inches to the US. It is estimated that there could be a 20% reduction in revenue to the Group for the remaining months of this financial year.

PSI strongly views this decision as unjustified and contrary to applicable U.S. law. PSI has never intentionally circumvented the antidumping duty order concerning China and believes that all of its fittings exported in Malaysia should be classified as originating in Malaysia and entered without AD duties. PSI has production facilities of approximately 32,000 square meters, including factories and warehouses, located on an approximately 50,000 square meters of land in Meru, Selangor, Malaysia. These well-established production facilities have been producing up to 21,000 metric tons of Made in Malaysia carbon steel butt-weld fittings per annum, which are exported internationally.

The Board would like to inform that the management team is working closely with the appointed legal counsel to challenge this unjustified DOC decision and will announce further major development as and when the information becomes available.

This announcement is dated 26 July 2018.

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2018-07-26 01:19 | Report Abuse

http://www.theedgemarkets.com/article/marine-general-bags-rm17m-contract-supply-vessel

KUALA LUMPUR (July 25): Marine & General Bhd (M&G) said its unit has been awarded a contract worth RM17 million, to provide a straight supply vessel (SSV) in support of a client's operations.

In an exchange filing today, M&G said the contract, which was awarded by Hess Exploration and Production Malaysia B.V. to its unit Jasa Merin (Malaysia) Sdn Bhd (JMM), will commence on Aug 1.

The contract is for a primary duration of three years, with two annual extension options for Hess.

M&G said the primary term of the contract — valued at RM17 million — is expected to contribute positively to the group's earnings for the financial year ending Dec 31, 2018 (FY18).

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2018-06-07 22:08 | Report Abuse

“The decision is not expected to have any significant impact on the operations and financials of the company given that only preliminary works have commenced this far, which will be compensated for in accordance with the terms and conditions of the contract,’ it said.

Read more at https://www.thestar.com.my/business/business-news/2018/06/07/hss-engineers-lost-rm290mil-job/#BBp7dGzkQuJDr6Xr.99

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2018-06-06 21:43 | Report Abuse

https://www.malaymail.com/s/1639047/perak-defends-decision-to-hold-open-house-at-theme-park

IPOH, June 6 — The Perak state government has defended its decision to host its Hari Raya open house on the first day of the Aidilfitri celebration at Movie Animation Park Studios (MAPS) theme park, claiming it was more cost-effective.

Stock

2018-02-28 20:09 | Report Abuse

An unbelievable 13M+ shares dumped at closing time for RM1.02!
The question is, who's doing the dumping?

Stock

2018-01-27 02:48 | Report Abuse

Boost > what I mean is, in ringgit terms, you might not see as good a return compared to Gold in terms of USD. Here are some figures to back this up:

https://goldprice.org/gold-price-malaysia.html
26 Dec 2017 Gold Price: USD1282.10 per oz (MYR5234.61/oz)
26 Jan 2018 Gold Price: USD1353.82 per oz (MYR5239.96/oz)
Up ~5.5% in USD terms, but only up 0.1% in terms of MYR!

The recent BNM rate hike to 3.25% also makes gold less attractive in the short run.

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2018-01-16 05:44 | Report Abuse

http://www.theedgemarkets.com/article/amcorp-ups-stake-amfirst-reit

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5665321

The Board of Directors of Am ARA REIT Managers Sdn. Bhd. (“REIT MANAGER”) wishes to announce that on 15 January 2018, Amcorp Group Berhad (“AMCORP”) has acquired 13,650,000 units of AmFIRST REIT for a total consideration of RM9,443,408.08 from Jadeline Capital Sdn. Bhd. (“Jadeline”) via a Direct Business Transaction. In this regard, Jadeline has ceased to be a substantial unitholder of AmFIRST REIT.

AMCORP is the major shareholder of AMMB Holdings Berhad (“AMMB”) and Amcorp Properties Berhad (“AMPROP”), which in turn via Am ARA REIT Holdings Sdn. Bhd. (“REIT HOLDINGS”), are indirect shareholders of the REIT MANAGER, holding 70% and 30% equity interest respectively.

===

Jadeline Capital is 100% owned by ARA Asset Management Limited. This effectively marks the end of ARA's collaboration with AMFIRST, as they make preparations to list their own REIT.

Average price paid by Amcorp is RM 0.6918 per share, which is slightly higher than current market price RM0.68. Perhaps some support for the share price, in anticipation of the next Q results (in Feb)?

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2018-01-12 20:55 | Report Abuse

http://www.thesundaily.my/news/2017/12/06/affin-hwang-am-launches-malaysias-first-syariah-compliant-commodity-etf

It's the first commodity ETF to be listed in Malaysia, backed by physical investments in gold bullion/bars. Previously, if you wanted to invest in gold, you would have had to find alternative means: e.g. Banks' Gold Accounts, Gold Bullion/Coins, other Gold ETFs listed in Singapore/USA, Gold/Metals-Focused Unit Trusts. etc. Each of the above have their own pros & cons.

Theoretically, GOLDETF should track the global Gold Price. Remember, this is priced in USD, and given that the ringgit has been strengthening the last few months, it may not perform as well as expected, even with a rising gold price. Gold does not yield any interest/dividends, and there are annual holding costs (in the case of GOLDETF, it's less than 0.77% p.a.)

Some possible reasons to invest in GOLDETF:
1. Political uncertainties with the upcoming GE14.
2. Global turmoil / recession / stock crash
3. Option for physical gold redemption (5kg minimum ~ RM877k at current prices)
4. Diversification

Looking at the stock price data, there's limited volumes, probably created via Affin Hwang's UT funds. Not suitable for day traders, but might be suitable as an alternative investment idea for goldbugs.

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2018-01-07 03:08 | Report Abuse

ivan9511 > No, REITs aren't as volatile as regular stocks. I don't see any limit-up from this news.

Most of the REITs haven't really moved much, except for the window-dressing exercise on 29-Dec-2017. Quite a bit of headwinds: 1) Potential interest rate hike, 2) Glut in Commercial Office & Retail Mall Space. That being said, AMFIRST is trading at a huge discount to NAV, and is attractive from a dividend's perspective >6% p.a. AMFIRST Q Results are only out in February, and dividends are only announced in April & November.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5657389

Amcorp Properties (AMPROP) is currently raising funds through a rights issue of preference shares, but their core focus is on overseas properties in UK & Spain and upmarket residential properties in Malaysia. They also have regular income from their renewal energy projects in Malaysia.

We can probably speculate that having AMPROP on board (30% stake in Am ARA REIT Holdings) will make it easier to inject their property assets into AMFIRST. Looking at their annual report, only Amcorp Mall (worth RM 103m) seems to fit that criteria. That would take AMFIRST gearing ratio close to the 50% limit.

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2018-01-06 01:24 | Report Abuse

Looks like a change in AMFIRST management, as ARA is planning a REIT listing of their own soon.
http://www.theedgemarkets.com/article/ara-looks-rm185-bil-reit-listing-2018

http://www.thesundaily.my/news/2018/01/05/ammb-inks-agreemet-amcorp-properties-manage-amfirst-reit

AMMB Holdings Bhd's wholly owned subsidiary AmInvestment Group Bhd (AIGB) has entered into a new shareholders' agreement with Amcorp Properties Bhd in the business of managing AmFirst REIT after the agreement termination with ARA Asset Management (Malaysia) Ltd.

Recall that AIGB and ARA Asset Management had set up a subsidiary known as Am ARA REIT Managers Sdn Bhd to o undertake the management of AmFirst REIT.

Am ARA REIT Managers is 100%-owned by Am ARA REIT Holdings Sdn Bhd.

However, as ARA Asset Management has disposed of its 30% stake in Am ARA REIT Holdings to Amcorp Properties, both AIGB and ARA Asset Management have mutually agreed to terminate the joint venture.

Amcorp Properties is a 71%-owned subsidiary of Amcorp Group Bhd, which is also a substantial shareholder of AMMB.

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2017-12-05 15:18 | Report Abuse

noobiess > Let's look at the latest dividend distribution.
Interim income distribution of 2.12 sen per unit (of which 2.08 sen per unit is taxable and 0.04 sen per unit is tax exempt/non-taxable)

Under Malaysian law, REITs are subject to 10% Withholding Tax for individual shareholders. Tax is deducted at source, so the amount you receive is already the net amount. You don't have to declare this amount to LHDN (https://www.hasilnet.org.my/tax-on-reit-investment/)

For the above distribution, for every 1000 shares, you will receive:
((2.08 sen * 0.90) + 0.04) * 1000
= (1.872 sen + 0.04) * 1000
= 1.912 sen per unit * 1000
= RM 19.12

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2017-12-01 03:02 | Report Abuse

Selling off their Kenny Rogers business in Indonesia was the right move. That subsidiary had been losing about RM 9m/year. Moving forward, if profits remain at current levels, we can probably expect an additional 2 sen in annual dividends (6 sen, instead of 4 sen now).
Big boss TSVT knows this, he snapped up about 1m shares earlier this month.

Here's another thing to consider: 40%-50% of their costs of goods sold (COGS) are in USD. Ringgit has strengthened from a low of 4.50 to 4.08 now; almost 10%! Expect this to add to the bottom-line. Just for some rough calculations, Operation Costs was about RM530m in the last FY2017. Taking 40% COGS, that's around RM212m that might have been denominated in USD. Forex Savings of 10% is ~RM21m/year! (~5.5sen per share!)

So, if invested, just sit back, relax and let the good times roll.

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2017-09-07 20:59 | Report Abuse

The purchase consideration, it said, will be funded via a medium-term note programme with RM450 million notes issues and internally generated funds of RM5 million.
...

The good news is, they're buying the asset below market price (13% discount). ARREIT has a strong backer in Kenedix Asia.
Bad news is, they're now almost at debt limit (49.1%), since this purchase is done almost completely with borrowings.

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2017-09-06 05:49 | Report Abuse

http://www.theedgemarkets.com/article/tower-reit-appoints-eusoffe-chua-its-ceo

KUALA LUMPUR (Sept 5): Tower Real Estate Investment Trust (REIT) has appointed Chua Song Yong @ Eusoffe Chua as its chief executive officer effective today.

The CEO post was left vacant for more than a year. Chua is replacing Teo Juhn How, who resigned on June 8, 2016 to pursue other professional interests.

In a filing with Bursa Malaysia today, Tower REIT said Chua, 39, was previously TA Global’s head of group sales and marketing and head of group leasing and property management.

===

This is a positive development for TWRREIT. Imagine sailing without a 'captain' for over a year!
Autopilot may be fine during good times, but we're in shaky territories these days, and a ship needs a steady pair of hands!

Remember, TWRREIT currently only has 2 commercial office properties, and practically ZERO borrowings. Lots of room for growth and improvements! The question is, where will the next asset injection come from? (TAGB or Hong Leong Group)

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2017-08-23 17:23 | Report Abuse

Dividend received today.

I'm curious to know who opted for the Dividend Reinvestment Scheme
(22,345,183 shares at RM0.32). :D
http://klse.i3investor.com/additionalListing/5078/23-Aug-2017/18064_2168114443.jsp

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2017-08-18 19:15 | Report Abuse

http://www.theedgemarkets.com/article/elkdesa-posts-8-drop-1q-net-profit

KUALA LUMPUR (Aug 18): ELK-Desa Resources Bhd reported an 8.1% drop in net profit for its first quarter ended June 30, 2017 (1QFY18) RM5.05 million from RM5.5 million a year earlier.
...
The group’s revenue for the quarter rose 16.2% to RM25.57 million from RM21.99 million in 1QFY17, thanks to higher sales contribution from both business segments.
Revenue for its hire purchase segment grew 15% to 17.64 million, whereas that of the furniture segment rose 20% to RM7.94 million.
ELK-Desa said impairment allowance for its hire purchase segment rose 46% to RM6.45 million, primarily due to higher delinquent accounts and cost of debt recoveries.
...
Similarly, the impairment allowance for its furniture segment jumped by 100% to about RM160,000 due to long outstanding trade receivables.
...

"The board is confident that the group's profit for the financial year ending 31 March 2018 will be better than financial year ended 31 March 2017," it added.

===
Quick Analysis:
The recent rights issue to raise ~RM59m was timed to provide additional funds to grow their hire purchase & furniture businesses. This should hopefully counter the higher impairments to be expected in a slowing domestic economy.
Revenue is up, but profit is down. Overall, it seems like there are more headwinds ahead. Dividend yield is around 4.5% pa, so if you're a yield seeker, some selected REITs might be a better bet.

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2017-08-17 21:57 | Report Abuse

ZeaXG > Thanks for the update! To add, this is mentioned on Page 9 of the 1Q17 Quarterly Report released today.

===
B10. PROSPECTS
During the quarter ended 30 June 2017, the Trust has secured a new tenancy to lease enbloc
(with option to purchase) the currently fully vacant property, Prima 9 in Cyberjaya. The
new tenancy of Prima 9 will commence effective 1 October 2017.
With the fully tenanted Prima 9 and the higher occupancy achieved in The Summit Retail
and Office, the Trust’s overall committed occupancy of the properties portfolio has improved
to 87.3% as compared to overall occupancy of 82.5% as at 31 March 2017.
===

A quick google search shows agents were still trying to rent/sell Prima 9 earlier this month.
Price range (RM80m to RM83m), Rental quotes between RM 3.75 - RM5 psf for Prima 9 & 10.
Let's assume RM3.75 psf, on account of the weak office rental market.
​111,224 sf = RM417k per month. Since tenancy is from 1 Oct, it's from 3Q17 onwards, so possibly a total of RM2.5m property income for this financial year; (RM5m annualized) For FY17, potential boost is 0.36 sen per share (0.72 sen annualized).

Back to the 1Q17 Results; Earnings looks like it is improving, costs are under control. 1.1 sen per share in realised income this quarter.

With the fully occupied Prima 9 & improving occupancy at Summit USJ, I project earnings to rise to ~1.28 sen per share in 3Q onwards. So, a full year result of approx 4.76 sen per share. At 71.5 sen share price, that works out to a potential 6.65% dividend yield. This is a conservative estimate.
If the Prima 9 tenant decides to buy, that would be even better!