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.

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!

It's a dividend for ~5 months (incl. July-Aug), because of the recent rights issue. Annualized, it works out to about 9.6 sen for the year.
A nice way to attract dividend seekers to help push up the share price.

Div EX-date 23 Aug 2017

Note: Rights application last date is 15 Aug 2017. Not sure when the new shares will be listed, but by convention, it should only be done after the dividend ex-date. So, if you want the dividend, have to buy from the open market. :)

http://www.theedgemarkets.com/article/sunway-sells-hotel-property-sunwayreit-rm340m

KUALA LUMPUR (Aug 3): Sunway Bhd is disposing of its Sunway Clio property to Sunway Real Estate Investment Trust (Sunway REIT) as it wants to eliminate any conflict of interest with regards to the property.

Sunway said its wholly-owned subsidiary, Sunway Forum Hotel Sdn Bhd, will receive RM340 million for the property which comprises the Sunway Clio Hotel, a three-storey retail space and a multi-storey carpark.

...

Pursuant to the exercise, Sunway City Sdn Bhd (SunCity), which is the holding company of Sunway REIT, Sunway Forum and Sunway Leisure, is providing Sunway REIT a guaranteed net property income (NPI) of RM20.23 million per annum for a period of four years.

Should there be any shortfall, SunCity said it will pay the amount equivalent to the difference between the actual total annual NPI achieved and the guaranteed NPI.

http://www.theedgemarkets.com/article/malaysian-newsprint-industries-initiates-voluntary-liquidation

KUALA LUMPUR (Aug 1): Media Prima Bhd and Hong Leong Industries Bhd have announced that their associated company, Malaysian Newsprint Industries Sdn Bhd (MNI), has initiated creditors' voluntary winding up proceedings.

...

Media Prima said the group will make a full impairment of RM142.4 million arising from the liquidation process, which is its carrying amount of investment in MNI as at end of FY17. This, it added, will adversely impact its financial results for the final quarter of FY17.

https://www.theedgeproperty.com.my/content/1184726/paramount-sell-schools-nations-first-education-trust-alpha-reit

KUALA LUMPUR (Aug 1): Paramount Corp Bhd’s wholly-owned subsidiary plans to dispose off its private and international schools, Sekolah Sri KDU (SSKDU) and Sri KDU International School, to newly-formed Alpha Real Investment Trust (REIT) for RM165 million.

...

Paramount said the proceeds from the proposed sale, expected to be completed in the fourth quarter of 2017, would be used to cut back on leverage for the group (RM113 million), reward shareholders (RM31.8 million) and for working capital (RM19.7 million).

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5479653

Time to convert to mother share.

Like it or not, Silk is still considered a loss-making entity. That's probably weighing on the share price.

Assuming that all the dividend (15 sen x 702m shares = RM105.3m) is reinvested under DRP into shares, we're looking at an additional 329m new shares (almost like a 1 for 2 bonus issue).

They need to show a profitable quarter (excluding the one-off disposal) before the share price can really shoot up. Next Q results at end-Aug.

Joint Venture with Destini Bhd

http://www.theedgemarkets.com/article/sapura-resources-partners-destini-strengthen-aviation-biz

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5463609

E&O selling Lone Pine Hotel for RM85m.

free2invest >>
Check their last announcement:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5441781

(pg 8)
As the Proposed Acquisition will be funded by borrowings, YTL REIT’s gearing ratio is expected to increase from 36.5% to 42.3% based on the proforma total asset value and borrowings of YTL REIT as at 31 March 2017...

http://www.thestar.com.my/business/business-news/2017/06/01/lee-quits-as-bfood-ceo-to-assume-bigger-role-at-bermaz-auto/

Taking on Lee’s CEO position at BFood is executive director Sydney Lawrance Quays, 48.

Queensbay Mall is owned by CapitaMalls Asia, a wholly owned subsidiary of CapitaLand Ltd listed in Singapore.

The 'loss' is an accounting issue, due to currency fluctuations between MYR-AUD, brought about by the AUD-denominated term loan.

Ringgit is starting to strengthen now, so it should correct itself in the next few quarters.

Add up the quarterly dividends since July 2016, and that's a cool 8.3 sen per share (7.47 sen after WHT, at RM1.17 per share is equivalent to 6.38% p.a; better than EPF).

Out of all the Malaysian REITs, this is probably the only one giving a decent overseas exposure - the rest are all dependent on the domestic economy.

After a long wait, Sunway share price has finally caught up to its NAV. It is diversified enough to weather the slowdown in property markets. SunCon continues to shine, in anticipation of future MRT/LRT contracts. SunREIT remains consistent in their rental income.

Have a look at this article to see how the Sunway City area is developing.
http://www.theedgeproperty.com.my/content/1131852/sunway-city-new-corporate-address

Rubber stocks rallying today... commodity prices taking a beating the last few weeks. Whether natural or nitrile rubber, lower raw material prices = better margins.

SSTEEL-LB is a loan stock, with fixed interest repayments of 5% (5 sen/yr, paid at half-yearly intervals), from 2015-2020. As far as I can figure, it is a 1:1 conversion to mother share (The RM1.05 exercise price refers to the initial price to buy the loan stock in 2015). Conversion can be done at any time, via your remisier/brokerage.

The reason for the low volume is because -LB stockholders were getting 5 sen annual returns (better than FD) while mother share had no dividend since 2014.

Given that the mother share just declared a 3 sen dividend ... you can expect some interest in this counter, as a cheaper entry to own the mother share.
Note that at RM1.40, loan stock interest works out to only 3.57% p.a.


References:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4205517
http://www.bursamalaysia.com/market/listed-companies/company-announcements/3644697

http://www.theedgemarkets.com/article/perak-corp-slumps-7-missing-fy16-annual-report-deadline

They got a RM212m MRT2 contract.

http://www.theedgemarkets.com/my/article/mrt-corp-awards-rm274b-contracts-gadang-suncon-trc-and-acre-works

For every 100 shares you have, you get 1 treasury share.
So if you have 10000 shares, you get 100 extra shares.

4 sen dividend + 1/100 treasury share dividend (equivalent to ~3.14-3.16 sen per share)

Some good news: EPF has been accumulating Sunway shares over the last month or so. Hopefully they will continue to support this solid counter.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5336709

Looks like Rights issue to be postponed.

It's a good move, to diversify away from the office & retail spaces which are showing some signs of weakening.

Yield of this industrial property is about 6.1%, based on the purchase price of RM91.5m. Triple net lease. Current annual rental is ~RM5.6m, subject to review in 2019.

Notice of Arbitration dated 22 December 2016 pertaining to Memorandum of Agreement dated 13 April 2010 ("MOA") between Malaysia Airports Holdings Berhad ("MAHB") and HSS Integrated Sdn. Bhd. ("HSSI") for the Proposed Development of New LCC Terminal and Associated Works at KL International Airport, Sepang, Selangor Work Package EW02: Site Preparation, Earthworks and Main Drainage (Airside)

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5297309

MAHB is claiming a sum of RM64,617,267.17 for an alleged breach of the MOA between MAHB and HSSI.
...

Financial Impact

HSSI was required to hold a professional indemnity insurance policy to the satisfaction of MAHB. Pursuant to the terms of the MOA, the Board is of the view that HSSI’s liability may be limited to the amount covered by the professional indemnity insurance policy which was submitted to MAHB.

===
At least they have insurance.

http://www.thestar.com.my/business/business-news/2016/12/17/remedy-for-asiamet-education-group-turnaround-plan/

This will be a very good candidate asset to inject into SunREIT next year.

http://www.theedgeproperty.com.my/my/content/1000973/sunway-velocity-mall-targets-100-occupancy-2h2017

PETALING JAYA (Dec 9): Sunway Velocity Mall in Cheras is aiming for 100% occupancy by 2H2017, said Sunway Malls and Theme Parks CEO HC Chan at the soft opening of the mall yesterday.

According to Chan, the tenancy sign-up to date is 95% and as of yesterday, 75% of the shops were already opened.

He expected the figure to rise to 80% by the end of this month, and 90% of the shops to be opened by 1Q2017.

The 7-storey Sunway Velocity is part of the 23-acre Sunway Velocity integrated development with a gross development value of RM4.5 billion. It has six business components altogether — mall, residences, hotel, office tower, retail shops and a medical centre.

The hotel is scheduled to open in 2017, followed by the medical centre in 2018, said Chan...

Sunway Velocity Mall launched today. Perhaps some good tidings ahead!

Smart move by SMRT. Assigns a higher value to their existing college assets, and injects it into AEGB. Merge their college/university facilities & rebrand (Finally remove the tarnished MEGB/AEGB name). Private placement to raise 42m to pare down borrowings. Bring their NA up from 24 sen to 102 sen. AEGB minority shareholders will have to grin & accept it, because the alternative is continued losses / closure.

Compared to the other MREITs, this is the only one with significant forex earning exposure. It is a double edged sword, as it also has a big AUD denominated loan taken when purchasing the Australian hotels. If those hotel revenues are more than sufficient to cover the interest/repayments, great. Otherwise, it's going to get painful as the AUD continues to strengthen against MYR.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5278213

On behalf of the Board of Directors of the Manager (“Board”), AmInvestment Bank wishes to announce that the Board had today resolved to fix the issue price of 380,000,000 Placement Units at RM1.06 (“Issue Price”). The placees for the entire 380,000,000 Placement Units are as follows:-
(i) 190,000,000 Placement Units to be issued to YTL Corp; and
(ii) 190,000,000 Placement Units to be issued to placees identified through the Placement Agents, AmInvestment Bank, Credit Suisse (Singapore) Limited and Maybank Investment Bank Berhad,
raising total gross proceeds of RM402.8 million.

The Issue Price represents a discount of approximately 9.25% to the five (5)-day volume weighted average market price of the units in YTL REIT up to and including 30 November 2016, being the last trading day immediately preceding the price fixing date, of RM1.168.

===
Not good for minority shareholders. At least they should have priced it closer to the market price since it is a private placement.

http://www.theedgemarkets.com/my/article/elk-desa-unperturbed-lacklustre-economy

http://www.theedgeproperty.com.my/my/content/990397/update-s-p-setia-confirms-one-dead-due-pedestrian-link-collapse

https://www.theguardian.com/law/2016/nov/30/kelloggs-unilever-nestle-child-labour-palm-oil-wilmar-amnesty

Headline:
Firms such as Kellogg's, Unilever and Nestlé 'use child-labour palm oil'
Amnesty claims producer Wilmar employs children to do back-breaking physical labour on refineries in Indonesia

from Page 14 of Q3 Results:
Due to the one-off restructuring expenses under the Print operations of RM104.6 million, coupled with soft consumer sentiments and the overall challenging operating environment, the Group revenue for 3QFY16 declined by 9% against the immediate preceding quarter. If the one-off restructuring expenses were excluded, the Group posted a loss after tax of RM8.7 million for 3QFY16.

Angielim9955, a lot of headwinds, not just locally, but internationally. The battering of the ringgit this week may just be a one-off, but it's going to be a real rollercoaster I think.

Here's another bit of news:
Another ELK DESA Rights Issue! (1 for 5)
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5257461

At least the rights issue will be at RM1.16, so it won't depress the share price too much.
More shares in the market should help to boost the liquidity/volume.

Yes. On paper, they had a good 2nd quarter. Higher revenue, but also higher impairment allowance (bad debt? NPL?) for their hire purchase financing. Also note, their furniture business makes their revenue look bigger, but it isn't profitable yet.
ICULS holders are also converting to the mother share since the dividend yield is much better (about 5.7% at current share price vs 3.25% Loan Stock Interest).

I was talking about the next 6 months to 1 year. Malaysian market starting to look a little bit shaky.

http://www.freemalaysiatoday.com/category/nation/2016/11/04/used-car-dealerships-facing-tough-times/

Just wondering how this will affect ELK-Desa, since this is their main target market.

Some REITs are better than others. At the moment, some are willing to pay a premium even as yields drop down below 5%.

A few reasons:
1. BNM rate: 3%, down from 3.25% this year. Some analysts predict a further easing to 2.75% in the run-up to the next General Election. Which will make REITs even more attractive.
2. Generally, KLSE stocks are seeing a dip in %DY & possibly future earnings.
3. SUNREIT could see possible asset injections in the near future, most likely Sunway Velocity Mall, which has already gotten around 80-90% leased out even before the grand opening. I predict this injection will only take place after the MRT stations are operational (mid 2017?).
4. Possible SC revamp in the REIT guidelines to allow property development activities.

It's actually quite old news (June 2016). We'll have to wait for Ecofirst to have their AGM (25 Oct) to approve the transaction. The wild fluctuations could be due to the fact that more than 71% of the shares are privately held by the major shareholders, and the relatively low daily volumes.

An ongoing family feud...
http://www.theedgemarkets.com/my/article/nephews-and-niece-take-uncles-genting-family-dispute

http://www.theedgeproperty.com.my/my/content/926874/sunway-pyramid-hotel-reopens-next-month

Sunway Hotels & Resorts, the hospitality division of property-construction conglomerate Sunway Group, is slated to reopen its 4.5-star Sunway Pyramid Hotel (formerly known as Sunway Pyramid Hotel East) on Nov 3.

A good read. It's not only those listed here on Bursa, but even in developed markets.

http://www.theedgemarkets.com/my/article/cover-story-accounting-issues-chinese-firms-other-markets

==
I also wanted to share my experience with this stock.
I remember buying this stock in 2012, averaging between RM 0.70 - 0.80. At the time, the NTA was around RM 2.00. I was experimenting with Net-Net Value Investing, and going by the Financial Reports, it was a decent buy. I was also influenced by KYY's recommendations on the stock.

Most of the China stocks were still trading like Hot Cakes, and I was lucky enough to sell it all at around RM0.98, after about 8 months of holding the stock. After that, I decided to be on the safe side, and stayed away from China stocks completely.

Fast forward 4 years, and in hindsight, that was probably the smartest decision made.

http://www.theedgeproperty.com.my/my/content/905459/titijaya-buys-two-plots-selangor-land-rm24-bil-gdv-mixed-project

Wow! Looks like quite an exciting end of the week! Haven't seen this much volume since Jan 2016. No news so far, but based on past charts, a spike in volume usually means further upside in the coming month. Will AMFIRST beat my optimistic prediction of RM0.85 this year? Have a great weekend - October is gonna rock!

I feel we will only see a proper recovery in CMMT after the completion & opening of Bukit Bintang MRT in mid-2017. Luckily, their other properties seem to be doing well.

The trading range seems to be 1.51 - 1.57 these days. I don't expect this stock to go much higher than 1.60 this year, unless ... BNM drops interest rates again, or we get some nice tax breaks in Budget 2017...

It's not under YTLREIT yet...

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5220853

Titijaya's buying up a company to gain access to their landbank in Selangor. It's a shares-only deal @RM1.45 per share. 79.7m new shares to be issued.

http://www.theedgeproperty.com.my/my/content/903614/ytl-hotels-acquires-three-properties-uk

It's anyone's guess when they'll inject these assets into YTLREIT, but that will most likely entail a rights issue.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5214129

More contracts (MRT and internal).

5sen Dividend was mentioned in the last quarterly report, but it's still a proposed dividend, pending AGM.

Sunway continues to support the price with share buybacks.
Over the last 3 days, they've bought back 573k shares at prices ranging from 3.07 - 3.13
http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=SB&sub_category=all&alphabetical=All&company=5211
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5200797