Gadang ....come on baby, win the MRT3 and LRT 3 ...

Let us chant......... LRT3, LRT3, LRT3, LRT3, LRT3, LRT3............. hip hip horray....

This AGM, we gonna ask them about LRT 3

Be patient! WHen it rains, it pours

https://www.nst.com.my/property/2017/08/268923/alphine-gears-third-tower-project

The remaining undeveloped landbank is located at SImpang Ampat - which is about 10KM away from Batu Kawan - the new township in Penang. Just google Batu Kawan (BK). BK will host Penang's first planned city, IKEA, KDU University College, a hospital, Hull university, etc...It will be something like Sunway Quay / Damansara Utama. Big developers like ECO WOrld and MahSing and Sunway has landbank there. Hence, Tambun Indah maybe preserving their landbank at Simpang Ampat because the land price keeps going up day by day.

If not mistaken, TamBun Indah's land cost is dirt cheap. Currently, their margin at current sales is already at 40%. Once BK goes online - especially with ECO World's launching of ECO HOrizon at BK and ECO (dunno what's the name) at Simpang AMpat, the land price will surely go up again. Hence, Tambun Indah is just waiting for the right time to monetize their existing landbank at Simpang Ampat and maximize their profit margin.

Not surprising to see their profit margin to expand to 60% for future launches at Simpang Ampat.

By the way, if you go to TamBun Indah's sales gallery - you will see a big piece of vacant land owned by some other companies. Last time, Tambun Indah wanna purchase this piece of land but the sales was unsuccessful. According to Leong Kok Wen (RHB Research), despite the sales falling through - only TamBUn Indah has physical access to the land. So, I foresee a possible JV between Tambun Indah and that landowner.

You may wanna enquire about this in the future AGM.

https://www.nst.com.my/business/2017/09/281619/alpine-return-ascott-launch-ascott-star-klcc

Different strokes for different people....don't condemn others .....

Tesco is an asshole...

@ Halite, same here....I have been holding since 2015 (two years dee)....

aiyoh...it is good that Gadang is highly selective in their projects....this means that they know their requited rate of return. If they cannot het their required return, thrn why choose to take the additional risk ? the marginal risk does not comensurate with the marginal rrturn. Capital is better deployed elsewhere.

Gadang is very selective in tendering for their projects....maybe it is a blessing in disguise if they don't win it....

Must be due to the required size of the REIT and other regulatory requirements...

I rather they don't sell this shopping mall...just refurbished it and then keep for rental income ...or probably create a REIT and sell it to their REIT and cash out....whilst maintaining control.l via the REIT

In Ooi Teik Bee and in Gadang, i believe ...LRT3 package will be announced before AGM on 8Nov

aiyoh....Gadang no more chance liaw....

@ Azman,
Symlife has got Langkawi Shopping Mall (the only major mall in Langkawi).
Thereafter, it has got The Wharf Mall (which is currently under approval stage) and Symphony Square.

Hence, SymLife has got about 3 investment properties. So, having a mini REIT is not a far fetched idea...

Probably Gadang gonna win LRT

@ Equity diary...however, we should not forget that the property sector is really slow now...hence, we should not be overly optimistic...

Hopefully, Union Suites will hit 80% sold status by end of this year .....sold as in no cancellation and SnP signed...

just called the sales gallery for Union Suites - the sales take up rate is about 70% out of which they managed to convert 80% to confirmed sales - confirmed signed snp without cancellation.

Hence, actual confirmed sales = 70% x 80% = 56% - not bad. Hence, Union Suites is already half sold.

@ equitydiary ....please help to audit my reasoning on why SymLife shares should be valued at RM1.20 to RM1.60.

Assuming that SymLife only have got 1 project which is Star (we exclude TwY and Union Suites)

Profit from Star Resi attributable to SymLife RM300M
Here, I do not water down the RM300M given that revenue recognition from Star is immaterial for FY2017.

divided by 3 years - from 2018 to 2020 (3 years inclusive) - given that Star will be completed by the end of 2020
Profit a year of about RM100M
Divided by Shares Outstanding 282M
EPS = circa RM0.35

Assuming if PE= 4
Hence, share price should be about RM1.40

Hence, it is reasonable to expect about RM1.20 to RM1.60

Through JV lar.....my conservative calculation shows that SynLifw will stand to profit about RM300M from Star

@ equity diary. ...SymLife's balance sheet is not strong enough to develop the entire Sungai Long land alone....furthermore, at that time, SynLife will be developing the MAKSAK land + Jakel's land.

Hence, maybe you are right....that SymLife will partner with Samling and possibly rope in KWSP and PnB since these big boys have all the monies ....

Hopefully,....

http://www.symphonylife.my/wp-content/uploads/2017/09/AGM-2017-QA-Final.pdf

SymLife is a JV king....I am quite surprised they can loop in PnB as a JV partner to co-develop the Jakel land. We cannot underestimate Tan Sri's cable. Concerning the Sungai Long land, the land cost is really cheap and it is going to be an RM8Billion township. Hence, from SymLife's past history and their relatively small balance sheet, they maybe doing another JV. Maybe they will loop in KWSP as a development partner. Hahaha.....SymLife = a small company with a BIG vision.

...have the patience to win big...

@ equity diary.....how much is the price per square feet ? If not mistaken, it is like more than RM2700 per square feet...

Yahoo...tomorrow is dividend payment day

Kanneh....when will Gadangwon the MRT and LRT 3 project again ?

@ equity diary, thanks alot . By the way, do you have the article in Focus Malaysia for Symphony Life ?

@ Alkin Kua, mind to share the article??

waiting for RM0.03 cents dividend in the bank account...

Don't give up hope...Gadang can still win the remaining packages for LRT3

@ nemesis....but general trend is that the share price is heading north

@ maxmax..don't understand lar....please explain in layman term

The C&S Engineers (construction and structural) Engineers is Jacob Engineering Group, a Fortune 500 list company. Hence, I don't think the project execution can be too shabby.

https://en.m.wikipedia.org/wiki/Jacobs_Engineering_Group

Interesting facts about TwY

http://www.c-arch.com.my/residential/twy-mont-kiara

@ nemesis, just asking....for TwY, what is the percentage of completion ?

Good news everyone....50% of the units in Union Suites have been sold....

Good news ...50% of the units in SynLife has been sold....

@ hng33, if the Istana Negara is due for redevelopment, then where all the aging gonna reside ?

aiyoh...buy land next door neighbour is Istana Negara....later, Agong marah

@ equity diary ..what is your opinion about Jakel Land S/B that SymLife has 33% in it ?

During the QnA session with Tan Sri, he mentioned that it is a JV between Jakel, PnB and SymLife to develop more than 5 acres of prime land at Ara Damansara....something like that .

Do you mind to share more information with us ?

@ nemesis, ...the delay is due to the high unbilled sales.. Too many zeros to put at the back......run out of printing space ....

Tan Sri Azman Yahya told me that the quarterly results will either be released today or tomorrow.... Guaranteed !

Why I used the word "so-called" correction in property price?

I live in Penang Island and that even during the correction now in Penang's property market, high rise (1000 square feet condo) does not correct by more than 5% to 10%. Nowadays, property developers in Penang is trying to build affordable condo. But then, the price is still maintained at about $450K to $600K. This price bracket is deemed as affordable range. However, what we can see is that the square feet per condo has shrinked. A few years back, $550K condo is at about 1200 to 1300 sqft. But now, for the same price, the condo is at about 800 to 1000 sqft. So, even though price is maintained but there is a drop in the purchasing power. So, at least for Penang Island, property is still a very good storage of value.

But then, at the flip side of the coin, it maybe due to developers has formed a monopoly over a certain area and decided to collude and not to drop the price but to build smaller units. Who knows?

also, for Star project, the contract awarded is for "INTEGRATED" development. Emphasise on the word: Integrated. This point is very important (as opposed to phased development) because
(1): Samsung will build all three towers at ONE GO and as of now Aug 18, the three Towers is at level 6 to 8,
(2A): Tower 1 (95% to 100% sold), Tower 2 (85% sold) and Tower 3 (expected to be 90% sold by end of 2018 due to association with Ascott Group),
(2B): has cleared the "speed bump" of doing the foundation work that totals about 1.5 years - and progressive billings will move in a very fast way to reflect the actual work done at construction site,
(3): hence, when you match (1) (cost) and (2A & 2B) revenue, it means the revenue and profit for all three towers will be progressively recognized in a VERY MATERIAL WAY from mid 2018 until end of project by end of 2020.

Assuming if it takes 3 years (2018 to 2020) to recognize about $300M profit from Star project (SymLife's portion):

profit per year = $100M
PE = 5 (very prudent due to so-called sector correction in property and that SymLife is operating in the high end part of the sector)
Shares outstanding = 300M
Share price = EPS ($0.30) x PE 5 = RM1.50.
Maybe it is reasonable to expect share price of about RM1.20 to RM1.50 (that is if you wait until end of 2018).

@ si min tan, normally for high rise projects - there is a time lag between the launching of a new project to the eventual recognition of material revenue.

For TWY2, assuming if they launch by the middle of next year 2018 and full take up rate (signed SnP and paid the 10% deposit with no rescinding of contracts) achieved at the end of 2018, material revenue is likely to be recognized by mid 2020. This is because for high rise, it takes a long time to complete the foundation such as piling, under ground and sub structure work, etc etc etc. Hence, it takes a long time to recognise revenue from the first 10% to 30% progressive billings. However, once this stage is completed, construction moves at a very fast pace to build up each level. It will just be like building Lego - stacking up one level after another.

Just look at Star project. It takes 1.5 years to build up the sub-structure and to recognize 20% progressive revenue. This is coupled with the fact that KLCC site is surrounded by lime rocks - very hard rocks to drill into. Hence, Tan Sri made the right move to engage Samsung as the contractor due to their experience in building KLCC Twin Towers. But then, once this stage is over, construction can start to move at a very fast pace. That is why mid FY 2018 is when earnings and profit from Symlife will contribute like crazy.

Fellow Heng Tais,
Next year, FY18...$ymlife will glimmer because the earning from Star and TwY will kick in at high gear.