Wow.
Suddenly so many good news for Gamuda.
Splash sold, ERCL resuming, Water NRW starting,4 tolls to be sold,etc

Seems the boss is slowly paring down their stakes. Each time by a lump sum.

05-Apr-2019 Insider DATO' DR NORRAESAH BINTI HAJI MOHAMAD (a substantial shareholder) disposed 75,000,000 shares on 04-Apr-2019.
05-Apr-2019 Insider MR WONG THEAN SOON (a substantial shareholder) disposed 75,000,000 shares on 04-Apr-2019.
05-Apr-2019 Insider ASIA INTERNET HOLDINGS SDN. BHD. (a substantial shareholder) disposed 75,000,000 shares on 04-Apr-2019.


26-Oct-2018 Insider DATO' DR NORRAESAH BINTI HAJI MOHAMAD (a substantial shareholder) disposed 50,000,000 shares on 23-Oct-2018.
26-Oct-2018 Insider MR WONG THEAN SOON (a substantial shareholder) disposed 50,000,000 shares on 23-Oct-2018.
26-Oct-2018 Insider ASIA INTERNET HOLDINGS SDN. BHD. (a substantial shareholder) disposed 50,000,000 shares on 23-Oct-2018.

ICON, DID YOU MISSED OUT THE BORROWINGS ?



1) EXISITING RM421 MIL (RM48 MIL P.A)
2) NEW BORROWING FOR POWER PLANT USD400MIL @ 6% P.A AT 18 YEARS TENOR (RM144MIL P.A)




So it would be RM276- RM144- RM48= RM84 mil.



# Don't forget your 102 mil warrants which need to be included in the future upon full conversion. Let's make it conservative at 585 mil + 102 mil= 687 mil



ESTIMATED EPS = 12 CENT ONLY



CORRECT ME IF I'M WRONG YA!

CHEERS

Looks like the CFO is either purely dumb stupid or truly wise.

Being a CFO, he would have certain qualifications required for the position.

Now assuming, he understands as much as DK66 in terms of J@k$ power plant project and with his "qualification" and years of working experience, he should be able to know his shares worth 3-5 year down the road.
I'm referring to half of DK66's average TP of only 400 cent.

Else, he must be an impostor working in J@k$ with fake certifications.
Then we would understand why he sold his shares prematurely. He somehow found a way into J@k$ as a qualified CFO.

Or he notice something that none of us saw including DK66's god level analysis and valuation. He utilises his skills and experience as CFO to value his shares worth against the future prospect of the multi billion dollar power plant.

Note: The above remarks are meant for my respond to the CFO topic trending and must not be construed as any buy or sell remarks. As the famous quote says ,J@K$ daily volume are in tens of millions, my remark will not impact the share price.

Looks like Gamuda will be focusing on PTMP and other overseas projects after the disposal of the major highways.
Probably a special dividend in the offing as well.
----------------------------------------------------------------------------------------------------------------------------------------------------------------
https://www.theedgemarkets.com/article/highway-takeover-could-set-precedent-malaysia

Related to BM (2018 article)

Some observers believe the government could sell the land piecemeal to the highest bidder as it is located in a prime area in Jalan Istana and Jalan Sungai Besi with easy access to the city centre and the south.
“The land is in a very prime area for future development, and many developers are eyeing it. Even without the HSR, the land will be able to fetch a high valuation, probably even exceeding the earlier valuation that IWH CREC [Sdn Bhd] was willing to pay,” says an observer.

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https://www.theedgemarkets.com/article/minus-hsr-whither-bandar-malaysia

Continued:

“For investors, a typical characteristic of it is that the dividend pusher and dividend stopper provides a safeguard to investors’ interest payments,” he says.

While the growing appetite for such type of securities may highlight the generally low interest rate economies are in today, it would be key to watch how would companies with high gearing cope when and if interest rates move upwards.

The low interest rate environment is a sweet spot for both borrowers or issuers of perpetual debt, who will appreciate the low interest or coupon payments while investors would appreciate a slightly higher than usual yield for higher returns.

“Investors will always look out for any opportunities for yield pick-up.

“Likewise, borrowers will be on the look-out for cheaper fund-raising alternatives – this will be true in such an interest rate environment,” Siew says.

A growing number of Malaysian companies using perpetual bonds to raise funds

Creative accounting with innovative financing methods have no limits, and perpetual bonds are certainly growing as an avenue of choice for companies to raise funds in Malaysia.

Malaysian Rating Corporation’s (MARC) assistant vice president for ratings, Taufiq Kamal, notes that perpetual bonds have a long history in the global financial markets, and are often issued by banks to support their capital structure.

This class of debt has grown in popularity today and its avenue for fund-raising is not just limited to financial institutions nowadays.

“Increasingly, we are seeing corporates issuing perpetual bonds in Malaysia,” Taufiq says.

This class of debt gives flexibility to companies to raise funds and at the same time keep their gearing levels under control without the necessary dilution in equity base.

Perpetual securities are usually classified as a kind of equity under the international financing reporting standard and increases shareholders’ funds of the issuer group.

It also reduces gearing ratios by taking these extra liabilities off the balance sheet and lowers perceived debt levels to allow for companies to take on new projects.

This class of securities are often listed on three exchanges in this part of the world, at the London Stock Exchange, the Hong Kong Stock Exchange and the Singapore Stock Exchange.

Analysts have not been alarmed by this development and are cautiously monitoring this emerging development among Malaysian companies.

RAM Ratings head of structured finance ratings Siew Suet Ming tells StarBizWeek that perpetual bonds are a hybrid instrument that has characteristics of both debt and equity where it pays a fixed coupon but has an indefinite maturity.

“However, it often includes step-up rates to incentivise borrowers to (fully) redeem the bonds,” Siew says.

She notes that RAM would evaluate the nature and terms of the perpetual security to see if it is more ‘debt-like’ or ‘equity-like’ and accord the appropriate treatment in its credit assessment.

“If it is structured to behave more equity-like, perpetual instruments can be used as a means to reduce gearing,” Siew says.

Taufiq says that perpetual bonds provide benefit to both issuers and investors alike.

Taufiq: Increasingly, we are seeing corporates issuing perpetual bonds in Malaysia.

He notes that perpetual bonds are ranked with very much less importance (deeply subordinated) to senior debts given that these instruments provide a higher yield than seniors bonds through a series of interest payments.

“We believe this class of securities issuance adds to the diversity of funding sources available to issuers.

“Given the absence of repayment schedule as would be the case for typical bond issuance, it affords better liquidity management over the medium term,” Taufiq says.

He however notes that from an accounting perspective, these class of securities are treated fully as equity which allows companies to enlarge its “equity” but with no dilution in their equity base.

“This allows companies to manage their gearing levels.

However, it does not mean that only highly geared companies resort to issuing perpetual bonds,” he says.

While from an accounting perspective perpetual were considered as equity, Taufiq notes that the same does not necessarily hold true from a rating agency’s perspective.

“The key factors we consider are the length of time before a redemption can be made (non-call period), ability of the issuer to defer coupon payments, and interest step-up period and rates,” he says.

“For the perps that we have rated, issued by Sime Darby Plantation Sdn Bhd and DRB-Hicom Bhd, the equity credit given was 50%.

“The ratings on the perpetual securities were two notches below the rating of the senior unsecured debt obligations of the companies to reflect the deep subordination,” he adds.

He also says that given perpetual securities’ ratings are anchored to the senior debt rating, companies that intend to issue these class of securities would need to have a sound senior credit rating.

“Otherwise, interest payments would need to be higher, making the issuance of perpetual bonds a non-viable funding source,” Taufiq says.

RAM’s Siew says most corporate perpetual bonds are structured to with a call date, with the coupon payment repriced or stepped-up beyond the call date.

She notes that the step-up in coupon payments are often steep enough to incentivise borrowers to redeem at the call date, which effectively gives the corporate or investors a certain perspective on its maturity horizon.

“Typically, investors would already factor its expectations for additional duration risk in return for higher returns in the pricing for the perpetual security,” Siew says.

Meanwhile, Taufiq notes that the wide acceptance of perpetual securities indicates that both issuers and investors are aware of risks involved.

“For investors, a typical

I think you should ask why the selling is strong?

@ Vulture123

It depends on how you value the new biz. Genting does look at it differently.

If the Equanimity does 1 trip every month with 22 guest paying luxury living for USD50k per pax.

It should be able to cover all the operating expenses and still manage to get a decent profit.

I know what many will respond, USD50K? That's impossible.
My respond to you all: You haven't seen the ultra rich live yet.

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Posted by Vulture123 > Apr 4, 2019 9:33 AM | Report Abuse

Beside Jho Low and ultra rich individuals, who will buy a super luxury yacht costing millions that can also burn additional millions every month (maintenance, operational costs, high depreciation etc.). I am a Shareholder and not happy with the hit to the bottom line.

Well, it would take some time before the durian trees mature and bear fruits.
If indeed, the company plans to diversify, it would require substantial stake in PLS eg: 60%-70% to be able to enjoy the profits.

In the meanwhile, enjoy Duke 3 rally 1st.

Haha.
To be honest, it's more the other way around.
The warrant had run ahead of the mother share.

It should be fundamental leads the way 1st follow by movement in price to justify.

The other way around mean purely speculation.

It's quite obvious that the completion of the power plant is getting closer and this excitement will bring more buyers.

However, it's still very dependent on the delivery of the power plant on schedule that will determine whether the share price is sustainable.
Of course, other concern such as the property division, whether it will continue to bleed and the impact on the bottom line is also another factor to consider.

Iskandar Waterfront Holdings Sdn Bhd — a joint venture between Lim’s Credence Resources Sdn Bhd, Iskandar Investment Bhd and the Johor government — is the master developer of Danga Bay.

“When I first got to Danga Bay over 20 years ago, the water was blacker than my trousers, and it was very smelly. Who would have believed that I would be able to transform it into a waterfront area? Nobody believed that the area would one day become an economic corridor for Johor,” Lim remarks.

Will he be able to turn PLS Plantations into another success story that can become a meaningful contributor to Ekovest in the long run? Only time will tell.

Wow.
Seems everyone is looking forward for ERCL to proceed and loading up before the news is out.

@ DK66

Read it.
Interesting view.
Thumbs up for responding.
Hopefully, your TP RM6 to RM10 is "achievable" based on your lengthy write up.

It reminds me when I was much younger,I used to have these high TP theories and fundamental write ups as well.

Cheers!
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Posted by DK66 > Mar 31, 2019 10:19 PM | Report Abuse

https://klse.i3investor.com/blogs/Jaks%20resources/199051.jsp

WOw.
It's been awhile since it reach this level.
Let's wait for closing to know more.

Overvalued already as compared to other banks.

Can put the durian biz aside.
Having it with profit will be a bonus.
Without it also no impact.
Better focus on the Duke 3 completion in 1st quarter 2020, just less than 1 year from today.

The dividend for latest quarter is 30% lower as compared to the same previous quarter in 2018.
No guarantee in any biz.
Besides, the company is not getting any replenishment of their orderbook since last year.

@ stockraider

Current order book only RM17 billion.
It will last them for next 10 quarters with average RM1.7 bil per quarter.

Historically, the company average net profit margin in 2014 was the strongest at between 15% to 20%.
Let's be conservative at 15%.

Thus, in the next 10 quarters, assuming the RM17 bil is fully realised, it would have brought in RM2.55 bil excluding any sale or disposal of asset.

Even if assuming at 20% profit margin, total net profit would only be RM3.4 bil for the entire order book of RM17 billion in the next 10 quarters.


HOW TO ACHIEVE YOUR RM3BIL TO RM5BIL PER ANNUM EARNINGS?????????

@ Tian Bao Ming

Funny bro.


Posted by Tian Bao Ming > Mar 12, 2019 2:52 PM | Report Abuse

Yes, QR must be shitty and I won't tell you total share in issue 563m while treasury stock 46.8m. This share is hopeless, pls dispose all before it become worthless paper.

Yeah, you are right.

Initially, I also thought it was good after the restructuring, but was not aware that there's more impairment coming.
Till all the impairment are completed, I think there's not much catalyst to move forward.

The best part is the Sapura energy management do not provide any indication on further impairment.
They are fortunate to offset this round's impairment with the proceeds from disposal.
Else it would be heavy losses.

@ (70B-SAPNRG-3Yrs) Philip

Are you sure the company will be able to sustain the same dividend payout for the future?
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Posted by (70B-SAPNRG-3Yrs) Philip > Mar 26, 2019 11:59 PM | Report Abuse

GKENT is paying me 6% a year to hold the stock, so hold it I will.

the warrant expiring in June 2019.
Stay away and buy mother.

EPF focus on infrastructure investment for stability and consistent return


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https://www.thestartv.com/v/epf-to-focus-on-infrastructure-investments

Attractive price at 50 cent with impending completion of SPE highway (DUKE3) worth 3.8bil by Q1 2020 and potential dividend of 33 cent from EPF acquisition, assuming at 40% stake again..

Looks like it's attemptingg to breach the 1.13 level.

Good opportunity to buy cheaper.

https://www.reuters.com/article/vietnam-energy-prices/update-1-vietnam-hikes-retail-electricity-prices-by-836-pct-ministry-idUSL3N2172E1

EPD seems undecided whether to buy or sell

@ DickyMe

Not possible bro.
Talk facts, not rubbish here.
Unless every country stop using crude oil for the next 10 years.

The last time it hit USD20 pbl was 31 years ago during Asian financial crisis. Even that , only lasted less than 6 months before rebounding back to USD35 pbl.

The no of vehicles and machineries worldwide had increased more than 1,900% since then, the world demand had been capped to minimum USD40-USD45 pbl.

In 2016, crude oil drop to USD26 pbl only for a few weeks before rebounding back to above USD40 pbl.


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Posted by DickyMe > Mar 25, 2019 2:52 PM | Report Abuse

Brent crude will drop to under USD$20, This counter will be penny stock or delisted.

Wow, those who had brought last week, really all the best to you.

Unlike the other 2 counters that he bought, this counter have average volume of 200 mil daily.
His margin call is only a small dent probably comparable or smaller than the daily IDSS volume.

Next QR in May, by then reach 60 cent already.

Appreciation of the MYR against USD, should present slight weaknesses for Topglove in the coming months.
Expecting RM4:USD1 next few weeks.

@ Hwai Hooi

If margin call at this level, it will be disaster for many people.
-----------------------------------------------------------------------------------------------------------------------------

Hwai Hooi force to margin call

22/03/2019 9:31 AM

@ myfm_18

Yeah, thanks for reminder.
I recalled Ekovest with Samling got the Pan Borneo RM2.1 bil job. But was cancelled 1 month after GE14.

Maybe will be back.


https://www.theedgemarkets.com/article/ekovestsamling-jv-rm21-bil-pan-borneo-highway-job-now-void
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Posted by myfm_18 > Mar 22, 2019 3:04 AM | Report Abuse

https://www.theedgemarkets.com/article/cabinet-decide-pan-borneo-highw...

@ jojo2018

Those people who had picked up below RM1 would sell. Nothing astonishing about that.

To be honest I really have 2 question for Lim Kang Hoo:

1) Why would he want to share his pot of gold or money printing machine as what he shared that the company will have explosive growth?

Note: By selling to Ekovest, his direct earnings from PLS is reduced significantly from 23% to less than 10%.

2) Why would he want to lose his direct investment which he got it for RM1 per share, may appreciate to more than RM3 per share in the next 5 years?

Assuming PLS will bring in RM100 mil in profit in the next 5 years through palm oil and durian plantation, the EPS for PLS will fly which will push the counter towards fair value of more than rm3, which he would easily net 200% return on his investment.

@ (S = Qr) Philip

Are you the same as (70B-SAPNRG-3Yrs) Philip

@ SarifahSelinder

Not worrying.
I'm not so optismistic on the TP placed by many here.

If I recalled correctly, there's no one in this world become rich from building and running a power plant, not even the Forbes 100 richest in the world.

Unlike other types of biz such as property, technology, banking, petroleum, supermarket, fashion/luxury goods,etc, running a power plant is never a highly profitable biz and some incur losses most of the time.
You can check the result of large power companies in Asia for comparison.

The reason behind all these, is because the industry is mostly regulated.

Anyway, no one believe in all this.
They only know Jaks will reach 800 cent or 1000 cent.

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Posted by SarifahSelinder > Mar 21, 2019 10:53 AM | Report Abuse

newbie8080 u ni basically is worrying the sky is going to fall down

Posted by SarifahSelinder > Mar 21, 2019 10:53 AM | Report Abuse

newbie8080 u ni basically is worrying the sky is going to fall down

The impact towards topline , doesn't mean bottomline will apply also.
Depends really on the operating cost of the project involved.


Posted by hng33 > Mar 21, 2019 10:44 AM | Report Abuse

sapura energy synergy collaboration with OMV, to 6 fold increase production volume from 10,000 boe/day to 60,000 boe/day in 2023, a massive EPS growth ahead to propel sapura share recovery

https://www.youtube.com/watch?v=cc5i6XtKRXM

@ deMusangking

Mark my words, even at half of 800 cent is already hard to achieve.

My opinion on DK66 computation for his TP between rm6 to rm10 is based on perfect conditions such as :
1.40% ownership which currently not materialise yet a
2. Assuming zero delays
3. Zero cost escalation(in capex & opex) in next 25 years
4. No changes in government(incl policies)in the next 25 years
5. Forex remains unchanged for next 25 years(@RM 4.15:1USD)
6. No financial difficulty in loan servicing on the USD1.4 bil for both Jaks and CPECC.
7. Assuming interest rate at 6% for the next 25 years.
8. Assuming no financial crisis in Vietnam that impacts on demand of electricity despite the "guarantee of payment".
9. No financial criminal in the collaboration eg: fraud or scandals in the 25 years journey.
10. Assuming no changes in State Bank of Vietnam(Central Bank) policies on funds repatriation, capital control and money outflows. Able to repatriate the earnings back to Msia in the next 25 years without hiccups.
Remember China's recent restriction.
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Posted by deMusangking > Mar 21, 2019 10:18 AM | Report Abuse

what is 80 sen!!! me looking at 800 sen!!!!

haha

@ Icon8888

Why didn't purchase when it was below 60 cent recently.
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Posted by Icon8888 > Mar 21, 2019 10:12 AM | Report Abuse

I bought more at 79

X P

MD is saying one thing, slides & AR is saying another thing.

SO who is right?

Is the MD not able to meet the company's target?

Currently, is only 8000bpd. To reach 21,000bpd in 1 year and 9 months is almost impossible unless through acquisition.

12,000bpd by 2021 sounds reasonable.
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Posted by Dericlock > Mar 20, 2019 5:40 PM | Report Abuse

newbie8080, Just go and read their investors' slides. It is under (2017-2021) Missions.

Based on the annual report,it read as below.
Maybe the statement year 2021 refers to the 100 million reserves only.

If you break up the sentence,

"advancing us further towards achievement of our target of producing 20,000 barrels of oil per day"

"100 million barrels of proven and probable oil reserves by 2021"

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Financial Year (FY) 2018 was a year of scaling up for Hibiscus Petroleum Berhad
as we emerge bigger, stronger and more sustainable following the successful acquisition of the North Sabah Enhanced Oil Recovery Production Sharing Contract (North Sabah PSC) from Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd. The transaction gives us immediate access to proven and probable oil and gas reserves with immense future potential upside, adding a second positive cash flow stream to complement our Anasuria Cluster revenue. Our workforce has also expanded with the successful integration of the North Sabah PSC’s team of experienced industry professionals, thus increasing our scale and strengthening our capability as the first listed independent pure play oil and gas exploration and production company in Malaysia.

In addition, we have recently concluded a strategic 50% acquisition of participating interests in new discovered oilfields offshore in the United Kingdom. The stake in Production Licence No. P.198 Blocks 15/13a and 15/13b increases our aggregate contingent oil resources to 68.5 million barrels, advancing us further towards achievement of our target of producing 20,000 barrels of oil per day and 100 million barrels of proven and probable oil reserves by 2021.
This high aim and our upward growth trajectory are portrayed as momentum lines set against the images of our two assets, a North Sabah PSC production platform and the Anasuria Floating Production Storage and Offloading facility,and a scenery of optimism as the sun rises on the horizon of Mount Kinabalu.

Any idea why a glove maker specialist goes into condom manufacturing?

World largest condom manufacturer, Karex also struggle the last 10 quarters.

Topglove can be better?

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https://www.forbes.com/sites/forbesasia/2016/08/03/malaysias-karex-buys-innovative-new-condom-brands-landing-it-on-asias-bub-list/#58e79a7856e3

Close green.
Great tussle between buyers and sellers.

ERCL may proceed
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https://www.theedgemarkets.com/article/pm-mahathir-ecrl-project-can-proceed-when-negotiations-china-finalised