Tipster, true. Everything the co. gives you will be deducted from the share price. However, just want to clarify how much value left after all the corporate exercise. Based on the current share price of RM1.60 and market capitalization of RM356.66mil deduct the special div of 13 sen and capital repayment of 75sen which is total RM190.66mil, balance is RM166mil. Bear in mind that the company still left RM190mil for working capital, with the land use right and land to be planted of around RM50mil. The share price should be reflected after the capital repayment.

Special dividend is subjected to price adjustment. Capital reduction of 75 sen will not destroy the value of the company due to capital reduction/repayment is from the share capital, whereas special dividend or other form of dividend will be paid from the reserves.

Initially, I expected the sale proceed to reduce RM8mil to RM480million. Good news that just adjustment of RM1.5mil.

Any rumors about bonus issue ?

The announcement may indicate that Tien Wah might have already gotten wind of BAT's shut-down plan, and that the company already has an alternative plan in place to brace for the move. In fact, cash-rich Tien Wah last month proposed to undertake a renounce-able rights issue of 48.25 million new shares at an issue price of RM1 per rights share on the basis of one for every two existing shares. The rationale for the cash call was to expand production facilities in Indonesia and the Middle East.

Anyone would able to enlighten me that, what are those franchise under GOB's F&B segment ?

Now I'm waiting another good news from the directors. Which is to develop 20.5 acres of vacant land in Penang, that piece of land's NBV was RM7.8mil or RM380k per acres or RM8.8 per sq ft. If based on the current market value, it should be worth RM40mil / 20 sen per share.

This quarter result will be good. After consolidate the result from GLBhd, downstream division will improve drastically.

Previously, investors are worried about the listing status which will fall under cash company PN16. However, based on the justification from the management below, GL still own 339 ha plantation land in Sabah and plenty of land to be planted in Indonesia. For Property Development segment, one of the director is from UEM and would contribute positively in know-how and even JV with UEM in the near future to expand their business in Property Development. This is what I would relate for. The future value would be higher than current price 2x.

1) Plantation segment

Post disposal, GLBHD still owns approximately 339 ha plantation land in Sabah and has the rights to develop oil palm plantation on 8,157 ha land in Indonesia under Hak Guna Usaha status. In addition, GLBHD has obtained permits for plantation development (Izin Usaha Perkebunan) on 30,606 ha Location Permit (Izin Lokasi) land in Indonesia whilst another 2,387
ha land in Indonesia is under application for Hak Guna Usaha status.

As at 29 February 2016, GLBHD Group has planted 2,520 ha of the plantation land in Indonesia with oil palm trees. The oil palm trees were planted progressively since 2013 and are expected to mature by year 2018 as oil palm trees are expected to mature by the fourth (4th) year from planting. Moving forward, the Group will continue to expand its oil palm plantations in Indonesia over the next five (5) years.

2) Property Development Segment

GLBHD Group had in September 2015 completed its maiden property development project comprising 43 units of commercial shop lots with a built-up area of 5.19 acres and a gross development value (“GDV”) of RM52 million, namely “Midtown Signature Offices” in Sandakan,
Sabah. For the 6-month financial period ended 31 December 2015, 5 units were sold at RM6.2
million and contributed RM2.2 million to the PAT. There are 25 remaining unsold units as at
31 December 2015.

GLBHD Group also has a joint venture property development project in Kota Kinabalu (with a
RM150 million GDV) with the mayor of the city of Kota Kinabalu wherein GLBHD has a 60%
ownership (“Sinsuran Project”). Sinsuran Project involves the development of a commercial
centre with an estimated built up area of 86,020 square feet. Subject to all necessary
approvals being obtained and preparation work being completed, it is the GLBHD Group’s
intention to commence work on the Sinsuran Project by mid-2016. The Sinsuran Project is
expected to be completed over a period of three (3) years.

With the confirmation by AmInvestment. Tomorrow should be limit up.

AmInvestment Bank had, on behalf of GLBHD, applied for a waiver for GLBHD from being classified as an “Affected Listed Issuer” under Paragraph 8.03A of the Main Market Listing Requirements of Bursa Securities (“Listing Requirements”) upon completion of the Proposed Disposal of which Bursa Securities had approved the said application.

Accordingly, GLBHD will not be classified as an “Affected Listed Issuer” under Paragraph 8.03A of
the Listing Requirements. For clarification, GLBHD will also not be deemed as a “Cash Company” under Paragraph 8.03 and Practice Note 16 of the Listing Requirements.

My opinion is the cancellation really unlikely. After GLand collected the balance of purchase price and pay the dividend. I foresee will have corporate exercise such as bonus issue or consolidation of shares to either RM0.50 / RM1.00 par value. Hence, I'm not worry to buy more even at this price. But, my entry price is much lower than current price la.

My opinion does it matters to you ? Better you ask Martin for TP based on his TA.

If Monday, the request for suspension. Then you will know lo.

If you think that the deal will be cancelled due to minority shareholders' "protest". The below is explained how the balance purchase price or so called deposit shall be irrevocably utilized. Since, FGV being given the permission to used the deposit to pay for the redemption. Do you still think this is refundable ?

The balance purchase price amounting to Ringgit Malaysia Four Hundred Ninety One Million Two Hundred And Fifty Thousand (RM491,250,000.00) (“Balance Purchase Price”) which is equivalent to seventy five per cent (75%) of the Purchase Price and comprising of the following:-
(i) GLB Land Balance Purchase Price: RM 53,790,000.00
(ii) YPSB Balance Purchase Price: RM 282,157,500.00
(iii) SKSB Balance Purchase Price: RM 87,480,000.00
(iv) LKSB Balance Purchase Price: RM 38,947,500.00
(v) TEOPP Balance Purchase Price: RM 28,875,000.00
Total Balance Purchase Price: RM491,250,000.00

shall be deposited by PUP with the Stakeholders within seven (7) Business Days from the Unconditional Date and subject to PUP’s receipt of the Redemption Statement on or before the Unconditional Date, the Stakeholder shall be irrevocably be authorized to utilize the Balance
Purchase Price within seven (7) Business Days of receipt of the same in the following order of priority:-

(1) Redemption / partial redemption of GLB’s financing with HLBB to facilitate discharge of the GLB Land.

A portion of the Balance Purchase Price equivalent to the Redemption Sum payable to Hong Leong Bank Berhad (“HLBB”) shall be utilized by the Stakeholders to pay to HLBB for the purposes of redeeming and/or partially redeeming GLB’s borrowing with HLBB so
as to facilitate the release and discharge of the GLB Land.

(2) Redemption of the Subsidiary Companies’ outstanding loans / financing.

A portion of the Balance Purchase Price shall be utilized by the Stakeholders to pay the Redemption Sum to the respective Financiers for the purposes of redeeming in full all outstanding borrowings of the Subsidiary Companies so as to facilitate the release and discharge of all securities provided by such Subsidiary Companies to the respective Financiers.

(3) Redemption / Partial Redemption of all related borrowings of GLB or any of its subsidiaries pursuant to which securities have been provided by the Subsidiary Companies.

A portion of the Balance Purchase Price shall be utilized by the Stakeholders to pay the Redemption Sum to the relevant Financiers for the purposes of redeeming and/or partially redeeming GLB’s or any of its subsidiaries’ borrowing to which securities have been provided by the Subsidiary Companies so as to facilitate the release and discharge of all securities provided by such Subsidiary Companies to the respective Financiers in respect of such borrowings.

(4) Balance thereof shall be paid by PUP to GLB.

Any balance after settlement of payments of the Redemption Sum referred to in paragraphs (1), (2) and (3) above shall be released by the Stakeholders to GLB within fourteen (14) Business Days of presentation of the Land Transfer to the relevant land office.

Please read the signed document. There is no refund in due time.

True. They haven't acquired anything yet. Which including Golden Land. Just they've paid the deposits and not refundable deposit to Golden Land. Golden Land untung immediately due to all the redemption has been processed and paid on behalf of FGV. Immediately FGV cry until no tears.

If you check back to the time when they announced the acquisition of GL on 8 June 2015 and the acquisition of Indonesia's deal on the 9 June 2015. The impact was actually due to the second deal. The acquisition of GL does not have much impact on the share price. The gap down was due to EPF criticized FGV on the proposed acquisition in Indonesia. I would welcome the CEO of Felda to visit this forum, however, it will not chance the attitude of the management. Even EPF such an influential institutional investor also cannot change the ossification management. Who are we that can able to alter their decision ?

FGV_, the CPO price is not the major influence on the current share price. Is the management really working hard for the company objective ? Currently, we noticed that they are very aggressive to acquire brown field lands, businesses from other countries. Is this the correct method to grow ? If you are the major shareholder on this company, I would think that you better use your power to influence them. If you are not, I would suggest you dispose it.

FGV_, if FGV want to cancel the deal. They will need to pay a high price on it. Bear in mind that this is taking about 300mil balance payment. Not 300 ringgit. If they want to cancel it, why need to have mutual agreement to postpone another week ? They can do so immediately. I highly suggest you refer to the clause that both parties signed on 8 June 2015 and only think what is the consequences of cancel the deal. If deposit paid up to 55% and then cancel the deal, no one will make any covenant with them (FGV) anymore.

Hi FGV_, how do you know the Golden Land deal is overpriced ? How do you evaluate the value ? It seems to me that Golden Land is undervalue and it should sell higher than 655Mil as this management is aggressive to replanting the Indonesia's Land. Besides, the Land in Sabah is much valuable than those in Indonesia. Now, the trees are mature and start to contribute positively to Gland.

Good thing that they don't have mutual agreement to postpone it for 3 months. Need to wait patiently another week to next Monday.

Nice article YiStock.
Hi Icon, Actually the example that Yistock using is almost similar with your understanding. Just he is using Trade receivables and trade payables (SOFP) as example and yours revenues (POL) or net USD liabilities.

Last quarter, most of the export counters reported loss in foreign exchange. In this matter, we can see that no really RM weakening/strengthening can make a difference. If the operation of the company is sound, then the exposure should be sensible.

FGV_, your email to complain really works. Could you enlightened us the way you email them? It is hardly for a company like FGV, willing to listen to minority shareholders. Now I really respect you as they will cancel the deal with Golden Land in order to purchase the business in China.

If you invest the company based on the foreign exchange gain / loss instead of operation.Then, I would suggest you don't buy this counter as this counter is highly affected by the currency exchange. However, if you buy due to the operation. You may choose to average down.

riskabsorber Based on latest quarterly result of SAM & FLBHD. My view is the foreign exchange gain really doesn't attractive enough to buy such counters. Eventually, next 2 quarters will see drastic correction after MYR strengthening.
23/02/2016 07:00


riskabsorber True, FLBHD is doing well operationally. In term of currency exchange, export counters will not benefit in long term due to the foreign customers will take this opportunity to bargain for lower price or postpone the payment that will increase the receivable days.
23/02/2016 10:20

Good effort.

The acquisition price for each Golden Land share is for RM655mil or RM2.93 per share. That deal after the proposed capital reduction of RM0,75 plus special dividend of RM0.13 would now value each share at roughly RM2.05 , a sizable discount to its current trading price of only RM1.59. As you can imagine, there are plenty of reasons for the market to remain skeptical. However, based on the recent quarterly result from both companies (GL and FGV). The collection is showing genuine deal to be completed within this month. Let's see.

GL already collected partial payment from FGV amounting up to RM365.5mil as at 31 December 2015. I expected the balance 30% will be collected this week or early next week. Based on the current share price movement, I believe insiders already start collecting the shares discreetly.

FGV_, I can guess what will they reply to your email.

"The Company is of the opinion that the complain is frivolous, vexatious and discloses no cause of action"

FGV_, I can guess what will they reply to your email.

"The Company is of the opinion that the complain is frivolous, vexatious and discloses no cause of action"

FGV_, you will complete your complaint in the end of 2016 when everything has been settled and paid off. TTB during ICAP's AGM also raised the concern to MSWG yet nothing can be done.

Maybank given the latest TP to RM1.33

https://factsetpdf.maybank-ke.com/PDF/CN__8a46c4c13eb64225b6fa2832665f55ec.pdf?

Based on the latest quarterly result, FGV has been paid RM 365.5mil to Golden Land as deposit. The deal almost confirmed and now just waiting to pay another 30% or 196.5mil to Golden Land. Count down....

Golden Land has been received 55% of the purchase price from FGV. Very unlikely will cancel the deal. Sometimes, no news not equal to bad news. Estimated to receive another 30% within this week.

chankp7010 Palm fibre price is declining rapidly. China buyers have been pushing prices down due to declining demand for their mattresses. I would expect the next quarter result to be poorer than the latest published result. As HHG has committed so much capital expenditure in Gua Musang
there is a possibility of facing cash flow problems in subsequent years. I have exited this counter even at a loss.
Suggest avoid this counter to move on to other better prospective companies
05/12/2015 08:55

chankp7010 HHG is involved in biomass industry. I considered it as a very volatile business. Currently, this business is facing problems securing buyers in China. I heard rumors about plant being shut down to cut production. If this is true, then coming financial reports will be doomed. Please do your own research before investing in HHG; market price will be even lower than current price if those reports that I gathered is truthful. Personally, I have disposed all my holdings even at a loss in this counter.
30/12/2015 10:23

chankp7010 Please run away from HH Group if you wish to save your hard earned cash. Palm fibre is not sellable in China anymore. Romours were circulating that its factory has ceased few lines of production due to slackened demands! Do you believe such talk? Why not pay a visit to the plant to see for yourself
02/01/2016 08:27

chankp7010 You don't need to be an expert. If you are in this trade of palm fibre, then you will know how difficult to see to China market now. Not only cheap but quality must be good. So cheap that it is below cost for HHG. Just wait till end of February to view this latest quarter results, you will be convinced what I said.
04/01/2016 12:46

chankp7010 For yeohhh, In this forum for investors, all are encouraged to give their thoughts and viewpoints. My purpose of writing is noble, trying to warn those naives and newbies to get out of this doomed counter. If they failed to do so now, they might be trapped once the coming quarter results are released. If you are not in agreement with what I have written, please ignore them. Also if my language has hurt you, I now apologized for it. Even though you posted what I have said on 30/12/15 and 4/1/2016, the contents are still the same, not contradictory. AVOID HHG
04/01/2016 20:01

chankp7010 My prediction is, for the coming quarter results will be very bad! Those in the same line of business in Palm fibre have suffered tremousdously. I am not here to kill your spirit but to provide a strong warning so that you can act shrewdly and prudently. Your money and your action will be accounted for,by yourself and not someone else.
15/01/2016 07:23


Can see how people predicted the results way before the announcement.

Need to be careful for this counter, the cash flow is having issue. This is the reason why the director was exercising the warrant in order to save the company. Based on the latest quarter result, the bank balance as at 31 December 2015 left 3 mil++ and the current liabilities is greater than the current assets. Debts starts to piling up to 324 mil. Dangerous counter to avoid.

FGV will announce their result end of today. We will know actually which purchase will be more favorable to FGV. I strongly believe the GL Bhd deal will be go through. My personal opinion for the acquisition of China edible oil producer is too risky as it is not easy to deal business with China ppl, especially those who are unable to speak Mandarin.

Definitely the accounts department is manipulating the whole accounts. Otherwise, what is the reason previous quarter recognized the forex gain of RM12mil and this quarter reversing it due to the report is going to audit by the auditor.

forex loss almost 8% of total market capitalization. How could it possible ?

We will see how is the disposal being completed within a week. FGV is transferring the fund in order to pay GL. Based on the latest GL's quarterly report, Discontinued operation contributing RM21mil Segment profit. Apparently, FGV need it seriously to recover from losses.

The accounts department for Dolomite gave such justification below.

The profit before interest and tax of the thermal power generation segment for the year under review is RM 0.115 million compared to loss before interest and tax of RM 3.744 million in the previous corresponding year. The profit before interest and tax in the year under review is mainly due to gain on foreign exchange of RM 4.694 million.

The Group posted a pre-tax loss of RM 8.741 million compared with the preceding quarter pre-tax profit of RM 9.175 million. The pre-tax loss for the quarter under review is mainly due to loss on foreign exchange of RM 11.951 million compared to gain on foreign exchange of RM 12.051 million in the preceding quarter.

Last quarter's foreign exchange gain RM12.051 mil, this quarter become loss of RM11.951 mil. Looks like they are actually investing in a very uncertain market and the forex is highly fluctuate. Besides, still no revenue has been generated even the thermal power generation should be started the business at July 2015. 6 months without any power been generated. It is not an easy task to deal with those authority in China.

hng33,

Yes, I agreed with you about all the disposal of GOB will reap one off profit, and I foresee the disposal of Da'men will not materialize this financial year. Several conditions are yet to fulfill and current occupancy of Da'men is less than 70% even past week visit. The loan and borrowing was something that disappointed me. Beginning of the year, they had disposed a piece of land and use the proceed to repay the bank borrowing. However, the loan is kept increasing nearly RM50mil. Then I really do not know the reason on the previous disposal and current disposal of land in BK.

Good move to cut loss. This counter will need to wait under the disposal of Da'men being completed.

The disposal of lands should be reduced the loan and borrowing. Yet, the loan never seems reduce at all. This is a proof of mismanagement of cash flow. F&B's revenue is 24m and losses RM16m. I believe there is not an accounting treatment adjustment, all losses are genuinely reflected the management is even worse than the previous one. If Q1'15 GOB did not dispose that piece of land, this counter will be trading at 20-30 sen.

as per my expectation, losses this quarter is RM20m. Tomorrow will drop lower than 40 sen.

The problem for Bintai is the impairment almost 7% out of total revenue. Which mean this will be distorted the performance of the company definitely.

The bad debt written-off is RM10m that impact the EBITDA. Otherwise, this quarter already in green. The coming quarter will be better.

Looks like my expectation is accurate. This qtr will be at loss.

True, FLBHD is doing well operationally. In term of currency exchange, export counters will not benefit in long term due to the foreign customers will take this opportunity to bargain for lower price or postpone the payment that will increase the receivable days.

Based on latest quarterly result of SAM & FLBHD. My view is the foreign exchange gain really doesn't attractive enough to buy such counters. Eventually, next 2 quarters will see drastic correction after MYR strengthening.

I foresee another quarterly result losses. Hopefully I'm wrong.