Rational readers, please take note. Warrior_Justice has declined/is unable to answer my simple yes/no question.

That should tell you how "credible" he is.

Quote:
Warrior_Justice Taciturn ..... ooh Taciturn,
You are merely half baked
Showing you really short sighted
22/02/2016 13:57

You said "The COO aka no qualification become director."

I ask you here and now, is he a director of Benalec Holdings Bhd? Yes or no. A simple question.

Nothing to do with "short sighted".

You made a statement. Prove it.

Quote:
Warrior_Justice The COO aka no qualification become director
22/02/2016 11:34

Interesting. As far as I can see, the COO is not a director of Benalec Holdings Bhd.

But according to you, he is.

Quote: Warrior_Justice The return of respectable Dragon Hero Aka Datuk Leaw Ah Chye
16/02/2016 16:38

ROFL. I tend to ignore trolls these days (especially ones who claim they will be there for the general meeting but do not have the guts to show up) but this statement is hilarious.

Leaw Ah Chye? Respectable?

ROFLMAO.

The person who LIED to the board and took secret profits via undisclosed RPTs.

Respectable? Eh, please lah, might as well throw in phrases such as integrable, honest and as incorruptible as Najib.

I have never had the (dubious) pleasure of meeting him. But from what I have been told, he is somewhat less eloquent than his older brother, the other crook, Leaw Tua Choon.

You are kidding right?

The comments on this forum makes no difference to the share price.

Almost all readers here are small time retail investors.

If you actually believe that the comments here affect the outcome of the share price, I would strongly suggest you seek professional investing assistance.

I have never once recommended a buy/sell instruction for this company. Only the biggest liar (who has never once dared to show his face) likes to claim it so.

The only person who makes the decision is yourself, you are the one that speaks to the broker/clicks on the browser.

Unlike some people (i.e. namely yourself), I try to state facts and my interpretation of them. You declined to accept them as facts and instead gave your own bullshit views. I.e. remember when you said that this company could go into PN17?

Till today, you still have declined to elaborate on that moronic statement. Still waiting for you to grow a pair and try (come on lah, try) to explain it.

Let me make it clear, I give my views. I am not a soothsayer, I do not see how the market/share price will look in xxx time. You seem unable (and unwilling) to understand that.

I only list _my_ views on the company. Don't like my views? Feel free to skip it.


Or perhaps if you have the guts (and are actually a shareholder instead of a troll), show up at the next AGM/EGM and meet me face to face. Have the spine to say to my face what you (and others) have blathered about behind the veil of an anonymous browser.

For instance, I would love to see kukuman face to face. I would to see if he has the guts to back up his bullshit face to face. But of course we all know, he along with you, where, bentley, ryanteh and other assorted anonymous screen names would feel happier posting crap without any repercussions.

My, my. How interesting.

Someone has been deleting his own postings again.

Hard to defend the indefensible after all.

Didn't realise Benalec had resubmitted the Pengerang DEIA. Good that they've gotten approval on that.

Happy that at least this and Tanjung Piai's EIA statuses are completed. Now just awaiting for an offtaker for Tanjung Piai.

As stated by management before, the priority is still Tanjung Piai. I personally doubt there will be as much as a focus to push to sell Pengerang for now. Whether they can achieve it (Tanjung Piai's sale) during weak economic conditions and are low oil prices (positive here being lower reclamation cost, negative being that an off-taker may not be as keen or as much as in a hurry to take it).

Am glad that the two older brothers are out of the company. To wipe out the gloss and bullshit that someone here is trying to put (the same person who claimed he would be at the AGM to ask hard questions but of course chickened out with no explanation), the two older brothers as far as I can see are crooks.

They committed multiple undisclosed RPTs earning secret profits for themselves. I sure as hell would not want them running the firm. With their track record, who knows what else they would gasak, and screw the rest of the shareholders.

Of course when one is a dutiful son, one will continue to try to defend such crooks, no?

Quarterly results for Q1FY16.

Revenue: RM44.04m
Profit from Operations: RM6.315m
Profit Before Tax: RM2.001m
Net Profit: RM1.861m

Small profit overall. Finance costs took a decent of it (RM4.314m) or you'd be looking at a net profit of almost RM6m. Higher finance costs came from the RM200m CB interest of course.

Am not happy about the latest quarterly results notes. For some reason most of section 22 (Status of corporate proposals and utilisation of proceeds) has been culled. In previous results, there was always a breakdown on outstanding land sales and their statuses which helps to determine how things are going. That has been removed. Already made one complaint about it, going to make more.


During the AGM, I asked several questions on the status of announce land sales.

1) Faithview Supreme - RM51.47m. This was expected to have been booked during this quarter but it did not happen. As at the AGM, it still has not been booked. The delay seems to be on the buyers side. If it is not booked within the next one month or so, it will not be recognised for Q2FY16. Not happy overall about this but it seems to be out of management's control.

2) Ultra Harmony - 4 tranches, about RM50m each. Tranche 1 was booked in Q4FY15. According to management, Tranche 2 was booked as at two weeks ago (meaning it should be reflected in the Q2FY16 results. Still expecting completion of all tranches in FY15.

3. Jadex Land (RM35.4m), Quality Paradise (RM71.84m), Arena Progresif (RM128.9m) - All these land sales involved progress payments. 10% on signing, 20% after 3 months of signing, 30% after 6 months of signing, final 40% after 12 months of signing.

From what I understand, for all three deals, Benalec has received the first three stages of payment (10%, 20% and 30%) and is now waiting for the final payment. None of these payments can be booked as revenue until the last payment has been received and the title transferred. Expected completion of all three deals is again FY16.

Attended the AGM. It was a relatively tame affair.

All resolutions voted by poll. All passed by 99% of votes except for resolution reelecting auditors (and their fees) which passed with 95% of votes.

No questions were made by any of the attendees regarding:

a) The MD's salary
b) impairments
c) Camelot/Arthurian references

Evidently, someone is spewing bullshit once again on this forum.

Quarterly results for Q1FY16 out tonight. Will make additional comments then.

Salcon is Benalec's choice of contractor for water services.

The DEIA does not specify Benalec MUST use Salcon. They can choose anyone they one. Hell they can choose Puncak Niaga if they so want.

Tanjung Piai is approved for 3400 acres.

Tanjung Piai Phase 1 is 1000 acres.

When you cannot even get the facts right and have to resort to uncalled for insults it says a lot about you.

I have wasted enough time with trolls for the day. Feel free to continue cakap kepada angin.

It is postings by people like Bentley that leave me with so much disgust when I read them.

Nowhere in ANY of Benalec's announcements have they stated that they are selling water.

The MOU with Salcon is part of the DEIA compliance requirements. Tanjung Piai HAS to have its own water supply and sewerage treatment. They cannot just piggyback on Syarikat Air Johor.

If you cannot even figure out that simplistic fact, please, just go away.

What a moron.

JustinM17: Are you asking these questions because you are honestly looking for answers or are you intending to insult me? Addressing me as "Mr Benalec professional" makes me wonder.

As I stated to you once before, I am not an employee, nor a director or insider of the company. I have no control on whether you choose to believe that or not,

I will assume that you actually want to know more and are not just trolling the forum.

Rather than me spoon feeding you every step of the way, here is what I suggest you do. Read the quarterly result notes. That will give you an idea of the company's commencement date for reclamation works of Tanjung Piai. There is no point in me saying it to you here since you might disbelieve it.

Because reclamation works are to begin only this year, and the company's policy has shifted to reclaim then sell, quite obviously no revenue has been booked for it.


Benalec first made a public announcement regarding Tanjung Piai in November 2011. Has it been too long? I do not know, you decide.

For comparison purposes, it took Ngau of Dialog about 10 years to get everything approved for their Pengerang site (from getting the concession to finishing up with the DEIA approval). Even after that it still took a couple of years to really get things going.

And I know it was pretty much hellish for Dialog to get all the approvals. They were shot down once on the DEIA and had to resubmit from what I understand. Till now I am still impressed with Ngau for what he has grown his firm into. And I like that he is still a humble man, with no airs to himself.


Am I antsy that it is taking Benalec so long to get things going? Yes, I am. And I blame the whole brou-ha-ha with the brothers as part of it. It really put the company off its course.

Do I still think Tanjung Piai will be a game changer for the company? Yes, I do. Without it, Benalec has nothing going for it.

I have seen a lot of denigrating comments so far about Benalec, a lot of it without any attempt at justification or elaboration.

From Ryanteh's fantastic links that are several years old (and frankly, in my view no longer relevant) as well as claiming that the company will go into PN17 if it the bond issue did not happen (he still has not explained how that would have happened); to Bentley's expert postings here about other firms that have completely nothing to do with Benalec, including one about a sand barge that sank (till now, I am still waiting to explain how it is relevant, but I am not waiting for it with bated breath); to where who claimed that DEIA approvals HAVE to come from Najib; and let us not forget the biggest troll on this forum who claims to have "confidential evidences" about the company's wrongdoings but has no guts to actually show what it is.

I see so many postings condemning the company including how the current board and MD are "crooks" yet I have not seen one peep of such comment during the past four general meetings I have attended. Everyone here seems to be armchair generals, not one is willing to get up and actually do something if they actually feel strongly about it.

So JustinM17, if you are honestly interested in sharing knowledge and not trolling, why don't you do your part and start contributing something realistic to this forum. Be it a fundamental or technical view.

When I choose to provide whatever personal analysis I make here for free, I get condemned and I get insulted. I am seriously considering withdrawing completely from here. No doubt my denigrators will be jumping up and down with joy. After all, I am sure most people will prefer one-liner analysis such as "louzy company" no?

Director's fees. Question asked and answered. I am not going to waste my time on it. If you want to keep harping on it, that is your privilege.

I would like to assume the independent directors have some integrity. Our Chairman is a lawyer of good standing and I cannot imagine him being party to any shenanigans. Did the board fail to detect the undisclosed RPTs? Yes. Do you know how hard it is to hide such undisclosed RPTs? Not very. Do I blame the independent directors? No, I blame the two older brothers. They were the crooks.

Also, do you know how big Benalec is? You get rid of the board, you get rid of the MD, and let us say you get rid of the upper management. Who is left?

The company would be doomed then.

And do you know who is the one with the kangtao over Tanjung Piai, i.e. the one with the connections with the Johor Palace? I will give you a hint.

It is not the two older brothers.

Try and imagine a situation where you no longer have a connection with the Sultan. You decide if that is "best" for the company.

Funny, I don't seem to have stated that Kenneth Chin felt "bored".

I only stated that he wanted to experience new things, i.e. what we'd call professional development.

Of course some people like to interpret and twist the words of others to suit their own needs.

Most entertaining statement of the day is someone claiming he is only interested in this counter's performance.

And the best way to do that is to condemn, condemn and condemn some more! Pile on the crap on the company. Try to do your bit to give the company more bad press and ultimately resulting in a lower share price.

Yes, of course, in the la-la land way of doing things that is how it is done.

Comments on this forum always entertain me.

Lim Sze Yean is the CFO of Benalec.

Kenneth Chin is STILL an employee of Benalec. From what I understand, he wanted to experience new aspects of the group since the CFO role isn't as complicated a role in the company. Besides being an executive of the firm, if you read announcements, you will take note that he and the COO plus the MD are usually the nominee directors for subsidiaries of the firm.

As per usual, when there is no bad news to harp on, you can see infamous characters on this board posting old news. Ryanteh for instance is a genius when it comes to posting articles that are at least half a year to several years old!

The whole issue with the brothers is finished. The two older brothers who were the crooks are kaput from the company. They no longer hold any position, executive or otherwise.

As you can see, there is still a bodek group who are in love with said older brothers posting on this forum. Makes you wonder why they love such crooks, no?

Foo Polin is still a shareholder of Benalec through her stake in the family firm. If one is referring to her selling down her PERSONAL holdings that were granted to her on listing, one should take into account one simple fact.

Where is Foo Polin based? What does she do? Figure that one out and you're halfway to the answer.

I have been made to understand though as to who one of the posters on this forum is. I liked the description someone gave me of him, "Sitting on his fat ass, playing video games all day. Spoilt as hell, to the point that someone bought him a Mercedes for his first day at work car". Gave me quite a chuckle.

Q4FY15 results are out.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4838749

Revenue: RM59.447m
Net Profit (attributable to shareholders): RM1.985m

My personal view:
1. Interestingly, the company managed to post a net profit after all for this quarter, although I had been fully expecting it to post a loss due to missing the deadline for the land disposal to Faithview Supreme Development Sdn Bhd (RM51.47m) due to the delay of issuance of land title.

Overall, the company ended the financial year with a small net profit (RM8.458m).


2. The convertible bond issue was completed and the draw down of funds has occured. Looks like they've drawn down RM180m out of the RM200m issued.

Benalec's in a strong cash position for oeprations, with cash and bank balances at RM185m as at the end of Q4FY15 (compared to RM4.6m at the end of Q3FY15).

Of course much of the cash is likely earmarked for the beginning of Tanjung Piai's Phase 1 reclamation works. (based off the reclaim first, then sale concept)


3. Inventories, receivables and payables, not much to comment about. Looks fine to me.


4. Outstanding sales/contracts and their timelines:
Based off the notes to the account, the following are points to consider (note that their accuracy can be viewed as caveat emptor, as there was a delay with the land title application for Faithview Supreme as I've stated)

Faithview Supreme - RM51.47m - expected completion is Q3CY15 (by end September 2015)

Ultra Harmony - RM235.13m - tranche 1 out of 4 is completed and booked (as per this quarterly result), leaving a balance of RM183.64m over three remaining tranches. Expected Completion is Q1CY16 (by end March 2016).

In the original EGM circular for this sale (dated 10 June 2014), Benalec stated they were targetting completion of all 4 tranches by July 2016. So they're looking at closing at least 4 months earlier then expected, which is good.

Jadex Land & Quality Paradise - RM107.26m - this was a staggered payment sale, i.e. several installment payments would be made by the buyer. The whole sale will _only_ be booked upon the last payment. They are looking at closing this sale by Q4CY15 (end December 2015).

Arena Progresif - RM128.9m - Same sale terms as Jadex, staggered payment. Completion by Q1CY16 (end March 2016).

A quick overview in terms of revenue gives you:

Q1FY16 (end Sep 2015) - RM51.47m
Q2FY16 (end Dec 2015) - RM107.26m
Q3FY16 (end Mar 2016) - RM128.9m

This does not include Ultra Harmony's three tranches, but if you assume it's divided equally into each quarter:

Q1FY16 - RM112.68m
Q2FY16 - RM168.47m
Q3FY16 - RM190.11m

This would be extremely commendable revenue figures for the company.


One interesting point, is that the company states that no part of the RM203m reclamation contract with Ultra Green Sdn Bhd has been recognised as revenue even though I have been told that reclamation works has already commenced for several months.

Have to admit being a bit surprised at that as since this is a cash contract, one would assume you'd be billing your client regularly. Anyhow, it should be interesting to see how much revenue is booked from this job.


Conclusion
The market is currently like shit and we here in Malaysia are getting the stiff end of things with incompetent politicians, external factors et al. Trade with caution at your own volition.

As always, any constructive comments, questions or the like will be appreciated. Trolls will as always be ignored.

Entertaining series of postings.

I have nothing to write about the company at this moment, so I have not written anything.

Unlike a few here who will constantly chime up with share price list lah, and insults.

Next posting from me (for the more serious investors) will come after the quarterly results are out and I have a chance to review it.

And as I have said in my previous postings, I am not expecting it to be a good quarter based on the previous quarter's announcements.

Growing interest in Benalec
http://www.theedgemarkets.com/my/article/growing-interest-benalec-shares

FYI, Q4FY15 results are out this month (probably closer to the end of the month). Based on the previous quarter's results and notes, I believe that this quarter will show a loss.

The quantum of any such loss is the big issue. Too big an amount and it will push FY15 into a loss.

Note, that this is purely my assumption based on what I have read. I could very well be wrong.

Caveat emptor, let the buyer beware.

hcsjeff: Yeah, my friends have been asking me if it is sustainable assuming that there is no news coming. With the slack volume it is hard to imagine it continuing in all honesty.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4807197

MATERIAL LITIGATION BENALEC HOLDINGS BERHAD ("BENALEC" OR "THE COMPANY") Writ of Summons and Statement of Claim filed by Glenmarie Cove Development Sdn Bhd vs 1) OG Marine Sdn Bhd 2) Benalec Sdn Bhd (Shah Alam Sessions Court Summons No: B53-1-07/2015)

Lawsuit against Benalec's wholly owned subsidiaries.

Does not seem to be really material though. Potential damages capped to under RM1 million ringgit.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4772961

Clarification regarding the expiry of the term sheet with 1MYSOT.


And also:
http://www.thestar.com.my/Business/Business-News/2015/06/15/Benalec-forging-ahead-with-Tanjung-Piai-reclamation-project/?style=biz

Benalec to forge ahead with Tanjung Piai reclamation project

I have _never_ once told anyone on this forum to buy or sell their shares. I give my analysis, it is up to readers to decide whether to make that decision. No one is putting a gun to your head.

I understand that some people with their lesser intelligence cannot understand that:

a) the stock market is like shit at the moment. It does not help that the economy and our government are screwed up
b) Benalec's last quarterly results was beyond crap. And as I have stressed before when said results comes out, I do not expect the upcoming 4th quarter results to be any better. Again this is _MY_ analysis. I am not omniscient, else I would not be here wasting time writing on this board when there are parasites like the above making stupid posts.
c) The world economy looks more buggered up than ever. Greece looks totally screwed and hey, we are gonna have one hell of a cascading effect.

You can call it spinning all you want. At least I stand by my points made. Tell me, what have YOU contributed to this forum? Except having to change your userid to its current one after your previous ID stinks worse than chao tao fu.

All you can do is "pusing, pusing" with your negative points. Any fundamental analysis? Any real points to make about the company? Nono, make your grand statements, like how eldest brother donated a van in Melaka. That is the highlight of your existence here.

That is the best he can do. A spineless coward, when no doubt the current ID stinks as bad as its previous one, he will change it once again.

zero: What to do, unauthorised fan club mah. :p

The fellar cannot argue with me rationally., so the best he can do is to spam and try to obfuscate my postings.

Bently: Keep carrying on with your irrelevant news links and petty bullshit.

If you actually believe that what I have given you is insider information, then please, report me to the SC. I laid down that challenge to one spineless cur (where) and he of course did not have the pair to back it up.

I have wasted enough of my time with you as is. Feel free to join the exalted ranks of the "godlike" beings here including but not limited to kukuman, where et al.

Oh and I note, you have declined (as per usual with a lot of people here) to explain WHY you are posting links to irrelevant articles on this board, the Benalec board. Not the MPIC board, not the Sime Darby board, not the Tanjung Offshore board, and not the board for sank barges that sink. The Benalec board.

This is my final posting towards you.

zero: Agreed. Benalec's mistake was in making the term sheet for phase 1 exclusive with 1MYSOT.

Overall they have been pretty listless ever since the brouhaha with the elder brothers (the delay in pushing for the DEIA application is a good example).

I like your second paragraph, nicely put. Heh.

junstinm17: I have posted this point again and again... and now, again.

I am not an employee of Benalec.

I am not a director of Benalec.

I do not have any business dealings with Benalec.

What I am, is a shareholder of Benalec.

On a personal level, I enjoy doing fundamental research on companies that I am interested in. Unfortunately, as this is not my professional job, I am limited in time and effort I can put in.

I can either cover a bunch of companies to some measure and give a half-baked analysis of them.

Or concentrate on one or two, and focus on them and give a reasonably decent analysis.

What differentiates me from other investors? I actually put in the damned effort needed to do analysis. Do not believe me? Look at this forum. There are so many posters who ask the same... damned... question again and again. They cannot even be bothered to look at previous postings to see if the answer to queries are there.

I take the effort to pick up the device known as the telephone, to ask people questions when I have them for my own analysis. I take the effort to attend general meetings and be a pain in the ass in trying to get direct face to face answers, which is also a good time to get a sense of how honest and straightforward the people I am dealing with are.

I take the effort to read annual reports, company announcements, and professional analyst reports (half of which are rubbish) before coming to my conclusions.

And finally, I post my findings and beliefs up here, without compensation, only the thanks of some readers. Why do I do this? So that some of the readers here would get a better sense of how things stand. Why do I respond to questions and queries by others? Because, believe it or not, it makes me think. Sometimes I may overlook things but when replying to others, I may realise it.

Am I supportive of the company (as you say), yes I am, to the sense that I think that the company's prospects are still good over the next couple of years, and further than that even once Tanjung Piai's sales kicks up (yeah, some of you may think this is a pipe dream).

But does it mean that I _only_ post good things about the company? Nope, take a look at my last series of postings after the latest quarterly report. And also to the points I have made in saying the last quarter of FY15 is going to be a miserable one too. If you think I am still happy after reading those postings, you are gravely mistaken.


There are days that I think of just giving up posting here. I am sure a few people here would be jumping up and down with joy at that thought. After all, why bother when I get hammered for giving _MY_ views on the matter.

As I always say, if you do not like what I read, if you think I am lying, feel free to skip it. After all, you can always read "informative" (i.e. pointlessly irrelevant to Benalec) weblinks provided by people like Bently. You can always rely on the "god-like" analysis (heh) of people like kukuman, ryanteh, where and losing for your investing sentiments here. After all, one sentence postings with phrases akin to "louzy company" are far better than my own detailed analysis, no?

This incident occurred almost up to two years ago. The articles are more than a year old.

As can be seen, the "expert" in this forum (ryanteh) who said that Benalec will be a PN17 company if the convertible bond issue did not go true is still posting old articles. I take it you cannot find any new material to post here?

I am surprised though that Bently has not joined in the horde further by posting links to irrelevant articles on this forum. Previous said postings included links to incidents involving Tanjung Offshore, Sime Darby, MPIC and also a news report about a barge with chinese nationals sinking off the coast of Malaysia.

All these articles have something in common, they have absolutely nothing to do with Benalec. When I asked why Bently posted said articles, surprise surprise, there was no reply.

Stay tuned folks as jjwong's clone will soon chime up with his regular posting about the directors remuneration, whilst the other has been will be here to show you a historical share price chart as he "defends" people against Benalec, and finally the photocopy of "where" will come up with another bunch of inanities about the company.

viktor2u: Realistically, it makes no difference. Since last year it looked pretty clear that no deal through 1MYSOT would happen.

Personal view on the this:
The bad: Market might react negatively to the news. Those who do not follow the company closely will give the standard, "Die lah!" exclamation.
The good: Benalec is free to sell phase 1 of Tanjung Piai to other potential offtakers. The term sheet stated that phase 1 negotiations were exclusively with 1MYSOT. FYI, from my understanding, phase 1 is the most "attractive" of the three phases.


ymtan: Well, here's to hoping for better news ahead. Personally, I am a fairly pessimistic about the market right now since there seems to be a lot more bad news going around than good. Even my blue chip holdings took a hit, although being blue chip I am not too worried. Just depressing to see the net worth going down lah.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4770633

1MYSOT term sheet expiry announcement.

As expected, it is not being renewed.

I get my information either from officers of the company, personal research or from members of interested industries.

rizerlee: 1MYSOT is just an agent or middle man. Benalec negotiates with them through its 70% owned subsidiary (Spektrum Kukuh Sdn Bhd), and 1MYSOT negotiates with an Abu Dhabian state investment corporation.

If an agreement had been signed, payment would be made from the Abu Dhabi firm to 1MYSOT which takes a percentage as the agent, with the remainder being paid to Spektrum Kukuh. Overall 1MYSOT does not need much in terms of funds to operate.

ymtan: Am almost dead certain that the term sheet with 1MYSOT will not be renewed. The middle eastern party liasing with them has been dragging their feet, and I am sure Benalec as well as the principals in 1MYSOT are extremely frustrated.

Regarding other off-takers, from what I know there are a couple of potentials that Benalec has been speaking to. I do not know their exact identities though (understandable, since all negotiations are hush-hush), so I cannot give you a 100% guarantee that what I have learned is factual.

Personal viewpoint, considering how bad the KLCi is at the moment, I am assuming that the market will react badly come the deadline, unless some other positive news crops up.

Sorry, do not really have much information at the moment. Have not spoken to anyone in management for a while as I am fairly tied up right now.

Heh.

That person is making a long, spammy posting after mine in hopes that people will avoid reading my postings.

And to avoid getting banned, he deletes said spammy post, and reposts it again whenever I write something. In his account, he will perpetually have only one long spammy post.

I am sure most of the forum regulars can guess the identity of this person.

Psst, I will give you all a hint. It is someone who is too scared to try to debate on my points rationally and who gets irked when he is unable to do so.

Just ignore him. Regulars here are smart enough to differentiate which are the real postings.

Cowardice lah, what to do.

Further update regarding the lawsuit by Sentosacove Sdn Bhd against Benalec, as well as Benalec's own countersuit against Sentosacove.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4763593

Of interest to me was this paragraph:

"In relation to the potential financial/operational impact of the cited litigation on the Group, it is difficult to estimate accurately such impact as it is dependent on the Court’s decision. It is, however, instructive to be guided by the sharing ratio between BSB and SSB of 95% to 5% of the reclaimed land after allocating one-sixth of all reclaimed land to the Melaka State Government, and the strong grounds on which the Group is basing its legal action."

I was under the impression that the sharing ratio was in the range of of 15%-20 for SSB. At 5% it showed that the Leaw family had good intentions in granting the reclamation job to Benalec without overly profiting from it via their private interests.

No wonder the two older brothers are suing. Pure sour grapes after they were caught for their breach of trust, and now they want a bigger piece of that pie since the elder of the two has already lost out on the biggest pie there is (his interest in Benalec Holdings Bhd).

The positives
1) Talking about the land title issues, one thing Benalec does have to its advantage is good ties with the Melaka state government. (they have reclaimed more than 2000 acres in Melaka after all) It is possible to expedite things if necessary. What I find somewhat disappointing is that, they did not do so at the 6 month mark.

This may be a case of too little too late to save Q4FY15 though.


2) NTA stands at 71 sen. Announced land sales stand at RM500m. That is a reality. Balance sheet actually looks pretty damned good overall.


3) The convertible bond issue has been completed. Cash flow wise, the company has some room to maneuver for its Melaka and general operations. This would be a stop gap measure though, since the bulk of the funds (as well as revenue from sales which are finally booked) would be needed for Tanjung Piai to really kickstart reclamation works.

A rough estimate is that the company will need around the region of RM200m to reclaim the first 100 acres in Tanjung Piai. And that is important since Benalec will likely go with a "reclaim first, then sell" policy on the first lot.


4) The term sheet with 1MY Strategic Oil Terminal (1MY SOT) is about to expire on 11 June. This is a good thing since from my understanding, phase 1 of Tanjung Piai (which the term sheet covers) is the most desirable. After it expires, Benalec is finally free to discuss selling phase 1 to other off-takers.

At the end of the day, 1MY SOT is a dead duck anyhow. It is too bad they could not get that term sheet with them terminated earlier.


Some of my investing peers have chosen to sell down their stakes with the view of buying back after Q4FY15 results are out since they are of the view that quarter will have poor results as well and likely leading FY15 into a loss. For the record, I am still holding my original shareholding.

In for a penny, in for a pound. Invest at your own volition.

Personal thoughts on the positives and negatives for the company now, based off the current share price. CaoCao, you might find this of interest to you.

The negatives
1) Land title application. A land sale was made to Faithview Supreme on 28 Oct 2013. The announcement made on that date stated that they expected completion in the 3rd quarter of FY2015. (end March 2015)

In the notes to the account for Q4FY2014, it stated under item 16 that Benalec was in the process of applying for the land titles. Implicitly, this meant that reclamation works had been completed.

Completion of the sale was still expected in Q3FY2015.

The latest practicable date (LPD) for this note was 18 August 2014.

In the latest quarterly notes, the same statement was made about it still being in the process of applying for the land titles. As it was not booked in that quarter, there was a shift of completion date to Q4FY2015. (end June 2015)

The LPD for this note was 18 May 2015.

This means that the land title application has been in process for at least 9 months.

My unhappiness here is on three points:
a) There is obviously something (or should I say, someone, guess who) causing delays in the title application. If said incident can happen for this application, then it can happen for others too (including Ultra Harmony's titles).

b) I am very disappointed that no one in Benalec seems to be keeping track of this. You should know how long title applications take (I have been told it is 6 months on average) and after 6 months with no news surely someone should have said something to Vincent Leaw. Am assuming with his kangtao with the land office he could have rectified it quickly.

c) The target date for completion here may not be accurate. The original SPA with Faithview is Benalec's standard sales contract. Meaning that Faithview has 3+1 months to pay up on receipt of the title. I.e. if you assume the title comes out on 1 June 2015 and is delivered to them, they might only pay on 1 Sep 2015. Meaning that the sale is only booked as revenue in Q2FY2016.

Granted, I do not know the relationship that Benalec has with the owners of Faithview. Their relationship may be strong enough that management may be able to convince them to pay early. But again, this depends on title issuance of course. If that was the intention of stating completion date to Q4FY2015, then that is fine. But if it was an oversight and they did not take that into account, then I would be angry.


2) Poorer Q4FY15 results
I believed that this financial year would be an improvement over the last financial year. But with the delay on titles this will leave investors wondering if they will be booked by Q4. If Faithview, Ultra Harmony Phase 1 and 2 are not booked in Q4, then the only revenue booked will be the Ultra Green/Oriental cash job.

Whilst I understand that the company is focused strongly on this job (for cash flow purposes, it makes sense, with monthly billings), I doubt if the billings will be sufficient to keep Q4 profitable.

The contract is RM203.89m with a duration of 30 months. Using simple calculations, billings for one quarter will be RM20.25m. Assuming a 15% margin, profit from the job will be about RM3m. Benalec currently has a "burn" rate of about RM30m a year for its expenses (not including forex losses/gains). Meaning that this will be insufficient will cover an average RM7.5m expense for one quarter. Granted, the job may be expedited further so that the profit may exceed operating expenses for the quarter.

Realistically, without any land sales being booked for the next quarter, we can expect Q4FY15 to be a loss making one. Also, FY15 may drop into a loss, depending on how it goes. Yes, the company's prospects for the next couple of years is good, but if you show a poorer result than FY14, then really, that is appalling. You should be on the road to recovery since then, not still trying to find bottom.

On the other hand, if nothing is booked for Q4FY15, this will likely mean you would probably have a fantastic Q1FY16. But again, too little too late for FY15, and you know the market will be merciless when FY15's financial results are out.


3) Research house coverage / Investor relations
I feel that the company is regressing on this point. Out of the 5 research houses that cover the firm, Kenanga has placed their coverage to under review. Affin, BIMB and AMResearch have downgraded their target pricing because of this. I have no clue about CIMB.

Instead of going into damage control mode (management knew the results would be poor after all) and having an immediate briefing with analysts after the results, nothing seems to have happened. I am not pleased at management's lack of action on this part. Yes, IR is usually considered an irritant for smaller firms, but if you ever want to hope for the share price to advance you should be banking on this too.

VinTan: Ah, okay. I get what you mean now.

With land sales, the auditors require you to book revenue only after you have been fully paid. In other words, that is where you find the bulk of deferred revenue comes from.

I believe some of Benalec's other business activities are not affected by that requirement, i.e. shipping. They have already billed for the work, booked it as revenue but are awaiting payment, hence why it is under receivables.

The amount is substantial though, being net receivables at over RM200m of the sum, so I am sure I have left something out. I was thinking that it may be receivables that have been past due for a long time which has snowballed over the years. However I took a look at Benalec's last annual audited accounts (for FY14) and only RM15m was past due at that point, so that theory is out.

Perhaps an accountant who reads this forums might like to give their opinion?

VinTan: Sorry, but am not quite sure what you mean by discrepancy.

There have been no reversals of written off items as far as I know since the company was listed. This includes bad debts, which is almost negligible (totalling less than RM500k since listing)

ykloh: It is not that easy to calculate it just based off the balance sheet. I know since I have tried to do so myself.

A simple back of the envelope calculation would say:

For cash flow, trade receivables minus trade and other payables and also minus current borrowings would show the gross cash the company expects to receive from its sales. (This is simplistic as both receivables/payables might also include entries for the company's other business sectors, i.e. shipping)

From a cash flow perspective, it makes the whole thing look pretty awe inspiring, no? i.e. RM737m-RM156m-RM23m=RM558m, all within the "current" i.e. next 12 month period. However, see below for added points.

For revenue (and P&L), deferred revenue against trade and other payables and also minus current borrowings would show the company's expected gross profit from its land sales. Again, not taking into account the figures may include other business sectors.

On the surface, that makes the company's gross profit look pretty impressive too (RM533m-RM156m-RM23m) at RM354m, as it is labelled under "current".

However, this does not take into account, taxation, Benalec's standard operating expenses (typically RM30m a year), any further forex gains/losses (this has to do mainly with the fact that their ships are registered via Labuan offshore companies IINM) and also that some of the lands being sold are pending land title applications, meaning land premiums have to be paid when the title is granted. (I presume, the premiums are paid on title grant and not on application).

I have no idea how much the land premiums cost in Melaka for reclaimed land.

All this of course affects not just the P&L but also cash flow (excluding forex losses, since they're unrealised - that affects P&L and not cash flow)

Also, another difficulty in making estimates is that Benalec is still a going concern, meaning that expenses related to the reclamation of unsold land is continuing, i.e. the clock does not stop for the purposes of making estimates.

Added in with the lumpy nature of revenue bookings, you can see why it is not easy to make an accurate estimate. Note, I am not an accountant, so you might want to seek a more professional perspective as my views may not be wholly accurate.

ykloh: You've got that correct, I believe. I prefer to compare the figures between 2QFY15 and 3QFY15.

Trade and other receivables went from RM380.6m to RM737.2m.

As any increase in Assets must have a corresponding increase in the Equites and Liabilities section, Deferred revenue (under Current liabilities) also increased from RM130.8m to RM533.6m.

There's also a slight mismatch between those figures as at the same time "Land reclamation WIP" has also increased under current assets.

Bear in mind that both these entries are designated "current". Meaning that payment is expected within a 12 month period.


Revenue for the 9 month period has been RM121m because of the lumpy accounting nature again.

Accounting wise, the auditors do not want to recognise any form of progress payment.as per the Jadex Land/ Arena Progresif land sales. I.e. even though 10% is paid on signing of SPA, 20% within 6 months of that, 30% within 9 months of that etc, the money is banked in but it is not booked as revenue.

In that situation, whenever a progress payment is made, in the balance sheet, cash increases, trade receivables decreases. Deferred revenue still stays the same.

It is only when the final payment is _made_ (not billed, but made) that 100% of the SPA is booked from deferred revenue to revenue.

Cash flow wise, those deals make some sense. Accounting wise, they do not. Unfortunately, that is something that is out of Benalec's control since it is up to the auditors based on their own auditing standards.

The only exception for the big land deals that have been announced is Ultra Harmony. As the SPA itself split it up into 4 phases, when a payment is made for a particular phase (again, payment made, not just the client being billed), then that phase is booked in full as revenue.

Thanks guys. Am trying to call things as I see it, good or bad.

Q3FY15 Results are out.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4749761

Revenue: RM12.933m
Net Loss: RM9.014m

Surprised at the results, and very disappointed overall. I was expecting this to be a profitable or breakeven quarter at the very least.

Key points (from my perspective):

1) Admin and other expenses was RM14.742m (compared to RM7.049m in the last quarter)
A little confusing to understand this, but from the notes to the account for 16.1 (3), it states that this increase was mainly due to "loss on unrealised forex recognised in current year to-date (Q3'15: RM8.2m; Q3'14: RM4.0m).

I wish they would break this category down further. It would be nice to see what are actual admin expenses and what are financial expenses.


2) The disposal to Faithview Supreme Development Sdn Bhd (RM51.47m / 29.54 acres) did not happen in this quarter as was expected. The notes to the account for last quarter stated that the disposal was expected to be completed within 1QCY15.

The notes now stat that completion is expected within 2QCY15.

Am disheartened at this delay. With this transaction, the quarter would not have shown a loss.

3) Ultra Harmony Development Sdn Bhd status (128.52 acres / RM235.13m)
None of the phases have been booked as revenue as yet as expected.

Was somewhat surprised that reclamation has not been fully completed as yet (even though they are still ahead of schedule).


LPD: Feb 4. 84 acres (65.4%)
LPD: May 18. 108.98 acres (84.8%)

In 72 days they have reclaimed from 84 acres (65.4%) to 108.98 acres (84.8%) as at 18 May 2015. That works out to about 3 days to reclaim 1 acre. This means they should have fully completed reclamation works by the time Q4FY15 results are out.

Am still expecting them to book revenues for phase 1 and 2 at the same time (roughly half the contract, RM117m) in Q4FY15. But with the disappointing surprise of Faithview Supreme not being booked in this quarter as expected, I would be wary of further surprise delays

As a reference though, in the original EGM circular (10 June 2014), the estimated time frame of completion was:

May 2015 - phase 1
Oct 2015 - phase 2
Feb 2016 - phase 3
July 2016 - phase 4

The latest notes to the account state that they expect completion in 1QCY16, meaning phase 4 by Mar 2016.


No changes to the expected completion dates for the other land sales announced. Was also mildly disappointed that the Ultra Green/Boon Siew contract (RM203m cash/415 acres) did not merit much of a mention to the notes to the account. It would have been nice to know how far along the job is progressing.

Also, no further elaboration regarding the Sentosacove Sdn Bhd suit with regards to what kind of reliefs are being sought. This probably means it is not a suit for damages but specific performance.

Also, a reminder. The term sheet with 1MY Strategic Oil Terminal Sdn Bhd expires on 11 June 2015. I fully expect that it will not be renewed any further. Whilst realistically, I feel this does not mean anything (there are other potential offtakers to speak to), you might expect a knee-jerk reaction from the market by those who have no clue.

rizerlee: None of the Ultra Harmony stages (RM235m/128.52 acres) has been booked as yet.

I believe they will either be booking both stages 1 and 2 (out of 4) for the upcoming quarterly results (Q3 - ending March) or in the next quarter (Q4 - ending June).

Not sure how good this upcoming quarter's results will be. Pretty sure it will be profitable though. Since the Ultra Green/Boon Siew (RM203m) reclamation job started in early February, they'll likely have pushed things as much as possible since it's a progress payment job and the first payment would have been pretty decent.

Not sure accounting wise if it can be booked on a month to month basis (assuming it is a monthly billing cycle), but I am assuming it is since other construction jobs follow the same accounting principles as far as I know.

Bently: What is the relevance of the Tanjung Offshore situation with regards to Benalec...?

And the same question about your two other web links. The first one is about a foreign vessel that sank in December 2010.

The second one is about a sand barge that sank yesterday.

Could you explain their relevance to Benalec?

So, the points you are making is.

Obviously if I do not highlight these issues, no one would know that Benalec has been sued by SSB. The fact that there is a bursa announcement for it as well as articles in the mainstream media notwithstanding.

Obviously, the two older brothers do not know their youngest brother is a shareholder of SSB.

Obviously, they do not monitor how Benalec is doing, what relevant announcements are being made by the company. Even though the middle brother is still a major shareholder of Benalec.

Obviously, if I had not mentioned this on this forum, they would have absolutely no clue about this and what legal steps to take. Never mind the fact that they have filed the initial suit.

Thank you for you give me an amazing amount of credit that what I relate here can be used as legal ammunition on their part.

You are of course wrong in whatever you have said, but hey, that is my personal view.

The details of the brothers shareholding for Sentosacove Sdn Bhd is a matter of public record.

And when I say public record, I do not mean going to the Companies Commission of Malaysia and paying RM10 to do a search on said company.

It is shown very clearly in Benalec's IPO documents which can be found here at:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4356713

Hence why I stated in my previous posting that this shareholding may have changed since listing.

Even a muppet can download the listing documents at the above a link and find out these details themselves.

The SSB contract was signed in September 2010.

Benalec's IPO was launched in December 2010.

The only shareholder approval needed by Benalec was by the Leaw family, since the company was still a Sdn Bhd at that time.

ykloh: I do not have any further information on the matter. I can only relay to you what I have stated before.

1) Sentosacove Sdn Bhd (SSB) as at the listing of Benalec is 70% owned by the three Leaw brothers (with each brother owning 1/3rd of that stake, i.e. 23.33% each). I have no idea who owns the other 30%. Note, this shareholding may have changed since listing

2) SSB is a concessionaire to reclaim land off Melaka. They granted Benalec a contract to do said reclamation in the latter part of 2010.

[Source: Benalec's IPO documents / Bursa announcements]

The contract was an in kind contract, with payment being given to Benalec in the form of reclaimed land. As is in most previous reclamation contracts, the lion's share goes to Benalec, with a smaller portion (typically 15-25%, depending, from what I have seen) goes to the client, in this case SSB.

3) To the best of my knowledge, said reclamation works have been completed / is near completion. Benalec has also sold some of the reclaimed lands that they received as payment for the contract.


My assumptions (note I have not spoken to management since before the suit):
1) The lawsuit was filed at the instigation of the two older Leaw brothers. As you can see from what has happened in the past, both of them are crooks who committed what amounts to breach of trust/breach of fiduciary duties including (but not limited to) unreported related party transactions of land sales to themselves.

Sour grapes dictate that they continue to cause as much trouble as they can to Benalec, even though their available options are limited.

2) Vincent Leaw likely was not aware that a suit was going to be filed. As I assume he only has one director's seat on SSB, he would have been in the minority even if he was aware. All it takes is for the two older brothers to call for an "emergency" meeting" of SSB, and table and vote on the filing of the suit.

It would of course be foolish for Vincent Leaw to be willing to sue his own controlled listed entity.

This of course does not speak much to the middle brother, who is still a substantial shareholder in Benalec. The apt phrase that comes to mind is, "Spitting into the wind" or "Setting one's self on fire".

3) From what I have heard from others who know Vincent Leaw, he does have a temper when sufficiently provoked. I suspect (or hope) this recent action by the two older brothers may inspire him to a "take no prisoners" mentality.

4) The suit makes little sense. As Benalec has almost (or already has) completed the contract, it begs the question as to what the issue is?

That's hilarious. Say so sorry to you? Beg you?

Hell will freeze over first.

And I note how you refer to me as a "good dog", and "don't la bite your owner".

You are slipping. The former shows that you are "where". Sucks that you cannot use your former name anymore since it stinks like a combination of hum yee and chow tau foo, no?

And secondly... I do not have an "owner". I am not and never have been an employee of Benalec.

Unlike you who has many "friends" in Melaka who are/were "employed" by Benalec.

Please, peddle your bullshit elsewhere.