His luck seems coming?

(The following article appeared in The Star on November 28, 2011)


LBS has land-bank with GDV of RM9bil, wants more land
by ANGIE NG
angie@thestar.com.my



PETALING JAYA: LBS Bina Group Bhd is looking at a few avenues to raise funds to finance new land acquisitions for its projects.

Managing director Lim Hock San said the options included internal funds, bank financing and private placement.

â??We are still in the assessment process and nothing has been firmed up yet. An announcement will be made if a plan has been finalised,â?? he told StarBiz.

According to Lim, LBS is currently studying a few proposals on possible land acquisitions to expand its landbank.


Ongoing project: Lim looking at a model of the Dâ??Island Residence project in Puchong which has a GDV of RM3.5bil.
LBS currently has a land-bank of about 2,300 acres worth an estimated gross development value (GDV) of RM9.1bil.

Some 46% of its land-bank, or 1,071 acres, is in Selangor, while those in Johor make up 25% of its land-bank (574 acres), Perak 18% (406 acres), and Pahang 3% (70 acres). It also has 197 acres in China.

Its ongoing projects include D'Island Residence on 175 acres in Puchong comprising 237 super-link houses, 298 semi-detached units, 148 bungalows and 352 condominiums.

The project with a GDVof RM3.5bil will also have two blocks of commercial units. Its other flagship development is Bandar Saujana Putra that spans over 835 acres in Selangor.

The township launched in February 2003 has a GDV of RM3bil.

LBS also has projects in Cameron Highlands and Bandar Putera Indah in Batu Pahat, Johor.

In Cameron Highlands, LBS is the developer with the largest market share and the company intends to add land-bank there to cement its leadership position.

According to Lim, D'Island Residence will be the biggest growth driver contributing to 41% of its project GDV for the current financial year ending Dec 31, while contribution from Bandar Saujana Putra is expected to make up 36%.

LBS is targeting sales of RM650mil this year and RM800mil in 2012.

As of Nov 20, it had recorded sales of RM604mil. It also had unbilled sales of RM639mil as of Nov 15.

Lim said for the year to-date, the company had launched 1,295 property units worth a GDV of some RM630mil.

Next year, there will be 17 project launches comprising 2,085 units with a GDV of RM1.4bil.

The sales target for FY12 is RM800mil.

OSK Research said in a recent report that LBS Bina should be able to record decent revenue growth over the next few years since it had moved into the mid to high-end market segments from the low to medium-end segments.

The growth in revenue was underpinned by strong unbilled sales and take-up rate for its recent launches.

â??To achieve its sales target, LBS plans to launch more than RM1bil worth of projects for this year, with its flagship Bandar Saujana Putra to account for about 45% of the value of the launches,â?? the report added.

The research house said the company's decision to move up the value chain in the residential market and re-position itself to focus on medium to high-end projects had enabled it to record over 70% year-on-year growth and make a return to the black with profit after tax and minority interests of RM16.5mil in FY10.

It said the unique concept incorporated in the D'Island project contributed to the strong take-up rate, and the project should provide a strong foundation for LBS to further strengthen its position in the high-end market segment.

As for the Cameron Highlands and Batu Pahat projects, although the market size in those areas was rather limited, having a presence there should be able to provide the right balance for LBS through geographical and demographic diversification.

RM1.18 to RM1.68 ! The way forward for a great start for 2012 !

Like what Sime Darby did in E &O acquisition, DRB-Hicom may buy a 30% stake only in Proton and can avoid a GO for the rest of the shares. :-)

If not for the aggressive share buyback that happened today, it would be interesting to see if its share price could have shot up so much at one stage today. Why the aggressive buyback had to take place today after announcing the so-called good first half yearly result??? :-)

The annual revenue for the company appears to have peaked in the last financial year and there may not be much upside for its share price in these next few months due to the slow launching of its few projects in its pipeline. Hence, the near term growth of the company is capped. Instead of boasting its projects in the pipeline over the last few months, the company needs to launch its projects faster to lock-in new sales in order for the company to achieve greater heights.

The growth story of any property development company lies mainly on its topline growth. Without meaningful growth in its topline ie the increased revenue from its new projects, the company may still need to depend on its share buy-back programme to support its share price. :-(

At current price of RM0.73, it will cost the major shareholder < RM200 mil to privatize the company which has > RM200 mil cash! So, good possibilities for it to be privatized!!! In other words, the shareholder can later get back from the company the monies that he has to pay first to privatize the company when he has fully owned the company then.

Ideal for privatization? Profit is rising yoy but it is still traded well below NTA with net cash position which will be good and handy for offeror later on.

Its profit has been growing consistently and impressively with strong earning visibility for the next 2 years!

Tuesday 25 Oct 2011 will be ex-day for its bonus shares @ 1 for 3. Hence, the counter may go up on tomorrow Monday 24 Oct 2011. :-)

from RM2.3 to RM2.5 to RM1.45 to RM1.24, what next OSK Research?

Hua Yang is a much better and safer buy than many other IT related companies whose assets are mostly depreciating in value over time....and their profits are often re-investing in such depreciating assets...and their future earning visibility is normally low or volatile....

At 27 sen, Glomac-wa is still undervalued. The intrinsic value is now 30 sen. If the mother share can move up to RM 1.00, the warrant shall then be worth 45 sen. Good buy!

5 years down the road? Too long a horizon for most investors.

Didn't they act together to reject ECM's request to appoint new directors? Will they also reject nominees from Sime in the future?

EPS: 6 sen for Q1, net cash per share:RM1.20

The management does not seem to be doing anything in its public relation or communication, simply not comparable to those in Mah Sing, Glomac and Hua Yang who have all done a good job in keeping the investors well informed of the progress and sales achievement of their companies, and hence providing clear earning visibility for the respective companies.

Minus RM6.7 mil for the car park bays assuming RM10k per bay, the purchase price for the building looks really cheap. It is a steal in terms of RM price per sf...

Doesn't UDA have to pay 10% penalty (RM 21.5 mil) to terminate the SPA? It will be an extraordinary gain for Nadayu.?

Latest quarterly EPS doubled to 10 sen.

Banks' earnings will be eroded accordingly...?

TAEL One Ltd, an investment fund, emerged as a new 5% shareholder in Dijaya Corp. Rationale?

Maybe this:-
http://www.dijaya.com.my/invest/analystrpts/DijayaCorp110610.pdf


It is a company with 300 acres of prime land bank which has a total GDV of RM 10 BILLION. :-)

Maybe should take a re-look at Perisai as Prudential plc has just emerged as a shareholder with 5% stake as per Bursa website. It will provide additional impetus to the share price, won't it?

Dijacor-wa could go higher within a couple of months......

http://www.dijaya.com.my/invest/analystrpts/DijayaCorp110610.pdf

http://www.dijaya.com.my/invest/analystrpts/DijayaCorp110610.pdf

http://www.dijaya.com.my/invest/analystrpts/DijayaCorp110610.pdf

http://www.dijaya.com.my/invest/analystrpts/DijayaCorp110610.pdf

Theoretically the RCSLS should trade above RM1.00 because they are REDEEMABLE and secured as well as they carry a coupon rate of 6%. RCSLS are not the same as ICULs. Big difference between the two.

why invest hard earned monies in big plc whose balance sheets are too big to be analysed correctly or even many research houses and audit firms may not or do not bother or do not know how to ascertain the quality of their huge receivables and other assets in the balance sheet like Muhibbah?

Wouldn't their bankers now start thinking whether the 'umbrellas' can still be extended? Besides profit, how about the cash flow for next 12 months? Hence, more uncertainties can be delevoped from on onwards.

It will be safer to invest in companies like Mitrajaya or Ken Holding which have lesser receivables or collection risk although they are smaller outfits. Their balance sheets are much smaller but the quality of their assets can be analysed or ascertained more correctly ourselves.

'Small can be beautiful and safe' :-)

why invest hard earned monies in big plc whose balance sheets are too big to be analysed correctly or even many research houses and audit firms may not or do not bother or do not know how to ascertain the quality of their huge receivables and other assets in the balance sheet like Muhibbah?

Wouldn't their bankers now start thinking whether the 'umbrellas' can still be extended? Besides profit, how about the cash flow for next 12 months? Hence, more uncertainties can be delevoped from now onwards.

It will be safer to invest in companies like Mitrajaya or Ken Holding which have lesser receivables or collection risk although they are smaller outfits. Their balance sheets are much smaller but the quality of their assets can be analysed or ascertained more correctly ourselves.

'Small can be beautiful and safe' :-)

why invest hard earned monies in big plc whose balance sheets are too big to be analysed correctly or even many research houses and audit firms may not or do not bother or do not know how to ascertain the quality of their huge receivables and other assets in the balance sheet like Muhibbah?
It will be safer to invest in companies like Mitrajaya or Ken Holding which have lesser receivables or collection risk although they are smaller outfits. Their balance sheets are much smaller but the quality of their assets can be analysed or ascertained more correctly ourselves.

'Small can be beautiful and safe' :-)

why invest hard earned monies in big plc whose balance sheets are too big to be analysed correctly or even many research houses and audit firms may not or do not bother or do not know how to ascertain the quality of their huge receivables and other assets in the balance sheet like Muhibbah?
It will be safer to invest in companies like Mitrajaya or Ken Holding which have lesser receivables or collection risk although they are smaller outfits. Their balance sheets are much smaller but the quality of their assets can be analysed or ascertained more correctly ourselves.

'Small can be beautiful and safe' :-)

on what basis? Double the share price in an interest rate trending up environment for a company whose profitability is dependent on low or fixed interest rates? OMG! RHB.

It is not moving despite good prospect. Still way below the recommended target price. and the PE still being pretty low. Lack of exposure for this report in the newspapers? Otherwise, why people still sell at the current level? zzzzz....

Isn't this offer price way below its NTA? Less than half of its NTA? It may be better to go for voluntary liquidation of the company and distribute the sales proceeds of all its assets.??

Just wonder if any reputable financial advisor would indeed tell the minority shareholders that the above offer is deemed good and to accept it?

How much profit can be generated by the company's existing projects, besides the company's land bank, as compared to the offer of RM122 mil to take company private?

Just wonder if any reputable financial advisor would indeed tell the minority shareholders that the above offer is deemed good and to accept it?

Just wonder how much profit can be generated by the company's existing projects, besides the company's land bank, as compared to the offer of RM122 mil to take company private?

Isn't this offer price way below its NTA? Less than half of its NTA? It may be better to go for voluntary liquidation of the company and distribute the sales proceeds of all its assets.??

Does this mean that the company may make RM 700 million profit over the next 5 years @ 20% profit margin? Can some research houses please provide more in-depth analysis on this company and publish the same for sharing? Thanks

Does this mean that the company may make RM 700 million profit over the next 5 years @ 20% profit margin? Can some research houses please provide more in-depth analysis on this company and publish the same for sharing? Thanks

Will this project generate a profit of RM40 mil based on a profit margin of 25%?

unless this research report is published in a prominent daily like The Star or The Edge Weekly magazine, otherwise it is hard to reach such target price.

how about Hua Yang and Glomac?