Posted by speakup > 2016-10-23 16:41 | Report Abuse

close eye just buy.
if make money, thank Fong Siling.
if lose money, just blame Fong Siling.

Posted by The One • > 2016-10-23 17:40 | Report Abuse

Hahaha.. nice one :D Neeway.. Gadang is a gem laa !!

Posted by optimus9199 > 2016-10-23 17:47 | Report Abuse

not if go down badly, blame KYY?

Posted by Ricky Kiat > 2016-10-23 18:23 | Report Abuse

thanks for sharing (^o^)

Posted by sosfinance > 2016-10-23 23:29 | Report Abuse

Gadang net profit FYE16 exceeded analysts' consensus by 14%. They are expected to achieve RM82m, but instead, attained RM94m. It would be wise to keep some for buffer, likely they have done so. So, it is likelihood FYE17 will do better than FYE16 (imho).

Posted by sosfinance > 2016-10-25 09:40 | Report Abuse

After yesterday run up on the construction sector, Ekovest, Econpile and GKent TTM PE is 12-15X, except for Gadang, which is still at PE 8.1X. Just for reference.

Posted by sosfinance > 2016-10-25 15:28 | Report Abuse

Information for personal use only:

[FYE (PE)] [TTM (PE)-24/10/16] [Inc (%, since 26/8/16)]

Gadang 5.1x 8.1x 22%
Gkent 9.5x 15.6x 29%
Ekovest 8.2x 11.9x 27%
Econpile 10.7x 15.1x 23%

For reference only. Capital 21 - valued by analyst at only RM68m. In reality, it is close to RM148m. At the moment, not many care about the "value"-

Just like when furniture exports run in for about 30 months (1Q2013 to 3Q2015) while construction move upward for less than 15 months.

Posted by sosfinance > 2016-10-25 23:49 | Report Abuse

Property GDV of RM5.4m issue

1. Some are JV with land owners, some are share of profits of GDV by providing land, some are conventional development of own land. JV (Cyber + Kwasa) and Share of Profits (Capital 21) lowered the risk profile of a conventional developer, who have to bear the holding cost of land.

2. Calculation of a RNAV and discount on RNAV and discounting rate is very very subjective in the market. Hence, sometimes it can be overly conservative (like the report on 18 Oct 2016). Hence, great upside is there (esp Capital 21).

Construction

1. GKent got their VO approved from RM1.1b to RM1.4b for its first rail transit viaduct work.

2. Some of the other contractors also may get their VO approved. Upside is there.

3. Gadang successfully revived the hospital project in Shah Alam and in negotiations to get more.

Gadang will be busy easily for next 2-3 years, not only for construction, but also its property development. Similarly in earlier years, their orderbook is on a growing trend, although management is caution of type of contract to be taken.

Posted by sosfinance > 2016-10-30 07:58 | Report Abuse

@pissanggoreng,

1)thanks for the clarification (I only extracted the substance of the issue to highlight an investor who has genuinely done his homework instead of making irresponsible comments)

2)I am not saying the price IS going to move up or down in short term, but I do know, under the JV, how the share of profit work

3)We can take a horse to the water, but we cannot force the horse to drink.

4) this is not a buy, sell or hold call. This is an important fact investors should know before investing.



EXTRACTS FROM PISSANGGORENG

1. He did not read the agreement of the JV of Gadang and Hatten for the development of Capital city.
you may view the agreement through the following link:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4381697

if MR ABC had read the agreement carefully with an unbiased heart (hati terbuka), then he would have convinced that whether capital city a "white elephant" or "not a white elephant" , Gadang is guaranteed of the profit sharing of some RM334,000,000.00 or a steady income of about RM55M - 60M per year, every year for a period of 5 five and half year starting from 2015 untill 2021

Gadang did not have to pay a single sen for the development , just a piece of land bought a price of RM 30,500,000.00. all the development cost is borne by Hatten

2. MR ABC did not check the financial status of Hatten international pte limited company. if he had done that,then he would have convinced this capital city project for Hatten is just a "sap-sap-sui" case.