Posted by wangge > 2017-04-07 18:14 | Report Abuse

Hi all, those Ekovest's Leavers, exLovers n Lovers, pls read Wangge message with your heart.

GKent's RM6.2B, RM4.5B is from PDP JV with MRCB for LRT 3 which earn 6% management fee. 6% of RM4.5B is RM270M, 4 years annualized is RM67.5M

Will be good fine tuning the forwarding PE again.

Note: 大家看得懂就懂吧！不懂只好自球多福吧！

Posted by SALAM > 2017-04-07 18:45 | Report Abuse

wangge, don't simply mislead this forumers la. 6% PDP fees is management fees, meaning payment atas angin

Posted by VenFx > 2017-04-07 19:23 | Report Abuse

From Ww table; I find GK has the Top Order book coverage over existing construction value By a ballooning of 13 times, compared to above construction entity .

Posted by stockmanmy > 2017-04-07 19:27 | Report Abuse

can wealth wizard look into Pesona and help me make some money.?

not bad one actually.

Pesona is not even in his table of 7 construction stocks.

a totally neglected stock. If and when it comes, it will come as a bang.

Posted by stockmanmy > 2017-04-07 19:37 | Report Abuse

https://klse.i3investor.com/blogs/stockman/119725.jsp

Posted by VenFx > 2017-04-07 19:51 | Report Abuse

谢谢 !
Wealthwizard 的 公课 。

深入潜水 简单易懂

Posted by musangfoxking > 2017-04-07 20:30 | Report Abuse

i am going to steal to buy leh!!!!!!

Posted by yewniengwei2693 > 2017-04-07 20:32 | Report Abuse

After changing hand of our lovely PM, this stock will drop & just sell water meter...

Posted by Jarex > 2017-04-07 21:02 | Report Abuse

why bonescythe post cannot be seen

Posted by Jarex > 2017-04-07 21:03 | Report Abuse

why bonesythe post cannot be seen

Posted by anonboy > 2017-04-07 22:05 | Report Abuse

Today Malaysia's one of best small caps like JHM, Pentamaster, Ekovest, George Kent, Air Asia, Denko and Old town closed in the red,so don't worry...

Posted by anonboy > 2017-04-07 22:10 | Report Abuse

7 April

OTHERS MUHIBBAH ENGINEERING (M) BHD ("MEB" or "the Company") (i) Proposed Renewal of Authority for Share Buy-Back (ii) Proposed Renewal of the Existing Shareholders' Mandate and Proposed New Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature

Posted by Chan Hon Mun > 2017-04-07 22:24 | Report Abuse

WealthWizard, thanks for your detail homework. I have a question hope you can help.

You estimated "next 1year construction sales = construction jobs in hand divided by 4". There is not much info on when the sales will be realized, is that a rule of thumb for your estimation?

I think this estimation is the most important part as it affect the estimation sales the most. Thanks.

Posted by paperplane2016 > 2017-04-07 22:28 | Report Abuse

When mkt goes gaga over certain stocks, I know probably this general mkt is overheated. Time to trim down some of my risky stocks now. Thanks Gkent on theindicator

Posted by VenFx > 2017-04-08 02:06 | Report Abuse

Plane sifu, the Projected Forwarded P.e. is only 5.8% .... don't u think that GK will advanced to rank top 3or 4 at least from currently # 6 to sit after ; Ijm> Gamuda> Gkent or Ekovest ? (Higher rank will have rating advantage, isn't it ?)

Since u are in the Banking sector, don't u agree Gkent should opt for a re rating this mid 2017 ?
Furthermore, it's peer has an forwaded average of 15 - 27 p.e.

MY CONCLUSION IS 100% POTTENTIAL IS FAR TOO CHEAP ... 150% may fit my argument for a ranking # 3 or 4 by mkt. Cap backed by highly visible earning.

SO GO BUY MORE , that why moneySIFU fully bet on GK.

$10.00 - 12.00 can satisfy my argument .

Posted by VenFx > 2017-04-08 02:15 | Report Abuse

Cheers , this might be another Counter u may fall in love and all in after Kesmi xp

Posted by sosfinance > 2017-04-08 08:15 | Report Abuse

@wealthwizard, great tabulation. Just a clarification, out of the RM6.7b, how much is for PDP?

Posted by samsambank > 2017-04-08 09:57 | Report Abuse

Yesterday was a correction day for very good stocks which have been outperforming the market.

Posted by musangfoxking > 2017-04-08 13:41 | Report Abuse

$10.00 - 12.00 can satisfy my argument???? reli??

wow!!!! very tempting, hope not a call to holland!!!

Posted by prudencee > 2017-04-08 17:01 | Report Abuse

Dividing the RM6.2bn orderbook by 4 to reflect in FY18 revenue may be flawed. Why are u so sure that exactly 1.55bn revenue will be earned in FY18 instead of FY19,20 or 21? This will affect your valuation as you are using PE15x for FY18

Posted by by88 > 2017-04-08 17:53 | Report Abuse

One of their (PDP) KPIs (key performance indicators) is managing the VOs (variation orders); if they cannot manage it, then we'll deduct a certain percentage of their fee," he said.

The PDP will receive a fee of 6% of the total aggregate work package contract value. Should the eventual total cost of the project be less than or equal to the target cost, the PDP will be entitled to the full fee.
---------------------------------------------------------------------------------

is that correct to use gross margin of 20% for coming year estimation? The JV only receive 6% management/consultation fee for the 9bil LRT3 contract. Correct me if i'm wrong.

Posted by WealthWizard > 2017-04-08 21:37 | Report Abuse

Thanks for all comments & highlight on the order books, I am away from home now & can only work on it & update the work sheets on Monday.

Temporary change the title until further confirmation.

Truly appreciate & thank you very much. Have a good weekend.

Posted by ehh2001 > 2017-04-08 22:20 | Report Abuse

https://en.wikipedia.org/wiki/Project_delivery_method

Posted by MsfollowmeTeam > 2017-04-09 00:08 | Report Abuse

WealthWizard, We agree with your worksheet. Will buy more for short term investment. 6 months. Thanks.

Posted by TanTeeHean > 2017-04-09 10:39 | Report Abuse

Furthermore, Gkent have Below advantage compare to the peer.
1) Net cash, RM372 millions, which mean RM1.00 per share.
2) High ROE, 26% ( very difficult for construction business )
3) East Coast Rail Link, Southern Double Track and High Speed Rail contract on the corner.
4) Increase of water metering productivity, Gkent is one of the biggest water meter manufacturer in the world and own largest hot brass forging facility in South East Asia
5) Mr. CEO did mention by introduction the new water meter ( Polymer Meter & Smart meter ) , the revenue of water meter department expected to boost boost by 5 times by 3 years time.

This mean Gkent own dual fast growing engine.

Posted by VenFx > 2017-04-09 10:50 | Report Abuse

$8/ by 2017 ,
$12/ by 2018.

Funds will buy a mildly portion of Gkent now, and buy up in big way once Shade Split Plan 3:2 completed.

Posted by LA777 > 2017-04-09 10:52 | Report Abuse

VenFx sifu, so confident on the TP? Then, I should look into it next week, maybe buy some first.
Thanks for sharing!

Posted by LA777 > 2017-04-09 10:53 | Report Abuse

Their share split plan will occur soon?

Posted by VenFx > 2017-04-09 10:57 | Report Abuse

La777, gkent may be a volatile stage now... range trading expected to be $4.00 to 4.50;
Trending up very promising after consolidation breaking through thjs stage.

3rd qtr shall complete for the Share Split plan.

Posted by LA777 > 2017-04-09 10:59 | Report Abuse

VenFx sifu, thanks for the info. I will buy on weakness next week. Cheers!
Hope we all win big again! Btw, are you still holding eg-wc?

Posted by musangfoxking > 2017-04-09 11:34 | Report Abuse

LA777, i have followed sifu's call at Vis n Comcorp.., yes made free Starbucks there!!! will follow u Mon!!!!

Posted by LA777 > 2017-04-09 13:15 | Report Abuse

musangfoxking, thanks for sharing!

Posted by Tom > 2017-04-09 21:31 | Report Abuse

can go north further, but current price is not cheap anymore

Posted by moneySIFU > 2017-04-10 13:57 | Report Abuse

Thank you, WealthWizard, looking forward for the updated working.

Posted by fc1233 > 2017-04-10 14:32 | Report Abuse

Can anyone help to clarify, the RM4.5b for LRT 3 will not contribute to revenue, but instead only show as share of results from JV?

Posted by wangge > 2017-04-10 18:17 | Report Abuse

司馬昭之心，唯有高人才懂，看得懂就懂，看不懂就罷了！

Posted by Leonardo12 > 2017-04-11 22:36 | Report Abuse

only 6 percent as the project delivery partner, anyone can clarify?

Posted by 惠方楊 > 2017-04-11 23:06 | Report Abuse

http://www.thestar.com.my/Business/Business-News/2015/09/08/Earnings-boost-for-MRCB-George-Kent/?style=biz It is only 3% as referred to the new above for the management fee.

Posted by VenFx > 2017-04-11 23:09 | Report Abuse

6% is merely the management fee ... Kpi is the benchmark.
Gkent hit it , it get the reward for its performance .

I'm sure Gkent can reap good from some special works from LRT3 package,,, that will be categorised as Variance Orders.

Gkent has taking care for all the angles ...

Posted by VenFx > 2017-04-11 23:34 | Report Abuse

(3 or 6) % both entitled the same management fee lar ... Total of $270mil for each partner for the 3-4 yrs job.

Posted by 惠方楊 > 2017-04-11 23:41 | Report Abuse

the PDP role would easily add RM54mil per annum to the group’s bottom line, assuming a clean 6% PDP fee from Prasarana , please mark the word 'easily' it mean additional 3% gain for this contract please correct me if I am wrong.
Read more at http://www.thestar.com.my/business/business-news/2015/09/08/earnings-boost-for-mrcb-george-kent/#H4Ew3prSdlOuzOyk.99

Posted by VenFx > 2017-04-11 23:54 | Report Abuse

6% / 2 partners , each partnert entitled 270mil management fee .

Posted by cstanmyinvest > 2017-04-12 07:48 | Report Abuse

The PDP will contribute about RM45 mil per year to GKent's PAT for the next 4.5 years. This is a very significant increase of 45% based on its 2017 PAT of 101 mil.

Posted by Leonardo12 > 2017-04-12 08:48 | Report Abuse

So gkent only earn 6 percent from the total contract value. I guess.

Posted by 惠方楊 > 2017-04-12 09:33 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4859705 profit sharing will be 50:50.

Posted by 惠方楊 > 2017-04-12 09:36 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4900709

Posted by Peaceful > 2017-04-12 12:05 | Report Abuse

still waiting wealthwizard sifu to update the wroksheet.

Posted by Chelsea > 2017-04-16 10:02 | Report Abuse

Peaceful,

Waiting for it rebound strongly on monday after formation hammer.
The TP still RM4.73 based on PE 12 and RM 6 based on PE 15

Posted by Pribumi > 2017-04-16 10:04 | Report Abuse

Mahathir predicts former ally Najib's downfall in Malaysia vote. G Kent close shop?
http://www.theedgemarkets.com/article/mahathir-predicts-former-ally-najibs-downfall-malaysia-vote

Posted by GoodInvestor > 2017-04-16 22:46 | Report Abuse

Base on my own calculation take into consideration of 6% management fee, GKent potential upside just around 30%. Correct me if I am wrong.