Now I m afraid they might do cash call Right Issue to fund big project like the coming Sg Long Dev...I will suscribe to their right issue if they exercise it as I trust in their strong management team...
Yes, management said Symlife will see net profit of around RM300m from Star Residences, because good net profit margins of at least 20% due to low land cost.
Are you sure guys? Tat is going to be 97 Sen EPS in total...for a small cap stock like Symlife, it is a gigantic profit but YET it's qtr to qtr fin result never reflect tat...I m skeptical now...
Yup, more like RM1.06 (EPS is calculated based on shares outstanding which is 282 mil)
Profit didn't reflect strongly in previous quarters because of they were busy constructing the foundation, followed by car park floors (6 levels of car park floors below ground floor and another 5 levels above ground).
Apartments units are built from level 7 onwards. From here is where profit recognition flows in stronger.
@ equitydiary ....please help to audit my reasoning on why SymLife shares should be valued at RM1.20 to RM1.60.
Assuming that SymLife only have got 1 project which is Star (we exclude TwY and Union Suites)
Profit from Star Resi attributable to SymLife RM300M Here, I do not water down the RM300M given that revenue recognition from Star is immaterial for FY2017.
divided by 3 years - from 2018 to 2020 (3 years inclusive) - given that Star will be completed by the end of 2020 Profit a year of about RM100M Divided by Shares Outstanding 282M EPS = circa RM0.35
Assuming if PE= 4 Hence, share price should be about RM1.40
Hence, it is reasonable to expect about RM1.20 to RM1.60
just called the sales gallery for Union Suites - the sales take up rate is about 70% out of which they managed to convert 80% to confirmed sales - confirmed signed snp without cancellation.
Hence, actual confirmed sales = 70% x 80% = 56% - not bad. Hence, Union Suites is already half sold.
@kancs, your reasoning is sound to me my friend. 4x PE is a conservative and safe assumption.
I'm expecting a higher PE valuation of at least 6x because the market will start to rerate the stock once a company continues to post a positive earnings trend. Following will pick up in time as more people start looking into Symlife. Now still pretty much under the radar, that's why share price hasn't reflected the prospects as most don't know of the ongoing/potential developments.
On Union Suites, that's great news. Thanks for the update!
Agreed. I believe property market will improve from here on. The downcycle has played out its part, just waiting for sector upcycle to start. Hopefully will coincide with Symlife earnings upcycle too then will have a major rerating
@ Azman, Symlife has got Langkawi Shopping Mall (the only major mall in Langkawi). Thereafter, it has got The Wharf Mall (which is currently under approval stage) and Symphony Square.
Hence, SymLife has got about 3 investment properties. So, having a mini REIT is not a far fetched idea...
of course, look at these prime locations. ascott beside klcc and symphony square in bustling pj area. don't play play. ksl more than double its share price when it completed its investment properties ksl mall and the resorts many years ago
Symlife is looking to sell its Langkawi Shopping Mall, as highlighted during AGM.
Some unlocking of value if it manages to do so. Net book value RM31.2mil. Fair value RM51.2mil as at 31 Mar 2017 (note 18 on pg 120 of annual report 2017).
I rather they don't sell this shopping mall...just refurbished it and then keep for rental income ...or probably create a REIT and sell it to their REIT and cash out....whilst maintaining control.l via the REIT
Symlife force to buyback again it cheras land due to inability to seal the disposal, need to make reversal gain -RM 8.1m incur in previous quarter Q1 result and make compensation to RM 300,000 + absorb legal cost RM30,000.
The cheras land although have high potential in future but it now tight with very long lease which need more than 10year before it can recoup back the land.
Hope symlife can deliver higher profit to offset these reversal gain in coming quarter
@ equity diary - thanks for sharing the article. Good news is that the percentage of completion = 35%. We will soon see superb earnings growth in the coming quarters. My reading is that mid 2018 will see SymLife experiencing explosive growth. Perhaps Tan Sri will market his company to the big boys at the end of 2018/ 2019?
thanks for the update peeps. that's really fast. three months ago tower 1 & 2 at level 16/17 now tower 1 at level 28, tower 2 at level 24, tower 3 at level 17 looking forward to the spectacular results for the coming quarters!!
@ Azman123, per my friend's input (a qualified civil engineer), normally after the foundations work/ basement work - the construction of high rise will move into high gear - it is stacking up one floor on top of another floor and this occurs at a very high speed. With faster construction, progressive billings kicked in and then we can see explosive results in the coming quarters.
@kancs3118, meaning RT1 and 2 already contribute a lot, but RT 3 has to wait until basement and car parks completed only will contribute significantly?
Symlife currently have about RM 1.0 billion unbilled sale including star residence. Majority of these unbilled sale now have reached progressing billing 20-30% level, therefore, profit recognition onward will be speed up.
Take note that star residence only reach 12% progress billing up to last q ending 30 June. But progressing billing have speed up massively to up to 30% progressing billing now.
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Posted by nemesis > 2017-09-28 18:18 | Report Abuse
Now I m afraid they might do cash call Right Issue to fund big project like the coming Sg Long Dev...I will suscribe to their right issue if they exercise it as I trust in their strong management team...