Posted by kancs3118 > 2018-04-08 09:27 | Report Abuse

To quote Equity Diary:

Star Residences contribution:
4QFY17: RM5.546 mil
1QFY18: RM7.052 mil
2QFY18: RM9.045 mil
3QFY18: RM17.257 mil

To date - it is roughly 10% of SymLife's share of RM300M.
We got 90% more to go. Just combine this with the fact that
Tower 1 & 2 is fully sold,
Tower 3 is a done deal (hopefully fully sold by end of next year 2019),
Star Retails is 75% sold..

Why the above is so important?
This 90% profits will come fully online with no hindrance.... meaning we will not have unrealised profits locked in the form of housing stock.

Typically, property companies will capitalise their Property Development Costs as a balance sheet asset. Then, when the progress billings kick in stages, a portion that have been sold will be charged to P&L and matched against sales to generate that profit. Another unsold portion will get carried over (until the end of the project life) to become inventories/ housing stock.

Housing stock sitting in the balance sheet considered bad for business because
(1): profit cannot be recognised...EPS cannot grow...share price cannot increase
(2): funds locked in stock...money cannot flow...to earn more money...

MahSing - very aggresive in their multiple products launch...now, they have problems clearing their housing stocks....

Datuk Azman is prudent....he wants to launch and achieve 90% sales for each and every of his projects.....

Posted by Lim Tek Wai > 2018-04-09 15:21 | Report Abuse

any good news?

Posted by investor8888 > 2018-04-09 20:38 | Report Abuse

right issue.

Posted by azlan88 > 2018-04-09 21:37 | Report Abuse

With strong earnings ahead TSMAY may want to strengthen his grip on Symlife, provided other shareholders did not take up their entitlement. However, the RI is offered at huge discount and may cause oversubscription. This is better than private placement, where minority shareholders have a chance to offset the dilution of EPS. For warrant holders, they are unlikely to convert for ordinary shares.

I would certainly subscribe for the RI and excited to see the next move by Tabung Haji, which lately opened their mouth and swallowed the 80 cent shares (sigh). Their persistent buying helps to support the share price.

In my opinion, the RI is just part of bigger picture, probably a pending corporate exercise. Symlife is small that it may be a takeover target by interested parties like LTH. Who knows if LTH may inject their unlisted subsidiary, TH Properties in exchange for shares. Cheers.

Posted by kancs3118 > 2018-04-10 00:39 | Report Abuse

don't know whether it is good news or bad news....apparently, this rights issue is to help pay down the bank borrowings while the SymLife is getting additional fundings from the bank for their other projects...

Posted by melanie181818 > 2018-04-10 06:20 | Report Abuse

The ultimate goal of this exercise is to increase the share base for institutional participation, although it also raises some cash to improve the gearing. At only 0.35 per rights and the major shareholder committed to 40% of the rights, you can see that it is confident of the strong earnings in the coming QRs to pare down the debts

Posted by kancs3118 > 2018-04-10 06:48 | Report Abuse

if their goal is to increase institutional participation, they can do private placement instead....of course, there is a dilution of control % for both TSMAY and GCSB....having said that...what is the impact to us, retail investors? what happens if you don't wanna subscribe to the rights? sell off the OR?

Posted by TheLegend27 > 2018-04-10 09:26 | Report Abuse

the right issue entitlement is how many and how much to subscribe?

Posted by TheLegend27 > 2018-04-10 09:28 | Report Abuse

seems like public don't like this proposal?

Posted by melanie181818 > 2018-04-10 11:41 | Report Abuse

If upon ex symlife trades at 0.80, then each OR worth 0.23, which you can sell off. But until then there should be two QRs - May and Aug and the dividend. Both QRs should be very good. Buy or sell you decide

Posted by kancs3118 > 2018-04-10 11:59 | Report Abuse

Hi Melanie, just asking, how do you compute the OR at 0.23?

Posted by kancs3118 > 2018-04-10 12:08 | Report Abuse

My greatest fear is that the share price will continue to drop.....despite coming quarters will show good results. Currently, market sentiment for property stocks is not good.....coupled with rights...it deters people from buying because I buy at market price...I need to add RM0.35 for rights....scared the share price will fall...

Posted by nemesis > 2018-04-11 01:39 | Report Abuse

I believe tis Right Issue is a good deal to acquire more Symlife Shares at huge a discount...it will rebound strongly after initial fall...LTH will provide full support and will acquire more shares soon to benefit fm the Right Issues...it is a very good deal since it is a well managed company and its secured 1 billion unbilled sales will make tis Right Issues worth to subscribe...we should buy more tomorrow...will go up above 0.80 soon...

Posted by melanie181818 > 2018-04-11 06:51 | Report Abuse

theoretical ex price 0.58 - rights subscription 0.35 = 0.23
TH most likely knew and supported this exercise beforehand. Azman cannot vote as an interested party, so other major shareholders will decide whether this proposal will go ahead. TH will be a deciding factor because it owns more than 6.3%, and most of the stakes were acquired at 0.80 in the past one month. If you find TH is still buying on 10th April, it suggests positive development in the near future

Posted by melanie181818 > 2018-04-11 07:10 | Report Abuse

1B unbilled sales will translate to net profit between 150 - 300M (current profit margin is 30%), which will be realized in the next two years. Conservatively, each year will realize 150/2 = 75M

Before rights
EPS = 75M/ 310M shares = 0.24
Assume PE8 1.92, PE6 1.44

After rights, most likely share base will double to 620M
EPS = 75M/ 620M shares = 0.12
Assume PE8 0.96, PE6 0.72
Compared to theoretical ex price 0.55 (based on 0.735), it's still cheap, more than 30% upside at PE6

If using 300M net profit, the figures above will double. So, it seems that potential profits from the unbilled sales can easily support the enlarged share base.

What's more interesting is the prospects after the completion of Star residences. If TH participates in the development of sg long's land, it will be a major up-rating for symlife

Posted by nemesis > 2018-04-11 08:02 | Report Abuse

Agree, well said melanie...LTH already knew tat Symlife will exercise Right Issue...If it is negative deal, LTH won't increased their stake in Symlife...The enlarged Share base arising fm tis right issue should attract more participation from institutional fund in the future...If it is a loss making company, then RI is negative for Shareholders....BUT Symlife has 1 billion unbilled sales waiting to be translated into major profit for the next three yrs to come...I would encourage Shareholders to subscribe to tis RI for future robust growth of Symlife...it might fall a bit initially but it should rebound strongly after the weak holders are taken out...Symlife is rare among many of the Big Boys property counters, as it is small YET managed to achieve almost 1 billion unbilled sales with very little unsold inventories...Only Symlife managed to do that, none others developer did that...

Posted by nemesis > 2018-04-11 16:18 | Report Abuse

Rising back gradually...Right Issue price at 0.35 is such a huge discount tat is worth to subscribe LTH will definitely buying more soon...It is a deal between LTH and Symlife...

Posted by nemesis > 2018-04-11 16:47 | Report Abuse

Beautiful rebound at 0.77...LTH is supporting Symlife!!!!

Posted by Yael Jasper > 2018-04-11 16:48 | Report Abuse

GOOD NEWS SOON

Posted by Yael Jasper > 2018-04-11 16:50 | Report Abuse

GOOD NEWS SOON

Posted by nemesis > 2018-04-11 17:00 | Report Abuse

Should Rise above 0.80 soon pending the Right Issue announcement...coming Dividend and Sterling financial Quarterly result will lift Symlife higher...

Posted by nemesis > 2018-04-12 23:36 | Report Abuse

LTH still acquired Symlife after the Right Issue announcement...Good sign

Posted by kancs3118 > 2018-04-13 10:23 | Report Abuse

Why is it a good sign ?

Posted by nemesis > 2018-04-13 10:34 | Report Abuse

It means tat sooner before ex Right Issue LTH will sure lift up the price to 0.80 or above...Not so soon but will definitely go up...Just ask urself whether u wanna take part of their 1 billion unbilled sales and coming dividends and the 8 bil Sg Long development...If the answer is yes then u need to fork out extra money for the RI to help them grow...The growth is already secured! Need some fund to strengthen the balance sheet...

Posted by nemesis > 2018-04-13 10:54 | Report Abuse

Let see if LTH still buying for tis coming days...if yes then LTH is picking Symlife as a target for future growth...Any stocks with a big fund coming is a catalyst stock...Symlife is small easy for LTH to swallow even with the coming RI

Posted by kancs3118 > 2018-04-13 14:48 | Report Abuse

@ nemesis...you seem to very confident that the share price will rise in the bear future. Mind to share your logic.? I am pretty sure that LTH will not be the one who will lift the market price....they will be more inclined to buy at the lowest price...

Posted by nemesis > 2018-04-13 18:51 | Report Abuse

LTH continued buying on 11th...hopefully they will buy up to at least 10%...Coming quarterly fin result is gonna be great tat y they buy ahead of time and to subscribe to their right issue...

Posted by kancs3118 > 2018-04-15 22:12 | Report Abuse

LTH is buying almost everyday...

Posted by Lim Tek Wai > 2018-04-16 11:36 | Report Abuse

nono sure down, i can see the future

Posted by kancs3118 > 2018-04-16 12:46 | Report Abuse

Any basis ?

Posted by abcde12345 > 2018-04-16 13:11 | Report Abuse

good sign

Posted by Jessie Ng > 2018-04-16 13:44 | Report Abuse

一流

Posted by Yael Jasper > 2018-04-16 14:24 | Report Abuse

Huat Huat Soon

Posted by Yael Jasper > 2018-04-16 14:24 | Report Abuse

cmon guys support this gao gao

Posted by kancs3118 > 2018-04-16 15:29 | Report Abuse

Walau...suddenly...so many newbies here....

Posted by nemesis > 2018-04-16 18:27 | Report Abuse

Big thing is coming for Symlife tat why LTH acquired...

Posted by melanie181818 > 2018-04-16 18:32 | Report Abuse

Even with rights issue, there have other parties acquiring along with LTH. You can see that LTH buys around 50-70% of daily volume. Some other ppl with deep pockets also willing to buy at current price and plus 0.35 to get a new share

Posted by melanie181818 > 2018-04-16 18:34 | Report Abuse

Looks like there are many other ppl who think like me - that the RI is a good deal

Posted by melanie181818 > 2018-04-16 18:38 | Report Abuse

Btw, LTH don't have to push up the price like someone said earlier. Simply do a joint venture, LTH put in money, symlife put in land, sama sama develop, the share price will shoot to the roof already

Posted by melanie181818 > 2018-04-16 18:46 | Report Abuse

This is just my guess, but it's a bit strange to do an RI to raise a minimum 50-100M only. It's either they are very confident of making 200-300M in the next couple of years or they are expecting someone to pour money to them, or maybe both. Mind you, development of sg long's land need a lot of funds

Posted by melanie181818 > 2018-04-16 18:53 | Report Abuse

And RI is not something you can do one time, not enough? Do again. Still not enough? Do a few more times lo. Think behind the scene. Dare to dream, cheers

Posted by kancs3118 > 2018-04-16 19:53 | Report Abuse

@ Melanie....every time when a company performs an RI.....in exchange of funds...they will issue more shares which effectively dilute everyone shareholdings , EPS and NTA....it is not something that we enjoy doing every few years...

Posted by melanie181818 > 2018-04-17 05:21 | Report Abuse

That's why I'm saying this RI is strange, it doesn't raise a lot of cash to cover the debt and capital that's needed in the next few years (only wanted to raise minimum 60M, but I guess they'll get 100M from 310M share base). At the same time, LTH is buying in aggressively at ABP close to 0.80

Posted by nemesis > 2018-04-17 07:12 | Report Abuse

Don sell Pls keep cos the price will shoot above 0.80 soon...

Posted by kancs3118 > 2018-04-17 09:08 | Report Abuse

@ Melanie 181818; you seems pretty sure that all of the shareholders will participate in this RI.

Posted by Jessie Ng > 2018-04-17 10:06 | Report Abuse

good sign

Posted by Jessie Ng > 2018-04-17 10:06 | Report Abuse

haha

Posted by abcde12345 > 2018-04-17 10:24 | Report Abuse

good

Posted by LimKL1 > 2018-04-17 10:47 | Report Abuse

爱你

Posted by melanie181818 > 2018-04-17 12:01 | Report Abuse

Some will sell the OR, but someone will buy it coz they only need 0.35 to get a new share, maybe LTH will