KUCHAI DEVELOPMENT BHD

KLSE (MYR): KUCHAI (2186)

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Last Price

2.19

Today's Change

-0.01 (0.45%)

Day's Change

2.19 - 2.20

Trading Volume

21,200


4 people like this.

985 comment(s). Last comment by dompeilee 1 day ago

AhPek

119 posts

Posted by AhPek > 2023-01-07 17:57 | Report Abuse

They gave dividend?

TheContrarian

8,944 posts

Posted by TheContrarian > 2023-01-08 18:25 | Report Abuse

Yes, dividend received already.

TheContrarian

8,944 posts

Posted by TheContrarian > 2023-08-28 17:27 | Report Abuse

QR out, profit so high.

AhPek

119 posts

Posted by AhPek > 2023-12-31 16:30 | Report Abuse

The latest news or exercise announced recently, is it good or bad for shareholders? Any advise please.

Syndicates

871 posts

Posted by Syndicates > 2024-01-02 09:15 | Report Abuse

why LU?

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-02 09:40 | Report Abuse

First day of the year limit up. Sold off all, thank you.

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-02 10:00 | Report Abuse

I'm holding for a possible 2nd limit up! Sold some SBagan @ 3.83 in the margin a/c...all that waiting since Dec '21 finally, finally, finally paid off🤗

ACE9696

185 posts

Posted by ACE9696 > 2024-01-02 10:45 | Report Abuse

this kuchai smelly smelly must stay at least RM2.100

Syndicates

871 posts

Posted by Syndicates > 2024-01-02 10:50 | Report Abuse

what for limit up? 1 louis koo only get 0.222 sbagan, NTA remaining 61 sen. got meat?

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-02 11:36 | Report Abuse

SBagan gains from the proposal at the expense of Kuchai.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-02 12:53 | Report Abuse

If apply logic Kuchai would be fully valued at RM1.62 and SBagan still way undervalued.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-02 14:56 | Report Abuse

SBagan hit limit up.

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-02 17:07 | Report Abuse

If tomorrow limit up again, Kuchai's dividend will be worth $1,216 per 1000 shrs...worth holding for gradual appreciation!!!🤗 I also happen to hold 2 lots of Great Eastern bought for S$17.52 last Mar....already received over S$1000 in divvys!🤑

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-03 10:10 | Report Abuse

Bought more Kuchai @ 1.66-1.78

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 16:48 | Report Abuse

Why Kuchai down?

paperplane

21,576 posts

Posted by paperplane > 2024-01-03 17:29 | Report Abuse

not a good deal for Kuchai, why i need to change only 1:0.22 of SBagan valued at such high price?
Sell all asset-liabilities, give me back all my money. You said worth RM275mil right, give it all back loh. I sendiri go mkt buy the Sbagan if I want, give me back my money mah. I dont like you suka suka swap.
Illiquid swap another illiquid stocks, got help situation meh????

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-03 17:46 | Report Abuse

Paper loss paper loss lor...still at least 2 months b4 proposals are approved so there's time for it to go back above $2. I need to buy more to average down the expensive shrs @ $1.90 that gave me a few lots of the sister co. in '22. I have more than ample SBagan left to take profit slowly on to hedge my bet here...selling down the exact amt of shrs I will eventually receive anyway is one way to hedge. Meanwhile, I already reaped a small contra gain buying SBagan around $4 yesterday & selling @ $4.27 & $4.31 today.

Posted by value_investor77 > 2024-01-03 18:45 | Report Abuse

1.This is a related party transaction in which SgBagan will buy the assets and liabilities of Kuchai at Rm275,470,203 and the share consideration price is Rm10.01 which is equal to the revised net tangible assets of SB.


2.At the consideration price of 10.01 Kuchai will therefore receive 27,519,500 shares in SB. Subsequently on a date to be determined, Kuchai will distribute all the SB share to its existing shareholders.


3. The minority shareholders must be aware that the current share price of SB is 3.25 on 2/1/24 and has shoot up to 470 intra day and now settles at 429. The consideration price of 10.01 is immensely exorbitant and does not reflect the trading share price. The shareholders of Kuchai have unavoidably become a sucker by the ratio of exchange in the RTP transaction. It is like receiving a blow and end up with broken bones and blood spilt.


4.Kuchai has 123m shares. it will receive 27.5m SB shares. Hence, the ratio of dividend in species would be 220 SB for 1000 kuchai shares.


5.This simply means if you buy 1000 shares and pay 1250 you will get 220 SB shares value at 3.25 yesterday and now 4.29. Therefore it is difficult to assign a fixed value to Kuchai because from hereon its value is dependent on the movement of SBagan share


6. The related party transaction would turn Kuchai into a cash rich company affected by some section of the Bursa listing requirement. In the end and before the share distribution, the value of Kuchai is simply the cash balance plus the value of the SB shares.

7. Let's calculate and for simplicity I will just take the mid day closing price of 429

The company has cash balance of 81,913,672 plus the share value 27,519,500 x 4.29 would give a total value of 199.97 say Rm200m. Therefore if you divided the total by 123m share, the value per share is Rm1.62


7. Considering that the current share price is 1.71, the RPT that takes time to complete has added 46 sen in value to existing shareholders. When we take the share price 171 and compare it to the value of 1.62 seem to say market has chased up the counter and Kuchai has gone beyond its distribution value.


8. One would be concern as we are aware that the value of Kuchai depends on the share price movement in SB, it is therefore very fluid and versatile. It can fluctuate from south to north and vise versa within short span of time. The fact that SB only has a minute share capital of 66m would subject it to easy manipulation and control.


9 This is my personal perception of Kuchai and it may or may not reflect the actual situation of the company.


10. Trade cautiously

3/1/24

multi530

336 posts

Posted by multi530 > 2024-01-03 19:23 | Report Abuse

SBagan can claimed worth RM10 per share, but let market to decide...

multi530

336 posts

Posted by multi530 > 2024-01-03 19:30 | Report Abuse

if SBagan price dont go up to RM10 after the settlement, Kuchai will immediately hit by impairment loss before it distribution all the SB share to kuchai's shareholders.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 19:35 | Report Abuse

SBagan gains at the expense of Kuchai.

multi530

336 posts

Posted by multi530 > 2024-01-03 19:39 | Report Abuse

yes, agreed and the "expenses" will be very expensive...hope Kuchai later will be lelong to somebody for back door listing

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 20:29 | Report Abuse

Kuchai going limit up on Monday allowed me to completely exit for a handsome gain. Still holding on to Sg Bagan as it has potential to climb further. Will the market price of Sg Bagan be pushed up closer to RM10 in order to make the related transaction appear fairer?

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 20:32 | Report Abuse

Oops Tuesday.

Posted by SeekUndervalued > 2024-01-03 21:01 | Report Abuse

Today closing of SBagan is RM 4.24. Still far apart from the RM 10. See how SBagan performs tomorrow.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 21:25 | Report Abuse

The whole exercise will take many months. Sg Bagan has many months to slowly climb.

Posted by SeekUndervalued > 2024-01-03 21:59 | Report Abuse

Contrarian, what is your TP for Sg Bagan? I am still evaluating the risk-reward for Sg Bagan.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 22:00 | Report Abuse

If we do the maths the fair market value of 1 Kuchai share is 0.222 SgBagan share market price plus 61 sen net cash.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-03 22:04 | Report Abuse

@SeekUndervalued, no target price, I go with the flow. My cost of SgBagan share is RM3.25.

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-04 09:48 | Report Abuse

Bought more Kuchai @ 1.47...yum YUM! Another 300 shrs of SBagan to be received soon! A lot of poverty-stricken & faithless contra players these days chasing hot stocks & limit-up stocks but caught with their pants down when T+2 comes & the music stops temporarily.

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-04 11:02 | Report Abuse

Bad deal for Kuchai, great deal for SgBagan.

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-04 16:11 | Report Abuse

Funny that the 2nd commenter before the previous one has such a sweeping judgement of the deal considering his dismal track record of buy & sell recommendations in other counters like PMCorp, C & C, Huaan etc. Forumers can delete their previous wrong calls BUT I have a memory that is long & enduring!

CharlesT

14,587 posts

Posted by CharlesT > 2024-01-04 17:16 | Report Abuse

Nice trap by the Boss...

All kena above 1.60+

CharlesT

14,587 posts

Posted by CharlesT > 2024-01-04 18:59 | Report Abuse

true also

speakup

25,321 posts

Posted by speakup > 2024-01-04 21:36 | Report Abuse

so the deal is 1 Kuchai share get 0.222 Sbagan share + cash 61sen and then Kuchai shares delisted? is it?

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-05 08:22 | Report Abuse

1 Kuchai share gets 0.222 SBagan share but you can't touch the cash 61 sen.

CharlesT

14,587 posts

Posted by CharlesT > 2024-01-05 08:29 | Report Abuse

Can see cannot touch

Unless they manage to find a new biz

Or else The Directors will be happily makan gaji for many many years

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-05 09:22 | Report Abuse

RM80 million can do what biz? Showbiz?

speakup

25,321 posts

Posted by speakup > 2024-01-05 09:44 | Report Abuse

No delisted and return 61¢ to shareholders?

speakup

25,321 posts

Posted by speakup > 2024-01-05 09:47 | Report Abuse

Wahhh no wonder those chase up to high 1.88 all cut loss

AhPek

119 posts

Posted by AhPek > 2024-01-05 10:15 | Report Abuse

Such a bad deal, do you think they will get it pass in the EGM/AGM?

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-05 12:49 | Report Abuse

They will push up SgBagan to near RM10 before EGM.

paperplane

21,576 posts

Posted by paperplane > 2024-01-05 13:49 | Report Abuse

They should just use WAVP price of Sbagan to determine the fair value. If mkt pricing it steep discount, there must be reason and only fair to use that.

So 1: 0.22 is not a good deal

CharlesT

14,587 posts

Posted by CharlesT > 2024-01-05 14:43 | Report Abuse

Basing on NTA of RM10, abt 125%+ premium....

Looking for Ben 7

dompeilee

11,888 posts

Posted by dompeilee > 2024-01-05 15:41 | Report Abuse

Bought more Kuchai @ 1.43 & 1.44

speakup

25,321 posts

Posted by speakup > 2024-01-05 16:17 | Report Abuse

Pump and Dumped

TheContrarian

8,944 posts

Posted by TheContrarian > 2024-01-05 21:36 | Report Abuse

Done dumping when it was pumped up.

speakup

25,321 posts

Posted by speakup > 2024-01-06 10:28 | Report Abuse

anybody can answer why 1 kuchai = 0.222 sbagan at rm10 ? why shouldn't it be 1 kuchai = 0.555 considering sbagan is only rm4

speakup

25,321 posts

Posted by speakup > 2024-01-06 10:28 | Report Abuse

ada hanky panky ke?

CharlesT

14,587 posts

Posted by CharlesT > 2024-01-06 10:45 | Report Abuse

Bad for left hand but good for right hand

Pick the "right" hand

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