The sum of AED256.1mn (approx. RM292.1mn) should be awarded anytime soon. This is 3 times the market cap of Zelan and provides the needed lifeline for Zelan to commit money for new projects and dividends going forward.
The Abu Dhabi Cassation Court ruled in favour of ZHSB by rejecting the project owner’s application to nullify the Award on 30 April 2020 and dismissing the project owner’s application for Grievance on 25 October 2020. There is no legal ground and avenues for the project owner continued to challenge and dispute the validity
Also. the Meena Plaza Project, including its four (4) towers was demolished on 27 November 2020 by the Department of Municipalities and Transport of Abu Dhabi. This will not dilute the right of ZHSB to recover the awarded sum from the project owner. Further, the Award has been successfully registered and recognised in the Court of Abu Dhabi.
Both the company you mentioned is investement (n2n ) and microchip(keyasic) based company .
Zelan is construction company . For construction based company 60mil revenue and 30mil per year is very small. And its value is based on future contact awards . For now there is no news on future contact awards .
Everyone is speculating this company will be privatised like mmc although there is no substantial news about this.
If you look at zelan transactions for the past 3 months . The price was relatively stagnant and no large buying transactions . 300-1000 and 1000+ lots were in red showing that no insider was buying large stocks . There is no indication insider are buying this stock .
All evidence are showing ppl are selling this stock .
This was in contrary with mmc share which have gradually increased in last 3 month .
I will strongly suggest dont chase high unless there is news of construction awards to zelan .
Just fyi, I believed why the Zelan didn't participate in new tenders as Zelan financially not strong to kick-start the project even if it got it. However, it is has better financial footing than what it is 3 years ago with commencement of maintaining IIUM's concession with RM24-25mn cash inflow a year and sub-contract works for SUKE Highway.
Hence, once they got sum of RM292.1mn from the project owner of the demolished Meena Plaza, turning fortune for Zelan. With major financial boost, their focus is to go into renewables
Even IIUM concession cash inflow is not substantial but it provides another 14 years of cash inflows to Zelan of RM24-25mn a year. That will substantially help Zelan to survive
Q1 2021, it has finally recognised the award of RM292.1mn and this award has been successfully recognised and registered in the court of Abu Dhabi. And no legal ground anymore for the project owner to appeal on this.
If some noticed, u see a bullish set-up of Zelan since Mar 21. But at the same time, investors that understand Zelan also should understand that it is not walk in the park for it to continue to go up. As many frustrated investors / traders will sell any each level as they are holding too long. It will take a bit more time for it to go even higher
The bullish pattern seen in march was due to the report of 60mil revenue . Thats also the price increased from 105 to 145 max . This increase started a few days before the qr report .
This time zelan didn't move at all before the mmc privatisation news broke. No insider buying
I have been in zelan and mmc for the past 2 year .
1. Zelan is small construction company . Was in red until last 2 qr . Even so the revenue was 60mil and profit was 30mil . When it was in red the price was 0.046-0.065 . For the last week qr it was between 0 095-0.145.
2. There was no large lot buying in last 1 month . Last week the buying was in red indicating all large lots are being sold . Ie no insider are buying .
3. The meena plaza in abu Dhabi doesn't translate to profit in Malaysia . Only consultation fee will be charged in Malaysia. Other cost will be recuperated in Abu Dhabi. So there won't be much difference in revenue.
4. The value of construction company is based on future awards . For now zelan have none .
Fair share value 0.105-0.145
Than again . This company have potential , you can invest . Please don't chase high.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hengonghuat88888888
545 posts
Posted by hengonghuat88888888 > 2021-06-04 15:59 | Report Abuse
long weekend. Last hour. miracle? Happy holiday!