it looks like lg is badly beaten and trying very hard to climb back up ever since. the counter does has it potential but looking back at the scenario of Malaysia's property industry, I do not think the price is going anywhere but down. The price trend over the last 2 years can tell quite a lot about the counter and in my personal opinion, I do not think the price will surface before the end of the year.
The property sector to remains weak during the first half of the year, according to Knight Frank Malaysia. I doubt that L&G is going anywhere in the next six months
We expect an imminent turnaround, projecting its core earnings to grow exponentially at a CAGR of 226% over FY18-20F due to its small base. The redevelopment of its 36-acre Sri Damansara clubhouse land is set to fetch lucrative returns given its low land cost at RM2.40psf which is only a tiny fraction of its market price of >RM300psf. This RM1bn transit-oriented development with close proximity to MRT Line 2 could be launched by end-CY18.
Valuation:
Initiate with BUY and RM0.28 TP, based on a 65% discount to our fully-diluted RNAV. It is trading at an unjustifiably steep discount of 73% to its RNAV, giving a decent dividend yield of 4.5%. With a net cash position of RM230m representing ~35% of its market cap, L&G is set to unlock its deep land value via more launches.
After an absence of more than a year since its last launch of Astoria phase 1, L&G is set to launch the second phase of Damansara Foresta called Damansara Seresta (RM480m GDV) and also its first township development in recent years with Sena Parc phase 1 (RM230m GDV) in Senawang where the former Tuanku Jaafar Golf and Country Club is located. A strong sales performance from both projects could help deliver impressive earnings growth given its small earnings base.
Maintain Buy:
We reiterate our BUY recommendation with a TP of RM0.28, based on a 65% discount to our RNAV. It is trading at an unjustifiably steep discount of 73% to its RNAV, thus giving a decent dividend yield of 4.5%. With a net cash position of RM218m (representing ~35% of its market cap), L&G is set to unlock its deep land value via more launches.
As property owners, majority of you should know that property developers can only carry out progressive claim. Property development usually takes an average between 18 and 24 mths to complete a project. The initial 6 to 12 mths progressive claim is nothing more than 35% of the total selling price of the property. How does one expects to see the a handsome profit reflected on the quarterly p&l report within a short period of time based on the fact above? Furthermore, property market is in a sludge. That will makes matter worst.
Bottomline, in my opinion, L&G share price will not see the light of day before the end of the year despite having healthy sales. Not only the price will not appreciates, but it will continue to falls due to poor market sentiment, no thanks to the US who is making everyone lifes a living hell by going against China on trade issue.
Saw a lot of their Astoria and Sena Parc advertisement on Facebook. Dropped by at their sales gallery in Senawang last weekend. Quite encouraging with 45% sales already despite such challenging economy. Maybe sales will increase next month once 6% GST no more. Gonna add more shares on Wednesday since it has dropped a bit.
Super undervalued based on NTA. And I got 8% dividend this time. So happy. Let's hope the 0% GST will help improve property market sentiment. Further sales profit from Astoria and Sena Parc will be included in the next quarter reports.
Cash rich company with RM385 million and very little debt. D/E only 0.16. As long as can continue pay me dividends, I am glad to park my savings with L&G giving me 8% - 10% dividends than only 3% FD in the bank. One day when it's property market boom, this stock price will surely hit the roof.
RE : Jeffreyteck NA per share dropped so much. Profit almost equal to revenue?
NOTICED YOUR OBSERVATION ON ITS FULL YEAR PROFITS REPORT HENCE WENT TO CHECK ON ITS P&L AC AS REPORTED YESTERDAY AND FOUND THAT ITS PROFITS HAD BEEN INFLATED BY 2 EXCEPTIONAL ITEMS TOTALLING RM78.2M. (RE :- “ A9. Profit Before Taxation The following amounts have been included in arriving at profit before taxation: Gain on disposal of fixed assets 34,811 Write back of provision for cost to complete 43,390 “ )
DOES IT MEAN THAT WITHOUT THESE 2 EXCEPTIONAL INCOMES L&G WOULD HAD ACTUALLY INCURRED A TRADING LOSS FOR THE YEAR? (DUE TO WEAK PROPERTY MARKET)
TQ Janet for taking the efforts to find out more. Despite quite an attractive dividends, if it actually incurred operating loss, will think whether to reenter. Good luck everyone.
GOOD COUNTER TO CONSIDER , i bought while is 0.225 , now 0.18 , very cheap , awaiting the gain in years to come , i calculate about three years time , can triple current price , is my expectation .
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 331 views | 2 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11590 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
khatulistiwa1234
46,261 posts
Posted by khatulistiwa1234 > 2018-04-08 15:17 | Report Abuse
中国從清末这一百多年到邓小平改革开放以前,清政府官僚贪污腐败到了极处,当年的贸易战,鸦片战,八国连军,我中华是败得一無事处,还要割地赔款受尽西方列强的屈辱。
清朝㓕国后军阀割据,小小日本都可随意侵略我土,姦杀我华夏子民。
年年战乱,兵连禍结,荒野遍地,農民無田可耕,百姓无家可归。当家的不争气不廉洁,每天忙于争权夺利,使老百姓则吃尽苦头,受尽凌辱,妻离子散,饿死街头惨不忍睹,当官的爺们拿国家子民的俸禄于心何忍。
因此中国与世界中华子孫对中国及中国文化传统彻底喪失了自尊,丧失了信心。
改革开放以来新中国埋头苦干,忍气吞声30年不扛大旗,不说过头的话,不做过头的事,卧薪尝胆,忍辱负重,今天贸易战中国终于敢回应老美,中国一不会怕二不会躲,会將以牙还牙,太度之坚硬建国历史第一回!想必中国準備好应战心里,中国務必打赢一场又一场贸易战,货币战,金融战,才能为中华子民赢回自尊。
来一个【杀虎给狼看】震懾欧盟列国。打铁还需自身硬这是硬道理,不打【贪】民何以富,不整军国何以强。毛主让中国人站起来,江老让官僚贪起来肥起来,希望习大能让中国強起来硬起来,对内打贪唱廉,对外硬软兼備,施展我中华之政治智慧平定天下。几千年了,邓叔还在天看着我们呀!,我想是时候了!