KUALA LUMPUR: Following expectations of the East Coast Rail Link (ECRL) not being shelved, stocks of construction companies linked to the rail project rebounded yesterday.
An online portal disclosed that there is a heavy penalty imposed to terminate the project of some RM22bil, should the new government cancel it.
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Hence, shares of construction companies such as Gabungan AQRS Bhd, George Kent (M) Bhd and Lafarge Malaysia Bhd, which are linked to the possible contract wins in the project, had showed a rebound.
Construction player Gabungan AQRS shares rose around 11% to 85 sen at 5pm when the market closed yesterday, from 76 sen in early morning trade.
Cement player Lafarge Malaysia, which has secured a contract to supply cement for the ECRL project, rose 10.8% by midday to RM3.26, from RM2.94.
shares of construction companies such as Gabungan AQRS Bhd, George Kent (M) Bhd and Lafarge Malaysia Bhd, which are linked to the possible contract wins in the project, had showed a rebound.
Due to peculiarity of funds accounting ( not mutual funds), companies like EPF, KWAP and TH can only pay u dividends out of dividends received and other realised profits. They are always on the look out for dividend income. They have incentive to buy shares cum dividends.
Posted by Tian Bao Ming > Mar 12, 2019 2:52 PM | Report Abuse
Yes, QR must be shitty and I won't tell you total share in issue 563m while treasury stock 46.8m. This share is hopeless, pls dispose all before it become worthless paper.
I think Gkent is good to enter, not because of the contracts coming in. But because it has a strong water business as bottomline, the price has corrected a lot and stabilized, it has secured long term LRT3 contract so it wont go hungry this few years and also it pays dividend
Tian Bao Ming, You're so confident about there's a catalyst on Monday. Can't you provide any teaser? Like trains, or waters meters made of gold or something?
April just go to airport, if you can find Gkent and MRCB bosses going to China with Tun Daim, Then we are going to to be rich. If not with current Meters, hospital and LRT projects company can still make good profit and pay good dividend for many years. So don't worry.
KUALA LUMPUR: The fate of the East Coast Rail Link (ECRL) is close to being finalised with just some minor details to be sorted out.
Tun Daim Zainuddin, who will lead a delegation from Malaysia to China to mend ties with the world’s second largest economy and Malaysia’s largest trading partner, says the team from China has been working with Malaysian officials for some time on the project and all that is left are some small issues to be ironed out.
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“We are almost there. Just need to tighten the screws here and there,” he says.
Daim says the Chinese companies were not in the wrong over the contract but it was an uphill task to convince them (to renegotiate).
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“So let’s sit down and talk,” he says.
The ECRL project has been halted since July 3 last year. The 688km rail link, if built, will connect Port Klang in Selangor with Pengkalan Kubor in Kelantan, and will be constructed in two phases.
Daim says he has been in touch with the relevant parties in China and both countries have reached a decision to finalise the agreement.
Whether a final reworked agreement can be reached, Daim says: “We say Insya-Allah. But men have to work.”
Daim will brief Prime Minister Tun Dr Mahathir Mohamad of the developments over the ECRL and will head to China next month. It is an important trip so that any past friction between both countries could be smoothened out given the long historical ties both countries have shared.
“That is the objective. We have been friends for a long time and trading for centuries.
“We know them and have a long history of ties. We are the first country in Asean to establish relations with China.
“Those days they were poor and needed our help. But now, they are the second largest economy and soon will be the first. Like it or not, they are there,” he says.
Mending ties that seem to have been fractured is important as after Pakatan Harapan took power, contracts with Chinese companies, particularly the ECRL, were jettisoned. Negotiations have continued to resolve the impasse and both countries seem to have mended their differences and are back on the footing they had in the past.
Dr Mahathir said last week that Daim’s role as chief negotiator over the ECRL was important based on his expertise and capabilities.
He told Parliament that the government appointed Daim as an adviser to the Prime Minister to lead the negotiation process with China to ensure a win-win solution could be obtained.
“He was chosen because of certain capabilities. Sometimes when we are negotiating, we need a person who will be accepted by the other party.
“We face certain challenges in choosing the best person to carry out the negotiations.
“That is why we chose someone outside (the government) after making the evaluation as to who was best suited and capable to discuss with China,” he said.
Daim also says the issues surrounding water supply need urgent attention to make sure people and industries have enough supply of clean water.
He says the situation in Johor and Kedah is acute and there is little or no reserves in states such as Selangor.
“My own view is that water, electricity and telecommunications are strategic industries or infrastructure, and that is where Khazanah Nasional must come in.
“It costs a lot of money and has to benefit everybody,” he says.
I don't understand that remark. I do understand I'm getting 6% dividend per annum in existing business, plus guaranteed profit from LRT3 11.8 billion contract incoming.
Is talamt paying you dividend over your 3 years since you bought it at 8 cents?
>>>>>>> Posted by calvintaneng > Apr 1, 2019 8:16 AM | Report Abuse
The dividend for latest quarter is 30% lower as compared to the same previous quarter in 2018. No guarantee in any biz. Besides, the company is not getting any replenishment of their orderbook since last year.
Dividend payout can fluctuate, don't be so sure! If the company makes a mistakes, then in future will definitely be lower payout or even no dividend! That's a possibility!
The RTS Link project would cover 4km of rail between Bukit Chagar, Johor Baru and Woodlands, Singapore, with the capacity to ferry 10,000 passengers an hour.
Ownership George Kent (Malaysia) Bhd Mutual Funds that own GKENT Name Shares Held % Shares Out Change In Shares % of Assets As of Date DFA Emerging Markets Core Equity Portfolio 5,691,187 1.01% +940,300 0.01% 10/31/18 DFA Emerging Markets Small Cap Series 2,877,400 0.51% 0 0.01% 10/31/18 CIMB Principal - Small Cap Fund 1,940,700 0.35% -618,900 1.96% 12/31/17 Stichting Pensioenfonds ABP (Global Equity Portfolio) 1,834,681 0.33% +1,241,531 0.00% 09/30/18 DFA Dimensional Emerging Markets Value Fund 1,586,200 0.28% +1,586,200 0.00% 10/31/18 1,181,600 0.21% +1,181,600 0.11% 12/31/18 RAM (Lux) Systematic Funds - Emerging Markets Equities 1,157,393 0.21% +1,157,393 0.02% 06/30/18 892,576 0.16% +69,935 0.01% 09/30/17 KAF Dana Adib 592,000 0.11% +592,000 1.43% 04/30/18 KAF Tactical Fund 550,000 0.10% +550,000 1.25% 02/28/18 Institutions that own GKENT Name Shares Held % Shares Out Change In Shares % of Assets As of Date M.M. Warburg Bank (Schweiz) AG 19,375,735 3.44% +7,855,735 0.64% 04/30/18 Dimensional Fund Advisors LP 11,316,537 2.01% +2,651,400 0.00% 10/31/18 Norges Bank Investment Management 7,485,600 1.33% +7,485,600 0.00% 04/30/18 AIA Bhd. 5,552,811 0.99% +2,143,549 0.08% 04/30/18 Vantagepoint Investment Advisers LLC 3,706,550 0.66% +3,706,550 0.16% 04/30/18 Kumpulan Wang Persaraan 3,615,600 0.64% -884,400 0.01% 04/30/18 Phillip Capital Management Sdn. Bhd. 3,261,750 0.58% -4,566,600 1.51% 04/30/18
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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....
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Posted by Bursalord > 2019-03-28 11:40 | Report Abuse
ECRL-linked construction stocks up
BUSINESS NEWS
Thursday, 7 Jun 2018
by zunaira saieed
image: https://www.thestar.com.my/~/media/online/2017/12/18/00/49/ecrl-east-coast-rail-link.ashx/?w=620&h=413&crop=1&hash=712068C50B2B9376866B702C54E0F9CEAD21CC71
KUALA LUMPUR: Following expectations of the East Coast Rail Link (ECRL) not being shelved, stocks of construction companies linked to the rail project rebounded yesterday.
An online portal disclosed that there is a heavy penalty imposed to terminate the project of some RM22bil, should the new government cancel it.
ADVERTISEMENT
Hence, shares of construction companies such as Gabungan AQRS Bhd, George Kent (M) Bhd and Lafarge Malaysia Bhd, which are linked to the possible contract wins in the project, had showed a rebound.
Construction player Gabungan AQRS shares rose around 11% to 85 sen at 5pm when the market closed yesterday, from 76 sen in early morning trade.
Cement player Lafarge Malaysia, which has secured a contract to supply cement for the ECRL project, rose 10.8% by midday to RM3.26, from RM2.94.
Read more at https://www.thestar.com.my/business/business-news/2018/06/07/ecrllinked-construction-stocks-up/#CYbFZR46MgtEjA8z.99