KIAN JOO CAN FACTORY BHD

KLSE (MYR): KIANJOO (3522)

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3.05

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669 comment(s). Last comment by Gore Victor Lee 2019-08-29 15:11

yipgusing

483 posts

Posted by yipgusing > 2016-03-28 17:38 | Report Abuse

so when is the takeover going to deal ? any update ? or being called off?

hanting999

463 posts

Posted by hanting999 > 2016-03-28 18:36 | Report Abuse

"On behalf of the Board of Directors of Kian Joo, MIDF Investment wishes to announce that Kian Joo and Aspire have agreed to extend the date on which all conditions precedent to the BSA should be fulfilled from 23 March 2016 to 23 September 2016."
On 23 September 2016 what will happen?

1. Extend to 23 March 2017. (Maybe get another 2 sen dividend.)
2. Cancel deal.
3. Aspire quietly closes shop.
4. See brothers reunite.
5. (Add some more)

sheldon

1,401 posts

Posted by sheldon > 2016-03-31 10:56 | Report Abuse

Perhaps another bidder?

Btw shareholders will have to wait until they are old & grey before they can receive the pathetic dividend on 30 Jun. KJ need not pay out of profit from operations but from returns from money market placement.

sheldon

1,401 posts

Posted by sheldon > 2016-03-31 23:01 | Report Abuse

I just had a conversation with the person involved in the Aspire deal and I'd like to share the following facts:

1. EPF will not budge from 3.30
2. EPF is funding the entire deal and they are pinning their hopes on the evil Mr Chee to take this company to greater heights
3. It requires a 75% majority
4. Can-One can vote as a party who supposedly has no interest in the deal
5. It's possible that they are hoping that the shareholders will grow weary and give up

Comments anyone?

hanting999

463 posts

Posted by hanting999 > 2016-04-01 09:56 | Report Abuse

Why would EPF be so interested in a company like KIAN JOO? Obviously there are more hidden value in this company. Unpaid dividends, prices languishing, sharks lurking, ...... These would make investors fed-up while the value of the company keeps rising.

sheldon

1,401 posts

Posted by sheldon > 2016-04-01 12:09 | Report Abuse

You are absolutely right!

I pointed out to the person that the proposal is in fact out-of-date & the price should be revised upwards as the company in the mean time had made some good gains.

I asked why isn't EPF demanding for higher pay out. That person responded that they could wait - as a small token they declared some dividends albeit pittance.

They are playing a waiting game but it's a balancing act. If they make too much profit, declare puny dividends & keep the share price low then another bidder with deep pockets might appear for this undervalued stock.

hanting999

463 posts

Posted by hanting999 > 2016-04-01 17:12 | Report Abuse

Thanks, sheldon, for all the info.

sheldon

1,401 posts

Posted by sheldon > 2016-04-07 09:43 | Report Abuse

It appears from the 2015 Annual Report that no revaluation of properties was done since there's no revaluation reserves created.

If you recall (look up this chat about a year ago) Retnam commented that at the AGM, it was stated by the senior management that if a revaluation was done then, the NTA per share would increase by approximately 50+ sen.

yipgusing

483 posts

Posted by yipgusing > 2016-04-15 09:46 | Report Abuse

suspended ? .... something goood ?

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-15 09:55 | Report Abuse

The Aspire deal is officially off!!! Now what?

yipgusing

483 posts

Posted by yipgusing > 2016-04-15 10:57 | Report Abuse

On behalf of the Board of Directors of Kian Joo, MIDF Investment wishes to announce that Kian Joo and Aspire have mutually agreed to terminate the BSA and its ancillary agreements.

The BSA, ASA and PSA will cease to have any effect and will become null and void and neither party shall have any claim whatsoever against the other.

sheldon

1,401 posts

Posted by sheldon > 2016-04-15 11:11 | Report Abuse

Looks like much ado about nothing - a mere distraction. Well I hope things will normalise with a regular dividend stream. To make up for the dearth of dividends, perhaps the shareholders should be rewarded with a nice bumper quantum. In exchange, the board and management will gain some shareholder goodwill.

But knowing Can One culture, KJ will be stingy with dividends. They want to take their money to their graves.

cooling

1,676 posts

Posted by cooling > 2016-04-15 11:26 | Report Abuse

nta 2.92

vinoth

640 posts

Posted by vinoth > 2016-04-16 17:58 | Report Abuse

So what affect will this cancellation have on the price of the counter?

sheldon

1,401 posts

Posted by sheldon > 2016-04-17 10:31 | Report Abuse

Subject to the business progressing as well as in the past, I suspect that the price should now trend upwards. There's no incentive by a corporate raider to stifle the price so that it can buy the co for cheap.

yipgusing

483 posts

Posted by yipgusing > 2016-04-18 10:23 | Report Abuse

wow ..moving ..

firehawk

4,779 posts

Posted by firehawk > 2016-04-18 16:11 | Report Abuse

no more cap under offer price 3.30 ......

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-19 13:59 | Report Abuse

Anybody attending Kian Joo's AGM tomorrow?

sheldon

1,401 posts

Posted by sheldon > 2016-04-19 14:55 | Report Abuse

I am

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-19 21:33 | Report Abuse

will try to sit close to see family If I spot them.....lol

dentab

148 posts

Posted by dentab > 2016-04-20 10:40 | Report Abuse

Any good news from AGM please share.....tqvm

yipgusing

483 posts

Posted by yipgusing > 2016-04-20 14:27 | Report Abuse

3.33 wu .... gooooood ...at last..

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-20 15:27 | Report Abuse

This year's AGM is a tame affair compared to the previous few years.....lol. Only big argument is shareholders wants more dividend but directors wants to "conserve cash for capital expansion".

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-20 16:02 | Report Abuse

Can feel that the See family are still bitter with their line of questioning.... especially on directors remuneration. I privately poke the same question to the CFO why the directors get so much bonus this year compared to last year, he said this year wasnt the odd one out, but last year's figure was too low. In 2013 directors remuneration is >9 million compared to 11 million this year. Last year amount of <4 million was too low and no one made any noise then.....

He also commented that in terms of directors remuneration vs profit ratio, Kian Joo is very low compared to its competitors but did not mention which company. May be we should check Can-One and Johore Tin directors remuneration too

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-20 16:03 | Report Abuse

There were also discussions about investment in Myanmar whereby according to CFO, the Group has secured 5 years tax holiday, The Group also acquired a land use rights of 50 years with possible extension for another 25.

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-20 16:04 | Report Abuse

When the directors were probed on the Aspire deal, the response was the pricing wasnt right and EPF did not want to raise the price. So the deal is off.

sheldon

1,401 posts

Posted by sheldon > 2016-04-20 16:20 | Report Abuse

Some points raised at the AGM today which I feel all in this chat should be aware of :

1) Dividends shared among 4312 shareholders (Pg 119 Ann Rept) at 2 sen = RM8.9m. Remuneration shared among 8 directors = RM13.2m (Pg 68 Ann Rept) !!

2) Total cash = RM181m & Retained Earnings RM1.145b. Why cannot pay dividends? Supposedly need cash to expand overseas.

3) Highlighted that revaluation was not done. Why? The CFO gave a somewhat cock-and-bull story. I wanted to counter but the chairman was by then trying to rush through. My comments to each remark is within brackets.

- that if a revaluation is indeed carried out, the depreciation charge would increase and "make KJ less competitive" - (Yes depreciation charge will rise but not as much since most of the increase in value would come from the land for which there's no depreciation and not the structure. As to "less competitive" - I'm puzzled as to how)

- Revaluation fees are expensive, about RM300k (peanuts by KJ size)

- Once Revaluation exercise is chosen, it must be done every 5 years. There's no back-tracking to the cost model with revaluation. (ok agreed but get it done)

- CFO asked the attendees as to whether they will accept a drop in value if revaluation is done in the future. (First of all, property prices normally increase. Even if in the rare occasion the value drops,it will not affect the all-important Retained Earnings from which dividends are paid. It will only reduce the Revaluation Reserves)

From the forgoing, there's a speculation that this management may harbor intentions to asset-strip the company i.e. buy up all the loose shares for cheap, then make an offer. Once taken over sell the various precious properties.

Any comments??

sheldon

1,401 posts

Posted by sheldon > 2016-04-20 16:35 | Report Abuse

The tactic adopted to speed up the AGM is to make the members suffer from thirst & hunger (as no refreshments were served before the AGM) which will ensure that they will avoid long & difficult debates - Truly a capable bunch !!

fengtzekai

125 posts

Posted by fengtzekai > 2016-04-20 16:36 | Report Abuse

Technically, the CFO wasn't wrong. Most of the property if you refer to the list of properties are leasehold property where even the land need to be depreciated. Now assuming the figure of increase quoted is RM0.50 per share, this worked out to be RM222 million. Assuming depreciation is over 50 years, (actually some freehold, some longer lease, some shorter lease but lets take 50 years as a benchmark), additional depreciation a year will be RM4.44 million or 1 sen EPS. At PE of 12, future share price will be lower by 12 Sen,

The CFO did not say the revaluation was not done, but was not incorporated in the accounts because they use cost model. Afterall, they have shared with us the info on the RM0.50 upside, right?

On property prices whether it will come down, you just need to look at the property prices in Klang Valley and see whether it has come down. That point is very subjective in my opinion.

On valuation fee, agreed totally that it is peanut to KJ.

sheldon

1,401 posts

Posted by sheldon > 2016-04-20 20:41 | Report Abuse

Agreed Feng that there's a fair bit of leasehold property - maybe there's pros & cons. But I really am of the opinion that the directors' remuneration in comparison against dividends is egregiously unfair. Thinking about expansion plans when it comes to dividends but the thought escaped their minds when rewarding themselves.

For comparison, the ratio of Dividends to Director Rem for Sports Toto was 316m : 33m whilst Public Bank 2124m : 64m

yipgusing

483 posts

Posted by yipgusing > 2016-04-21 09:13 | Report Abuse

i got a feeling, it will be another scientx

sheldon

1,401 posts

Posted by sheldon > 2016-04-21 17:19 | Report Abuse

I'll consider getting off the bus if the share price > RM4

Posted by littlelolita > 2016-04-27 19:49 | Report Abuse

as a company, revaluation is the least thing to do. unless company thinking shenanigan plan

fengtzekai

125 posts

Posted by fengtzekai > 2016-05-01 13:13 | Report Abuse

Hopefully this counter wont fall back to the price before Aspire made that offer......seems no excitement already

sheldon

1,401 posts

Posted by sheldon > 2016-05-04 05:01 | Report Abuse

It's price-to-book is very attractive

sheldon

1,401 posts

Posted by sheldon > 2016-05-07 22:55 | Report Abuse

I'll be there to catch KJ if she falls to 3.12. Come on baby - daddy's waiting!

sheldon

1,401 posts

Posted by sheldon > 2016-05-10 09:50 | Report Abuse

EPF seems to be on a disposal binge of late. Maybe it's the pathetic dividends that's putting them off. Can't think of anything else as the company seems rather well-run.

yipgusing

483 posts

Posted by yipgusing > 2016-05-13 16:40 | Report Abuse

already 3.12 ..its your time now sheldon .. lolz

sheldon

1,401 posts

Posted by sheldon > 2016-05-15 07:29 | Report Abuse

I was distracted by the discounts galore on other counters so I spent most of my bullets on Paramount. KJ is more a long term play & I'm watching it closely brother Yip.

Posted by Mohd Fahmi Bin Jaes > 2016-05-18 19:17 | Report Abuse

Write a comment..net profit down

fengtzekai

125 posts

Posted by fengtzekai > 2016-05-19 12:15 | Report Abuse

Revenue up 24%. Gross profit up 29%. Good sign.
Profit down 53%. Bad sign.
Main reason - foreign currency loss 25.2 million of which 22.3 million unrealised. Take unrealised loss out of equation - profit up should be 34.8 million, up 18%.
Why forex loss - USD reserved for capital expenditure and Myanmar investment. Make sense? Judge by yourself. :(

sheldon

1,401 posts

Posted by sheldon > 2016-05-20 13:35 | Report Abuse

Unfortunately Fahmi my eloquent response to your question was removed because the obsolete filter programme of this blog site probably deemed certain words as profane without being able to see the context and the big picture of the message.

firehawk

4,779 posts

Posted by firehawk > 2016-06-08 09:30 | Report Abuse

a stagnant thing, that only erode yr holding cost .....

sheldon

1,401 posts

Posted by sheldon > 2016-06-16 10:12 | Report Abuse

EPF is clearing its bowels of chunks of KJ.

sheldon

1,401 posts

Posted by sheldon > 2016-06-17 16:23 | Report Abuse

The trouble is too many shares are going for a song. They are screaming for my attention but I have too little money.

My new target is < 3.

sheldon

1,401 posts

Posted by sheldon > 2016-06-30 14:00 | Report Abuse

Here kitty kitty ... getting warmer

firehawk

4,779 posts

Posted by firehawk > 2016-07-01 16:33 | Report Abuse

today, break through 3 loh ....

firehawk

4,779 posts

Posted by firehawk > 2016-07-29 16:51 | Report Abuse

this one very flat :o

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