If you want to revalue property stock landbank at book value against based on market value, of course, all is UNDERVALUE based on their current sharer price....noticeable example is UEMS.
But what set apart other property counter vacant landbank to OSKP is these 5.4 acres prime land in Damasara Jaya which only carry at RM 4.5m is that OSK already build up Atria Gallery mall on these plot of land, and is already operation, capable to generate steady profit from June 2015 onwards, estimate to contribute annual net profit RM 30m to OSKP or additional EPS 12.5sen on top of its core property development profit.
It good for OSKP minority to interrupt Ong at 1.95, spoil his plan to buy remaining OSKP at just 1.93...it have force Ong to gear 1 sen up at RM 1.94, hoping to seduce more seller
I am waiting to see how the romance of the 3 kingdoms story will end up. I got little bit of shares in all 3 PJD,OSKP,OSK. Just waiting to see OLH's final move.
I think OLH is dead wrong on this last group of minority shareholders---very stubborn. It is like Billionaire trying to starve Millionaire (wouldn't kill them bcoz they are already rich)
Currently, OSK only have first mall, Atria Gallery Mall in Damasara Jaya, net lettable area (NLA) of 470,000 sq ft
There are another 5 malls under planning and target to complete by 2020 1. Second shopping mall in Cheras, 500,000 sq ft of NLA. 2. Third shopping mall in Sungai Petani, one million sq ft of NLA. 3. Fourth shopping mall in Section 13, Petaling Jaya , 200,000 sq ft NLA. 4. Fifth shopping mall in Melbourne, South Bank area, near the casino. (unknown size yet) 5. Sixth shopping mall in Cyberjaya, 350,000 sq ft NLA.
I think Ong strategy still work, he may just engulf OSKP at 1.95 in one bid transaction, while still waiting big volume at 1.93-1.94, still carefully not to stir share higher than 1.95, which is its ceiling limit
Then I am afraid the mall building cost is RM 246m as at 31-12-14 and still counting... NOT FREE as you have said
r°Moi Building cost?? 21/07/2015 11:36
hng33 Ha ha
Building cost?? it is FREE
OSKP acquire these old Atria for RM 75m in 2007, demolish it for cost RM 50m, and award building of new Atria Gallery mall cum 392 SOFO to Beijing Urban Construction group for RM 230m.
But, OSKP is selling SOFO at RM 1100 psft and sold out it within 7 hour, pocketing GDV more than RM 350m. Therefore, OSKP is essentially sold SOFO alone to cover all building cost for entire development, getting these Atria Gallery mall for 'FREE' 21/07/2015 11:43
Of course the building mall is NOT free, as these 'Free' is conditional precedent that all profit from selling SPFO is nil, all cover back to build these mall. But in real accounting, OSK still must recognized progressively on SOFO profit, which in turn back to build mall at cost as stated in properties investment value
at first i thought the same like you also mr hng, but have you figure out, it is not OLH wish to get 100% in oskp...similarly, it is not OLH intention to privatise PJD...maybe he want just 50+1% enough...u see, oskp price at 1.95..meaning those who need to sell can sell in the market..nobody will sell to him 1.95 in cash/osk share....also, pjd at 1.53/1.54 is equal to 1.53*5/4=1.91 in osk..yet osk still remain at 1.86..meaning OLH has no more intention to push osk...those pjd shareholder will opt for cash if they want to accept the offer...or simply sell in open market...in other word, there will be no dilution in osk share...not share exhaang that we intented to see
Kean Leong. I walk the corridor of Osk Plaza (can pick up any 'wind'). OLH wants OskP back. Period. But it is Not so easy--nobody sells. Those volumes you see in OskP is mostly created.
It depend on how you view it lor. OSKP annual profit of more than RM 100m is not direct translate into increase cash hoard, but book mostly as increase in value of its properties investment: which NOT only include Atria mall alone, as other 5 malls even at planning stage, their land value assign for future mall and infra work on it already can book in as part of the value for future mall + OSKP have various commercial outlets + shop lot + sales office + supermarket, all are group under investment properties.
The important thing to take note is OSKP last year annual report still carry these investment properties at merely RM 4.5m. Therefore, if revalue based on market price, Atrial Mall still at can fetch RM 450-500m a surplus range 300m-350m (if exclude SOFO profit), translate additional RM 1.30-1.50 on top of exiting NTA
Very sorry, I am very confused. In OSK, there are no institutions, funds or investment companies having shareholders' stakes. Just poor you and very poor me and towkay rich OLH. You and I cannot do anything to OSK; BUT towkay, he can jump up OSK or dump down OSK. So, this business of malls; even if malls are free, it would had factored into the share price by now. OLH have enough of OSK, OSKP and PJD (not forgetting RHB). So why is the price low? Not much buyers, plentiful sellers. Relax; the worst is yet to come.
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cutedragon
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Posted by cutedragon > 2015-07-22 09:55 | Report Abuse
this place is getting quiet...