Hats off to them. Managed to rise 23% from last week with low volume trading, keeping under the radar of all the punters. Liquid assets of more than RM320m, that's more than RM0.80 per share!
really glad Plenitude did not buy the hotel in Osaka. Tokyo olympic has anounced that it will not host any international travellers. With the cashpile that it have, no issue with at least 2 cents of dividend. Will slowly accumulate more, waiting for it to go back up or being privatized.
Plenitude has two major potential profit contributors – property development and hospitality.
Property development has been contributing to the bottom line, even in the 2020/21 pandemic years. With the opening of the economy, I expect the contribution to be better. The property development segment was the major contributor to the Group’s performance.
Plenitude started as a property developer but in 2001 diversified into the hospitality business. Today the hospitality business is the largest segment in terms of the Total Capital Employed. But it was not profitable since 2013.
The hospitality segment’s poor performance was due to competitive pressures. The Group had refurbished and rebranded the hotels to address this. At the same time, it had also focused on efficiency to improve the margins.
There are signs that gross profit margins are improving but the jury is still out on whether revenue will improve. The hospitality business is a turnaround case. Because of its size, the creation of shareholders’ value will depend on a successful turnaround.
Good QR overall. Plenitu also did well in preceeding quarter. Assuming this is more of a norm moving forward, current price of1.24 is still too low. It should at least be worth 2.00.
One of the three LRTs radiate out from JB Sentral (RTS terminal) will proceed all the way to Impian Hills, has a station at Tebrau City. Both Tebrau City and Impian Hills are developed by Plenitude.
So what should be the impact on Plenitude share price?
I am holding Plenitude share below rm 1.00 Will hold it at least until RTS is ready. If LRT really take place and has a station at Tebrau City, then will hold the share until that LRT become operational.
Plenitude is the most valuable hidden gem in Malaysian property counter due to extremely low land cost. Very good FCF. Very capable and credible BOD. Very solid major shareholders.
To make 50% profit from this counter within 6 months is sup sup water.
Don't miss the forest for an old tree. Just look at the probability of making 50% profit from Plenitude vs 50% profit from a grossly overpriced stock (from 4 ringgit to 6 ringgit). Weigh the risk of losing big when you only see a table-size cookies drawn in the air.
Plenitude will continue to make good profit from property development as land cost is extremely low. Hotel operations are just addition toppings. More important considerations are the sustainable property development over many more years into the future and the strong cash flow.
Hotel business's revenue increase almost to half generated in property development.. its strategic investment and divestment into the hospitality business in Malaysia, Japanese and Korea is paying.. Inbound Tourist into all these country been exploding in recent years.
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 2909 views | 2 d ago
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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....
chia88
1,189 posts
Posted by chia88 > 2020-04-27 19:46 | Report Abuse
It is serious closing 3 hotel business