I have check annual report that hohup book value for Pavillion mall land is RM 80m. Hohup divest for RM 266m, will give rise to gain RM 186m. Even take into account additional cost to compensate zen court for RM 63m, hohup still nett off with gain RM 123m, about 30sen/share gain to recognized in coming Q4 result.
Hohup another flagship project in Bukit jalil have reach tail end completion. The Sky park residence, 4 tower have already hand over to purchaser. Expect higher profit lump at these stage of vacant possession to be recognized in upcoming Q4 result.
Anther residence unit, Park 2 residence, will be handover by mid 2020.
Both sky park residence and park2 residence are expected to give Hohup RM 200 profit.
Divestment gain from en-bloc sale in pavilion mall (to be based on progress billing 50%-65%) + handover vacant possession in sky Park residence = Lump sum VERY HANDSOME PROFIT for upcoming Hohup Q4 result
1. Upon execute S&P: 2.5% (RM 37m) 2. Last Condition precedent fulfilled : 17.5% (RM 259m) 3. Earthwork, foundation/pilling/basement and ground floor slab: 20% (RM 296m) 4. Progress claim to be based on percentage of completion of the main building. The progress billing is based on monthly progress from Oct 2019 - Mar 2021: 50% (RM 740m) 5. Vacant possession: 5% (RM 74m) 6. 6 month after vacant possession: 2.5% (RM 37m) 7. End of defect liability 15 month after vacant possession: 2.5% ( RM 37m)
Hohup have entitle 18% of total GDV RM 1480m, or RM 266.4m.
Hohup 18% entitlement is based on progress billing in which hohup have claim the initial stage 1 (2.5%). The stage 2 (RM 259m) and stage 3 (RM 296m) already completed, and will bill in hohup on 18% entitlement.
Based on total stage 2 and stage 3 progress billing, hohup is expect to received total RM 99.9m cash to be bill into upcoming Q4 result.
Q4 EPS = 6.30sen, apparently, Ho hup only record billing progression in bukit jalil mall up to stage 2 only.
Therefore, the stage 3 billing only will record in hohup next Q result. It is still far at initial stage to reap massive profit from en-bloc sale of Bukit Jalil Pavilion mall. Hohup earning momentum just begin to pick up.
Bukit Jalil Pavilion mall progression billing
stage 1: Upon execute S&P: 2.5% (RM 37m)
stage 2. Last Condition precedent fulfilled : 17.5% (RM 259m)
stage 4. Progress claim to be based on percentage of completion of the main building. The progress billing is based on monthly progress from Oct 2019 - Mar 2021: 50% (RM 740m)
stage 5. Vacant possession: 5% (RM 74m)
stage 6. 6 month after vacant possession: 2.5% (RM 37m)
stage 7. End of defect liability 15 month after vacant possession: 2.5% ( RM 37m)
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....
hng33
20,513 posts
Posted by hng33 > 2019-12-30 10:51 | Report Abuse
Add more hohup at 51sen