I am somewhat surprised that it is still at such high price. Ho Hup is in construction & prop development. For construction, it has a few small projects not worth mentioning. I doubt it is capable of gaining any major infra/construction project. So forget about their construction. As for prop devt, they only have BJ City JV to look forward to. Their own portion I think is substantially recognised/completed and reflected in the accounts. They did commit on a big piece of land in the middle of some oil palm plantation. Unless this turns out to be like Kampar/Utar, I doubt the properties there would sell like hot cake. As for the rights issue, the price is almost the same as the current price. The only sweetener is the free warrant. The RPS is no better as this is not convertible(no capital growth). Although the interest/dividend rate of 5% is higher than bank's FD, I think this would be traded below the rights price of RM0.80 as REITs can give you more than 5% yield with hope of capital growth. In fact other loan stocks have yields of > 5% and they are convertible. My 2 cents worth of opinion.
Dear bro Investlahh,pls do not buy the warrant now but rather can participate in the corporate exercise as you get two free there if you get involved in both OR and PR.Cheers.
A lot of contractors are pre qualified for SUKE. Prolintas is 100% PNB, a GLC. Other GLCs like IJM, MRCB, Gamuda, UEM, etc... are they not qualified??? Why should PNB award any major portion to Ho Hup and not to the other GLCs? Hopefully Ho Hup can outbid the other RMbillion Bhd based on their historical abilities and financial capabilities to construct and deliver major highway construction projects!!!
Albeit they didn't give dividend.. But balance sheet become better and stronger. So they can do right issue and free warrant.. which will further strengthen the company balance sheet
Hohup stand to benefit on its 'passive' 23% profit sharing based on GDV with Malton on Bukit Jalil city, in which hohup need no single sen to develop, all GDV cost bear by Malton.
It is likely because HoHup need to fixed the right share price, which is based on last 5 day average weight market price....now, hohup share price need to rebound higher for them to fixed right share higher for higher fund raising
Come on Ho Hup. PE<4 coupled with decent compounded annual revenue growth of 95% over 3 years in the Engineering and Construction sector is remarkable and good value.
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....
sl3ge
140 posts
Posted by sl3ge > 2016-05-25 14:02 | Report Abuse
guys, R.I issue at RM0.8 the price is it too close to price currently at RM0.85?