A quick update to those who are rational, logical people who are still following this stock (whilst ignore the "special" someones lah).
Haven't had as much time to post since I've been busy.
@Vin Tan: In answer to your question, I'm honestly not sure. The previous quarter's results was a lot easier to see since we could tell again from the quarterly announcement before that as to a couple of land sales being booked then. Even then it's not easy to estimate the amount, heck to give you an idea, for the recently announced quarter's results versus my own estimation was off by a huge margin.
That's the problem with deriving most of your revenue from land sales, it's lumpy and a revenue/quarterly mismatch will skew your results.
This issue would have been mitigated somewhat if the RM203m job with Ultra Green/Oriental has started since it's a cash job with progress billings. However work has yet to commence since Ultra Green is still in the process of getting the development order approved (government bureaucracy).
Okay, on to a couple of points on what I think/have learned.
a) Director's remuneration - I'm not happy with it at all. And I'm not the only one. The upcoming AGM should be interesting vis a vis this.
b) Collateralised bond issue - as my previous posting above. Evidently there are people who still think this is a loan stock. This has absolutely nothing to do with you as a retail/regular investor, except for approval purposes via an EGM. You do _not_ have to fork out one cent of your money into this. Of course some "special" people will disagree.
c) Dividend - yes the amount sucks. I was pretty annoyed when they announced it and felt that they should have just skipped the dividend altogether. But then it was pointed out to me that Benalec has a dividend policy stated from it's IPO. (I believe it's 25% of earnings) Hence why they announced it.
d) Tanjung Piai term sheet - Very likely expect a renewal come December 11 or 12 of this month for another 6 months. I've been told that it's going to be the last renewal. If it doesn't work out, Benalec will probably say to hell with it and go on its own. Rationale in (f) below.
e) Share price - hell of course everyone's upset the price has come down so much. Of course if you believe a "special" someone's view, this is exclusive to Benalec. Never mind the KLSE has tanked, O&G as a sector has tanked like a cement block into water. Bear in mind that Tanjung Piai as a project is focusing on the O&G sector for storage facilities. If you find the O&G majors are suffering, of course they're going to reduce capex and everyone gets concerned.
Has the price touched bottom? I have absolutely no clue. I do not have a crystal ball to see the future.
But there are some fundamental facts to bear in mind (of course if you're "special", you won't believe this). Audited NTA for the company as at end June 2014 is 67 sen. Unaudited NTA for end Sep 2014 is 70 sen.
Consensus estimates for FY15 net profit is an average of 53.85m (Affin: 54.7m, AMResearch: 47.9m, BIMB: 47.1m, CIMB: 54.58m, Kenanga: 65m). That means an estimated EPS of 6.74 sen. At the current price of 68 sen, that's a PE of 10. Is that overvalued? I don't know, you have to decide yourself, especially looking at global oil prices now.
And yes, I still hold the same stake I've always held. Irony is that my other holdings (all blue chips) have made me money. I only allow one non-low risk counter in my portfolio and sadly it has yet to pan out.
f) EIA - anyone who's followed this forum for a while will remember Savvyone's claims. I looked at them with disbelief then and I still do till now. EIA approval is right around the corner (when at that time - I knew for a fact that the application was still in a limbo), RM50m authorised for share buyback (lol) etc.
Those who do follow my postings will know that I refuse to commit myself to things I do not know. If I post something that I consider to be speculative, I will tell you so. Of course the negative spinner in this forum will state otherwise.
But here's a few key facts to bear in mind based off the last quarterly announcements.
The application for the detailed EIA _has_ finally been submitted (or resubmitted to be more accurate). No specific date is given for the submission but informal inquiries have stated it's best to use the beginning of November is the submission date.
The DOE's KPI (heh-heh, I knew I was going use this term one day) for DEIA processing is 12 weeks (84 days - call it 3 months lah). So there should be some news by the end of January. Note that the application is subject to ding-donging between the DOE, Benalec's EIA consultant and Benalec. So there may not be immediate approval by end January. I do not know how long the ding-donging will take if any and I can't seem to get a clear answer from people I've asked. Most say to tack on an additional month but another person said two months. So end of March is the likely dateline.
In the meantime, the company looks dead serious about going ahead with the reclamation work, even without a buyer in advance (hence the RM200m CB issue). Also look at the company's latest balance sheet as at end Sep 2014. There's RM53m in FD, of which 1/3rd is pledged. The rest is not. That's RM35m in cash that the company could have used partly for dividend purposes and/or share buybacks (especially when you consider the price is trading at around NTA).
Why have they not done so? It looks likely that the company's husbanding it's resources for Tanjung Piai. If there's excess cash as work is ongoing in that area, I assume the company intends to repurchase parts of the issued CB, to prevent dilution of the company's shares.
Oh and also on the issue of EIA approval, a lot has been said about Singapore screaming bloody murder over land reclamation in Johor. Bear in mind that the screaming is directed at Forest City. Look at where Forest City's reclamation is compared to Benalec and you'll understand why the former is under pressure where the latter (Tanjung Piai) is not (or not really at least - IMHO).
g) Profitability - the reality is that without Tanjung Piai (and Pengerang I guess) the company is fairly unexciting. They're on track to remain profitable over the next 2 and a half to 3 years (if not every quarter, definitely over a FY period) based off the land sales they've announced (and also inclusive of the Ultra Green/Oriental job) but there's not much growth besides that.
Yes, I know a lot of people are banging on STP2 but frankly I look at Benalec's chances of bagging that job as very low. I've been reading up on their prospective competitors in the international field and it is depressing read indeed. Unless STP2 becomes a semi-restricted tender (requiring local partnership) that is, which I'm doubtful. AFAIK there are no stipulations on E&O forcing them to do so.
So without Tanjung Piai, Benalec will plod on steadily for the next couple of years. I of course sincerely hope they get it soon(ish) and I'm assuming management is as well (the RM200m CB is an added pressure on them to perform well too).
Affin Hwang Capital Research - 3 Dec 2014 We maintain our TRADING BUY rating for BHB with an unchanged target price of RM1.98, which hinge on the commencement of land reclamation works on its massive land reclamation concessions in Tanjung Piai (3,485 acres) and Pengerang (1,760 acres).
CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED ISSUANCE OF UP TO RM200,000,000 NOMINAL VALUE OF 7-YEAR REDEEMABLE CONVERTIBLE SECURED BONDS
EGM is being called for this on the 23rd of this month (meh, one day after the AGM - talk about a timing mismatch to kill both birds with one stone).
A couple of things to highlight from the circular. DEIA submission was made on 12 November 2014. Use that to calculate when (hopefully approval will be given). Based off the DOE's KPI, we're looking at middle of February latest if there are no issues. With any ding-donging with the DOE, it can up to middle of March or middle of April.
Coupon rate for the bond issue is between 3.5% to 4.5% per year, which is not too bad.
The bonds are unsecured but of course convertible. Conversion price to be determined, hopefully at a somewhat better average price then the current share price.
Losing 40 cents doesn't make the stock a bad stock. It makes the investor a bad investor. Every counter has dropped 40 cents before I'm sure. It's all about timing and holding power. Invest what you don't mind parting with into a good counter and hold it. If you invest 100% of your savings then good luck to you.
Yes JJ, don't have to post that so many times. I don't think we are interested to know what the director makes anyway. Only interested in how we can profit from a stock.
If I had bought MAS at its lowest @15 cents and sold it at 25 cents... does that make MAS a good company? Please don't demotivate investors just because you have lost previously. Learn from it.
My my, interesting to see new names pop up and post about how the company is on way to being doomed. So like the infamous negative spinner in this forum.
PN17? Seriously? Do you two even know what PN17 means?
And about the bond, the reason the interest rate is low is because it's convertible. But of course, I'm sure that has no bearing on your views.
I wonder though, are you against or for the bond issue? If you're against the bond issue and you believe no one is stupid enough to subscribe to it, shouldn't you be happy since the bond issue would fail? You should be ecstatic in that case.
And (I'm going on a limb here and assuming that you're not the negative spinner in disguise here) the reason for the bond? Tanjung Piai.
Do go read up on it.
Oh and do also read up on all the land sales that have been announced and is in the process of being completed. Land cannot sell? What exactly are you referring to?
Gearing is low because of shareholder funds....? I must have missed the memo which says that the formula for that has been changed. AFAIK that is how gearing ratio has always been calculated...
splendid_ignorance: Don't think the term sheet extension will affect the price either way. Any current ups or downs can be loosely correlated with oil prices and market sentiments.
One thing I'm pretty sure, it's going to be a rough couple of months until the EIA approval. Consumer confidence is crap, oil prices is still in a tailspin (IMHO) and we also have the GST (which according to our beloved government, will not affect inflation/consumer prices greatly) deadline coming up.
Benalec seems to be sailing through a perfect storm. Destination in sight but the journey is horrible.
Tg Piai's planned as Oil storage hub as it's strategy location. O&G facing oversupply issue and get impact the most should be driller instead of storage sector.
By logical thinking , oversupply will caused demand of storage to raise as we need place to keep those balance product since we couldn't pour petroleum to pacific.
I am confused. Oil price falls becos everybody continues pumping oil. If everybody continues production, then industry activities will go on as usual. How does that translate to depressed state of scenerio for oil supporting companies ? Anybody?
where, you are very cute. Why only start to sell GRADUALLY when you said Ben is on its path to PN17? Are you waiting for the price to get lower as the clock is ticking ? Your holding in this counter must be very huge.
On the other of coin, I am wondering the rationale for you to sing the PN17 tune if you still have substantial holding of this company in yr hand
Vin Tan - oversupply means price will drop. Hence making oil producers lose profit because the oil consumption is the same. For countries like ours, we are pretty much dependent on O&G. So projects might be cancelled and put on hold when there is less cashflow. Correct me if this doesn't make sense to you.
Yeah Ah Ha, I agree too. I'm still holding on too. Just dumped in more. When market is bad, everyone pull out to cut losses. But in actual fact, It should be the time to come in and enjoy cheap shares... lol
where, I have been here telling you people this is rubbish company many months ago. you might have missed my message. anyway, I like your statement below - old ginger story. didn't I said the old guard never fade away. only the idiot king of spinner selling story to you ignorant people that the new MD is very good this and that and the MD is getting a bunch of professional to run the company. hah! indeed a good story to soothe the ear. by the way, you know why director's fee is RM7-8 mil? I let you people guess first. maybe the king of spinner will know why when he/she finally get back the "missed the memo" thingy ... Memo? my foot!
Posted by where > Dec 11, 2014 04:33 PM | Report Abuse who is kukuman? I think the brothers who kicked out by the MD is much smarter than his younger brother. Old ginger always better than younger ginger. When the eldest brother there, the company making profits but after the brothers left, the company starts to fall. Maybe youngest brother is not as capable as his eldest brothers.
Posted by Kukuman > Jun 17, 2014 09:35 AM Let's put it into another chart to see a more realistic stock performance. 13/11/2013 (Day 001) : 1.120 25/03/2014 (Day 131) : 0.920 28/03/2014 (Day 134) : 0.900 01/04/2014 (Day 138) : 0.890 03/04/2014 (Day 140) : 0.885 04/04/2014 (Day 141) : 0.905 08/04/2014 (Day 145) : 0.895 10/04/2014 (Day 147) : 0.895 14/04/2014 (Day 151) : 0.895 17/04/2014 (Day 154) : 0.900 23/04/2014 (Day 160) : 0.935 30/04/2014 (Day 167) : 0.900 05/05/2014 (Day 172) : 0.895 06/05/2014 (Day 173) : 0.940 16/06/2014 (Day 214) : 1.120 26/06/2014 (Day 224) : 1.140 09/07/2014 (Day 237) : 1.090 (Spin doctors said price will go up after EGM. Don't get conned!) 30/07/2014 (Day 258) : 1.090 01/08/2014 (Day 260) : 1.050 (Some cock here claimed holding for long. Don't get conned! Only good for contra player here) 05/08/2014 (Day 264) : 1.050 07/08/2014 (Day 266) : 1.050 (Spin doctors still claimed hold many. typical bull story) 11/08/2014 (Day 270) : 1.020 13/08/2014 (Day 272) : 1.000 (Spinner said after EGM, price will go up. when?) 22/08/2014 (Day 281) : 0.990 (So sad. one by one, innocent investor come out telling they had bought high after taken-in by spinner's story) 26/08/2014 (Day 285) : 0.925 (Spinner now said this is an Extra Long term stock. Extra Long?) 29/08/2014 (Day 288) : 0.920 12/09/2014 (Day 302) : 0.925 (Spinner said he is FULLY invested in mr ben) 22/09/2014 (Day 312) : 0.920 (Spinner said bond issue is good. what a spin!) 07/10/2014 (Day 327) : 0.875 17/10/2014 (Day 337) : 0.810 (The old spinner retired. Now come a new one) 24/10/2014 (Day 344) : 0.850 (coming to full year of 365 days) 18/11/2014 (Day 369) : 0.800 (spinner is back promoting new story. beware!) 26/11/2014 (Day 377) : 0.740 (New low) 01/12/2014 (Day 382) : 0.665 (New low. FULLY invested spinner in mr ben is either bleeding or give up his spin story) 11/12/2014 (Day 392) : 0.610 (King of spinner is back with long post again. beware! The more he talk, the price get lower)
I am tracking this rubbish company share performance.
Kukuman, I agreed with you months ago and thank you for your kind and genuine information on Benalec Company. Kukuman, please let us know if you got information on these brother directors being involved in any other public listed companies. Thank you very much again.
wow. so hot again ah this counter. i like reading all these comments posted by you guys. interesting. btw, reclaimed land is safe if it is done properly and the structure is build properly with a solid foundation laid. there is no worry on that, sentosa and MBS singapore are all built on reclaimed land. did you see they sink or the buildings cracked at all? no. But! as for this counter, some of the comments u made are quite right which i have mentioned months ago. Maybe the MD is not capable of managing the company all by his own. Greed has eaten him up by kicking out his 2 elder same bloodline brothers. as for the shareprice, it has ridiculously dropped since the tussle between the board of directors. use your own eyes and some brain juice to judge this company. if you think its worth to buy then please buy more. The MD will make a lot of money anyway from you guys. as for the increased of directors fees, based on the HOA signed of cause he has to get more money from the company to repay his brothers to buy over their shares. So EASY! Like KING7 said. GO F**K them on the AGM. TQVM
But there are some fundamental facts to bear in mind (of course if you're "special", you won't believe this). Audited NTA for the company as at end June 2014 is 67 sen. Unaudited NTA for end Sep 2014 is 70 sen.
taciturn now Benalec share price below NTA a lot like u mention previously, now u keep buying or keep selling.....so worth to buy or not....
unless there are clear signs that this counter is being delisted or reprivatized, I don't see how a public listed company can deliver such gross misconduct. Their order book is very healthy for the next few years. Contrary to their stock performance. A planned acquisition may be in the making...
samsung555: My stake in the company hasn't changed. I am not pumping any more money into the market at the moment though since global conditions are so crappy.
Until I believe oil prices have bottomed and local conditions (GST, consumer confidence, politics etc) are reasonably stable (or as stable as can be expected), I'd rather hold my excess cash on the sidelines.
Further to the announcements made on 12 March 2013, 12 June 2013, 17 June 2013, 11 September 2013, 12 December 2013, 19 March 2014, 12 June 2014 and 11 September 2014 with regards to the Term Sheet, the Parties have mutually agreed to extend the period of validity of the Term Sheet for an additional duration of six (6) months from the expiry date to finalise the terms and conditions of the Sale and Purchase Agreement.
The extended duration shall come into effect from 12 December 2014 until 11 June 2015 or such other date as the Parties may agree in writing.
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 505 views | 3 d ago
0:17
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 12627 views | 11 d ago
0:17
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....
666666
21 posts
Posted by 666666 > 2014-12-05 14:29 | Report Abuse
who dare to buy the bond?