Posted by Harold Huong > 2015-05-27 11:25 | Report Abuse

Life is beautiful

Posted by Icon8888 > 2015-05-27 11:27 | Report Abuse

This is one of those companies that is good at talking bad at delivering

Posted by coolinvestor > 2015-05-27 12:21 | Report Abuse

trade receivables are what customers owe benalec in the short term period hence put under current assets.
trade payables are what benalec owe suppliers(or other ppl) short term(hence its in current liabilities)

so if trade receivables increased...this normally means ppl still owe them lots of money. this is ok and good. collection is another matter though.

however due to nature of business(as mentioned) profits for every quarter may not be constant...hence thats why i believe they are going into power infrastructure with pestech...getting more recurring revenue every month?

regardless, at 65sen now i will accumulate more. I see no wrong and issue with this slight quarter loss and the lawsuit. all companies go thru this anyways

Posted by coolinvestor > 2015-05-27 12:22 | Report Abuse

plus klse is in a downturn at the moment. everything falls

Posted by CaoCao > 2015-05-27 15:11 | Report Abuse

Thanks coolinvestor and others... i decided to hold nonetheless.

Posted by Ah Ha > 2015-05-27 16:15 | Report Abuse

So many predictive. can i know, will it down to 50 cents? Possible?

Posted by coolinvestor > 2015-05-27 16:33 | Report Abuse

mr. ha what you are suggesting....is to see the future. Unfortunately there is no way to predict the future movement of any stock prices. You cannot catch the bottom nor the top. This is just impossible.
However, U can only try to buy in at the average low...which is now. Nevertheless, this is also one of the strategies...averaging down...buying in at subsequent lows.
Investing in stocks is not for the faint hearted.

good luck

Posted by happyvic > 2015-05-27 17:31 | Report Abuse

why you bother replying ah ha... he is only trying to create turmoil... I don't believe he is as dumb as his words...

Posted by Vincent Tan > 2015-05-27 19:52 | Report Abuse

Ben may go down to fifties like ah ha hopes for
do we wait for it to happen before starting to buy, or collect some while price is retreating? a hard to answer question, like coolinvestor said, we won't know what is going to happen tomorrow

but ask ourselves this question, what if the price never go sub-60 when it returns to uptrend again, and we have not taken any action to accumulate?
I think somwhere btw 65cts and 53.5cts lies a range of safe entry points.

ah ha 50cts is possible(anything is possible in share market eg huge loss reported next Q) but not highly probable. fundamental landscape has changed for Ben with the approval of EIA
but, here is the catch, this is not for the faint hearted ones

Posted by losing > 2015-05-28 09:30 | Report Abuse

Taciturn seems quiet nowdays. No longer any useful and reliable info in future

Posted by VinTan > 2015-05-28 11:37 | Report Abuse

losing, since you are so fond of taciturn, go read his postings on 25/5 as well as 26/5

Posted by ykloh > 2015-05-28 11:38 | Report Abuse

Coolinvestor : normally, any increase in trade receivables is due to increase in revenue in the same period, but not in this case, although there is an increase in deferred revenue. As of 31.03.2015, trade receivables exceeds deferred revenue by RM200m.

I am trying to work out from the published accounts the amount of 'hidden, profits in the sales for which SPA already signed but not concluded. In this way, the future financial performance of the company can be more accurately estimated. Any comments.

Posted by happyvic > 2015-05-28 11:38 | Report Abuse

losing is probably where.... where's reputation has gone down the drain... non credible anymore... so he created new account... so silly

Posted by VinTan > 2015-05-28 11:40 | Report Abuse

sub 60cts, here we come ?

Posted by taciturn > 2015-05-28 12:23 | Report Abuse

ykloh: It is not that easy to calculate it just based off the balance sheet. I know since I have tried to do so myself.

A simple back of the envelope calculation would say:

For cash flow, trade receivables minus trade and other payables and also minus current borrowings would show the gross cash the company expects to receive from its sales. (This is simplistic as both receivables/payables might also include entries for the company's other business sectors, i.e. shipping)

From a cash flow perspective, it makes the whole thing look pretty awe inspiring, no? i.e. RM737m-RM156m-RM23m=RM558m, all within the "current" i.e. next 12 month period. However, see below for added points.

For revenue (and P&L), deferred revenue against trade and other payables and also minus current borrowings would show the company's expected gross profit from its land sales. Again, not taking into account the figures may include other business sectors.

On the surface, that makes the company's gross profit look pretty impressive too (RM533m-RM156m-RM23m) at RM354m, as it is labelled under "current".

However, this does not take into account, taxation, Benalec's standard operating expenses (typically RM30m a year), any further forex gains/losses (this has to do mainly with the fact that their ships are registered via Labuan offshore companies IINM) and also that some of the lands being sold are pending land title applications, meaning land premiums have to be paid when the title is granted. (I presume, the premiums are paid on title grant and not on application).

I have no idea how much the land premiums cost in Melaka for reclaimed land.

All this of course affects not just the P&L but also cash flow (excluding forex losses, since they're unrealised - that affects P&L and not cash flow)

Also, another difficulty in making estimates is that Benalec is still a going concern, meaning that expenses related to the reclamation of unsold land is continuing, i.e. the clock does not stop for the purposes of making estimates.

Added in with the lumpy nature of revenue bookings, you can see why it is not easy to make an accurate estimate. Note, I am not an accountant, so you might want to seek a more professional perspective as my views may not be wholly accurate.

Posted by VinTan > 2015-05-28 12:23 | Report Abuse

ykloh , thanks for you inquisitive effort
I am wondering, can hidden profit in the sales for which SPA already signed but not concluded as you mentioned be taken as trade receivables ?

Posted by VinTan > 2015-05-28 13:01 | Report Abuse

Hi taciturn, good to hear your insight again
but I am still not able to see how the discrepancy come about based on your comments although I do take the +ve discrepancy as something favorable
has there been a written off item in the past that is expected to recovered ? Sorry I have not been looking deeply into Ben's past accounts

Posted by VinTan > 2015-05-28 13:08 | Report Abuse

Taciturm , you are making an avenue of PERSONAL tussle out of this forum with your meaningless tracking of previous postings by others
I have to scroll the my computer screen very long each time before I can read something others have to say, posted before your garbage

Posted by happyvic > 2015-05-28 13:17 | Report Abuse

yeah... don't appreciate nonsense like these... please don't post like jjwong and kukubird... its kiddy.

Posted by taciturn > 2015-05-28 13:30 | Report Abuse

VinTan: Sorry, but am not quite sure what you mean by discrepancy.

There have been no reversals of written off items as far as I know since the company was listed. This includes bad debts, which is almost negligible (totalling less than RM500k since listing)

Posted by VinTan > 2015-05-28 13:53 | Report Abuse

Taciturn,

by discrepancy I mean the difference between the sum of revenue and deferred revenue and 'trade and other receivables'

Posted by taciturn > 2015-05-28 14:20 | Report Abuse

VinTan: Ah, okay. I get what you mean now.

With land sales, the auditors require you to book revenue only after you have been fully paid. In other words, that is where you find the bulk of deferred revenue comes from.

I believe some of Benalec's other business activities are not affected by that requirement, i.e. shipping. They have already billed for the work, booked it as revenue but are awaiting payment, hence why it is under receivables.

The amount is substantial though, being net receivables at over RM200m of the sum, so I am sure I have left something out. I was thinking that it may be receivables that have been past due for a long time which has snowballed over the years. However I took a look at Benalec's last annual audited accounts (for FY14) and only RM15m was past due at that point, so that theory is out.

Perhaps an accountant who reads this forums might like to give their opinion?

Posted by taciturn > 2015-05-28 15:11 | Report Abuse

Personal thoughts on the positives and negatives for the company now, based off the current share price. CaoCao, you might find this of interest to you.

The negatives
1) Land title application. A land sale was made to Faithview Supreme on 28 Oct 2013. The announcement made on that date stated that they expected completion in the 3rd quarter of FY2015. (end March 2015)

In the notes to the account for Q4FY2014, it stated under item 16 that Benalec was in the process of applying for the land titles. Implicitly, this meant that reclamation works had been completed.

Completion of the sale was still expected in Q3FY2015.

The latest practicable date (LPD) for this note was 18 August 2014.

In the latest quarterly notes, the same statement was made about it still being in the process of applying for the land titles. As it was not booked in that quarter, there was a shift of completion date to Q4FY2015. (end June 2015)

The LPD for this note was 18 May 2015.

This means that the land title application has been in process for at least 9 months.

My unhappiness here is on three points:
a) There is obviously something (or should I say, someone, guess who) causing delays in the title application. If said incident can happen for this application, then it can happen for others too (including Ultra Harmony's titles).

b) I am very disappointed that no one in Benalec seems to be keeping track of this. You should know how long title applications take (I have been told it is 6 months on average) and after 6 months with no news surely someone should have said something to Vincent Leaw. Am assuming with his kangtao with the land office he could have rectified it quickly.

c) The target date for completion here may not be accurate. The original SPA with Faithview is Benalec's standard sales contract. Meaning that Faithview has 3+1 months to pay up on receipt of the title. I.e. if you assume the title comes out on 1 June 2015 and is delivered to them, they might only pay on 1 Sep 2015. Meaning that the sale is only booked as revenue in Q2FY2016.

Granted, I do not know the relationship that Benalec has with the owners of Faithview. Their relationship may be strong enough that management may be able to convince them to pay early. But again, this depends on title issuance of course. If that was the intention of stating completion date to Q4FY2015, then that is fine. But if it was an oversight and they did not take that into account, then I would be angry.


2) Poorer Q4FY15 results
I believed that this financial year would be an improvement over the last financial year. But with the delay on titles this will leave investors wondering if they will be booked by Q4. If Faithview, Ultra Harmony Phase 1 and 2 are not booked in Q4, then the only revenue booked will be the Ultra Green/Oriental cash job.

Whilst I understand that the company is focused strongly on this job (for cash flow purposes, it makes sense, with monthly billings), I doubt if the billings will be sufficient to keep Q4 profitable.

The contract is RM203.89m with a duration of 30 months. Using simple calculations, billings for one quarter will be RM20.25m. Assuming a 15% margin, profit from the job will be about RM3m. Benalec currently has a "burn" rate of about RM30m a year for its expenses (not including forex losses/gains). Meaning that this will be insufficient will cover an average RM7.5m expense for one quarter. Granted, the job may be expedited further so that the profit may exceed operating expenses for the quarter.

Realistically, without any land sales being booked for the next quarter, we can expect Q4FY15 to be a loss making one. Also, FY15 may drop into a loss, depending on how it goes. Yes, the company's prospects for the next couple of years is good, but if you show a poorer result than FY14, then really, that is appalling. You should be on the road to recovery since then, not still trying to find bottom.

On the other hand, if nothing is booked for Q4FY15, this will likely mean you would probably have a fantastic Q1FY16. But again, too little too late for FY15, and you know the market will be merciless when FY15's financial results are out.


3) Research house coverage / Investor relations
I feel that the company is regressing on this point. Out of the 5 research houses that cover the firm, Kenanga has placed their coverage to under review. Affin, BIMB and AMResearch have downgraded their target pricing because of this. I have no clue about CIMB.

Instead of going into damage control mode (management knew the results would be poor after all) and having an immediate briefing with analysts after the results, nothing seems to have happened. I am not pleased at management's lack of action on this part. Yes, IR is usually considered an irritant for smaller firms, but if you ever want to hope for the share price to advance you should be banking on this too.

Posted by taciturn > 2015-05-28 15:14 | Report Abuse

The positives
1) Talking about the land title issues, one thing Benalec does have to its advantage is good ties with the Melaka state government. (they have reclaimed more than 2000 acres in Melaka after all) It is possible to expedite things if necessary. What I find somewhat disappointing is that, they did not do so at the 6 month mark.

This may be a case of too little too late to save Q4FY15 though.


2) NTA stands at 71 sen. Announced land sales stand at RM500m. That is a reality. Balance sheet actually looks pretty damned good overall.


3) The convertible bond issue has been completed. Cash flow wise, the company has some room to maneuver for its Melaka and general operations. This would be a stop gap measure though, since the bulk of the funds (as well as revenue from sales which are finally booked) would be needed for Tanjung Piai to really kickstart reclamation works.

A rough estimate is that the company will need around the region of RM200m to reclaim the first 100 acres in Tanjung Piai. And that is important since Benalec will likely go with a "reclaim first, then sell" policy on the first lot.


4) The term sheet with 1MY Strategic Oil Terminal (1MY SOT) is about to expire on 11 June. This is a good thing since from my understanding, phase 1 of Tanjung Piai (which the term sheet covers) is the most desirable. After it expires, Benalec is finally free to discuss selling phase 1 to other off-takers.

At the end of the day, 1MY SOT is a dead duck anyhow. It is too bad they could not get that term sheet with them terminated earlier.


Some of my investing peers have chosen to sell down their stakes with the view of buying back after Q4FY15 results are out since they are of the view that quarter will have poor results as well and likely leading FY15 into a loss. For the record, I am still holding my original shareholding.

In for a penny, in for a pound. Invest at your own volition.

Posted by CaoCao > 2015-05-28 21:14 | Report Abuse

Thanks Taciturn.Really appreciate your thoughts.

Posted by bergman > 2015-05-29 09:40 | Report Abuse

Who know why this co invest so much fye 2015 in fixed assets when co make loss ? Anybody know why?and whether impairment issues on receivable or WIP or ppe ?

Posted by Ah Ha > 2015-05-29 15:55 | Report Abuse

Hello! Mr. Ben laosai again? Why no supporter?

Posted by happyvincent > 2015-05-29 16:03 | Report Abuse

Losses but generous remuneration.

Bursa-listed companies continue to reward directors with large remuneration despite incurring losses. While some reduced payouts due to their losses, others increased total directors’ remuneration.

http://www.focusmalaysia.my/Mainstream/Losses%20but%20generous%20remuneration

Posted by Ah Ha > 2015-05-29 16:12 | Report Abuse

No one Make noise during AGM for all the remuneration?

Posted by BellaGal2012 > 2015-05-29 18:40 | Report Abuse

Is this share still have potential? I have been follow from 0.80+ now drop till 0.625?

Posted by oasischeah > 2015-05-30 11:45 | Report Abuse

I would not touch this share. The directors are all for themselves especially the MD. Go look for many others but No No for Benalec.

Posted by Kukuman > 2015-05-30 13:42 | Report Abuse

oasischeah, you are one of the very very few sane voice here. this forum has been drowned with spinned story and stupidity mentality. there is always one lone voice giving spin story about how good things still are with this company. ofcourse there is also someone said it is good time to buy now because you could reap profit when the price re-bounced. stupidity has no boundary

Posted by yahomenelson > 2015-06-01 11:17 | Report Abuse

we don't care the director pay at high remuneration, but try not to pull down the company value...........please take care for the shareholder

Posted by Ah Ha > 2015-06-01 11:57 | Report Abuse

Do you think greedy will not spared on small shareholder?
What do you think you can do more?
Shout at AGM on the directors face?
or just wish and pray hard for your hard earn money?

Posted by losing > 2015-06-01 14:49 | Report Abuse

good company, bad management

Posted by Vincent Tan > 2015-06-01 16:22 | Report Abuse

Fitch said more than 50% chance Malaysia get downgraded in rating by second quarter, look like Ben may go under60 soon with poor market wide sentiment

Posted by Ah Ha > 2015-06-01 17:37 | Report Abuse

all the Mr. Ben supporter, please say something good lah !!! will it go down to 5 cents?

Posted by JKing > 2015-06-02 15:24 | Report Abuse

time will tell the truth. no arguement is needed and i respective every individual perspection and opinion.

Posted by happyvic > 2015-06-02 15:34 | Report Abuse

price drop... all the dumbfarks appear again... lol..but u see now... up 4 cents back... regret not restocking? hahaha!!

Posted by Ah Ha > 2015-06-02 16:09 | Report Abuse

Price up, all the dumbfarks appear again too. ha..ha..!!!

Posted by losing > 2015-06-02 16:36 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4761625

Posted by happyvic > 2015-06-02 17:20 | Report Abuse

no... they only appear when it dips

Posted by Vincent Tan > 2015-06-02 18:08 | Report Abuse

ah ha, other than making such hooligan postings as "where are Ben supporters?", "Ben supporters show your supportlah", "i want to see how much money you have", and the like, do you take any other action when price fall?

Posted by Vincent Tan > 2015-06-02 18:17 | Report Abuse

it doesn't serve you any good coming to Ben forum to only infest others while you presumably do not hold any Ben share

Posted by Vincent Tan > 2015-06-02 18:19 | Report Abuse

or, you come here to cari guduh like kuku?

Posted by Vincent Tan > 2015-06-02 18:20 | Report Abuse

don't you have anything better to do?

Posted by Ah Ha > 2015-06-03 12:22 | Report Abuse

i have nothing to do but to warns small investor about this counter.
There are many fishing activities here and by doing this, it will kick those fisherman ass... unless they have facts to share rather than give misleading facts.
Did i tell that there are delay from oil and gas project and is it realized in facts now?

Posted by Ah Ha > 2015-06-03 12:47 | Report Abuse

VT, i am not sure you are one of the fisherman.
This forum are for small investor to share info / facts.
Please provide facts for all to comments on their thought.
That is the spirit of this forum.. rather than flipper that spoil the market.

Posted by VinTan > 2015-06-03 12:56 | Report Abuse

"I have nothing to do but to warns small investor about this counter."
"Did i tell that there are delay from oil and gas project and is it realized in facts now?"

Ah ha,
Ask yourself, is that the REAL reason for your behaviour here ?
cut down in capex in oil and gas industry is a fact known to everybody , and nobody needs your warning .
Ben is not the only company with business related to oil and gas, do you take any effort to warn those small investors of scomi, scomies, KNM, Skpetrol, perisai, Dayang, armada,............................................................................and many others?

Would it ever occur to you that you might have over-carried yourself with your above posting?

Posted by VinTan > 2015-06-03 13:09 | Report Abuse

" This forum are for small investor to share info / facts. "
All very well !

but I still remember
on 9/2/2015 14:05 , you wrote:
"No more bad news.Hope to sell land faster to realize the income....sure go up... no u turn "

on 10/2/2015 10:14, you wrote:
"should be TP 1.2 without any issue.no bad news and reclamation land is fully supported by johor loyal's company.... correct me if I am wrong

You sounded like MR BEAN's 'supporter' then
and now you are cursing Mr Ben and those who believe in Tg Pial story

"i am not sure you are one of the fisherman."