Posted by upsidedown119 > 2016-10-06 23:36 | Report Abuse

EPF disposed 1,953,500 Gamuda shares on 30 Sep.

Posted by excelyou > 2016-10-07 08:22 | Report Abuse

Gamuda had already expressed optimism that the negotiation can be finalised by the end of 2016, as stated in the notes to Gamuda’s interim financials ended July 31, 2016.

Thus, maybe extend for another 2 months.

Posted by hng33 > 2016-10-07 08:47 | Report Abuse

Although delay in splash deal offer no short term catayst booster to Gamuda, but, upcoming budget focus on construction theme should offer more promising catayst to stir up Gamuda share price, with immediate target to breakout RM 5.00. Remain optimistic on Gamuda and WE.

Posted by staind86 > 2016-10-07 09:06 | Report Abuse

there is another article in theedgedaily today (Selangor-SPLASH negotiation set to be extended). It is about Ongkili said Selangor-Splash should negotiate until an agreed price and Selangor has not officially relay to Putrajaya about the agreed value for Splash. Something similar to what other forumers have posted yesterday night. Nevertheless, the article mentioned about optimism for agreement and possibility of delay for few more months.

If you want to read but do not have subscription, you can read it using KLSE Screener apps. The article yesterday (Putrajaya mum on funding for Splash) was available on News tab for KPS. So, it is possible this article will be available too later today.

Posted by hng33 > 2016-10-07 09:48 | Report Abuse

hahahaha, spinner upsidedown119....can't understand what is associate !!?? any stake below <50%, but above >20%, only can account share of profit through their equity stake in P/L....IT CANNOT BOOK splash book value in gamuda book, balance sheet or NTA.

You better go back to school to re-study first before comment lorrrrr

Posted by hng33 > 2016-10-07 09:58 | Report Abuse

....Sources familiar with the negotiation between Pengurusan Air Selangor and SPLASH had said the latter was willing to take a slight discount to its latest equity value. But Ongkili yesterday said Selangor had yet to officially relay to Putrajaya the agreed value for SPLASH.

“They (Selangor) must inform us officially how much the deal is, and it is for us to think about how much we can help,” he said.

One of SPLASH’s shareholders, Gamuda Bhd, had already expressed optimism that the negotiation can be finalised by the end of this year, as stated in the notes accompanying Gamuda’s financials for the fourth quarter ended July 31, 2016......

Posted by hng33 > 2016-10-07 10:01 | Report Abuse

...Ongkili took a softer stance yesterday by reiterating that the price for SPLASH’s assets should be fixed on a willing-buyer, willing-seller basis...

Posted by hng33 > 2016-10-07 10:04 | Report Abuse

hahahhaa, now, even more confident on splash deal to value at around 1x book value

Posted by shafie > 2016-10-07 11:03 | Report Abuse

when announcement budget2017 ?

Posted by 张天师除妖 > 2016-10-07 11:35 | Report Abuse

难得在公众免费网站看到如此好的文章，因为文章有提到Gamuda, 所以特地过来给大家分享，别生气哦：

EKOVEST: The Next Big Thing & Great Upside Potential (+84%) (Part 3)
http://klse.i3investor.com/blogs/wealth123/105946.jsp

Posted by Huat1 > 2016-10-07 11:58 | Report Abuse

As we all know, Gamuda is heavily influenced by "institutional investors". The recent sell off by these constitutional investors have affected the share price and its trend. Retailers can only "flow with the trend" (because you cannot win this battle) or will have to suffer the consequences.

Posted by hng33 > 2016-10-07 12:17 | Report Abuse

A very simple accounting policy

1. Holding company if control another company more than 50% stake, it can consolidate these subsidiary company book value in its own book value. eg. Bjcrop control 72% bjland

2. Holding company if control another company more than 20% but less than 50%, it can only account its earning based on its effective stake in these associate company. e.g DRB control 32% in Honda, 32% in POS, under Drb financial result, it only account its share of profit based on its stake.

3. Holding company if control another company less than 20%, it can only account any declare dividen by these company as profit.

Posted by linges > 2016-10-07 12:19 | Report Abuse

:))
learned something new today

Posted by hng33 > 2016-10-07 12:22 | Report Abuse

In Kps financial result, almost all its entire profit is attributed by its associate company, 30% stake in splash and small profit others.

In Gmauda finanaical result, under its concession earning division which then subdivided again into associate concession, these associate concession contribute about RM200m pa. These associate concession are profit sharing from its 46% stake from litrak and 40% stake in splash.

Posted by hng33 > 2016-10-07 12:36 | Report Abuse

About the splash operation, please bear in mind, splash is concession holder and splash jointly control by splash board of directors form by respresentivate from its 3 shareholder, Gamuda, Kps, the sweet water. Splash executive chairman is tan sir Amin from sweet water shareholder, which have effective stake 30% in splash.

Gamuda is through another its own subsidiary, Gamuda air, which is 80% control, have appointed by splash to operate and maintenance all its water treatment under its concession.

Posted by hng33 > 2016-10-07 12:45 | Report Abuse

In short, splash is just another unlisted private concession company. It have its own balance sheet, book value etc. for its water treatment plant operation and maintenance, splash appoint Gamuda air as contractor to operate all its water treatment.

Splash is jointly control by 3 shareholder, in which Gamuda control 40% in splash, being a associate, therefore Gamuda only account splash profit based in its equity stake. It cannot book splash book value to its own Gamuda book value now.

Posted by hng33 > 2016-10-07 12:53 | Report Abuse

upsidedown119, spinner don keep spining your idiot loser mind here....lollll

Posted by hng33 > 2016-10-07 13:17 | Report Abuse

hahahha, Kps account splash dividend instead of profit sharing.....hahahaha .....idiot ..upsidedown119

Go back and do some simple homework and read again Kps financial result under infrastructure....Kps profit RM 35.4m in q2 is due to share of profit from associate company and these amount of profit is almost entire Kps profit for Q2 result.

Posted by hng33 > 2016-10-07 13:21 | Report Abuse

Never come across such stupidity and yet stubborn person before.....too bad to you-----> upsidedown119

Posted by Invest666 > 2016-10-07 15:55 | Report Abuse

和气生财 =)

Posted by upsidedown119 > 2016-10-07 16:27 | Report Abuse

hng33. I have rechecked. You are right! I was looking at the other KPS (9121). Thanks.

Posted by hng33 > 2016-10-07 16:29 | Report Abuse

upsidedown119

of course, a proper discussion and exchange view is useful, but, the fact is that you just keep fake information here to confuse and your selfishness and stubbornness render you a clear spinner up-side-down with very BAD motive....THUMP DOWN ON YOU


FACT information: Kps LATEST profit RM 35.4m in q2 is due to share of profit from associate company...and these profit is fully reflected in KPS EPS and increment in its NTA. These accounting practice NEVER change at all


FAKE information by upsidedown119: KPS only account for Splash declared/paid dividends and not its 30% share of Splash's yearly profits....I have checked KPS audited accounts for Y/E 2014 (latest available). KPS did not book its 30% share of Splash profits in its accounts.....

Posted by upsidedown119 > 2016-10-07 16:42 | Report Abuse

Thanks hng33. There was no intention to "fake". It was an innocent mistake. I was wrong-footed by the name 'KPS Consortium' instead of looking further down at Kumpulan Perangsang Selangor in the KLSE site. But thanks for the info. I deserve your 'Thumbs down' and probably more. Sorry Gamuda forummers for the mistake!

Posted by rogers123 > 2016-10-07 16:51 | Report Abuse

Hng sifu....U r the BEST

Posted by hng33 > 2016-10-07 17:04 | Report Abuse

Bear in mind, splash already in business for last 15 year, Splash yearly profit need to subject gov income tax 25% of its gross profit to arrived net profit yearly, which mean fed gov already over last 15 year cumulatively derive income via taxed on 25% on splash gross profit yearly.

The quarterly and yearly net profit of splash is account and record to be share by its 3 shareholder via profit sharing in accord to their effective stake.

Splash have its own independently book value, in which aside splash have original equity fund which were contributed by its 3 shareholder (gamuda, KDEB/kps and the sweet water). Splash being a concession holder, it can easily gear up by its own. Splash in actual only need just small equity funding as its seeding capital, as its concession 30 year validity granted by gov already give it very high credit allow it to gear up significantly through bond issuance to fund initial water treatment construction plant and then repay back gradually later once these plant ready operate.

Therefore, in real situation, any profit from splash is actual first need to payout to bond interest, repay bond principle capital, fed gov tax rate 25%, then, only can arrive net profit to be share later by its shareholder.

Posted by Jon Choivo > 2016-10-08 00:09 | Report Abuse

I think the delay is a good thing, the more they delay, the more likely the deal will go through, since it shows that the govt is reasonable and some productive conversation is going on.

Posted by Treasure_stalker > 2016-10-10 00:19 | Report Abuse

could anyone enlighten me as to why the sale of splash is good to Gamuda?

Posted by Huat1 > 2016-10-10 12:02 | Report Abuse

CIMB INVESTMENT BANK
NEW TARGET PRICE FOR GAMUDA = RM5.97


Water Treatment & Services
Not seeing any Splash for now

■ The 7 Oct deadline to crystallise the sale of Gamuda’s Splash will be extended.
■ Not a huge surprise given the lack of progress of late. End-2016 is the next hurdle.
■ Gamuda is direct beneficiary of the water restructuring theme.

Gamuda’s Splash deal needs more time
● According to Financial Daily, the discussion between the Selangor government and Splash on the takeover of the latter's water concessionaire will be extended beyond the 7 Oct deadline. Energy, Green Technology and Water Ministry have given the green light to extend the deadline until the two sides can come to a mutual agreement on the price of Splash’s assets. This could take a few months. We see this as a slight
negative for Gamuda but not a big surprise given the lack of progress of late.

Still far from invoking Section 114 of WSIA
● Although there has been a valuation conflict, as indicated by the last rejected offer of 0.1x P/BV (RM251m), the invocation of Section 114 of the Water Services Industry Act (WSIA) (i.e. compulsory acquisition based on national interest) is still a far-fetched scenario, in our view. Gamuda's recent guidance hints at a more palatable valuation for Splash, with end-2016 as a more realistic time frame for the parties to come to an agreement, in our view. Splash’s current book value is c.RM2.8bn.

Selangor state needs funds to buy Splash
● Financial Daily highlighted that the issue, at present, is that the Selangor state government needs funds to acquire Splash. In its last water asset takeover, RM1.6bn from the federal government was used to acquire Puncak Niaga’s two water operations. In the case of Splash, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili was quoted as saying that Selangor has yet to reveal the new valuation for Splash.

Selangor still appears committed to a resolution
● It appears that end-2016 is the next hurdle for the revival of the water restructuring theme in Selangor. We believe there is still a strong conviction from the Selangor government to finalise the terms with Splash, given that it is the last water asset in the state to be acquired. Air Selangor CEO Suhaimi Kamarulzaman in Jun said the company has two options: 1) convert into a licenced operator after acquiring Splash, or 2) sort out the licence prior to the buyout while Splash remains a concessionaire.

Water restructuring newsflow in Nov-Dec?
● We retain our Neutral call on the water sector on the back of persistent delays in Selangor's water restructuring. For exposure to the recovery of the water asset sale theme, we continue to like Gamuda given the cash proceeds from the divestment of Splash (RM1bn-1.2bn, assuming 0.9-1x BV price tag).

Posted by limiklimik > 2016-10-10 16:59 | Report Abuse

TP: RM5.97. How I wish it will be this month.

Posted by stockistlearner > 2016-10-10 18:13 | Report Abuse

rm5 also not bad already...

Posted by limiklimik > 2016-10-10 20:34 | Report Abuse

true true....I think Garuda has low blood pressure lol. Need some stimulation to get price up.

Posted by fast888 > 2016-10-11 17:56 | Report Abuse

Should go up soon

Posted by Stephen Chow > 2016-10-12 02:22 | Report Abuse

yea Garuda very much a bird that dont fly now

Posted by Myeye > 2016-10-12 09:16 | Report Abuse

steady la, no worry at all :>

Posted by money888 > 2016-10-12 09:42 | Report Abuse

still hold? wait for budget 2017?

Posted by Ultramen > 2016-10-12 09:58 | Report Abuse

because kyy and otb didnt push hard recently. :)

Posted by upsidedown119 > 2016-10-12 17:23 | Report Abuse

kyy and otb push hard? Hahaha!

Posted by HuatRex > 2016-10-12 20:39 | Report Abuse

Collect on weakness

Posted by upsidedown119 > 2016-10-13 16:42 | Report Abuse

Support is at 4.75. Reasonably strong support between 4.65 and 4.75.

Posted by fast888 > 2016-10-13 17:45 | Report Abuse

What exactly made gamuda weak now?

Posted by upsidedown119 > 2016-10-13 17:56 | Report Abuse

Disposals by ASB and EPF are part of it.

Posted by hng33 > 2016-10-14 14:50 | Report Abuse

hard rock bottom reach, due to rebounding back

Posted by hng33 > 2016-10-14 14:52 | Report Abuse

Gamuda remain top construction blue chip with high earning visibility growth element

Posted by hng33 > 2016-10-14 15:41 | Report Abuse

For Gamuda = blue chip + growth stock

1. Current concession business division continue deliver steady profit, contribute 55% of gamuda profit or about RM440m, with 3/4 contributed by its highway concession (70% kesas, 30% sprint, 50% smart, 46% litrak which control 100% LDP, 50% sprint), and another 1/4 profit contribution is from its 40% stake in splash water concession

(remark: Gamuda highway alrdy secure overdue toll hike for LDL, sprint, and smart last year, its another concession, kesas highway is due for toll hike these year and LDL also on scheduled also entitle another round of toll hike these year)

(remark 2: splash concession is now under ongoing divestment process, management expect to reach amicable solution by year end)


2. Construction: secure PDP for MRT2 which allow gamuda to earn 3% management fees + tunnel underground work + pan boneo highway = lock in project and ensure earning visibility for next 4-5 year


3. Property: diversified into different market, vietname, Singapore, Australia + local = lock in more than RM 1.8 billion unbilled sale = ensure next 3 year earning visibility.

Posted by hng33 > 2016-10-14 15:58 | Report Abuse

Institutional fund especially ASB already selling its stake till tail end to just 5% alrdy. If ASB still wan retain a substantial shareholder, it have to stop, otherwise, it will just end up ease to be substantial shareholder for these giant top blue chip in construction sector : Gamuda

In additional, The scheduled toll hike these year are LDP, KESAS and highway under PLUS including : NSE, MSSL, ELITE, BKE, Seremban-Port Dickson Highway and North Klang Straits Bypass Expressway.

Since now its about year end, If gov finally granted and approve toll hike, Gamuda will be major beneficial due to its high exposure in KESAS, control 70% and also LDP through its control 46% in litrak

Posted by staind86 > 2016-10-14 18:35 | Report Abuse

ASB ceased to be substantial shareholder in today's announcement.

Posted by upsidedown119 > 2016-10-14 18:56 | Report Abuse

Yeah, under 5% with another disposal of 3,057,700 shares. I wonder why.

Posted by newbie92 > 2016-10-14 19:06 | Report Abuse

Funny this ASB,sold so much to support ajib counter?

Posted by hng33 > 2016-10-14 21:39 | Report Abuse

Yup, ASB alrdy ease to be substantial shareholder, it's stake already below 5%, any further disposal will no longer report in bursa anymore.

But, judging from today small Gamuda share trading volume, selling pressure have ease off. But, have to wait more trading day to monitor if anymore unusual surge in volume next.

Anyhow, upcoming budget should be good for property, construction sector + expected toll hike to be granted by gov for Gamuda Kesas and LDP.

Fundamentally, Gamuda is still top blue chip with high earning growth visibility.

Posted by staind86 > 2016-10-14 21:41 | Report Abuse

Saw there is rumor toll hike on Nov 16 in some forum. Not sure it is true.