Azmin is still mum on this issue. I think their book must be very fishy.Spending too much time to determine the value of the assets.It is very unusual commercially
If it is so simple, then Azmin and the panellists to decide the offer price are damned poor and did not fit to sit on the board.Ask them to resign immediately
Yes..splash is a cash cow....It came Kdeb( all my dividend over the years came from splash) my associates following pipe replacement submission to Span indicate the next kps cash cow will be projects from pipe replacement expected to take 15 years ( 10--15billion)
Conclusion of Splash deal is a bonus. Anyway, Splash remains contributing about RM 120 million profit to KPS....so PER is very low at current share price.
Najib will Not allowed Splash to hang around (got to be Done )...Langat 2 is set to complete--- water tariff Must be Set next year Or else Paab will go bankrupt --with Old Rates Or Worst Azmin will refuse to pay(just like Syabas) and drag Paab to the Ground
The recent price already proof that this splash deal still pending . Maybe is the offer price still below the bv . I will waiting to drink shark fin soup .
Soo many water contamination issues pop up recently in Selangor .Residents of Selangor are the victims.If Azmin does not settle the issues promptly,he is no way can be the mb of selangor next term
I can't comment on the share price movement (not a technical chart expert) but in terms of fundamental, i think this stock is highly undervalue.
Here is the 2 scenarios to why i think it is undervalue:
1) Assuming that the splash deal would go through @ around 1xBV, which values Splash at around RM2.8bil (this is of end 2015. It should be around RM3.1 bil given the earning that splash will be generating for 2016), this would translate to around RM840mil cash for KPS or RM1.68 per share. That's already 30% above current market price. This does not include the other profitable businesses like Sprint, NGC Energy, King Koil, Aqua Flo, Century Bond etc.
2) Assuming the deal will be delayed. KPS is generating a steady PAT of around RM110mil (at least) from their current business (Splash, Sprint, NGC Energy, King Koil, Aqua Flo etc). Adding the 15 mil from Century Bond PAT, total recurring PAT is expected to be around RM125mil/ year. At current market cap, this will only translate to a PE of 5.1x which i think is relatively low...
Feel free to comment. Would like to get your views on this. Thanks.
Why do you think that the first scenario is unlikely? From my understanding Gamuda and Tan Sri Wan Azmi (of Sweet Water Alliance) are unlikely to want to dispose Splash if the price is to low compared to the Book value. This will result to a loss of disposal in their P&L which might effect some of the debt covenants of the companies (Gamuda in particular). I also don't think Gamuda will get the shareholders vote if they decides to dispose it at a much lower price to the book value. Maybe you could share with us your thesis?
The second scenario is actually given. Basically it is the current recurring profit of the company. Not sure what you mean as it being unlikely. Maybe you believe that the businesses under KPS will record lower profit? If so, maybe you can explain a bit further.
i mentioned before offer is 1.5 billion but only for KPS and Sweet Water...Gamuda --let Umno deal with them bcoz Gamuda refused ( no latest news--blackout )
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traderman
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Posted by traderman > 2016-10-26 00:04 | Report Abuse
luckily 0.1 book value