I personally find Bones's article logical, make sense...
1) NTA = RM2.60
2) Awaiting SPLASH deal to conclude - any time soon. IF they (together with Gamuda) can get the deal at 1x book value = KPS potion is RM450MIL!
3) Last year KPS bought over Cenbond and privatised it. Cenbond is Malaysia leading corrugated paper products. Cenbond is having a factory in Nilai, very close to KLIA.
Alibaba is setting up its regional distribution hub in KLIA Aeropolis.
So KPS should benefit from this packaging service segment of e-commerce.
We can see that these supporting businesses of e-commerce shares already flying lately.
Btw, major share holder of KPS is the Selangor state government (indirectly). Election around the corner....
2) Awaiting SPLASH deal to conclude - any time soon. IF they (together with Gamuda) can get the deal at 1x book value = KPS potion is RM450MIL!
If 1x book value, the offer price will be at least RM2.7bil. KPS has 30% in SPLASH which means KSP wil get RM2.7bil * 30% = RM810mil instead of RM450mil.
Not sure if the offer is for equity or include liabilities
There are 3 projects that will blast kps to 5.0......1) splash 2) Jack Ma 3)NRW ( 6-7 billion over 10years period(selangor only)---really big ticket item----80-90% pipe replacement will be 1inch to 8inch pipes almost covered by Kps (smartpipe technology--- plastic pipe) I think Kps will start manufacturing of this plastic pipe once they have money from Splash For me, dividend is Not important, but future earning is very important ( one ringgit is only worth 0.30 in analyst valuation)
a very good example where Cash is worth only 30% in analyst valuation is Puncak (roger123 favourite playground) After cash distribution puncak stand at 1.70....now below 1.0....(of course rozali is really a BN man---every tactics reflect his beginnings )
During Khalib Ibrahim tenure, there is a Kps Director who wants combine Taliworks and Kps together and turn it into a Blue Chip company ( value at RM7-8 ) But a quarrel broke out bet. Khalib and he resigned......Bring him back(forgot his name), Kps will become a Blue Chip bcoz kps got so many more projects then previously......
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....
AlphaBetaGamma
190 posts
Posted by AlphaBetaGamma > 2017-03-21 10:14 | Report Abuse
Oh, went up due to the Alibaba news, nothing to do with Splash. Looks like KPS running on two fronts now. Way to go!!