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......
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AlphaBetaGamma
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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!!