tomato, doesn't mean anything... unless they sell it out once it's listed.... maybe directors know that price will move up pretty soon so they convert their ESOS shares and will cash out later
So long there is still negotiation between Fed gov and state gov, water restructuring is still in progress. Any positive development will serve as catalyst to spur share price
lol, that one for sure la... this week raya we all know slow week dy any estimates? at least hng33 mentioned within 2 months which is the extended S&P duration
Published: Monday August 12, 2013 MYT 8:58:00 AM Updated: Monday August 12, 2013 MYT 9:01:09 AM Trading ideas: Puncak Niaga, KPS, Destini
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects Selangor-based water-related stocks like Puncak Niaga and Kumpulan Perangsang Selangor to possibly be in the limelight on Monday.
It said a news report stated a breakthrough with the federal government is on the cards to resolve matters pertaining to the consolidation of water assets in Selangor.
KPS share dampen by ESOS share, once these so-call appointed director clear their ESOS holding, KPS share should continue uptrend especially once the EGM is fixed and spcial dividend of 26.6sen is confirm and approve by shareholder
hng33, Puncak has a good chance of bagging more T&I jobs from PETRONAS and this had not been factored into its valuation. Puncak may possibly surprise more on the Upside relative to KPS 26.6 special dividend payout which has been partially reflected in its current stock price.
K Perangsang - Trading at a 57% discount to break-up value Source: AmeSecurities
We expect Kumpulan Perangsang Selangor Bhd (KPS) to realise its latent value following renewed talks for the acquisition of water assets in Selangor. After applying a 40% discount to KPS’ NAV of RM4.23/share, it has an implied value of RM2.54/share.
- Along with our upgrade of the water sector from NEUTRAL to OVERWEIGHT, we believe there will be further upside for KPS if the water consolidation exercise follows through.
- Our break-up value of RM4.23/share takes into consideration KDEB’s last takeover offer for KPS’ water assets, the sale of a 57% stake in Kumpulan Hartanah Selangor Bhd (KHSB) to KDEB for RM213mil, and KPS’ remaining assets and businesses (see table 2).
- If the last offer still stands, KPS is set to gain RM1.5bil from the sale of its stake and assets (assuming net liabilities) in SPLASH and Konsortium Abass. KPS currently holds a 30% stake in SPLASH and a 100% stake in K.Abass (via 91% unit Titisan Modal).
- Note that the group is also currently disposing of its 57% stake in KHSB to KDEB for RM213mil cash or 83.6sen/share. KPS would pay out 46% or RM99mil of total proceeds as special dividend or net 20sen/share to KPS shareholders, implying a yield of 11%.
- Following the two disposals, KPS might look at new core businesses in the future as it would only be left with its hospitality, O&G, and telco businesses.
- However, its telco and O&G (on an associate level) are still loss-making and earnings visibility is still uncertain. Meanwhile, its hospitality business (three hotels and one golf course) recorded operating loss of RM6mil last year.
- KPS is also redeveloping its Templer Golf Club with SP Setia into a mixed development. KPS will get a sum of 13% of gross sales value of RM1.1bil or a minimum payment of RM140mil.
- Note that prior to the 12th GE in 2008, KPS received the mandate to spearhead water consolidation efforts in Selangor and to build Langat 2. It is still uncertain if the mandate still stands as KDEB indicated plans to form an SPV to manage the take-over while three other contractors were shortlisted to build Langat 2 in March.
- If KDEB were to form an SPV, KPS will no longer hold any water assets or the license to operate and maintain them. If the original 2008 were to follow through, we might see a rerating catalyst for KPS.
- KPS is currently trading at a 57% discount to its NAV of RM4.23/share.
Key issue here is KPS future earnings visibility is poor as KPS does not have ready core assets that can generate good EPS to grow its share price after the restructuring exercise had gone through. KPS is nearly at full value right now. Puncak may possibly have the edge in earnings upside in the future.
If KPS divest all water assets, namely 91% stake in Abbass and 30% stake in Splash, it will become cash rich with net cash per share more than RM 4.00, or more than double than current share price of just RM 1.88. KPS will very likely declare another round of special dividend, to benefit its largest shareholder KDEB.
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cherry tomato
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Posted by cherry tomato > 2013-08-02 15:12 | Report Abuse
ESOS 830,438 shares again next tuesday 6 Aug. good or bad news?