Tun M said this country have to go back to basic. Ground zero. Start with water first. He give instruction to Azmin faster takeover splash. This issue must be closed this year in July.
KPS is fundamentally a very sound stock, well-diversified with a current earnings of easily 18 cents, supported by a strong NTA of RM2.75. Based on a PE of 15 times, the stock is worth RM2.70. Coupled with SPLASH sale (30%), the company should rake in RM800 mil or RM1.60/share, meaning the share is worth RM4.30.
Going forward, Smart Pipe & Aqua Flow (both subsidiaries in water related businesses) would be ideal and experienced platforms for KPS to undertake inhouse maintenance, rehabilitation and water treatment jobs. With a large pool of water related contracts (consolidated from previous acquisitions of PN, Syabas, Abbass, Langat-2 and potentially SPLASH), KPS stands to gain substantially from rehabilitation, and maintenance contracts from Selangor state government. This would provide a regular and sustainable earnings for KPS.
Even with Open Tender, this proprietory trenchless technology of Smart Pipe provides a quick and low cost solution for KPS to undertake difficult rehabilitation and pipe replacement works all over Kuala Lumpur, Selangor & Putrajaya. These contracts are worth more than RM5.0 bil over 10 years. KPS stands to benefit substantially from these jobs. Water pipe rehabilitation contracts from other states are also available for competent and technology savvy companies, like Smart Pipe to undertake. Therefore KPS is a cheap entry for a utility stock.
The forthcoming SPLASH announcement in July '18, would provide a good springboard for KPS to rally to a higher level. Post SPLASH deal, KPS would enjoy a good sutainable earning base going forward.
Is this news former MB hundreds of millions of ringgit in several overseas accounts real ? If real, it will affect the water restructuring. https://toyolofselangor.wordpress.com/
The major stumbling block for Splash Deal is Water Rate.( previously under BN) Azmin refused to pay higher rate to Fed---Paab ( different party )-----Now State and Fed all under PH
Azmin managing all those GLCs and GLICs. It will show whether he has real abilities or not. If not, there is still LGE and other DAP talents around to help him.
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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....
rogers123
4,017 posts
Posted by rogers123 > 2018-06-23 16:11 | Report Abuse
All dreamers like Jjchan. Shaking the monkey from the tree. At the end he was shake down from the tree. 1 time book value is impossible.