Cheap....so what is cheap? Splash will Sue Selangor Gov (owner of Syabas) 4.0+ Billion for Unpaid Debt (account receivable ) Gamuda lawsuit (splash) already lodged in ShahAlam Court
Minister of Water/Land (Xavier Jayakumar) doesn't understand Splash Deal ( Just Talk only) Azmin (Economic minister/ former Selangor MB) had the FULL picture----- Anyway it is Water Rate and Paab Loan that matters------Water Rate controls Loan Size.-------
CGSCIMB Research; The Edge Financial Daily; July 05, 2018 11:15 am +08; 1) "We expect a new takeover offer by Aug 4 valued at at least 0.8 times P/BV, considering the possibility of a haircut or discount, as mooted in the past." 2) "If the SPLASH deal is successfully concluded, we believe this will pave the way for long-delayed structural changes in Selangor’s consolidated water operations, the roll-out of backlog water capital expenditure (pipe replacement, non-revenue water reduction and new water treatment plant capacities) and a full-cost recovery model possibly through a scheduled water tariff increase. This will address the cash-flow deficit and unpaid receivables along the entire water treatment and distribution supply chain."
Increase in water tariffs? Nah, not politically doable, except perhaps for commercial use. But increase in cost will flow down to the local consumer. The cash-flow deficit is due to very very bad management because of UMNO political appointees. Get rid of them and employ professional managers and Splash will have a cash-flow surplus.
Xavier Jayakumar confident of solving Selangor water issue
"I think this issue can be settled. We are going to push everyone to make sure that this objective is reached within the 30 days after I got the extension approval from the Cabinet meeting yesterday (July 4). "I'm not going back to the Cabinet to ask for another extension so I'm very confident that we will handle it within this one month," he told reporters at the press conference during his site visit to Langat 2 water treatment plant today.
As the Selangor Government is looking to resolve the SPLASH issue by next month.
This news is certainly positive to SPLASH shareholders which is KPS and Gamuda. KPS owns 30% while Gamuda owns 40% and the remaining 30% owned by a private company, Sweet Water Alliance.
Key issue in SPLASH was the valuation. Back in previous MB time , Tan Sri Khalid Ibrahim offered SPLASH shareholders at a valuation of only RM250m, which represents less than 0.1x book value of SPLASH.
This is too low as compared to offer of other water assets in Selangor such as Puncak Niaga Sdn Bhd (PNSB) and Konsortium Abass (ABASS) at 1.0x BV. Of course SPLASH shareholders rejected the offer. Till then no deal has been made between Selangor state government and SPLASH.
SPLASH book value worth RM3.3b.
Currently SPLASH’s book value worth RM3.3b. At 3.3b book value, KPS’s 30% stake in SPLASH is worth RM990m. This is equivalent to RM1.84 of KPS per share. More than current share price of KPS
The concern is now whether Selangor state government can actually pay at 1.0x book value. Well, if Selangor State Government wants to be fair, they need to offer SPLASH shareholders similar valuation as what they offered to PNSB and ABASS.
Investor's key concern (i.e. politics) has now been removed. The federal government and Selangor state government is now in the same party and it is believed that the takeover issue will be resolved smoothly and quickly.
KPS’ business and fundamentals remain solid under strong management and has been acquiring good and stable companies that are already generating steady income in the various sectors namely: - Century Bonds, market leader in industrial packaging, - CPI (Penang) Sdn Bhd, fully integrated EMS provider, and - 60% stake Kaiserkorp Corporation Sdn Bhd (“Kaiserkorp”), a license holder of strong brand Kingkoil.
In a nutshell, investors should seize this opportunity given the fact that KPS is a direct beneficiary of soon-to-be resolved SPLASH issue. Finally, KPS’ value that trapped due to SPLASH finally can be realized soon. Technical wise, KPS is currently in the bullish trend which can go beyond RM2.11/share based on monthly chart.
JJchan: Last time ur monkey story, sahrking from the tree, kps crashed from 1.70++ to 1.20++. Now ur shark story, cornering the price at 1.93, will kps fall from 1.97 to ???. Hahaha. I like ur story. Well done! Kps soon back to one. Hahahaha
KPS gained 9 sen yesterday (+4.81%), accompanied by above-average trading volume to close at RM1.96. Chart-wise, the stock has been on a rally after it broke out of a descending wedge pattern since mid-May. However, we think that the stock is overextended, given its steep rally and that a retracement is likely to happen soon. Both the RSI and Stochastic are currently at overbought levels and the stock may seems possible of eventually retesting RM2.29 (R1) based on Fibonacci projection. Keen investors can time their entries at support levels of RM1.75 (S1) and RM1.58 (S2). <--- 1.75 and 1.58 soon
Latest Update: - 1) MB said the price of Splash already fixed. 2) Offering to Splash's shareholders soon. 3) Deal will be done within deadline set. 4) Monday fly!!! MB: Nilai SPLASH sudah ditetapkan, kepentingan rakyat keutamaan SELANGOR July 7, 2018 9:10 am https://selangorkini.my/2018/07/mb-nilai-splash-sudah-ditetapkan-kepen...
Since the offer price for Splash is unknown to the public, the trading of Gamuda and Kps should be suspended on Monday and the following days before the announcement of the offer price to avoid insiders trading
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 717 views | 4 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 14008 views | 12 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
upsidedown119
4,326 posts
Posted by upsidedown119 > 2018-07-04 16:28 | Report Abuse
Unlikely RM2 today.