KPS (aqua flow) used to receive about 150--200mil of water treatment Chemical purchase Order from Air Selangor. Now with 2 Water Treatment Plants ready in 2023-4, water treatment Chemical Orders from Air Selangor will reach 500--700mil per year. I think Post-Covid will see Water consumption in Selangor to run from 20--25% increase per year which means by 2030, Air Selangor needs another 2 Water Treatment plants due influx of Indonesia and Bangla in Manufacturing Sectors
With such Lucrative Orders in Hand, i can see some itchiness to take KPS private. Given Asset in KPS valued 3 times current Cap and small outstanding Shares (less than 150mil shares including top 30 holders )
Selangor Gov is always very fair when they want to take any asset private. KHSB taken out in 2013 from KPS ( 59-60% ownership), i got 75--76cents / share. Splash sold to Air Selangor, i got about 37cents dividend, KPS used Balanced proceed to buy CPI and Toyo ( now combined worth atleast 1.50 if listed ) There are many Con-CEO that will squeeze every cents out of shareholders if they want to take Co private, but not Selangor Gov-----That is the reason i held KPS for more than 12year or more ( i cannot remember exact time frame---maybe more)
Jjchan bro, fully agreed with you! But you’ve missed out one point, where all those good things are from the previous MB Tan Sri Khalid, after fell into the stupxd idoxt greedyman Amin, all good scenarios changed!!! Price started sliding from Rm2++ until now!!! Up to date, still can’t see any good things coming out from this new MB. And i heard right now, all projects or tenders are fully controlled by Darul Ehsan S/B???
———————————————————- JJchan Selangor Gov is always very fair when they want to take any asset private. KHSB taken out in 2013 from KPS ( 59-60% ownership), i got 75--76cents / share. Splash sold to Air Selangor, i got about 37cents dividend, KPS used Balanced proceed to buy CPI and Toyo ( now combined worth atleast 1.50 if listed )
Highway concession( built and operate) is very similar to your House Mortgage. First you have equity basically the Total Cost to build Sprint Highway which around 950mil and then for next 15yrs or so you have to Collect Toll to pay Bank Interest, Highway Maintenance and "make reasonable Profit" for your Time and Investment. During BN-Era, investment highway profit is around 8--12% ( IPP gets 30% during Mahathir era) Anyway All this "foreseeable profit" are generated by Number of Traffic. However as Data given, most Highway Operator cannot cover the Equity portion even after 10years Operation. And They have to pay back Bank Loan in say another 5-7yrs. So what they do is to "Increase Toll by as much as 60% " in last 5 years. This a consumer Trap bcos people built their Houses, factories, Schooling, Tuition Centre along the Highway. No Public Transport can replace this locations and worst still families already Bought 2 Cars. What Gov Takeover Sprint Equity 950m will mean KPS can repaid 190mil Bank Loan (20%) but still has 5--7yrs to Collect Toll rate as of 2022 ( still in nego...not confirmed yet ) Of course KPS will receive as Huge Cash pile ( no need to pay back bank yet )---Maybe give some dividend bcos most Corporate accounting allocate Equity Repayment from day One ( meaning they start saving Bank repayment in a sinking Fund ) KPS do has a Huge Cash Account in its Books
Gov estimate at current Toll rate ( Sprint worth end of concession) is 1.80Bil And Gov pay off Bank Loan for KPS ( 190m Now) KPS extra cash flow from Sprint for next 5yrs is about 40mil ( give or take Traffic Vol. ) Good Deal or Not-----For me it is Okay bcos can confirm Loan Payment. Now KPS has future cash about 200mil plus own sinking Fund proceed which can be used to buy new Company( some dividend for us ) All in, accumulated Cash from Sprint should be 350mil---400mil for KPS management
Chan always painting too good pictures but until now prices say otherwise. I shall wait and see. I only believe 50% of the very beautiful painting here. It all end up with this management, how they treat shareholders here. I long neckkk for 2 years al ready.
with 190mil after ALR deal is completed, KPS should distribute 50% proceed back to shareholder Or 80mil which about 15cents. That will make me very happy.
DonT listen to JJ advise. He buys shares for 3--15years. You and me buy for 15days at most. How can we listen to him. You are better off following YKK advise, he goreng and cabut in 15-30days
give u 15c so what? share price adjust 15c lower n stay there/ drop further down for months/years until next catalyst come :D this is the characteristic of KPS
1Q22 Results will enjoy robust up grade due to massive increase in plastic and Electronic parts Orders from China as GuangDong is rumour to facing ShutDown( yesterday news) after Shanghai
Roger, please don't talk cock. If you don't own any KPS shares please shut out yourself from this forum. If not, a lot of people will be cursing you. Can you withstand a spit each from everyone of us?
Most co will report weaker quarters in May due to spike in raw material price, KPS no spare from it. Insider using this opportunity to sell before bad QR release
obviously now is best time to buy but this joker Roger talk non sense... so many good news manufacturing biz ie kingcoil mattress strong demand, new contracts on hand, highway concession can realise to cash with 100% profit and etc..
Sprint only contributes 12mil to the profit and if the payment received it fully use to pay debt, it will reduce the interest cost. So divesting Sprint does not affect KPS much. Initially I thought it will be the similar case like Puncak those day which it slaughter the the only goose that laid the golden egg but KPS is kinda different case. Furthermore, if interest rate were to rise, then pare down the debt will be ideal. What I most concerned is cost of material, the cost of shipping and cost of labor. All of this has risen a lot and how much can it be pass onto the consumers.
Most of KPS profit from Toyoplas and CPI, which is EMS. EMS tends to have very thin profit margin, 5% or lower, (SKPRES AND VS has higher profit margin probably due to the product they assemble) when raw material increase a lot, EMS company will easily turn into HUGE LOSS ! Warning has been given !
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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....
roger3210
4,954 posts
Posted by roger3210 > 2022-04-05 09:11 | Report Abuse
gg, up so little. better sell b4 it go back to 70c