When POIC lahad datu and sandakan both are running full fledge, you can bid goodbye to Suria’s earning. The directors are very quiet on this. Takut lah siol. Hahahaha. 70 cents possible. Maybe 60 also can go.
You may say that the dividend is good, ini good itu good. But when reality kick in, you realize that its much better to let your money sits in 2% fd rather than suria.
Poic is a direct competitor, not a complement. You may check what POIC offers. Unless one day Suria come up and say they gonna acquire POIC bla bla... but it won’t happen. Not for now. Taiwanese is holding certain % is Poic.
Poic is Palm Oil Industrial Cluster (POIC). The current Poic is new 28++ acres development of palm oil processing industries with port facilities.
Suria Capital has 4 main business segments, one of them is port operations which operate under subsidiaries Sabah Ports Sdn Bhd. SPSB main revenue is from 7 ports and 1 oil terminal. One of SPSB ports Lahad Datu Port is serving existing developed palm oil industries.
Poic Lahad Datu ports facilities is meant to support industries under the new Poic development while SPSB Lahad Datu ports facilities is serving existing Lahad Datu developed palm oil industries.
These ports are not meant to compete with each other.
Suria Capital major shareholder is Warisan Harta Sabah (Sabah State government investment arm) while POIC is setup by Sabah state government to attract investment to Sabah.
The recovery of crude palm oil production in Sabah will benefit Suria ports operation. http://bepi.mpob.gov.my/index.php/en/production/production-2020/produc... There are some disruption of palm oil production during MCO, however the production todate is not much difference from last year amount, while the average selling price is higher which mean there are demand.
Suria earn average 50mil a year and now fall back to old gov hand. Likely they will make Suria a money tree by increasing the dividend policy of Suria to 60-70% from current 30%. In conservative, assuming 50%, shareholders get 7.5 sen, which is 8.5% DY at current price.
k3nthiew, I fully agreed with you that the dividend policy will increase from present 35% to 50% as the committed fund had reached Rm1.072 billion as against of RM1.3 billion in the concession agreement. From 2021 to 2034( 14 years), each year only require to invest further average of Rm16.3 millions per annum to comply with the agreement. The balance profit best way is to distribute back to the shareholders which main shareholder is Sabah government.
If MMC want to maximize its profit from the port listing, likely they will buy over Suria due to the cheap valuation. By offering Suria a Rm1.50 offer with 10 times PE and list the whole port operation at 16 times PE. Good bet!!
Suria has good earnings record which consistently earn >50mil p.a in the past 6 years. MMC can easily sell Suria at higher valuation during their Port Business listing next year
you buy Suria never lose. Because: 1). downrisk is limited. 2). At this price RM 1.00m, dividend almost 5% 3). Huge up rise potential due to profit from the property development.
Is today year ended window dressing..? After long period downtrend...speculator/investors have lost interest in this counter..pity Suria nobody care about it..
Now most of the cargo is sent by sea freight b'cos of corona virus situation and air freight are unable to handle the job. so all the ports businesses are busy and expect a big profit beginning next year as MCO is relax.
Be patient, good news is coming soon. I am adding my stocks today after selling low yesterday. I regret I sold a lot of my SURIA shares yesterday at low price and have to buy back today.
Today is tough Tomorrow is tougher The day after tomorrow is beautiful.. But u have to be patient and make sure u don't die before the day after tomrrow.. ...from JackMa..
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....
Glopac
65 posts
Posted by Glopac > 2020-08-27 19:22 | Report Abuse
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