After one big merry-go-round circle, KUB Malaysia is back to square one at 58.5 sen again. For some, this can be rather frustrating. But, if we compare it to the steeper drops of mkt favorites such as steel counters, this is perhaps an offsetting consolation for being a laggard.
Since the last asset sale of 2 oil palm lands for KUB Malaysia, we have yet to hear from the company of any further asset disposals. With CPO prices projected to hover between RM3,000 and RM4,000 per tonne this year, finding a buyer with the right price should not be too difficult. Look at TSH Resources, it has just clinched an oil palm asset sale deal. https://www.theedgemarkets.com/article/tsh-resources-sabah-oil-palm-asset-sale-good-deal-%E2%80%94-analysts
KUB Malaysia is usually locked in small price movements. The only times we can expect a good play by the mkt operator are the price spikes immediately before or after the release of some good news like an asset sale, good corporate result, etc.
Most of the times, mkt operator knows the timing of the news better than we do.
This thread is getting so quiet nowadays. We lack more quality inputs on the company's progress from the better-informed, eg Luckyboy88, etc... --------------------------------------------------------------------------------- Luckyboy88 All sector of business are booming. 1) telecom - 5g rollout, with KUB as a bumi entity 2) energy - LPG which is 1 of main revenue contributor will rise in tandem with crude oil. 3) plantation - current CPO price is very encouraging and will stay as there is no big expention for major players. World population is on exponential growth. 4) property - not much catalyst but Kub had many land banks acquired 30++ years back without land price revalued. Once did NTA will boost up. Bonus is up coming land sales in state of johor alone with net profit of 25 eps soon.
Conclusion : price will gradually Increase,.
This month I hit on Wong engineering and lbalum. Waiting for u Kub darling, cheers 21/02/2021 1:06 PM
If you guys read carefully Item 7: Subsequent Events from last QR, the latest quarter would be super profit due to 2 assets disposal completed within period. Gain RM122.2 mil, lose RM18.7 mil, so at least RM103 mil from asset disposal, which is close to 19c EPS. If they make gain from Operation, then the number would be higher. Hence the reason, why the price stays tightly between 58c - 64c because someone is collecting due to this. Once QR is out, the price may spike as what happened to MSM Holdings.
Attached is the extracted statement from their last QR
"On 10 June 2020, KUB Agro Holdings Sdn Bhd entered into a Sale and Purchase Agreement to dispose its two (2) oil palm estates in Kluang, Johor for a total cash consideration of RM158.0 million. The transaction was completed in the subsequent quarter ie. on 2 April 2021, with the Group recording a gain on disposal of approximately RM122.2 million.
On 8 April 2021, the Company entered into a Share Sale Agreement (“SSA”) with Tradewinds Plantation Berhad for the disposal of its 100% equity interest in KUB Malua Plantation Sdn Bhd (“KUB Malua”) comprising 10,000,000 ordinary shares for a total cash consideration of RM10.549 million as determined at the completion date. The transaction was completed on 30 April 2021 and the Group is expected to record a one-off estimated net loss on disposal of approximately RM18.7 million mainly as a result of non-recoverability of the Company’s prior intercompany advances to KUB Malua."
Btw, there is information saying that their LPG storage vessel construction is moving ahead albeit at slower pace due to NRP1.0. This project would lower their cost as they can store LPG product prior to filling and distribution, from current practice. So once completed and successfully commissioned, they can proceed to expand their coverage to whole Malaysia.
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....
strattegist
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Posted by strattegist > 2021-07-06 19:01 | Report Abuse
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