A RECOLLECTION OF OLD NEWS ARE USEFUL TO INDICATE WHAT THE FUTURE HOLDS FOR EURO. PAST NEWS, ANNOUNCEMENTS, COMMENTS REMAIN VALID.
IN LINE WITH ITS NEW BUSINESS FOCUS, EURO WILL BE LAUNCHING ITS MAIDEN PROPERTY PROJECT IN CHERAS IN 1H OF THIS YEAR. OXLEY, A CONSTRUCTION/PROPERTY CO LISTED IN SGX, ALSO IS IN PROPERTY DEVT IN THE NORTH EAST REGION OF PENANG. A 5 ACRES PLOT IS READY FOR DEVT THERE. IT IS RELEVANT TO NOTE THAT I OF EURO'S DIRECTOR IS ALSO ON THE BOARD OF OXLEY SPORE.
I REMAIN OPTIMISTIC THAT APPROPRIATE CAPITAL MANAGEMENT, INCLUDING A SIZEABLE LANDED ASSET INJECTION, CAN PROPEL EURO INTO THE BIGGER LEAQUE OF PROPERTY DEVELOPERS. WE CAN SEE MANY POSITIVE INDICATIONS TOWARDS THIS OBJECTIVE.
I BELIEVE ITS A MATTER OF DOING IT AT THE RIGHT TIMING.
The Board of Directors of Euro wishes to announce that the Company proposes to seek shareholders’ approval at the forthcoming Annual General Meeting for the proposed renewal of shareholders’ mandate for the Company to purchase its own shares of up to ten per cent (10%) of its issued and paid-up share capital (“Proposed SBB Renewal”).
A Circular to Shareholders on the Proposed SBB Renewal will be despatched to the shareholders of Euro in due course.
GENERALLY SUCH CORPORATE ACTION PLANS ARE POSITIVE. ONLY LISTED COMPANIES WITH GOOD FUNDAMENTALS AND ALREADY POSSSESS THE FINANCIAL RESERVES ARE ALLOWED TO UNDERTAKE THEIR OWN SHARE BUYBACKS.
ANOTHER POSITIVE IS THAT LISTED COMPANIES MUST HAVE THE SURPLUS CASH ITO BE ABLE TO CARRY OUT SUCH SHARE BUY BACKS AND KEEP THESE SHARES AS TREASURY SHARES.
COMPANIES NORMALLY BUY BACK THEIR OWN SHARES BECAUSE THEY DEEMED THE CURRENT MARKET PRICE OF THEIR SHARES ARE UNDERVALUED, I.E. SHOULD BE WORTH MORE THAN THE PRICES LISTED IN BURSA.. (FOR EXAMPLE, CURRENT PRICE 0.685 AGAINST ITS NTA (NET TANGIBLE WORTH PER SHARE) OF 0.85 (AUDITED)
LISTED COMPANIES WHO DO SHARE BUY BACKS AND RETAINED AS TREASURY SHARES OCASSIONALLY DISTRIBUTES THESE AS FREE SHARES TO ALL THEIR SHAREHOLDERS (CAN BE CONSIDERED AS BONUS SHARES EXCEPT THAT SUCH EXERCISES WILL NOT INCREASE THEIR ISSUED CAPITAL BASE. ITS VERY POSITIVE AS SHAREHOLDERS WILL BENEFIT WITH FREE SHARES WITHOUT ANY DILUTION .
NOT TRUE FOR EURO. ACTUALLY GOOD NEWS. EURO HAS NO FINANCIAL ISSUES AT ALL. IT IS MAKING PROFITS ALL ALONG. ITS AUDITED NTA (TANGIBLE NET ASSET OR TANGIBLE WORTH PER SHARE) IS 0.85 (HIGHER THAN ITS PREVAILING SHARE PRICE)
IN FACT, THE PAR VALUE REDUCTION IS MADE TO REWARD SHAREHOLDERS WITH BONUS SHARES ISSUE AS WELL AS TO ENHANCE THE LIQUIDITY OF ITS SHARES, THUS ENCOURAGING INVESTORS. IT IS THEREFORE A POSITIVE MOVE. (AS IT IS NOT TO ELIMINATE LOSSES).
THE MULTIPLE PROPOSALS ARE INDEED VERY POSITIVE AND IS INDICATIVE OF MORE GOOD ANNOUNCEMENTS TO COME (ASSET INJECTION)
GIVING BONUS SHARES TO SHAREHOLDERS IS PART OF THE ANNOUNCED MULTIPLE PROPOSALS.(ITEM 2) THE DECLARATION OF BONUS SHARE ISSUE IS POSITIVE. NEVERTHELESS THE DAILY MOVEMENTS OF SHARE PRICES ARE INFLUENCED BY MANY FACTORS, INCLUDING THE COMPANY ANNOUNCEMENTS, MARKET NEWS, THE CONDITION OF THE STOCK MARKET ON ANY PARTICULAR DAY. YESTERDAY'S EURO'S PRICE WAS DOWN DESPITE ITS POSITIVE PROPOSALS. BUT BURSA WAS ALSO DOWN A LOT (-25 PTS OR 1.4%) ON THE SAME DAY.
THE MULTIPLE PROPOSALS ARE POSITIVE, WITH ITS FINANCIALS/FUNDAMENTALS REMAINING INTACT AND IN FACT STRENTHENED BY SUCH CAPITAL MANAGEMENT, I AM OPTIMISTIC EURO IS ON TRACK IN ITS BUSINESS DIVERSIFICATION PLANS INTO PROPERTY DEVELOPMENT. I EXPECT ITS 1Q RESULTS (TO BE RELEASED THIS MONTH) TO BE BETTER. I AM ALSO LOOKING FORWARD TO THE LAUNCHING OF ITS MAIDEN PROPERTY PROJECT IN CHERAS SOON (TO BE FOLLOWED BY MORE PROPERTY DEVT RELATED NEWS IN FUTURE) I BELIEVE SOUND BUSINESS GROWTH PLUS INCREASING PROFITABILITY WILL ENHANCE THE VALUE OF EURO AND HENCE ITS SHARE PRICE..
EURO: MULTIPLE PROPOSALS: EXTRACTS OF SALIENT POINTS ===================================================== The Proposed Par Value Reduction will give rise to a credit of RM32,400,000 after taking into consideration the existing issued and paid-up share capital of RM40,500,000 comprising 81,000,000 Euro Shares as at 28 April 2015, being the latest practicable date prior to this announcement (“LPD”). The total credit arising from the Proposed Par Value Reduction will be credited to the share premium of the Company and may be utilised in such manner as the Board deems fit and as permitted by relevant and applicable laws such as paying up unissued shares to be issued to the shareholders of the Company as fully paid bonus shares. The Proposed Par Value Reduction is not intended to offset any accumulated losses of the Company. As at 31 December 2014, the Company had audited retained earnings and share premium of approximately RM3.76 million and RM3.84 million, respectively. For avoidance of doubt, the Proposed Par Value Reduction will not result in any adjustment by Bursa Malaysia Securities Berhad (“Bursa Securities”) to the Share price or the number of Shares held by shareholders of the Company.
Proposed Bonus Issue of Shares of 162,000,000 new Euro Shares (“Bonus Shares”) on the basis of two (2) Bonus Shares for every one (1) existing Euro Share held at an entitlement date to be determined later after the Proposed Par Value Reduction
After due consideration, the Board is of the view that the Proposed Bonus Issue of Shares is the most appropriate avenue of rewarding the existing shareholders of the Company as the Proposed Bonus Issue of Shares will: (i) reward the existing shareholders of the Company for their loyalty and continuing support; 7 (ii) increase the number of Euro Shares held by the Company’s existing shareholders, whilst maintaining their percentage of equity interest; and (iii) be able to encourage the trading liquidity of Euro Shares on Bursa Securities via a greater participation by investors with the increase in the number of shares.
Placement arrangement After due consideration of the various methods of fund raising available for the purposes as stated in Section 2.3.6 above, the Board is of the opinion that the Proposed Private Placement is currently an appropriate avenue of fund raising as it will enable the Group to raise funds without incurring interest cost as opposed to bank borrowings. In addition, the Proposed Private Placement will further strengthen the capital base on the Company.
In addition, the independent third party investors shall be persons who qualify under Schedules 6 or 7 of the Capital Markets and Services Act, 2007, which include interalia, the issuance of the Placement Shares to each of them for a consideration of not less than RM250,000 or the issuance is made to high net worth individuals whose net personal assets exceed RM3,000,000 or corporations with net assets exceeding RM10,000,000. The proceeds for the working capital will be utilised to fund the Group’s property development activities such as payment to sub-contractors, relevant professional and marketing fees (if any). The Company had on 27 June 2011 obtained the approval from its shareholders to diversify into the property development business. On 18 May 2011, Euroland & Development Sdn Bhd (“Euroland”), a wholly-owned subsidiary of the Company entered into a sale and purchase agreement to acquire a piece of freehold land held under G.M 974, Lot No. 2223, Mukim of Cheras, District of Hulu Langat, State of Selangor measuring approximately 1.6314 hectare or 4.031 acres (“Land”) from Yap Tong Feng for a cash consideration of RM7.0 million (“Acquisition”) with a plan to develop the Land into a residential development. The Acquisition was completed on 26 September 2011. The residential development is expected to comprise a block of 322 units of apartment (“Project”). The estimated gross development value and total estimated development cost for the Project is approximately RM165.0 million and RM140.0 million respectively. Euroland had on 22 January 2015 obtained the development order from Jabatan Perancangan Bandar Majlis Perbandaran Kajang for the Project and had in April 2015 submitted an application to Jabatan Perancangan Bandar Majlis Perbandaran Kajang for the conversion of land for the Project from “agriculture” to “building” and is pending for approval as at the LPD.
(gross development value RM165M less total est. development cost of the project RM140M = est. profit RM25M) ============================================================ (READERS WILL BE ABLE TO OBTAIN THE COMPLETE VERSION OF EURO'S MULTIPLE PROPOSALS FROM ANNOUNCEMENT VIA BURSA)
POSITIVE BASED ON : SHAREHOLDERS ARE BEING REWARDED WITH BONUS SHARES
TOGETHER WITH ITS PROPOSED PRIVATE SHARE PLACEMENT TO QUALITY INVESTORS, ITS CAPITAL BASE WILL BE FURTHER STRENGTHENED
EURO SHARES WILL BECOME MORE LIQUID, THUS ATTRACTING MORE INVESTORS, PARTICULARLY INSTITUTIONAL INVESTORS WHOSE PRIME INVESTING CRITERIA ARE THE LISTED COMPANY'S VALUE/POTENTIAL ENTERPRISE VALUE AND ITS SHARE LIQIUDITY IN THE STOCK MARKET.
EURO IS DEFINITELY ON TRACK IN ITS DIVERSIFICATION INTO PROPERTY DEVELOPMENT WHICH WILL ENABLE IT TO SIGNIFICANTLY ENHANCE ITS REVENUES AND PROFITS.
THE ENHANCED LIQUIDITY OF ITS SHARES WILL STRENGTHEN ITS CAPACITY TO ISSUE ITS SHARES FOR ANY FUTURE CORPORATE PROPOSALS (EG ACQUISITIONS)
IMPORTANT TO NOTE :- (I) For avoidance of doubt, the Proposed Par Value Reduction will not result in any adjustment by Bursa Malaysia Securities Berhad (“Bursa Securities”) to the Share price or the number of Shares held by shareholders of the Company. (2)that the Proposed Private Placement will enable the Group to raise funds without incurring interest cost as opposed to bank borrowings. In addition, the Proposed Private Placement will further strengthen the capital base on the Company. (3)Euro's profit in 2014 was RM2.3M. Its maiden property project wil generate a profit of RM25M. (This incremental profit is 10 times more last's year's profit)
ALL THE RIGHT MOVES BY EURO'S MANAGEMENT
(diversification into property devt to turn Euro into a GROWTH STOCK)
ECOWORLD BECAME A GREAT GROWTH STOCK BY DIVERSIFYING INTO PROPERTY DEVT.
EURO IS FOLLOWING ECOWORLD'S WAY. EURO WILL ALSO HAVE ITS DAY WITH MORE PROPERTY PROJECTS (BY WAY OF BOTH ORGANIC GROWTH THROGH ITS OWN LANDED ASSETS WHICH HAVE NOT BEEN REVALUED AND ACQUISITIONS/MERGERS)
Darren, you are over promoting this stock.. The assumption of RM25Mil gained from the development is at best, an assumption without any costs overrun and assumming all units are sold at the high price Euro is selling in this depressed property market. Also, for someone who is able to give such a great detailed analysis of the stock, one would be very suspicious that you have conviniently gave a misleading statement such as note 3 .. "(3)Euro's profit in 2014 was RM2.3M. Its maiden property project wil generate a profit of RM25M. (This incremental profit is 10 times more last's year's profit) "
You should be fully aware that the assumed RM25M profit is over a period of 3 years, not 1 financial year. Therefore such statement of 10x incremental profit is extremely misleading!
If you can recall also, the Company sat quietly on the piece of vacant land without any development as it was unable to satisfy the requirements and / or the development plans were rejected by the council. Also the assumed profits were based on previous costing without taking into considerations the hike in costs due to various factors. 20-25% of the land or so cant be developed and / or heavy investments need to be incurred due to land stabilisation criteria as a result of being next to a river and these stabilisation costs have gone up tremendously the last year or two. Therefore to count the RM25Mil for the entire project seems a bit too far fetched.
While you may have strong confidence in this stock, by over promoting and "sharing" not too accurate financial facts may not be appropriate as some investors may be blinded with your advise without realising some inaccurate financial datas.
Agree with the above. Growth is only 25% from past 10 years result. The land at pepper estate has so many squatters that it is almost impossible to satisfy every single one of them. Not to mention the cost needed for land stabilisation if they are going for high rise residential. From planning to handover of property will take a period of 4-5 years at least.
(1)the required Development Order for the housing project in Cheras had already been approved/obtained on 22/1/2015 (2)The est. gross devt value of RM165M and its total est.devt costs of RM140M are the LATEST figures provided by Eoro's Management as announced. These figures would be based on the CURRENT market conditions/benchmarks (3) The 3 year gestation period for any housing project is the norm. Investors are aware of this
We are presently focussed on the current multiple proposals. The housing project in Cheras is almost ready to take off (just waiting for the land conversion approval) It was indicated that the project is to be launched in the 2H of this year.
At the moment we are NOT including the prime 300 acres freehold lands in Beverly Heights Properties S/B (inclusive of the 19 acres Pepper Estate) in North Eastern Region of Penang (owned by the 2 dtors/major shareholders. Hopefully this will feature in any FUTURE corporate action plans of Euro.
Property devt needs medium to long term business strategies. It is a profitable business which can help Euro to evolve into a HIGH GROWTH COMPANY.This is what we looking for when investing.
While the practical concerns raised in developing Pepper Estate are valid, we should also note that the current Directors are already very experienced in property devt & construction.There is also a business tie up with OXLEY Holdings,(Spore SGX Main Board listed). Euro's directors should have the technical competencies and experience to manage/overcome any concerns that may be encountered. However these are only relevant after Beverly Heights Properties are included in any Future Corporate Agenda by Euro's Board. We can discuss this when it happens.
FROM THEIR OFFICIAL ANNOUNCEMENTS VIA BURSA PLUS ANALYSTS' COMMENTARIES VIA VARIOUS FINANCE BLOGS. EURO HAD JUST RELEASED THE :- Type Announcement Subject MULTIPLE PROPOSALS Description EURO HOLDINGS BERHAD ("EURO" OR THE "COMPANY")
(I) PROPOSED PAR VALUE REDUCTION; (II) PROPOSED BONUS ISSUE OF SHARES; (III) PROPOSED PRIVATE PLACEMENT; AND (IV) PROPOSED AMENDMENT
(COLLECTIVELY REFERRED TO AS THE "PROPOSALS") We refer to the announcement dated 29 April 2015 in relation to the Proposals (“Announcement”). Unless otherwise defined, the definitions set out in the Announcement shall apply herein.
On behalf of the Board, TA Securities wishes to announce that the additional listing application for the Proposals has been submitted to Bursa Securities on 7 May 2015.
This announcement is dated 7 May 2015.
THE BOARD HAS SHOWN ITSELF TO BE COMPETENT IN THE IMPLEMENTATION OF THEIR MULTIPLE PROPOSALS. WHEN THEY ACTIVATED THEIR CORPORATE PLANS TO DIVERSIFY INTO PROPERTY DEVT. ON 29/4/15, THEY INDICATED THEY WILL SUBMIT THEIR PROPOSALS WITHIN A MONTH, I.E. BY 29/5/13. BUT THEY HAD ALREADY DONE DONE THE ABOVE TODAY.
MEANWHILE WE HOPE TO RECEIVE FURTHER GOOD NEWS IN THE FORM OF BETTER 1Q RESULTS DUE TO BE OUT THIS MONTH (BASED ON THEIR EXISTING FURNITURE MANUFACTURING & EXPORT BUSINESS).
WE ARE OPTIMISTIC FOR EURO'S PROSPECTS BASED ON :- (1) EXPECTED BETTER 1Q RESULTS FOR 1Q TO BE ANNOUNCED THIS MONTH (2) FAST TRACKING OF ITS MULTIPLE PROPOSALS ESPECIALLY ITS 2 FOR 1 BONUS ISSUE i.e. 1 shares becomes 3 shares + ITS PRIVATE PLACEMENTS OF SHARES.(SPEEDY SUBMISSION WITHIN 1 WEEK OF THE ANNOUNCED PROPOSALS)
(COLLECTIVELY REFERRED TO AS THE "PROPOSALS") We refer to the announcement dated 29 April 2015 in relation to the Proposals (“Announcement”). Unless otherwise defined, the definitions set out in the Announcement shall apply herein.
On behalf of the Board, TA Securities wishes to announce that the additional listing application for the Proposals has been submitted to Bursa Securities on 7 May 2015.
This announcement is dated 7 May 2015.
(3) ITS MAIDEN PROPERTY DEVT PROJECT IN CHERAS IS VERY PROMISING. BASED ON ITS 322 APARTMENT WITH AN EST. GDV OF RM165M MEANS ITS AVERAGE SELLING PRICE IS A ATTRACTIVE RM512K PER UNIT. FREEHOLD TITLES. SHOULD BE SALEABLE AND TO BE ABLE TO GENERATE AN EST PROFIT OF RM25M IS COMMENDABLE. THIS IS FEASIBLE DUE TO THE CHEAP LAND COST (4.031 ACRES ACQUIRED IN 2011 FOR RM7M ONLY) (4) THE PROSPECTS OF MORE PROPERTY DEVT PROJECTS (5) OVERALL THE PROSPECTS FOR EURO CAN ONLY BE POSITIVE
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Posted by wm1818 > 2015-04-23 09:52 | Report Abuse
DARREN, you are talking about very old news... if there were to be any assets injections, it would have happened a long time ago, not now.