Jian Bin Siew

Hi, anyone holding Sunway PA? Let us start our discussion here.

2020-12-11 13:21

Red Dragon

Yes, added some PA at 1.18 today.

2020-12-11 22:45

onward

sunway-pa really look attractive now. will consider buy more in next week after spare fund from other stock

2020-12-12 15:02

serendipity89

hope there will be some dividend income announce in the coming quarter after the cash from disposing pinnacle office kick in.

2020-12-13 11:37

Faith InMe

Hi... this is the first time i bought preference share. May I ask ,when we convert to ordinary share, do we need to pay any fee ?

2020-12-15 15:13

Kensington

50% of all the Sunway-PA shares shall be mandatorily redeemed by the Co upon the expiry of 4 years from the date of issuance and the rest redeemed automatically at the end of the 5 year tenure, both on the basis of 1:1 exchange without payment involved.
Meantime you will receive preferential interest @ 5.25% pa on a semi-annual payment basis.

2020-12-15 15:55

Faith InMe

thanks Ken

2020-12-15 16:22

Jian Bin Siew

Don't think Sunway PA can receive special dividend.

2020-12-15 18:45

Jian Bin Siew

Sunway PA has fixed dividend policy, you will receive 5.25% dividend based on RM1 price. Means RM52.50 for every 1000 shares of PA.

2020-12-15 18:47

ganseong

Dear Kensington. There is a lot of confusion. Grateful if you can clear it up
As my understanding after 4th -5th year it is conversion to the mother share at the market price but some say they will pay you back the RM1. Some even say the final conversion rate is still not yet spell out clearly at Bursa..

2020-12-15 20:16

Jian Bin Siew

Ganseong, it is free and auto convert. my friend has asked from Sunway Investment Relationship Department. Ultimately, it will become Sunway ordinary share. Let us earn together. For those who has subscribed before the listing of PA, most of us are having paper gain now. Cheers.

2020-12-16 07:02

Jian Bin Siew

https://www.facebook.com/106802820776934/posts/246751486782066/ Official answer by Sunway IR team about the zero conversion of Sunway PA to Sunway Bhd in forth and fifth year.

2020-12-17 11:54

ganseong

Thank you Mr Jian. You even point out the potential of special dividend by Sunway which might cause the mother share to drop after the ex-date like what happened to Airasia after they sold off their aircraft. How about if they issue the bonus or share split? The mother share price might cut half!! This is the potential risk that I never think before this

2020-12-17 17:22

Jian Bin Siew

Ganseong, if bonus issue or right issue, no worry at all, the conversion rate will adjust accordingly.

2020-12-22 14:07

chutheng

if come the the mutual date the PA stocks price at RM1.20 which price to be conversed to mother share? if as said use the par value to convert. the shareholder will lose RM0.20 per share. right?

2020-12-23 16:27

Jian Bin Siew

Chutheng, u will get one sunway share 1 to 1 conversion, lose nothing.

2020-12-29 22:55

zonefinder

The impact to the share price will be based on the amount of dilution after conversion ie base becomes bigger so share price will theoretically drop as a result.

2021-02-09 10:28

zonefinder

Irred pref shares is about 1 billion. Basic shares = 5billion. Prevailing price is 1.48. Assuming this price remains same just before conversion. After conversion, the diluted price will theoretically be adjusted to 1.48*5/6= 1.23. Just a little cushion and pray mother share price doesn't drop in 4-5 years.

2021-02-09 10:44

NKH970112

5.25% dividen per semi-annual (10.5% per annual) or 5.25% seperated into semi-annual? This is a huge difference.

2021-02-14 22:31

Kyle Yee

5.25% pa (per annum), paid out semi-annual. dont confuse yourself

2021-02-25 13:21

ktcheng506

Conversion Price : The Conversion Price on both the Year 4 Anniversary and the
Maturity Date shall be RM1.00 per Sunway Share, subject to
Adjustments to the Conversion Price as set out below.
For the avoidance of doubt, no additional cash payment is required
from ICPS holders for such conversion of the ICPS.
(Reference:https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=103449&name=EA_GA_ATTACHMENTS)

2021-03-01 09:56

aliyusof

"Sunway shall at the discretion of the Board pay cumulative
preferential dividend at the rate of 5.25% per annum calculated
based on the issue price of ICPS of RM1.00".
Does this mean that 5.25% dividend per year is 100% guaranteed but may be cumulatively paid later years if it is not declared in one particular year? Pardon me, can some sifu help on this point.

2021-03-06 13:11

trader808

Today the Sunway PA is worth the interest payments for 5 years plus the value of mother shares. That is (52.5 x 5) + 1700 = RM1962.5. For this to happen, you must wait 5 years.
Alternatively you can calculate the Present Value of a series of payment RM52.5 every year for 5 years plus RM 1700 at the end of 5th year. SO,

PV {5% PV Factor} = 52.5 [0.95+0.91+0.86+0.82+0.78] + [1700 X 0.78] = RM1552

Share market is not engineering science. It is an art. There are hundred of factors influencing buying behavior and selling patterns. As at today market is only willing to pay 1220 for the same thing that is worth 1552 today and 1962 in 5 years. Its true value has been sadly neglected. Someday it will catch up. Hopefully..

2021-03-11 19:34

eslee

Fully agree with trader808 that the price of Sunway PA seem really undervalued. The prices gap between mother share and PA as at 12 March 21 (RM1.69 vs RM1.22) is so wide (about 38.5%).

Assuming you dispose 1,000 shares of the mother share now, you are able to purchase back 1,384 shares of PA with the same value. You will receive the dividend payments for the next five years amounting to RM326.97 [(1,384 X RM0.0525 X 4) + (692 X RM0.0525)]. Of course, the mother shares are also entitled for dividend payment, but Sunway has to declare 6.54% dividend per share each year for the next five years to match the dividend payments of PA.

Ignoring the impact of the dividend payments between mother share and PA, assuming the price of mother share maintain at RM1.69 or drop to RM1.00 at the end of fifth year, the two scenarios as below :

Scenario 1 :

Price of mother share at the end of fifth year : RM1.69
Investment value if maintaining with holding 1,000 mother shares : RM1,690
Investment value if disposing 1,000 mother shares & purchase 1,384 PA : RM2,339
Diff (%) : 38.4%


Scenario 2 :

Price of mother share at the end of fifth year : RM1.00
Investment value if maintaining with holding 1,000 mother shares : RM1,000
Investment value if disposing 1,000 mother shares & purchase 1,384 PA : RM1,384
Diff (%) : 38.4%

If you are long term investor and confident with the management of Sunway where they will enhance the value of the mother shares at the end of fifth year, it's better to dispose the mother shares now and purchase PA with the potential higher returns of 38.4%.

As a shareholder of Sunway today, I intend to apply the above strategy. Can anyone here give me some advice whether this is a smart move ?

2021-03-15 00:52

tannyye

I have doubts where the issuance of this pa is based on the 1 out of 5 mother shares, where if at the end of year 5 all pa are converted to mother share, the market price of the mother share ought to drop because of dilution, price now is 1.71*5/6= only 1.415, which means it might not be so lucrative as scenario one, the issuance of dividend is also subject to profit, and discretion of the directors. 2nd worst scenario compared to scenario 2(assumption is no price drop) is now at 1.22 buy 1000, at year 5 dispose 1,415 sell 1000, gain (1.415-1.22=0,195)/1.415=13.7%. oops still looks lucrative. but we should discount the return rate over 5 years. 5 power root of 1.137=2.601% annual compounding interest. seriously this isnt much if you can manage your portfolio for more than 2.601% returns every year.

2021-03-15 14:27

eslee

@tannyye Thanks for your comment. However, the formula used for calculating the price dilution seems overlook the value of PA (RM1.00) to be credited as share capital. It should be (RM1.71 X 5) + RM1.00/6 = RM1.59. At the same time, the investment value suppose to be RM1.22 and not RM1.415, therefore the returns should be : (RM1.59 - RM1.22)/RM1.22 = 30.3% excluding dividend received during the next five years. Of course, the payment of dividend to PA holders subjected to the profitability of the Group but Sunway need to pay dividend to PA holders first if they intend to declare any dividend to shareholders of ordinary shares during the next five years. Besides, there is a high possibility of appreciation for the price of mother share at the end of fifth year.

2021-03-15 17:50

tannyye

eslee and yesAH sifu i am wrong, here koutou to you guys. Thank you for pointing out.

2021-03-16 19:28

Ong Yee Hor

Entitlement Details:
Preferential dividend of 5.25% per annum [based on the issue price of
RM1.00 per irredeemable convertible preference shares ("ICPS")] for the period
from 3 December 2020 up to and including 31 December 2020, in respect of the
financial year ended 31 December 2020.


Entitlement Type: Others
Entitlement Date and Time: 15/04/2021 05:00 PM
Year Ending/Period Ending/Ended Date: 31/12/2020
EX Date: 14/04/2021
To SCANS Date:
Payment Date: 28/04/2021

2021-03-31 20:39

2387581

Entitlement indicator Percentage
Entitlement in Percentage (%) 0.4160
...so on 28 April we get payment of 0.416 sen per share?
Or it will be inclusive of the pro-rate up to 14 April?

2021-04-02 12:12

PenangLang9180

From the official company announcement on BURSA.com:

"Preferential dividend of 5.25% per annum (based on the issue price of RM1.00 per ICPS) for the period from 3 December 2020 (being the issue date) up to and including 31 December 2020, in respect of the financial year ended 31 December 2020."

So yes, 0.416 sen per share

2021-04-02 15:07

AnndyYSYong

May I know how to get the 0.416 sen per share ?

2021-04-29 21:52

jshy662

based on this announcement looks like we are only getting 29 days of dividend (31-2)...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3144396

2021-05-03 12:10

trader808

Preferential dividend of 5.25% per annum [based on the issue price of RM1.00 per irredeemable convertible preference shares ("ICPS")] for the period from 1 January 2021 up to and including 30 June 2021, in respect of the financial year ending 31 December 2021
Ex-Date 30 Sep 2021
Entitlement date 01 Oct 2021
Entitlement time 5:00 PM
Financial Year End 31 Dec 2021

2021-08-25 09:41

Km Meng

just hold...as once the 5th year come in...is time for Sunway Medical Centre to be listed due to the recent GIC subscription of shares in SMC....so hold on tight and wait for it...in the mean time ejoy the 5.25% dividend holding the PA...as mother share will not enjoy that high yeild dividend.

2022-04-14 15:05

ysl5570

If the Sunway Medical Centre is to be listed within the next 3 years (before Sunway-PA's maturity for conversion), would Sunway-PA holders be entitled to get the new shares of Sunway Medical Centre or at least get the right to purchase the new shares at a discounted/IPO price?

2022-04-24 16:43

PenangLang9180

No

2022-04-25 17:36

jshy662

surely u dont get SMC shares if it got listed... else why this PA is dealing at about 20% discount to mother share when it has a higher 'dividend rate' also no conversion price need to be paid in future... but by the time u mature the share price will be factor in, thus no worry for now just hold (if you are holding)... if you are not holding right now can consider this as a FD with 3.5% dividend rate (0.0525/1.5) n potential future grown...

2022-04-26 18:04

VerySmartInvestor

From past experience, Sunway will not offer Shareholders RIGHTS when they IPO a business. Usually, Sunway will reward shareholders by way of Special Dividends, Dividends in Species (SMC shares) and etc. If the IPO taken place before PA mature, then The ratio for conversion has to adjust accordingly. Anyway, 99% SMC will IPO on 2026 due to few more hospitals will open next 1-2 years so that they can EBIDTA break even and profit before IPO

2023-09-18 22:28