Wednesday, January 18, 2012

Happy New Year 2012

Here's Ben wishing all the members and readers of this blog a very Happy & Prosperous New Year.
May God bless your every trade.

My new year message is:
Remember your laughters.
Forget your tears.
What matters is the present.
It's here; its real.
Enjoy! It's Happy New Year.

Tuesday, January 17, 2012

Iskandar set to reach tipping point

Tuesday January 17, 2012


PETALING JAYA: Iskandar Malaysia is set to reach its tipping point in the next 24 months after the completion of key catalyst developments and infrastructure improvements, according to HwangDBS Vickers Research.
The research unit believed that prospects for the economic growth corridor in Johor would be boosted by the successful bilateral talks during the recent Malaysia-Singapore Leaders' Retreat, the entry of more property developers as well as spillover demand for properties in Iskandar due to Singapore's latest stamp duty hike and high property prices.
It was noted that the recent bilateral talks had resulted in fruitful discussions on topics such as the construction of an undersea tunnel linking Johor Baru and Singapore, sale of electricity to Singapore (possibly from Pengerang), co-operation in aviation and airport services between Johor's Senai International Airport and Singapore's Changi International Airport, and the formation of a work group on industrial co-operation to promote Iskandar and Singapore.
“The industrial co-operation work group may be a springboard for more investments by Singapore in Iskandar, and could be a key re-rating catalyst,” HwangDBS Vickers Research said.
Since 2006, Iskandar has received RM77.8bil worth of committed investments.
The region had also recently seen property launches setting new price benchmarks, the research house said.
“We were pleasantly surprised by the strong 65% bookings for UEM Land Holdings Bhd's Imperia@Puteri Harbour condominiums, which were launched in Nov 2011 at a record RM725 per sq ft.”
It was also noted that UEM Land's Impiana@East Ledang condominiums had seen brisk sales with two blocks almost fully sold within six months at RM480 per sq ft (compared with RM300 per sq ft for the adjacent Ujana apartments launched in 2009).
For SP Setia Bhd, Johor is also a core market (accounting for 29% of its sales) with sales surging 57% in its financial year ended Oct 31, 2011.
Meanwhile, land values in Johor's Southern Industrial and Logistics Clusters continued to appreciate with the latest transactions hitting RM35 per sq ft (compared with 2010's RM25 per sq ft).
HwangDBS Vickers Research said its top stock picks, for exposure to Iskandar, were UEM Land, SP Setia, Eastern & Oriental Bhd and Genting Plantations Bhd.

Friday, January 13, 2012

Pos seen making RM2b revenue


KUALA LUMPUR: In the article headlined “DRB-HICOM sees RM2b Pos profit” published on January 11, it should have read “DRB-HICOM sees RM2b Pos revenue”.

DRB-HICOM Bhd has also clarified that Pos Malaysia Bhd is expected to generate RM2 billion in revenue by 2015 and not as reported.

Wednesday, January 11, 2012

DRB-HICOM sees RM2b Pos profit

Cheryl Yvonne Achu (Business Times)

DRB-HICOM has identified 17 areas of new businesses that can be tapped through Pos Malaysia including collaborating with Bank Muamalat Malaysia
KUALA LUMPUR: DRB-HICOM Bhd expects Pos Malaysia Bhd to generate RM2 billion in earnings by 2015, said DRB HICOM's managing director Datuk Seri Mohd Khamil Jamil.

DRB HICOM owns 32.27 per cent of Pos Malaysia, the country's largest postal company. It acquired the stake from Khazanah Nasional late last year for RM622.79 million or RM3.60 per share.

For the year ended December 31 2010, Pos Malaysia earned RM1.01 billion in sales, while pre-tax profit stood at RM99.06 million. Up to the nine months ended September 30 2011, Pos Malaysia's revenue stood at RM883.98 million, while pre-tax profit came in at RM128.55 million.

Mohd Khamil said that DRB- HICOM had identified 17 areas of new businesses that can be tapped through Pos Malaysia including collaborating with Bank Muamalat Malaysia Bhd.

"The management of Pos Malaysia had put forward more than 39 points of its transformation plans," Mohd Khamil said, noting that Pos Malaysia had 39 points of transformation plan before it was handed over and after being acquired.

Moving forward, DRB-HICOM plans to take Pos Malaysia to the next level of growth despite the postal business being a sunset industry. Worldwide, postal businesses have slowed down as people are moving away from traditional postal mail.

"The margin to improve is tremendous if we concentrate on courier services," he said noting that courier services have about RM1.6 billion worth of business to tap on.

Monday, January 09, 2012


NextNation was at 4 sen a share in late Sept 2011. Now it is 13 sen. This is gain of 225% in less than 4 months. Wow! Thank's great.

Many people were badly bitten by this counter and probably angry with it. Looks like the stock is coming back from its ashes. I think it will be big mistake to sell it now.

Tuesday, January 03, 2012

Cresendo Corp Bhd (Stock Code 6718)

Iskandar Malaysia (IM) is accessible by air, land, rails and sea. It is flanked by three important ports. Strategically located, it has all the competitive edges of being developed into a metropolis. IM is twice the size of Hong Kong, and when compared to Singapore, it is thrice the size of the island.
There is now a hive of activity at IM. The Government has allocated RM6.83 billion to develop it. Newcastle Medical University has already started operation, and Legoland will likely open its doors for business towards 2012. Click here to read more.

Crescendo Corp Bhd (CCB) founded in 1989 is a leader in the property development sector in IM. According to its Chairman and CEO Gooi Seong Lim, its Cemerlang Township (562.51 ha) will keep the company busy in the next 12 to 15 years. The key statistics of the company are:

Share Issued: 175,114,000
Par Value RM1
EPS, trailing 9 months: 26.92; diluted 19.33
EPS, latest qtr: 12.48; diluted 8.95
Current Assets: 287,202,000 (Cash 67,514,000)
Current Liabilities: 84,303,000
Total Assets: 776,956,000
Total Liabilities: 233,010,000
NTA: 3.02
Borrowings: 138,704,000
Dividends paid during the 9 months ended 31.10.11: 2 sen less tax paid on 17.2.11; 5 sen less tax paid on 26.8.11, and now it has declared a dividend of 3 sen less tax.

The Business of Crescendo is centered in IM which is a high-growth area in Malaysia. The company has been well-managed. I believe it should have high-growth as well. The stock is last traded at RM1.60. In my opinion, this a property gem.

As usual, buy at your own risk. Happy New Year!

Some extracts from Bursa Announcements:
B1 Review of the performance of the company and its principal subsidiaries The Group recorded a significant increase in revenue and profit before tax ("PBT") to RM219.8 million and RM64.9 million respectively for the nine months of the financial year ending 31 January 2012 as compared to RM158.5 million and RM34.6 million respectively recorded for the previous corresponding financial period in the last financial year.
The 39% increase in revenue is mainly contributed from higher sales in industrial properties. The 87% increase in PBT is mainly contributed by higher sales and improved margin from industrial properties.
B2 Comparison of profit before tax for the quarter reported on with the immediate preceding quarter The PBT for the current financial quarter is RM30.4 million, which represent an increase of RM9.9 million or 48% as compared to the preceding financial quarter ended 31 July 2011. The significant increase in PBT is mainly contributed by higher sales in industrial properties.
B3 Prospects For the financial year 2012, the market conditions are volatile in view of the European sovereign debt concern and a recurrence of the global recession. The Group will continue to focus, with the encouraging locked-in sales, on the development of industrial properties at Nusa Cemerlang Industrial Park ("NCIP") located in Nusajaya in the financial year 2012.
The Board expects the Group's performance to remain good for the financial year ending 31 January 2012.