http://m.nasdaq.com/article/phillips-66-q2-earnings-climb-14-20170801-00484



Phillips 66 Q2 Earnings Climb 14%
(RTTNews.com) - Phillips 66 ( PSX ) released a profit for its second quarter that advanced compared to the same period last year.
The company said its bottom line came in at $569 million, or $1.09 per share. This was higher than $499 million, or $0.94 per share, in last year's second quarter.
Analysts had expected the company to earn $1.01 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Phillips 66 earnings at a glance:

-Earnings (Q2): $569 Mln. vs. $499 Mln. last year.
-Earnings Growth (Y-o-Y): 14.0%
-EPS (Q2): $1.09 vs. $0.94 last year.
-EPS Growth (Y-o-Y): 16.0%
-Analysts Estimate: $1.01

Heng Yuan Earning Report Guidelines :-
http://stillwaterassociates.com/crack-spread-a-quick-and-dirty-indicator-of-refining-profitability/

As apended link, HengYuan is producing LPG, Propylene, Light Naphtha, Gasoline, Aviation Fuel (Jet Fuel), Diesel and Fuel Oil. ( http://hrc.com.my/index.php/operations-products/ )

1) To reflect the real scenario we should use 3-2-1 Crack Spread to gauge the profit of HengYuan
https://www.energystockchannel.com/3-2-1-crack-spread/
Q2 ( April- June : USD16.00-18.00 per barrel ) / Avg : USD17
Gross Profit @ 10 million barrels Capacity Per Quarter : USD170mil
Processing Cost per Barrel Per Quarter: USD 6.50 = USD65Mil
Profit Before Overhead Cost : USD105mil X 4.3 = RM 451mil
Overhead Per Qtr : RM120mil
Net Profit : RM451mil - 120mil ; RM331mil / EPS at RM1.10 for Q2

Remark :-
Curent, Crack spread is at 52 weeks high at USD20.34 per barrel for July..

3) Inventory losses can easily offset by forex gains..

We should able to see half year earning at estimate RM600 mil or around RM2.00 (plus minor 10%).. If we annualize, we should see HengYuan to achieve yearly profit of RM1Billion, at current price the P/E ratio is less than 2.5 times.

Reference for Refinery PROFIT Benchmarking :-
http://zeenews.india.com/companies/ril-q1-results-net-profit-up-28-to-rs-9108-crore-2025393.html

Reference for Peer Share Price Benchmarking (All Time High) :-
https://www.investing.com/equities/reliance-industries

Shell's Pernis refinery fire buoys oil product prices

Reuters | Jul 31, 2017, 08:55 PM IST
By Ahmad Ghaddar and Libby George

LONDON, July 31 (Reuters) - A shutdown at Europe's largest oil refinery is boosting already-strong profit margins for petroleum products and further tightening a market that had been showing signs of rebalancing for weeks.
Royal Dutch Shell began shutting down most of its units at the 404,000 barrels per day Pernis refinery in Rotterdam following a late-evening fire on July 29 in its power supply system.
The length of the shutdown remains unknown, but the company was still in the process of switching off some units at the plant on Monday, suggesting a restart would not be immediate.
The shutdown drove up the benchmark diesel refining margin in northwest Europe , the profit that refiners can make from refining crude into diesel, to a session high of $14.60 a barrel on Monday, its highest level since November 12, 2015.

Shell shutters Europe's largest refinery after fire
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==

The fire at Europe's largest refinery was brought under control early Sunday. (Photo: AFP/Björn Remmerswaal)
31 Jul 2017 04:41AM
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THE HAGUE: The British-Dutch oil giant Shell said it was temporarily shutting down Europe's biggest refinery after a pre-dawn fire broke out at a power station on the vast site on Sunday (Jul 30).

Flames billowed into the sky over the port of Rotterdam after the blaze erupted at a high-voltage power station at the Shell Pernis refinery.

Firefighters brought the fire under control by around 6am (0400 GMT).

"Shell is in the process of shutting down all the units at the site," a Shell spokesman told AFP. The units are all interconnected and "several of them are out of service due to the power outage caused by the fire," he said.

It takes "hours, or even several days" each time that operations are closed down or restarted, he said.

Shell did not confirm media reports that the fire may have been caused by a short circuit. Instead the company said it would "wait to know more about the circumstances of the incident."

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According to the regional security authority, there were no toxic materials in the smoke.

A spokesman for the refinery said on Sunday evening that after the fire had been mastered, engineers flared off stocks of gas as part of the shutdown.

The flareoff is a recognised safety procedure and was "completely under control," he said

Shell could not immediately disclose the extent of the damage, nor when the refinery would return to full capacity.


The refinery covers the area equivalent to 800 football pitches, and its pipework, if laid end to end, would be long enough to circle the Earth four times.

The facility can process more than 400,000 barrels of petroleum products a day, but a temporary closure is unlikely to cause any significant fuel shortages, a Shell Pernis spokesman said.

"Drivers are not expected to notice a difference (in price) at the gas station," he said.

Read more at http://www.channelnewsasia.com/news/business/shell-shutters-europe-s-largest-refinery-after-fire-9077390

Shell shuts down Europe’s largest refinery after fire ON JULY 30, 20176:14 PMIN NEWSCOMMENTS The British-Dutch oil giant Shell said it was shutting down Europe’s biggest refinery after a pre-dawn fire broke out at a power station on the vast site on Sunday. Flames billowed into the sky over the port of Rotterdam after the blaze erupted at a high-voltage power station at the Shell Pernis refinery. Firefighters brought the fire under control by around 6:00 am (0400 GMT). “Shell is in the process of shutting down all the units at the site,” a Shell spokesman said. The units are all interconnected and “several of them are out of service due to the power outage caused by the fire,” he said. It takes “hours, or even several days” each time that operations are closed down or restarted, he said. Shell did not confirm media reports that the fire may have been caused by a short circuit. Instead the company said it would “wait to know more about the circumstances of the incident.” According to the regional security authority, there were no toxic materials in the smoke. Shell could not immediately disclose the extent of the damage, nor when the refinery would return to full capacity. The refinery covers the area equivalent to 800 football pitches, and its pipework, if laid end to end, would be long enough to circle the Earth four times.

Read more at: http://www.vanguardngr.com/2017/07/shell-shuts-europes-largest-refinery-fire/

Breaking News..
http://www.vanguardngr.com/2017/07/shell-shuts-europes-largest-refinery-fire/

Value Investors will take the opportunity to accumulate further...

Petronm's refinery caapacity is only 80,000 bpd which is only half of HengYuan's capacity at 156,000 bpd.. But, Petronm is currently trade at RM 9.19 Vs HengYuan RM7.80. This is not making logical sense,

We should see the judgement day when both release the Q3 results in August 2017. HengYuan's share price will fly like rocket and and overtake PetronM in August. The early sign of it is today.

We should see HengYuan to go above RM20.00 by November 2017 when it release its third quarter report.. At PE 6 times, it should be fairly trade at RM24.00

At P/E less than 2.5 times.. HengYuan should have massive improvement in cash flow and should be debt free within 2 years..

Earning Report Guidelines :-
http://stillwaterassociates.com/crack-spread-a-quick-and-dirty-indicator-of-refining-profitability/

As apended link, HengYuan is producing LPG, Propylene, Light Naphtha, Gasoline, Aviation Fuel (Jet Fuel), Diesel and Fuel Oil. ( http://hrc.com.my/index.php/operations-products/ )

1) To reflect the real scenario we should use 3-2-1 Crack Spread to gauge the profit of HengYuan
https://www.energystockchannel.com/3-2-1-crack-spread/
Q2 ( April- June : USD16.00-18.00 per barrel ) / Avg : USD17
Gross Profit @ 10 million barrels Capacity Per Quarter : USD170mil
Processing Cost per Barrel Per Quarter: USD 6.50 = USD65Mil
Profit Before Overhead Cost : USD105mil X 4.3 = RM 451mil
Overhead Per Qtr : RM120mil
Net Profit : RM451mil - 120mil ; RM331mil / EPS at RM1.10 for Q2

Remark :-
Curent, Crack spread is at 52 weeks high at USD20.34 per barrel for July..

3) Inventory losses can easily offset by forex gains..

We should able to see half year earning at estimate RM600 mil or around RM2.00 (plus minor 10%).. If we annualize, we should see HengYuan to achieve yearly profit of RM1Billion, at current price the P/E ratio is less than 2.5 times.

Reference for Refinery PROFIT Benchmarking :-
http://zeenews.india.com/companies/ril-q1-results-net-profit-up-28-to-rs-9108-crore-2025393.html

Reference for Peer Share Price Benchmarking (All Time High) :-
https://www.investing.com/equities/reliance-industries

Next Month.. Heng Yuan will heading to RM11.00

http://www.rigzone.com/news/oil_gas/a/151092/Indias_Reliance_Industries_1Q_Standalone_Profit_Up_9_Tops_Estimates

India's Reliance Industries' 1Q Standalone Profit Up 9%, Tops Estimates

July 20 (Reuters) - Indian oil-to-telecoms conglomerate Reliance Industries Ltd posted a nine percent rise in first-quarter standalone profit on Thursday, helped by higher margins from its core petrochemicals business.

Profit on a standalone basis, which only accounts for the company's refining, petrochemicals and oil and gas exploration businesses, rose to 81.96 billion rupees ($1.27 billion) for the three months to June 30, from 75.48 billion rupees a year earlier.

Analysts on average expected the company to post a standalone profit of 79.93 billion rupees, according to Thomson Reuters data.

Gross refining margin, or profit earned on each barrel of crude processed - a key profitability gauge for a refiner, was at a nine-year high of $11.9 per barrel for the quarter, outperforming the benchmark Singapore complex margins by $5.5 per barrel.

Reliance, controlled by India's richest man Mukesh Ambani, has two advanced refineries in the western state of Gujarat which can jointly process 1.2 million barrels per day of crude.

Standalone revenue from operations climbed 18.4 percent to 704.34 billion rupees. Refining and petrochemicals contribute around 90 percent to overall revenue and profit of the company.

On a consolidated basis, which includes the company's U.S. shale gas, retail and telecom operations, profit came in at 90.79 billion rupees, the company, which operates the world's largest single location refining complex, said.

Outstanding debt as on June 30 was 2.01 trillion rupees compared to 1.97 trillion rupees as on March 31, Reliance Industries said.

($1 = 64.4300 Indian rupees)

(Reporting By Samantha Kareen Nair in Bengaluru; Editing by Keith Weir and David Evans)

HengYuan is deeply undervalued stock based on single digit P/E.
Any short-term volatility is indeed an good opportunity for long term investors to averaging up.
For serious investors, they will just accumulate below fair value and waiting for the stock to unlock its full potential and waiting for dividend pay out in future.

The debts of RM1.2 Billion (Previously under Shell and now refinance by new shareholder of HY) is mean for working capital and can easily to be offset by reducing inventory. The strong earning capability of RM800 million to RM1.2 Billion within a year can reverse the huge debt exposure to debt free within one to two years.

The additional investment of RM700mil to upgrade the facility to meet EURO 4M standard at 8 million barrels per year (1 barrel equal to 158 litres) can give ROI within 3 years looking at premium per titre at 25 cents.

In fact, HengYuan's fuel products (EURO2M ) is only comprise of 20%, the rest of crack products acan sell at higher profit margins. So, that is higher profit for at least next 2 quarters based on crack spreads future.

Posted by 360Capitalist > Jul 28, 2017 09:56 AM | Report Abuse

Master Ooi Teik Bee's projected EPS at RM 2.00 for 2017 is very conservative. I believe within 2 Quarters, HengYuan is possible to achieve 80-90% of OTB whole year target.

Ans : Many readers always said that my target price is always very high, hence I reduce my expectation so that I cannot be wrong.
I said conservatively ... I repeat ... conservatively forecast EPS for 2017 is 2.00.

I have a better number in my mind, never say it out my real expectation.

Thank you.
Ooi


The TP should be up up up

Master Ooi Teik Bee's projected EPS at RM 2.00 for 2017 is very conservative. I believe within 2 Quarters, HengYuan is possible to achieve 80-90% of OTB whole year target.

http://www.cmegroup.com/trading/energy/refined-products/singapore-mogas-92-unleaded-platts-brent-crack-spread-swap-futures.html

August Crack Spread at USD10.22..
Higher than Q2 USD 7.00-USD8.50.

If by September, The Mogas Crack Spreak 92 still maintain at USD10.00, HengYuan will have likelihood to achieve Gross Profit at USD10.00 X 10mil barrels = USD100mil @ exchange rate RM4.25.. RM425mil - RM125 mil (Operating Expenses) = RM300mil (Net Profit).
We have good chance to see Q3'2017 EPS @ RM1.00 (not taking into account of inventory gains n Forex gains)..

Profit & EPS Summary :
Q1) RM279 mil / RM 0.92
Q2) RM210 mil / RM 0.70
Q3) RM300 mil / RM 1.00 (Crack Spread Avg USD 10.00)
-----------------------
RM789 mil (Estimate Based on Crack Spread Average Price)

Estimate EPS for 3 Qtrs : RM2.60

http://www.thestar.com.my/business/business-news/2017/07/27/shell-profits-triples-on-stronger-refining-and-oil-prices/

Don't worry.. Part 2 `Biggest Winner of Refinery Margin Rally' write up coming...

All road blocks will be cleared until announcement of Quarterly Result...

EPS RM2.00 is hugely underestimate HengYuan earning potential. Conservatively HengYuan ican easily achieve RM3.00 based on strong crack spread and huge demand of refined products.

https://www.energystockchannel.com/3-2-1-crack-spread/

Crack Spread at 52 weeks high...USD20.00 ..

据了解，并购后的马来西亚恒源炼油公司股价由当初交割时的2马币，上升到现在的3.8马币。而恒源石化通过控股，把国内民间自主研发的汽油脱硫先进技术推向国际——该技术在马来西亚恒源炼油公司的推广，降低了投资成本和运行成本，缩短了建设周期。

“中国地方企业进行国际并购，对中国的技术和装备制造也起到了载体作用。”王有德表示，恒源石化控股之后，为马来西亚壳牌炼油公司带去国际先进的产品升级技术，实现了中国成熟石油加工工艺与马来西亚广阔市场需求的有机结合；同时进一步优化了恒源石化的盈利模式，通过增加对大宗原料的保值对冲和汇率的保值对冲，真正解决了敞口原料的价格波动风险和汇率波动风险，使公司长期持续盈利有了保障。

http://www.cmegroup.com/apps/cmegroup/widgets/productLibs/esignal-charts.html?code=D1N&title=AUG_2017_Singapore_Mogas_92_Unleaded_%28Platts%29_Brent_Crack_Spread_&type=p&venue=0&monthYear=Q7&year=2017&exchangeCode=XNYM

This chart will explain why HengYuan will achieve record breaking profit in 2017...
HengYuan will go to RM8.00-10.00 by September

Malaysia : Oil Refinery Players :-
1)Melaka I Refinery (Petronas), 100,000 bbl/d (16,000 m3/d)
2)Melaka II Refinery (Petronas/Phillips 66), 170,000 bbl/d (27,000 m3/d)
3)Kertih Refinery (Petronas), 40,000 bbl/d (6,400 m3/d)
4)Hengyuan Port Dickson Refinery (Hengyuan), 156,000 bbl/d (24,800 m3/d)
5)Petron Port Dickson Refinery (Petron), 88,000 bbl/d (14,000 m3/d)
6)Kemaman Bitumen Refinery (TIPCO), 30,000 bbl/d (4,800 m3/d)

Remarks :
HENGyuan Vs PetronM
HengYuan's refinery capacity is twice the size of Petron Malaysia, hence with good crack spread we should see HengYuan's profit will be double of PetronM's earning potential.
It should be a better bet in terms of profitability for HengYuan against PetronM.
Theoritically, HengYuan's share price (300mil shares @ RM5.80) should be higher than PetronM (279Mil shares @ RM8.50).

It is about time for HengYuan to catch up again PetronM. I believe within 6-9 months, HengYuan's share price should be running ahead of PetronM.

Malaysia : Oil Refinery Players :-
1)Melaka I Refinery (Petronas), 100,000 bbl/d (16,000 m3/d)
2)Melaka II Refinery (Petronas/Phillips 66), 170,000 bbl/d (27,000 m3/d)
3)Kertih Refinery (Petronas), 40,000 bbl/d (6,400 m3/d)
4)Hengyuan Port Dickson Refinery (Hengyuan), 156,000 bbl/d (24,800 m3/d)
5)Petron Port Dickson Refinery (Petron), 88,000 bbl/d (14,000 m3/d)
6)Kemaman Bitumen Refinery (TIPCO), 30,000 bbl/d (4,800 m3/d)

Remarks :
HENGyuan Vs PetronM
HengYuan's refinery capacity is twice the size of Petron Malaysia, hence with good crack spread we should see HengYuan's profit will be double of PetronM's earning potential.
It should be a better bet in terms of profitability for HengYuan against PetronM.
Theoritically, HengYuan's share price (300mil shares @ RM5.80) should be higher than PetronM (279Mil shares @ RM8.50).

It is about time for HengYuan to catch up again PetronM. I believe within 6-9 months, HengYuan's share price should be running ahead of PetronM.

Malaysia : Oil Refinery Players :-
1)Melaka I Refinery (Petronas), 100,000 bbl/d (16,000 m3/d)
2)Melaka II Refinery (Petronas/Phillips 66), 170,000 bbl/d (27,000 m3/d)
3)Kertih Refinery (Petronas), 40,000 bbl/d (6,400 m3/d)
4)Hengyuan Port Dickson Refinery (Hengyuan), 156,000 bbl/d (24,800 m3/d)
5)Petron Port Dickson Refinery (Petron), 88,000 bbl/d (14,000 m3/d)
6)Kemaman Bitumen Refinery (TIPCO), 30,000 bbl/d (4,800 m3/d)

Remarks :
HENGyuan Vs PetronM
HengYuan's refinery capacity is twice the size of Petron Malaysia, hence with good crack spread we should see HengYuan's profit will be double of PetronM's earning potential.
It should be a better bet in terms of profitability for HengYuan against PetronM.
Theoritically, HengYuan's share price (300mil shares @ RM5.80) should be higher than PetronM (279Mil shares @ RM8.50).

It is about time for HengYuan to catch up again PetronM. I believe within 6-9 months, HengYuan's share price should be running ahead of PetronM.

Malaysia : Oil Refinery Players :-
1)Melaka I Refinery (Petronas), 100,000 bbl/d (16,000 m3/d)
2)Melaka II Refinery (Petronas/Phillips 66), 170,000 bbl/d (27,000 m3/d)
3)Kertih Refinery (Petronas), 40,000 bbl/d (6,400 m3/d)
4)Hengyuan Port Dickson Refinery (Hengyuan), 156,000 bbl/d (24,800 m3/d)
5)Petron Port Dickson Refinery (Petron), 88,000 bbl/d (14,000 m3/d)
6)Kemaman Bitumen Refinery (TIPCO), 30,000 bbl/d (4,800 m3/d)

Remarks :
HENGyuan Vs PetronM
HengYuan's refinery capacity is twice the size of Petron Malaysia, hence with good crack spread we should see HengYuan's profit will be double of PetronM's earning potential.
It should be a better bet in terms of profitability for HengYuan against PetronM.
Theoritically, HengYuan's share price (300mil shares @ RM5.80) should be higher than PetronM (279Mil shares @ RM8.50).

It is about time for HengYuan to catch up again PetronM. I believe within 6-9 months, HengYuan's share price should be running ahead of PetronM.

Bonus issue ? when ? ratio ??

VS Industry Berhad's subsidiary VS International Limited listed in Hong Kong Stock Exchanges announced Right Issue Plan. Good news as existing capacity in China not enough to cope new orders.

Reasons for the Rights Issue
To cope with the increasing business needs, the Board plans to apply the Rights Issue proceeds to the
Group’s operations in Zhuhai, which includes expansion of its production capacity and storage capacity;
and enhancement of its production efficiency to negate some of the impacts from rising wages.
Increasing production capacity
To increase the production capacity, the Group decides to upgrade one of its 12 SMT (surface mounting
technologies) assembly lines. The SMT assembly lines are mainly for the production of electronic
products, and the one particular assembly line that the Group is upgrading has been in use for more than
15 years. The upgrade would replace the current single lane process with a dual lane process, which will
result in an increase of output capacity by at least 100% against the outgoing SMT assembly lines.
16
The Group is also expanding its production capacity by purchasing new high tonnage injection machines.
Not only the products produced by the high tonnage injection machines can provide a better profit
margin, its usage is also more flexible and can be used to substitute lower tonnage machines. At the same
time, the high tonnage injection machines can be used in the manufacturing of plastic parts for larger
products, such as air-purifier and air-conditioner. Recently, the Group has been in negotiation on contract
that would require a higher number of high tonnage injection machines than the number of machines the
Group currently possesses. The Directors are of the view that the expansion will significantly increase
the Group’s competitiveness in the high tonnage segment.
Increasing storage capacity
Construction of new warehouses started in mid-late 2016. Completion would take place by phases with
the final one by the end of 2017. The Directors consider additional storage capacity is necessary as (i)
the existing warehouse capacity is very often fully utilised during peak season which restricts the Group
from serving new orders effectively; and (ii) the Group, as mentioned above, has been in the process of
signing new manufacturing contracts. Part of the new warehouse has already been in use for storage of
inventories relating to large manufacturing contract contributing to the growth for the six months ended
January 2017.
This additional storage initiative is expected to incur an investment of about HK$35 million. As of 30
June 2017, approximately HK$32 million has been incurred and was financed by a mix of short-term
bank borrowings and operating cash flow. The Directors prefer to match this fixed asset investment with
a long term financing source. As a result, the Directors intend to use part of the net proceeds from the
Rights Issue to repay the short term bank borrowings. Details are available in the section headed “Use of
proceeds” below.

Sunsuria will be partner and proxy to China's Citic bids for Mega Projects in Malaysia... Huge potential

This week should go up as stronger MYR will boost VS's share price.

VS Industry earnings outlook riding on key clients’ healthy growth prospects | http://www.klsescreener.com/v2/news/view/255257

https://www.linkedin.com/pulse/gm-vs-jim-super-cruise-rewrites-roadhouse-roger-c-lanctot

Seeing Machines / General Motors

@greatful, Why 8 Quarters ? What is the expected revenue per quarter by then ?? Appreciate your reply.. Thank you

When City of Dream will start construction ? The delay may force company to pay hefty penalties to buyers,,.

PAT RM50mil profit really very good and beyond my profit expectation of RM40mil. With this, we should see more upside on profit in Q4 RM60mil -70mil with planned increase in production capacity on May 17 and Oct 17.

Hopefully we can see gradually increase in share price from RM2.03 to 2.50.

Agree with Bigbull99.. with added production capacity of 2 VI lines, it should increase revenue and profit. VS should be hitting RM40mil profit for Q3 FY17, anything above RM40mil is consider big bonuses for investors. Hopefully with strong results, we would see BREAKOUT play n stocks prices hitting new height soon.

I think if VS can achieve net profit of RM38mil (100% upside) for Q3FY17 is considered very good as last year it only managed to achieve RM19mil.

SuperPanda RM65mil is way too high..

E&O share price should move up after price fixing for the 66 million shares restricted placement to KWAP.

Market action will determine the price. I would say upside bias for the immediate future. The scarcity of land in surrounding area in Prime area like Gurney, Pulau Tikus and Tanjung Tokong will determine E&O future as it is the only player with land bank exceeding 100 acres in these prime areas. Nobody get close. Don't look at short term. Invest for 5to 10 years, you will see the land value appreciation above RM1000-3000 psf within this time frame. By the time, the land RNAV for STP2A, 2B & 2C is RM22.8B (RM1100 psf) upon completion in 2022, which is 10 times higher than E&O market capitalization of today. We have nothing to lose or invest with minimum risk if we can afford to hold for 5 years and potential for huge returns in future, maybe 10 times if we take into estimate GDV consideration of RM60B.

I am sure, this is the last piece of land reclamation near Gurney Drive, the only prime area in Penang, at least for next 20 years.

Upgrade to BUY with TP of RM2.68


Secured strategic investor for STP2A. Eastern & Oriental Berhad (E&O) announced that it has secured Kumpulan Wang Persaraan (Diperbadankan) (KWAP) as the level 1 strategic investor for Seri Tanjung Pinang (STP) 2A project. A special purpose vehicle (SPV) will be established to undertake the development and sale of the STP2A development land where KWAP will be taking 20% equity stake for RM766m while E&O will hold the remaining 80% stake. Separately, E&O proposed to issue 66.1m shares to KWAP, representing 5.3% of E&O existing number of enlarged share capital, at an issue price within the range of RM1.84-RM2.04.

STP2A land valued at RM530psf. The 20% equity stake disposal to KWAP is equivalent to the value of 8 plots of land in STP2A with total land size of 1.45m sf that will be disposed to KWAP, valuing STP2A land at RM530psf. The transacted price of RM530psf is a positive surprise, higher than our previous land value assumption of RM400psf. We believe value of reclaimed land in STP2A will be crystalized with the entry of KWAP as it provides higher valuation benchmark for the whole STP2 project with total reclaimed land to be 760 acres.

Positive on the exercises as net gearing will be reduced. We are positive on the monetisation of STP2A land and the placement exercise as it will improve balance sheet of E&O. Post shares placement (assuming placement price at RM1.90) and receiving the 10% of disposal consideration, net gearing of E&O is estimated to fall to 0.57x from high net gearing of 0.74x as at end 3QFY17. FY17 and FY18 earnings estimate are unchanged as first launch of property projects in STP2A will only take place in 2H19.

Upgrade to BUY with TP of RM2.68. We upgrade E&O to BUY from Neutral with a higher TP of RM2.68 after revising higher value for STP2 project in our RNAV valuation. We have reduced our RNAV discount to 55% from 60% previously as we anticipate improving balance sheet of E&O. We are turning positive on E&O as the entry of KWAP as strategic investor of STP2A unlocks the value of STP2 project and further ensure the execution of STP2A which is an all-important project to E&O.

Source: MIDF Research - 31 Mar 2017

Waiting for Analyst Report to upgrade TP.. should move up soon

E&O shares will go to RM3.00 to RM3.50 range to cater for resitricted offer for KWAP block.
Bear in mind Terry Tham bought from Sime Darby big block at RM2.90 mid of last year. And also STP2A land cost valuation at RM3.8B or RM3.16 per share and not taking about GDV and STP2B & 2C. Next week, will be exciting week for Property Counters in tandem with EcoWorld International Bhd IPO listing.

goldman_trader Even limit up maximum can go to RM2.75.. How to go RM3.00 tomorrow ??

At least above RM3.00

E&O will go up like IWCity... limit up.
Terry Tham's cost is RM2.90

Hibiscs will be good tomorrow. Very likely will gap up on opening.
Dnex profit jumped because of profit from associate Ping Petroleum Limited. Ping Petroleum's profit mainly from Anasuria Oilfields. Ping Petroleum and Hibiscs is equal partner in Anasuria North Sea ventures.

Calvintaneng,, you are the only stupid and idiot guy and always want to let the whole world know you are damn stupid...