I will leave you to see if it's good.
Gregorian, 5% exchange....is this the announcement. Timing seems right

Hv a read

http://www.theedgemarkets.com/sg/node/244133

Moving forward ....http://www.theedgemarkets.com/sg/node/245105
1. STP2 reclamation to start next month ie December
2. UK PLC - all document submitted - awaiting UK Listing Authority
3. RM635M new sales 6MFY2016 - already achieved
4.RM825M Unbilled as of Sept
5. New launches Tamarind 2 Penang, Avira Garden Terrace Medini Iskandar
6. 72% of 3years PAT target already achieved


All in place and ready for buy in

The 1.8 TP is akin to saying you bought a house example wit loan 1.035M and your gross salary is 173K a year. (Same % if you consider 1.035B loan and 173M earning) while serving the house loan of 1.035, the value of the house appreciate say on 3rd year to 1.6M. You hv a choice to sell or continue. If you continue to serve the installment from the loan it is akin to the value of 1.8 TP, however if you choose to exercise and sell at 1.6M it is approx 60% gain. Translated to TP = 1.8 * 1.6 =2.88 or more

Gray, think of it this way, If you hv a gold mine, sure of having gold, are you rich?
Yes, if you sell the gold mine
No, if you want to mine the gold yourself. This is because, you know the gold inside the mine is worth more than the 200% to 300% profit margins you can get now if you sell

Correct?

Now to mine the gold, they need a capital of Rm1.035B vs their annual earning expected at Rm173M which is 16% of the capital needed. They hv a few choices
1) Loan + payoff - by selling 88acres of 253acre for Ph2A and paying off the entire Phase loan
2) Loan + JV - to keep debt low at initial stage
3) without taking loan, sell their right alone - this being the rights of all the approvals given by state, federal, environmental, contractors etc. this would have been the easiest to get paid for the 4 yrs of work done since 2011

They hv obviously chosen 1) or 2) which is to mine the gold themselves and to either get a partner or partial sell whichever gives most advantage. To add on today's posted information says that Penang under DAP has doubled the investment to 48B (2008-2014) from 24B (2001-2007) same period. On top of that the first quarter 2015 is very encouraging.
This means the environment to mine the gold at this point is optimum where the infrastructure, the sustaining value is on the rise.

EPF bought anothe 894k on 18th

Another EPF buy just announced. Gregorian hope you can enlighten further on announcement

To note the UK PLC structure in place. Final announcement anytime. Get ready to rock and roll

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4839765

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4769653

Fact 21. Base on unbilled of 928Million as of Aug 2015. Note also that the PAT/Revenue = 20% to 25%. Current the achieve PAT = 120(2014FYE) + 157(2015 FYE) + 24(1st Q 2016) = 301 (vs 450 target by FYE 2016). It is already at 67% of target.
Meaning short of 150M for next 3Q till Mar 2016.
Taking the earlier PAT/Revenue of 20%-25%, this means 928M unbilled once recognise (billed) = 25% * 928 = 232M (vs target balance PAT of 150M.
Hence if they recognise all the unbilled ( even without new sales) they would hv surplus earning/profit of 232-150 = 82M

http://www.easternandoriental.com/uploads/presentations/88th_AGM-presentation.pdf

http://www.themalaysianinsider.com/malaysia/article/fitch-says-malaysian-banks-have-sound-buffer-to-cushion-against-risks


http://www.themalaymailonline.com/malaysia/article/moodys-malaysia-very-low-political-risk-despite-1mdb

Following the peak of RM3.18 EnO share in July 2014, the price fell due to delay in STP2 tender and UK 3rd purchase ie Esca house which cause concern of financing and debt.
This two has been answered, EnO has awarded the tender, and will be starting reclamation in December 2015, while UK PLC is anytime in December next month.

While the two mention has brought back the same scenario when its share price peaked in July 2014, it is also a better scenario right now compared to July 2014 because a lower reclamation cost is captured while clarity is given for UK foray and more options is presented with STP2 approvals all given and more foreign marketing channels will make Penang attractive with our low exchange rate!!

Gentleman, E&O has everything to move north. We should not be disturbed by noices. I will list again the reasons so that we are all focused
1. EnO has gotten all approval for STP2 - DEIA completed, State Govt Approval, Fed Govt Aporoval, Start work approval,
2. EnO has awarded tender to CCCC - this mean their reclamation cost has been hedge.
3. EnO has secured bank loan for STP2 - This means they can start work and bank debt will only be based upon disbursement ie progressive disbursement
4. Fact 1 - the delayed in the tender award earlier was due adjusted cost becoz of lower fuel and construction. The cost initially ar rm150psf has been further reduced
5. Fact 2 - The selling price psf of the reclaimed land WITHOUT DEVELOPMENT is RM400 to 500psf. This mean EnO only need to sell 88acres of 253acres in Phase 2A and they will have surplus income. Their cost for Ph2A is RM1.035B while their bank loan is RM1.084B and selling 88acres at RM400 is RM1.5B. A whooping surplus of RM400Million while still having 165 acres additional land in ph2A (= 253-88= 165) totally paid and having a choice to sell or develop or JV
6. Fact 3 - UK listing on AIMS will bring E&O debt to 0.3x from 0.6
7. Fact 4 - Penang GDP is set to grow at 7.4% ie 1% above Federal GDP. Hence they are marginalized in the recent budget
8. Fact 5 - with the state government awarding the PDP and PTMP to Gamuda, the STP2 project will have a seamless end to end to mainland. This include the LCE bypasses to Gurney, Ayer Itam while underground tunnel will provide 3rd link
9. Fact 6 - more foreign investment and jobs set for mainland while connectivity infrastructure (First Bridge, PSB and now Tunnel)
10. Fitch and Moody has given more positive outlook than initially thought
11. EnO has land in Guthrie Corridor (Elmina West) Iskandar (JV with Temasek and Khazanah), KL City, and Penang. This gives them Development choices in the unforeseen 2016

Nice volume, but not aggressive yet

Sime used to own 32% of E&O, exercises on E&O never affect Sime. How come when E&O own 30% of PLC which has proven exchange rate gain and appreciation, would be of concern??

Mightymouses, 2015/2016 will clear all the earlier debt concern arising from UK PLC since first purchase in 2012, STP2. How?
Firstly UK PLC will be on its own as a listed org generating £36Million (RM239M) for market cap, with only 30% exposures to E&O. At that amount at 30% (RM71Million) vs current RM173 Million Annual Revenue it will be more contribution than debt because as shared, the exchange rate in £ is already more than that if they were to sell they will gain in appreciation and exchange rate. Just on exchange rate gain without including appreciation, Prince House is already a gain of RM32Million. What abt the rest of the UK property?
If they ever at any point want to sell their other UK property, they would already hv a clean profit to move forward. As for STP2, 88acres will cover the entire Ph2A of 253acres. Ie RM1.035M (cost to reclaim 253acres Phase2A ) vs RM1.084M bank loan vs RM1.5 M (selling just 88acres Phase2A )

Therefore if they sell their approval rights of STP2 or sell UK properties or their 30% in PLC or 88acres of Ph2A, it will already be extraordinary gain. Either one of their option would be sufficient leverage to move forward

For those who want hard fact, Princess House was bought in 2012 at £20.25Million at exchange below 5. Just on exchange alone current value is RM32 Million more

http://www.property-report.com/eo-makes-first-major-overseas-purchase/

For those reading, check for yourself when those UK propertes were bought. They bought the property much before our currency decline. This means they will gain profit from selling (due to appreciation) but also gain from the exchange rate.
Easy to calculate, the UK PLC will raise RM239Million ie base on current exchange 6.56 approx £36Million. Roughly base on the restricted it is only roughly 30p per share.
If EnO decide to sell all their PLC shares (30% ownership) after the listing, they can rake in RM71.7 Million from sale without considering escalation of the exchange rate.
So being EnO they have a few choices of whether
1) to sell their 30% stake in PLC when the exchange rate escalate after the listing
2) to sell the properties with profit and exchange rate gain and rake in the profit and gain base on their 30% ownership
3) continue to grow the properties and base in London
4) sell their value in the EnO Bhd build with all ready approval of STP2 and UK listing at a premium price of above RM2.90 to next TP of RM3.50
5) others - depending on appreciation, exchange rate, inflation, etc

They are now left with Hammersmith and Loxley. Pls comment with facts as your comment suggest they are only buying the property now.

Ks55 the asset in GBP was purchased 2 to 3 yrs back. They already enjoyed one sale of UK property with good profit. What are you talking about?

1 Warrant free base on 1 share entitlement for every 10 EnO.

I believe the category listing on AIMS LSE is Household Goods and Home Construction. This was the closest I could find on AIM. Have a look at the development price trend. Don't look at the price itself because some are very large organization established but the trend should tell you something.

http://www.londonstockexchange.com/exchange/companies-and-advisors/aim/for-companies/information-search/aim-company-search-result.html?codeName=&admissionInLast=&ukRegionId=&internationalRegionId=&sectorId=3720&nominatedAdviserId=&brokerId=&search=search

It's free. It's in £. Don't like sell. It's your closest to hedging in foreign currency under this climate without losing in current exchange rate.

Gregorian, is this the announcement or something else for Nov/Cecember

(i) Restricted offer of up to 125,495,072 new ordinary shares of £0.10 each in E&O PLC (“Shares”) to E&O stockholders whose name(s) appear in the record of depositors of E&O as at 5.00 p.m. on the entitlement date to be determined and announced later (“Entitlement Date”) on a pro-rata basis of one Share with one free warrant to be issued by E&O PLC (“Matching Warrant”) for every 10 existing E&O ordinary stock unit held as at the Entitlement Date (“Proposed Restricted Offer”); and

Epf buys 10% into MahSing. Epf is buying into E&O. Property has bottom out?

http://www.thestar.com.my/Business/Business-News/2015/11/07/EPF-now-owns-10-percent-of-Mah-Sing/?style=biz

Time to enjoy as EnO shoots soon.....

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4914433

We will know if this is true end of Nov

Rumor is that Sime is the JV partner. Gregorian, can you confirm? If it is true, it also makes sense since Sime was all along awaiting STP2 approval and their other business has no leverage compare to properties

Something is happening. The volume daily is now 2Million with Sell volume ahead of Buy. Earlier was Buy volume higher suggesting panic selling but the Sell volume done went ahead later suggesting collection in progress. EPF is back buying E&O and similarly Sime and GK.
Jul-Sept results must be good, coupled with the announcement of UK Plc and hopefully JV partner predicted

Volume at 3pm was 1.2M vs now 4.30pm at 2.1M a 900k volume increase in 1.5 hrs filled by buy volume. Sellers impatient already

Sell and buy volume are closing now. Buy volume went up from 50% vs sell volume and now at 90% of sell volume. Panic selling by sellers likely. Buy rate rising to mid ground at 45%.

Feel free to sell, my comment is only to create awareness and neither a buy or sell call!

Relax ks55, I am not saying this is TA shared. This is an area where we determine what some Hv shared of the high buy volume and queue but they did not commit by buying at a higher price and the rationale is what I Hv explain. Also look at the number of buyer vs number of seller. Number of buyer very little past few days but their volume is huge should tell you something

Dear All, pls don't be despair yet. Let me explain with facts
1. Look at the Sell volume vs Buy volume done - the sell volume is double the buy volume and if you look at the buying and selling by time, you will see the buy done is at 100 shrs or 200shrs each time only to bring the price down and that's why the buy volume is so low.
2. Look at the buy rate - the buy rate is at oversold position ie approx 30% or lower due to the frequency of the sell which is lower but higher volume
3. Look at Total Volume - again the volume pass 1.2 Million by mid day and volume for past 3 days have been above a million and yesterday was above 2Million


Base on the 3 points below I believe somebody is collecting silently for the Nov or Dec announcement. This can be seen as they collector does not pursue to buying but rather wait at each point to buy hence the buy rate is near at Oversold position while selling volume is high. This should shed some light

Thank you EnO for doing a proper job in every aspect of the STP2 project starting fr DEIA, to all the approval (fed, state, forum, start work etc) to securing financing to reimbursing the fisherman. All within the last 3.5yrs. Comparing this with the Johor reclamation which was double in size, the process was less than a year and initially started without DEIA.

http://www.sinarharian.com.my/edisi/utara/rm2-21-juta-saguhati-untuk-nelayan-1.446614

E&O initially wanted to go for Bank Guarantee but change to Bank Debt. You would only do that if you know the loan can make more money

If Sime buys over, it cannot be lower than 2.90 it sold to TT earlier because none of the approval were completed during the SnP then

Once E&O UK PLC complete, and the option for package 1 identified (JV or Sell right or ...) it will be definitely in the RM3 region or higher. As of now, just the DEIA approval, State Govt approval, fed govt approval, reclamation start approval and reclamation tender awarded with a low cost alone is already worth a billion and the low price at RM1.56 maybe a take over possibility

Do your homework on the warrant purpose, and then study the RM3.18 on July 16 2014 against the analyst comment on debt followed by STP2 value with and without development, GDC and GDV and other options.

The drop was due to UK foray 3rd buy where debt ratio increased to 0.6 while STP2 was not awarded then. With UK Plc expected next month the debt ratio reduce to 0.38 or lower, it will retrace back to RM3 above. But for now TP1 first RM2.60

Base on the report, the Phase2A + Gurney Foreshore = Package 1= 253+131 =384 with cost RM1.035B

During the EGM it was mentioned that the cost would roughly be 150psf reclamation and the delay then for the award was due to fuel cost and construction cost adjustment which was downwards.

When I use the 150psf to calculate, I got RM2.51B
=1.673e+7*150 (where 1.673e sq feet conversion from 384 acres)
= RM 2.51B
This means they got additional substantial reduction from the expected 150psf reclamation cost


http://www.theedgemarkets.com/my/article/china-firm-bags-rm232b-stp2-reclamation-job-penang-0

Base on the report, the Phase2A + Gurney Forore = Package 1= 253+131 =384 with cost RM1.035B

During the EGM it was mentioned that the cost would roughly be 150psf reclamation and the delay then for the award was due to fuel cost and construction cost adjustment which was downwards.

When I use the 150psf to calculate, I got RM2.51B
=1.673e+7*150 (where 1.673e sq feet conversion from 384 acres)
= RM 2.51B
This means they got additional substantial reduction from the expected 150psf reclamation cost


http://www.theedgemarkets.com/my/article/china-firm-bags-rm232b-stp2-reclamation-job-penang-0

Commencement of reclamation by end of this year

Terry Tham kept his promise of inshallah 4weeks and tomorrow is exactly 4weeks. I love you Terry!!!,

Thank you Rajuan_Singh. Read the announcement started way back in 2011 and finally....finally!!!!!!

Few reason to Buy E&O - SUMMARY
1. Today closing volume @encouraging 1.356 Million transaction w 608k queuing to buy at 1.56 with buyrate at 80+% 8minutes from closing
2. Buy back treasury for dividen payout completed, distributed and should go up tomorrow onwards
3. Last 1 week - High buy rate but price remain suggest collection in progress
4. STP2 announcement anytime now which will add the deep value and RNAV of E&O and more options to move forward (JV, sell, develop, ...) With valued Ph2A at RM3.9b. This does not include Ph2B and 2C
5. UK PLC will ensure debt ratio is reduce to 0.38 (fr 0.6) while contributing 30% to parent. Listing on AIMS will happen by year end 2015. Noting that Loxley and Hammersmith Property will be 100% owned by E&O PLC
6. Target earning for 2015/2016 remain unchanged at 173Million and overall 3 year target at 450Million still on track. Noting that E&O has in last 10 years achieved 9/10 of the target earning.
7. With low debt, high RNAV, with earning on target and past earning target achievement, E&O valued at between RM8 to RM10 per share upon the STP2 tender award (expected within this 1month -anytime now to November end), will be at steep discount 80.5%.. Even at TP2.60 (Public Bank call) it will be at 67% discount from it actual value.

Since no cooling further for property, and looking at previous Peak on July 16 2014 at rm3.18 closing the PE was 3.18/0.124 = 25.6. This was in anticipation of STP2 to attain deep asset value and RNAV. (Refer to earlier calculation done by all weeks ago for the value) now that STP2 award is within this two weeks or so, with the expected EPS to be at 0.137 (ie 173Million expected profit against 1.259billion shares) , the immediate peak price rally expected will be 25.6*0.137=3.50

On top of that, RM238 Million in value will be raise from UK Plc on AIMS by year end, of which 30% will be owned by E&O Bhd while cutting their debt ratio from 0.6 to 0.38 or lower from this exercise.

With the two exercises happening, one which bring in the RNAV value of the share to between RM8 to RM10 (depending on the Gross cost difference reclaim and land value - refer to the earlier calculation ) the cost expected for reclamation at 150psf while value is between 400 to 500psf. This does not include the GDC and GDV.

Hence even at RM3.50 against RM8 per share (assuming the lower of the value at RM400psf), it is already a steep discount. (4.50/8.00 *100= 60% discount) and this would be higher if we use RM10 with 500psf value. This entrench the deep value discussed earlier.

Finally the UK PLC held at 30% interest by E&O Bhd can also be viewed as raising funds while the PLC is a caretaker because E&O Bhd can exercise the MGO at any point later with additional 3% interest take up once things pick up later

In short if seller dictate selling 1cents lower to buyer price at 100 lots each time, it could be viewed as blocking and not necessary having a high sell volume queue to block

Oldcable, first I would like to say anything is possible however it is strange only this few day nearing the 1mth after EGM (29 Sept) that this behavior happen. Everyone is expecting the 4weeks or so mentioned by Terry on Tender award. Secondly this type of game (low buy rate but high volume) is dictated by seller. If buyer dictate and willing to pay 1cent above at seller price, buy rate will be high. So in this case is seller dictate selling 1cent below to buyer price.

Awaiting the blast off...