KUALA LUMPUR (Nov 26): Taliworks Corp Bhd's net profit almost doubled to RM19.68 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM10.01 million a year ago, on higher contributions from the construction and water treatment, supply and distribution divisions.

In a statement today, the infrastructure company said this was further supported by lower cost of operations specifically from lower rehabilitation and maintenance cost incurred in its Langkawi operations.

"Additionally, the group accounted for its share of toll compensation of RM4.1 million received in respect of the non-increase in scheduled toll rate hike on Jan 1, 2016 for the New North Klang Straits Bypass Expressway," Taliworks added.
This resulted in higher earnings per share of 0.98 sen for 3QFY18 compared with 0.5 sen for 3QFY17.

Quarterly revenue was also up 32.4% to RM98.36 million from RM74.31 million a year ago.

The group also declared a third interim dividend of 1.2 sen per share amounting to RM24.2 million, for the financial year ending Dec 31, 2018 (FY18), payable on Jan 31, 2019.

For the cumulative nine months (9MFY18), the group's net profit jumped 94.5% to RM44.7 million from RM22.98 million, while revenue rose 17% to RM277.13 million from RM236.94 million in 9MFY17.

"The third-quarter results has somewhat given us a momentum towards year end and we will remain focused, and committed to our business strategy by leveraging on Taliworks' expertise and leadership," said Taliworks executive director Datuk Ronnie Lim.

"We believe we have the capabilities to maintain a healthy growth that would inevitably ensure clear earnings visibility and sustainable dividends to our shareholders," he added.

As at Sept 30, 2018, total receivables owed by Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH) to Taliworks stood at RM701.8 million, of which the total accumulated provision for discounting of said receivables made was RM185.6 million.

Good result but dividend is not as per expected although the profit is up for 4 consecutive quarters. Hope to hear a special dividend soon...

This is just Great....

Take opportunity to buy few lots to average down the cost..

KUALA LUMPUR: CIMB Equities Research sees low profit growth visibility for Tune Protect's travel insurance business in 2019 which was a drag on its net profit for the nine months ended Sept 30.

However, the research house said on Friday it was optimistic on the expansion of Tune Protect’s general insurance profit, as was reflected by the strong expansion in 9M18.

“As such, we continue to rate Tune as a Hold. The upside/downside risks for our call are a pick-up/slowdown in its premium growth,” it said. It reduced the target price from 93 sen to 75 sen.

CIMB Research said although Tune Protect’s 9M18 net profit only accounted for 66% of its full-year forecast and 65% of Bloomberg consensus estimates, it deem it as in line with expectations in anticipation of a stronger net profit in 4Q18F (vs. 3Q18).

“This is because 4Q is seasonally the strongest quarter for Tune Protect as the pick-up in travelling activities towards year end will benefit its travel insurance business,” it said.

Net profit rose by only 2.1% on-year in 9M18, dragged down by the 5.8% on-year decline in the profit after tax (PAT) of its travel insurance business.

Conversely, its general insurance’s PAT increased 12.7% on-year in 9M18; we believe this was mainly due to lower claims ratio.

Gross written premium for its travel insurance (TI) business increased 6.3% on-year in 9M18.
However, the unit's 9M18 PAT fell 5.8% on-year due to higher management expenses, which pushed up TI’s combined (claims plus cost) ratio from 59.6% in 9M17 to 64.4% in 9M18.

“We retain our FY18F EPS but cut our FY19-20F EPS by 2.7% as we increase the assumed tax rate from 10% to 12%. This is because Malaysia's Budget 2019 states that Labuan's tax ceiling of RM20,000 will be removed in 2019.

“As such, the profit from Tune Protect's TI entity (about 60% of its net profit) in Labuan will be subjected to a tax rate of 3%, instead of a maximum of only RM20,000 before 2019,” it said

KUALA LUMPUR (Nov 16): Affin Hwang Capital Research has maintained its “Buy” rating on Tune Protect Group Bhd at 73 sen with a lower target price of RM1.05 (from RM1.20) and said Tune Protect saw a weaker 3Q18 net profit, of which was down 28.3% year-on-year (y-o-y) and 28.7% quarter-on-quarter (q-o-q).

In a note today, it said that as a result, 9M18 net profit saw a marginal growth of 2.2% y-o-y to RM38.5 million, coming in below house and street estimates.

It said given a lower underwriting profit (lower net claims and lower net commissions offset by higher management expenses) of 9M18, its pre-tax-profit of RM45.5 million (+3.3% y-o-y) was sustained by investment income and gains.

“Tune Protect’s outlook remains favourable, supported by strategic initiatives such as the Dynamic Pricing 2.0, a new digital platform and partnership with an Insurtech firm.

“Maintain Buy, Price Target unchanged at RM1.20 (based on a 1.45x P/BV multiple on CY19E EPS),”it said.

In a statement today, Tune Protect said gross written premiums rose 8.7% year-on-year to RM122.2 million in 3QFY18, contributed by the digital global travel and Malaysia general insurance businesses.

For the cumulative nine months (9MFY18), the group's net profit rose by a marginal 2.2% to RM38.52 million from RM37.68 million a year ago, while operating revenue increased 5.4% to RM425.7 million from RM404.08 million in 9MFY17.

On prospects, Tune Protect said it expects a more challenging fourth quarter.

"Besides the further impact from debt provisioning under the expected credit loss model, the group will also begin to unfold its cost rationalisation plan and roll out its strategies under its business transformation plan.

"As such, the remaining months ahead are expected to be a period of consolidation in resources and business approach, with lower expectations in the overall profit prospects for the full year," it added.

"However, these strategies are envisaged to give rise to more sustainability and growth in the mid to long term after the challenging initial period," it noted.

As the revenue is still slightly higher than previous same quarter last year, need to know the reason why profit dropped. Anyway it is not that bad (as the share price is dropped quite a lot) as per news spread around recently.

Good news..
Taliworks Corp Bhd has bagged a RM42.36 million contract from Setia Haruman Sdn Bhd to build a reservoir called 76ML R.C. Reservoir R4 and to undertake related ancillary works at Cyberjaya, Selangor.

Its wholly-owned subsidiary Taliworks Construction Sdn Bhd has accepted the letter of award from Setia Haruman for the proposed project, which will commence on Nov 15 this year, with completion on Nov 14, 2021.

Take opportunity to collect few more lots at low... Patiently wait for next dividend announcement.

Take opportunity to accumulate more based on EPF kept accumulating recently. In fact after holding some lots for 1.5 yrs, it is still gaining at this price ( due to bonus 4:3 issuing 15 maths ago)

Good to hold at least for mid term as I believe the dividend payout is still at least at 2 cents per share per quarter.Assume worse case no special dividend payout and cut off at RM1.60, after bonus is RM0.96 ( RM 1.60 x 3 / 5). So, the yield is 8.3%. if coming Q announces better dividend besides this bonus to award all the shareholders, then yield will be much higher..

Should see more positive trend by coming week as the Splash issue was solved and signed. The EGM for bonus issue issue also only next week.

Time to collect again at this attractive price...

These few days I tried to find more information about TunePro and their product on web. End up I purchased their PA online which offered 25% discount (only RM27 instead of RM36 for RM50K PA).

Foresee able to crossover RM1.50 but RM1.60 will be a challenge..

For those believe the fair price is 0.68 or 0.70, please sell (hope you have the shares..)
Let us have an opportunity to accumulate at much lower price..

What a good opportunity to accumulate at low if your target for mid term

The stronger wave is coming?

KUALA LUMPUR (Aug 29): Water treatment services provider Taliworks Corporation Bhd has proposed a two-for-three bonus issue.

The group said this will enable shareholders to have greater participation in its equity while retaining their percentage of equity interest held.

The bonus issue is also intended to increase the number of issued shares, which may potentially improve the liquidity, Taliworks said in a stock exchange filing.

The issuance of up to 967.59 million bonus shares, on the basis of every two bonus shares for every three existing shares, will be made on an entitlement date to be determined later, it added.

Taliworks said the bonus issue will be wholly capitalised from its share premium account at 20 sen per bonus share.

Given the maximum scenario, the group’s enlarged issued share capital after the bonus issue will comprise 2.42 billion shares.

The group expects the bonus issue is expected to be completed in the second half of 2018

Taliworks’ share price closed unchanged at RM1.35 today, for a market capitalisation of RM1.63 billion.

The Q Result is OK but the share price dropped for no reason. So, the share price should up tomorrow.

Q result : it is still making lost but slightly better than last Q. Anyway, the share price is already reflected..

Should be not that bad if this is really happened. If compared the palm oil & log output (Q1 & Q2 ), Q2(Apr-Jun) output improved a lot (of course it is depend on CPO price).

CIMB Equities Research has upgraded Taliworks Corporation to an add with a higher target price of RM1.40 compared with 91 sen previously.

It said on Tuesday, the 90% recovery in receivables, though largely staggered over nine years, eliminates overhang on the stock.
Read more at https://www.thestar.com.my/business/business-news/2018/08/28/cimb-research-upgrades-taliworks-to-add-tp-rm1pt40/#mHUd73q1ZrORkBvI.99

Taliworks’s 1HFY18 earnings of RM37.3m (-10% YoY) were within both our and consensus estimates. YTD core PATAMI decreased due to lower contribution from construction segment and share of losses from associate. Taliworks has accepted new O&M contract offer for SSP1 from Air Selangor and management guided that the whole water consolidation exercise should be completed by 1st January 2019 if everything goes on schedule. Settlement sum for outstanding receivables is about RM650m (54 cents per share) which is 8% higher than our original estimates. Maintained forecast. Maintain BUY rating with higher SOP driven TP of RM1.66 (from RM1.33) after we removed the 20% discount on our SOP valuation in view of clearer earnings prospect and potential of higher dividend
From HL Investment

The Q result may not that poor..Expected the revenue up but profit less due to operating cost up or payout rate is high(it is nature of insurance business). The growing prospect is still very good. With present price , the price down is limited and upside is much much higher... accumulate at low.

Q2Q is slightly better (but lower compared previous Q). Today share price up 7% already, so further up is just a ?.. Overall it is still reasonable.

As Gamuda also accepted the offer from Air Selangor. So, to get back the outstanding receivables is certain and hopefully a special dividend will declare very soon.

Q2Q up 139% & Y2Y up 190%: 2 cents dividend declared. Payment date is 26th Oct. No news on special dividend as the deal is not sealing yet.

Good Q result...

Taliwork had accepted the order..
Reference is made to the earlier announcement dated 21 August 2018 in relation to the letter of offer dated 21 August 2018 from Air Selangor to Sungai Harmoni (“Offer”). Unless otherwise stated, words and phrases used in this announcement shall have the same meanings as defined in the aforesaid announcement.

The Board of Directors of Taliworks wishes to announce that the Company’s wholly owned subsidiary, Sungai Harmoni has on 27 August 2018 resolved to accept the Offer from Air Selangor.

Sungai Harmoni expects to commence negotiations with Air Selangor to finalise the terms and conditions for the Termination and Settlement Agreement and the New Operations and Maintenance Agreement (collectively as the “Agreements”) to be executed by the parties. An appropriate announcement will be released in due course upon the execution of the Agreements.

This announcement is dated 27 August 201

The wave is coming,,

As Taliwork is still able to make profit/break even with this outstanding receivables issue. Now this issue is solved (will receive at least 57 mil +5.25% interest each year although it is not lump sum) + business visibility is better (7 years of extension). Highway toll concessionaire & solid waste business are quite sustainable; except the construction and engineering division need a closer look. Overall the yearly dividend of 10~12 cents should able to achieve ( previous was 8 cents; which is 2 cents quarterly even at hard time). So, the share price will soon or later reflect it actual value. Let wait for coming Q result and dividend announcement...

It is a good sight that LTH started to buy in more Taliworks shares (total accumulated 7.32%) after rest for 8 months.

KUALA LUMPUR (Aug 23): Hong Leong Investment Bank Bhd upgraded Taliworks Corp Bhd shares to buy from hold on expectation of a special dividend from Taliworks due to better-than-expected receivable-settlement terms for its existing operations and maintenance of the Sungai Selangor Water Treatment Plant Phase 1 (SSP1).

Hong Leong analyst Yip Kah Ming wrote in a note today that Hong Leong also raised its Taliworks share target price to RM1.33 from RM1.29. Hong Leong's note today follows Taliworks' announcement on Tuesday (Aug 21) that its wholly-owned subsidiary Sungai Harmoni Sdn Bhd had on that day received from Pengurusan Air Selangor Sdn Bhd (Air Selangor) a letter which specified the settlement terms relating to Sungai Harmoni's outstanding receivables from its existing operations and maintenance of SSP1.

Taliworks said: "To facilitate the conclusion of the water restructuring exercise, Sungai Harmoni is requested to: (i) enter into a termination and settlement agreement with Air Selangor and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) in respect of its existing operations and maintenance agreement for SSP1 (SSP1 OMA), (ii) enter into a new operations and maintenance agreement for the continued operation and maintenance of SSP1, and (iii) terminate all other existing agreements relating to the SSP1 OMA."

Today, Yip said: "We are pleasantly surprised by this announcement given lower-than-expected discount of receivables and longer concession period of new O&M agreement. Although magnitude of upfront payment is much lower than expected, overall settlement structure is still above our expectations. We expect distribution of special dividend post settlement of outstanding receivables but are uncertain of the magnitude and the structure of it."

It is better than earlier report especially from CIMB Research reported that "...Air Selangor targets to reduce SPLASH’s bulk supply rate (BSR) from RM1.37/cu m to 42 sen to 44 sen/cu m, a significant reduction of 67.9% to 69.3%...." and the assumption of HL Invest " discount with SPLASH deal (28% discount) and transaction structure (75% upfront cash payment, 25% installment),Taliworks will receive c.RM382m ".
Discount receivable was 10% but the amount is over 9 years. With the 7 years of extension, the business visibility is much better. It is a positive for Taliworks.

This wave will stronger than previous wave?

It is just Great! With quarterly 2 cents paid out during 2.5years and now should be in better shape yet price is low???

Got a few lots at RM1.12 & RM1.11. ..

But I take opportunity to accumulate few more posts at RM1.16

Will up and up gradually...

Great! Finally the deal is on and will complete by 14th September. Good opportunity to accumulate more at present price or lower as the share price will gradually up..

A sign of Gamuda is rejected the offer? .. Tomorrow will have clearer picture..

KUALA LUMPUR (Aug 9): Gamuda Bhd's 80%-owned unit Gamuda Water Sdn Bhd would not continue to be the operation and maintenance (O&M) contractor for the SSP3 Water Treatment Plant, according to Minister of Water, Land and Natural Resources Dr Xavier Jayakumar.

Speaking to reporters at Parliament lobby today, Xavier said under the deal, the Federal Government will foot the RM1.9 billion bill as upfront payment for Pengurusan Air Selangor Sdn Bhd (Air Selangor) to take over Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH).

In return, the Federal Government-owned Pengurusan Aset Air Bhd (PAAB) will take over the water assets under SPLASH, and lease them back to Air Selangor over the long term to pay back the upfront payment.

However, Xavier said Air Selangor has not finalised the leasing terms, merely stated that it is a "long-term lease".

"Gamuda will be out of the picture, that is the whole purpose of the deal. Anyway we bought it at a discount, the net book value was RM3.54 billion," he said.

"The Federal Government will pay the RM1.9 billion, the remaining RM650 million will be paid by state government through instalments," he said.

Gamuda is the biggest shareholder of SPLASH with a 40% stake, while Kumpulan Perangsang Selangor Bhd (KPS) owns 30%. Sweet Water SPV Sdn Bhd, a private vehicle of businessman Tan Sri Wan Azmi Wan Hamzah, owns the remaining 30% stake.

Last Friday, newly appointed Selangor Menteri Besar Amirudin Shari announced that state government-owned Air Selangor offered to buy out SPLASH at RM2.55 billion.

The acquisition requires Air Selangor to make an upfront payment of RM1.9 billion upon signing the definitive agreement. The remaining RM650 million will be paid in instalments over a period of nine years.

Taliwork is paying dividend quarterly started from 2016. If this Friday Gamuda is accepting the offer then it will turn the attention to RM638m receivables (as at 1Q18) owed by SPLASH. This may become clearer during their Q report announcement which expects by end of next week or around 20th~24th Aug...
At present price, just keep and enjoy it good dividend quarterly (at least 2 cents per Qtr) and looking for special dividend and capital gain in mid term.

If the Splash exercise completed, it is almost certain that the dividend payout will be at least 2 cents per quarter base on previous records(excluding the potential special dividend). So, at RM1.20, the yield is 6.67%. Should see some support at present RM1.18

Collected some at RM1.18 at it dropped too much compared with Gamuda & KPS,

SPLASH was offered RM2.55bn takeover price by Pengurusan Air Selangor. This represents 28% discount on net book value of SPLASH as of June 30, 2018, which stood at RM3.54bn. This transaction will be structured with upfront cash payment of RM1.9bn while the remaining RM650m will be paid over 9 years with accrue interest rate of 5.25% per annum. Taliworks will receive c.RM382m upfront receivable payment (32 sen per share) assuming similar transaction structure with SPLASH deal. We expect Taliworks will continue to run the operations and O&M for SSP1 water treatment plant due to tripartite agreement signed with Selangor state government. Maintain forecast. Downgrade to HOLD with unchanged SOP-driven TP of RM1.29 as we feel the recent strong share price performance has reflected the optimism of the water deal.

NEWSBREAK
Takeover of SPLASH. Syarikat Pengeluar Air Selangor (SPLASH) was offered RM2.55bn takeover price by Pengurusan Air Selangor. This represents 28% discount on net book value of SPLASH as of June 30, 2018, which stood at RM3.54bn. This transaction will be structured with upfront cash payment of RM1.9bn while the remaining RM650m will be paid over 9 years with accrued interest rate of 5.25% per annum.

HLIB’s VIEW
Receivables. We understand that negotiation regarding RM638m receivables (as at 1Q18) owed by SPLASH to Taliworks is undergoing at this juncture. Assuming similar discount with SPLASH deal (28% discount) and transaction structure (75% upfront cash payment, 25% instalment),Taliworks will receive c.RM382m upfront receivable payment (32 sen per share) with the balance in instalment. Under this scenario Taliworks is expected to write back a small amount of recovered receivables as carrying value of receivables is c.RM452m.

Tripartite agreement. Post finalization of SPLASH deal, we believe Taliworks will continue to run the operations and maintenance (O&M) operations for SSP1 water treatment plant. This is because a Tripartite agreement had been signed between the Selangor state government, SPLASH and Taliworks and the agreement allows Taliworks to negotiate directly with Selangor government, should SPLASH no longer requires its services. However, we do not discount the possibility that there will be changes to the terms under current agreement that is expiring in 2030.

Special dividend. Assuming special dividend of 32 sen being paid, the implied ex special dividend share price would be 98 sen (vs current share price of RM1.30). Moreover, Taliworks is expected to continue the dividend policy of 8 sen per annum post SPLASH deal as the O&M operation is expected to be cash-flow positive. Hence, 8 sen dividend translates to c.8.2% dividend yield.

Forecast. Maintained.
Downgrade to HOLD, TP: RM1.29. Downgrade to HOLD with unchanged SOP driven TP of RM1.29 as strong share price performance over the past 2 months (+53%) has reflected the optimism of finalization of SPLASH deal. Moreover, discount on receivables recovered maybe higher than expected and magnitude of special dividend may disappoint.

The deal is still pending of Gamuda...

PETALING JAYA: Gamuda Bhd, which has maintained that Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) is worth more than RM2.8 billion minus its loans, has until Friday to revert to the Selangor state government on its RM2.55 billion offer for Splash.

The offer was made via Pengurusan Air Selangor Sdn Bhd (Air Selangor) to acquire the entire 50 million ordinary shares and 350 million redeemable unsecured loan stocks of Splash.

It represents a 39% jump from the last offer for Splash of RM1.83 billion made under former Selangor mentri besar Tan Sri Khalid Ibrahim. The offer however falls short of Gamuda’s reported expectations of an at least RM2.8 billion price tag. Splash loans, as stated in January 2015, stood at RM1.56 billion.

Splash is a wholly owned subsidiary of Syarikat Pengeluar Air Selangor Holdings Bhd (Splash Holdings), in which Gamuda has 40% interest, while Kumpulan Perangsang Selangor Bhd (KPS) and The Sweet Water Alliance Sdn Bhd own 30% each.

The sale and purchase of Splash will be transacted through a share purchase agreement (SPA) between Air Selangor and Splash Holdings, and the SPA shall be entered into by Sept 14 at the latest.

If the deal is accepted, the purchase consideration will be satisfied with an upfront payment of RM1.9 billion on the completion date of the SPA while the balance purchase price of RM650 million will be settled in nine annual instalments.

The deal (2.55B) is excluded the debt of 1.6B which is taking over by government.

Wai Yoong, This is an old news..The amount receivable owed by Splash at present is at least RM638 mil ( RM0.52 per share). This is the main catalyst for Taliwork and i think re-rating is on the way....