Chong still satey the news promoting false prospect. Here are some posibilities:

Concession. Replacement contract but siphoned half outside. Red flag.

Property development. Consumer after the property craz few years ago suddenly realise Kajang cannot sell suchh high price houses and students have plenty of choices. 115 million Ringgit should be depreciated and auction out starting at 30% discount. Potential 33.15 million Ringgit hole hidden. New project going to be like bad years in 2008-2011, start work also cannot, half way delay and no sales.

Ppa1m again is going to contribute 150 million ringgit cost out, if lucky 50 million ringgit discount. Worst case is argue and nego like the other developer ends up whole 500 million ringgit disputed. Phase 2 is gone. This is charity work. SUKE is 50% taken out, left single digit net margin and contractor has issue. Payment will be like Pan Borneo cannot sue government, sell asset and raise cash self funding. Sub contractors all knew and got stuck also, many as per company accountant demand cash payment.

Above wrap up 2017. Good quarter Mar 2017 and Jun 2017 will need to check where the cash flows. If everyone in ppa1m offer contribution to recover cash, is 30% the worst?


Now this is what management told brokers. Promitiin for a year share drop so much still promoting. 1.50 per share target price. What do you think?

@@@@@@@

Meanwhile, Protasco has clinched the maintenance work for agricultural roads in Perak state for a two year period for RM90.1 mln in February 2017. We expect the concession segment to remain well supported by an outstanding orderbook of approximately RM4.20 bln which will provide earnings visibility over the next ten years. We also note that Protasco is tendering for over RM1.0 bln worth of roadworks, including rural and municipal roads. .

Over at the property development segment, the unsold units amounting to RM115.0 mln will be recognised from 80 units of duplex for sale, which was converted from student hostels previously. Going forward, Protasco targets to launch three projects (two affordable housing projects and one commercial project) with a combined gross development value (GDV) of approximately RM880.0 mln in 2017.

We reckon that Protasco’s earnings growth in 2017 may remain subdued due to: (i) delay in projects execution for both PPA1M Phase 2 (waiting for the completion of land transfer from authorities) and SUKE projects (design and permit issues by Prolintas), and (ii) sluggish property market which saw no new launches in 2016 by the group. Nevertheless, the concession segment will recover from the renewal of two road projects, coupled with contribution from the newly secured agricultural roads maintenance contracts in Perak.

Valuation And Recommendation
As the reported earnings came below our forecast, we trimmed our earnings estimates for 2017 and 2018 by 21.0% and 11.0% to RM42.6 mln and RM52.6 mln respectively, after adjusting our earnings forecast to account for higher finance cost arising from the higher borrowings, lower contribution from construction segment amid several project deferments and sluggish property development sales. Nevertheless, we maintain our BUY recommendation on Protasco, but with a lower target price RM1.50 (from RM1.75). We think at the current share price of RM1.17, Protasco’s PER valuations at 11.6x and 9.4x for 2017 and 2018 remains attractive vs. the construction industry average of 11.0x-13.0x. We also expect its earnings recovery to strengthen in 2018 as some of its delayed projects gets off the ground.

Our target price is derived by assigning and unchanged target PER of 11.0x to its revised 2017 construction earnings, a target PER of 8.0x unchanged) to its revised 2017 concession and engineering services’ earnings, while its education and trading earnings remain pegged at target PERs of 6.0x respectively due to their smaller scale businesses. Its property development division’s valuation remains unchanged at 0.6x of
its BV.

Risks to our forecast and target price include failure to achieve the targeted construction orderbook replenishment amount, delay in project completion and failure or delay in concession contract renewals. Further tightening of monetary policies will also be unfavourable to its property development business.

Not the worst yet. Ppa1m no guarantee and jib government no cash. Election coming need sponsor. When ppa1m no guarantee, money if can collect will be pay out bank and many other cost. Nothing left nevermind maybe negative. 10% contribution is 50 million Ringgit. Usual 30% sharing to contribution is 150 million Ringgit. Very soon will see the money in money out in March and June. Ask the accountant.