To complete my earlier posting on analyst reports, the following excerpts are taken from Affin Bank's analysis and are intended for the information of interested parties:


Forecast
No change to our earnings estimates.

Rating Maintain OUTPERFORM

Valuation
Maintaining our SoP-based TP at RM1.25, at
this juncture.

Risks to
Our Call

Sharp increase in raw material prices.

Failure in obtaining Environmental Impact
Assessment for its Johor project.

The reason I don't really care about who is selling the shares is that, being better informed, I know that the seller(s) is/are going to miss out and buyers at this price will make decent gains.

king7, I don't worry about who is selling. I only care about whether it is a viable investment decision for me or not. There are a few tricks that the syndicate players use to consistently accumulate shares in the open market. I happen to know some of these tricks but am not at liberty to share these on this forum. I the meantime, judge for yourself. Time will prove whether I am right or wrong.

Everything in life is timing, especially when it comes to the stock market.

Further, big players will not buy aggressively. They will only do so at the right time.

king7, I am not talking about the past one month, I am referring to the last two days and going forward. As to why there are a large number of sellers, the answer is simple. The majority of the sellers are small retail investors. What you should note is that the big players are gobbling them up.

This posting is addressed to the believers. One big reason why the share price is on the uptrend in tandem with the significant transaction volume seen both yesterday and today is the fact that some big market players are apparently picking up the stock.

From what I can gather, the fund managers have just started to make a beeline for Benalec's HQ, hoping to get an accurate and comprehensive update from the :"horse's mouth", as it were. So, for that matter, are the financial journalists. Meanwhile, I have learnt from the "grapevine" that there are a couple of mega deals in the pipeline, as well as new reclamation concessions being secured by the company in Melaka and Johor. All these very positive developments are obviously drawing the smart investors to this company.

As promised, the excerpts of Kenanga's analysis are as below:

Benalec Holdings OUTPERFORM ↔
Price: RM0.895
Secured RM204m Construction Contract Target Price: RM1.250 ↔
By Iqbal Zainal l mdiqbal@kenanga.com.my

News
Benalec secured a RM203.9m construction
contract from Oriental Holdings Bhd (NOT
RATED). The project involves construction,
completion & maintenance of coastal
reclamation and associated works in Malacca
covering a total area of approximately 415
acres. The project is scheduled to start in
3Q2014 and is expected to be completed by
4Q2016.

The project shall be executed in 2 stages of
which Stage 1 covers 275 acres while Stage 2
covers 140 acres. Nonetheless, the works for
both stages will be done simultaneously.

Comments


We view the news positively as this project will
boost its orderbook significantly to roughly
RM400m from RM200m. It is also well within
our replenishment orderbook assumption of
RM400m in FY15 (the work will start in June
2014 (FY15). Furthermore, the good news is
that this contract consideration will be paid in
cash (progress billings) by the client. Assuming
a 20% pre-tax margin, the project will
contribute about RM10.2m to Benalec's net
profit every year until FY17.

Note that the project value of RM203.9m
excludes the revetment works which may be
awarded in later part.

Outlook
Although its performance may be dampened in
the short-term due to some changes in its land
sale method, and slower progress of its marine
construction, its long-term outlook remains
intact due to its active land sale coupled with
attractive sea-fronting land concessions in
Malacca and Johor (which is expected to start
contributions from FY15 onwards, albeit in a
gradual manner).

Forecast
No change to our earnings estimates.

Rating Maintain OUTPERFORM

Valuation
Maintaining our SoP-based TP at RM1.25, at
this juncture.

Risks to
Our Call

Sharp increase in raw material prices.

Failure in obtaining Environmental Impact
Assessment for its Johor project.

Throughout the recent past, CIMB has been the sole advocate of a Sell call on Benalec, irrespective of the number of land deals secured by the company, not to mention the most recent reclamation contract awarded to the company by Boon Siew. The target price of 90 sen suggested by them is ridiculous to say the least; this is biased reporting in anyone's language. I say this because I have read the analyst reports of Affin Bank, AmBank and Kenanga. To enable the members of this blog to arrive at a balanced view, let me reproduce below excerpts of the respective analyst reports. (Because of the length of this posting, I shall break it into 2 parts; the second part comprises Kenanga's analysis.):
AmResearch (AmBank):

Investment Highlights

• We maintain our BUY rating on Benalec Holdings with a
fair value of RM1.31/share. This pegs the stock at a 45%
discount to its estimated sum-of-parts (SOP) value.
• Benalec announced on Bursa Malaysia yesterday evening
that the group’s wholly-owned unit, Benalec Sdn Bhd, has
secured a RM204mil contract (excluding rock revetment
works) from the Oriental group in Malacca.
• Benalec received a letter of award from Oriental Boon Siew
(M) Sdn Bhd to undertake the construction, completion &
maintenance of coastal reclamation as well as associated
works for Ultra Green under Phase 2A, Phase 3A and
Phase 4 in Malacca.
• The project would be executed in two stages covering 415
acres. Each stage would be completed within 30 months
from the date of site possession. Reclamation works are
set to kick off by the third quarter of 2014 with 4Q 2016
being its targeted completion.
• This contract appears to be a repeat job from the Oriental
group, and underscores Benalec’s solid track record as an
integrated marine engineering outfit.
• Prior to this, Benalec had previously undertaken previous
reclamation works for the Oriental group in Malacca.
• More importantly, we believe that this cash job is timely as
it beefs up Benalec’s cash flow position ahead of its future
prospects, notably in Johor.
• Based on a conservative margin of 15% and assuming
equal contributions over the next two financial years, we
estimate that this new contract would make up 23% and
13% of our FY15F and FY16F net profit forecast,
respectively. We leave our earnings forecast unchanged
for now.
• Beyond Malacca, Benalec is keeping a close eye on other
prospective reclamation contracts to replenish its
orderbook. Tenders for reclamation works under Phase 1
of Eastern & Oriental’s STP2 project in Penang (384 acres)
worth potentially over RM1bil could be called once
regulatory approvals are received by 1H 2014.
• Be that as it may, Benalec’s key re-rating projects still
hinges on its ability to monetise the deep development
potential of its concessions in Johor. We gather that
efforts to obtain regulatory approvals are gaining traction,
with tangible newsflow likely to come towards end-2H
2014.

Based on the above info, it is difficult to understand CIMB's persistent call to sell or reduce, unless there is an agenda which we are not privy to

I have been told that a couple of big boys have started to collect Benalec shares from the market. These guys are not stupid like kukuman is. Btw, the share buy-back has apparently taken place because the company is flushed with cash and the management reckons that at this price level, the company is grossly under-valued. All you good people out there (excluding kukuman), enjoy the ride.

king7, the momentum isn't there right now because: (1) the market, taking a cue from global market sentiment, is a bit jittery due to the Ukraine - Russia crisis, (2) the current shareholders of Benalec is predominantly (maybe 70%) retail investors, who tend to sell as soon as there is a small margin for them. I can visualise that once the forthcoming EGM is over and done with, the company will most likely engage the institutional investors to invite them to invest. If this effort bears fruit, the share price should return to its previous level, i.e. before the "family feud" surfaced.

Adding to my earlier post this morning, the biggest upside for the company is that the very creditable performance since early December last year has been achieved without taking into account the mega projects in Johor which are expected to commence in the coming months.

taciturn, once again you have beaten me to the trigger. Your comments are absolutely spot on. Where we do differ is that I hope and pray that Vincent Leaw sues the shit out of this kukuman idiot! It's one thing to make a substantiated statement, it's another to make a baseless statement out of malice. I know who the lawyer for Vincent Leaw is and if he can "force" the 2 brothers out of the company, he can put this shitty liar in the shit-pot.

Good morning everyone. I would like to share a few pointers with the discerning investors on this blog, starting with the announcement made by Benalec last evening in relation to the award of the land reclamation project by the Boon Siew Group worth RM203 million. Apparently this is the biggest cash project that the company has secured up until now. My well-informed source told me that ever since the departure of the two older brothers of the current Dato' Leaw Seng Hai from the company in early December last year, there have been no fewer than five land sale transactions closed by the company. The purchasers in the land deals are Heritage Media, Ultra Harmony, Faithview Supreme, Faithview Concept and Teobros; the gross proceeds of these deals add up to RM465m+. If we combine this figure with the RM203m contract sum just announced, the total revenue spread secured by the company is a significant RM668m. Taking a conservative 25% of this figure as the profit margin over the next 2 to 3 financial years, the bottom line will swell by RM167m. The fact that all these deals have been achieved in the aftermath of the so-called "family feud" should serve as testimony that the company's full potential is now being realised in the absence of the impediments which had existed before. More to the point, in my view the company is now being managed and driven both dynamically and strategically. And, I am told that there is more good news in the pipeline ... do we need more convincing?

I have been told that there is more good news to follow, sooner rather than later. Taciturn is right, the company's gearing is about 6%, which is way below the norm. If you add up all the positives, you cannot fail to see the upsides of investing in this counter, especially given the current share price.

king7, you won't have to wait long to find out.

tshwong, I suggest that you waste no more time and effort on that idiot. Your time will be better spent on strategising your investment options.

Good day, Samsung555. Reason why I have not been posting any comments in recent days is that I have been travelling. I understand the EGM should be happening real soon, so just wait for it. Meanwhile, back at the ranch, news has reached my ears that very positive announcements will be made by the company in the coming days. Piecing it all together, there is only one inevitable suggestion that I can make ... buy now and enjoy the ride!

Hey guys, after thinking about it over the weekend, I figure that kukuman is using the strategy of posting ridiculous, untrue and unfair comments on this blog in order to fish for information from people who know much more than he does and who will try to disprove him by posting information which runs counter to hi comments. That way, he can sponge on the useful and accurate information provided for free on this blog. I presume all of us can remember that a few days ago he bought Benalec shares and sold out later in the day to make a 3 sen per share profit. He could hardly control his glee when he told us about his "windfall". All this from a guy who actively discourages everyone from touching Benalec! Now you know why I brand him a devious hypocrite.

Good day everyone, I have just got to know from a reliable source that a very positive announcement is due to be made sometime this week. Apparently further good news is in the pipeline. Wait for it, everyone! (With the exception of kukuman, that is!)

Btw, the main reason for my sharing is that I want to play my part in ensuring fair comments are made on this blog to show up the nonsense regularly posted by a certain maniac.

One significant point to remember is that the Johor Royalty has a 30% stake in both the Tanjong Piai and Pengerang projects to be executed by Benalec. You may draw your conclusion from that fact.

taciturn, tshwong & samsung555, I checked with my source this morning and was told that EIA approval is well advanced and on track. He had assumed EIA to have been approved because the company is currently mobilising its resources for starting reclamation work in Tanjong Piai. He further said that the Terms of Reference (TOR) for the EIA process has been approved for some time now and should be posted on the DOE website anytime soon, if it has not been posted already. As always, I will try to share accurate information as far as possible, but the caveat is that there is no guarantee. So, please be guided accordingly.

It's like getting a free lunch, eating it all and then complaining that the food was rotten! That's the kind of low life we have to deal with here.

Yeah, not too long ago this kuku maniac was telling everyone not to touch Benalec shares because the company was rubbish. Now, after making a miserable couple of sen contra profit trading intra-day on the counter, he tells everyone that this counter is only good for contra play and definitely not for long-term investment! What a pathetic, hypocritical idiot!

Your are right, you are a monumental pain in the ar*e! By the way, let me do you a favour you hardly deserve, the last word in your posting should be "uncouthed" (which is what you are) and not "uncouth". Anyway, are you suggesting that I am envious of you making a 3-sen gain? This kind of money is pocket-change to me, so stop deluding yourself.

That's exactly the point. This kuku maniac rubbishes Benalec and its remaining directors as though there is no tomorrow, yet he proudly announces to the whole world that he made a 3-sen gain by buying into and getting out of the counter on the same day. What a bloody hypocrite, completely devoid of decency and honour ... a real scum of the earth!

Realistically, I expect the big big price move to come shortly after the EGM.

samsung555, when the transaction volume is high like it has been today - about 5 times the average volume of recent days - chances are that some big boys are moving in. The big guys normally don't move in to make a gain of a couple of sen. So, there you have the answer.

I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. (Kukuman, if you are there, don't buy!)

For kukuman to describe the private placement of 45 million shares by the majority shareholder(s) as a "MAJOR CORPORATE EXERCISE" is the clearest indication yet that he knows NUTS about what is or is not a corporate exercise!

taciturn, Not only is he a liar, he is a mud-slinger as well!

taciturn, When I read your posting a couple of days ago imploring kukuman to respond in a civil manner, I felt like complimenting you for your magnanimity. At the same time I also felt like warning you not to expect any response from that guy which would be remotely sensible or coherent. Just as I anticipated, your kind words have fallen on deaf years. In case you do ever feel inclined to lapse back into an accommodating attitude towards that pseudo-intellectual, may I venture to advise that you are more likely to elicit some degree of coherence from an inmate of a lunatic asylum than from this kuku guy!

Bernard Tan, According to the Weekly Edge (issued on 21/04/14) which quoted a report by MIDF, Benalec is gearing up for signing the SPA with 1MY Strategic Oil Terminal Sdn Bhd in the middle of this year. This event will boost the company’s order book significantly because of the 1,000 acres of reclaimed land which Benalec has to deliver under the SPA.

Another very positive aspect of Benalec’s foray into Johor is related to the decision by Petronas to re-activate the RAPID project in Pengerang. Once that project comes on-stream, the demand for strategically located land by players in the O&G sector, such as those engaged in the O&G major fabrication, shipyard, ship repair and ancillary downstream O&G support business, will definitely swell up. Benalec happens to own concession rights to reclaim some 1,500 acres of waterfront land with deep-water jetties in Pengerang. I also gather from reliable sources that Benalec is very actively pitching for a piece of the action in relation to the E&O land reclamation project in Penang and insiders reckon that they have a good chance of succeeding.

So, by adding up all the positives, the decision to invest in Benalec is a no-brainer, especially at the current price level.

jlschen, I don't know about you guys, but I am pretty bullish about this counter. Take a look at the weekly Edge (date of issue: 21/04/14). There is a write-up on Benalec which might give you an idea of the answer to your question.

The timing of the EGM is entirely dependent on the time the Authorities, viz. Bursa & SC, take to approve the shareholders' circular.

viktor2u, I personally think that the EGM will be held before the end of June, which incidentally is the financial year-end of the company.

smasung555, the rationale is simple, before the scheduled EGM a circular has to be sent to every shareholder. The circular will include all the relevant details pertaining to the resolution(s) which the shareholders are asked to vote for or against. It will become patently clear then that a lot of the rubbish uttered by people like kukuman is way off the mark. Just wait for the EGM!

powerwk, mark my word, I reckon the share price will definitely be higher after the forthcoming EGM.

kukuman, for just once, use your brain if you've got one. If the brother who is still standing (after the dust settles) had wanted to "deal" with the 2 ousted brothers, don't you think that he would have done a lot better by not making any moves to kick the brothers out? Would anybody have known if all of them had kept quiet about the goings-on in the company? Would he have wanted to lose 40% of his wealth (through the share price falling from RM1.50 to 90 sen) by taking the action that he has taken? Once again, don't open your mouth to blare out a load of rubbish!

You don't need to be Warren Buffet to make money from Share investments; all you need is good info, sound judgement and holding power. Kukuman, which of the above have you got?

kukuman, that's why I reckon you are a thick-head. I am currently holding Benalec shares for the longer term, having bought in at 86 sen. I am not spinning any story for Benalec because I don't have to. much less to some nut like you! I don't claim to be Warren Buffet; there is only one of him in this world. Likewise, hopefully, there is only one of you in the whole Galaxy!

Kukuman, you are the last person I would want to "brag" to. You claim to be winning even when you have been a sore loser throughout. It's people like you who started the world wars!

Look, kukuman, the more you open your mouth, the more everyone is convinced that it is impossible to overestimate your stupidity. For your benefit, not that you deserve it, let me tell you that any investment can have more than one objective, i.e. it can be short term or long term, or some combination of the two. I have also invested in Public Bank and have gone in and out a few times as well, on average making some decent gains. This is known as investment strategy. Go do some research before you lapse into another bout of verbal diarrhoea!

Also, in case you failed to understand the point I was trying to get through your incredibly thick skull, let me repeat myself ... I am NOT stuck with Benalec shares! It is an INVESTMENT!

Btw, kukuman, the way you talk smacks of jealousy and bitterness. Like they say, go get a life. On another planet, hopefully!

Kukuman, by your comments it becomes as clear as daylight that you know nuts about investing. It's timing, you dummy!

Kukuman, you are a real dummy! What makes you think that I am "stuck" with Benalec shares? For your info, I have made a substantial profit getting in and out of Benalec shares 5 times, each time laughing my way to the bank. The shares I now hold were bought at close to the recent historic low, i.e. 86 sen. With the profit gained, I invested in Public Bank shares and have enjoyed a handsome dividend payout plus a more-than-decent share price appreciation. That's why I call myself the Savvy One! Now, tell us your investment record, so we all can have a laugh!

kukuman, they are not saving their arses, but you are talking through yours!

To back up my comments, Tan Chong took 10 years to settle the legal quagmire it got itself into. Can you even guess how much the legal fees added up to?