PanaHome MKH Malaysia Adds Value to Malaysia's Housing Industry
Through New Construction and Living Design Business
http://www.businesswire.com/news/home/20160329006679/en/PanaHome-MKH-Malaysia-Adds-Malaysias-Housing-Industry

MKH made 14 sen EPS in Q1 2016. MKH is likely to make more than 10 sen EPS in Q2 2016. Discerning buyers are on the rise!

What similarity would you think MKH have compared to Public Bank which has a stake of 9.8% in MKH. The answer is uninterrupted profit track records since inception.

MKH has been looking for plantation land but to no avail.

Awaiting announcement on 11 April on the Malaysia's latest production, export and stock for palm oil products.

Market capitalisation of MKH was RM1.6 billion in May 2014. That is now RM3.80 per share. At this price, the PE is likely to be still below 10.

The weakening of MYR will boost CPO prices which are traded in USD.

What has changed.
_Rising and sustaining CPO price.
_Rising and sustaining FFB production (Least affected by El Nino).
_Bullish view on IDR (The government has been doing right things).
_2 MRT stations in Kajang nearing completion.
_Very positive operating cash flows now.

借分享
在股市, 先知先覺賺大錢, 後知後覺賺小錢, 不知不覺賺不到錢!

Refresh and rejuvenate the Malaysia properties!
http://www.thestar.com.my/metro/community/2016/04/02/houses-with-intelligent-layout-japanese-company-using-kajiraku-concept-of-building-homes-in-its-firs/

The Indonesia's palm oil statistics for the first 2 months of 2016 are significant to sustainable performance of CPO price. Production was inadequate to match requirements for export and domestic consumption.

http://news.panasonic.com/global/topics/2015/44510.html
Refresh and rejuvenate the Malaysia properties!

Property JV with Panasonic. Huge market and potential!
http://www.panasonic.com/sg/homes/showroom.html
http://www.panahome.jp/english/

Investment in MKH - 65% and Matrix Concept - 35%. Will switching to MKH a good move? But the yield from Matric Concept is tempting!

Market capitalisation RM1.1 billion for MKH vs RM1.4 bil for Matrix Concept. Which want is value buy?

The company expects to produce FFB 413,000 mt in FY16 or about 6 mt/ha of CPO.

CPO yield of 5.4 mt/ha in FY15 was amazing!

Planting Year/ Ha/ Age/ Status
2008/ 3,800/ 8/ mature
2009/ 5,200/ 7/ mature
2010/ 4,300/ 6/ mature
2011/ 1,100/ 5/ mature

Average trees age: 6.8 years.
Entering prime age zone. What a coincidence with rising CPO price!

Palm oil blended for mandatory B20 biodiesel in Indonesia on track to achieve 3 mil tonnes in 2016. B20 biodiesel absorbed 0.52 million tonnes of palm oil in Jan and Feb this year.

0335 GMT [Dow Jones] Indonesian palm oil production fell 9.6% in February on month while both domestic consumption and exports grew on month, according to data released by the Indonesian Palm Oil Association, otherwise known at Gapki. The data shows that in February palm oil production was just 2.7 million metric tons down from 3.0 million metric tons in January. As a result stocks in Indonesia fell to 3.7 million metric tons from 4.4 million metric tons over the same period. (lucy.craymer@wsj.com;Twitter: @lucy_craymer)

http://www.bloomberg.com/news/articles/2016-03-29/indonesians-ride-resurgent-rupiah-straight-to-singaporean-malls

Discerning buyers continue to build up for value buy.

Maybank FX strategist - IDR is expected to reach 12,000 against USD by year end as its government has been doing right things.

Public bank is known to be prudent. I find Public bank's retirement fund, a substantial shareholder in MKH, offer lots of comfort to invest in this company.

The Company says impact of El Nino dry spell is expected to be minimal as its plantation is located at the equator with adequate rain fall. 福地

Discerning buys built up and will continue approaching Q2 results in May.

This project is selling very well.
http://www.hillparkshahalamnorth.com/masterplan.php

Will not be surprised if EPS for 1H FY2016 in the range of 25 to 30 sen.

Property counters rebound from recent low ... IOIP, Matrix and Tambun

EPS expected to be exceed 30 sen. PE ratio is cheap less than 10 for a plantation/property company. Alliance DBS Research - 2016/EPS 32 sen, 2017/EPS 34 sen, 2018/EPS 36.5 sen BUT the assumption on CPO was RM2,000 per ton (CPO market value now - RM2,600)

Plantations - Little Consolation for Local Players
http://klse.i3investor.com/blogs/PublicInvest/93417.jsp

http://www.theedgeproperty.com.my/my/content/property-sector-reach-inflection-point-soon-says-affin-hwang

TS Dato Chen again bought shares via open market.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5030925

MKH's independent non-executive director sold shares in open market!

EPS expected to be exceed 30 sen. PE ratio is cheap less than 10 for a plantation/property company. Alliance SDB Research - 2016/32 sen, 2017/34 sen, 2018/36.5 sen based on CPO RM2,000 per ton (to be updated soon :-))

Plantation assets - RM1 billion (based on latest transacted value)
Property assets - RM500 million
Total - RM1.5 billion
Value per share - RM3.60

MKH's director and major shareholder bought shares from open market.

IDR: Enjoying the moment

The IDR has appreciated the most in Asia year-to-date, exceeding our relatively positive
expectations for the currency coming into 2016. In a low-growth, low-inflation global
environment, the IDR’s attractive FX valuation ‒ at least in nominal terms (Chart 1) ‒ as well as
high nominal and real yields have stood out, attracting strong portfolio inflows.

There are other reasons behind the improvement in Indonesia’s balance of payments: First, the
current account deficit shrank to 1.9% of GDP in Q3, due to sluggish domestic demand and a
smaller services account deficit (Chart 2). The latter reflects both a decline in transportation
services costs and rising tourism revenue. While Indonesia’s commodity exports growth remain
sluggish, it appears that the worst of the terms-of-trade shock is behind us (Chart 3).

Second, FDI inflows have been on the rise, particularly from Greater China and Singapore,
and concentrated in the utility sector (Chart 4). This trend may continue as a result of the
government’s recent decision to remove many industries from the ‘negative list’ for FDI. Third,
shrinking other investment account outflows seen in the Q3 2015 data suggest that
elevated USD-IDR spot and forward points have dampened importers’ FX hedging demand.
Furthermore, we note that FX liquidity has improved as a result of policy measures, such as
Bank Indonesia’s FX term deposits (Chart 5) and FX bill issuance.

Indonesia continues to display a better fiscal position than most other EM countries. The
2016 fiscal deficit target was set at 2.1%, with a planned increase of expenditure on
infrastructure and healthcare. Removal of gasoline subsidies and plans to introduce a tax
amnesty bill has given the government room to spend in these areas. Successful sovereign
external debt issuance also reduced supply pressure in the local bond market.

Indonesia’s macro policy framework remains on the right track. The key building blocks ‒
prudent monetary policy, a flexible exchange rate and pre-emptive risk management ‒ remain in
place. These have enabled a soft landing in the credit cycle ‒ inflation is contained, while IDR
liquidity has started to ease since mid-2015, as indicated by falling deposit rates even before
policy rate cuts (Chart 6).

These developments facilitated the latest policies to lower government bond yields ‒ giving tax incentives to local pension funds and insurance companies to hold government bonds (Chart 7) and lowering deposits and lending rate ceilings.

BI has become more focused on strengthening FX reserve cover in recent years. Both BI and
the government have indicated that the IDR should not strengthen beyond its fundamentals. FX
reserves have already started to rise in February (Chart 8). Factoring the positive
developments, while bearing in mind the FX policy preference, we change our year-end
forecast for USD-IDR from 14,500 to 13,500.

Remember few years back IOI acquired a plantation company owning a similar hectages ie. 15k ha or RM66k per ha for a consideration of RM1 billion. What you are paying now is for the plantation assets in MKH. You'll also get to buy property assets for free. SImple!

Now that MKH has crossed 1 bil market value, this may prompt certain funds (with mandate to invest in company of at least 1 billion) to consider to invest.

Cheapest plantation proxy. Growing plantation contribution.
Healthy sales of affordable housing. Reaping harvest from high unbilled sales.

It means something having Public Bank Group as your shareholder with 9.8% stake.

Thx K.H ... With plantation young age profile and strategic and sizable property landbank, MKH should command higher PE.

They say .. will go up to RM3,000
http://www.bloomberg.com/news/articles/2016-03-09/-enormous-impact-of-el-nino-on-palm-oil-seen-fueling-20-rally

Increase in crude oil price is positive to CPO price.

In fact if the one-ff gain is taken out, the profit margin in the property segment has been creeping higher. Good mix of products including with more high rise projects near the MRT/LRT.

http://www.bloomberg.com/news/articles/2016-03-03/indonesia-s-rallying-8-bonds-lure-funds-in-negative-rate-world

See the media coverage given to President Indonesia. That's a credible plan and will spur confident.
http://www.bloomberg.com/news/videos/2016-02-25/evolving-indonesia-jokowi-s-mission

Yes plantation earnings is expected to go higher on the back of higher CPO and PK prices and sales quantities and the resilient IDR. Q1 has EPS of 14 sen!

It is remarkable, given the soft property market, to see the unbilled property sales sustaining at this high level. Kudos to MKH!

Also paying lesser to the CPO levy in USD with the strengthening of IDR.

IDR has been resilient lately. Good news to Indonesia plantation company with USD debts.