Despite good news, it is important to have managed expectations. The overall market sentiment in Malaysia as well regional markets are down. This can be seen in most counters being in the red zone, so short-term wise LBS share price might not surge up as expected tomorrow or the day after.

However, long term wise, this disposal exercise will most definitely benefit LBS in long run.

In my opinion, the latest announcement is considered a very positive news.

For better understanding, it is advisable to refer to LBS Corporate Structure, as you read through the announcement.

In summary:

LBS subsidiary: Dragon Hill Corporation Limited has entered an agreement with a third party called Huafa Urban Operation (HK) Limited.

An agreement whereupon Dragon Hill will dispose its subsidiaries namely Lamdeal Investments Limited, Zhuhai International Circuit Limited & Zhuhai International Circuit Promotion (HK) Limited, to Huafa Urban, for a consideration sum of RM 124,744,666.47.

Apart from the disposal, Huafa Urban (‘the Buyer’), is also willing to settle off all existing and current debt owing to LBS by Lamdeal Investments Limited, Zhuhai International Circuit Limited & Zhuhai International Circuit Promotion (HK) Limited, with a total debt settlement of 147,877,333.53.

Through this deal, LBS will no longer own the iconic Zhuhai International Circuit in the near future, but it is in the opinion of LBS Management a good decision to dispose this off, as the land which is used to build the Circuit has a leasehold that will expire in 19 years, and on top of that with more stringent regulations being introduced it is becoming harder to operate the Circuit.

Through this deal, LBS will gain an additional Cash Flow of RM 272,622,000, that can be used to focus on new or existing projects and through this disposal exercise, it is estimated LBS will have a disposal gain of estimated RM 80,000,000.00.

All in all it is a good deal, because not only does LBS come out with a net profit gain, but the Company will also be able to reduce the overall Group Debt’s level, and improved Cash Flow reserves.

Hence in my opinion, this is a very positive news.

Possibilities of material announcement:

1) DC Project
2) M&A
3) Land Sale

Feeling EXCITED !!!

By tomorrow when SNS officially enters Main Market, foreign and international investors will have a hand in SNS shares, hence I can only assume everyone is grabbing as much as they can before the bigger players enter and further boost SNS.

Everyone just hold, don't sell.

This is like 'GameStop' stock.

DIAMOND HANDS!!!! HODL THE LINE!!

TO THE MOOOONNNN!!!!

With regards to the email sent to Bursa, here is their response:

Dear Sir/Madam,



Reference is made to your e-mail on the above matter.

We have escalated the complaint to our line department concerned for their further action. The assessment into the matter you highlighted may take time, depending on the complexity of the issues raised. However, we will undertake the necessary actions to ensure that your complaint is looked into accordingly and will take the necessary enforcement actions if there is any breach of Listing Requirements.

As we do not play the role of ombudsman nor do we conduct arbitration, in the event of conflicts or financial losses, the aggrieved parties need to file the claims through the appropriate legal process in court.

We will also make the necessary referral to other relevant authorities should we come across any potential breaches of other regulations / Acts (other than the Listing Requirements)

I have sent an email to Bursa (bursa2u@bursamalaysia.com), as shown below:

Let's see if Bursa will help us to insists Powerwell to provide an explanation.

Dear Sir / Madam,


With reference to the screenshot attached, between March 2024 to June 2024, the company Powerwell Holdings Berhad has disposed a total of 147,500,000 units of shares through its Directors, namely Mr.Tham Kien Wai and Madam Wong Yoke Yen, as well as disposal of shares via its primary shareholder PW Synergy S/B.

I understand that the Directors of a Public Listed Company are well within their rights to Buy or Sell shares, however if the volume is of a significant amount, it would only be right for the Directors or Management of the Company to be transparent and provide an explanation to investors with regards to such heavy trades, otherwise it will raise & trigger concerns / red flags among retail investors.

From a retail investors point of view, Powerwell Holdings Berhad has a good performance record as shown in its: P&L, Bal. Sheet & Cash Flow, therefore it is rather puzzling and 'out-of-norm' on why would the Directors & Major Shareholder be disposing its own shares, unless of course they have insider information of what is about to happen and is taking advantage of such privileged information to mitigate their risk exposure, which is quite unfair to the rest of the other investors who are dependent on the limited information made available if any by the Company.

Supposedly if the disposal of shares is a restructuring exercise, it would still be the Directors obligation & responsibility to inform investors to whom the share is going to, otherwise the heavy sell trade would send a wrong signal to the market.

I hope Bursa is able to assist on this matter, and insist the Company to provide an explanation on the major disposal of its shares.

Regards,

Alfred Loo

Regardless whether share price will go up, OR how much it has risen over the past few weeks, as investors we have the right to know why is the Board of Directors disposing their shares in significant amount, with no apparent reasons.

All retail investors should bombard their Corporate Email (info@powerwell.com.my), FB page & any other social platform they have with inquiries to demand for an answer. Transparency must be upheld.

It is within the Director's right to Buy or Dispose their own shares at any given time, but if the amount is too large and over a short period of time, then explanation is required.

If the company is truly performing well with a healthy order book, then there shouldn't be any need for disposal, unless the Director misuse insider information to illegally trade.

Supposedly if the disposal of shares is a restructuring exercise, then it is the Directors obligation to inform investors to whom the share is going to.

As of date, we still have no answers behind the disposal. FYI within 2024, the company has disposed 147,500,000 units of shares within 3 months (Mar'24-Jun'24).

Why is no one red flagging this to the Company & Bursa?

If still no reply, then we lodge complaint to Bursa.

I have just emailed to Powerwell requesting a clarification on recent major disposal.

If possible everyone also drop them an email to request a clarification, as this is quite concerning.

Email: info@powerwell.com.my

GREAT NEWS!!!

Powerwell just secured another big project relating to DC. Project worth RM 57.6 mil.

LBS has potential but a late bloomer

Stay strong fellow investors in this turbulent times in the Middle East.

LBS might be smaller compared to its other peers such as SP Setia & OSK, but they are nonetheless still a formidable and well managed company with good P&L, Bal. Sheet & Cash Flow.

At the moment, LBS share value is considered undervalued. Its fair value is estimated to be around RM 1.20-1.50. So it is a good opportunity now to buy up as much as possible, at its lowest point.

LBS is considered an underdog among its peers with very promising future if it can pull off the Waterfront Project @ Melaka,

https://www.edgeprop.my/content/1909056/lbs-bina-unveils-bsp-sutera-bandar-saujana-putra

This stock is for mid-long term, investment.

Steady steady "pom pi pi", growing.

Yes the company business is mainly distribution, and not manufacturer of any electronic devices.

They are a global distributor, with strong presence in Asean region.

At the end of day, Companies like APPLE, SAMSUNG, HUAWEI, NVIDIA, & other big shot names still have to rely on industry player such as VSTECS to move their products to oversea countries. Without distributor like VSTECS, do you think those big electronic manufacturer can be what they are today? I don't think so.

So I have faith that with steady performance, and good management, this company will be something big one day that will make a lot of investors rich.

Based on latest valuation, VSTECS share price is significantly undervalued.

Fair Value should be RM 31.88