EGM TODAY PASSED RESOLUTION FOR DISPOSALS OF 4 PIECES OF LAND TO SUNWAY GROUP FOR RM168M CASH. WILL REGISTER AN EXTRAORDINARY GAIN OF RM108M FOR THE 4Q RESULTS/PROFIT FOR JAKS.
PROFITS WILL JUMP UP FOR ITS 4Q AND FULL YEAR RESULTS.

Many positive catalysts coming into play to boost share price up soon.
Especially its disposal of EDL toll concession for rm2.75B which will reduce its gearing significantly. The other announcements will include its j/v with EPF to build KWASA SENTRAL as well as its being appointed the Master Developer for EPF's prime landbank in Sg Buloh (served by MRT n KTM and connected Toll Free to Kota Damansara, Tropicana n to Subang Jaya. etc.)

Near Term Catalyst to boost up MRCB
---------------------------------------------------
Impending announcements for the disposal its EDL Toll concession for RM2.75M (inclusive of its SUKUK loan RM1B taken over by the Govt) :-
The announced abolition of the various Tolls (including EDL) will be effective 1/1/2018)
Hence the EDL disposal will have to be completed before or on this year end

2018 IS A WORRISOME START FOR THE BANKING AND FINANCIAL SECTORS (including MBSB) DUE TO THE VERY STRINGENT AND NEGATIVE IMPACT ON THE EXPECTED SIGNIFICANT INCREASES IN LOAN IMPAIRMENTS DUE THE ENFORCEMENT OF MFRS 9 W.E.F. 1/1/2018 :-
With the adoption of the new International Reporting Standard 9 (IFRS 9) next year -- or MFRS 9 as the Malaysian equivalent is known -- the amounts banks have to set aside for expected loan liabilities or provisions could jump as high as 50%, which could hurt earnings, weigh on capital ratios and potentially affect dividend payout, experts say.
Under the new accounting standard, banks will be required to switch to an expected loss model, as opposed to the incurred loss model that is used now under the current accounting standard or MFRS 139.
Essentially, this means banks will have to make provisions in anticipation of future losses, rather than the current practice of making provisions only when loans have been classified as impaired.
Hence, for a performing loan, banks will have to make provisions on the basis of projected losses over 12 months. If there are signs that the loan's credit quality is weakening, then losses will have to be booked over the loan's entire lifetime.

Loan impairments/provisions for doubtful debts will cause declines in profits and lower dividends.
Indicative of the severe negative impact can be seen in the latest Q results of Affin Bank. The worst is yet to come as MFRS 9 will only be implemented from 1/1/2018.
(hence need to be aware of both the positive as well as the negative news flows)

Differring view point:
The worst is yet to come for 2018 with the more stringent loan impairemenst enforcement under the MFRS 9 (detailed posting above) w.e.f. 1/01/2018

WHAT TO DO WITH THE DOUBLE NEGATIVES FROM HE SERIOUS OVERSUPPLY OF PROPERTIES/DOWNGRADE PLUS THE COMING BANK INTEREST RATE HIKE ?


hng33 https://www.propertyguru.com.my/property-news/2017/11/164812/interest-...
29/11/2017 13:51

EXPECT DIVIDENDS FROM 2019 THEN

THEIR SENIOR MGT SAID EXPECT BETTER PROFITS ONLY FROM 2019 ONWARDS

: With the adoption of the new International Reporting Standard 9 (IFRS 9) next year -- or MFRS 9 as the Malaysian equivalent is known -- the amounts banks have to set aside for expected loan liabilities or provisions could jump as high as 50%, which could hurt earnings, weigh on capital ratios and potentially affect dividend payout, experts say.
Under the new accounting standard, banks will be required to switch to an expected loss model, as opposed to the incurred loss model that is used now under the current accounting standard or MFRS 139.
Essentially, this means banks will have to make provisions in anticipation of future losses, rather than the current practice of making provisions only when loans have been classified as impaired.
Hence, for a performing loan, banks will have to make provisions on the basis of projected losses over 12 months. If there are signs that the loan's credit quality is weakening, then losses will have to be booked over the loan's entire lifetime.

Relevant points to cinsider.
Treated as new purchase. Land will niw be subjected to tax liability if sell now

In view of the recent downgrade of the property sector, its current share price can now be considered too high. To wait for is price to correct down further and maybe re-enter after property mart had consolidated. No hurry as got no near term catalysts

This fear had been at the back of my mind during my earlier comments above (about Lofty Share prices . A sharp correction is overdue )
"Fed officials fear financial market 'imbalances' and possibility of 'sharp reversal' in prices
Minutes from the Oct. 31-Nov. 1 Federal Open Market Committee meeting indicate some worry about rising financial markets."

This fear had been at the back of my mind during my earlier comments above (about Lofty Share prices . A sharp correction is overdue )
"Fed officials fear financial market 'imbalances' and possibility of 'sharp reversal' in prices
Minutes from the Oct. 31-Nov. 1 Federal Open Market Committee meeting indicate some worry about rising financial markets."

Had punted quite heavily on Trop several times over the past 2 years. Started it after it had fallen down to the 1.22 to 0.98 range. Recalled that it was very heavily geared at that time and its share prices gyrated with every news/announcements on its degearing moves (eg sale of its Mall in SS2 for rm540m, etc) and its quarterly results/Dividends announcements, My 1st venture was very profitable. Subsequent rounds were slightly profitable to breaking even only,
I am now completely out of Trop. (fundamentals, profits and dividends are intact but its share pricing valuation do not seem to be able to make any headway).

L&G : Entry prices 0.215 to 0.22 post RI. Holding them for long term as its various catalysts (Tg Malim landbank near the proposed New Proton City under China's Geely and the proposed redevelopment of its prime lands currently housing its Sports Club in Sri Damansara, etc) will take some time to eventuate. Meanwhile its fundamentals remain sound n continues to be profitable in the midst of the property sect slowdown/downgrade. I think its latest 2 projects (senaparc in Senawang is being priced right while its Foresster2 in Sri Damansara should also do well being in a prime location and riding on the success of its Foresster1). Lets hope we will get at least 1 sen Dividend for the current Fin Year (taking into account its RI dilution).

Was very lucky to have taken profit on NOTION about 2 weeks before its fire incident.
So sorry to see his kind of unfortunate event.

Generally somewhat cautious towards the general stock market in view of the lofty valuations of the foreign bourses (many hitting all time highs). Waiting for a clearer picture on Bursa during the 1st 3 months of 2018 before deciding whether to be more active/aggressive.

Took my family to a 3 week holiday in Sydney and a 5 day visit to Jakarta.
Sydney is very nice. Plenty to see and do but expensive due to our poor RM.
Jakarta has nothing much to offer alto surprisingly the people there are very nice and helpful.

Just taking this opportunity to blah blah. Excuse me

In view of the many uncertainties going to have significant impact arising from the recent downgrade of our property sector and the impending enforcement of MFRS 9 on our Banking industry, decided not to have any further investments in these 2 sectors until more facts and figures are available by the 1Q OF 2018

Supermarket now very competitive and quite a number of outlets had actually closed. Tesco has got a good lease option for another 1+ 30 years and hence will not tie itself down with a heavy financial investment to buy it.

Due to latest Govt freeze for approval of new malls this option is not viable for the next few years.

Provisions for impairments will now include those loans under R &R (Restructuring and Rescheduling) even tho these have not defaulted under their existing terms & conditions..
Hence MFRS9 's negative impact the the banks' bottom lines can be substantial and pervasive

The increasing glut of unsold properties resulting in the downgrade of the Property Sector will adversely affect all property Developers. The Govt approval freeze on specific categories of new projects will aggravate their business prospects and profits. Situation will deteriorate going forward.

Agree with Vin. The negative impact from the double whammy of Property Sector downgrade (which affects its lending business to the housing and construction industries) and the impending enforcement of the much stricter provisions for loan impairments under MFRS9 (which will hit its profitability and hence reduce its Dividend payouts) can gradually push down its share price to its previous support price range of 2.00 to 2.15 which hovered around here at the beginning of the year.

But according to accounting rules and Bursa guidelines, need to make reversal entry for capital gains booked in earlier quarters

• Still a bit perplexed.
• Sold subsidiary Midah Jaya Realty and booked a capital of RM8M. But later aborted.
• Symphony Life Bhd has been forced to re-acquire a property investment company sold to Octane Capital Sdn Bhd (OCSB) after failing to complete a land transfer condition in its original sale agreement. Both parties has inked a share sale agreement (SSA) on 13th October 2017 to buy back Midah Jaya Realty Sdn Bhd from OCSB for RM9.0 mln. Symphony is also expected to compensate OCSB for the legal fee and stamp duty OCSB had incurred in the initial SSA amounting to RM30,000, and up to RM300,000 funding cost. (The Edge Daily)

Any info on what happened with its Cheras Land leased to Tesco ?
Heard that deal aborted that will result in a reversal of capital gain RM8.5M thus affecting its coming Q's profitability.

Actually latest 3Q results were quite good.
Strong revenue growth of RM1,134M (more than doubled the RM551M of corresponding 3Q of last year).
Current YTD 9MTH net profit of RM77m was in fact better than the previous corresponding 9MTH of RM66M (after excluding its one-off disposal gain of RM44.4M received for last year)
Going forward future results/profits will be very strong especially with the announced Govt takeover of its Eastern Dispersal Link (EDL Toll Concession)for a total of RM2.75B (inclusive of absorbing its RM1B sukuk loan) plus its many Transport Hubs (Transit Oriented Developments (TOD worth RM50B).
MRCB is EPF controlled and a GLC)

Must remind myself.
The trend is your best friend. Never go against it.
Property Sector downgraded due to general weak property market with sentiments aggravated significantly by BNM Reports and all the Gurus's / Negative analysis causing much fears resulting in the bearish trend engulfing most property counters.

Will also negatively impact banking stocks due to its linkages to the latters' loan portfolios for property financing both in its lending business volumes as well as its risks of higher provisions for impairments especially with the impending implementation of MFRS9

Must remind myself.
The trend is your best friend. Never go against it.
Property Sector downgraded due to general weak property market with sentiments aggravated significantly by BNM Reports and all the Gurus's / Negative analysis causing much fears resulting in the bearish trend engulfing most property counters.

Will also negatively impact banking stocks due to its linkages to the latters' loan portfolios for property financing both in its lending business volumes as well as its risks of higher provisions for impairments especially with the impending implementation of MFRS9

Must remind myself.
The trend is your best friend. Never go against it.
Property Sector downgraded due to general weak property market with sentiments aggravated significantly by BNM Reports and all the Gurus's / Negative analysis causing much fears resulting in the bearish trend engulfing most property counters.

The coming implementation of MFRS 9 will hit banks hard with higher provisions for doubtful loans,
Significantly larger impairment provisions will result in lower profits and reduced dividends.
Some banks with poorer quality loan portfolios will be hit harder. Includes Affin Bank.
Already evident in its last 2 quarterly results with higher impairments due to its R & Rs (Loan Restructuring & Rescheduling) . Going forward such impairments can worsen based on the more stringent impairment procedures/conditions under MFRS 9

Shit. The speculated plan to merge with Sime Darby Property FAILED. Sime announced proceeding with its own IPO to list its Property arm and distribute ALL its property shares to Sime Darby shareholders.
Of course Sime NTA will be adjusted down. And its future profits will also be reduced after floating its property arm.
The talked about merger with Ecowld will ALSO GONE N NO MORE

UNCERTAINTIES IN ITS PROSPECTS/OUTLOOK
=======================================
1) 1Q PROFIT OF RM3.6M WAS 54% LOWER COMPARED TO ITS PRECEDING Q (4Q )
2) EcoFirst Consolidated Bhd has been charged by the Inland Revenue Board of some RM35.5 mln in additional tax and penalty. The latter had raised additional income tax assessment amounting to RM30.7 mln for its unit Pujian Development Sdn Bhd (PDSB) for assessment year 2004.
The amount involved is large

Mojigoh was part of a bipartisan Malaysian parliamentary committee to speak to the European Parliament in Brussels recently.

He however said he believed the resolution would be pushed through despite the delegation’s lengthy explanation about Malaysia’s palm oil industry.

KOTA KINABALU: The future of Malaysia’s palm oil industry is at stake as Members of the European Parliament (MEPs) gear up to ratify the proposed resolution to ban importation of palm oil into the European Union (EU) next month.

According to the vice-president of the Asia-Pacific Parliamentarians’ Conference on Environment and Development (APPCED), Marcus Mojigoh, the country could lose as much as RM10 billion in exports, making up 15% of its total exports, if the resolution is passed.

More recently, the European Parliament also voted to introduce a single certification scheme for palm oil entering the EU market, apart from phasing out the use of palm oil biodiesel by 2020.

The majority of Malaysia’s palm oil exported into the EU is used for biodiesel.

After India, the EU is Malaysia’s second-largest export market, accounting for 2,059,207 tonnes of palm oil products in 2016, according to Malaysian Palm Oil Board data.

4Q PROFITS AT RM7.8M WAS VERY GOOD (AGST PRECEDING CORRESPONDING Q OF ONLY RM0.57M).
POSITIVE PROFIT GROWTH MOMEMTUM MEANS THE 1Q PROFIT TO BE ANNOUNCED SOON WILL BE GOOD.

Likely the next 2nd interim Dividend will be a combined free Treasury shares plus a 1 sen cash D to make it another 2 sen equivalent.

1H PROFIT UP 84%.
3Q PROFITS WILL BE GOOD.
WILL GIVE 2ND INTERIM DIVIDEND. ALREADY ACCUMULATED
6,167M TREASURY SHARES . WILL CONTINUE TO ACCUMULATE MORE.
EXPECT DISTRIBUTION OF FREE TREASURY SHARES (PLUS A 1SEN CASH DIVIDEND)
SUPPORTED BY GOOD PROFITS

As always some will be more successful than
others. So many factors in play. Main thing the opportunities are greater

CONFIRMED KNOW A SENIOR EXECUTIVE IN AMP AU. MANY IT QUALIFIED PERSONNEL
FROM INDIAN NATIONALS N OTHERS FROM
MALAYSIA N SPORE
WORKING WITH PROFESSIONAL WORK PASSES.
LATEST MIGRATION WAVE BY PERSONS OF INDIAN DESCENT TO AU. VIBRANT ECONOMY
GREAT OPPORTUNITIES.

JUST LIKE ALL BANKS , MBSB BEING A LICENSED FINANCIAL INSTITUTION, WILL ALSO BE GREATLY AFFECTED BY THE ENFORCEMENT OF MFRS 9 THE NEW BNM GUIDELINES GOVERNING THE PROVISIONINGS FOR LOANS IMPAIRMENTS. MUCH MORE STRINGENT STANDARDS WHICH WILL SIGNIFICANTLY HIT ALL BANKS N FINANCE COMPANIES

OBSREVED DURING OUR FLIGHT TO SYDNEY. THE PLANE WAS 50% FILLED WITH INDIAN FAMILIES. DURING OUR SUBSEQUENT VISITS TO VARIOUS TOURIST SPOTS IN N AROUND SYDNEY WE ALSO MET LOTS OF INDIANS. UPON ENQUIRIES THERE IS NOW A GROWING TREND AMONG INDIANS EITHER FROM INDIA MOTHERLAND OR MALAYSIA OR SPORE TO MIGRATE TO AU. THEY WILL SEND THEIR CHILDREN TO STUDY IN AU UNIVERSITIES. THRN STAY ON FOR EMPLOYMENT. GET PR N THEN BRING THEIR WHOLE FAMILIES TO MIGRATE TO AU. OR THEIR PROFESSIONALLY QUALIFIED CHILDREN GETS WORK PASS TO WORK IN AU FIRST THEN GET PR N LATER MOVE OVER THEIR FAMILIES. LOTS OF INDIAN I.T. PROFESSIONALS

CALLING FROM SYDNEY AU. IN THE MIDST Of MY 3 WEEK HOLIDAYS IN AUSTRALIA. BEAUTIFUL N VIBRANT COUNTRY.
MAYBE CAN SHARE MORE OF MY OPINIONS ON AFFIN NEXT WEEK

DO NOT MATTER WHAT U THINK OF ME. YOUR OPINION IS NOT IMPORTANT TO ME.
I USUALLY DO NOT STOOP LOW TO PASS COMMENTS ON OTHER WRITERS.
I WILL JUST GIVE MY VIEWS AFTER GETTING NEW OR THE LATEST MARKET INFO.
MFRS 9 POSE REAL RISKS TO BANK SHARES
I AM SPEAKING FACTS. HENCE NOT JUST IMAGERY SCARE TACTICS.

ALSO WHEN PROFITS ARE DEPRESSED IT WILL MEAN LOWER DIVIDENDS PAYOUTS.
THAT'S THE NEW REALITY WE HAVE TO ADJUST TO WHEN CONSIDERING INVESTING IN THE BANKING AND FINANCIAL SHARES.
JUST SPEAKING FOR MYSELF AND MY LIKE-MINDED INVESTORS. THE OTHER GUYS ARE AT LIBERTY TO THINK AND REACT DIFFERENTLY

MFRS 9 IS GOING TO SERIOUSLY HIT ALL BANKS AND FINANCIAL ENTITIES'S COMING QUARTERLY PROFITS AS LOAN LOSS IMPAIRMENTS WILL JUMP UP. INVESTORS JUST CANNOT IGNORE THIS SIGNIFICANT NEGATIVE IMPACT ON THEIR FUTURE PROFITS

NO ONE CAN BE SURE THAT HIS SELECTION OF THE VARIOUS PRICE TARGETS IS RIGHT OR WRONG. BASICALLY IT BOILS DOWN TO CONSIDERATION OF FUNDAMENTALS, TIMING , GUT FEELING, AND ONE'S LUCK. MY FIRST ENTRY INTO AFFIN WAS WHEN ITS TRADING AROUND 2.25/2.28. EXITED AROUND 2.88 TO 2.95. FOR MY SECOND ROUND I DID LOOKED AT THE VARIOUS TARGET PRICES . I DECIDED TO AIM FOR UOB KAYHIAN'S 2.50. LUCKY TO ACHIEVE IT AROUND THIS PRICE AND DECIDED TO QUIT AGIN AT ABT 2.66/2.67.
NOTHING GREAT BUT RETURNS WAS OK.

OTHER GUYS CAN SELECT THE HIGHER PRICE TARGETS. I HAVE NO MISGIVINGS. I ALWAYS BELIEVE IN SHARE MARKETS THERE ARE NO SURE BETS. I ALSO HAVE MY SHARE OF MISJUDGEMENTS

HAVE TO BE REALISTIC. MFRS 9 IMPLEMENTATION IS REAL AND ALREADY EFFECTIVE

CORRECT. ALL BANKS WILL HAVE TO REACT
ACCORDINGLY. AFFIN HAD ALREADY SAID THAT
THEY HAVE TO CUT ITS DIVIDENDS.

UOB KAYHIAN'S ANALYSIS WAS PROVEN RIGHT WHEN IT PEGGED AFFIN'S FAIR VALUE AT RM2.50 (WHEN IT WAS AT 2.82. IT ACTUALLY TOUCHED 2.49). IT WAS CORRECT IN POINTING OUT ITS VULNERABILITY TO ITS LOAN IMPAIRMENT RISKS.
NOW WITH THE IMPLEMENTATION OF THE MORE STRINGENT MFRS9, ALL BANKS WILL BE BADLY HIT.
FORTUNATE TO BE ABLE TO FOLLOW UOBKAYHIAN'S N BOUGHT SOME AT 2.50/2.51 AND EXITED AT BETWEEN 2.67 TO 2.68.
SPEAKING ONLY FOR MYSELF I THINK ITS GOING TO BE RISKY TO BUY BANK SHARES NOW WITH THE ENFORCEMENT OF MFRS9.

VERY HIGH DIVIDEND YIELDS OF 9.1% TO 10.2% (MUCH HIGHER THAN BANK FDs)