The company has 7 luxury hotels worldwide. One each in Melbourne (Australia), Sydney (Australia), Kunshan (China), Singapore, Phuket (Thailand) and two in Vancouver (Canada). Most of them are bought before 2010 and still booked at the purchase prices in the balance sheet. You have heard that Chinese, Canadian and Australian properties appreciated more than 100 percent or may be 200 percent since 2010. This is an extremely undervalued stock. Tony Tiah family is challenging your patience to the limit. Those who still hold on to their shareholdings will one day be rewarded handsomely.

Look at the land bank they have, 2.4ac opposite KLCC, 3.3ac in Bukit Bintang, 4.5ac near to Mont Kiara and 40ac in Sri Damansara. All are booked at historical price. For example, the KLCC land is booked at below RM600/sq ft where the market price now is more than RM3,500/sq ft. The management will never push up the price. They want you to lose faith, confidence and patience with the company. They want you to sell cheap to them.

In fact, the development for Kajang 2 was purposel put on hold for the last few years by MKH. This is good because the township planning for the other 2 developers (Tropicana and Nadayu) which have their developments at the adjoining lands have been confirmed and MKH can now do better town planning for Kajang 2 to optimize and maximize the values of the development. Kajang 2 land location is more strategic as compared to the other 2 developments and therefore the commercial areas will serve the all three MKH, Tropicana and Nadayu developments.

The 2 entrance flyovers into Kajang 2 had been finalized. 1 of the entrances had been completed and the other one is under construction now. Very good and strategi move by MKH that they are having JV with the adjoining land owner. Now, Kajang 2 is comprising a bigger area and it will enable a better township planning for Kajang 2.

Guocoland has no project in Vietnam.

Very undervalued counter. If we compare Tropicana and EcoWorld, Tropicana is much more attractive than Ecoworld. Tropicana is in net cash position while EcoWorld is high in debt.

Two valuable and strategically located investment properties are under construction now which have the potential to be spinned off in future as REIT. The investment properties are Tropicana Gardens Mall in Kota Damansara n W Hotel in Jalan Ampang. Although there is a glut in new shopping mall supply, The Tropicana Gardens Mall may still be successful as it is directly connected to the Kota Damansara MRT Station which will start operation by end of 2016.

A few big landbank are still booked at the historical purchase price many years ago. Some dated back to the early 1990s.
1) The 121.85 acres of land in Tropicana Golf Club is still booked at RM15.39/sq. ft. The current market price should be more than RM500 / sq.ft.
2) The 800+ acres of land in Tropicana Aman in Kota Kemuning is booked at about RM30/sq. ft. (including infra work). The price should be RM80.00+ now.
3) The 88 acres of land in Tropicana Metropark near to Subang Jaya is booked at RM147/sq. ft. (including infra work). The current market value should be RM400+/sq. ft.

The sale of Tropicana City Mall is a very correct strategy. It was sold at a good price when the mall was still relevent. The mall has already been fully valued and it is going to face stiff competitions in the crowded shopping mall market going forward. I foresee the ROI and net profits from the mall will drop in the next few years.

Although many ppl are complaining about the management due to the low share price, but the capability of the management are superb. If you follow their strategy of selling many pieces of smaller size or less strategic landbank, you will know that the management are fast in action n with superb capability.

The RNAV (actual value of the company after valuing taking the landbank n investment properties to the current market price) is RM5.11/share according to CIMB. The current trading price of RM1.06 is only about 21% of the actual value. It is like a small condo worth RM511k trading at RM106k now. It is unbelievably cheap. The market has priced the company wrongly.

WHY THE PRICE STAYS LOW? Well, to the major shareholder, they are happy with the low price that the market value the company. They can slowly and quietly collect additional shares from the market. Some of them will be collected by Tropicana as Share Buy Back. Until they have collected enough, they will let the price move to the actual value.

Beginning of the road to recovery.
Company will be in net cash position.
Asset realisation has been very successful.
Landbanks are in strategic locations.

jlh14 had hinted on a corporate development coming few months ago. Is this the time for it to materialise?

Is it correct to just value a property counter by basing on its PE ratio? I thk it is wrong, it shld be PE ratio together with its RNAV(Revised Net Asset Value).

For simplified example, we assume a company just has one shophpouse that is worth RM2mil. The shophouse is able to generate income of RM200k per year in 2014
Therfore
PE ratio = 10
Market capitalisation = RM2mil (Assume 1mil shares, share price=RM2.00)

In 2016, property market is bad. The income generated drops to RM100k. Market reacted n share price drops to RM1.00 because ppl focus to its profit n PE ratio.
PE ratio = 10
Market capitalisation = RM1mil.

Just think, has the the value of the shophouse drops to RM1mil due to the lower income. It has not, the value is still RM2mil.

The big IB analysts always merely based on PE ratio to make their calls and this is totally wrong. It has make the property counters severely undervalued. That is the reason a lot of privatisation happened in these few years. To name a few,

Hunza is privatised at RM2.90 when the actual woth is RM9.00
OSK Property is privatised at RM2.00 when the actual worth is RM6.50

The major shareholders knows the actual values of their companies n they are laughing all the way to the bank.

Is it correct to just value a property counter by basing on its PE ratio? I thk it is wrong, it shld be PE ratio together with its RNAV(Revised Net Asset Value).

For simplified example, we assume a company just has one shophpouse that is worth RM2mil. The shophouse is able to generate income of RM200k per year in 2014
Therfore
PE ratio = 10
Market capitalisation = RM2mil (Assume 1mil shares, share price=RM2.00)

In 2016, property market is bad. The income generated drops to RM100k. Market reacted n share price drops to RM1.00 because ppl focus to its profit n PE ratio.
PE ratio = 10
Market capitalisation = RM1mil.

Just think, has the the value of the shophouse drops to RM1mil due to the lower income. It has not, the value is still RM2mil.

The big IB analysts always merely based on PE ratio to make their calls and this is totally wrong. It has make the property counters severely undervalued. That is the reason a lot of privatisation happened in these few years. To name a few,

Hunza is privatised at RM2.90 when the actual woth is RM9.00
OSK Property is privatised at RM2.00 when the actual worth is RM6.50

The major shareholders knows the actual values of their companies n they are laughing all the way to the bank.

Many of the MKH land bank are closed to the stations of MRT1 and MRT2. These include Jalan Tun Razak project, Saville Cheras, Jalan Bukit project and MKH City. Furthermore, Kajang 2 and its adjacent, Kajang South (new land bank)are in very good location and will be well received. During slow market like now, MKH also can launch their more affordable products like Bandar Teknologi,Saville @ Kajang n Saville @ D'Lake. Therefore, the company is still doing very well at this time.

The management of MKH are people with integrity. Their track record has shown that the shareholders are well rewarded for holding long term.

20/07/2016 23:15

Many of the MKH land bank are closed to the stations of MRT1 and MRT2. These include Jalan Tun Razak project, Saville Cheras, Jalan Bukit project and MKH City. Furthermore, Kajang 2 and its adjacent, Kajang South (new land bank)are in very good location and will be well received. During slow market like now, MKH also can launch their more affordable products like Bandar Teknologi,Saville @ Kajang n Saville @ D'Lake. Therefore, the company is still doing very well at this time.

The management of MKH are people with integrity. Their track record has shown that the shareholders are well rewarded for holding long term.

TA Ent owns 61% of TAGB. Can be applied on TA Ent also.

I thk KSL n TROP are the same. Both are with deep values but not reflected in their share prices. The bosses of these two companies may be suppressing the prices so that they can collect more at cheap price.....

Icon8888 was very accurate in calling a "buy" in AirAsia. He said price will move up to RM2.10 and it has hit the target. Let's hope that he is also accurate in calling a "buy" in Tropicana.

The management doesn't bother abt its share price n reputation. Tony Tiah n Ong Leong Huat are the same. They won't let their shareholders make money.

Include in MSCI also no use. The management doesn't bother abt its share price n reputation. Tony Tiah n Ong Leong Huat are the same. They won't let their shareholders make money.

Bad GDP figures may be a good reason for Bank Negara to reduce interest rates. Bank Negara will meet on 19 May and we hope for a good announcement.

In the US, bad GDP figures were welcomed by Wall Streets in the last few years because it meant further monetary easing or delay in interest rates hike. So, sometimes economic bad news may turned out good especially to the interest rate sensitive sectors like property.

Sunway is for medium to long terms.

Sunway has an advantages as compared to other developers.

At good times, the company will launch more products (residential n commercial) for sales.

At bad times when sales are not so good, the company will construct more investment properties like shopping malls, hotels n hospitals. These investment properties will later be injected into SunReit. It is a win-win situation for both Sunway n SunReit. Sunway will be able to sell the properties with good profits. SunReit will possess good investment properties for rental income.

Tiah Joo Kim is in the helm since Jan 2016. His performance in leading the Trump Vancouver project has proved that he is able to deliver and he is now in charge of the whole TAGB. According to The Edge, he said that

- The performance of the 6 hotels has room for improvements before going for REIT. He knows the problems and going to tackle it.

- The plans to launch the Activo Suites, Dutamas which have been delayed for a few years will be carried out soon.

- He will be overseeing the TA3 n TA4 mixed development opposite KLCC which is quite similar to Trump Vancouver that was a successful development.

Hope that the Tiah junior will lead the company to greater heights n eventually raise the share price of TAGB.

Sunway to double portfolio of malls

PETALING JAYA: The Sunway Group aims to double its portfolio of shopping malls from five malls with a total net lettable area (NLA) of 4.5 million sq ft this year to 10 malls with 10 million sq ft NLA by 2020.

"Our inventory of space is about 4.5 million sq ft. In five years' time by 2020, we hope to have up to 10 million sq ft NLA. Today we are already one of the largest shopping mall owner-operator in the country," Sunway Shopping Malls & Theme Parks CEO HC Chan told SunBiz in an interview.

"Sunway Pyramid today, with the completion of our extension of Sunway Pyramid Part 3, are now closer to two million sq ft NLA. At Sunway Velocity, which is opening at end of this year, we have another one million sq ft while Sunway Putra Mall is another half million sq ft," he said.

The group also has a mall in Seberang Jaya, Penang named Sunway Carnival with 500,000 sq ft as well as a smaller mall located in Kota Damansara named Sunway Giza, which has about 100,000 sq ft NLA.

"We've come a long way from a single mall. Eighteen years ago, we had Sunway Pyramid. Now we have five malls and in the coming years, we will have 10," he said.

Also coming onstream over the next few years are the extension of Sunway Pyramid, that is Sunway Pyramid Part 4; a new mall within Sunway Iskandar in Johor; a new mall in Paya Terubong, Penang; and an outlet mall within Lost World of Tambun in Ipoh, Perak.

For Sunway Pyramid Part 4, Chan said it is in the planning stage for an additional 500,000 sq ft and will be rolled out when the timing is right, depending on demand.

"We still have land to expand the mall... the mall business is dynamic and we have the land area to grow. We can grow based on demand. When there is good, strong demand, we will build," he said.

He said the group is also planning to build a mall within its Sunway Iskandar project in Johor. The mall, which will be located within the 2,000-acre integrated development, will measure at least one million sq ft.

Over in Penang, the group plans to build a one million sq ft mall in Paya Terubong. This will be its second shopping mall in the state – while in Ipoh, a 500,000 sq ft outlet mall will be added to complement the existing theme park, hotel and hot spring within Lost World of Tambun.

"For the mall in Paya Terubong, we plan to open it in a few years time. If all goes well, we will start construction next year. Then, maybe along the way, we could possibly acquire one or two malls over the next few years. That will add up to 10 malls for the 10 million sq ft NLA by 2020," said Chan.

According to Chan, 2015 was a tough year due to the supply of new malls and intensified competition. However, the group remains confident of doubling its shopping malls division's pre-tax profit from RM250 million now to RM500 million by 2020 based on its pipeline of new malls and mall extensions.

He said all its malls are located in strategic urbanised locations and mature catchment areas. The group also differentiates itself by building integrated developments rather than standalone malls.

"There are many malls but what is the differentiation? Malls have moved over the years from functional shopping to experiential shopping, and Sunway Shopping Malls is going along that route.

"Today, in a shopping mall, food and beverage (F&B) is 30%. I remember when I started my career over 30 years ago, F&B was less than 10%. If you add up the non-shopping components – F&B, leisure (entertainment activities like bowling, cinemas, etc), services like telco, massages, banks – these already exceed 50%. When over 50% of a mall is non-shopping, it should be called a lifestyle mall," he added.

http://www.thesundaily.my/news/1740959

Rumour is saying that the land bought by Putrajaya in Sepang is for affordable housing. Anyone can confirm this? If it is true, will Guocoland become the contractor to build the houses?

Earning visibilities for FY2016 will be at RM0.40 and FY2017, RM0.40. This counter is very much undervalued. The land in Sepang is being sold to Putrajaya where there will be synergies to develop the land. Very good prospect counter.

EnO_TurboBlast, agree with you that debt will be cut down with the listing of E&O UK. Hopefully, the valuation is much higher than the cost that E&O paid for the properties in the last 2 years. Then, it will be booked as profits.

E&O will bring in a strategic partner. Could this foreign partner be Fudosan? Is the strategic partner going to commit on some specific land lots at specific prices? Quite anxious to know how it is going to pan out. If there is a confirmed price, this will become a benchmark.

No idea. With LTH and Yayasan Bumiputra's reactions unclear, KTT has not started the privatisation process. He definitely want to take it private as just Gurney Paragon already worth RM5.11/share.

Usually, OSKProp quarterly results are released in the beginning or middle of the reporting months. This time it is very different. Only two more days to go. Is the results too good that it may influence the shareholders to reject his offer?............

OSK n PAC have already amassed 85% of the shares. It looks like OSK n PAC may succeed in taking over OSKProp.
Why doesn't OLH leave OSKProp listed n merge with PJDev? This may be a better option where the share price of the OSKProp n PJDev merged entity will become benchmark price for the holding company OSKH. They can also spin off the hotel n Atria Mall as REIT taking over the listing status left behind by one of the merged company.

LTH has been buying for few days already. Do not know what is their plan?

Govn will acquire some land from Symlife for Langsat 2. Does Symlife need to wait for the acquisition to be firmed up before they can start the development?

The major shareholders are pushing down the price to penny stocks. How to convince the house buyers abt the strength of the company when the share price is always moving south?

Pls do not accept OLH's offer. If you accept his offer n exchange with OSKH, the share base of OSKH will be very much bigger. The earnings per share will be diluted n the upside of OSKH is much lesser as compared to OSKP (If the OSKP is remain listed.)

The offer price of KTT is very unreasonable. Does anybody know abt the actions of Lembaga Tabung Haji n Yayasan Bumiputra? I think the minority shareholders should not consider anything below RM6.00.

The RNAV of Hunza

Assets of Hunza
Gurney Paragon (Hunza) - Value/share = RM5.11/share
Bayan Baru Development Land measuring 42.3acres - Value/Share = RM2.46/share
400 acres in Bandar Putra Bertam, Seberang Perai
9.8 acres in Alila 2, Tanjung Bungah
6 acres near to Mont Kiara (KL)
36.9 acres near Auto City, Juru, Seberang Perai
500 acres in Sungai Petani (Kedah)
Treasury Shares of 10% of Hunza shares

Add : Other assets
Less : All Liabilties

The RNAV of Hunza is RM9.50/share

Shareholders, the offer price of RM2.90 per share is only 30% of the actual value. Reject the offer.

We hope that Lembaga Tabung Haji n Yayasan Bumiputra will act on the interest of their contributors and act like it is their own money.

Even the offer price is revised to RM2.85, it is still a big advantage to KTT. Paying RM2.85 for things worth more than RM7.57. They don't want to share the harvest with the shareholders that have put in the capital in the company.

Just a reminder to the shareholders,

The actual value of this counter is more than RM7.57/share. Do not accpt the offer from KTT.

Let us look at one of the Hunza properties - Gurney Paragon
We use its next door shopping mall Gurney Plaza as a benchmark.

From CapitalMalls Malaysia Trust 2014 Annual Report.

Gurney Plaza (CapitalMalls Malaysia Trust)
Net Lettable Area : 887,764 sq. ft., Independent valuation : RM1,295mil.
Value/ sq. ft. = RM1,458.72

Gurney Paragon (Hunza)
Net Lettable Area : 720,000 sq. ft.
Value = 720,000xRM1,458.72 = RM1,050.28mil
Hunza Tower
Net Lettable Area : 100,000 sq. ft.
Value = 100,000xRM1,000.00 = RM 100mil
Total Value of Gurney Paragon = RM1,150,28mil
Total no. of Hunza Shares in Market 225,085,440 shares
(From Khor Teng Tong Holdings Sdn. Bhd. Offer Letter)
Value/share = RM5.11/share

Bayan Baru Development Land measuring 42.3acres.
The current value/sq.ft. of the land is RM 300.00/sq. ft.
This piece of land worth RM552.78mil
Value/Share = RM2.46/share

Shareholders, just these 2 prime properties,
Hunza already worth RM7.57/share. The offer price of RM2.50 is totally unfair.

There are other valuable assets
400 acres in Bandar Putra Bertam, Seberang Perai
9.8 acres in Alila 2, Tanjung Bungah
6 acres near to Mont Kiara (KL)
36.9 acres near Auto City, Juru, Seberang Perai
500 acres in Sungai Petani (Kedah)

You should hang on to your OSK Property and reject the offer.

In this financial year end.
OSKP is estimated to make RM0.60 per share.
OSKH is estimated to make RM0.32 per share (including RHB, OSKP n PJD profits).

The earnings are diluted and share price of OSKH will be lower than OSKP.

Very good move by OLH,
For each OSKProp share he sold to OSKH,
he is getting 1 share OSKH + RM0.15 dividend + 0.25 share OSKH-W
= RM2.25 + RM0.15 + RM0.15 ( Assume OSKH-W will trade at RM0.60)
= RM2.55

The OSKP minority shareholders will not be entitled to RM0.15 dividend and warrant bonus issue.

I think OLH also intends to maintain OSKP listing status. Minority shareholders should not accept his offer.

I believe that the EPS for FY15 will be RM0.25, FY16 RM0.40 from Damansara City alone. This counter should rise very soon in line with the release of 4th quarter report in August.

Agree with both of you. The biggest asset (more than 70% of total asset value) of OSK Holdings is the shareholdings of RHBCap. However, RHBCap share price has dropped from RM8.40 to RM7.45 since the announcement of the offer which has made OSK Holdings less valuable. Therefore, the offer price should and could be revised based on all these facts.

Atria is opened today. Will the mall be revalued since it is already opened? From the 2014 annual report, the book value of the mall is only RM4.5mil. The mall (470,000 sq.ft.) is slightly bigger than Tropicana Mall (435,000 sq.ft.). Tropicana Mall is now in the process of being sold to CMMT at RM480mil. Based on the valuation of Tropicana Mall, Atria Mall should be revalued at RM520mil which translates to a valuation gain of RM515.5mil or RM2.12/share. If this valuation gain is added to the NAV of OSKProp, the RNAV should be RM4.34 per share. Comparing to NAV of OSKH at RM2.85, the offer price for OSKProp should revised upwards substantially.
Icon8888 and Ooi Teik Bee, your views are much appreciated.

I think if a lot of minorities turn up to vote, it is impossible for OLH to get 90% approval. However, the key is how many minority shareholders will turn up?

This is OLH Style, not Gangnam Style. Dividend paid but deduct from the offer price. Like give bonus but deduct from your salary. Press until no more juice coming out.

The EPS for Q1 is 19.85 sen. The full year EPS could be between 50sen to 60 sen per share because the development projects are in quite advance stage. The share price should be at least between RM4.00 to RM4.80 based on 8 times PE. Basing on 10 times PE, the share should trade between RM5.00 to RM6.00. I think the EPS of 50 sen to 60 sen is achievable because the projects in Cyberjaya, Atria Sovos and Mirage KL are in advance stage of developments and more profit can be recognised.

After the ex-date, the mother share will be adjusted down 11 sen. The warrant exercise price is adjusted to RM2.43 from the present RM2.50. If the price is RM3.90 (same as the current trading price) before ex. After ex the mother should be RM3.79. The warrant price should be RM1.36. Therefore, the warrant price now should trade at RM1.36 if the dividend in kind is taken into consideration.

For the anticipated special dividend of RM0.22-RM0.25, will the conversion price of Sunway Warrant be adjusted?

MulphaLand is trading at RM0.925 which is 86% higher than the general offer price of RM0.497. It needs a general offer for the investors to look into the real value of the counter and realise that the real value is very much higher than the general offer price. This does not happen in Hunza. May be Hunza is too low profile and not many people care.

wan7075, KTT holds about 57% as stated in the annual report. Whether he will succeed or not will depend on the vote in the EGM.

The carpark land beside Hotel Maya is also owned by SDred?