GST is not an expenses

PNB BOUGHT AT LEAST 5% SO FAR

Target RM3.96


This under-researched small-cap property company is trading at only 5.6x CY15 P/E and a massive 72% discount to its RM6.60 RNAV/share. The discount should narrow as more investors wake up to the potential of its projects in the Klang Valley and Kota Kinabalu, Sabah. Apart from this, SBC's share price could be catalysed by the start of the Jesselton Quay JV project. We begin coverage with an Add rating. Our target price is RM3.96 as we apply a 40% discount to its RNAV, in line with the discount for other small-cap property stocks.


Apart from this, SBC's share price could be catalysed by the start of the Jesselton Quay JV project. We begin coverage with an Add rating. Our target price is RM3.96 as we apply a 40% discount to its RNAV, in line with the discount for other small-cap property stocks.

another HUAY YANG IS MAKING....

60% up to go

cimb gave TP RM8.00

Source: Prospectus, HwangDBS Vickers
Prospects
MyKad contract boost. In 2011, the NRD awarded a
contract to DT to supply 4m raw MyKad made from 100%
polycarbonate material with new security features,
operating system (OS) and chips. The contract duration is
from 1 Jan 2012 to 31 Dec 2013.

Based on an overall estimated value of RM113m – from the
sale of cards, sale of consumables (e.g. ribbons, cleaners
and other products for card lamination), sale of equipment
and maintenance services – we expect this contract to
contribute RM102m turnover in FY12.
Our revenue recognition assumes the delivery of the entire
4m cards by the end of this year, given the high registration
rate for MyKad thus far. Reflecting the maiden impact, Jan-
Feb 2012, card sales revenues jumped from RM64k to
RM12.6m, and gross profit from RM18k to RM5.8m.

EXPIRED 31 DEC 2013??????????????????

http://www.theedgemalaysia.com/business-news/281127-iris-aims-to-win-back-mykad-contract-at-any-cost.html

IS THIS WHY DSONIC COMING DOWN, NOT MUCH ON UMA.

Principal Officer

Name

Name of Registered Holder

Date of Acquired

Number of Ordinary Shares of RM0.10 each acquired

Price per share (RM)

Percentage of Issued shares acquired (%)

Balance of shares


Chew Chi Hong


CIMSEC Nominees (Tempatan) Sdn Bhd CIMB Bank for Chew Chi Hong

02.04.2014

130,000

4.70

0.0193


LOSS RM130,000 WITHIN 2 DAYS.?

Datasonic to be declared ‘designated security’?
Posted on 4 April 2014 - 05:40am
Lee Weng Khuen
sunbiz@thesundaily.com
Print PETALING JAYA: Datasonic Group Bhd, which has seen its market capitalisation jump more than 17 times since its listing in September 2012, continues to reach new heights despite the stock exchange regulator's caution to investors in the trading of its stocks and call warrants, making the possibility of the counter being accorded "designated security" status very real.

"We really don't know how far its share price can go, but if it continues to soar, Datasonic may be given 'designated securities' status by the authority," TA Securities Investment Manager Lam Chi Mun told SunBiz.

Declaring a counter as a "designated security" does not stop trading in the stock but does seek to curb excessive speculation by requiring payment upfront before purchasing and a free balance of securities before selling.

After all, stock exchange regulator Bursa Malaysia drew criticism the last time it declared a stock "designated security", with players opining that it had acted too slowly.

The most recent stock given "designated securities" status was Harvest Court Industries Bhd, which saw its shares climbing drastically after the prime minister's second son Nazifuddin Najib bought into the company.

Harvest was declared a "designated security" back in mid-November 2011. It was lifted two months later.

Analysts observe that institutional participation in Datasonic is insignificant, signalling that retail investors are playing an active role in driving the share price up.

"We don't see big funds and strategic investors holding the stock, maybe retail buying (is being done) on the momentum they have seen in the company," said Interpac Securities head of research Pong Teng Siew.

According to Datasonic's latest annual report major shareholder Datuk Abu Hanifah, who is also the managing director, holds a 68.55% stake, inclusive of the indirect interest through Dibena Enterprise Sdn Bhd. Lembaga Tabung Angkatan Tentera holds 2.93%.

Datasonic, an electronic identification company, is seen as the main beneficiary of the compulsory migration to the new MyKad. It posted a net profit of RM81.90 million for the financial year ended Dec 31, 2013, representing a leap in growth of 191.27% as a result of higher revenue earned.

Buying up by insider. Good news coming? New developer like Tambun Indah or Huay Yang?

GOOD>>>>>>>>>>>>>>

Forum objective is sharing information, discussion and encouragement. I dont think the objective is attacking people.

Optimus: Thank you. Dont SEE YOU!

Optimus: Everyone have their choice to promote or not. If you want to promote other counter, then you should go to other forum.PLEASE>>>>>>

Optimus: Provide information? Are you doing here now? You seem like attacking people rather than providing info.

Optimus: i tot this forum should promote iRIS. If not please tell me. TQ

According to Tan, Felda will have two representatives on the Iris board. Tan, who is Iris co-founder with an 11% stake based on the company’s 2013 annual report, said the issue of who should be running Iris’ day-to-day operations does not arise as the role of a shareholder is completely different.

“With their [Felda] shareholding, there is RM500 million in potential business and this is a kind of collaboration [that we are looking at],” he told newsmen after the company’s extraordinary general meeting (EGM) yesterday.

At the EGM, the Iris board obtained approval from shareholders for the proposed related party transactions worth approximately RM487 million from projects to be awarded by Felda under its “Sentuhan Kasih” project.

Under the “Sentuhan Kasih” project, Iris will be involved in the development of self-sustaining, modern agricultural villages in at least seven Felda sites in several states across peninsular Malaysia.

It has been reported Iris will use its integrated building system (IBS) technology to speedily construct and deliver affordable houses as well as aquaponic farms in these modern agricultural villages.

On Iris’s recent move to acquire a 64.6% stake in financially troubled Versatile Creative Bhd (VCB), Tan said VCB has the expertise and know-how in the packaging business which will complement the group’s farm business.

As the Iris Group is not equipped with the required expertise in food packaging and distribution, he noted that the proposed acquisition of VCB Group would be a strategic fit into the proposed business plan of its food distribution division.

Though VCB is still in “marginal loss”, Tan expects the company to start making a turnaround moving forward and expects a 10% contribution from it to Iris’s revenue. The acquisition resulted in VCB being a subsidiary of Iris Healthcare Sdn Bhd.

Iris, which began as an e-passport provider, has grown over the years and has added six new businesses, namely payment and transport; food security, environment and renewable energy; industrialised building system, and; sustainable development and education.

IRIS Corp Bhd (Iris) has breached the RM1 billion market capitalisation mark amid the stock's continued rally amid rumours that the Federal Land Development Authority (Felda) may attempt to take over the company.

Last Wednesday, the ACE Market-listed stock surged to 50 sen, its highest close in nearly nine years, which gives it a market capitalisation of RM985 million.

Latest data from Bloomberg shows that the biometric solutions provider now has a market capitalisation of RM1.05 billion.

The stock rose to an intraday high of 54 sen yesterday before closing the day two sen higher at 53 sen, with 85.46 million units changing hands.

Talk of a Felda takeover plan spread like wildfire on the trading floor recently with 88 sen per share.

In an attempt to douse the rumours, Iris managing director Datuk Tan Say Jim was quoted as saying that there was no discussion (on the matter) at the board level.

Felda owns 26.7 per cent of Iris while Tan's stake is believed to be under 11 per cent.

Iris provides identification solutions to four countries in Africa, namely Egypt, Tanzania, Senegal and Nigeria. - BT

MALAYSIA - Iris Corporation Berhad, Stamford College and Federation University Australia have signed a memorandum of understanding to launch the Higher Education 1Malaysia (he1m) programme.

Under the programme, students only have to pay RM1 (S$0.40) during their first year of education in a course of their choice at Stamford College.

With the aim of providing education to every Malaysian, he1m is open to all Malaysian students who wish to pursue their diploma or degree in Business, Hospitality, Law, Applied Management, Information Technology or Accounting and Finance at Stamford College.

Prospective students who have received three SPM credits can enrol in any diploma course at the college with a RM1 Foundation year through he1m.

Likewise, students who have received five SPM credits can pursue a degree course with a RM1 Foundation year.

Students who choose to transfer to another institution after the first year will have to pay the standard foundation course fee of RM13,440.

Upon completion of the foundation, the college will assist students with their National Higher Education Fund Corporation (PTPTN) loan applications.

The college will also absorb any balance of fees payment between the PTPTN loan and the diploma or degree course fees.

In conjunction with Stamford College's 64th year anniversary, the RM1 offer will be available to the first 64 registrants for the next foundation year intake.

"Knowledge and education are the keys to developing any nation," said Stamford College managing director Datuk Vincent Leong who is also IRIS Education Division chief executive officer.

"As one of the oldest institutions in Malaysia, Stamford College wants to do its part in ensuring that quality education is within reach to everyone. he1m will ensure that no one is left behind in the race towards development."

Stamford College and IRIS will also launch the Tan Sri Razali Lecture Series where experts in targeted fields will share their expertise on industry challenges and how future students can overcome them.

"In order to reach first world status, Malaysians need to be exposed to an education that accurately communicates the challenges and skills they will face after their higher education," said IRIS Corporation Bhd and Stamford College chairman Tan Sri Razali Ismail.

"IRIS has been a technology innovator for a number of years, pioneering and piloting many successful projects in different industries. We are very excited to share our expertise and resources through he1m to develop a holistic, quality education for Malaysians."

Federation University Australia vice-chancellor Prof David Battersby said: "We are working closely with IRIS and Stamford College to develop courses that are targeted at delivering the right skill sets and knowledge for Malaysians to be successful."

Prospective students can start applying for a place in the he1m programme at all Stamford College locations.

Five new property players
By STAR PROPERTY MY

E-PASSPORT maker Iris Corp Bhd is no stranger to the market, having had its news-making moments.

While most will recall how Iris, the stock was designated many years back due to excessive speculation, these days investors are talking more about Federal Land Development Authority (Felda) coming in as the largest shareholder in the company and its foray into property market.

Iris is reportedly going to venture into the property segment via joint ventures in overseas markets.

According to recent media reports, the company would embark on its first project in Papua New Guinea and consequently in Angola and China.

Iris has been involved in developing homes for Felda.

AT LEAST four parties, two of which are listed on Bursa Malaysia, have submitted proposals to manage Malaysia’s Tourist Refund Scheme (TRS) and the outcome is likely to be announced after Chinese New Year, say sources.

The refund of the Goods and Services Tax (GST) to foreign tourists is crucial as Malaysia is working on establishing itself as an international shopping haven. A GST of 6% will be imposed beginning April 1, 2015.

Sources say the bidders have each tied up with an international group as the tender requires that the company, which will essentially build, operate and own the system, must have at least five years’ experience in tourist refund. And the majority stake of 51% in the joint-venture (JV) company must be held by a local.

Apart from ACE Market-listed ManagePay Systems Bhd (MPay), which made an announcement on Dec 9, 2013, that it had entered into a partnership with South Korea’s Global Tax Free Co Ltd (GTF) to bid for the deal, The Edge understands that the other listed bidder is ACE Market-listed firm Iris Corp Bhd, which is in partnership with Swiss-based Global Blue.

The other two parties are believed to be Salihin Consulting Group Sdn Bhd, which is in partnership with Innova Taxfree Group of Spain, and Islah Wawasan Sdn Bhd, which has formed a JV with Premier Tax Free of Ireland.

KUALA LUMPUR: Iris Corp Bhd’s property development foray into Solomon Islands is estimated to generate a potential gross development value of RM1bil and see its “Smart Village” template being replicated overseas.

Group managing director Datuk Tan Say Jim told StarBiz the venture materialised when the group chanced upon a Sarawakian partner who owned land in Soloman Islands. Iris will provide its IRIS-KOTO industrialised building system (IBS) for the development, which Tan claimed allowed for the construction of a double-storey bungalow in four weeks.

The company announced last month it would take a 51% stake in JR Development (SI) Co Ltd for close to RM3mil. The deal would give it the opportunity to develop properties on 100ha in Mamara, Honiara, Solomon Islands.

Tan said although it would appear that property development was a new foray for the e-passport maker, Iris had acquired the know-how two years earlier after it completed the Rimbunan Kaseh smart village project in Lipis, Pahang.

The project is a township that provides affordable houses, recreational facilities and an integrated, sustainable farm for the community.

“The only difference between us and other property developers is that we do not have to find the land and sell the houses,” he quipped.

With that experience in Lipis, the company is prepared to sell houses commercially.

Tan said the company was invited to the Solomon Islands after the Prime Minister of Papua New Guinea visited Iris a few years ago.

Due to the price of houses there and the technology Iris has, the company felt it could fetch a double-digit profit margin for every house it builds. Tan said the homes it builds could see the company being categorised as a builder of medium- to high-end houses in the Solomon Islands.

Further, as it did not incur any holding cost for the land, it did not have to commit much capital, which made the opportunity seem attractive, he added.

At present, Iris is negotiating with a company in the Republic of Palau, a popular diving destination also in the Oceania region, for possible ventures, Tan said.

Eventually, the company hopes to set up a factory in the region to supply its IBS products as it grows bigger.

Commenting on its move to tender for jobs under the tourist refund scheme, he said: “Our trusted identification business requires us to work at airports, which is usually where tourists claim their refunds. So, it is a natural progression for us.”

Meanwhile, its Swiss partner, Global Blue, is a goods and services tax solutions expert, which has footprints in the United Kingdom, Singapore and South Korea, among others.

Iris Corp Bhd is now ready for an upgrade to the Main Market of Bursa Malaysia from the ACE Market following the entry of Federal Land Development Authority (Felda) as a substantial shareholder with a 20% stake in the e-passport supplier, said Iris managing director Datuk Tan Say Jim.

"Previously, my (Iris) board members and I believed that if the group's revenue did not reach a certain size, we would rather be a big company in the ACE Market rather than a small company in the Main Market," he told reporters after the group's EGM here yesterday.

"However, I think we should consider (transferring to the Main Market) now," he said, adding that his softening stance was also due to the entry of Felda.

"We have to be mindful. When a new shareholder comes in, we have to explore (opportunities) and be open to possibilities," he added.

Iris recently placed out 394.09 million new shares to Felda for RM110.3 million or 28 sen each, giving the authority a 25% stake in the group. Following yesterday's shareholder approval for the private placement, Felda now owns 20% of Iris' enlarged share capital.

"Our track record has shown that Iris is qualified to get transferred to the Main Market," said Tan. However, no timeline has been set for this move.

Meanwhile, Tan said out of the RM110.3 million, RM25 million will be used for capital expenditure within a year.

The group intends to spend RM15 million for the acquisition of a piece of land to construct a new factory for its Iris Koto industrialised building system (IBS) division at Technology Park Malaysia, Selangor.

The group's current factory in Kampung Melayu Subang is a rented premises, and its capacity of building 1,000 IBS houses a year is not adequate to meet Felda's demands.

"We will buy the land within two months, and the new factory will be completed within a year from then. We will be able to increase our capacity to build up to 5,000 single-storey houses a year (with the new factory)," he said.

It was reported that Felda is looking to build 20,000 IBS houses over the next five years.

"We don't expect them (Felda) to give us all (projects), which is not right, but we are quite confident that they'll give us some, because Iris is one of their associate companies," said Tan.

He added that while Felda's shareholding allows for the authority to nominate two directors to the board of the company, his management team will remain unchanged.

"The strategic direction of Iris will continue as what we have been doing over the past few years," he said.

Going forward, Iris plans to build IBS houses in oversea markets, and is now exploring opportunities in countries within the region of the Pacific Islands.

"We are currently negotiating with some property developers in Papua New Guinea and Solomons Island, hoping to supply our Iris Koto's IBS to them," said Tan.

He said these countries face a shortage of building materials and the cost of shipping these materials are expensive, making the IBS system a more viable one for them.

"We are not stopping there, I want to go South Africa and other parts of Asean too, as long as they need us to build houses quickly," he added.

Iris Corp Bhd, a 25.6%-owned associate of Federal Land Development Authority (Felda), is still pursuing its plan to venture into the education sector through Stamford College Bhd and has identified vocational education as its potential market segment, said its managing director Datuk Tan Say Jim (pix).

"The competition in the education sector is stiff, but we are looking at a different market segment. Iris would like to go into vocational education, which is a big segment of the market, as Malaysia faces a lack of skilled blue-collar workers," Tan told reporters after the group's EGM here yesterday.

He said Iris will start off its education business by offering vocational training courses in polytechnic institutes.

"Today, you will find most blue-collar workers are no longer Malaysian, but Bangladeshi or Nepalese. Our (local) blue-collar workers are missing. Aren't we getting all these skill sets in the past?" said Tan.

In October 2012, Iris had entered into agreements with Stamford College to acquire a 51% stake in Stamford College (PJ) Sdn Bhd and Stamford College (Malacca) Sdn Bhd for RM2.5 million cash.

However, Iris had on February 2013 received a writ of summons from Stamford College, as the vendor claimed it has not received the balance purchase consideration of RM2.25 million from Iris and demand an interest on that at 5% per year.
"Our acquisition of Stamford College's subsidiaries had embroiled into an issue with the vendor and we are now in the midst of a court case, but I hope to finalise things within the next six months," said Tan.

"Here in Iris, we do very basic things. We have business solution, food security, environment security, and we build homes recently. Going forward, there is a big push for education and we see basic education as our next opportunity," he added.

Earlier at the EGM, shareholders gave Iris the go-ahead to buy the remaining 75% stake in packaging product maker Versatile Creative Bhd for RM40 million or 50 sen per share cash.

Tan and Iris co-founder Datuk Lee Kwee Hiang, the joint offerors for the acquisition, together control some 25% stake in Versatile Creative.

To date, Iris has acquired a 49.8% stake in Versatile Creative.

"Iris is already in the farming business and I would like to add value and turnover for this business. The food prices will go up as there will always be requirement for food. Therefore, we have to go downstream," he said.

The acquisition of Versatile Creative is expected to complete by next month, and will contribute positively to Iris from financial year ending March 31, 2015

PETALING JAYA (Feb 21, 2014): Iris Corp Bhd's subsidiary, Iris Land Sdn Bhd is taking a 30% stake in the owner and developer of a 75ha villa and resort project in the Republic of Palau for US$2 million (RM6.6 million).

The Republic of Palau is a grouping of 250 islands located in the western Pacific Ocean.

Iris Land entered into a share sales, shareholders', development rights and an assignment of lease agreements with UK Investment Holdings Ltd for a 30% stake in its subsidiary Palau Peleliu Resorts Ltd (PPRL).

Iris said the subscription of shares in PPRL and the development project in the Republic of Palau is an investment to enable it to expand its business in realty development utilizing its IRIS-Koto Industrialised Building System (IBS) to an international level.

Iris Corp Bhd has entered into a memorandum of understanding (MoU) with China’s CPC Handan Municipal Committee for an agro-economy integrated farming prototype in Handan, China.

In a filing with Bursa Malaysia yesterday, Iris said the MoU was for the replication and implementation of the Rimbunan Kaseh project.

The MOU will be for a period of six months from the date of execution and shall expire automatically subject to parties entering into an extension or entering into a definitive agreement for the project whichever the sooner.

IRIS Corp Bhd, the creator of the MyKad, aims to win back the MyKad
contract at any cost, said its CEO for Trusted Identification Division,
Datuk Hamdan Mohd Hassan. Hamdan said the company lost the contract
in 2010 as the rival offered competitive pricing. "Yes, we want the contract
which was taken away from us. The company held it from April 2001 until
2010," he told. He said it was also not because IRIS could not adhere to the
standards required but that they were lowered. "When MyKad was introduced,
we installed eight utility applications in the card, among them, automated teller
machine, Malaysian Electronic Payment System and Touch 'n' Go. The current
contract holder has fewer now," he said.

why dont everyone stick back to the Forum, "MKH"

MKH Bhd : MKH could double in value
01/02/2014 | 09:11pm US/EasternRecommend: 0 MKH Bhd (formerly known as Metro Kajang Holdings) could see its value double this year.

Its share price surged yesterday, boosted by a report from Hwang DBS Research unit valuing the company at twice as much as its 2013 closing price of RM2.69.

MKH, a niche township developer in Kajang, has a 25-year unblemished profit track record.

Executive chairman Tan Sri Alex Chen Kooi Chiew drove the company into the plantation business in 2008, making East Kalimantan the home base for its plantation division.

The company has a 15,900ha oil palm estate in East Kalimantan and is looking to acquire an additional 20,000ha in the same area.

According to Hwang DBS, the plantation business helped increase core profit in 2013 by 96 per cent. Up to the nine months ended August 31 2013, MKH's net profit attributable to shareholders was up by 124.3 per cent year-on-year to RM47.1 million from RM21 million.

Hwang DBS values MKH at RM5.40 a share, noted even as this price, it remains the cheapest proxy to the plantation sector.

There is no doubt that MKH is a company in a hurry. It has diversified into plantation at a time when it sees many are getting much stable income from the sector. Although the oil palm project in Kalimantan is just 39,000 acres, it is a start which we are seeing another property company diversifying. As I read further, many analysis says that MKH will benefit from the current MRT project as the rail runs through Kajang where the company has the bulk of its developmental land - no doubt about it.

A simple calculation , assuming it achieves net profit of RM1 million per acre from its developmental land, it would have achieved future profits of RM600 million alone from those projects in Kajang. Then there are the plantation and other projects elsewhere.

MKH’s housing projects are located in Kajang mainly offering affordable units priced below RM600k/unit. This should place MKH in a good position as we believe developers with significant exposure in affordable housing should fare better under the current economic scenario.

KUALA LUMPUR, Jan 9 (Bernama) -- The Sungai Buloh-Kajang Mass Rapid Transit (MRT) line project is on track for completion, with 33 per cent overall and 50 per cent underground works completed.

Mass Rapid Transit Corporation Sdn Bhd's Acting Chief Executive Officer, Haris Fadzilah Hasan said with the work flowing accordingly, phase one between Sungai Buloh-Kajang will become operational by Dec 31, 2016, and by July 31, 2017, the rest of the Klang Valley MRT line would be completed.

"These are important milestones for us, going into the year. With the progress that we are making, we hope to complete all the tunnelling activity by the middle of next year," he told a media conference here Thursday.

Today, the MRT project crossed another major milestone with the breakthrough achieved by the world's first variable density tunnel boring machine, used for the Sungai Buloh-Kajang line.





-- BERNAMA

SINGAPORE – 29 November 2013 – Mainboard-listed GSH Corporation Limited (“GSH” or
the “Group”) today announced that its wholly-owned subsidiary, City View Ventures Sdn. Bhd.
has signed a Sales & Purchase Agreement with Tropicana Kia Peng Sdn Bhd to acquire a prime
land parcel for a purchase consideration of RM132.4 - million.
The leasehold land parcel of 5,800 sq metres, - which GSH plans to develop into a residential
and commercial development, is located on Jalan Kia Peng in the prime section of Kuala
Lumpur’s city centre, popularly known as the Golden Triangle. It is set amidst an exclusive
residential enclave area, and is approximately 800 metres from the city’s iconic Petronas Twin
Towers and Suria KLCC. The site is also a stone’s throw from the uber-chic shopping belt of
Bukit Bintang and the business center of Kuala Lumpur..
This Acquisition comes hot on the heels of the unanimous approval by GSH shareholders in an
extraordinary general meeting held on 9 October 2013 to extend its diversification into property
development and related businesses to ASEAN countries.
Mr Sam Goi, Non-Executive Chairman said: “We are thankful to our shareholders for entrusting
us to develop the Group’s property development business, and are pleased to announce this
acquisition so soon after the EGM. We assure all of our shareholders that we are working very
hard to expand into Mainland China, Malaysia and the ASEAN region.”
Said Mr Gilbert Ee, GSH’s Chief Executive Officer: “We like Malaysia, particularly Kuala
Lumpur, for its strong domestic demand and robust economic fundamentals, that drive
population migration into urban areas, and which continue to fuel growth in the mid-tier to
luxury segment of the residential market. Kuala Lumpur is also perceived as a steady, safe
property market, and coupled with the excellent location of our site, we are optimistic that our
plans for a premium residential development here will be attractive to discerning local and
overseas buyers.”
The purchase consideration was arrived at a willing-buyer, willing-seller basis, and funding will
be from internal resources and borrowings. A deposit of 10% of the purchase price has been
paid by City View Ventures Sdn. Bhd. to the vendor. The balance shall be paid upon completion
of the Acquisition, to take place within three (3) months from the date the Agreement becomes
unconditional.
The Proposed Acquisition is subject to the fulfillment of conditions precedent, such as the
approval of the relevant state authority for the transfer of the Property by the Vendor to City
View Ventures Sdn.Bhd.

GSH buys majority stake in Sutera Harbour
Publish date: Thu, 2 Jan 16:32

Back
--------------------------------------------------------------------------------

KOTA KINABALU, Sabah: Sutera Harbour Resort has announced a
joint venture partnership with GSH Corporation Ltd, a company listed on the Main Board of the Singapore Exchange.

Under the partnership, GSH will acquire a 77.5 per cent stake in Sutera Harbour Group Sdn Bhd, which will own Sutera Harbour Resort after the restructuring.

In addition, GSH, through two of its wholly-owned subsidiaries, Ocean View Ventures Pte Ltd and Ocean View Point Pte Ltd, have entered into agreements to acquire stakes in two separate land parcels, measuring 4.89 hectares (ha) and 5.29ha respectively within the 155.14ha Sutera Harbour property for future luxury condominium development.

GSH is a growing property development company in China and Malaysia led by its executive chairman, Sam Goi, who is also the executive chairman of Tee Yih Jia Group, a global food and beverage group, and Yangzhou Junhe Real Estate Group, a property development company in China.

Goi is also the vice chairman of three other main board-listed companies in Singapore.

GSH chief executive officer Gilbert Ee said Kota Kinabalu is a rising property hotspot in Malaysia and the company sees robust potential for prime real estate in the city, fuelled by strong tourism growth from Northeast Asian countries such as Korea, Japan, Hong Kong and China.

He said visitors from these countries are growing exponentially and today account for more than half of total international arrivals to Sabah.

"Apart from tourism, Sabah has experienced strong gross domestic product growth in 2012, thanks to its key sectors of agriculture and oil and gas.

"With such strong fundamentals, we see great potential in Kota Kinabalu's luxury hospitality sector as well as premier resort homes," he said in a statement issued by Sutera Harbour here today.

Sutera Harbour Resort is located within 10 minutes from the city and yet provides a quiet, exclusive and secure ocean-front property with spectacular scenery.

Sutera Harbour Resort Group president Datuk Edward Ong Han Nam, who is the founder and developer of Sutera Harbour Resort, was excited with the joint venture with GSH, as it would propel the resort to the next level of tourism development in the state.-- Bernama

Share analysis

Based on the weekly chart above, Censof has been traded in sideways pattern since 2011. However, the good news on the acquisition of TEB and GST implementation lead Censof to a strong rally in October and November 2013. Heavy volume on the upside movement and diminish during pullback indicate that the uptrend is solid. The most recent pullback nicely stop at 38.2% of Fibonacci retracement level or Rm 0.55. Support level at Rm 0.55 believe to be strong as it been tested more than 3 times. Failure to stay above Rm 0.55 will lead to further downtrend. I believe 2014-2015 will be a good year for CENSOF due to commencement of GST by government.

Trading strategy

Buy on weakness is advisable to investor. New position can be initiate with the confirmation of bullish candle such as Harami, Engulfing or Hammer. Put a stop loss at Rm 0.545. For day trader, purchase can be made upon breakout at Rm 0.65 level. Use volume and other indicator as confirmation before entry. Stop loss will be at Rm 0.645.

Price projection

Short term -Resistance level Rm 0.65 (Previous high)

-Support level Rm 0.55 (Significant support, resistance turn support)

Medium term -Resistance level Rm 0.77 (Highest peak)

-Support level Rm 0.50 (psychological support level

Published: Friday November 29, 2013 MYT 11:34:00 AM
Updated: Friday November 29, 2013 MYT 11:36:23 AM

Censof targets 20% contribution from overseas by end-2014
by leong hung yee

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KUALA LUMPUR: Censof Holdings Bhd, which came under the spotlight after it bought a 45.03% stake in Time Engineering Bhd for RM69.8mil, says it is targeting contribution from overseas by end-2014.

It said on Friday it was targeting a 20% contribution from the overseas operations.

Censof also said it was not looking to acquire any other assets at the moment.

To recap, Censof bought the Time Engineering stake for 20 sen per share in September following the divestment by Khazanah Nasional Bhd of its entire stake in Time Engineering.

However, Time Engineering shareholders later were advised not to accept the general offer by Censof.

Independent adviser Public Invesment Bank Bhd, in its circular, deemed the offer of 20 sen per share as not fair and not reasonable based on a few methods of valuation.

Comments The lacklustre response from the minority shareholders seems to echo our view that the unattractive offer price is very much likely a technical GO.

In line with CENSOF’s intention to maintain the listing status of TEB, the low acceptance level suggests a high chance of TEB retaining its listing status post offer.

We have earlier highlighted (at 13-Sep-13) that our CENSOF’s target price will be upgraded to RM0.88 based on unchanged FY14 PER of 15.5x over a higher net profit forecast of RM22.2m (from the current estimate of RM15.4m that based on the existing activities), should the proposed TEB’s acquisition to be concluded by end-CY13.

To recap, we believe that the proposed acquisitions will not only allow the group to expand its business but also provide leverage on TEB’s resources and infrastructure to create synergistic benefits, and thus, raising both Censof Group and TEB Group to the next level.

Second MYEG.....

AFTER the government proposed the Goods and Services Tax (GST) in Budget 2014, counters considered the biggest beneficiaries of the implementation of the tax, such as MyEg Services Bhd, GHL Systems Bhd and Censof Bhd, started to rise.

However, analysts say the nascent payment system sector is not limited to these stocks. In fact, companies like Cuscapi Bhd, Managepay Systems Bhd, Microlink Solutions Bhd, Datasonic Group Bhd, Rexit Bhd, N2N Connect Bhd, CBSA Bhd, Rexit Bhd and Excel Force MSC Bhd, which derive a substantial portion of their earnings from facilitating electronic payments, could be beneficiaries of the implementation of GST.

“We believe this growth has not been fully reflected in forecasts or valuations of selected stocks. Looking forward, as the growth cycle accelerates, M&A are likely to drive sentiment and price as domestic players search for increased economies of scale and international firms with low borrowing costs bid to enjoy emerging market growth,” says a report on the payment system sector by Hong Leong Investment Bank (HLIB).

Market observers note that the implementation of GST will require a massive reworking of the backend of the payment system, both at the business and government levels.

Moreover, according to EY’s Indirect Tax 2013 report, electronic data allows tax administrators to use IT-based audit tools that can help combat fraud and tax evasion more effectively.

The report says 57% of GST around the world has mandatory electronic filing and a total of 92% is either mandatory or optional electronic filing as governments discover that it is far more efficient to administer GST with electronic data transmission and filing.

Censof, which is a key player in the business-to-government segment, could secure future contracts from the government as it had previously secured an OBB job from the MoF earlier this year for RM25.47 million.

“As the government is targeting to expand the OBB system to another two ministries, we are positive about Censof based on its previous track record in securing government projects,” Kenanga Research says in a report.

Meanwhile, Censof’s GST-ready accounting software and training services could be used by more than 80 different government agencies in the country, giving the company new income streams.

“Based on our understanding, the GST software upgrade service is charged an average of RM200,000 to RM2 million and this largely depends on the client’s size, system and level of integration,” Kenanga Research adds.

Furthermore, Censof’s recent acquisition of a 45% stake in Time Engineering Bhd will result in it controlling Dagang Net Technologies Sdn Bhd, which facilitates the import and export of goods and related payments in Malaysia, according to HLIB.

KUALA LUMPUR: The shares in Censof Holdings Bhd, MyEG Services Bhd and GHL Systems Bhd — three counters considered the biggest beneficiaries of the goods and services tax (GST) when implemented in 2015 — have risen since the announcement last Friday.

Censof jumped 5.22% to close at 60.5 sen yesterday with 39.4 million shares changing hands. MyEG recorded a new all-time high of RM2.56 yesterday, surging 7.11% from Monday’s close of RM2.39.

Kenanga Research analyst Chan Ken Yew said in a recent report that Censof, one of the major accounting solutions providers for government agencies, is seen as a clear-cut winner. He anticipates Censof to see more contract flows with the implementation of the GST.

“Besides, it may also benefit from the government’s intention to promote outcome-based budgeting (OBB) in the Ministry of International Trade and Industry and Health Ministry.”

Chan said Censof is handling a similar project for the Ministry of Finance worth RM25.47 million, its second biggest contract after the Social Security Organisation (Socso).

JF Apex Research noted that the implementation of the GST would be a major catalyst for e-services or IT solution providers, which could benefit front runners such as MyEG and Censof, undertaking back-end systems work and training for government departments.

This week buyers likely to push up to RM0.72

E FOR EVERYTHING
Accounting for GST is especially tricky in a cash economy. Businesses might understate sales to lower the tax bill. But for cash-only companies, making the switch will be costly.
"Big boys can afford it, but what about eateries, sundry shops? Do you expect them to pay for such machine and issue receipts (on GST)?" asked John Yong, a business consultant based in Kuala Lumpur.
"If they don't buy and issue receipts, then the 6% GST is not going to be remitted to the government. Some industries are just not ready for GST," he added.
The finance ministry has recommended that only companies with annual sales above RM500,000 be subjected to GST, according to local media. That means 78% of total businesses – or 433,558 small and medium enterprises – would be exempted.
E-payment companies such as GHL and Censof currently get a fraction of the 50 sen per electronic transaction fee. The central bank expects the number of e-transactions to surge 10-fold to 12 billion by 2020. That would work out to about RM6bil a year in fees.
The e-payment industry is consolidating just as business appears to be picking up.
GHL, which counts banks and small businesses as clients, announced earlier this month it is taking over Australian listed peer e-pay Asia Ltd. Censof bought a controlling stake in rival Time Engineering Bhd last month.
The next step for Malaysia is getting companies to file their taxes electronically. Yeo Eng Ping, who leads the Malaysia tax practice at accounting firm Ernst & Young, said the government was considering an e-filing system that would be compulsory for exporters and for businesses with annual turnover exceeding RM5mil.
"E-filing allows for a much more efficient process of reporting, recording and ultimately collecting tax, not just indirect tax. This is especially so when teamed with e-payment," Yeo said – Reuters

KUALA LUMPUR: Malaysia's new consumption tax is a boon to IT companies that stand to win infrastructure contracts and fees – provided they can convince people to switch to electronic payments in a country where 91% of transactions are in cash.
The 6% goods and services tax (GST) that Prime Minister Najib Razak announced in his annual budget speech on Friday is aimed at narrowing a budget gap that is expected to hit 4% of gross domestic product this year.
Cash payments are harder for tax collectors to track, so the Government is encouraging e-payments as a way to reduce costs and improve efficiency.
For companies such as Censof Holdings Bhd and GHL Systems Bhd that specialise in creating electronic payment and software systems, the initial benefit will likely come well before the tax is implemented in April 2015.
These companies, along with privately held Brilliance Information Sdn Bhd and Revenue Harvest Sdn Bhd, are seen as front-runners for government contracts to build the necessary infrastructure because Malaysia has a procurement policy that favours local companies.
The government has not disclosed how much it will spend, but a similar project in Australia in 2000 cost A$4.5bil (US$4.31bil).
That potential has caught investors' attention. Censof's shares are up 64% year-to-date while GHL's have jumped more than 160%, both handily outstripping the broader market's 7.7% gain.
"To impose GST, you need to capture sales accurately and it needs to be done electronically. You need payment infrastructure in place," said Raj Lorenz, group CEO at GHL, Malaysia's largest e-payment firm by market share.
"The business is very bright but there are a lot of people using cash, so they (the government) have to make them all use e-payments. In the end, the only guys who can get away with it are those in the night markets," he said in an interview with Reuters.
Ameer Shaik Mydin, executive director with Censof, concurs, adding that all of his company's systems are GST-ready and waiting to be implemented on clients' sites.
"We've done it in Singapore and Australia," he told Reuters in an interview on Monday, referring to clients overseas. "It definitely has to be electronic. If not, I have to say it'll not work."
Malaysia's central bank has offered incentives to encourage electronic payments, which it thinks can generate annual economic savings equivalent to 1% of GDP. In May, it reduced the cost of inter-bank fees on e-payments to about US 3 cents from 63 cents, and increased cheque processing charges. It wants cash transactions to make up 63% of the total by 2020, down from 91% now

COMING>>>>>

4456 TIME TIME ENGINEERING BHD
Changes in Sub. S-hldr's Int. (29B)

Particulars of Shareholder 36

Name : Censof Holdings Berhad
NRIC/Passport No./Company No. : 828269 A
Nationality/Country of Incorporation : Malaysia

Address:
A-8, Block A, Level 8,
Sunway PJ 51A, Jalan SS9A/19,
Seri Setia, 47300 Petaling Jaya,
Selangor Darul Ehsan.

Descriptions (Class and Nominal Value):
Ordinary shares of RM0.20 each


Name and Address of Registered Holder:
You are advised to read the full contents of the announcement or attachment at
http://www.bursamalaysia.com.



Circumstances by reason of which change has occurred:
Acquisition of 178,956,773 TEB Shares pursuant to the 1st tranche of
acquisition of TEB Shares under the Share Sale and Purchase Agreement entered into between Censof and Khazanah on 12 September 2013 ("SSA").
Deemed interest in the remaining 170,155,958 TEB Shares to be acquired in the 2nd tranche of the SSA.

TEB contracts from Custom will annouce soon. Censof will benefit hundred million of contracts through TEB.

TEB contracts from Custom will annouce soon. Censof will benefit hundred million of contracts through TEB.

HT current utilisation rate is just 50-60%, any improvement in its operations will directly boost earnings.

Eastern Steel SB is a long-term investment, while its Bukit Besi iron ore mine remains a bonus.

We upgrade HTVB to BUY, with a MYR0.97 FV (Source: RHB)

just buy. Volume will come soon.

The sudden surge of TIME share price and volume, indicating uCustoms system approved?