KUALA LUMPUR (Nov 8): MSCI has dropped Boustead Plantations Bhd, Eastern & Oriental Bhd, Hong Leong Industries Bhd and UOA Development Bhd from the MSCI Malaysia Index, following its November 2019 Semi-Annual Index Review.

Meanwhile, Alliance Bank Malaysia Bhd, Ekovest Bhd, Frontken Corp Bhd, Leong Hup International Bhd, MMC Corp Bhd, Pentamaster Corp Bhd, Sime Darby Property Bhd, S P Setia Bhd and Syarikat Takaful Malaysia Keluarga Bhd were added to the index.

https://www.theedgemarkets.com/article/msci-drops-four-constituents-and-adds-nine-malaysia-index

sold back YTLP at 69sen

sold back uzma at 1.05

sold back jaks at 1.14

bought SP setia at 1.35

If wish to know the detail on tax rate derive from Vietnam, Pohhuat is good example for reference.

Revenue Profit before Tax Taxation
Malaysia 77.426m 8.43m 1.69m
Vietnam 87.419m 5.94m 0.89m

Remark: Malaysia tax rate 20%; Vietnam tax rate 15%. The tax was lower in Malaysia statutory rate 24% and Vietnam statutory rate 20% due to export incentive granted by both Malaysia and Vietnam. Both country already have double Taxation Avoidance Agreement, therefore, profit only tax on respective country.

As part of effort to encourage development IPP and foreign investment, Vietnam government have granted incentive to Jaks to enjoy first 4 year tax free. Thus, once power plant start commercial operation early next year, all profit derive from power will be tax at 0% rate, so that, the profit before tax = profit after tax.

bought back Uzma at 98.5sen

Swap capital to add more I-berhad at 23.5sen

Thanks DK66 for prompt update on Mong Duong 2 result. It reassure Jaks bright prospect on Power plant profit

sold back PR at 3sen for 100% gain

DK66

Malaysia and Vietnam are under the Double Taxation Avoidance Agreement (DTA)

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=4&bt_unit=1&bt_sequ=1&bt_lgv=2

bought back jaks at 1.08

bought also I-berhad PR at 1.5sen

bought YTLP at 67.5sen

I berhad assets allocation

Property development land at cost: RM 978.7m (liability 680.7m)
Property investment : RM 418.8m ((liability 5.9m)
Leisure : RM 132.8m (liberality 1.2m)

It is very clear that majority liability bear by I berhad now mostly is due to land carry at cost and development cost now.

The Central i-city and other investment properties are mostly build my I-berhad through internal cash, worth 418.8m with very limited borrowing of only 5.9m.

Another asset carry in I-berhad is in leisure segment (water theme park, snow house) at 132.8m and negligible borrowing of only 1.2m

I berhad and WCE berhad both share similarity due to fund raising via preference share. Both share under serious downward when its PR was listed.

WCE went down as low as 29.5sen and recover back now at 38.5sen. I-berhad today went down to as low as 21sen, once PR overhang resolve, I-berhad will likely recover back too.

At first glance, the profit derive from mall about RM 10.6m seem too low in view of I-berhad have invested RM 340m (40% stake of RM 850m mall), the return of assets for i-berhad only 3.1%.

But, as the mall just newly open for operation, the rental rate still have large room to increase rental rate in future.

Remark: comparison with Midvalley, the rental is as high as RM 12-13 psqft, or Pavilion mall rate RM 16-17 psft, double and triple rate higher if compared to Central-icity.)

Central i-city now have occupancy 90% occupancy rate. The rental rate is between RM 6-RM 7 psf with some tenants rental are tied to their store performance via gross turnover rental. Based on net lettable area 940,000 sqft

Lets calculate the profit

940,000 sqft x RM 6.5 psf x 90% occupancy rate x 12 month = RM 65.9m

Assume mall profit margin 40%, RM 65.9m x 0.4 = RM 26.4m

I-berhad 40% stake, RM 26.4m x 0.4 = RM 10.6m, translate into ADDITIONAL EPS 1 sen/share

I-berhad market capital now only RM 233m. But, I-berhad have completed Central-icity mall at cost RM 850m, in which Iberhad have 40% stake or RM 340m, retain as investment. Just alone mall itself already far above i-berhad entire market share value

sold back uzma at 97.5-98sen

I berhad and WCE berhad both share similarity due to fund raising via preference share. Both share under serious downward when its PR was listed. WCE went down as low as 29.5sen and recover back now at 36sen. I-berhad today went down to as low as 21sen, once PR overhang resolve, I-berhad will likely recover back too.

The upcoming Q3 result will record maiden profit contribution from Central 1-city shopping mall, build at cost RM 850m, i bhd have 40% stake.

https://www.nst.com.my/news/nation/2019/06/496562/central-i-city-shopping-centre-opens-shah-alam

add more at 21.5sen

bought ibhd at 22sen

bought back uzma at 93.5sen

sold at 99-1.00, cut loss

After RTS announcement, next will be Bandar Malaysia and HSR

sold back malton at 50sen

sold back gbg at 1.32

sold back gbg-wb at 38sen

sold back homeritz at 68sen

Use all balance capital, fully in uzma at 1.04

bought back all Uzma at 1.05

balance order at 1.14, all matched

Still have last portion at 1.14 awaiting sold off all

sold back again at 1.13

bought back all at 1.10

sold back awc at 64.5sen

sold back myeg at 1.12

There is nothing change in MyEG fundamentally. The only trigger selling pressure is technical chart pattern which is classic double top formation resulted trend reversal to bearish now. As these formation have nearly completed now, the share price will likely rebound tomorrow and then stabilize in narrow range later.

The catalyst to reverse the trend back to bullish is upcoming Q4 result. MyEG should deliver consistent profit with likely earning surprise growth if MyEG opt to write back earlier impairment on Malaysia GST tax monitoring system and device due to successful redeployment f these system and device to Indonesia market now.

Myeg have developed, PayMe, a blockchain-based payroll management software. PayMe offers a cost effective alternative for companies that employ a sizeable workforce with dynamic remuneration packages, which include recording and managing worker overtime accurately and efficiently.

Blockchain architecture is ideally suited to resolve the prevailing inefficiencies in payroll management in view of the immutability of the technology, where data cannot be unilaterally altered once recorded.
Furthermore, the distributed nature of blockchain means stakeholders would have full access to the data, ensuring transparency and minimising the possibility of potential disputes

Leveraging the benefits of blockchain architecture is one of MyEG's core focus presently. MyEG is well positioned to deploy industry-wide blockchain solutions that maximise the potential of the distributed ledge

The pilot trial on PayMe have received positive feedback. MyEG is now expect to commecial launch PayMe soon.

Declared 1.5sen dividend

bought back all Homeritz at 66.5sen again

sold back all Homeritz at 70sen

The investable Net cash company MUST have possess condition precedent such as consistent deliver POSITIVE EPS from CORE business, valuation PE <10x and consistent dividend payout to shareholder.

Dutaland, despite is net cash position due to disposal its palm oil, but it only promse to give 5 sen for 2 year to shareholder as special dividend. Dutaland have loss of core business, it need to conserve cash to buy NEW CORE business before can generate consistent profit

Homeritz is net cash company, consistent dividend payout will cushion share price from further downside risk.

US is new market for Homeritz. Although already recently secure 8 new customer from US, the order need TIME to fulfill and deliver to US customer before PROFIT can record in. Expect US order profit should be able to record in next Q result.

Malton divest Pavilion already greatly alleviate financial burden to build up the mall at cost which only able to commecial operate in 2021. The divestment mall also monetize the mall prematurely as the mall already in progress up to 42% now.

All balance capital fully in Myeg at 1.09

bought back homeritz at 68sen

sold back at 69-70sen