@hopetobecorrect

btw that should answer a few of ur questions.

Their poor Q1 2018 performance is mainly due to IFRS 9 and also forex losses (cuz RM strengthened against most of its functional currencies by average 4%).

Their EPS has been rising slowly, the erratic earnings if u look closer is due to the change of FYE in 2015 and adoption of IFRS 9 (which requires changes in FV of quoted shares to be presented in the income statement)

RVI123 @limyinchu, your target price at RM1.50 seems too high to achieve.

TA is in a stable industry with consistent growth in revenue and profits, RM2.20 is achievable, that's basically it's book value

at that time, the market cap was RM1b, literally u can buyout the whole TA by taking a RM1b loan, and repay that loan with the RM1b cash inside TA. To fill the RM1b difference after taking out the cash in the balance sheet, I've estimated that the properties held are at least RM1b over their book value (i expect more as i didn't know all properties they own to make a better estimation). Do not forget bout the value of 60% TAGB shares held.

So yeah.... my tp is RM1.50

i regret not being able to buy at .58 even as my CDS a/c is not ready yet

TA Capital is well protected, top 5 outstanding loans at RM85m, but total value of securities at RM181m, TA must be wishing them to default lol

@alvin loh
Rmb not to buy a counter solely for its dividend, if the share price drop, ur dividend may not be enuf to cover.

@takeprofits
Since we cannot buta buta follow ppl right, I would like to hear ur thoughts on TA b4 u ask here

haha i sure wish it does, but i'm not sure how many ppl uses TA's broking services considering there are many other competitive choices (i personally uses Maybank), moreover, its revenue and operating profit only constitute 15% and 8% of the total, the resulting positive impact may not be that much.

However, its main biz (hotel) making up 60% and 38% of the same shows good growth, the only threat being the Trump brand which i foresee shall be easy to resolve if anything happens. Still, overall average revenue and profit growth is negligible.

All in all, undervalued assets will protect from downside with huge margin of safety, 6% dividend yield gives sth even if the share price doesn't move, better still, growth in profit. For me, the only way is up for this counter.

my 2 cents, TA is basically a dividend (>6%) and asset (undervalued) play, inconsistent growth in earnings which averages out to be negligible, though margin is good. I bought at RM0.63, TP >RM1.50

hi all, i've been studying TA for about 2 weeks now.. but still hesitate to buy in.

Can anyone explain why is the NAPS on i3 and the NTA/share reported in annual reports cannot be tallied? I've tried add in the intangible assets too but still cannot tally

How i3 and TA's auditor calculate the NAPS?

@Biker2b

1. Agree
2. The division's revenue has been dropping since 2014, -2% on average
3. Sry i've not purchased any bets before, does the customers need to pay GST for betting? If yes, BJTOTO will be able to claim back GST on most of its expenses and i believe the impact will be immaterial

1. Agree, but i expect DY to drop over the next 5 yrs to 3%, assuming current rate of decrease in profits, even lower than the FD rate by then as BNM raises OPR rate. Buying a good company at a fair price is better than buying a fair company at a good price.

2. I would put my money in if i can get more details in to it.
(a) Where can i read more on the restructuring plan?
(b) Assuming the gaming act is amended to allow online betting, i doubt the impact will be big and can be seen immediately. @throx commented Damacai has dmcGO, but the impact is questionable, also the app is not directly downloadable from the playstore, only as .apk (mayb to circumvent rules?), on apple app store theres' only 24 mixed reviews.
(c) What do you mean by monetization of non-core assets? Where can i read more on this?

@billionaire88 HR Owen actually recorded +20% in revenue and +78% PBT in GBP terms, i believe that's actual improvement rather than due to weakness in RM. If u see, GBP/MYR actually strengthens 1st half of the year then drops back down 2nd half of the year, i guess the forex factor is very much netted off here.

But still, HR Owen's contribution to the group's profit in RM terms is less than 5%, still a long way to turn around BJTOTO for me.

sry my mistake, revenue of the group rose, but Toto division down slightly, but still my main concern is on cost cutting efforts

@sheldon whether Muslims allowed to buy or not is not my main concern since the revenue has been rising every year, however, i'm more concern on the management's action on cutting costs.

Also, even if the gov allowed online betting, i'm not sure if the buyers know how to do it since most are elderly people and pensioners. If the buyers couldn't do it, it wouldn't help Toto.

Otherwise, they can strike deals with 7-11, 99speedmart etc. to station their vending machines in their stores like some countries do, maintaining a machine is much cheaper than owning a store. But again, how many buyers can adapt is to be tested.

Does anyone has news on their future plans?

All the divisions has been doing badly.

Biggest revenue and profit contributor, Toto division, losing slowly to illegal operator but suffer big from rising cost (evident from -1.7% revenue but -19.9% PBT while prize payout +2.3% so definitely not due to the luck factor here), and i dun see any actions they can take to cut costs significantly, except by cutting rental and wages by closing down stores, but that would mean it needs to gain approval to implement online platform, which i think is near impossible as then the gov would have no control over the muslims from gambling. Any info on their cost cutting efforts is much appreciated.

The 2nd biggest profit contributor, the PGMC division just lost its exclusive right to supply to PCSO, only time will tell how it affects it's profit.

The 2nd biggest revenue contributor, HR Owen, performed outstandingly, earnings shot up 77.8%, but its contribution to the group's profit is only a mere 3.91%, further it faces risks from slowing new car registration in UK, Brexit and weakening GBP.

All in all, my analysis above is only 2017 vs 2016. Assuming every year PBT -15%, a 80% dividend payout ratio and cost of investment of RM2.20 at current price, the DY is 5.74% to 4.15% in the next 3 years, still favourable than FD, my only concern is loss from continuous fall in share price as there seems no solutions to the problems faced by each divisions.

Any comment is much appreciated.

@apprentice but i still feel C38 is expensive with premium at 7.36%

@GreatWarrants may i know how u found out CIMB is doing all the selling?

@Save why not wait until election is over? If BN wins (which they usually do), will mother rises?

@apprentice i thought the 13sen reduction has already happened has it? When the dividend is announced on 28 Feb, C34 already dropped 10sen.

Btw how to view the buy and sell queue? From the trading platform? Mind to share what software u using? I haven gt a CDS a/c that's why...

Xdate price adjustment is on the mother? So u mean on Xdate, mother will down 32sen but back up 10sen and stabilises?

thx skl, sry i missed out the dividend, just started learning cw here haha..

Mother currently at 10.50, if premium 0.5%, c34 worth (1.005 x 10.50 - 9.25 - 0.32) / 2.5 = RM0.393
So better to buy again at RM0.40?

Hi all, it's been pretty quiet here today, is C34 still worthy to buy at .44? Even at .44, mother at 10.5, C34 is still trading at discount of around 1%

Is all cw trading at discount a no brainer to buy?