As #csan said, The potential for the Sungei Wang en-bloc is huge, CLMT currently owned more than 60% of the property, Sungei Wang stand a very good chance to capitalized on this if the new rules lower the cap from 100%

In Singapore, the en-bloc needs more than 90% agreement for building less than 10 years, and 80% for building more than 10 years.

Many many years back, Singapore is also having the similar strict rules like Malaysia for the en-bloc, in order to move forward and to STOP small number of greedy owners, subsequently the percentage required were lower few times.

do not understand why drop so much ... maybe PNB is selling huge amount to pick up the right, the company management is making the wise and responsible decision to issue new RCPS to lower the interest cost, very logical move, looking to buy more if price drop further

more challenging ahead … minimum wage implementation, too much capacity, more competition and continuously lower and lower ASP, profit getting lower and lower per Q.

Having the restructuring arrangement does not mean the Big good news, one of the potential outcome (mostly likely) is the injection of fund from the shareholders in order to get the reciprocal support from banks and creditors, be very careful if you are not yet the investors, you have many options in the Bursa than to bet on SD

Yes, fully agree with you, in fact both Sunway-PA and the Sunway-WB is very interesting to invest, especially the WB, any upside of Sunway ( very likely) will translate to multiple gain for WB.

re-structuring always not easy, prepare for the potential right issue if SD has the agreement bankers/creditors.

I am surprise YTLP make so much profit from the disposal, with the electricity price keep increasing and shortage, YTLP is in the very good position, example in Singapore, the contracted price from Genaco(YTLP) is up from 18sgd cents (one year ago) to 25sgd cents, and still many businesses are not able to have this rate as the energy company do not want to sell them in this price ...

Maybe after dust settled, SD is the good buy for long term, short term I see following problems :

1. High debt is fine for short term if the company has healthy cash flow, SD is getting very tight in this area

2. Debt to equity is about 1.5 times now, bond holder (about 1.5B RM) has the right to ask for the money if this ratio goes above 2, otherwise it is considered as default, so if any impairment comes after KPMG/EY, that will be very bad scenario for SD

3. The maturity of two USD bond (1.5B RM) is about 1 year from now, how do SD got the money to pay back ? any new investor will buy the new bond in this case ?, or SD need to substantially up the interest rate for the new bond ?

4. Any possibility SD to issue right share ?, this is very likely if they need money for the Bond repayment and yet do not have the option to issue new bond/bank loan

5. To sell some of their asset for the Bond payment ?


My view is regardless the conclusion from KPMG/EY, the damage is already there … short term is challenging for SD, lets see how SD manage this crisis

Actually for those has confident with SD, should just bet on SD senior unsecured bond, if thing goes well, Bond will rebound strongly like share, in the unlikely case SD goes bankrupt, Bond has the much higher priority than the shareholders, Bond holder will get paid first before the shareholders.

If SD goes for right issue, bond holder will not be affected, and will just continue to collect the interest

Just my view ....

very tricky now, Serba has more than 1.5B rm bond to issue coming month, confident level is low and the rating already downgraded from B+ to B-,

Quick check from bond market, the USD bond drop from par value of 100 USD to about 50 USD ....