Hi,

KEURO 80%
IQGROUP 20%

Thanks

jsflim, is cooking, cook for five years.

Ten Points you should buy KEURO

1. West Coast Highway, GDV 5b, revenue to be recognized during construction period in both KEURO and IJM book.

2. Highway development JV with IJM, expertise provided by Malaysia highway expert.

3. Government given fixed rate 4% financing for amount of 2.5b for highway development. The remaining 2.5b is funded by equity (right issue & warrant).

4. KEURO own 50 years of concession agreement after highway built. Recurring income in building. The agreement could be extend 10 more years if the stated IRR does not meet.

5. Bandar Rimbayu, a 1000 over acres township development JV with IJM is selling very good in first 3 phases. Even bumi lots have sold off. The township takes 10 to 15 years to develop. Current GDV stand at 400m which have been fully sold. Bandar Rimbayu strategic locating in SKVE, next to Kota Kemuning, future potential is good.

6. KEURO’s TALAM share have fully sold to Tan Ah Chye, KEURO no longer TALAM’s shareholder, thus the losses in reserves accumulated by holding TALAM will fully been revalue in coming quarters. Huge paper profit will be write back.

7. The shareholders of KEURO are pooled by solid long term investors.
• Strategic partner IJM holding 25.68% (as at 20/10/2014)
• Tan Sri Pang from Mamee Decker holding 9.3% (as at 20/10/2014)
• MWE holding Tan Sri Surin holding 24.99% (as at 03/09/2014)

The success story of MWE is the investment of MPHB, Surin Upatkoon use to be a value investors. Wira Pang know what is value, that is why he privatised Mammee Decker.

8. Thanks to new shareholder structure, the board of director are gathering by professional. Newly appointed CEO Datuk Neoh is the expert in building Malaysia highway like PLUS, NPE and more. He is trying to finish West Coast highway in 4.5 years.

9. During the day when KEURO was trading below 1.08 (right issue price), both major shareholder IJM and Wira Pang accumulated the shares aggressively. In October, Wira Pang had bought 986,400 of shares priced between 0.998 to 1.08. IJM bought 2,179,800 during October and September. The aggressively buying by the shareholders tells the market something good is cooking.

10. Unlike most of the share in town, share have fully valued or crazy overvalued in some counters, KEURO not reflect the truth value yet and the intrinsic value of the company is not know yet. You are enjoying early bird advantage once you read till here.

One year ago, the company have three projects on going, named 8trium, Foresta and Elements Ampang. 8trium already delivery and unbilled sales have fully utilized. And in the past on year, sales recognized from Foresta and Elements. The latest brilliant quarter result is due by the delivered of Elements Ampang (the final 10 to 15% of the 50% GDV).

Thus, with the delayed on launching Tuanku Jaafar in Seremban, the current performance may not sustained. Even the launching of Elements2 in next month may not get the sales to book in next quarter.

20sen eps or 52m net profit per quarter is doubt or unrealistic due to current project left only Foresta. Do not expect brilliant sales in coming quarters like one year ago and disappoint with the slow launching.

Even the sales might not sustained after this quarter, the potential of L&G is bigger than last year, with sitting of 443m and retained profit of 314m, the company can go big. The wild cad for the company in near term are potential MGO trigger by Mayland, or bonus issue in 1Q 2015 with the reserve in hand.

http://www.theedgemalaysia.com/business-news/298604-lag-plans-bonus-issue-to-reward-shareholders-.html

Ride the trend of OSV industry, more important ride the trend of SILK...

OSV Malaysia:

http://www.might.org.my/en/Event%20Documents/2%20-%20OSV%20Sector%20Malaysia%20-Capt.%20Tasripin.pdf


http://www.thestar.com.my/Business/Business-News/2014/03/08/Bigger-OSV-operators-spared-Analyts-say-they-are-likely-to-maintain-their-margins-with-charter-rates/

Industry at risk?

Saturday March 8, 2014

Analysts say there is no cause for panic, as most contracts of local listed companies are already locked down and most of their chartered vessels are not at risk.

“Over the near-term, the contracts of most OSV operators are not up for renewal. The bulk of these contracts are fairly new, having been awarded in the middle to the end of last year. These contracts also typically have a five-year lifespan,” says MIDF O&G analyst Aaron Tan.

Another analyst says as most of these contracts are awarded by reputable oil companies like Petronas, Shell and Petrofac, the risk of rates being readjusted downwards has been further minimised.

Tan adds that most of the OSV-listed companies, such as SapuraKencana Petroleum Bhd and Bumi Armada, own mid-to-high-end OSVs, which have less supply in the market. These players will be able to maintain their margins.

It is the players who own the lower-end vessels, such as smaller AHTS vessels and tug boats, which will see their future margins being affected.

“There are many such small vessels in the market. This is especially apparent for those tugboats which cost around US$15mil to US$20mil (RM48mil to RM64mil) to construct. However, for high-end vessels like Bumi Armada’s floating production, storage and offloading vessels which cost hundreds of millions of ringgit, there is no issue of oversupply,” explains Tan.

He adds that another example of an offshore vehicle which will continue to command high rates are the owners of pipe-lay and derrick lay barges – used to lay pipes which is also expensive to construct.

In Malaysia, there are three notable operators namely Global Offshore (Malaysia) Sdn Bhd, a subsidiary of Puncak Oil and Gas Sdn Bhd, Barakah Offshore Petroleum Bhd and SapuraKencana Petroleum.

Players with smaller OSV vessels are Alam Maritim Resources Bhd, Coastal Contracts Bhd and SILK Holdings Bhd.

AmResearch analyst Alex Goh also points out that the oversupply of vessels are in the 5,000 bhp segment and not the 10,000 bhp segment. Goh says that channel checks reveal that these rates are currently stabilising, while the listed players have not been aggressively buying AHTS vessels in the 5,000 bhp category.

“Even though new orders for the first quarter of 2014 are likely to temporarily slow down quarter-on-quarter due to the complexities and implementation timelines of field developments, fresh roll-outs of Malaysia’s multiple enhanced oil recovery projects will continue to underpin the overall upward momentum trend,” says Goh.

He is maintaining his “overweight” call on the sector, with “buy” calls for SapuraKencana Petroleum and Bumi Armada.

HwangDBS believes that Malaysia’s O&G sector is experiencing a sustainable growth phase, thanks to Petronas’ capital expenditure (capex) commitment. It notes that most local service providers are enjoying record-high order books.

“For instance, Petronas’ nine-month-to-2013 capex of RM38.4bil is on track to surpass its record-high capex of RM45.6bil in financial year 2012, underlining the robust O&G development in Malaysia.

This shows Petronas’ commitment to address Malaysia’s energy needs, with the lion’s share of the budget going to the upstream sector.

Source: The Star Online

Strategic move by management; focus on 80% revenue OSV business rather then 20% highway cash cow.

OSV oversupply rise concern, and that is the point we should look at ICON. But, if the OSV industry is oversupply, why will ICON go listing now (by spending 166.2 m for expansion on vessel)? And why SILK named as highway and core business in OSV?

PETRONAS CEO speak may be a political sound, it could be tender going in March this year.

The highway might not be sold in ideal price, but it giving opportunity for SILK to released its book. I view as strategic move from management. We will want to see how its go.

ICON have 32 vessels with average 5 years age, the largest OSV provider. SILK with 23 vessels, both have future growth prospect in South China Sea (the future oil coast).

Bear in mind 80% of SILK revenue from OSV business. Disposal of SILK highway giving the financial capability for SILK to expand in OSV services.

Silk in transformation, whoever looking this shares should focus on OSV, you may use ICON as SILK peer. Stay focus on the future business and monitor the transaction of highway between IJM.

The calculation was wrong in the sense of wrong assumption. Value A and B are using historical cost rather than market value. The market value will realize when the land is sold or being developed. Thus, Warren statement is absolutely right.

Agree with ipomember, "Present value of future operating cash flow" is the most rational value calculation. The calculation will dependent on the company business nature. In addition, there is nothing important than the future company prospect but most of the financial calculation are taking the past into consideration. To avoid this, future earning prospect to be include in P/E. P/E is simply good, but accounting bath could inflated or deflated company earnings, and sometime price will be far from the truth.

Financial reporting user are advice to be rational and capable to concern the company as a whole rather than using one or few indicator. When P/E stated undervalued, how about the debt structure? Future company earning driver? Are the operating managers holding company shares? Who are the top 30 shareholders and more.

Buying the shares like running the business, if you are the company owner, you would not using P/E ONLY.