honestly, who would think this counter will drop so much????? First, it was the QE - then, it is now the oil price....aduiiiiiiiiii

http://gob.irplc.com/medianews.htm?filepath=GOB/GOB-TheEdge-02092014.pdf

Based on this article, the land size at Batu Kawan is 365 acres. Mmm...just wondering, where is the balance of the land (120++ acres)?

@ PikaChan, please share with me the proper method of valuation for property developers. I read through your posting - and this appears to be RNAV method. Where to read up on RNAV method?

actually, the story of Tambun Indah is more perilous compared to GOB. When Tambun started off with their Pearl City land, the land was not 100% theirs - if not mistaken, it was held together with a few other developers. At that point in time, the starting price per house is about RM220K to RM270K and the Pearl City land is not even considered as part of Batu Kawan (unlike GOB whereby their land is in the middle of Batu Kawan, 10 minutes from the exit of Penang Second link). At least with GOB, the land is 100% theirs albeit - it is a leasehold land. At least with GOB , the minimum starting price is at RM450K per house.

If we look at the business and the financial statements - there is a story to tell.

Please correct me if my story is wrong.

The main reason GOB cannot afford to pay a dividend is because RM50.0M is utilised to purchase PNT (a trading company) and they need to fund Da'Mein development project. Hence, this resulted in drawing down bank loans and the financing cash flows increased whilst operating cash flows decreased.

PNT and the F&B business has already contributed $20.0M in terms of segment revenue per the latest Quarterly results.

Concerning the company's leverage position, the story will turn out to be very different post rights issue + the proceeds from disposal of land from Seri Kembangan. I think the reason why they need the money is because they need to finance Da'mein and prepare the working capital for Batu Kawan.

Da'Mein is already a done deal. The residential/ SOHO component is 95% sold (per the prospectus) leaving behind the retail mall. Moving forward, we expect Da'Mein to contribute positively to the quarterly net profits. Please read on Icon8888's article about Da'Mein. He based the profits generated from Da'mein at post rights issue. If the retail mall is kept within the GOB's balance sheet, then we expect to have recurring rental income.

Next, GOB will focus on Batu Kawan and JV with Lembaga Getah. The Batu Kawan land is purchased at very low price and a lowest selling price for a double storey terrace is RM450K. Even if they sell every single houses at Batu Kawan at RM450K, they still stand to make money. How much? i need to work it out.

That is the beauty of property developers with large tracts of land at low prices. The GP margin will be huge.

I am more concerned in where is the 130 acres of BK land? I thought the press state they have 350 acres but the prospectus state they have 220 acres.

@ JN88, how about SymLife's land in Selangor? All very good?

mmm...about the land in Kedah - based on the chairman's statement from the annual report 2014 - they are looking to monetize the land ASAP. Also, i think one of their projects involved the land in Kedah - do not know the name.

@ JN88 - why do you say SymLife's landbank is not so good? Care to share?

Hi Yistock, care to share - what is the meaning of ROE?

maybe the answer can be found here:

I think this has got to do with the annual report 2014.

Capital Commitments - approved but not contracted for:
Under the Supplemental Agreement entered into between Batu Kawan Development Sdn. Bhd. (“BKDSB”) and Penang Development Corporation (“PDC”) on 31 March 2011, BKDSB is entitled to execute the sale and purchase of Parcel 3A and Parcel 3B of land owned by PDC on or before 30 September 2013 or within 24 months from the date of vacant possession of Parcel 2B is ready to be delivered by PDC to BKDSB, whichever is the later, subject to the condition that the sale and purchase of Parcel 3A and 3B can only be effected upon Penaga Pesona Sdn. Bhd.’s completion of the low cost and low-medium cost housings in Parcel 1 and Parcel 2A. The Board of Directors of the Company has approved the proposed capital expenditure in respect of acquisition of the said parcel of land at a cost of RM19.3 million.

Hi all sifus, anyone notice para 7.3 in the prospectus - mentioning GOB has approximately 229 acres of land at Batu Kawan? mmm...the figures being reported in the press is 350 acres. Where is the remaining 120 acres?

@ GOldenShares, if not mistaken, if there is a huge deviation between the 4 quarterly results and the audited accounts, the company is required to explain to bursa for the deviation.

previously, i am quite skeptical about the management - spending RM50.0M to acquire PNT (a trading company) and then resort to rights issue and worst still, selling a piece of their prized land at Seri Kembangan to fund for this acquisition and their working capital requirement.

But then, the previous quarterly results changed my mind. Their revenue by segments show about RM20.0M of sales come from trading and this figure is expected to balloon given that management is committed to diversify their income. I believe the sales mix will be 30% trading and 70% property.

fully concur with you Tornado... :-) When do you think market will recover?

Hi all sifus,
Just wanna ask - why the closing price yesterday was at RM0.94. Then, this morning, it spiked up to RM1.04 but the volume is not much. I mean any "reasonable" buyers will want to reduce their cost and enter between RM0.94 and maybe add a few cents. Why wanna pay so much at RM1.04??? What is the logic?

@ Azlan88, generous enough to share what is your average cost for SymLife?

wow...this Petronas is really powerful. The Star Business ran an article stating Petronas will cut Capex and the whole market drop like crazy.

wow...this Petronas is really powerful. The Star Business ran an article stating Petronas will cut Capex and the whole market drop like crazy.

die...sell off everything

the market is like shit...sell off everything....

@ azlan88, thanks for sharing. Quite impressed by your grasp of details. By the way, how much is the cost of hiring Samsung C&T to complete the superstructure? Just trying to project the cost (and profits) of building Star Residences. Also, how do you derive the profit for Residence Tower 1 to be RM50.0M? Care to share? And yes - the JV with UMLand is a 50%-50% JV. Looks like the profit will be split 50-50.

It seems Star Residences will be the flagship for SymLife for a few years to come. How about their crown jewel - the Sungai Long land? What is the update on the state government land acquisition for the Sungai Long Land for Langat 2 project?

Sandisk, Seagate (which occupies the land previously reserved for Robert Bosch solar), HP, Bose, ...these are some of the big MNCs coming into Batu Kawan....

@ Tornado, just checking with you , 3M is opening a factory at Batu Kawan?

Hi Miapancho, i do not intend to sell any of my OR. But i intend to buy other people's OR.

Hence, after purchasing other people's OR, does it give me their rights issue + free warrants?

just asking, what happen if i purchase the OR? Then, this means, i am entitled to subscribe to the rights issue + getting the free warrants?

@ azlan88, just a stupid question. Concerning The Star Residences, noted that the builder is actually Samsung C&T. What does that mean? Does it mean that SymLife is the master developer and then they sub-contract the building works to Samsung C&T? If that is the case, what is the role of SymLife? Also, since this is a JV between UMLand and SymLife, how will the bill for Samsung C&T being split between both of them? Just curious....don't really understand how construction really works....

http://www.thestar.com.my/Business/Business-News/2014/11/29/Alphine-Return-bullish-about-project-Good-response-to-Star-Development/?style=biz

what is the expected price of the OR?

what is the meaning of enterprise value?

what do you think is the appropriate PE for property construction/ developer like GOB?

thanks Justin Ngo. Another question. How do we determine the PE Ratio? normally, people will just hentam 4 , 5, 6, 7...any logic behind these numbers (of 4,5,6,7...)?

Hi all sifus...may i ask one question about P/E ratio.
Referring back to Icon8888's article:
http://klse.i3investor.com/blogs/icon8888/50872.jsp
In his article, he stated that the EPS from Damen should be RM0.417 (i.e.; 41.7 cents)

Assuming, if EPS = RM0.30 (30 cents) and we fixed PE at 6.0

Then, we all say - Price = 6.0 x RM0.30 = RM1.80

The problem now is the definition of EPS.

Do we look at quarterly EPS/ yearly EPS/ the cumulative/ retained earnings as part of EPS? I mean how do we define EPS and how this will affect the pricing of the share based on PE ratio?

just have a quick look at their quarterly results. Despite the smaller amount of revenue, gross profit margin is still sustained at 30%. Majority of the net profit comes from disposal of CESB.
I concur - the drop in revenue is worrying. Anyway - management commentary was saying that unbilled sales is expected to improve in the middle of the year. Any other explanation? Need to dig deeper. I think the reason is due to the delay in projects.

As at 30 September 2014, total unbilled sales was approximately RM196 million and is expected to increase significantly when the 3 new projects namely TWY Mont' Kiara, Desiran Bayu in Sri Rampai and Tijani Raja Dewa in Kota Bharu are launched in the second half of FY2015.

maybe can break RM0.90 given this one last hour

today, can easily shot past RM0.90 line but selling pressure is too great. It seems people are dumping this share to avoid subscribing to the rights.

come on....company is going through rights issue - will surely release good quarterly reports - to entice you and me to subscribe...i got a feeling today's price will still be the same as yesterday

very strong selling pressure for this counter. It seems not many are interested in this rights issue and are more interested in dumping this share before rights.

funny....no body wanna sell any shares at this price....

when is it going to hit RM1.00?

Hi all;
just want to know - any updates on the Langat2 project located at Sungai Long? The new Selangor state government gonna buy the land? If yes, how big?

@ JN88, do you mind to elaborate why the land at Kajang may be acquired by the state government?

RM450K to RM600K is not exactly low cost lar...

this sell down does not make sense... the share price should have appreciate given that we are about 2 week to the rights issue...

Hi all - about the concern that the property market will not do well next year. Well, let me share my experience as a Penangite.

There is a strong demand for property priced between RM450K to RM600K in mainland Penang. Indeed, there is a significant shortage of "affordable" housing to house the middle class income earners in the state of Penang. A visit to the Batu Kawan sales office shows the land at Batu Kawan will be used to predominantly build affordable housing priced at RM450K to RM600K.

@ rich118, hopefully, you can evaluate the logic of my thinking. Just skim through the F/S of Plenitude and yes - this is a strong company with zero debt. To top it off, yes - it has plenty of undervalued land which will translate to fat profit margin.

THe problem is that as a retail investor, i am not rich. My budget is not that big. Given my budget, if i bought Plenitude (vs. GOB), then, volume is an issue because i can only buy 1 Plenitude for every 2.5 GOB.

If both counters experienced a RM0.50 increase in their share price, then GOB should give me more returns given the volume that i have.

What do you think of my logic?

Having said this, i admit - Plenitude is a good counter to accumulate and keep for the really long term. I will definitely KIV this counter. Thanks for your recommendation.

need to take a break - just finish Penang 2nd Bridge Marathon.

SymLife is also quite a good company. Current share price is about RM1.00 with a RM2.00 net assets backing. It is like you pay RM1.00 to get RM2.00 net assets. Assets carried at book value without revaluation yet. Post revaluation, this share can easily reach RM2.50 per share.

Check out James70/ Icon8888 posting for SymLife.

@ Rich118, the total GDV for Batu Kawan is about RM1.8B. The RM660.0M GDV is a subset of this RM1.8B. Being told by the sales representative from GOB that the project for Batu Kawan should last the group a good 8 to 10 years.

For the RM660.0M, assuming if a house is priced at RM500K, they need to conservatively build about 8000 units.

Total land size at Batu Kawan is about 350 acres. Total showing in the annual report is about 200.0 acres. The rest is still at Penaga Pesona pending transfer.

@iska, mind to share what is your average cost of GOB? Mine is RM1.07 - i am stupid for not selling to lock in profits and then buy back at lower cost. This counter definitely allows us the opportunity to profit a few rounds by buying low and selling high.....

@ JN88, why the funds will not ride this share if the big boss is holding 30%++? Not enough liquidity?