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SEAL Incorporated - 11 June 2014

Queensville & Bayan City 2 Projects To Boost Future Earnings

After going through a series of restructuring exercises since 2005, SEAL managed to clean up its balance sheet to a total net cash of MYR141.8m (net cash per share of 65 sen) as at end-March 2014 from a total net debt of MYR79.2m in FY06. Going forward, earnings visibility is premised on its property development projects, especially its maiden venture into Klang Valley – Queensville project in Cheras. Queensville, with a total GDV of MYR800m, is an integrated property development project that include s a mall, 49 units of three-storey shop-lots, three blocks of suites, and five blocks of service apartments. Bayan City 2 is another key project in Penang with a total GDV of MYR1bn that includes a hotel, a mall, a commercial hub, corporate offices as well as suites.

Brief background. SEAL Incorporated Bhd (SEAL) is involved in timber logging, property development and property management activities. It has a timber concession in Perak as well as property development projects in Penang and Kedah. Bayan City 2 is one of its key projects in Penang with a total GDV of MYR1bn that includes a hotel, a mall, a commercial hub, corporate offices as well as suites. In FY14, the company is planning to launch its maiden project in Klang Valley.

Queensville – a project in a prime location with good accessibilities. SEAL has entered into a turnkey agreement with Dwitasik Sdn Bhd to develop a piece of land measuring 12.46 acres in Bandar Sri Permaisuri, Cheras into an integrated property development area called Queensville that includes a mall, 49 units of three-storey shop-lots, three blocks of suites and five blocks of service apartments. This project, with a total GDV of MYR800m, would last for the next 5-7 years. It is strategically located at the prime area in Cheras with easy accessibility via Sungai Besi Expressway, Kuala Lumpur Putrajaya Highway and East West Link Expressway, coupled with being well connected to public transports such as Salak Selatan LRT station (700m away) and Salak Selatan KTM Komuter station (800m away). 70% of its 49-unit commercial shop-lots were sold after its launch last month, and the company is planning to launch its 3-block suites in phases beginning this week.

Stable recurring income from property investments. In FY13, the property investment division contributed 10.4% to its total revenue. Its key contributor – Selayang Mall Shopping Complex, which has been managed by SEAL since 1995, is enjoying a 100% occupancy rate. Selayang Mall has been contributing about MYR17m-19m in the past three financial years. In addition, the company is holding a few commercial units in its Elit Avenue project in Penang for rental yield. Going forward, the company is also planning to hold some of the units in Queensville and North Avenue (in Sungai Petani) projects for rental income in the future.

Improved balance sheet. Over the years, SEAL has tidied up its balance sheet after going through a series of restructuring exercises since 2005, to a total net cash of MYR141.8m (net cash per share of 65 sen) as at end-March 2014 from a total net debt of MYR79.2m in FY06. Profitability has improved over time to a retained profit of MYR118.1m as at end-March 2014 from an accumulated loss of MYR294.2m reported in FY06. Property development to anchor future earnings. With pending launches of the Queensville project in Cheras and the Bayan City 2 project in Penang, as well as other projects that have a combined total GDV of approximately MYR2.0bn, we believe that property development will continue to anchor its future earnings.

STAY INVESTED SEALANTS

The fundamentals are intact: PE 3.90x and look forward to a good closing FYE 2014. Trading ups and downs are a norm for investors.

healthy profit taking, b4 next uptrend

THE BEST PART - AT RM 1.39 AFTERNOON CLOSING TODAY, SEAL's PE IS ONLY 4.40x BASED ON EPS OF 31.60c (till Q3'14). THE Q4'14 earnings announcement IS STILL PENDING>>>>>>>>>>>>>

BUY/SELL AT UR OWN RISKS> GOOD LUCK

Queensville project in Cheras and the Bayan City 2 project in Penang, as well as other projects have a combined total GDV of more than MYR2.0bn. Property development will inevitably anchor SEAL's future earnings. Also the ongoing income from property investments., the property investment division contributed 10.4% to its total revenue in FYE 2013, Its key contributor – Selayang Mall Shopping Complex, managed by SEAL since 1995 with a 100% occupancy rate.

SEAL : Cumulative eps as at 31 Mar 2014 is already 31c; with 80% coming from SEAL Q3'14 of 24.8c. If I give a conservative 20c for Q4'14, the cumulative eps for FYE 30 June 2014 will be estimated 50c. Based on a forward PE of 4.5x, FV RM 2.00 and above.......................... Nothing goes up and down exponentially in BURSA!. LETS RIDE THE TIDE>>.>>>>>>

Alex bro, look mid -term on SEAL. Don't cash in the chips so fast; and don't worry about the candlesticks and the waves. FA rules ok. The Queensville project is SEAL's bonanza. Heard its is100% sold out; with a GDV close to RM 1.0b.Lets STAY INVESTED WITH THIS co and huatttt all the way. My near term FV RM 1.80 remains. Good luck all SEALANTS

ETI TECH BHD - BENEFICARY OF CONSORTIUM ZENITH BUCG's MASSIVE INFRASTRUCTURE DEVELOPMENTS IN PENANG, PRIMARILY THE UNDERSEA TUNNEL PROJECT. STAY INVESTED

Why r the directors of Consortium Zenith, especially the son of the Chairman of Zenith Group, in ETI TECH BHD???? Is a BIG CORPORATE EXECISE ON THE WAY?.

Jetli I am on the way from Singapore! Hard pressed for time. The land swap of 48ha in exchange for building the sea tunnel by Consortium Zenith BUCG has an estimated GDV of 25b. That explains the potential value of ETI TECH if it materializes!

1. Fourth quarter (30 June 2014) results by August 2014; hold and access the price then, another 30c EPS in Q4, will send the price to RM 2.00. MID TERM INVESTMENT STOCK, EVERY PULLBACK IS AN OPPORTUNITY TO BUY

18/06/2014 11:14

2. Based on a conservative eps of 40c for coming FYE 30 June 2014; and PE of 4.5x, the FV should be around RM 1.80 when the year end June financials are announced in August. Price normally runs ahead before August.... Extremely good fundamentals. Looking at RM 2.00 by year end or earlier. Stay Invested in SEAL>>>>>

23/06/2014 17:41

Consortium Zenth BUCG Sdn Bhd undertaking the RM 6.2b four-lane undersea tunnel from Butterworth to Georgetown, Penang, under a land swap arrangement with the State Government, is poised to be a significant developer in Penang's most prime waterfront property. Speculation is rife that Consortium is seeking backdoor listing through a reverse takeover (RTO) of ETI TECH CORP BHD. This is followed by the appointment of two Zenith directors, Zarul Ikhwan Zarul Ahmad and Datuk Mohamad Amin Mohamad Salleh to the ETI TECH BOARD. Zarul Ikhwan Zarul Ahmad is the son of Zenith Group Chairman Datuk Zarul Ahmad Zulkifli. Reports says Zarul Ikhwan Zarul Ahmad and ppl aligned to him hv gained control of 10% new shares issued by the company thru a privately-held Hong Kong vehicle. The biggest block is still held by Air Asia Bhd co-founder and executive chairman, Datuk Kamarudin Meranun. If an RTO does take place, interest in ETI TECH BHD would likely pick up as the Consortium Zenith BUCG is a prime beneficiary of infrastructure development in Penang and for the latter, there is a compelling factor to go for ETI TECH's listing status for future fundraising. Why r the directors of Zenith in ETI TECH BHD???? YOUR GUESS GOOD AS MINE.

(Pages 21 & 28 of FOCUS MALAYSIA (June 28- July 4 2014)

Posted by duitKWSPkita > Jun 24, 2014 11:00 AM | Report Abuse
Connie, u really want to wait? For RM0.450 u need to wait till 15 August 2014.

Jun 18, 2014 06:27 PM | Report Abuse, Connie my lovely. Understand your aim of 62% from RM0.330 (closing/wave 1). I have discussed to all my legal and illegal gorenger(s). They have decided to goreng it start from 24 June 2014 (Tuesday) most probably. And so sorry to inform you that we are unable to lift up to RM0.53 as per aimed. Nevertheless, we will push up the price to RM0.450 latest by 15 August 2014(Friday).

AFter the price of RM0.450, your abang kesayangan Mr Tan Sri BAM President will take up our job to push further toNORTHEAST and you may take profit 1 at RM0.450 + take profit 2 at RM0.530.

Posted by connie > Jun 27, 2014 11:40 AM | Report Abuse

THE POWER OF WAVE 3 .... KTB HOLDERS ... READY TO SURF ??????

on the way to 39c huat arrrrrrrrr>>>>>>>>>>>>>>>

Based on a conservative eps of 40c for coming FYE 30 June 2014; and PE of 4.5x, the FV should be around RM 1.80 when the year end June financials are announced in August. Price normally runs ahead before August.... Extremely good fundamentals. Looking at RM 2.00 by year end. Stay Invested in SEAL>>>>>

23/06/2014 17:41

Based on a conservative eps of 40c for coming FYE 30 June 2014; and PE of 4.5x, the FV should be around RM 1.80 when the year end June financials are announced in August. Price normally runs ahead before August.... Extremely good fundamentals. Looking at RM 2.00 by year end. Stay Invested in SEAL>>>>>

Second quarter results by August 2014, hold and access the price then, another 30c EPS Q2, will send the price to RM 2.00. MID TERM INVESTMENT STOCK, EVERY PULLBACK IS AN OPPORTUNITY TO BUY

At PE of 3.17x, BUYY!! BEFORE RM 1.00 becomes history. WILLL GO UP BASED ON LOW MART CAP of 224m shares AND STRONG EARNINGS. SECONG QUARTER ABOUT TO END 30 JUNE 2014, POWER PACKED EARNINGS TO BE UNLEASHED AGAIN.

At todays closing price PE a low 3.5x; At Rm 1.50, PE 4.74x. Hold till August (2nd quarter) and admire the cool pickings!

FMV 1.50 very sooooon!!!! , RM 2.50 after 2nd Quarter Earnings in August 2014

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1658013

Agree with u BURSAMASTER. The good news is to come soon. AGM 18 June 2014

Price Earning Ratio 35x!!!

Rm 6.00

Rm 6.50 comin soon, market capitaliasation 42m shares only.

RISKS IN THAILAND. HOW DO U MITIGATE THIS??? AN ANSWER PLEASE B4 INVESTING. PROBABLY THE BRITISH HV SOLD OFF A BIG PORTION OF THE THAI JOINT VENTURE STAKE TO SONA AND HOLDING OUT AS TECHNICAL CONSULTANTS ONLY..................... IS SONA IN TROUBLED WATERS, THE TRADE-OFF COULD BE A GOOD ACQUISITION COST DEAL FOR SONA.. RISKS!

BUY!!

TP BY THREE LEADING BANKS : (i) CIMB (2 June 2014) Rm; 2.99 , (ii) RHB (3 June 2014) Rm 3.52; and (iii) AMBANK ( 5June 2014) Rm 3.90. Wow! First time I see 3 leading bank endorsements for a single stock within 4 days. THE NEXT ECOWORLD

hepi...................

Heading to RM 3.00

Small capital base of 220m shares, with such a runaway financial performance, was expecting limits up like ECOWORLD, today,,,,,,,,,,,, At a price of RM 1.00, the PE will only be 3.17

Edge Today ( 2nd - 8th June) on KNM's multi billion waste to energy project in UK, advanced stage of finalizing the funding and more.................please get a copy and read

newman: bro u doing a great noble deed in helping and taking a special interest in the forrumers here. Hope our forrumers understand this. Good nite

Sheila: butter anytime, skip u lah for her

sheila; how come u don't phone me at 3am. I turn "virgin' at that time!!

Newman: god bless u for ur good job bro. I hope the readers understand this and make money with their precious time, rather than engaging in meaningless and fruitless discussion.

meena: good luck for us

pop8872; r u in bro for the afternoon bus ride. thks to bro newman

noisyboy; Bot 100k KTB@0.29 for contra. Try luck.

newman: Bro thks for the DBHD info. Bot 100k KTB@0.29 for contra. try afternoon and see. Thks again

zu1967. KTB retrace sikit beli bro

Newman: Bro sold all 200k KTB (Cost 0.26) at 0.295 and made Rm 6.7k. thks a million. God Bless

newmam; bro bot 200k KTB @0.26. Will push off soon. tks a million bro

henry123: hahaha! I am surprised u still got ur sense of humour there, never really lost ur ball bearings ya!. Good boy, will teach u how we operate at 'Regain Ship'. Its called 'OPERATION FAST MONEY, ANYWAY WHICH BUT LOSE'. I don't hide behind ids, got balls of steel. BUY ASIAPAC on Monday for mid-term investment, and u will never regret bro! Smile......... Bye bye

Christine/Sheila/ Koik/Butter/zu1967/swingbro: Can I play Elton John's "Sad songs Say So Much". I am almost in tears now haha! Someone came to our "Regain Ship" forum and got hit with a barrage of FA/TA/CONTRA/INTRADAY stock transactions he could not fanthom! Very sad indeed. He forgot we got FA, TA, SWINGTRADE,CONTRA & INTRADAY OR A COMBINATION OF THESE 'specialists' on Board. Need help here badly, could have lost his ball bearings also!! Soooo sad for u bro, will recommend "ASIAPAC ON THE ROCKS" >>>>>>>>>>>> sure make back this time one ah! Cheers. got to hit the pubs!

newman : bro he is stuck!

zu1967: Agreed. thks

swingtrader . Thks bro. 'The proof of the pudding is in the eating' Lets monitor the price and make money hahaha!

Stay safe, Stay Invested in Good fa stocks.> Happy Weekend.

Sheila & Zu 1967: REFERENCE TO UR QUERIES: BASED ON ASIAPAC's EST FY14 EPS of 3.10c. & EST PE of 11.5x , IT SHOULD BE TRADING AT 0.35/37c. WHEN THE MALL OPENS IN JUL/AUG 2014, IT WILL BE A DIFFERENT BALL GAME ALTOGETHER> STAY INVESTED. STAY SAFE