Kanger International Berhad to sell properties in China for RMB 400 million (no play play)



Kuala Lumpur, 29 September 2021 – Bursa Malaysia’s ACE Market-listed Kanger International Berhad’s (“Kanger”, “the Group” or “the Company”) via its wholly-owned subsidiary Ganzhou Kanger Industrial Co Ltd today announced that it had entered into a letter of intent (“LOI”) with Huizhou ZhongNeng Construction Ecological Resources Technology Co Ltd, a subsidiary of China Energy Construction Co Ltd (“China Energy Construction”) to dispose two commercial buildings and land located in Ganzhou City, China for approximately China Renminbi RMB400.0 million (equivalent to Malaysia Ringgit RM258.9 million).

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Listed on the Hong Kong Stock Exchange, China Energy Construction is a Chinese state-owned energy conglomerate involved in the design and construction of power projects as well as manufacture of power industry related equipment. As one of the leading power industry players globally, China Energy Construction has approximately 160,000 employees and has been involved in major power projects globally.


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The two commercial buildings comprise a 19-storey hotel and a purpose-built 6-storey one-stop “AutoCity” located at Ganzhou Economic and Technological Development Zone, Ganzhou City, Jiangxi Province in China. Based on an independent valuation report, the assessed value of these two properties is RMB295.4 million (RM190.8 million).


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Kanger’s Executive Director, Mr. Steven Kuah Choon Ching (柯 俊 敬) said, “We are delighted that a large and reputable organisation such as China Energy Construction has expressed interest in purchasing our properties in Ganzhou City. Upon disposal of the properties, we will be able to realise significant capital gains as well as raise a sizable amount of cash flow”. “As the Group pivots into the construction business segment, the disposal of the properties is timely as it enlarges our war chest to fund the expansion of our construction division. The proceeds raised will be used as working capital for our existing 7 construction projects totalling approximately RM1.0 billion in orderbook. Furthermore, with a stronger balance sheet, we would be able to take on larger scale construction projects, thus enhancing our competitive advantage when tendering for new projects”.


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“Moving forward, we are eyeing to become a formidable construction player by leveraging on our business network and proactively participating in construction tenders. We believe the ongoing transformation journey will augur well for the Group and increase our shareholders’ value in the coming years. In the near term, we expect a healthy recovery in our financial performance stemming from the resumption and recovery of economic activities,” he concluded. Upon conversion of the land parcel from industrial to commercial status, both parties will enter into a definitive agreement whereby the final purchase price will be determined based on the market value of commercial land in the same area which is estimated to be RMB400 million (RM258.9 million).


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Trade Wisely.

https://klse.i3investor.com/blogs/PublicInvest/2021-10-01-story-h1591843324-PublicInvest_Research_Headlines_1_Oct_2021.jsp

https://klse.i3investor.com/blogs/PublicInvest/2021-10-01-story-h1591843324-PublicInvest_Research_Headlines_1_Oct_2021.jsp

Kanger: To sell buildings, land in China for RM258.9m. Kanger International is selling its two commercial buildings and land in Ganzhou city, China for RM258.9m. Its subsidiary Ganzhou
Kanger Industrial Co Ltd had entered into a letter of intent (LOI) with Huizhou ZhongNeng Construction Ecological Resources Technology Co Ltd for the disposal. (BTimes)

Yes , trade wisely....

https://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=24885

Actually I think people say I funny la but tbh 0.7 is really sound possible. As we knew that kanger is making losses at the past but they are also trying making profit since MCO started, especially the mask and the business of master sung is in. Which is possible to reflect a good outcome at coming QR

Tengah tidur bukan x bangun pun, Maybe sekarang masa dah nak sampai

Kanger to the moon

Technical of Kanger started to forming already, Keep monitor for a short while. There are a small rebound sign.

@CubaSaham , X relate dengan Kanger, yang sekarang paling direct affected 99 ialaha International bank.

Recent info for Kanger : https://www.bharian.com.my/berita/nasional/2021/09/862093/kanger-yakin-prospek-kumpulan-kekal-cerah

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Ignore Whistlebower only la, else he will frustrating here, because got nothing new to update , just spam all day for his own happiness. Let him continue shiok sendiri

this guys all time work it as a spammer, already lazy comment at him aldi, Same gang as the BilisMasin

If you were said no return, why keep stay this counter trash talk ? lol

So many PENNY stock out there, even some quality one also bounce from penny stock la. Talk until like penny no tomorrow. Depends on how you see thing la, Negative, forever negative, when value come, there are those commenter said SCAM, when drop, cheer like monkey. Funny keyboard warrior.

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Kanger go go go ! Price is moving !

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Pure spammer BilisMasin

Like kanger cheap price, can keep sapu la.
Those dividend stock like cocoland, hupseng QR also so so only.
Hopefully current pressure and heavy sell down will bounce the market back ba.

not an ez timing for everyone, even glove stock also red closing.

To be honest, people mind started to lose confident on Kanger on the price range but the business started all over the goreng wave. Therefore I highly confident as the company toward fundamental and business

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new account again - hobetlu. Wow - surprise ah. How many more account to created ?

Can see that BilisMasin is so working hard while his another account 18KH kena blocked.

Good job.... Any new account you open recently ？

Aiya
so Sad 18KHarmoni , nevermind la, You can use another account to comment

When ppl comment sikit, triggered pula. Your boss paid you how much ?

18KHarmoni Nothing is related between sinopharm and ConGer
23/08/2021 2:33 PM

So is that relate to you ? eehhhhh.... main comment je...

Copy paste .... Copy paste.

Ez spammer
18KHarmoni 18KHarmoni
18KHarmoni 18KHarmoni

As usual lo. At least something new ma. Every time copy paste, we no sienz, people see also sienz la

Post removed.Why?

Today market seem so so, More like people looking at the politic issues.

https://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=24738

https://www.nst.com.my/news/nation/2021/08/717928/uae-donates-1-million-doses-covid-19-vaccine-malaysia

Kanger going to relate something with Hayat-Vax ?

When you don't know how to reply. What to do is

Copy paste je. Copy paste, Copy paste.......

Suspicious.......

what is your ulterior motive, someone paid you to do this ?

Post removed.Why?

Post removed.Why?

https://www.facebook.com/watch/?v=2032966743532742&extid=NS-UNK-UNK-UNK-AN_GK0T-GK1C

Covid limit up faster than share market now. hahahaha....

https://www.thestar.com.my/business/business-news/2021/08/09/kanger-to-strengthen-new-business-segments

PETALING JAYA: Fresh from its acquisition of a 51% stake in building materials supplier Sung Master Holdings Sdn Bhd, Kanger International Bhd aims to strengthen the contribution of property investment and management business to the group’s revenue.

Executive director Steven Kuah Choon Ching (pic) said although the contribution from the segment is small currently, it is a potential growth driver, apart from the construction business, going forward.

The bamboo flooring manufacturer is exploring new revenue streams to put the group on a stronger footing to turn around its financial performance.

It hopes to return to the black in the financial year ending March 31, 2022 (FY22) after incurring a net loss of RM47.45mil in FY21.


Kuah said that in an effort to expand the contribution from the property investment and management business, it has recently purchased 126 serviced apartments in Antara @ Genting Highlands for RM142.9mil.

As for the rationale of this acquisition, Kuah said: “With the Covid-19 pandemic, we felt it was an opportune time for us to invest in properties at attractive prices. As it was an en-bloc purchase, we were able to obtain a discount of about 19%.”

Notwithstanding the prevalent challenges in the tourism sector, he is upbeat that the potential of these properties – located at Genting Highlands – would bode well for the group on a multi-year horizon.

“By the time these serviced apartments are completed in 2024, the tourism industry would have returned to the pre-pandemic era, and Genting Highlands is a major destination that attracts large numbers of local and foreign tourists all year round.”

Kuah is positive that the properties would bring in a steady flow of recurring income by way of rentals.

“In addition, we will benefit from capital gains when the properties are sold, given our attractive entry prices,” he added.

“All in all, we are in the midst of transforming the group into a robust and diversified business entity that generates sustainable value for its shareholders.

“The progress has been positive thus far and we expect these developments to come into fruition within the next few years.”

To bolster its revenue portfolio, Kanger has expanded its source of earnings into a new business – the construction segment.

One of the exercises undertaken is the acquisition of a 51% equity interest in Sung Master for RM94.8mil.

Kuah said this acquisition is a strategic plan for it to develop new income streams that are complementary to its construction business.

Sung Master is mainly involved in the sales and trading of building materials, which include timber flooring, tiles, bulk cement, concrete, locksets and sanitary ware. Its clients consist of property and construction players as well as engineering consultants.

“The group can source for building materials at relatively competitive prices by leveraging on Sung Master’s existing supplier network, which then leads to greater cost efficiencies for our construction segment when tendering for new projects.

“Financially, the acquisition of Sung Master is earnings-accretive and hence the consolidation of Sung Master’s financial performance will contribute positively to Kanger’s profitability and cashflow,” he noted.

Sung Master has consistently delivered profitable performance over the past three financial years from Jan 31, 2018 up to the audited 17-month financial period ended (FPE) June 30, 2020 and latest unaudited 10-month FPE April 2021.

Moreover, Sung Master paid out dividends totalling RM25mil during this period.

For the full year, Kuah expects Sung Master to deliver an estimated profit after tax and revenue of RM20mil and RM115mil, respectively.

Currently, he said Kanger is working on construction projects with an orderbook of about RM1bil, which would contribute to the group’s earnings over the near term.

On the aspirations for its new construction arm, Kuah said: “Our goal is to transform the segment into a significant business pillar of the group.

“By doing so, we intend to expand our construction business by undertaking more building construction, civil engineering and project management contracts.

“We are also aiming to obtain Grade 7 contractor license from the Construction Industry Development Board that will enable us to undertake projects of any value.”

More like they are scare of you.... No you, they don't know what story to do

Good good good, kanger still hot topic, 18K busy promoting.
Counter still hot. Unlike others dead counter. See also boring.

lol, Alvin comment. funny...but true....

https://themalaysianreserve.com/2021/08/06/kanger-confident-new-construction-biz-to-be-significant-growth-driver/


KANGER International Bhd is optimistic to return to profit in the coming financial year ended March 31, 2022, supported by its new construction division.

The ACE-Market company aims to expand its construction segment by undertaking building construction, civil engineering and project management contracts as a main contractor or sub-contractor.

The group has secured an orderbook worth of RM1 billion for its construction projects at present.

“We also aim to secure the Grade 7 contractor licence from the Construction Industry Development Board, which will enable us to undertake construction projects of any value,” ED Steven Kuah Choon Ching said in a statement recently.

Kanger entered into the construction sector to build a resilient business that focuses on growth and sustainability, after traditionally specialising in manufacturing bamboo flooring materials.

Kanger has acquired a 51% stake in Sung Master Holdings Sdn Bhd, a building materials supplier, to stand out against its construction competitors.

The group said the acquisition would improve operational synergies and contribute positively to the financials.

Sung Master’s clients are mainly property and construction players and engineering consultants.

“The acquisition of Sung Master is earnings-accretive and will bring an immediate positive impact to the group’s financial performance.

“Sung Master has consistently delivered a profitable performance over the past three financial years ended (FYE) Jan 31, 2018 up to the audited 17-month financial period ended June 30, 2020 (FPE) and the latest unaudited 10-month FPE April 30, 2021.

“Moreover, Sung Master even paid out dividends totalling RM25 million during this period,” Kuah said.

He further said Sung Master’s recorded an unaudited profit after tax (PAT) of RM11.8 million against a revenue of RM76 million for the latest 10-month FPE April 30, 2021.

He added that Sung Master is estimated to register a PAT and revenue of approximately RM20 million and RM115 million respectively, for FYE June 30, 2021.

Kanger’s acquisition of Sung Master has been approved by shareholders and the purchase is expected to be completed within the next month.

The company said it can source for building material supplies at relatively competitive prices by leveraging on Sung Master’s existing suppliers, hence, improved cost efficiencies when tendering for new construction contracts.

“Moving forward, we are confident that our new construction business will be a significant growth driver in our group’s transformation journey.

“We will be actively bid for new construction projects and grow the construction business to be a significant business pillar to the group,” Kuah said.

Kanger has proposed a renounceable rights issue with warrants on the basis of one rights share for every existing share and a free detachable warrant for every one rights share subscribed in order to strengthen its financial position and capital base.

The exercises could raise gross proceeds of up to RM20 million under the minimum case scenario and RM171.7 million under the maximum case scenario at an issue price of six sen per rights share.

“The rights issue will enable shareholders to increase participation in the future direction of the group as we embark on investments and acquisitions that will propel the group to greater heights,” Kuah said.

Kanger shares closed unchanged at 6.5 sen yesterday, giving the company a market value of 181.75 million.

Last month, Kanger’s wholly owned subsidiary, Kanger Medical International Sdn Bhd, entered into an agreement with Sparmak Medical Equipment Trading LLC to purchase five million doses of Sinopharm Covid-19 vaccines to be distributed in Malaysia.

The vaccines are manufactured in the United Arab Emirates under the Hayat-Vax brand.

Sparmak Medical is an authorised partner of G42 Medications Trading LLC.

Friday usually off day for them ~~~

sinopharm for kids la. 12-18

Cheap plug keyboard warrior, comment comment and buka new account only. Nothing new

More and more new account created

I guess coming two quarter share price sure fly

lol. their skill same la, One cannot win to talk
Another will come. Play combo, if cannot support. Then, copy paste.
Cannot lagi, talking non-sense .... bla bla, started comment without fact

Not a consider a fans, Somehow I agree the share price is low and lots of news, but isn't that bad right. Sell on news. Then mid term is fair enough.

lol, No do job, No KPI. Continues spam please.