Posted by houseofordos > 2013-12-23 12:46 | Report Abuse

KC, nice analysis.
A few questions :-
1. Why do you prefer Kuchai over SBAGAN or KLUANG ? Is the discount the widest for Kuchai among these 3 companies ?
2. Do you see any unwanted RPT in your study on this company ?

Posted by kcchongnz > 2013-12-23 18:14 | Report Abuse

I find Kuchai is a very straightforward case. It is purely a holding and investment company, nothing else. I didn't look at the other two companies initially. Just glanced through Sg Bagan, and it seems to have more work to do to present a case like what I did for Kluang.

I think the other two companies are equally undervalued. However, as Kuchai really has no viable business at all and it is most likely subject to some corporate exercise like prioritization, or SC may come hard to them to do something. That could unlock its value.

What make a buy a good one?
1. Price is low relative to the value
2. Potential return is high relative to risk

All the three companies nicely meet the above criteria.

Posted by carson > 2013-12-23 19:05 | Report Abuse

kcchongnz, these 3 co. has stingy bosses helming, difficult to get dividend from them, hope sc comes hard on them soon, esp kuchai thus unlocking its huge asset, the question is when. any sketches

Posted by kakijudi > 2013-12-24 10:35 | Report Abuse

kuchai is really very straightforward.

can i use my RM1.2 to buy your RM2.7? thats exactly what kuchai is about. good stock to hold. i feel some corporate activities is in the pipeline

Posted by kakijudi > 2013-12-24 10:36 | Report Abuse

kuchai really has no point of being listed. its either capital repayment or injection of business

Posted by kakijudi > 2013-12-25 17:43 | Report Abuse

High chances of greateaster being privatised. Major shareholders holding 89%. Share price highly illiquid. Rumours were they tried to privatise but kuchai is not willing to sell their share. If they offer a higher price, kuchai might agree. Let's say kuchai wiling to let to at sgd20. It's 155m cash!!!!

Posted by kakijudi > 2013-12-25 17:47 | Report Abuse

But then again. Kuchai has been like that for a decade or so. Very passive board of directors.lets hope something will happen in the near term . My top 5 pick of 2014

Posted by Jvei > 2013-12-25 21:15 | Report Abuse

Hi kakijudi, what r ur other 4picks?

Posted by kakijudi > 2013-12-25 21:19 | Report Abuse

Very speculative in nature..

Mpcorp, dgsb

I'm bullish on Hong Kong. So bank of China. And rexlot for world club theme.

I speculate for Malaysia market, for fundamentals I go for the Chinese market. There you go, my top 5 picks

Posted by kakijudi > 2013-12-25 21:20 | Report Abuse

Sorry world cup* 2014

Posted by heavyth > 2014-01-04 19:49 | Report Abuse

May i know what is the fair value or TP for Kuchai tq ?