Posted by moneySIFU > 2016-10-07 11:06 | Report Abuse

Very well structured & detailed analysis. You've done it again, WealthWizard.

Thank you for sharing!

Posted by probability > 2016-10-07 11:16 | Report Abuse

Ohh!! WealthWizard is back! I am going to have a fantastic weekend...he he

Posted by 张天师除妖 > 2016-10-07 11:33 | Report Abuse

难得在公众网站看到如此好的文章，想问一下，你是专业分析员吗？

Posted by ronnietan > 2016-10-07 11:36 | Report Abuse

You've one up on analysts.

Posted by williamloh928 > 2016-10-07 11:43 | Report Abuse

soon people would realize this deeply undervalued Gem with huge upside,, as there's only one direction, North.

Posted by WealthWizard > 2016-10-07 12:09 | Report Abuse

Thank you for your comments, moneySIFU, probabilty, 张天师除妖, ronnietan & williamloh928

Posted by Jon Choivo > 2016-10-07 12:10 | Report Abuse

Great write up, its going to be a pretty good next 2 weeks.

Posted by WealthWizard > 2016-10-07 12:10 | Report Abuse

张天师除妖, it's my hobby & I am not working as analyst. Hope you like it. Thank you.

Posted by probability > 2016-10-07 12:16 | Report Abuse

i like the way W-Wizard use those cartoon images....makes me feel young at heart..he he..and color selections (so soothing to the eyes)...and of course the facts presented...simply the best in i3 so far..

Posted by Jon Choivo > 2016-10-07 12:18 | Report Abuse

I know right, i sometimes wonder if he's an auditor, as his presentation is very clear.

Posted by younginvestor92 > 2016-10-07 12:55 | Report Abuse

This thing i really don't dare to buy 0.0

Posted by younginvestor92 > 2016-10-07 12:57 | Report Abuse

But i will be here to cheer for you guys :D

Posted by Jay > 2016-10-07 14:01 | Report Abuse

thanks for the article. I think there are some items which you might want to consider as well.

1. A huge chunk of construction orderbook is from Duke 3, so you might want to include the interest on the sukuk to be issued to finance the construction. It's RM3.64b but of course Ekovest won't max it out and won't issue all at once. But even if another RM2b in debt x 5% interest will shave off your PBT by RM100m a year

2. There are 122m warrants outstanding which is already in the money. as long as share price doesn't fall below RM1.35, we can expect warrant holders to convert. Based on your upside calculations, that would dilute it down to ~RM3.50

If you consider the above factors, the upside may not be as huge but of course this is ignoring future property developments, new construction jobs, Duke 3 etc.

Posted by WealthWizard > 2016-10-07 14:57 | Report Abuse

Hi Jay, good to point out, my reply is as follows:

1. The interest for sukuk will be capitalised during the construction period of Duke 3 . You may refer to Ekovest account (past 2 years) in treating the construction of Duke 2.

2. Any target price is just a visionary target, market will be the final decider.

Posted by WealthWizard > 2016-10-07 15:01 | Report Abuse

Before & during construction of Duke 2, the islamic notes were issued & the proceeds received has been put into investment fund.

Posted by Mohd Fahmi Bin Jaes > 2016-10-07 15:04 | Report Abuse

down

Posted by moneySIFU > 2016-10-07 15:06 | Report Abuse

Famous Mohd Fahmi is here, can you talk more rather than just saying:
Sell, down, run....

Posted by Jon Choivo > 2016-10-07 15:07 | Report Abuse

I can guarantee you over the next few weeks one day down, one day up, one day down, one day up.

Sometimes, it will be 2 days up, 3 days down, or 3 days up, one day down.

Its called thousands of human beings buying or selling based on mood. In the end however, it will go back up once they announce the div and the completion of sale.

Posted by moneySIFU > 2016-10-07 15:08 | Report Abuse

You go everywhere to say same simple word only, pity you.
http://klse.i3investor.com/servlets/cube/post/619963960.jsp

Posted by moneySIFU > 2016-10-07 15:10 | Report Abuse

Well say, Jon Choivo, market is always emotional one, the same company can be up & down very frequently, kind of crazy stuff. If anyone try to time it, good luck.

I prefer look at what I am going to get & trust my judgement rather than looking at others' people moods.

-----------------------------------------------------
Its called thousands of human beings buying or selling based on mood. In the end however, it will go back up once they announce the div and the completion of sale.

Posted by WealthWizard > 2016-10-07 15:25 | Report Abuse

Agreed, moneySIFU & Jon Choivo, thousands of people with different backgrounds, financial positions, moods, expectation of risks & rewards, etc.....

Not easy to predict, all we can do is understand ourselves, know what we want & what are we buying.

Posted by Jay > 2016-10-07 16:03 | Report Abuse

hi wealthwizard,

1. you are correct. Duke 3 will take longer to construct so the interest cost won't appear in the 4 years period.

2. of course market decides the TP, I'm just using your calculations as an illustration. because when market looks at PE, they do look at EPS, which will be diluted when warrants kick in. just highlighting

Posted by WealthWizard > 2016-10-07 16:17 | Report Abuse

Thank you, Jay, we are all small time investors, I don't think my articles can push up big company like Ekovest, just hope to get something back for our money.

Open up all facts & disclosing all figures will help to make informed decision. Rather than listen to newspapers where only a small portion of facts/info disclosed here & there.

Posted by Flintstones > 2016-10-07 16:37 | Report Abuse

Jay, I think your concern about earnings being diluted in the future years is pretty myopic. When people look at Ekovest at the fundamental level, they see high PE and high debt. What they missed was the value behind Kesturi, construction arm and property arm as well as the potential of Duke 3. Perhaps why Ekovest is undervalued now may be caused by the big project at hand - Duke phase 3 where a significant of construction costs may be incurred. The beauty of investing in Ekovest right now is we all know Ekovest is undervalued and EPF had done the maths for us. The price which investors paying at the current price is 60% of kesturi. The key to profitting from this investment is up to the management actions to minimize the disparity between the price and value and investors to ride the wave.

Posted by valuelurker > 2016-10-07 18:58 | Report Abuse

Profit projections are way off. Duke 2 revenue ramping up is too optimistic

Construction of Duke 2 is at the tail-end, at the start of this year already 70-80% completed. Duke 3 construction and recognition will only start next year

Revaluation gains are one-off, but then you know that already

Better hope next Q results will include exceptional items or 'early profit recognition' or this is a goner

Posted by moneySIFU > 2016-10-07 19:09 | Report Abuse

Profit projection is always subjective, so nothing to argue, if you think too otimistic, then it is.

You are right at duke 2. But Duke 3 is started in august, please google the relevant news.

Since this is your opinion saying it's goner, then just let it be gone.
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Posted by valuelurker > Oct 7, 2016 06:58 PM | Report Abuse

Profit projections are way off. Duke 2 revenue ramping up is too optimistic

Construction of Duke 2 is at the tail-end, at the start of this year already 70-80% completed. Duke 3 construction and recognition will only start next year

Revaluation gains are one-off, but then you know that already

Better hope next Q results will include exceptional items or 'early profit recognition' or this is a goner

Posted by moneySIFU > 2016-10-07 22:44 | Report Abuse

Valuelurker, mind to share what are your expectation on profit before tax margin for the following?
Construction
Property
Rental from EkoCheras Mall

Posted by younginvestor92 > 2016-10-07 23:38 | Report Abuse

it's good if all the things mention come through, definitely big upside potential....but the downside potential is also no joke....

Posted by moneySIFU > 2016-10-07 23:41 | Report Abuse

Will Ekovest benefit from Bandar Malaysia in long term? Since IWH-CREC is the master developer of Bandar Malaysia.

Like Gearge Kent in MRT2, GKent is the Project delivery partner & awarded itself RM1bil MRT2 job.

----------------------------------------------------------------
1. Ekovest's Tan Sri Lim Kang Hoo owns Credence Resources
2. Credence Resources is the 60% shareholders in IWH.
3. IWH owns 60% in IWH-Crec.
4. Bandar Malaysia is 40%-owned by MoF, with IWH-CREC holding the remaining 60%.

With an estimated gross development value of RM200bil, Bandar Malaysia is located on the former Sungai Besi air force base. Its development will be carried out over three to four phases and expected take 20 to 25 years to complete.

News from The Edge Weekly:
Bandar Malaysia, TRX incentives - a boon or a bane? (The Edge Weekly)
http://klse.i3investor.com/blogs/moneymoney/105972.jsp

Posted by moneySIFU > 2016-10-07 23:43 | Report Abuse

younginvestor92, my 2 cents opinion as I only responsible for my money invested in Ekovest, with such huge jobs in hand, downside is quite limited, unless Malaysia is having war later, then can't say.

While downside is being taken care, it is up to the Market to decide its value in coming months.

Posted by moneySIFU > 2016-10-09 00:37 | Report Abuse

Just want to refresh memory only (http://klse.i3investor.com/blogs/moneymoney/105124.jsp):

Construction outfit Ekovest Bhd expects to surpass the RM1 billion revenue mark by its financial year ending 30 June 2017, driven by strong outstanding order book of RM5.3 billion.

Besides that, Lim said Ekovest was also bidding for another RM5 billion worth of construction jobs.

He said the company had a good chance of securing several of them including the 1Malaysia Civil Servants Housing project in Putrajaya and the Pan Borneo Highway job.

Other than that, Lim said, the group was pre-qualified for the Light Rail Transit Line Three and Mass Rapid Transit Line Two.

Posted by probability > 2016-10-09 10:28 | Report Abuse

slow & steady....or fast & furious...either way, EKOVEST will keep climbing to the TOP! he he..

Posted by Xinquan > 2016-10-09 12:46 | Report Abuse

Perhaps director buy big house, big car or pay themselves high salary and give little dividend for shareholders? Hence 2 sen dividend only for us?

Posted by yapyk > 2016-10-09 13:01 | Report Abuse

Yeah.....ekovest directors pocket big money....pay shareholders peanut only.

Posted by moneySIFU > 2016-10-10 10:08 | Report Abuse

Hmmm.... Interesting, the directors should be staying at the apartments and driving proton, Pls don't buy since it does not fulfill your requirements. Pls look for Public Bank or BAT, they pay more dividends.

Posted by moneySIFU > 2016-10-10 11:10 | Report Abuse

It is very interesting to know on "binding term sheet", why not just LOI, Term Sheet or MOU?

http://www.acc.com/chapters/socal/upload/acca-presentation-10-15-08-6-1.pdf

Posted by probability > 2016-10-11 23:04 | Report Abuse

https://www.youtube.com/watch?v=dNHvE_sprkg

Posted by probability > 2016-10-11 23:06 | Report Abuse

http://www.theedgemarkets.com/my/article/case-monetising-future-earnings

Posted by paperplane2016 > 2016-10-11 23:10 | Report Abuse

300mil div? Interesting

Posted by moneySIFU > 2016-10-12 00:46 | Report Abuse

Thanks for the news, probability.

Posted by moneySIFU > 2016-10-12 00:47 | Report Abuse

Sound interesting, paperplane, but you always have better sense in this.

Hope you are right on this part: Don't be surprise if high end.

Posted by moneySIFU > 2016-10-12 01:01 | Report Abuse

EkoCheras - A Mixed Development Property by Ekovest Berhad
https://www.youtube.com/watch?v=AhR0fV_c9kk#t=65.939161

Posted by paperplane2016 > 2016-10-27 23:56 | Report Abuse

Now with new contract beautiful river. Can revalue?

Posted by moneySIFU > 2016-10-28 22:58 | Report Abuse

I think WealthWizard has not incorporated effect of RoL, but existing assumptions are already more than enough to prove how good is Ekovest. With so many good news week in week out, what management is trying to do is very interesting.

Posted by moneySIFU > 2016-11-01 22:14 | Report Abuse

The projection does not include any new contracts or property sales. What if Ekovest manages to get 1bil project as told by the MD in the news?

Most important is Ekovest has proved has the ability to deliver good result/margin when completing projects in the past years.

Posted by RUOutOfUrMind > 2016-11-10 11:52 | Report Abuse

This is the best article of all

Posted by RUOutOfUrMind > 2016-11-10 11:52 | Report Abuse

Thank you WealthWizard, I bought Ekovest after your article published

Posted by cstanmyinvest > 2016-11-13 12:04 | Report Abuse

Hi WealthWizard, referring to table 6 above, do you have the data on the tax payable by DUKE 1 & 2 for 2017 and 2018 to derive the PAT ? TQ

Posted by bkt2008 > 2016-11-13 12:05 | Report Abuse

http://klse.i3investor.com/blogs/tbresearch/108659.jsp

Posted by 明天会更好 > 2016-12-07 11:35 | Report Abuse

如果依据文章的计算，就算用12倍的市盈率而不用作者的15倍，EKOVEST的目标价应该至少是RM3.00.