damansara city development is very near completion and with that alone the earnings will come in satisfactorily, this is hong leong property arm , no worry financial worry
As the project is nearing completion, it will recognize substantial profit when its BTS strategy can achieve good take up rates upon completion. Anyway, it will recognize sizable profit upon delivering the new office tower to Hong Leong Bank next year.
We have screened on GUOCOLAND (MALAYSIA) BHD on 19 Oct that it has a potential up side the next trading day.
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Earning visibilities for FY2016 will be at RM0.40 and FY2017, RM0.40. This counter is very much undervalued. The land in Sepang is being sold to Putrajaya where there will be synergies to develop the land. Very good prospect counter.
Barring any unforeseen circumstances, the Proposed Disposal is expected to be completed in the first quarter of year 2016
Upon completion of the Proposed Disposal, GuocoLand is expected to realise a net gain on disposal of approximately RM19.94 million. The net gain attributable to owners of the Company represents an increase in earnings per share and net assets per share of the Company of approximately 2.98 sen.
The company will also recognize RM137mil gain on disposal of an office tower alone to Hong Leong Bank for FYE 30 June 2016, translating into an EPS of 20 sen.
In addition, Guocoland's associate company Vintage Heights SB (VHSB) is disposing of a parcel of land in Sepang for RM475.0m. Upon completion of the disposal, VHSB is expected to realise a net gain on disposal of approximately RM290m, said Guocoland, adding that approximately RM116m is expected to be attributable to Guocoland for FYE 30 June 2017. (StarBiz)
Guocoland sold 2 parcels of land in one month. What is the reason that they are selling the land? To turn into cash for the coming opportunity when the property market turns bad?
This is a positive development. For the next 12 months, the company will have positive cash flow of close of more than RM1bil from the sales of a office tower to Hong Long Bank and sales of 2 blocks of serviced apartment from Damansara City Project. The sales of the 2 pieces of land in KLCC area and Sepang will bring in positive cash flow of RM563mil. This add up to RM1.563bil. Higher than its total borrowings of RM1.209bil. The balance sheet will become very strong.
Rumour is saying that the land bought by Putrajaya in Sepang is for affordable housing. Anyone can confirm this? If it is true, will Guocoland become the contractor to build the houses?
When earning per share increase so much but the share is dropping. When this underdog will truly release it's value. This situation looks similar like another share named success, recently rocket high after long period sleeping.
It is way undervalued @ RM1.33 based on its 9,272 acres land bank, and the substantial BUMPER profits to be recognized from its Damansara City project which is nearing completion.
Likely the cash-rich GuocoLand Limited will privatize GuocoLand (Malaysia) Bhd at RM2 or below given that the revised NAV per share for the latter was once estimated at RM5.80 by one research house.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Posted by valueinvestor > 2015-07-12 11:08 | Report Abuse
http://www.thesundaily.my/news/1485871