First of all, the market cap in i3 for this company is wrong. There is an error in the shares outstanding amount. It should have been 245.7mil shares and not 8.47bil. Market cap should have been only RM24.6mil and not RM890mil as what is shown in i3. Please take note.
That being said, this is still a loss-making property developer and hospitality company with total loss of RM8.8mil in FY18. The company is facing some liquidity issues to fund their operations and any new property development. As of Dec 18, the company has a cash reserve of only RM5.8mil but a near term debt obligation of more than RM30mil.
The outlook for their hotel business in Kota Bahru, Kelantan is expected to be challenging in FY19 due to the opening of new competitor’s hotels in the area. New property development will only be made upon the improvement of the property market which might not be immediate. Investors need to be prepared for another loss year in FY19.
If you are looking to hedge your portfolio outside of Eastland Equity (due to its weak earnings outlook and funding issues), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
"On behalf of the Board of Directors of Eastland, RHB Investment Bank Berhad wishes to announce that the Company proposes to undertake a proposed issuance of up to 20% of the total number of issued ordinary shares in Eastland (“Shares”).
The Company had on 24 April 2019 entered into a conditional share subscription agreement with Lee Chee Kiang, the Managing Director of Eastland, for the proposed issuance of 25,000,000 Subscription Shares, representing approximately 10.18% of the total number of issued Shares."
MD will subscribe 25mil shares at no price discount
EASTLND telahpun memecahkan garisan menurun 7 tahun (7yrs DTL ) disokong oleh volume yang kuat. Kemudian rehat dua hari dan hari ini sekali lagi memecahkan garisan menurun dengan candle marubozu . Dijangka EASTLND akan membuat kenaikkan untuk satu dua minggu sebelum membuat retracement. EASTLND juga memecahkan aras EMA200 dan dapat dilihat EMA50 sedang menuju ke EMA200 untuk membuat persilangan bullish . Sama-sama kita perhati rapat dan sediakan trading plan. (Sekadar kajian dan pembelajaran). Kajian daru group TCT
EastLand Equity Bhd is a Malaysian based investment holding company. The business activity of the firm is operated in leasing and financing, hospitality business, investment properties and property development division. Its portfolio includes project development in Kelantan, Renaissance Kota Bharu Hotel, and shopping complex and condominium. All the activities are functioned through the region of Malaysian.
It will be another GETS and KTB by tommorrow, since market now is having rotational play for penny stock. Strong accumulation today, ready to spike further.
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....
LimKT
482 posts
Posted by LimKT > 2018-05-28 11:17 | Report Abuse
maybe can try