Disappointed with the delay and expected at least 3 cents dividend. Project will only be launched in the third quarter which means you will only see the result in November. Next quarter result will likely be the same as that of the previous 2 quarters. Not likely to move in the short term even though strong support is seen at 0.50.
KUALA LUMPUR (June 10): Property developer Land & General Bhd announced that its wholly-owned unit Victory Vista Sdn Bhd has signed a share sale agreement to acquire Pembinaan Jaya Megah Sdn Bhd – which will own 112.353 acres of land in Selangor – for RM90 million cash.
Land & General, in a filing with Bursa Malaysia today, said its proposal to acquire Pembinaan Jaya Megah will expand its land bank, which will facilitate future development projects that will contribute positively to its future earnings and cash flows.
Pembinaan Jaya Megah is currently alienating 112.353 acres of a 99-year leasehold land in Bukit Raja, Selangor from Petaling’s Land and District Office (PTP).
“On Nov 5, 2014, PTP has given its approval for the alienation of the Land and pursuant to the PTP approval, the leasehold period is 99 years and the expiry of the lease period is not yet not available pending completion of the alienation of the Land and issuance of land title(s),” said Land & General.
According to its annual report 2013, Land & General has some 31ha of land for development, with a net book value of RM38.06 million.
“The land is intended to be developed as a residential and commercial development. The board, having considered the proposed acquisition including but not limited to rationale and justifications, financial effects, valuation and associated risks, as well as the prospects of the land to be alienated for future development, is of the opinion that the proposed acquisition is in the best interest of the Land & General Group,” it said in a filing.
Land & General said it will fund the purchase via internally generated funds, or external bank borrowings. As at March 31, 2015, Land & General’s deposits, cash and bank balances stood at RM398.34 million.
Land & General (fundamental: 3; valuation: 3) expects to complete the acquisition by the second quarter of 2016 (2Q16).
Land & General also has interest in oil palm and rubber plantations operated via its wholly-owned unit Clarity Crest Sdn Bhd. The group currently has some 1,009.71ha of land in Mukim Kerling, Selangor, that has a net book value of RM48.14 million.
The stock has fallen 13% from 57 sen on April 17 to close at 49.5 sen today, giving it a market capitalisation of RM534.817 million.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations) Source: The Edge Markets
The above can be considered good news as the land to be acquired is relatively cheap at RM18 psf and likely to generate some RM150m to RM200m profit over time from the proposed residential & commercial development.
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....
bracoli
2,579 posts
Posted by bracoli > 2015-05-25 20:50 | Report Abuse
Yolooo u gave two cent lg management gave 2sen liao