Land & General Bhd (L&G) is gaining investor interest with its huge cash pile, attractive dividend yields and relatively undervalued position.
The company’s cash position of RM533.6 mil as of end-June is seen as attractive compared to its market capitalisation of RM440.4 mil as at Aug 30.
“With that net cash position, it is almost like buying the company for free,” says a fund manager.
In addition, the company’s long-term prospects appear bright with more than RM3 bil worth of on-going and future projects in the pipeline. Investors are also said to be waiting for the company to unlock some of its assets.
“We have got all these hidden jewels in the centre of mature developments which are ready to launch at any time.
“With our available cash, we will probably look at bigger land acquisitions to develop townships,” chief financial officer Wong Keet Loy tells FocusM.
As of end-June, the company had cash and short-term funds of RM533.6 mil, while total borrowings stood at RM83.1 mil.
Cash RM533.60M minus loan RM83.10M=RM450.50M over total share of 1,092,000,000shares = RM0.4125/shares higher than current share price of RM0.40/share. Really too under-valued.
Land & General Bhd (L&G) is gaining investor interest with its huge cash pile, attractive dividend yields and relatively undervalued position.
The company’s cash position of RM533.6 mil as of end-June is seen as attractive compared to its market capitalisation of RM440.4 mil as at Aug 30.
“With that net cash position, it is almost like buying the company for free,” says a fund manager.
In addition, the company’s long-term prospects appear bright with more than RM3 bil worth of on-going and future projects in the pipeline. Investors are also said to be waiting for the company to unlock some of its assets.
“We have got all these hidden jewels in the centre of mature developments which are ready to launch at any time.
“With our available cash, we will probably look at bigger land acquisitions to develop townships,” chief financial officer Wong Keet Loy tells FocusM.
As of end-June, the company had cash and short-term funds of RM533.6 mil, while total borrowings stood at RM83.1 mil.
They had some of the land applications pending approval for developement but have all just been approved so no more delays on construction at there new projects. This translates to good quarters ahead !
From lastest quarterly report, there is about 100mil of ICULS remain in the market that wait to me convert to mother share, if add in all the ICULS, total mother share should be about 1.2billion.
As per the current issue of Focus Malaysia, L&G also intends to spend about RM20 mil to re-align or divert the existing TNB high tension cables in order to re-develop its existing 14.5ha freehold land upon which the present Sri Damansara Club is sitting. The land now carries an amazing low book value of RM3.8 mil for 14.5ha or RM2.40 psf. The land shall be developed into a mixed development with a GDV of RM2.4 billion!
The Shah Alam land to be acquired will be generating another GDV of RM1.2 billion with mostly landed properties. The Sena Parc in Tuanku Jaafar Golf & Country Club in Negri Sembilan will have a total GDV of RM600 mil predominantly again with landed properties.
So the prospect is indeed bright in the next 2 years if the management team runs faster and works harder. If this company is led by Eco World or Hua Yang management team, its share price would have hit RM1 and above long time ago.
as i always said, next few years this company will do better. The Sri Damansara Club land is super undervalued. I think its ok for them to delay their launches, property market is not doing well right now, not good to launch too many at once.
L&G management is a bit careful in business if compare to EcoWorld / Hua Yang. L&G is more conservative which is good to shareholders. If you are valueinvestor, you should support L&G management given current uncertainty market. Its cash per share or 40 sen is more than enough to support any downside. Target : 60sen (before revaluation). Its upside is much more than downside currently.
Hi Drakoryn, this cts is not a speculative type so if u buy u have to wait for it to move. Waiting need patient. So if u r not a patient type this stock is not suitable .On the early morning,8/9/2016 00.52 , I made a comment after looking at the chart, showing buy signal with increasing volumes. Share prices change in minutes , in hourly , daily etc. So I comment base on indicators. In share market they r bull, bear,false bull n false bear etc' Today maybe false bear,tomolo bull or vice versa , just a matter 1 day different . My comment is not construe a buy /sell call. Buy or sell is at your own risk.'
1) you first say that this counter is not speculative type and have to wait long term 2) you started looking at short term technical indicators which is essentially speculative
well i'm interested to know what indicators you are looking at. As it seems you are looking at short term indicators but also say this stock need to wait long term and be patient. Just trying to clarify what you are saying.
I am not good at charts. I only look at RSI..either oversold or overbought scenario. By chance I started looking at this counter n its financial indicators. Should say impressive. Low gearing and equity at RM714 M. total borrowing only RM84 M against short term deposit and cash in bank of 532M. Now is cum dividend which works out to 5%. better than bank rate. So no need to ask many Q, just masuk la.
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....
i3i77
32 posts
Posted by i3i77 > 2016-08-30 09:59 | Report Abuse
manipulator is accumulating at cheaper price now.