Today market very good and sold all. Waiting for another to enter. Happy trading. To be logic, can't back to 0.70 if can back to 0.75 then safe to enter as the SD will be 0.08!
When is the final special dividend promised to pay to shareholders upon disposal of the piece of land last year? As the FY 2020 has completed and submitted to SC, I don't see any good reason to delay any further or at least a specific time line needs to be mentioned. Remember, the interim dividend of 9.90 cents was paid but another 8.10 cents to make up the 18 cents agreed upon yet to be paid.
NAIM (5073) - The perfect play as the beneficiary of the coming Sarawak state election?! Strong fundamentals with a 10% dividend yield and RM2.61 NTA!
Political-linked Catalyst As we all know, the Sarawak election should have happened months ago. The Darurat was the reason why there is still no election held. Our minister KJ has said multiple times that Sarawak is given priority for Covid-19 vaccination.
State election is a war without smoke. And war needs money. The best way to get is via the capital market. Datuk Abdul Hamed Sepawi is a substantial shareholder in Naim who holds 6.5% of the stake in Naim. Datuk Abdul Hamed Sepawi is the cousin of former Sarawak chief minister Tun Abdul Taib Mahmud. Therefore, this undervalued political-linked counter is probably the best candidate to achieve the goal.
Valuation Catalyst Let us keep everything simple, all you need to know is the stake Naim holds in Dayang worth RM369.88 million as of now, and currently, Naim is holding RM342.09 million of cash. These 2 add together worth RM711.97 million and the current market cap of Naim as of now is RM398 million. A potential 78.88% of upside assuming its original business worth ZERO!
Naim just declared a dividend of RM0.08 per share. This translates into a WHOPPING yield of 10% based on market price of RM0.79 per share!!!
Some Financial Ratio P/E: 6.74 ROE: 4.41% Dividend Yield: 10.19% P/B: 0.30 (NTA RM2.61 per share) 5y CAGR PAT: 9.9
Business Catalyst 1: Naim could play a more prominent role at Dayang Naim holds 26.42% in Dayang Enterprise holding berhad. According to The Edge, Naim Holdings Berhad could start playing a more prominent role in the oil and gas firm. This is a double engine growth for Naim as this will benefit Naim’s Oil and Gas infrastructure business and Dayang business. Moreover, the recent spike in Brent oil price will also benefit Naim as well. If Naim could hold more stake in Dayang, we could see a strong recovery in earnings from Naim.
Bear in mind that Dayang has a market cap of around RM1.6 billion, Naim holding 26.42% of Dayang’s stake, this could translate into RM369.88 million. The current market cap of Naim is just RM398 million as of 12 July 2021.
Business Catalyst 2: Naim Holdings Berhad aiming to build 500 affordable homes in 2 years. The estimated gross development value (GDV) of RM185mil, these residential homes would be constructed in Kuching, Miri, and Bintulu where most of the Naim group’s land bank of about 1,560 acres are located. The group intends to kickstart part of the proposed development in the fourth quarter of 2021. You can refer to Lagenda Properties who are doing the same affordable home. News source: https://www.thestar.com.my/business/business-news/2020/10/12/NAIM-holdings-to-build-500-units-of-affordable-homes-in-2-years
Technical Analysis
Today the price gapped up and broke the resistance of RM0.775, forming a breakaway gap supported by volume. Although the price closed lower today (probably due to the weak sentiment of the market), it is still on the support line. If the price maintains at this level, we might see the price rally to challenge previous resistance of RM0.92 before breaking the previous high. Moreover, the price is trading above 10-day EMA, 20-day EMA and 50-day EMA, which indicates a short to midterm uptrend. The supports of Naim are RM0.72 and RM0.775, respectively. The resistances of it are RM0.82 and RM0.92, respectively.
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....
AllanTingAS
572 posts
Posted by AllanTingAS > 2021-03-10 22:35 | Report Abuse
Today market very good and sold all. Waiting for another to enter. Happy trading. To be logic, can't back to 0.70 if can back to 0.75 then safe to enter as the SD will be 0.08!