most likely, exsim would offer MGO for Hohup... RM110mil for a piece of land of Hohup, exsim is cash rich and profitable, acquire hohup has synergy, construction arm is strong and also its existing investment properties in bukit jalil e.g. aurora place bukit jalil, wisma ho hup bukit jalil, etc.
www.businesstoday.com.my › 2024/05/06 › ho-hup-disposes-itsHo Hup Disposes Its Bukit Jalil Land To Exsim For RM110 Million 1 day ago · The agreement is for the proposed disposal of a parcel of freehold commercial development land that measures 12,492 square metres (equivalent to approximately 134,463
Ho Hup Construction Company Bhd and Exsim Development Sdn Bhd have entered into a significant business transaction that demonstrates their strategic synergy.
Ho Hup, through its wholly-owned subsidiary Bukit Jalil Development Sdn Bhd (BJD), has decided to sell a 3.09-acre land parcel in Bukit Jalil for RM110 million in cash24. This land was initially designated for the Flex project, a RM1 billion mixed development project. The project was planned to consist of two tower blocks housing small office-versatile office (SOVO) units, a hotel, and serviced apartments atop an eight-storey podium with retail spaces.
The buyer is Exsim Persiaran Jalil Sdn Bhd, a wholly-owned subsidiary of Exsim Development. As part of the deal, Exsim Persiaran Jalil will absorb BJD’s outstanding development charges, totaling RM10.6 million.
The primary aim of this decision by Ho Hup is to bolster the company’s financial position. Ho Hup plans to allocate RM80 million from the sale to debt reduction, after earmarking portions of the proceeds for bank loan repayments, purchaser refunds, and payments to consultants and contractors.
This strategic manoeuvre is expected to improve Ho Hup’s liquidity and shore up its financial standing, especially with the Flex project already underway and significant capital needs ahead. The company expects this move to lower its gearing ratio from 1.49 times to 1.31 times.
In consideration of the proposed disposal, Exsim Persiaran Jalil intends to suspend the existing Flex project and terminate all contracts with the existing consultants and contractor, as well as the existing end purchasers. This move demonstrates Exsim’s strategic flexibility and adaptability in managing its property portfolio.
In summary, this transaction between Ho Hup and Exsim represents a strategic synergy where both parties stand to benefit. Ho Hup can improve its financial position, while Exsim acquires a valuable land asset for future development
let’s look at the property projects of Ho Hup and Exsim in Bukit Jalil and Kota Kinabalu.
Ho Hup in Bukit Jalil: Ho Hup’s significant project in Bukit Jalil was the Flex project. This RM1 billion mixed development project was planned to consist of two tower blocks housing small office-versatile office (SOVO) units, a hotel, and serviced apartments atop an eight-storey podium with retail spaces. However, Ho Hup decided to sell the land for this project to bolster its financial position.
Exsim in Bukit Jalil: Exsim has two notable projects in Bukit Jalil, namely The Rosewoodz and The Kingswoodz. The Rosewoodz is a bold, statement-making structure that elevates the neighbourhood’s visual landscape. The Kingswoodz offers modern luxury residences where convenience, connectivity, and comfort converge.
Ho Hup in Kota Kinabalu: Ho Hup’s notable project in Kota Kinabalu is The Crown Service Suites. This seafront development consists of 323 suites. The suites come with a dual-key feature and are suitable for short lets in Kota Kinabalu. The units range from 1,360 sq ft to 1,986 sq ft and are priced between RM1.26 million and RM2.43 million4.
Exsim in Kota Kinabalu: Exsim, through its subsidiary BEDI Development Sdn Bhd, has entered into a joint venture agreement with Suria Capital for the development of two parcels of prime land within the Kota Kinabalu Port area5. The details of the projects to be developed on these lands are not specified5.
In summary, both Ho Hup and Exsim have undertaken significant property projects in Bukit Jalil and Kota Kinabalu, demonstrating their commitment to developing high-quality residences and commercial spaces in these areas. Their projects reflect a focus on modern luxury, convenience, and strategic location, catering to a variety of lifestyle and investment needs.
Posted by Good123 > 5 hours ago | Report Abuse Ho hup has restructured and degeared. Only holds ~25% of a property development project in johor, and 100% of a kk project now which had sold 70%++ todate. Refocus on construction sector, its forte. Maybe, reduce headcount like Tesla is on the way due to degearing & restructuring, etc. Quite positive with its future and good valuation now, p/b < 0.25. Value buy.
Exsim might offer to acquire ho hup at fire sale price now. hehe
The construction division of Ho Hup Construction Company Berhad and Exsim Development Sdn Bhd can potentially create a synergistic relationship due to their complementary strengths and capabilities.
Ho Hup’s Construction Division: Ho Hup Construction Company Berhad has a long history and vast experience in the construction sector. It has successfully completed numerous international projects through its subsidiaries in India, Madagascar, Mauritius, China, South Africa, Thailand, and Indonesia. Locally, Ho Hup has completed numerous projects from both the private and government sectors for high-rise intelligent buildings, stadiums, airports, highway & bridges, railways & light rapid transit, off shore marine works, oil & gas works, commercial building development, deep foundation works, and many more. Ho Hup is known for its comprehensive fleet of light and heavy modern construction equipment. It has a strong reputation for its involvement in national projects such as the Petronas Twin Towers, National Sports Complex, Kuala Lumpur International Airport (KLIA), Light Rail Transit System (LRT), Malaysia –Singapore second crossing, and major highways.
Exsim’s Construction Division: Exsim Group is known for developing property with an emphasis on environmental awareness and New Age Ingenuity. It has a portfolio that ranges from industrial to residential projects. Exsim is committed to creating buildings with a specific character that exemplifies innovative green features.
Potential Synergy: The synergy between Ho Hup and Exsim could be realized in several ways:
Experience and Expertise: Ho Hup’s extensive experience and expertise in large-scale construction projects could provide valuable insights and technical know-how to Exsim’s projects. This could potentially enhance the quality and efficiency of Exsim’s construction processes. Resource Sharing: The two companies could potentially share resources such as construction equipment and manpower. This could lead to cost savings and improved operational efficiency. Risk Management: Ho Hup’s experience in managing risks associated with large-scale projects could be beneficial to Exsim. This could help Exsim to better manage the risks associated with its projects. Innovation and Sustainability: Exsim’s focus on environmental awareness and innovative construction methods could inspire Ho Hup to incorporate more sustainable practices in its projects. This could enhance the environmental performance of Ho Hup’s projects and contribute to its corporate social responsibility goals. In conclusion, the construction divisions of Ho Hup and Exsim could potentially create a synergistic relationship that enhances their capabilities, improves efficiency, and contributes to their sustainability goals
Hohup, Share Issued 518.260m Market Cap RM64.782m (less than RM65mil)
Good for exsim to acquire it cheaply now :)
EXSIM Company Background Environmental awareness is an important philosophy that we hold close to our hearts. Our portfolio expanse ranges from industrial to residential projects and while constantly developing, we are also equally intensifying our efforts to create buildings with a specific character which exemplifies innovative green features.
Our current series of residential developments carry distinct significance based on the eco-friendly emphasis we have carefully placed on them. We started our first four projects under the Nouvelle banner and gradually grew our property arm into becoming residential developers.
Our maiden residential development – The Treez, was recognized for its unique green features which awarded us the title, ‘First Green Residential Building’ in Southern Kuala Lumpur. By meeting Malaysia’s Green Building Index’s standard, we constantly ensure that our progressive growth is always aligned with our philosophy of creating a sustainable environment for the future.
Besides establishing ourselves as property developer, we have also extended our business into scheduled waste management. Our sister company, Pentas Flora Sdn Bhd is a comprehensive scheduled waste management company that operates to produce recycled fuel oil for industrial uses.
New Age Ingenuity At EXSIM Group, every venture we undertake utilises technology in an intelligent and organic manner for the advancement of mankind.
Being born in the age of technology is definitely a marvellous blessing. Today, technology is already a vital component in many aspects of our lives. It has made a prominent entrance into our lives and has undoubtedly proven its existence to loom and boom for consistent advancement.
We delve through the depth of mankind’s accumulated brilliance and ingenuity to address the issues that buildings have to contend with, while carefully preserving a precious gift which no amount of technology can supersede– Mother Nature’s masterpiece.
We initiated our portfolio in property development with commercial and industrial projects in Kota Damansara. The overwhelming response from buyers is a testament to how we are revolutionising the property industry landscape. By constantly raising our ingenuity, we certainly believe that our well-thought-of projects can and will be of the new age excellence while sustaining our environment at the same time.
So come with us and take one step into the future and at the same time, a step back to nature.
so many valuable assets inside hohup... 13sen super cheap.. NTA 66sen.. sell a piece of land je fetched RM110mil.. current market cap just ~Rm65mil.. hehe
total shares~518mil .. say offer price 20sen... =RM100mil++ lebih murah drp satu keping tanah haha jika 40sen ~RM200mil ++ tapi masih jauh lebih rendah drp nilai NTA... period
bukit jalil is suitable for data centre, same area with teknologi park bukit jalil haha Business council says more Chinese companies are looking to set up data centres in Malaysia NST Tue, May 07, 2024 12:28pm - 3 hours
KUALA LUMPUR: More Chinese companies are expected to set up data centres in Malaysia in the next five years, said Malaysia-China Business Council.
Malaysia-China Business Council executive/director (acting) Datuk Alvin Tee said the council is seeing interest from Chinese companies to set up data centres in Malaysia, particularly in places like Cyberjaya.
He said Malaysia's strong IT infrastructure and a skilled workforce, makes it an attractive destination for digital investments.
"There is also interest in the semiconductor sector due to the ongoing US-China trade tensions, but it's important for us to ensure that any investments contribute positively to our GDP and don't just rely on cheap labour or materials.Instead of just focusing on trade surplus numbers, we should consider things like knowledge and technology transfer, as well as people-to-people connections, which have improved a lot over the past 50 years," he said.
"So, while there's definitely interest from China, it's crucial for our government to monitor and manage these investments to ensure long-term benefits for our economy," Alvin told reporters on the sideline of the Malaysia-China Commemorative Forum here today.
Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir said China has been Malaysia's largest trading partner for the past 15 years.
In 2023, total trade between our nations reached US$98.80 billion(RM450.84 billion), with imports from China accounting for USD56.69 billion (RM258.63 billion).
These imports primarily include electricaland electronics products, machinery, and chemicals, he said.
Nobody wanted to dump their shares, offer price or market price would rise again. Of any group wanted to acquire shares to control/acquire, they must pay well
look like maybe one of the hohup holder passed >3million share at around 13sen to syndicate for goreng so hold thigh and buy more if syndicate push down <13sen
Wait for mgo, mbo, etc etc... Ho hup , an easy takeover target, super valuation with rm160mil++ retained earnings..easy to pay dividend, share buy back as n when free cash is available
A nice balance sheet/financial position with retained earnings RM162mil+++
HO HUP CONSTRUCTION COMPANY BERHAD 197301000497 (14034-W) CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION For the financial year ended 31 December 2023 (The figures have not been audited) 3 31 Dec 2023 31 Dec 2022 RM'000 RM'000 (Unaudited) (Audited) ASSETS Non-Current Assets Property, plant and equipment 18,061 203,647 Right-of-use assets 20,243 25,842 Investment properties 135,713 138,837 Intangible assets 39 39 Goodwill 898 11,378 Quarrying rights 502 616 Inventories and other contract costs 83,260 83,260 Investment in joint ventures 567 367 Quarry development costs 3,303 4,346 Other Investment- 2,063 Deferred tax assets 542 684 263,128 471,079 Current Assets Inventories and other contract costs 510,423 538,757 Contract assets 94,914 141,607 Trade receivables 181,699 202,419 Other receivables 141,809 138,786 Amount due from a joint venture 99 99 Tax recoverable 49 162 Fixed deposits with licensed banks 7,510 11,602 Cash and bank balances 13,238 19,131 949,741 1,052,563 TOTAL ASSETS 1,212,869 1,523,642 EQUITY AND LIABILITIES Equity attributable to owners of the parent Ordinary share capital 263,169 256,870 Other reserves (77,104) (77,104) Foreign currency translation reserve (2,145) (2,091) Retained Earnings 159,401 234,443 343,321 412,118 Non-Controling Interest 3,555 7,584 Total Equity 346,876 419,702 Non-Current Liabilities Lease Liabilities 4,543 5,389 Borrowings 316,226 388,805 Deferred tax liabilities 13,347 19,166 334,116 413,360 Current Liabilities Contract liabilities- 20,457 Borrowings 191,890 261,896 Trade payables 111,572 139,385 Other payables 162,466 192,565 Lease liabilities 4,970 9,945 Provision for taxation 60,979 66,332 531,877 690,580 TOTAL LIABILITIES 865,993 1,103,940 TOTAL EQUITY AND LIABILITIES 1,212,869 1,523,642 Net assets per share attributable to equity holders of the parent (RM) 0.66 0.83 The Condensed Consolidated Statements of Financial Position should be read in conjunction with the Annual Financial Statements for the year ended 31 December 2022 and the accompanying explanatory notes attached to the interim financial statements.
Menurut MIDF Research, berbanding dengan rakan setaranya yang lain, hanya NIKKEI Jepun telah mengatasi prestasi dengan peningkatan sebanyak +16.0%. #AWANInews #AWANI745
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KK project 70% ++ sold project value ~RM600mil... surely gain... another ~25% in Johor.. also a booming state... ho hup is steady now... retained earnings RM162 million++ ada free cash flow boleh bayar dividend or buat share buyback
I think, it would end up being taken over by another group. wait n see
PETALING JAYA: Disunity among family members has cost the founding shareholders of Ho Hup Construction Co Bhd and Kian Joo Can Factory Bhd (KJCF), two of the oldest names in their trade, a hefty price and on top of that, a deeper divide within the family.
Datuk Low Tuck Choy (TC), former managing director of Ho Hup, said he still talks to his younger brother Teik Kien (TK), but stated that it is difficult to just forget all that happened.
For unknown reasons, TK had associated himself with TC’s nemesis Datuk Vincent Lye during the tussle for control of Ho Hup a few years back, although he had abstained from voting TC out of the board. “How not to talk? He is still family.
But it’s difficult… the damage is already done [to the relationship],” said TC. Last week, Ho Hup finally gave up on a two-year fight with Malton Bhd over the joint development deal (JDA) of a 60 acres (24ha) prime tract in Bukit Jalil.
This closes a four-year episode that started with TC’s ouster from Ho Hup’s board in 2008; then his regaining board control in 2010 but only to fight over the JDA with Malton through a two-year legal tussle.
Malton had entered into the JDA with the Lye-led board that had included TK the day before TK and Lye were removed in a Ho Hup shareholders’ meeting on March 17, 2010.
“The four-year tussle put a lot of stress on Ho Hup. It wasted a lot of time in restructuring and finally the company has no choice but to share the land with Malton instead of developing it itself,” said a market observer.
While the Lows have at least regained control at Ho Hup, founded over 50 years ago by TC and TK’s father Low Chee, the founding See family of Kian Joo had unfortunately just lost control of the can manufacturer it founded 54 years ago.
Posted by Good123 > 25 minutes ago | Report Abuse MAYBE, HOHUP WILL BE ACQUIRED BY MALTON, WCT OR EXSIM ... WAIT N SEE
Dear Good123 just to ask... are u buying Ho Hup for the hope of taken over or merged or lead by other entities...? means current Ho Hup itself no hope...?
Hohup is fine whether acquired y others or remains as it is yah :)
xiaoeh
Posted by Good123 > 25 minutes ago | Report Abuse MAYBE, HOHUP WILL BE ACQUIRED BY MALTON, WCT OR EXSIM ... WAIT N SEE
@Dear Good123 just to ask... are u buying Ho Hup for the hope of taken over or merged or lead by other entities...? means current Ho Hup itself no hope...?
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....
Good123
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Posted by Good123 > 2024-05-07 12:24 | Report Abuse
most likely, exsim would offer MGO for Hohup... RM110mil for a piece of land of Hohup, exsim is cash rich and profitable, acquire hohup has synergy, construction arm is strong and also its existing investment properties in bukit jalil e.g. aurora place bukit jalil, wisma ho hup bukit jalil, etc.
www.businesstoday.com.my › 2024/05/06 › ho-hup-disposes-itsHo Hup Disposes Its Bukit Jalil Land To Exsim For RM110 Million
1 day ago · The agreement is for the proposed disposal of a parcel of freehold commercial development land that measures 12,492 square metres (equivalent to approximately 134,463