kelvin..if I have info and tell you, then this is insider trading. Illegal. However, let's guess and speculate. If Ho Hup has the same accounting policy as Malton, then my guess is that next qtr should be pretty decent. I have no idea whatsoever how Ho Hup recognise its revenue on the BJ land but these are facts in Malton's annual report to 30.06.2017. Land cost for BJ recognised progressively is RM394.4M and RM274.8(2016 : RMNil) is payable to BJDSB(meaning RM119.6M paid). Of that RM274.8M due, RM104.8M is due within next 12 months.
(Note : That RM119.6M paid most likely did not have any substantial cash inflow to HoHup as this is partly offset against the settlement of various HoHup's borrowings by Malton and also contra against completed properties sold to HoHup for RM34M)
HoHup's books, based on QR and previously AR announcements, approx RM136M had been recognised as revenue from the BJ JV.
Simply put,up to 30.06.2017 Malton says due to you is RM394.4M but HoHup says due to me is RM136M. More interestingly, Malton is also saying I'll be paying you RM104.8M within the next 12 months.
You draw own conclusions when HoHup is going to recognise that RM258M revenue(RM394.4-RM136).BTW the profit margin for HoHup is quite high as land cost was very low
Jedimaster so will there be new invester coming on board to join the co. With the price keep dropping slowly really dont know coming qtr result is infect ok
Malton deliver very poor result, if without compensation RM 50m from Ecoworld (incur HIGH tax, net proceed only about about RM 25m), malton only deliver about 2.5m net profit. Hohup profit sharing 18% may be even lower.
Hope, hohup own property development and construction can cushion upcoming q result.
Tricky counter. Market penalizing property counters and construction stocks are also getting hit despite infrastructure theme.
The question we need to ask is if there so much jobs / potential business opportunity why havent they called for the RI yet when its approved ? Everyone knows they are borrowed to the max and just becoz 'a few substantial shareholders' had a higher than preferred entry price, they dont want to sell too cheap ?
Discounting this Malton JV profits, what is the residue value of this company and mgmt ? You should think about this coz like many companies who will receive large cash payments ( or in kind ), they are most likely not going to give you a cash dividend and invest it into something that you might not agree as a shareholder
when they called off the RI that was a good thing and indicate they are capable to handle the current borrowing thats why the share went up for a while. The Malton JV profit is a big thing for a relative small counter like HH . I believe they will do well once more money is coimming from the JV and their own projects
Posted by kelvin17 > Nov 22, 2017 09:47 AM | Report Abuse
when they called off the RI that was a good thing and indicate they are capable to handle the current borrowing thats why the share went up for a while. The Malton JV profit is a big thing for a relative small counter like HH . I believe they will do well once more money is coimming from the JV and their own projects
HO HUP IS NOT A GROWING COMPANY LA...PROPERTY SECTOR IS STAGNANT..how to play..just look at the taigo like ECOWORLD AND SPSETIA
both also got profit kau kau..but stagnant stock price..whole sector is suffering from same thing
ho hup also got management issue and yes..their bukit jalil jv with malton..super big project in pavillion 2
but lets be real la..all shopping mall in kl is saturated and slow dy...can you really expect them to make money in this quiet environment...
besides..even if they do..THEY ARE NOT A GROWING COMPANY. Investors buy into future expansion of company...be bigger and earn more..
NOT MAKE ONE TIME BIG MONEY...unless you tell me they able to give more dividend year after year..then yes ..price will move abit la..
There wouldnt be a rise in stock market before public election. The dirt gov has no fund to pump up ady. The big sharks won't care small fish benefit and keep press down price to trap ppl money. The decision is yours to buy, hold or sell.
Under the joint-development deal, Malton will bear the entire development cost, while Ho Hup provides the land and is entitled to 18% of the estimated GDV of RM3.4 billion. The project comprises a shopping complex, shop offices, office tower, service apartments and a hotel. This alone will translate into RM612 mil cash flow for Ho Hup from the JV.
Asset wise, the land that hohup owns will only become more n more valuable. Just wait for the sales gets recognized n the profit starts to show...will see this gem shine and move towards RM1
Wait for the profit sharing keep coming in steadily... Anyway the counter should be worth much more than this due to the prospects it has with its assets..
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....
kelvin17
565 posts
Posted by kelvin17 > 2017-11-01 18:06 | Report Abuse
James tq for the info hope we can make some real money in ho hup