TP depends on your time frame.. If ur an investor that don't mind to wait 6months to 1 year, it could be at 80-100cents in 12 months..
There is a lot of growth potential, especially from 4th q onwards. Repeat Rental income from hohup tower and some units they own from Aurora place. KK The Crown residence project, which the cheapest two types of units already sold out. KK The Crown hotel, completing in 2021. Which HH owns, again another repeat income Johor kulai there's a big land/city that HH is developing.
Also in bukit jalil they will launch condo again
Personally, I'm already invested in HH earlier, and I will continue to buy monthly with my salary more n more HH shares. Anything below 50cents is a no brainier to me.. but you need to be able to wait until the 6th month..
Well, got a senior management bought in some shares at 30c... Really dunno who is selling at this price.. confirm lose money 99 to sell now.. don't understand.. except maybe force sell
PE is less than 5, EPS & ROE also look good...net assets per share 95sen.... dividend policy must be created, then i believe the share price will rise a lot
HOHUP Financial Information
Market Capital (RM)
: 125.59m
Number of Share
: 374.89m
EPS (cent)
: 8.21 *
P/E Ratio
: 4.08
ROE (%)
: 8.64
Dividend (cent)
: 0.000
Dividend Yield (%)
: 0.00
Dividend Policy (%)
: 0
NTA (RM)
: 0.950
Par Value (RM)
: 1.000
* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.
Now, Pavilion Bukit Jalil also hampir siap kan? :)
Ho Hup's Bukit Jalil Play
Developer to build on mixed development project’s success
PETALING JAYA: Small cap construction and property developer Ho Hup Construction Company Bhd will leverage on its Bukit Jalil mixed integrated development of 7.2 acres where sales so far on its first five acres have been a success.
Known as Aurora Place, the five-acre plot comprises shop offices, retail floors and SoVo (small offices, versatile offices). It will retain its 18-storey office block for recurring income. The project is fully sold.
Chief executive officer Derek Wong Kit-Leong said the company would launch projects on its second parcel next year. Ho Hup has about 10 acres on a gross level and about 7 acres after making adjustments for infrastructure with a combined gross development value (GDV) estimated at more than RM1bil.
Its 10 acres is part of the 60 acres held by its subsidiary Bukit Jalil Development Sdn Bhd (BJD).
The other 50 acres would be developed under a joint development agreement between BJD and Pioneer Haven Sdn Bhd, a subsidiary of Malton Bhd.
Wong said going forward, the success of Aurora Place and its joint development with Malton would help build up its cash position. Ho Hup would be entitled to 18% of the GDV ranging from RM4bil to RM4.5bil for the 50-acre project.
The company has been building up its revenue and profit the last couple of years under Wong’s leadership.
The company officially made an exit from its PN17 status - which denotes distressed companies - last year. It was under PN17 status since 2008.
Moving forward, Wong describes the company as being in a fairly comfortable position and was voted as the top five among 30 small cap jewels in 2015 by RHB Investment Bank.
“We are basically leveraging from the money which is going to come in from the 50 plus 10 acres, which is between RM90mil and RM100mil annually for the next seven to eight years,” said Wong.
He said the company plans to put aside between RM300mil and RM400mil for the next two years to increase its land bank in the Klang Valley, Penang and Kota Kinabalu in Sabah. It is interested to build more hybrid development the likes of Aurora Place.
Wong said the company would like to increase its after tax profit of about RM65mil last year by between 20% and 25% a year.
Ho Hup has two core businesses, property development and construction with property development contributing 80% to profit and the remaining 20% from construction although on a revenue level, contribution from both are about equal.
The company has unbilled sales of about RM576.9mil, of which RM275.4mil are from its Bukit Jalil development and the remaining RM301.5mil from its construction projects.
Aurora Place has been fully taken up with unbilled sales of RM275.4mil as at the end of Febuary 2015.
It would retain an 18-storey office block for recurring income.
KUALA LUMPUR (June 29): Ho Hup Group has launched The Crown Service Suites in Kota Kinabalu carrying a GDV of RM590 million.
The Crown is a seafront development that consists of 323 suites.
The 323 suites would be luxuriously furnished and ideal for those seeking to invest or live in high-end properties in strategic gateway destinations such as Kota Kinabalu, said Ho Hup Group CEO Datuk Derek Wong Kit Leong in a statement today.
The suites come with a dual-key feature and is also is suitable for short lets in Kota Kinabalu, said the developer.
“Kota Kinabalu is the second busiest airport after Kuala Lumpur International Airport. It has registered fast growing tourist traffic from all over the world, especially from over Southeast Asia, China, South Korea and Japan. These visitors, heading to Sabah’s famed holiday destinations, always make Kota Kinabalu their first and last stop. And they are increasingly seeking high-quality, even luxurious accommodation. This is where we see The Crown filling a growing need,” said Wong.
Unit built-ups range from 715 sq ft to 1,848 sq ft, with selling price starting from RM654,000 to RM2.25 million.
Ho Hup is also building the 376-room five-star Crowne Plaza Hotel which is to be managed by InterContinental Hotels Group IHG, adjacent to The Crown. The hotel is slated for completion in 2021.
KUALA LUMPUR: Construction and property development player Ho Hup Construction Co Bhd is expecting profit growth to accelerate in the financial year ending Dec 31, 2019 (FY19), given better earnings visibility from its RM1.8 billion property project launches.
“We do not expect significant profit contribution from the new launches in FY18, but we are expecting this year (FY18) to be more robust than FY17 as earnings will still come from our current Aurora Place in Bukit Jalil and we might see some recognition of income from our recently soft-launched Kota Kinabalu project.
“The remaining of 2018 and 2019 will be busy years for us with the final stage completion work [for Aurora Place] and our property project launches [worth about RM1.8 billion] towards the year-end after we have deliberately delayed it over few years,” chief executive officer (CEO) Datuk Derek Wong Kit Leong told The Edge Financial Daily.
Ho Hup’s net profit fell 30.3% to RM8.64 million in the first quarter ended March 31, 2018 (1QFY18), from RM12.39 million a year ago, although quarterly revenue climbed by 64.6% to RM58.49 million, against RM35.54 million a year ago.
In FY17, Ho Hup’s net profit fell 38.4% to RM40.54 million, from RM65.79 million a year ago; while revenue contracted 25.6% to RM179.68 million from RM241.37 million.
The group has started recognising contribution from its joint venture (JV) project with Malton Bhd, dubbed Bukit Jalil City, where Aurora Place and Aurora small offices and versatile offices (Sovo) are located. Ho Hup is entitled to 18% of the sale of development properties from this project.
Launched in 2012, Aurora Place comprises three-, four- and five-storey shop offices and retail floors. Sovo, which was launched in 2013, comprises 209 units of flexible office suites for lifestyle and work purposes, above the three-storey shop offices of the Aurora Place.
“Our properties are all suitably located where the demand is there. Definitely, the main impact will be next year as you will see the fruitful [contribution] from the new project launches that we will do in Kota Kinabalu, Kulai, and Bukit Jalil,” he added.
The launches — worth a total gross development value (GDV) of RM1.8 billion — include the first phase of Laman Iskandaria in Kulai, Johor comprising shops and houses with GDV of RM500 million, a high-end service apartment in Bukit Jalil sitting on a 2.8-acre (1.13ha) piece of land (GDV of RM500 million) as well as Crown Service Suites and Crowne Plaza Hotel in Kota Kinabalu (GDV RM800 million).
Wong said Laman Iskandaria township development will be launched between August and September this year, while the group is in the midst of handing over the keys to buyers of Aurora Place.
“This (Laman Iskandaria) will be our maiden flagship development and it is currently under construction. Now, we are in the midst of handing over the keys to Aurora Place buyers and followed by Sovo [buyers]” he said.
Last month, Ho Hup soft launched its mixed-development project in Kota Kinabalu — the 323-unit Crown Service Suites and 376-room five-star Crowne Plaza Hotel, which saw a take-up rate of about 30% based on bookings received.
Wong said the Crowne Plaza Hotel will be managed by InterContinental Hotels Group and slated for completion in 2021.
“We will focus on Kota Kinabalu and we are confident that the take-up rate will reach up to 70% by the end of the year,” said Ho Hup chief financial officer Lee Heng Aun, looking at Sabah’s tourism as the main key catalyst.
At the same time, Wong said the group will continue to look for suitable pieces of land for development.
“I think we have not been actively looking but we plan to start now around the Klang Valley area if the price is right,” he shared, adding that currently, the group’s total land bank stood at about 500 acres.
Besides property development, Ho Hup which is involved in construction and supply of building material, foresees the Kuala Lumpur-Singapore high-speed rail (HSR) project as a bonus to the group, if the new government chooses to proceed with the project. This is because it has experience with government-related jobs, having been involved in the construction of the Petronas Twin Towers, National Sports Complex, Kuala Lumpur International Airport (KLIA), and the Light Rail Transit System (LRT), among others.
“If it (HSR) does happen it will be a bonus to us but if it doesn’t then we will be slightly affected compared to other companies because our quarry is near to the HSR and we are more into a smaller-ticket project rather than a big-ticket project,” he said.
Prime Minister Tun Dr Mahathir Mohamad has said that Malaysia would negotiate for a deferment of the HSR project with Singapore so as to avoid paying compensation under an earlier plan to scrap it.
Ho Hup has three business divisions, namely property, which contributed about 70% of the group’s revenue, construction (20%) and building materials (10%).
Sure jadi HSR, no money to pay compensation to spore like ecrl to China :)
“If it (HSR) does happen it will be a bonus to us but if it doesn’t then we will be slightly affected compared to other companies because our quarry is near to the HSR and we are more into a smaller-ticket project rather than a big-ticket project,” he said.
Prime Minister Tun Dr Mahathir Mohamad has said that Malaysia would negotiate for a deferment of the HSR project with Singapore so as to avoid paying compensation under an earlier plan to scrap it.
Mr Khaw said there will be no further postponement beyond May 31, 2020.
"If Malaysia does not proceed with the HSR project by then, the project will be deemed to have been terminated by Malaysia, which will reimburse Singapore for the project implementation costs incurred by us up to the point of suspension," he said.
Besides property development, Ho Hup which is involved in construction and supply of building material, foresees the Kuala Lumpur-Singapore high-speed rail (HSR) project as a bonus to the group, if the new government chooses to proceed with the project. This is because it has experience with government-related jobs, having been involved in the construction of the Petronas Twin Towers, National Sports Complex, Kuala Lumpur International Airport (KLIA), and the Light Rail Transit System (LRT), among others.
“If it (HSR) does happen it will be a bonus to us but if it doesn’t then we will be slightly affected compared to other companies because our quarry is near to the HSR and we are more into a smaller-ticket project rather than a big-ticket project,” he said.
Prime Minister Tun Dr Mahathir Mohamad has said that Malaysia would negotiate for a deferment of the HSR project with Singapore so as to avoid paying compensation under an earlier plan to scrap it.
Mr Khaw said there will be no further postponement beyond May 31, 2020.
"If Malaysia does not proceed with the HSR project by then, the project will be deemed to have been terminated by Malaysia, which will reimburse Singapore for the project implementation costs incurred by us up to the point of suspension," he said.
As a developing country, construction is ongoing and unavoidable:)
Construction sector poised to post mini rebound: Analysts WAN ILAIKA / 06 JAN 2019 / 22:25 H. Construction sector poised to post mini rebound: Analysts File picture of work in progress on the Simpang Nyabau-Simpang Bakun stretch of the Pan Borneo Highway. BERNAMAPIX PETALING JAYA: Most analysts are optimistic on the prospects of the construction sector this year, saying it is set for a “mini rebound” given the clarity on the sector moving forward and anticipation that the government would give the green light to resume some on-hold projects.
Last week, Prime Minister Tun Dr Mahathir Mohamad was quoted as saying that the East Coast Rail Link (ECRL) project could resume on a smaller scale if China agrees. The project was terminated last July.
The construction industry took a severe beating last year and the KL Construction Index fell almost 50% following the review of major infrastructure projects after the 14th general election (GE14).
Construction counters have declined between 25% and 60% since the May 9 election, with most of the stocks currently trading well below their fundamentally assessed trough valuations.
Rakuten Trade Sdn Bhd vice-president of research Vincent Lau told SunBiz that the current trough valuation may spring a surprise on the upside as the previously suspended projects could come back on stream, albeit on reduced contract value as the government seeks to be prudent in development spending.
MIDF Research analyst Muhammad Danial Abd Razak said that despite the cancellation and deferment of mega projects such as the high-speed rail (HSR) and the ECRL, the anticipated drag to the sector was less than initially thought.
While reviews of certain mega projects have put a strain on sentiment,
Muhammad Danial believes that the sector’s long-term outlook will be driven by sustainable measures.
“We are encouraged to see that meaningful allocations were secured, giving reasonable attention to residential, non-residential, social amenities and infrastructure developments.
“We expect construction works mainly for Mass Rapid Transit 2 (MRT2), Light Rail Transit 3 (LRT3) and Pan Borneo Highway (PBH) to pick up pace soon following the green light granted by the government to complete the projects,” he added.
Additionally, he said, in reference to Budget 2019, the amount of development expenditure spent at about RM50 billion was significant, which denotes positive sign on the near-term developments for the construction sector.
Despite significant cost reductions for both MRT2 and LRT3, the combined contract amount was still significant at RM41.5 billion, providing earnings visibility beyond calendar year 2020, he added.
Moving forward, Muhammad Danial sees the recovery in investors’ sentiment will be heavily weighted by the development potential in East Malaysia, but the pending implementation of mega projects especially in Sarawak will likely provide a boost on the state’s construction outlook.
The potential rollout of Sarawak infrastructure packages includes the coastal road, the second trunk road and the state’s water grid projects worth RM9.1 billion.
“Despite the near-term directional swing, we see the headroom is still ample for the sector to grow. This was mainly a recognition of stable development expenditure allocation in Budget 2019, continuation of mega projects such as LRT3, MRT2 and PBH, and pending implementation of infrastructure projects,” he noted.
Ho Hup Construction Co Bhd is a construction company. The principal activities of the company are those of investment holding, foundation engineering, civil engineering, building contracting works and the provision of management services for subsidiary companies. Its division includes construction, property development, manufacturing, and trading, international. Geographically, the company operates its business in various countries like Malaysia, Iraq, Myanmar. However, it derives most of the income from Malaysia.
Retained earnings = RM178mil++ as at 30/9/2018... eligible to pay dividend... ESOS for staff at 70sen++ Hope to see dividend policy and dividend for shareholders soon :)
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....
TheGodHoudini
35 posts
Posted by TheGodHoudini > 2018-08-23 17:49 | Report Abuse
When is it coming? Or masuk longkang