Posted by taciturn > 2014-12-22 23:21 | Report Abuse

Okay, I'm pretty sure I've answered this question before but here it is again.

@happyvic & @rlch: The reason the dividend paid is so small is that they're paying the minimum required (30% of annual net profit as per what they've stated in the IPO). They could have paid a higher dividend with retained earnings and committed to further share buybacks but they're seriously husbanding their resources because they know Tanjung Piai is going to be very capital intensive.

Yes, they're issuing RM200m in collateralised bonds, but that's a teardrop in the ocean when you consider the scale of reclamation involved.

If 1MYSOT had gotten off their butts and a deal was signed, it would have been a lot easier. However, Benalec intends to start reclaiming immediately once all approvals are met rather than to idle away whilst waiting for a buyer.

To put things into perspective, the cost of reclaiming one square foot in Tanjung Piai is conservatively estimated at RM45 per square foot. That's almost RM2m per acre. If you assume Benalec intends to reclaim at least 200 acres to start with, that's RM400m right there.

You've got RM200m coming in collateralised bonds, you have about RM50m in the bank at the moment (with a third being pledged). So you still need additional funds. Where's the money coming from? Of course the already announced land sales that are in the process of completion.

As an interesting tid bit during the AGM. Prior to this Benalec was reclaiming land at the rate of half an acre up to 1 acre a day.

The MD revealed that they're now reclaiming land at up to 3 acres a day. He inferred the bulk of it is for the RM235m job with Ultra Harmony. Why is this? Quite obviously, they're trying to expedite the completion of the sale as quickly possible to meet Tanjung Piai's requirements.

Things that may not be obvious but should be if you think logically:
1) They cash requirements for reclaiming the land is not required up front of course, but progressively. However, they will need a decent war chest pending signing a deal with an off taker for Tanjung Piai.
2) Obviously there's a risk, if no off taker appears and the world economy tanks plus oil prices go into another tailspin, it'll be tough. But logic dictates if that happens they'll slow down work on Tanjung Piai pending a recovery whilst living off earnings from the land sales already announced but not booked.

Caveat:
1) My assumption of 200 acres is not definitive of management's intentions. This is what I've heard in informal discussions. FYI, the term sheet with 1MYSOT specifies a size of about 1,000 acres.
2) The cost of reclamation at RM45 per square foot is based off older research reports that I've read. The figures could be higher or lower, bearing in mind that the price of diesel should be coming down (diesel is the second biggest component cost for reclamation after sand), however I have no idea what other costs aspects (i.e. sand) is like these days.

Oh and one final point which should be of interest to shareholders. Management also revealed that the DEIA submission for Pengerang is likely to happen next month.

Posted by rlch > 2014-12-23 03:22 | Report Abuse

Benalec: Tanjong Piai job delayed on client’s request
http://www.nst.com.my/node/65123

Posted by rlch > 2014-12-23 03:25 | Report Abuse

http://thesun-epaper.com/tue/23122014/index.html

Posted by allan88 > 2014-12-23 09:41 | Report Abuse

Thx taciturn for passing down the AGM info. I just hope benalec can proceed the project as what it committed. Any update of pengerang reclaim project?

Posted by jjwong > 2014-12-23 09:58 | Report Abuse

I saw in DOE website they only submitted Tanjung Piai DEIA to Department of Environment, Benalec didn't submit of pengerang reclaim project DEIA to Department of Environment.

http://www.doe.gov.my/portalv1/en/broadcast-info/announcement-picture/detailed-eia-report-proposed-development-of-an-integrated-petroleum-hub-and-maritime-industrial-park-including-reclamation-at-tanjung-piai-johor-malaysia-by-state-secretary-johor-incorporated-an/317385

Posted by taciturn > 2014-12-23 10:11 | Report Abuse

Evidently my English isn't very clear. As I stated above:

"Oh and one final point which should be of interest to shareholders. Management also revealed that the DEIA submission for Pengerang is likely to happen next month."

Confirmed with the MD about 20 minutes ago that the submission is expected to happen within 1 to 2 weeks.

Posted by allan88 > 2014-12-23 10:22 | Report Abuse

Sorry, I miss that last part. Good to hear that it is moving. Thx.

Posted by taciturn > 2014-12-23 11:03 | Report Abuse

@allan88: My clarification wasn't really directed at you but at jjwong. Cheers though.

Posted by taciturn > 2014-12-23 12:33 | Report Abuse

Resolution for the RM200m CB at EGM passed. Didn't see you asking any questions @where. Did you even attend?

Posted by Kukuman > 2014-12-23 13:31 | Report Abuse

You have been talking this damn story over and over again for so many months !

Posted by taciturn > Dec 23, 2014 10:11 AM | Report Abuse
Evidently my English isn't very clear. As I stated above:
"Oh and one final point which should be of interest to shareholders. Management also revealed that the DEIA submission for Pengerang is likely to happen next month."

Posted by Crowwy > 2014-12-23 13:36 | Report Abuse

RRruuunnnnn!!!! Oil going 40!!!

Posted by taciturn > 2014-12-23 13:44 | Report Abuse

kukuman: and you have been lying over and over again. I have _never_ given a deadline for the EIA before. I am telling you now what management tells me you miserable damned liar.

You are nothing more and nothing less than a lying piece of crap trying to spin things by claiming I have said certain things when I have _never_ done so.

Go sod off you piece of crap.

Posted by Vin Tan > 2014-12-23 15:30 | Report Abuse

Taciturn, you are doing a great service to this forum with your deep knowledge of the business. Do not be bothered or discouraged by remarks from those obviously having personal issues with the company.Matured investor should act rationally and to do that we need info, whether they are negative or positive.
Sometimes we make very bad decision based on the info we gather and suffer heavy loss. Well, we have to learn and go on . No point blaming others or our investing target , and cry like a boy.

Posted by Vin Tan > 2014-12-23 15:38 | Report Abuse

Oil price going 40? most if not all of the shale producers in US are long gone by then, taking into consideration that many of them produce oil on borrowed monies

Posted by Kukuman > 2014-12-23 15:41 | Report Abuse

Exactly ! No deadline given. You have been selling this damn story over and over again for so many months !

Posted by Kukuman > 2014-12-23 15:49 | Report Abuse

Exactly ! No deadline given. You and your gang have been selling this damn story over and over again for so many months !

Posted by savvyone > Apr 25, 2014 11:30 AM | Report Abuse
taciturn, tshwong & samsung555, I checked with my source this morning and was told that EIA approval is well advanced and on track. He had assumed EIA to have been approved because the company is currently mobilising its resources for starting reclamation work in Tanjong Piai. He further said that the Terms of Reference (TOR) for the EIA process has been approved for some time now and should be posted on the DOE website anytime soon, if it has not been posted already. As always, I will try to share accurate information as far as possible, but the caveat is that there is no guarantee. So, please be guided accordingly.

Posted by taciturn > Apr 23, 2014 10:55 AM | Report Abuse
I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. (Kukuman, if you are there, don't buy!)

Posted by Vin Tan > 2014-12-23 15:52 | Report Abuse

Kukuman, are you asking for certainty in investment?

Posted by king7 > 2014-12-23 16:41 | Report Abuse

Wa! Conman. who con who?

Posted by Ryanteh > 2014-12-23 17:32 | Report Abuse

dont know how long they can continue this spin this story.....

Posted by rlch > 2014-12-23 17:45 | Report Abuse

king7 Wa! Conman. who con who?
I was conned by the analysts high TP.(RM1.98, RM1.25,etc)

Posted by Ryanteh > 2014-12-23 17:50 | Report Abuse

JOHOR lawmakers fear that Malaysia and Singapore may be embroiled in a diplomatic row once the detailed environmental impact assessment (DEIA) report of the controversial Forest City project is approved.

They are worried about the possibility of retribution from Singapore, citing the republic’s reclamation works in Pulau Tekong and Tuas more than 10 years ago as an example.

http://www.nst.com.my/node/65301

Posted by Kukuman > 2014-12-23 18:35 | Report Abuse

Exactly ! No deadline given. You and your gang have been selling this damn story over and over again for so many months !

Posted by taciturn > Dec 23, 2014 01:44 PM | Report Abuse
kukuman: and you have been lying over and over again. I have _never_ given a deadline for the EIA before. I am telling you now what management tells me you miserable damned liar.

Posted by savvyone > Apr 25, 2014 11:30 AM | Report Abuse
taciturn, tshwong & samsung555, I checked with my source this morning and was told that EIA approval is well advanced and on track. He had assumed EIA to have been approved because the company is currently mobilising its resources for starting reclamation work in Tanjong Piai. He further said that the Terms of Reference (TOR) for the EIA process has been approved for some time now and should be posted on the DOE website anytime soon, if it has not been posted already. As always, I will try to share accurate information as far as possible, but the caveat is that there is no guarantee. So, please be guided accordingly.

Posted by taciturn > Apr 23, 2014 10:55 AM | Report Abuse
I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. (Kukuman, if you are there, don't buy!)

Posted by Kukuman > 2014-12-23 18:40 | Report Abuse

Posted by Kukuman > Jun 17, 2014 09:35 AM
Let's put it into another chart to see a more realistic stock performance.
13/11/2013 (Day 001) : 1.120
25/03/2014 (Day 131) : 0.920
28/03/2014 (Day 134) : 0.900
01/04/2014 (Day 138) : 0.890
03/04/2014 (Day 140) : 0.885
04/04/2014 (Day 141) : 0.905
08/04/2014 (Day 145) : 0.895
10/04/2014 (Day 147) : 0.895
14/04/2014 (Day 151) : 0.895
17/04/2014 (Day 154) : 0.900
23/04/2014 (Day 160) : 0.935
30/04/2014 (Day 167) : 0.900
05/05/2014 (Day 172) : 0.895
06/05/2014 (Day 173) : 0.940
16/06/2014 (Day 214) : 1.120
26/06/2014 (Day 224) : 1.140
09/07/2014 (Day 237) : 1.090 (Spin doctors said price will go up after EGM. Don't get conned!)
30/07/2014 (Day 258) : 1.090
01/08/2014 (Day 260) : 1.050 (Some cock here claimed holding for long. Don't get conned! Only good for contra player here)
05/08/2014 (Day 264) : 1.050
07/08/2014 (Day 266) : 1.050 (Spin doctors still claimed hold many. typical bull story)
11/08/2014 (Day 270) : 1.020
13/08/2014 (Day 272) : 1.000 (Spinner said after EGM, price will go up. when?)
22/08/2014 (Day 281) : 0.990 (So sad. one by one, innocent investor come out telling they had bought high after taken-in by spinner's story)
26/08/2014 (Day 285) : 0.925 (Spinner now said this is an Extra Long term stock. Extra Long?)
29/08/2014 (Day 288) : 0.920
12/09/2014 (Day 302) : 0.925 (Spinner said he is FULLY invested in mr ben)
22/09/2014 (Day 312) : 0.920 (Spinner said bond issue is good. what a spin!)
07/10/2014 (Day 327) : 0.875
17/10/2014 (Day 337) : 0.810 (The old spinner retired. Now come a new one)
24/10/2014 (Day 344) : 0.850 (coming to full year of 365 days)
18/11/2014 (Day 369) : 0.800 (spinner is back promoting new story. beware!)
26/11/2014 (Day 377) : 0.740 (New low)
01/12/2014 (Day 382) : 0.665 (New low. FULLY invested spinner in mr ben is either bleeding or give up his spin story)
11/12/2014 (Day 392) : 0.610 (King of spinner is back with long post again. beware! The more he talk, the price get lower)
16/12/2014 (Day 397) : 0.535 (New low)
23/12/2014 (Day 404) : 0.590 AGM AGM AGM. Spinner gives "live" updates in this forum about AGM. believe? After that post extra long comments.

I am tracking this rubbish company share performance.

Posted by taciturn > 2014-12-23 19:41 | Report Abuse

And the liar has struck again:

Posted by taciturn > Apr 23, 2014 10:55 AM | Report Abuse
I've just got news that Benalec has obtained EIA approval for both the Tanjong Piai and Pengerang land reclamation projects and work should start as early as next month. (Kukuman, if you are there, don't buy!)
23/12/2014 18:35


The above posting was made by Savvyone, and not me. The lying piece of crap that is kukuman quietly ascribed my name to it.

Frankly, I hope you rot in the deepest, lowest level of hell.

You can't even argue honestly.

Posted by taciturn > 2014-12-23 19:47 | Report Abuse

Proof of my statement:

http://klse.i3investor.com/servlets/forum/800001011.jsp?ftp=150

Go down the list and look for the posting done as per Apr 23, 2014 10.55am. Posted by Savvyone. That lying piece of crap attributed that quote to me instead of to savvyone.

I hope you rot in hell, kukuman.

Posted by Ryanteh > 2014-12-23 20:20 | Report Abuse

calm down...Who, or what, are you angry at? Figure that out, and you can calm down easier.

Posted by Simon Lau > 2014-12-23 21:06 | Report Abuse

for now, the EIA is the biggest concern, the next will be the S&P signing even though the company appear very confident to overcome those issue. for those who believe in the company should buy otherwise stay away from this company.by the way i really appreciate the hard work from taciturn.

Posted by jjwong > 2014-12-23 21:37 | Report Abuse

depending on hope and believe are very dangerous in stock market. especially when people got trapped at high price.

Posted by Simon Lau > 2014-12-23 22:34 | Report Abuse

high risk, high return.to manage risk, i will only consider to the stock below 40 cent,the margin of safety is comfortable for me,we should know that this company not lose in any financial year since it is listed.

Posted by Kukuman > 2014-12-23 22:46 | Report Abuse

Simon, below 40c is good number. I hope it will come true for you

Posted by Simon Lau > 2014-12-23 22:51 | Report Abuse

the whole game is about risk management. the lower u buy the safest u are unless the company belly up. there is no such things as risk free even u put ur money in the bank!!!!!!!! 40 cents or below is the risk i am willing to take otherwise i will pass.

Posted by happyvic > 2014-12-24 09:04 | Report Abuse

lol... kukubird really is a kid. kukuman,jjwong... both of these guys bought at 1.60... HAHAHA!!! such retards... so they sit here... copy and paste stuff whole day...hhahaha!!! suggest a jane doll for christmas

Posted by happyvic > 2014-12-24 09:07 | Report Abuse

taciturn, don't be bothered by kukubird... his mama so fat that when she jump for joy... she got stuck... HAHAHAHA!!!

Posted by oxygen > 2014-12-24 09:26 | Report Abuse

Merry Christmas.....time to rejoice n not to trade barbs!!!!

Posted by where > 2014-12-24 09:49 | Report Abuse

Sorry all. I was on leave yesterday.

@taciturn... i stay in Melaka lah. Hard to travel KL. My holding is quite minimal already compared to last time. If i want any update, i can call with my buddy working at branch office. He is quite well informed. He told me they are looking for Assistant GM to assist GM because expansion and Johor projects. Seems they are confident to start work at Johor soon.

Posted by where > 2014-12-24 10:06 | Report Abuse

i was informed that the Federal Government wants to keep cap on supply of oil tankers at Southern Malaysia. The oil tankers by Dialog at Pengerang is already sufficient enough to sustain supply & demand and wish not cannibalization among oil tankers players. Thats why Dialog was granted EPP instead of Benalec. Expecting more delays !!!!!

Posted by where > 2014-12-24 10:14 | Report Abuse

Even Sultan also acknowledged certain quarters purportedly to cause delay. So pls dont expect smooth sailing. I foresee further delay during Q1 2015 because these projects too controversial. As what Kukuman said, it is just work of spinner and buying time.

Speech by HIS MAJESTY:-

In his officiating speech at the opening of the Johor state assembly on May 31, Sultan Ibrahim stated that EIA is required for projects in the state, but went on to say: "But unfortunately, there are irresponsible quarters who use their power over the EIA as a weapon to prevent development that is not in their interest.

"Why are there quarters taking their own sweet time and deliberately delaying the approval? Such action obstructs the state's development and cause investors to run elsewhere.

"Johor is the right of Johoreans and only Johoreans know the situation and needs of Johor.

"Why should there be outsiders who try to interfere and teach us about what we should do in our own state?"

The sultan also cited the projects by Benalec Holdings in the state, for which the EIA is still being withheld.

Aside from a potential threat to Singapore's shorelines, there are also concerns that the project could hurt the Port of Tanjung Pelepas (PTP), Malaysia's second busiest port.

PTP is operated by tycoon Syed Mokhtar Al-Bukhary, seen as a business rival of Sultan Ibrahim.

http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=320911:controversial-forest-city-the-johor-sultans-own-man-made-island&Itemid=2#.VJogq14AA

Posted by where > 2014-12-24 10:16 | Report Abuse

Benalec indirectly became business rival to Syed

Posted by where > 2014-12-24 10:19 | Report Abuse

DAP, PKR, Syed, Singapore and Dialog have stakes there. Unlikely smooth sailing.

Posted by where > 2014-12-24 10:26 | Report Abuse

if u read from announcement, those vote for surely their own people. Who on earth having 433 million shares will attend? They only hv 11,300 shareholders with 1 person holding more than 100 million shares with 90% holding between 1000 to 200000 shares.

Posted by Kukuman > 2014-12-24 11:21 |

Post removed.Why?

Posted by where > 2014-12-24 11:27 | Report Abuse

@kukuman ..... frankly. I agree with you on your comments. Based on my earlier posting, these projects create controversy against law makers, environmentalists, Syed, Dialog, Federal and Singapore. I dont think the MD is strong enough to agaisnt so many forces. If without Royal supports, i think they already lost these projects.

Posted by Kukuman > 2014-12-24 11:29 | Report Abuse

The one who post the most and also the most long posts, and sometime using different ID pretending talking to each other, you will immediately know what his/her intention is. Why so desperate trying to convince people for such a rubbish company. For a director to get RM7.5 mil fee and still have the audacity to tell shareholders he deserves it because of the work he done for sacking his brothers ! This already non-starter.

Posted by where > 2014-12-24 11:34 | Report Abuse

@Kukuman............... is his duty as director's to resolve. Money paid to resolve issues instead to bring growth to the company. Money wasted. If the company is transparent since inception, this thing wont happen at all. How can related parties can happen but the MD, Board and Management not aware of it? Not competent or cover up or trap to kick the both generous directors LTC and LAC out from the company?

Posted by Kukuman > 2014-12-24 11:35 | Report Abuse

where, let me give you some thing else. do you know the actual reason the 2 elder brothers were sacked? don't believe too much what you read on news print la.
I said this again. they are brothers. At the end of the day, brother is still brother and when they go back to their parents house, they eat, sleep and shit under the same roof. Where got fight fight la

Posted by where > 2014-12-24 11:41 | Report Abuse

@Kukuman ... heard is because of long time dispute and cannot get along on business decision. I know eldest brother quite well.

Posted by Kukuman > 2014-12-24 11:48 | Report Abuse

Spinner said "I asked specific questions..."
and Spinner answered, amongst others, "Was very satisfied, reasonable satisfied, necessary move,.."

What can you make out of this? interesting comedy with spicy spin !


Posted by taciturn > Dec 22, 2014 11:46 AM | Report Abuse
@where: I've already answered about the 45m share sale. As answered by Vincent Leaw, he needed to funds when he bought out his eldest brother's stake. You might disagree with this, but to me it was a necessary move.
Also, the AGM is today and ongoing now...

[extract from extreme long spin post]
Posted by taciturn > Dec 22, 2014 02:44 PM | Report Abuse
..... I asked specific questions regarding independent directors' fees and emoluments, and also the managing director's payments.
Was very satisfied with the rationale for independent directors' fees. Was reasonably satisfied with regard to the MD's compensation package.

Posted by where > 2014-12-24 11:55 | Report Abuse

If the MD really love the company, he should not take such huge remuneration resulting fund raising. If he withdraw less RM6 million, the company can save RM420,000 (RM6million x 7%) per year on interest. The internal control of company so weak resulting RPT happened. The Audit Committee, External auditors, internal auditors, board of directors and managements not doing their job. Shareholders compensating them higher pay to them for not doing their jobs. Family conflicts bring to company and reward himself. Assuming the two brothers not executive directors, will this RPT issue happened? This show that it is personal family problem that bring to the company/board. Instead as shareholders, we must fuck the MD to create mess by bringing ancestors issue to company and cause shareholders to lost money. Agree Kukuman?

Posted by jjwong > 2014-12-24 12:03 | Report Abuse

Source : Affin Hwang Capital : Price Target : 0.68

According to its Chief Operating Officer, Benalec Holdings (BHB) expects to obtain approvals for the DEIA for its 3,485 acre Tanjung Piai Integrated Petroleum & petroleum Hub and Maritime Industrial Park in 1Q15. He added the environment impact study on 1,760 acre Pengerang land reclamation concession is still on-going.

Meanwhile, it was also reported that a minority shareholder questioned the remuneration package of BHB’s Group Managing Director Dato’ Leaw Seng Hai. He claimed that the GMD’s package of RM7.5m-RM8.0m in FY06/14 was too high compared to the group’s net profit of RM7.2m. (Source: The Edge Financial Daily)

Approval of the DEIA will be major positive news for the group. Work on the massive Tanjung Piai concession can then commence. We estimate that the Tanjung Piai and Pengerang will boost BHB’s order book by ~RM15bn and net profit by RM1.2bn over the next 10-15 year. With regard to the remuneration package for the GMD, the management said the GMD has worked tirelessly for the group, including resolving the recent boardroom tussle and securing the Johor concessions. He was also the GMD in FY12 and FY13 when the group recorded net profits of RM82.7m and RM56.6m respectively.

Maintain BUY rating with a TP of RM0.68 based on 10x FY15 EPS.

Source: Affin Hwang Capital Research - 23 Dec 2014

Posted by where > 2014-12-24 12:17 | Report Abuse

This company must learn from MAS Independent Directors. The independent directors refused to accept their fee for not performing. The MD should consider to change the independent director.