Public Islamic Opportunities Fund 1.163% RHB-OSK Dana Kidsave 0.741% Amb Smallcap Trust Fund 0423% MAAKL Progress Fund 0.401% RHB-OSK Small Cap Opportunity Unit Trust 0.352% RHB-OSk growth and Income Focus Trust 0.341% Kenanga Growth Fund 0.286% Uni. Asia Life Assurance Berhad (Par Fund) 0.264% Dimensional Emerging Markets Value Fund 0.26% DFA Emerging Markets Small Cap series 0.252% Uni Aggressive Fund 0.247% Kaf Vision Fund 0.211%
I went to Ng Kiat Min corporate presentation yesterday in icapital investor day. Listening her presentation, she makes me feels this is the right company to invest for long term. What I like about her is the long sighted of her in the company. The company is continuing seek for recurring income, unlocking tourism opportunity, & expansion port capacity. If you are looking for sustainable investment and growth in revenur for long term then invest in the company. If you are looking a company with strong economy moat i.e 8 port operation in Sabah, where the largest production of palm oil in Malaysia & Seaweed & agrocultral product then invest in this company. I assure you will never sleep so soundly in the night while Suria is working hard with your money. Definitely this is not suitable for trader. I looking forward to attend their AGM in Jesselton Quay upon completion.
We ask Ng, why the recent selldown in Suria, she said recently the company is giving ESOS to the employee. The employee has selldown the share especially in the Hari Raya month. The fundamental is intact especially you can see the gearing is only 0.1.
"This is mainly becoz they recognise the JQ project as revenue! They haven't even received the money from SBC yet!
Excluding this non-recurring income of RM112m from property development, 2Q15 is actually loss-making!"
We ask her regarding the issue of recognition revenue, it is due to contract term stated by government. They did appeal for reversal and consult for lawyer but in the end they loss. The management do not have intention to inflate the income as they have just received 2mil in cash but they had already paid RM25mil tax due to the recognition. But we are informed they still have 50% of revenue yet to recognition plus upon collection for SBC, they will have additional RM80mil cash. They are negotiating the payment in exchange part of the property instead of cash in order to enjoy recurring income in the future.
The Board of Directors of Suria Capital Holdings Berhad is pleased to announce that the Proposed Bonus Issue as set out in the Notice of Extraordinary General Meeting (EGM) dated 14 December 2018 has been duly passed at the EGM held on 10 January 2019.
The voting in respect of the Resolution was carried out by way of electronic polling system and the results were validated by Scrutineer Solutions Sdn Bhd, being the independent scrutineer appointed by the Company. Please refer to the attachment for the result of the poll.
Jesselton Quay carries a minimum net sale value of RM1.8 billion, will be built on a 16.25 acre prime port land and One Jesselton Waterfront is a luxurious mixed development project set to be constructed across a 7 acre plot of land with an estimated Net Sale Value (NSV) of RM 1.8 billion. The two projects with a minimum sale value of Rm3.6 billions, Suria will entitled 18% of the value or equivalent to Rm648 millions less Rm233 millions received from Jesselton Quay on 2015, the balance amount due to Suria will be Rm415 millions. However, there is another piece of land next to the above projects with 28.9 acres also earmark for International cruise terminal and luxurious development project will be developed within 10 years time. (Note: Suria had paid 50% or Rm24 millions for the land premium to Sabah government last year) As mentioned in yesterday AGM, total expected GDV of Rm6 billions of development projects(including above 2 projects) coming on stream with completion of 8 to 10 years time, there will be another Rm432 millions due to Suria. So the amount yet to receive will be Rm847 millions or about Rm100 millions annually.
Part of the 28.9 acres of portland will be used as international cruise terminal and will be operated by Suria. There will be additional income to Suria.
The port operation will growth marginally every year and the profit will increase accordingly.
Conclusion: Suria will only come out with land for the project developments and the amount received will be mainly profit to the company. Expected the profit of the company will increase significantly from next year onward.
From ports operation, Suria profit was about Rm 50 to 60 millions for the past 7 years except 2015, profit was Rm130 millions and it was extra from property development. For the next 8 to 10 years to complete all 52 acres of development and based on the existing 2 project value, per acre of land will worth about Rm 28 millions. The total income for next 10 years will be Rm1456 millions less Rm 233 millions collected, the balance amount will be Rm 1223 millions or Rm 122 millions a year. With 50% margin of profit, every year property development will contribute another Rm 60 millions to the company or total profit of Rm 110 millions per annum for next 10 years. At present price of Suria price, Rm 1.33, PE of about 4 will be anticipated.
We hope Suria management will be asking more payment in kind instead of cash and the % of land value will definate be higher than 18%.
I hope DP is eyeing bigger stake into Sabah Port. They can actually cooperate with Sabah State Gov to jointly takeover Sabah Port. A 1 time PB is good enough ;)
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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....
yapts
561 posts
Posted by yapts > 2015-03-27 17:11 | Report Abuse
Buy now,when more and more research house recommend to buy,then 'give them".