Haha the new encore melaka juz open, sure need huge expenses for the first few months, need wait it stable and really become a attraction place in melaka, then u can see their earning profits, long term is still good, hope got ppl will take away the terra square so tht thy can start to build and become a more attractive plc. Currently thtside only hv encore performance, so not really have much ppl passing by.
read the report guy, they spend alot of money in operations cost & advertisement of Theater.... worst case the expenses will continue the same nor increase...
I think most investors are interested in Yong Tai mainly due to the Encore Melaka venture rather than the group exposure in the property industry. There was a lot of expectation that the company will do well and reap the benefit from the venture as soon as it open its door to the public (which was in 1 July 2018).
However based on 1Q19 result (which covers July to Sept period), demand for Encore Melaka was rather tepid. This worries the investors as they assume this level of demand will probably stay longer and the gestation period before the venture turn profitable might be longer than expected.
I think Yong Tai was a bit unlucky to open the venture in July this year which was after a surprising general election result and after a lot of negative sentiment towards the chinese investment which might have effected the tourist arrival numbers from China (Encore was developped to cater mainly for the Chinese tourist). Chinese arrival for 2H of the year dropped 30-40% compared to 2017. Sales for the first 3 months of the venture was only at an average of 40k ticket per month vs management original target of 83k ticket per month. This resulted in the division recording an EBIT loss of -RM5.8mil for the quarter.
I actually believes that the chinese tourist will be back visiting Malaysia after the tension between our 2 countries cools down but it might not be too soon. With this in mind, those that are interested in investing in this company should most probably wait till we see an improvement of uptake (or financials) of Encore Melaka. Even though the company still has 2 property development (Amber Cove and The Dawn) these projects will only provide revenue to the group till 2021. And even that the EBIT from the 2 projects is only going to be around RM5mil/ quarter. So if there is limited improvement in Encore Melaka, Yong Tai would most probably still be in the red.
Those that are already invested need to be prepare for some volatility in the future as results would most probably still be weak in FY19.
If you are looking to diversify your portfolio into a company that is currently undervalue but will be able to profit profit growth in FY19, i would recommend you to look at MBMR.
The company is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.3x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year 4Q17. And FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
i would think that now is the good time to collect the share since the price is low, for long term investment this definitely a good price to go in. as what 'commonsense' mentioned, chinese tourist will be coming back to Msia, i truly believe this will happen.
cosline87 before open, bukan most of the ticket is sold to 6 travel agencies ? ------------------- i dont think is 'sold' as dont think this 6 tour will pay first ... such a risky investment. means could be if got tourist come, only they will pay back to yongtai
I think Encore Melaka is difficult to be the main contributor to its income as the ticket is too expensive for the locals and this is not something new to attract tourists from China. I believe the price keeps on dropping from 1.60 to 0.465 is due to poor response on Encore n property mkt slow down. Its potential at this point of time is - ve.
no support, so short seller keep shorting. for turning point, have to wait for positive news.
1) Terra Square taken by a big investor - but it less interesting as encore melaka not so happening. 2) Encore Melaka Sales Suddenly Growth - unlikely as chinese tourist getting lesser and lesser.
there is no support. you buy now also dont know when the price will be alive again. 1 year? 2 years? or 10 years? why stuck your money here? furthermore no dividend given. worse than putting in FD.
I bought at 1.02. Then the price drops and collects avg 0.82... The latest price is now 0.42. . My account has lost 50%. I want to collect the low price again. But there is no confidence.
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....
TYS_Capital
1,691 posts
Posted by TYS_Capital > 2018-11-29 18:49 | Report Abuse
I can see the growth in its revenue, will do more study for what expenses cause the negative.