KPPROP use almost IBS(Industrial Building system) to build house that cut cost esp the labour cost and saving time which result in higher profit margin. KPPROP was doing well even in MCO period. The last 4 latest quarterly result the earning per share, EPS was keep on improving, i.e, 4.51cent, 5.31cent, 6.33cent and 11.22cent respectively. Moreover, high unbilled sales.
RCPS drags down the price of KPPROP even the prospect is good.
Previously never notice KPPROP's RCPS. This makes calculation becoming totally different.
After do google and study the KPPROP RCPS for 2 hours. Still got some doubts about this RCPS. The info that can confirm is such:
1. According to news in August 2019, Total RCPS are issued : 1,574,060,000. (Each RCPS = 17 cent). In 2021, 5 RCPS = 1 KPPROP share. 5RCPS = 85 cent. 2. So far, known RCPS converted to KPPROP shares: a) 26 Feb2021- 300,000,000 RCPS are converted to 60,000,000 KPPROP shares. b) 13 Apr2021- 250,000,000 RCPS are converted to 50,000,000 KPPROP shares.
Doubt? How many RCPS left can be converted to KPPROP shares? Maximum KPPROP share scenario: 1,574,060,000-300m-250m =1,024,060,000 RCPS or 204,812,000 KPPROP shares. Each KPPROP share cost the holder 85cent. Minimum scenario: All RCPS are already converted to KPPROP shares(best condition)
Now, the known total number of issued shares of KPPROP are 400,142,339(included the private placement of 90,000,000 cost RM1.13 per share on 02March2021). Due to uncertain about the remaining RCPS, just calculate the best condition that suppose no more RCPS can be converted to KPPROP shares.
Due to significant increase in KPPROP shares to 400,142,339, the earning per share will be diluted accordingly. Let say the profit remained the same as the latest financial result(31DEC2020), the profit after tax is RM22,209,000 with earning per share is 11.22cent on 31Dec2020.
Now, earning per share,EPS= 22,209,000/400,142,339=5.55cent only. Besides, the Net asset per share will be reduced significantly too, no more RM1.79 as declared in 31Dec2020.
Maybe someone can help to answer how many RCPS left that can be converted to KPPROP shares?
drop till nearly takeover price, and below PP, still want to sell ah, so desperate meh? LOL. see the latest QR, damn good margin. Pro management, much better than serbadk shits.
The NAV of KPPROP dropped from the previous quarter(31Dec2020) of RM1.79 to the latest quarter(31Mar2021) of RM1.39.
Net profit dropped slightly from RM22.206million to RM22.111million.
By using basic formula, EPS = Net Profit/Total no of shares Note: Let assume no company treasury share Total no of shares as declared 400,142,339 Earning per share,EPS= 22,111,000/400,142,339=5.55cent only.
In my opinion, the difference most probably never use the current no of shares(400,142,339) to calculate the EPS. Because of the latest quarter is calculated from 1 Jan 2021 to 31 Mar2021.
the diluted earnings were calculated and mentioned in the report too, do check it out. As long as the management keen to expand the company, the future redemption of RCPS will not be an issue. It is unlike those penny pump and dump stocks.
Cash rich company, strong eagerness to acquire lands for expansion. Good prospect. RCPS does not matter much as long as management is doing their business instead of practicing pump and dump activities like the other penny stocks in bursa.
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....
flyhub888
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Posted by flyhub888 > 2021-03-25 09:24 | Report Abuse
upppppp