This news has been around for sometime since last years. But, whether this M&A is benefiting HIL will have to see. From the land for development that come with the M&A look worth more than RM71mil.
A positive news released with property development land injection by Dato. Ng family. Proposed acquisition gain of 6 million will be reflected in Quarterly report very soon under MRFS requirement. Both property development project will further increase additional net cash on hand of 60 million upon completion of the project in the end of 2018. By then, I will estimate the total cash on hand to be 280 million which already worth RM1 per share.
48 million of share have been disposed by major share to SOME ONE UNKNOWN on 07 SEPT 2016, until TODAY STILL UNKNOWN. WHAT IS SC DOING. we the share holders are still PUZZLE ????????????????????????????????????
A&M share price flying high effect will spillover to HIL thus, i strongly believe share price will catch up very soon. I also foresee these 2 counter is playing by a group of politician particularly from MCA such as development new of carey island is released from MCA leaders. Owner of these 2 counter has gd relationship with them. Cheers!!
After monitoring a couple of week of A&M vs HIL share price movement, i could confirm that A&M price going up is due to insider accumulating the share as they believe property development start at Pulau Carey by this year will give high earning to A&M after gone through land value re-adjustment. Thus, HIL does not benefit from that and share price is going down despite in bull market.now
Another two projects by HIL in Bukit Kemuning is 108 @ Kemuning Hills and Quadz. The latter features 64 units of two-storey cluster semi-detached houses (there are only 30 units left for sale since its preview in 2H2016). The cluster semi-dees have built-ups of 2,300 sq ft, with prices starting from RM998,000.
108 @ Kemuning Hills comprises 108 units of terraced houses which will be launched by year-end. The units have built-ups from 1,470 sq ft to 1,730 sq ft, with prices starting from RM530,000.
“Terraced houses in this area [Bukit Kemuning] are in the RM700,000 to RM800,000 range. For the price we are offering, I believe they will be snapped up,” Milton noted.
QUARDZ project will bring in another 30 million revenue and thus, estimated 15 million profit based on profit margin gain @ 40-50% for the past project at bukit kemuning.
Be patient, A&M is progressively run up but HIL does not follow at all, why? Many ppl may think that converting HIL to A&M in order to maximize share profit thus selling pressure is building up. In contrast, HIL may benefit if A&M share price start stagnant at 1.60 and it is possible that share swap (privatize HIL by issuing A&M share ) may be suggested by big owner in order to capitalize the huge cash holding by HIL. They may propose 1000 share of HIL exchange to 750 share of A&M which translate to 1.20 buyout price for HIL. After this exercise, A&M will have additional new share approximately of 200 million issuing to HIL shareholder. Furthermore this exercise is much more easy for funding rather than go through private placement. Let see whether this proposal will become reality or not. Also take note that why HIL management extended the draft circular of proposed acquisition of land recently, is it they have a better plan rolling out ?
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Posted by ljmeng > 2016-12-14 10:02 | Report Abuse
finally fly