EGM date 29 Aug, 11am......a long circular to be studied to understand why IFA views that the PART B is fair and reasonable.....Salcon put it multi-million dollars and most of the effort to acquire Yara project but now dispose of its substantial shares to EWI for AUD120,000 only and also appoint EWI as project management.....look like in favor of EWI, so why IFA thinks is fair and reasonable?
No wonder its share keep falling due to this fishy property deal? Is salcon sell at profit/ loss How much is the profit from sales to EWI. SC, pls look into/ probe this suspicious deal..
salcon bought at AUD38million but sold at AUD120K to EWI...why make this stupid deal? all minority must shoot down this stupid deal. directors think we're idiot?
Malaysian-listed Salcon has brushed aside concerns about Melbourne’s apartment market, forging into the Australian property sector with the purchase of key site in up-market South Yarra that can support a $230 million luxury complex.
The Malaysian group swooped on the 2125sq m land parcel, buying 16-22 Claremont Street from the private K&E Rogers Pty Ltd for $37.88m in a deal struck late last week.
Mark Wizel and Lewis Tong of CBRE and Trent Hobart and John Marasco of Colliers International marketed the property.
The firms’ representatives were unavailable for comment.
One driver for the Malaysian group to buy in Melbourne had been “the general slowing down in the Malaysian property market”, which led it to diversify its property development portfolio overseas.
“This acquisition will allow the group the opportunity to establish a presence in the Australian property market, where demand for Australian properties has remained strong in key cities such as Melbourne, in particular in the inner-city areas,” Salcon said.
The property is well positioned in South Yarra, adjacent to the Chapel Street and Toorak Road shopping strips and near a railway station. Salcon plans to develop a residential complex of 336 units with a retail podium.
Offshore developers are also chasing sites in Melbourne’s middle-ring suburbs.
Not-for-profits Navy Health and Scope have sold their adjoining Box Hill properties for just over $30m to one Chinese developer.
That sale, of 826 and 830 Whitehorse Road, set a suburb record of almost $12,000 a sq m, according to Savills’ Clinton Baxter, who brokered the sale with colleagues Nick Peden and Jesse Radisich. The campaign generated spirited bidding between several Chinese bidders for the properties.
“The sale is a tremendous endorsement of the Melbourne and Box Hill development market, placing Box Hill property on a par with land rates being achieved close to Melbourne’s CBD, and demonstrating the development powerhouse that Box Hill has become in recent years,” Mr Baxter said.
Competition between prospective purchasers reflected an ongoing confidence in Melbourne and areas like Box Hill.
The site’s zoning allows for a landmark development with planning advice from Urbis indicating a potential building height of more than 30 levels, with a yield of more than 500 apartments.
As per circular, Salcon sold out its Yarra property to a JV co. and earn myr2Million + earlier advance ~ myr50Million....Cash level rising up again....ok. quite a safe company with stronger balance sheet. hold for long term....big dividend very likely with ample cash
salcon's next milestone should still focus in water sector and new venture in VBT and Alitrip being the former is the core biz and the latter is the new dynamic biz in current market and whoever come in first will win. less involvement in property developer is a good move
PETALING JAYA: Salcon Bhd, a diversified water and wastewater engineering company, is expected to post a strong earnings improvement in the second half of this year, supported by contributions from the company’s construction business, according to CIMB Research. “We expect a strong earnings turnaround in the second half (H2’17), underpinned by strong construction billings, completion of a property development project, and marketing cost savings,” the research house said in a report. CIMB said Salcon’s earnings would be supported by property development profit recognition from Res 280 in Selayang. The development with a total gross development value (GDV) of RM160mil and at a 15% net margin and 50% stake implied a profit of RM8mil to RM9mil. It added that earnings would also be supported by the reversal or write back of RM4mil to RM5mil marketing cost from its Yarra One property development project in Melbourne, Australia (GDV of RM728mil). Furthermore, the sale of a 80% stake in this project to Ecoworld International has been completed. Salcon posted a net loss of RM9.04mil in the second quarter ended June 30 against a net profit of RM27.9mil last year. Its revenue for the quarter fell marginally to RM21.5mil against RM21.7mil a year ago. In the first six months, Salcon posted a net loss of RM12.8mil on revenue of RM40.9mil. “We consider the performance to be broadly in line as we expect an earnings turnaround in H2’17 forecast, driven by infra and properties. We expect stronger construction billings in H2’17F on top of a property margin recovery in Q3’17F due to the completion of a project,” CIMB said, adding that weak property earnings and slow construction billings were the main reasons for the core losses in H1’17. Results aside, CIMB said Salcon’s job tender outlook for the rest of financial year ending Dec 31, 2017 remained unexciting. Given that new sizeable water treatment plant (WTP) projects have been awarded (including the Labuhan Dagang 400 MLD WTP in Selangor), Salcon will be vying for small non-revenue water (NRW) contracts. “We understand that it is targeting contract sizes of RM10mil-RM20mil each. There are roughly 50 NRW contracts up for grabs in Selangor, of which 30 have been tendered out and some others pending awards by end-2017,” CIMB said. It noted that there was a possible delays of phase 2 of the WTP contract, which CIMB had earlier expected to be awarded by end-2017. Indications from its industry checks suggested that there was likely no immediate need for the Government to award phase 2 this year given the ample capacity in the medium term, according to the research house.
I am holding on tightly to this stock.. it will recover on 2nd half 2017 strong profit recovery, strong net cash of rm80m, strong nta of 74cts, its divisified n niche businesses, its growth potential and supported by its strong coporate shareholders.
except strong net cash level, salcon is like a Jack of all trades, master of none -investor will like to see what is its core business, but none..sana sikit, situ sikit...So, how to classify them?
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....
stteck
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Posted by stteck > 2017-08-14 18:29 | Report Abuse
EGM date 29 Aug, 11am......a long circular to be studied to understand why IFA views that the PART B is fair and reasonable.....Salcon put it multi-million dollars and most of the effort to acquire Yara project but now dispose of its substantial shares to EWI for AUD120,000 only and also appoint EWI as project management.....look like in favor of EWI, so why IFA thinks is fair and reasonable?