If the latitude project is cancelled (which may not be a bad thing since the market is so soft right now) the key point would be the amount of compensation that would be paid out to Crest Builder. With the Prasarana chairman Tajuddin conflict of interest and MACC's potential investigation into this, it may be difficult for Crest Builder to get a good compensation for the cancellation.
Don’t believe too much this fellow said in interview. You can check the last time what he said during previous interview & check what happened after that.
Tajuddin Pasir Salak is out of UMNO & this company is also down as a contractor. Chinese family company. Used to get government jobs. NAPS has declined by 33% since 2020. Podcast in May 2023, now still losses.
Crest Builders had a terrible decade with declining top line, bottom line and returns. From 2012 to 2018, the Group achieved an average ROE of 8%. From 2020 to 2023, the average ROE had declined to negative 11%. https://i.postimg.cc/4NkPc3q8/Chart-1.png This is obviously a company facing a turn around. The good signs are that its construction arm has a RM 2.2 billion order book as of 2022 and its property development arm has RM 2.2 billion gross development value of projects. And it is fianancial ok. Its current losses are due to legacy projects and I think that it may take another 2 to 3 years to completely clean them. So while it is currently trading at less than half its book value, you will have to wait for the market to re-rate it. For more insights refer to Is Crest Builder a value trap? https://www.youtube.com/watch?v=Jcw2GnCPXqY
Based on "Discount Cash Flow (DSC) model" valuation by SWS website, CRESBLD share price was significantly below its fair value whereby the fair price of CRESBLD when looking at its future cash flows was RM17.39.
At Crest Builder, we are not just building a business – we are creating a legacy.
The Crest Builder Group had a revenue of about RM346mil in 2022, and grew to over RM500mil in 2023. Come 2024, we expect that figure to continue to grow, and we are targeting for at least RM700mil in revenue come 2026. Our construction division continues to expand, with more projects coming in the pipeline. Our property division is also expecting to evolve as we look forward to some new ventures and plots. Geographically, we are currently very focused in the Klang Valley vicinity – there are some concrete plans for expansions to the northern region as well as East Malaysia going ahead.
CRESBLD was ranked#14 todate for most construction projects value on hand (out of 60 construction companies that listed) but its current market capital only ranked#46 among the 60 companies. It means CRESBLD was an undervalued construction gem compared to its peers...
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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....
akc008
54 posts
Posted by akc008 > 2020-11-17 21:25 | Report Abuse
target 144% roi