Finally! Gap up on Monday, but i'm sure a lot of people here are like me, trapped at a higher price. Hopefully by end of this month when they winning the LRT too it will be RM1.4
initially, i am a bit worry since this hospital job had been delayed for some time, summore election is near, scare this job kena sabo by gkent...hahaha
I already share the information before, today is bottom price will be rebound on next week. Congratulation to all investor who has bought more at 1.20 -1.21
Gadang Holdings Berhad ("Gadang") is pleased to announce that its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd has accepted the Letter of Acceptance dated 1 August 2017 from Cyberview Sdn Bhd to undertake the proposed development of Cyberjaya Hospital (288 Beds) on Lot 47686 and H.S(D) 28779 PT No. 41461 at Persiaran Multimedia, Cyber 11, Cyberjaya, Mukim Dengkil, Daerah Sepang, Selangor Darul Ehsan - Design and Build ("the Contract") at a contract sum of RM475 million.
This should be insider trading: Name of Principal Officer Description of Securities Date of Purchase No. of Warrants Purchased % of Outstanding Warrants Price per Warrant Kuan Aye Lee Warrants 2016/2021 1/08/2017 150,000 0.12 RM0.548 => Need to report to SC to take actions?
Don happy so early. Based on these months trend, Monday Gadang will move to 1.30, then drop 1 sen every day subsequently.. Haha.. But still a good news, congrats to all shareholders!
Hi i had done a bit of detailed analysis on Gadang lately. I think Gadang will perform very well in FY 2018 onwards, after the Q2.
Problem now is that the out standing orderbook now lefgt RM 220mil ( count out the MRT and those received from Jan - July 2017 as these projects are big, draggy and takes some time may be 3-4 years to be completed). Also, Gadang didnt mention the duration of all its projects secured. So it is difficult for us to estimate the revenues to be generated from them.
So i expect Oct 2017 the results for gadang will be a bit bad vs Q 1 2017 Oct resutls.
Pros for Gadang:
- cheap valuations at PE ratio 8x only compared with peers at PE 15x
- increasing contracts awarded In 2017 - so far obtained about rm 1.7 billion in order books for constructions ( cyberjaya hosp 475 mil, MRT2 952mil, tun razak traffic alignment 328mil ) with out standing order book as at may 2017 = 220mil
-expect gadang to get more projects by end of year from LRT 3 and ECRL.
- properties.segment kwasa land ( GDV 700mil + puchong land 117mil) expected to contribute to gadang earnings by end of 2018
- its solar power in indonesia will start to contribute to gadang earnings as early as early 2018.
- constructions total order book as on Aug 5th now stands at rm2 billion, can sustain its growth for at least 4-4.5 financial years.
- dividend 3 sen translate to yield of about 2.5% per annum.
- ROE of 18% currently and increasing for the past 4 years.
- number.of shares about 650mil --> ? More potentials for share split and bonus
- net cash company of about 10sen per share After deducting borrowings of rm 350mil. Able to Give sustainable dividends.
Cons about Gadang :
- MRT2 project is large and draggy. Takes a long time to complete maybe 4-5 years? Will start to contribute to its earning maybe in 2-3 years time? Duration of the project obtained by gadang was not mentioned by the company ( unlike the ones announced by Econpile kerjaya Gkent...they do mention the duration of projects )
- rarely pays dividend only once a year 3sen. - high payable rates ( means it has to pay to its supplier in long term debts ). But this is common in constructions companies.
- it also have little receivables (means other people gonna pay gadang back)...? Risk of them not paying back
- %free float of shares in Market quite high about 50-60% as the directors didn't hold large chunk of shares unlike Econpile kerjaya.
- fund managers didn't hold much of shares in gadang too.
- very liquid movements of share prices of gadang. Risk of being manipulated by share manipulators are high.
Feel weird, why the share price does not really move earlier with 1.5bn orderbook (ex hospital). Is it bcoz all contracts are more than 5-6 years? Please advice
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....
Larrytrader
1,453 posts
Posted by Larrytrader > 2017-08-04 18:31 | Report Abuse
To tksw and other GADANG fellows congrats and well done on your patience