With the acquisition of the Kinta Mall, i don't see any reason of dropping. Please make KIPREIT 就死得很难看 (die in a very horrible way) I'm waiting to collect KIPREIT and die with KIPREIT together if it is selling at 50c.
If you think KIPREIT will drop suddenly to 70c or 60c, then you must mistaken REITs as a normal company share or whatsover securities...
Oh no, the YoY profit dropped 14%. By this trend, after 7 quarter, KIPREIT profit will be zero ! SELL now. TP 0.10 Familiar with this kind of quote ? Teehee...
Note for fellow investors. Lower total comprehensive income mainly due to higher borrowing cost incurred on the back to date of higher bank borrowing to finance solar PV system as well as the Kinta acquisition deposit. On top of that, the higher management fee charged from 0.30% of TAV in corresponding quarter to 0.60% of TAV in current quarter.
You should question why management fees doubled at shareholder expenses.
Trading Buy call with a Fair Value of RM1.10 (based on an implied yield of 6.5%). We like KIPREIT for its stable topline growth, improving occupancy and positive albeit low single-digit reversions. FY20 will see full-year contributions from acquisition of AEON Mall Kinta City. All in, FY20-21 RNI of RM37.9-38.2m imply attractive gross yields of 8.2- 8.3%, while we believe the stock remains undervalued, trading at steep 16% discount to its BV.
Cutting of OPR by. 25%, any effect on profit earning as cost of borrowing reduce?
*Malaysia Unexpectedly Cuts Policy Rate in ‘Pre-Emptive Measure’* 2020-01-22 15:01
(Bloomberg) -- Malaysia’s central bank cut its benchmark interest rate in a surprise move Wednesday, the first in Southeast Asia to do so this year as it seeks to support its economy amid lingering global uncertainty.
Bank Negara Malaysia reduced the overnight policy rate to *2.75%, a 25 basis-point cut* predicted by just two of the 26 economists surveyed by Bloomberg. The rest forecast no change. The central bank is moving to bolster confidence in Malaysia’s economy since it began showing signs of strain from the global slowdown last year. The bank cut the statutory reserve ratio requirement in November as growth weakened in the third quarter.
The adjustment to the policy rate “is a pre-emptive measure to secure the improving growth trajectory amid price stability,” the central bank said in an emailed statement.
Key Insights
* Malaysia’s economy is showing signs of picking up after a lackluster year confronting external risks. December’s manufacturing PMI signaled an expansion in factory output for the first time in 15 months. Industrial production grew at a five-month high of 2% in November from a year ago
* While the recent signing of a U.S.-China trade deal may not impact Malaysia’s exports immediately, there are signs of improvement. Shipments fell for the fourth consecutive month in November, but exports to the U.S. continued to rise and shipments to China rebounded
* The central bank cut rates once last year by 25 basis points, less than the easing carried out by many of its Southeast Asian peers. In November, it unexpectedly lowered the required reserve ratio for banks to help improve liquidity
* Moody’s on Monday reaffirmed its A3 rating for Malaysia, citing a large, diversified and competitive economy, strong medium-term growth prospects and ample natural resources
* Inflation was 0.7% in 2019, below the official forecast of 0.9%, as transport costs fell due to a blanket subsidy for petrol. The government is forecasting 2% inflation this year
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....
Kalaihselvan Krishnan
138 posts
Posted by Kalaihselvan Krishnan > 2019-01-01 01:20 | Report Abuse
Price down a lot