Tuesday, April 8, 2014

Talam and KEURO

Recently, we are seeing some interests in Talam Transform as it continues to reduce its debt by selling assets. In the process of selling its assets, it is realised that many of its assets are undervalued in its books. At as now the NA per share is about RM0.14 to RM0.15 per share (that is book value) and may not be real value.

I am sure after its cleaning of its books, we will be seeing some real projects, but probably not using the Talam brand.

Why am I interested in Talam? Keuro holds 30% (controlling) of the company.

Saturday, April 5, 2014

SP Setia and TRC

Sometimes a slight change in management would make you think. The first thing that you would want to follow through is what would the changes be. In a recent announcement, SP has just awarded contracts to TRC Synergy for its project next to Mid Valley, named KL Eco City.

To me and many, SP Setia is the most prominent Malaysian developer and sometimes, you do not want to associate with not so good names. If you noticed two mishaps last year, TRC was in both.

Is there anything within SP Setia that we do not know of?

Saturday, March 29, 2014

Telekom-Green Packet: The weird world of Malaysian telcos

Remember years ago when Telekom Malaysia (TM) had TM Touch? They were going nowhere and for TM to have a significant mobile business and successful one, the forced (sort of) purchase was planned. After the purchase of Celcom from Tajuddin Ramli, years later it was split again, presumably for Celcom and its mobile business to have a solid Asian strategy, hence Axiata.

TM on the other hand, was given a lot of handouts in the form of financial assistance for its fiber broadband rollout - to the tune of multi billions. With that handout, few would think that TM can fail. In fact when Celcom and other mobile businesses were split from TM, these mobile group was structured to owe TM something like RM4 billion, another assistance to TM.

TM should not and cannot fail, just like MAS. The difference between MAS and TM is that MAS is fighting globally competitive players. TM is given a headstart in any of the competition it goes into, something like standing on the 50 meters mark in a 100m race while the rest will have to start from the beginning.

Who will think TM will succeed in the mobile data business acquiring Green Packet? I don't.

In a standing start against players like Maxis, Celcom, Digi - it will pretty much lose, what more coming from behind although it has the backbone of fiber optics - something that the others lose out to TM.

In a business of telco, it is not just the infra. Tell that to Digi, which does lose out in infra - even for the LTE spectrum and it did not even have the 3G spectrum earlier - forced to a deal with Time Dotcom.

This deal does not help anybody but to postpone the demise of Green Packet while another player whom are not able turnaround anybody is thinking that it can. SK Telekom's name is just a convenient partner to bring the story line sounds better. After all, it has been with Green Packet for many years and nothing really happened.

Thursday, March 20, 2014

EcoWorld's land purchase

EcoWorld has just announced a land purchase at RM35 per sq foot from Tropicana. That piece of land is adjacent to Bandar Rimbayu, now a IJM project with Keuro owning effectively 28% of that piece. The piece that is owned through Rimbayu is around 1,870 acres and that translate to 43,560 x 1,870 = 81,457,200 sq ft. Assuming we are taking at RM35 per sq ft as what EcoWorld is paying, the piece is worth around RM2.851 billion. This means Keuro's stake on the land alone is worth around RM798 million.

The Rimbayu's piece has a huge lake which although is a discount, will still be worth something. Buyers like houses overlooking a nice lake, which Rimbayu has.

Now you know why I was pissed off...

Keuro's effective stake in Bandar Rimbayu Sdn Bhd which is derived from 2013 Annual Report.

Another which shows that the effective ownership of Rimbayu (formerly known as Canal City Construction) is 28% and used to be 35% (Between financial year 2012 and 2013, there was no shareholding change for Rimbayu) is as below:

From Annual Report 2012, the one provided under Annual Report 2013 is probably wrong