Analyst Briefing Coverage for Ewein (7249)

As we know, Analyst briefing is something very exclusive and it is only for analyst and fund managers which normal retailers will have not have such priority of getting to such event. As a blogger, we believe we will benefit most of our readers out there by sharing the the details that we get from the briefing. However, please bear in mind that we are not giving any buy or sell call recommendation or even investment idea for the stock that we share in this piece of analyst briefing update but merely sharing information that we got from the management. 

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EWEIN 

Banking on the dream of Penang.

1st we would like you to watch this video. 

Source: http://www.cityofdreamspenang.com/index.php 

This is the itinerary for the day 

According to some of my friends, this is the very 1st time Ewein doing Analyst briefing and there are around 55 attendees in the room which consist of fund managers and famous analysts. As this is the 1st time the company meeting investors, fund managers and also analyst, soon enough we will see analyst come out with their initial coverage on the company where the soonest will be tomorrow. 

From the presentation of Mr. Leon Lee, Ewein Zenith Sdn Bhd Sales & Marketing Vice President. 

I feel that he is a very good sales man that show every best thing of the City of Dream where he made us understand that : 

1. This project is a high end luxury project, how luxury it is? it will have Versace Sofa and designers design's for the ground floor, private lift, providing Rolls Royce Limousine Services, VIP car park services. They wanted to create a living place that is equivalent with 5 to 6 Stars hotel. 

2. The management make this as a landmark that represent Penang just like Marina Sand for Singapore. 

3. This building provide urban farm and will set to be in the Malaysia Book of Record. 

4. The Developer will be giving out lucky draw of luxury car such as Ferari (if I'm not wrong) for the successful buyer after the launching. 

5. The company had get all the banks for their end financing, other than those banks in Malaysia, I saw that they did also obtain from China's bank which I believe they might try to approach buyer from china. 

6. To convince the buyer that Penang is a good place to invest, Mr. Leon do also share with us the trend and example of Hong Kong and Singapore's history and hows the price move up due to similarities of these 3 places. 

7. 67% of Penang's available land is already occupied, the left over are those protected forest and Balik Pulau. 

8. The next big thing in Penang is Gurney Drive, this is because 3 of the express ways will ends at Gurney Drive hence it is a very strategic place to invest.  

9. Singapore had invested in 2 malls in Penang, 1 is Gurney Plaza and the government is now investing more by collaborating the state government to set up Penang Technology Park. 

10. He compare the prices of property in HK, SG and Penang and believe Penang is still a good buy. After listening to his speech, I have an urge to buy property in Penang but too bad, I can't even afford 1 in K.L.

The 2nd person to present is Mr. Arnold Loh, Ewein Zenith Sdn Bhd Business Development Vice President.

1. Mr. Arnold speak very good English.

2. He present to us the Wellness Mall and Wellness City of Dream. Just like the theme of the mall, he said that fast food and unhealthy food are not allowed in this mall where there are only organic food, gym, wellness center and all sorts of healthy thing. 

3. The wellness mall is specialize in Wellness facilities serviced apartment where it will be the tip top for its hospitality and wellness. 

4. The serviced apartment will tap on the Medical Tourism where the patience won't have to stay in hospital but can move in to the apartment after their medical treatment. They might even provide 5 stars ambulance for that. 

5. This Wellness mall is supported by the government and it is an EPP champion under our government Economic Transformation Program. If I'm not mistaken, the company will get some incentives for being so. 

 

The 3rd person presenting is Mr. Allan Chee, Ewein Bhd Legal Counsel amd Company Secretary.

Ewein is everywhere!

Ewein will still keep their old business. 

Dato' Seri Ewe with Canon! 

Building road is also their expertise. 

The Game changer for EWEIN

This will provide GDV of RM800 mil for the 1st phase and profit of RM200m for the next 4 years. 

The building there is usually leasehold but City of Dream is Freehold which increase its attractiveness.  

The total GDV of the whole project is RM14b including the 1st phase which have GDV of RM800m

According to Dato' Seri Ewe, 

1. Since Ewein got the APDL Advertising Permit and Developer License on 10th July from Jabatan Perumahan Negara, they have received 1203 applications (if not mistaken, some have paid deposit) to purchase that 572 units available and they are in the midst of doing final qualifying check up stage. This is the final stage where they will sort out whether the buyer is afford to buy and are they able to get bank loan. 

2. The company had get the sufficient back up from local bank for the construction. 

3. They will still keep their current business as the current business is still healthy and stable. Manufacturing side is still maintaining their order book and they have recurring income from the rental income from Menara IJM Land where the income will increase 5% every 3 years and the occupancy rate for now is 98% which is guaranteed by IJM. 

4. They might spin off part of the land if there is a good deal which is able to create synergy. 

5. They have started construction for road & Drainage which enable them to start progressive billing, which will have contribution from the 2nd half of 2015. (Hint: We believe there are some numbers to show and pump into the 30th Sept Quarter report) 

This is quite a long briefing that we had attended where it starts by 10.30 a.m. and ends at 1 p.m.

The End

We believe our readers will found this post quite boring, however, we believe it will be good for investors who are looking at this counters and we are able to provide more insight to our readers as this info are not available to the retailers. 

Last but not least, we would like to remind our readers again. This is just a post and coverage of the company which enable our readers to have some insight to the info that is being shared in the analyst briefing. We don't give buy or sell call recommendation and this is not our investment idea but merely our coverage on the analyst briefing. 

To those that haven’t like us on our Facebook, appreciate if you could like us on our FB page and on the notification from our page as this will help u to keep updated to the latest stock pick that we believe Valuecap is interested.

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Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions

Valuecap: The gem that the cronies start to....

Before getting to the story, we would like to thanks our readers as our blog had hit almost 10k readership in 3 days, really thanks a lot for your support!

On the other hand, we would also like to congratulate our readers as all the share we mentioned have got some movement, however, to those traders, we don't encourage to trade because we are believer for buy and hold for 3 to 6 months strategy instead of trading but if u really have to trade then trade wisely ya as the aim of this blog is not for trading but buy now and sell to the cash rich Valuecap later. 

To those that haven’t like us on our Facebook, appreciate if you could like us on our FB page and on the notification from our page as this will help u to keep updated to the latest stock pick that we believe Valuecap is interested.

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The 2^nd thing is, we would like to dedicate this article and pay respect to one of the Director of this listed company that we will be mentioning later where he had pass away not long ago. He is my ex Adun from Alur Limbat, Terengganu Allahyarham Alias Bin Abdullah, it is sad to hear about his departure as he is a very caring and sincere assembly man that really take cares about the resident in his area without any bias. FYI, though there are only about 500++ qualified non Malay voters in his area which is insignificant, but he still spend his time and effort setting up a committee that listen to our needs and concern and offer help to us and he even find ways to help poor Chinese students in his area to provide them study materials. 

I would say he is a HERO that worth a lots of respect and to those readers out there, I understand that Allahyarham Alias Bin Abdullah is an UMNO assemblyman, but let’s put political background aside as this is a great man and that’s the quality that we need in every “wakil” and I hope you all can also respect this Hero of mine and it’s a loss to the Rakyat especially me. 

Tak Ziah to the family

Source: http://www.utusan.com.my/berita/jenayah/bekas-adun-maut-1.144873

Ok let’s not drag any longer and get down to the real business.

Time fram for Valuecap (Updated)

Yesterday we saw that there are news about Valuecap, which is

“Government-owned fund manager ValueCap Sdn Bhd will receive an injection of RM6bil - the first tranche of the RM20bil fund to lift the market - by the end of this year, said Retirement Fund Inc (KWAP) chief executive officer Wan Kamaruzaman Wan Ahmad.

“We are finalising the details with the other shareholders and we hope to have the first tranche in hopefully by the end of November, if not latest by early December,” he said after the signing ceremony to be the official signatory to the Malaysian Code for Institutional Investors on Monday.”

Source: http://www.thestar.com.my/Business/Business-News/2015/10/19/ValueCap-to-receive-RM6bil-injection-by-year-end/?style=biz

In short, we have 1 months’ time to look for and collect the Gem and past it back to Valuecap and charging them “rental or interest”. Sounds like a good deal right?

After the 5 stocks being mentioned last week, we’ve found another stock that could possibly be a target of Valuecap. We’ve found this stock today after seeing lots of buying in for the past 2 days, looking at the buying, we believe it might be the insider or the so call cronies that are accumulating, hence, we have decided to write it once the market close today as we believe in providing our readers the latest news whenever we can. Hope you enjoy our writings.

A brief introduction 

This stock is from a state that is rich with its culture and also famous with its oil field and their football team’s fans club has a name of “Peteh” as well as “Nasi Dagang”, "Ketupat sotong" and many more (Though we just had dinner but we really miss our hometown food alot food a lot by the time we start writing this article). This state is also famous with its “Penyu”! They are also in the limelight due to 1MDB news as 1MDB was previously TIA and some even said that they almost collateralize their oil field and yes, u r right! Its from TERENGGANU our beloved hometown and "yes" we are talking about TDM.

 

Why TDM?

TDM is a company that we believe had fulfill the qualification in terms of politically as well as undervalue of its assets and business. We’ve just noticed this company today as the volume rushed in with a breakout and we believe these are those insiders that accumulate this counter and sell it to the cash rich Valuecap. We will now explain to u the logic behind these thing. 

From the political perspective

As we said before, we believe our PM will use Valuecap to prop up the cronies counters to get support. As we look at the market recently, we believe other than FGV, TDM might stand a big chance to get such privilege too.

The reason being is due to 1MDB was originate from Terengganu that is Terengganu Investment Authority TIA and the previous MB YB Datuk Seri Ahmad Said had come out to the media especially when things are heat where he mentioned lots of “classified news” which the rakyat never even heard of. U may try the Utube link below.

Source: https://www.youtube.com/watch?v=C2Psptu1Psg 

Source: http://www.mstar.com.my/berita/berita-semasa/2015/05/13/bekas-mb-terengganu-dedah/

These had causes a stir to the rakyat and also the grass root as well the leaders of this state, so how to comfort this leaders and grass root supporters? To make them happy again is the way but how? We can’t give them directly as there are enough of scandal that are still overhang, so how? Yes, we can get them to buy some share and push it higher and sell to Valuecap, make sense?

So now to comfort the grass root from this state, then we have to choose things that these cronies are mostly invested in and make them happy. So what is the most invested company by these crxnixs in this state? 

Terengganu Development Management Bhd TDM (2054) is the answer, but how to justify that this ?

By looking at the top shareholder list in 2015 annual report, we saw that there 64.5% of the shareholding are tightly held by the state government and 8.35% held by KWAP Kumpulan Wang Persaraan DiPerbadankan. On the other hand, there are lots of fund house that bought the shares.

As a result, we believe this company not just only have lots of cronies in it but also lots of local investment house that is already in. Hence, its obvious that it has value in the company as well as having good cable in the company. 

On the other hand, my respected Allahyarham Alias Bin Abdullah is also in the board of director, isn’t that also showing this is a company of crxnxes? If this is not convince enough, we may look at the next one.

On page 49 of the annual report, we found something even more interesting and it is about the registered address of the company. 

Did u see what we saw? I believe there are not much company have their registered address in UMNO’s building. Only cronies are able to do that, do u agree? 

Btw, pls don’t politicise this issue, bear in mind clearly that we are here to make some money and get ang pow from our PM’s Valuecap, hence the more u unhappy then the more u try to take from Valuecap.

We have saw lots of volume pour in to these counter especially after our PM announced reactivation of Valuecap on 14^th September. Don’t u feel weird? 

Look at the timeframe that the stock price moved and the reason volume, I believe it’s the insider which is the crxnixs who are accumulating this stock as they knew Valuecap will surely buy this stock and that’s y u see the stock moved up with volume 1 week after the Valuecap announcement.

So that’s for the Political part, I believe most of u might agree that this is really a well-connected political companies that have lots of cronies in it. 

On the corporate perspective

If you were to look at the announcement of this company, u can see that KWAP Kumpulan Wang Persaraan DiPerbadankan has been buying this stock since April and have been buying since then where we have made it easier by showing u the chart below.

The thick line is the date KWAP buying the shares of TDM, you can see that their buying cost are mostly above RM0.70 and the only cheapest was on 30th September where they purchase at RM0.665. 

Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements#/?category=all&sub_category=all&alphabetical=All&company=2054&page=1

On the other hand, U can see the volume spike whenever KWAP buys in, so is the spike today was due to KWAP also? We will know the answer after 2 weeks time. 

The point that I would like to point out here is : The cost of KWAP recent buying is around RM0.70, hence, to get benefit from Valuecap, do u think KWAP will sell at RM0.70? I believe they might sell much more higher at least 10% above their cost, hence RM0.80 as my tp should be reasonable.

So Valuecap buying TDM is not only helping their cronies, but also helping their own shareholder KWAP... So.... 

  This is the way that we meant... The way for crxnxes to make and the boss to show result... 

and we TUMPANG!

*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Crxnixs stock that will be on target once we found it.

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A brief introduction of the company

The core business of the company is Plantation and Healthcare, where the business of their Healthcare is a fast growing industry that almost everyone needs it.

Healthcare 

TDM is very smart and business savvy where they set up their hospital at places that is lack of private hospital such as Kuantan and Terengganu where they have monopolise the specialist industry in these 2 places. From the annual report, we can also see the healthcare arm is growing fast where it is now contributing almost 45% of the company’s profit and this had diversified the risk of the company as they were previously relying on Plantation only.

The health arm is not the smallest in Malaysia as TDM now have 270 beds and will have 450 by the 1^st Q of 2016 while the peers such as TMCLife is now only have about 200 beds only. The best part of it is they have also mentioned that they plan to list its healthcare business in near term.  This is can easily generate few hundred million to the company if we compare with its peers valuation.

Plantation Arm

Plantation is the core business which contribute 55% of the profit for the company, the profit of this segment had come down due to the low palm oil price, and this company is a very good play for palm oil price rise. The palm oil price had started to perform recently due to the El Nino and haze hence the price will continue to perform once the palm oil hit above RM2400.

On the other hand, TDM is a responsible palm oil player where they only produce Sustainable Palm Oil CSPO which give them higher price compare to the others player. TDM had also expanded to Indonesia where the palm oil plantation is going to start production in 2016, this will boost the profit of the company by more than 30% for that year itself.

Source: http://www.tdmberhad.com.my/#1

To those that interested about the fundamental, u can read the latest report from PB invest : http://www.bursamarketplace.com/index.php?ch=31&pg=108&ac=19532&bb=research_article_pdf

This company is invested by lots of funds had shown its value and since it is a company own by cronies that someone has to please hence it’s definitely in the cart of Valuecap.

Before ending this post, let us remind our readers about our strategy again. 

1^st We look for the shares that being perceived as the cronies counter.

2^nd Make sure when can Valuecap start to buy.

3^rd After making sure of the date, buy before Valuecap especially when the share retraced.

4^th Sell the shares to Valuecap together with the cronies with handsome profit

5^th Wait for the market to fall and REPEAT!

Once again, we would like to reiterate we prefer buy and hold for a few month strategy and sell back to our “God of Fortune”. To those who really wanted to trade, please trade wisely and we couldn’t really advice on that as we are not good in that. We would also like to reiterate again that this blog is here to help out our readers and try to let them make some handsome gain from this volatile market.

May all the Huat be with us. Huat ah! 

*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Cronies stock that will be on target once we found it.

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Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions