Bone latest coverage on BJAssets bring to my attention as I was recently doing analysis in BJCorp.
It is huge no doubt. As I am still doing my studies, BJAsset as I understand so far holds BJ Time Square and some other shopping malls Berjaya Group has.
Bone's original cover here :http://bonescythe.blogspot.com/2014/08/bjasset-roar-of-southern-lion.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+BonescytheStockWatch+%28Bonescythe+Stock+Watch%29
Before moving towards BJAsset, I think a few salient points to note before I invest more into BJCorp will be as below:-
1.Jeju Island project has a casino plan on it, we have yet to know the issuance of license for casino. Once confirm, I think it will sent BJCorp higher.
2.Affirmation on listing of Umobile.
3.Affirmation on listing of Global Cosway in USA.
Also, I would like to see more debts being paid back and reduced down before investing more as it carries high borrowing now, and it can be killing factor as it will service more interest in this coming increasing interest environment.
Bone article here:- p/s: personally I think BJCorp is much more a bargain!
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The bullish global economy data that had been released from the West had finally toppled the fear of the traders and investor from the geo-political tension that is happening around the world. Currently, the DJIA is back on track again to challenge the 17000 mark, of which breaking above 17000 will definitely mark a strong come back of the bulls in the equity market once again. 19th August 2014 had mark a strong come back on the foreign fund in the local KLSE equity after chalking up more than 5.1 billion of shares exchanging hand as KLCI ended at 1872, putting up a 10.41 points gained.
Malaysia is still a place that is full of opportunity and chances. While the Penang is as interesting as Kuala Lumpur, Johor, under Sultan Ibrahim is definitely not to be missed at all with robust mega high end development that is brewing in the state.
Putting that up, one of the great attention for 2H of 2014 that should not be missed out will be at Berjaya Waterfront, which is under Berjaya Assets Berhad (BJAsset - 3239)
Let's have a quick look at the latest chart on BJAsset.
BJAsset had recently came into a huge limelight earlier this year after unveiling their plan to replicate another Berjaya Hill in Johor, which is adjacent to their latest acquired Berjaya Waterfront. BJAsset had since then consolidated for a period of approximately 6 months. As the consolidation at the range of RM 0.85 had saw saturation, BJAsset will be looking to soar into the higher ground as they might challenge above RM 1.00 to put them into the uncharted territory. BJAsset had saw an improved participation in volume, which will suggest a greater participation in the coming days which will help breakthrough RM 1.00 in a solid manner.
BJAsset - Rolling the Chips
Berjaya Assets Berhad basically engaged
- gaming and related activities
- property development, property investment and commercial leasing
- recreation theme park and car park operator
BJAsset had recently announced it's FYE 2014 which ends
on the 30th June 2014. The revenue for FYE 2014 had increased in a significant
manner, with major contribution from the gaming business after recording a lower
payout.Moving forward, BJAsset will be looking to maintain their current market share, and will be looking to tap into new market in the coming days, which will be focused in Johor after the company had spent near to RM 500m in acquiring land and building in the currently known Berjaya Waterfront, a Duty Free Zone in Johor.
At the current price of RM 0.94, BJAsset had been trading at a seemingly huge discount of 50% from it's NTA of RM 1.87. However, the discount might be even larger if it is not for a Year 1994 value recognition in Berjaya Times Square and Menara Berjaya.
To recap back in 2013, BJAsset had seen a strategic partner when Sultan Ibrahim bought up 20% of stakes in Tan Sri Vincent Tan privately held vehicle - Berjaya Times Square Sdn Bhd at the price of RM 250 million. Although the sale is a RM 7.02 million gain in the company level, the group will be registering an exceptional loss of RM 149.15 million after seeing the transaction being transacted less than the value of the building booked in a group level.
BJAsset had started their venture in Johor after acquiring "The Zon" from Darul Metro Sdn Bhd. The group continued their spree by acquiring another 4.89 acre from Atlan Technology Sdn Bhd, while another plot of 4.285 acre of land held by Kelana Megah Sdn Bhd will be looking to set to hit the agreement soon. The huge mega plan in Berjaya Waterfront is to emerge as a huge entertainment resort with a chain of high end restaurant and clubs that will be catering to the middle - high income population that is expected to settle down in Iskandar Malaysia in the coming years. To make things hotter, there are plans for slot machines as well after seeing the bullish crowd that Singapore casino are having, where cost are much higher.
Upcoming Huge Booming Catalyst
Berjaya Asset will be ready to launch their mega entertainment city once they complete their last acquisition land that is held by Kelana Megah Sdn Bhd, which is a 100% owned company by SGX listed Duty Free International, whereby Duty Free International is a 81.15% owned subsidiary of Atlan Holdings Berhad. The previous transaction of Darul Metro Sdn Bhd (owned indirectly through Duty Free International) and Atlan Technology Sdn Bhd is also owned by Atlan Holdings Berhad.
According to sources, Popular Earnings Sdn Bhd, a
wholly owned subsidiary of Berjaya Times Square Sdn Bhd might be entering into a
joint venture with Atlan Holdings Berhad to develop the 4.285 acre land that
will be held by Kelana Megah Sdn Bhd. This will be further back up by the
recent 15% private placement in Atlan Holdings Berhad amounting to 38,047,500
shares which will raise approximately RM 170m.The completion the land deal in Kelana Megah Sdn Bhd will be the final leg of the wait and will spell the start of the one of the most happening entertainment city places in Johor - Berjaya Waterfront.
Berjaya Asset will definitely play a prominent role in in transforming Johor. While casino is currently a no, slot machines are not in the same rank as casino. The entry of slot machine will definitely put a bar higher in other entertainment city in Malaysia (except Genting Highlands).
I believe BJAsset will be a very worthy company to be invested in for the long term based on
- Grossly huge discount of 75% at RM 0.94 based on RNAV of RM 3.80.
- Emergence of strategic influential stakeholder (Sultan Ibrahim) in Berjaya Times Square Sdn Bhd.
- Strong solid business background with huge financial capabilities in undertaking huge projects.
- Exposure in Johor most strategic location with Duty Free Zone.
- Berjaya Waterfront's close proximity to Iskandar and Singapore.
- Upcoming projects development worth more than RM 5billion.
- Berjaya Waterfront to be a huge entertainment city with high end hotel, residences, restaurants and clubs.
- A very high chance possibility of slot machines area to spice up the entertainment city, which is further backed by insider sources.
- High possibility of joint venture with Atlan Holdings Berhad to develop 4.285 acre of land
Berjaya Assets Berhad will be looking to trade into the higher region in the coming days ahead. A short term outlook will definitely see BJAsset shooting above RM 1.00, while a long term outlook will put BJAsset possibly reaching RM 2.00. Based on a 50% discount on RNAV, BJAssets will be worth RM 1.90.
Game in or game out? You decide
Bone's short term TP: RM 1.20 (Potential limit up)
Regards,
Bone
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