A&M - Awesome and Majestic
The US market had reacted in a superbly bullish manner after Yellen
sticks on to the promised of reducing the quantitative easing by
handling a USD 10 billion reduction in the monthly bond purchases. As of
now, the DJIA is partying hard with more than +100 as the US economy
recovers in a faster pace than expected. I believe this plan will
further drive more fund back to the US, hence resulting in a stronger
USD in the coming days. While the US market heads for recovery,how will
the emerging market react?
Interestingly, I would like to bring to your interest - A&M, known
as A&M Realty Bhd (Stock Code 5959). This little known company in
the older days will not be staying low profile soon as the harvesting
season had finally reached their door step on their prize assets,
featuring Carey Island, Jugra, Selangor.
Let's have a quick glance at the technical chart of A&M Realty.
The price had recently saw some activities in January 2014 and
consolidated lower for a couples of month after a series of bearish
sentiment in the KLSE market. While consolidation had seen saturation at
this level, I believe that A&M will be look set to penetrate into a
new level to find it's base soon, hence, will be anticipating a great
volume to participate in the market.
So probably you might be thinking, what could be so great about A&M
prized asset - Carey Island? Carey Island is strategically located at
the south of the radiantly busy Port Klang, where Hong Kong mega tycoon
Li Ka Shing is part of the owner for the biggest port operator at Port
Klang, dubbed Westport.
The current infrastructure development with SKVE (South Klang Valley
Expressway) had connected the Kuala Lumpur to Carey Island in a straight
drive. Driving westward from Puchong to Carey Island using SKVE will
only takes approximately 30 minutes.
While NKVE had brought up places
like Setia Alam in Shah Alam, the connectivity of SKVE straight to
Carey Island is liken to a golden bridge in bringing up the value of the
land there.
A&M is sitting on a massive 2000 acres at Carey Island which was
bought more than 30 years ago at a price of less than RM1 per square
feet, and had not been revalued for years since they last bought.
Analyst would suggest that each square feet to be worth around RM50,
which will put up a staggering figure of RM 4.2b worth of land now.
With
365m shares issued, the land itself will be knocking at RM11.50 per
share. Skeptically slashing it by 50% still put the figure at RM5.75,
which is a 82% discount towards it's current share price.
The group is not shy of some other assets as they are currently sitting on
- Cash and Cash Equivalents of RM93.6m (RM 0.26 per share)
- Bukit Kemuning, Shah Alam, 20 acres
- Morib, 180 acres
- Mont' Kiara, 3 acres
Driven by the Datuk Ng Thian Hock and his family, the group had a
diversified business activities ranging from Oil Palm Plantation, Hotel
Management and Automotive Spare Parts. The Ng family owned more than 70%
of shareholding in A&M Realty, which is also the major owner in
HIL Industry Berhad, a cash rich company with quite a number of property and land.
The current financial statement in
A&M will see an increase in
the EPS with FYE 2013 at 8.79 cents behind a revenue of RM141.8m as NTA
stood at RM 1.50 with most of the lands and property not valued as long
as 30 years back. The company should be announcing a dividend of 1.5 cents a share in the coming days.
A&M will be looking set to focus on
Amverton Cove with a RM10 GDV over 15 years as well as
Amverton Park in Bukit Kemuning with a GDV of RM315m, a figure big enough to be able to keep the company busy. As of current, Amverton Cove Golf and Islan Resort is completed.
In my opinion, A&M will be very prospective in the coming near term
with more superb surprises to come as Datuk Ng and the family deliver.
Datuk Ng is on the process of injecting a 145 acre land in Sungai Buloh
through Unik Sejati Sdn Bhd, which will further boost the value of the
company with the current hot development in Sungai Buloh.
To add
sugar on honey, there are major plans from Hong Kong tycoon Li Ka Shing
on developing the northern region of Carey Island for it's business
expansion.
A&M will definitely a worthwhile stock for a long term investment based on
- 2000 acres of land in Carey Island, with a land valued of more than
RM2b (based on RM5.75 psf), and Amverton Cove which is a notable RM10b
GDV for 15 years.
- Amverton Park at Bukit Kemuning, 20 acres with current GDV of RM315m
- Mont' Kiara, 3 acres.
- RM93.6m cash and cash equivalents
- Datuk Ng Thian Hock asset injection - 145 acre of Sungai Buloh land
- Hong Kong Tycoon, Li Ka Shing business expansion planning at Carey Island
A&M should be look set to challenge RM 1.20 in a short term, and a
longer tenure prospect will see the stock driving up to RM 1.50 to RM
1.70 in the coming days.
Joining the game of leaving out? You decide.
Bone's short term TP: RM 1.20
Cheers and have a nice day.
Regards,
Bone
Based on that, 2,000 acres is worth rm400mil, why say worth rm4.2bil?