HOW MUCH DO YOU THINK PAOS WILL GET FROM LAND REVALUATION OR CASH FROM POTENTIAL LAND SALE FOR MALAYSIA HIGH SPEED RAIL DEVELOPMENT

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In my previous posting on PAOS, I mentioned on the potential of factory land acquisition by myHSR for the construction of HIGH SPEED RAIL HSR PUTRAJAYA station around the area of Banting.

Read more info here

Target Invest KLSE: MALAYSIA HIGH SPEED RAIL PUTRAJAYA STATION POTENTIAL SITE TO SEE LAND ACQUISITION INVOLVING PAOS FACTORY IN BANTING (targetinvest88.blogspot.com)

According to the annual report, PAOS properties had been sitting in net book valued more than 20 years ago. With the potential coming on HIGH SPEED RAIL HSR PUTRAJAYA STATION taking it's factory land, there will be a need for revaluation of properties in order to reflect the right price for the purchase.

Let's take a look on the properties asset of PAOS.

The potential asset near HIGH SPEED RAIL HSR PUTRAJAYA will be NO.3, JALAN GANGSA, KAW PERUSAHAAN BANTING, 42700 BANTING, SELANGOR.

The land area is 119,356sf (Around 2.74 acre), sitting at RM 2.6 million in valuation.

According to the latest transaction around that area taken from BRICKZ.MY 

Let's say PAOS FACTORY land area is RM 200 PSF in average, the subject property will be valued at RM 23.87 million, an stunning increased of RM 21 million. (Current book value is just being 10% of the real market value)

What about the value for the main office at Shah alam?

The land in Shah alam is 254850sf, around 5.85 acre.

Current price at the industrial area is transacting at RM 230 PSF in average.

Which mean, PAOS factory at Section 15 shah alam will be looking at RM 58.61 million on average, a big increase of RM 47.11 million.

Combining both, the revaluation gain will be RM 68.11 million. The revaluation exercise will potentially bring in 37.5 cents in EPS.

What is more intriguing is the recent transaction surrounding this area where factory transaction are going on in a group. The transaction could be looking to see HSR railway alignment going from banting into shah alam and turning to bandar Malaysia.

If this really happen, PAOS will stand to receive almost RM 70 million in land sale for HSR construction.

I would like to inform my reader that I am invested in PAOS due to

1. Asset being very undervalued with net book value more than 20 years ago

2. Asset highly potential for conversion into cash through malaysia HIGH SPEED RAIL Land Acquisition

3. Asset highly link with movement in HWATAI

I will continue to stay invested in PAOS to see the excitement of the Malaysia High Speed Rail development.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

MALAYSIA HIGH SPEED RAIL PUTRAJAYA STATION POTENTIAL SITE TO SEE LAND ACQUISITION INVOLVING PAOS FACTORY IN BANTING

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Malaysia is picking up steam on the progress of HSR. While the main place of the station is well known, such as Bandar Malaysia, other places such as Putrajaya, Seremban, Melaka is a guess for most.

Earlier, Target Invest spot a potential location of HSR Batu Pahat landing. You can find it here

Target Invest KLSE: HWATAI - FROM SELLING BISCUIT TO SELLING LAND FOR HSR BATU PAHAT ? (targetinvest88.blogspot.com)

Today, Target Invest would like to make a very good guess on the possibility of the potential location of HSR Putrajaya station and railway line alignment.

After a series of studies, the potential site for the MALAYSIA HIGH SPEED RAIL HSR Putrajaya Station might be landing at Banting.

It will be the best alignment as it will not cut through the KLIA from Seremban. And the location will still have a good proximity to KLIA.

Zooming into it, I will place my bets on the site being here at Banting Industrial area.

The area will eat up a huge place for railway path, parking and other infrastructure.

The site will potentially take up a few factory as to make way for station and railway.

PAOS HOLDING BHD will be in the vicinity of the land for the Putrajaya HSR station and railway which is highly potential to see land acquisition.

There is also a very high co-relationship in Batu Pahat land acquisition and Putrajaya in terms of share prices of potential company involving in land sale.

As of my previous blog, Batu Pahat potential candidate is HWATAI.

Today reveal of Putrajaya candidate will be PAOS.

As you can see, HWATAI and PAOS share price movement are identical on the time frame.

They also have identical shareholder which can further give the case a better boost on the linkage that this 2 companies are going to see their land asset being buy back for HSR station or railway.

So what do you think of this piece of information?

PAOS -> HSR PUTRAJAYA

HWATAI -> HSR BATU PAHAT

HOW MUCH IS MY PREDICTION ON SHARE PRICE MOVEMENT?

BASED ON 100% RETURN THEORY (MY OWN THEORY),

HWATAI COULD BE RM 1.20

and

PAOS COULD BE RM 1.00

If you cannot buy land to capture the opportunity, probably buying shares can get some fractional exposure towards the excitement in the development of the HSR news.

PLEASE BE INFORMED THAT I AM IN NO POSITION LINK WITH ANYONE WITH HSR INFORMATION, GOVERNMENT PERSONNEL, OR INSIDERS. ALL INFORMATION IS PURELY BASED ON EXISTING AVAILABLE INFORMATION ON THE INTERNET, ANNUAL REPORT AND SHARE PRICE MOVEMENT. ALL THE ABOVE INFORMATION IS JUST MY VIEW ON POTENTIAL HSR DEVELOPMENT SITE BASED ON ANNUAL REPORT LAND ASSET, SHARE PRICE MOVEMENT AND COMMON SHAREHOLDERS.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

E-invoice candidate, who is the best deal now?

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Malaysia is launching on e-invoice test run on the month of May 2024, while the 1st batch of compulsory participating company with annual revenue above rm 100 million will go live on August 2024.

So while the trend is going to be picked up soon, let me show you some of the listed company that are involved in e-invoice/ pos system / erp system.

Here is 4 commonly known listed player in KLSE

1. ADB - 0276

2. CENSOF - 5195

3. IFCAMSC - 0023

4. PANDA - 0290

ADB and PANDA is the 2 companies that went IPO within the past 12 months period.

1. ADB

ADB annual revenue is around RM 40 million, with net profit at rm 12 to RM 13 million region

Market capitalization for ADB is RM 522 million with share price at 95 cents region

2. CENSOF

Censof got 2 types of customers. Government and commercial. On the commercial side of business, Censof software sales is around RM 25 million (Since e-invoice is only for commercial business)

The profit for the commercial customer is around RM 7 million annually on average.

3. IFCAMSC

IFCAMSC got the higher revenue compared to all the other, averaging RM 75 million for it's software services. However, it lacks on net profit margin, with the latest 4 quarter net profit at just RM 2.6 million. IFCAMSC can go further if they embark on internal operating cost restructuring.

Market cap is RM 200 million at the current share price.

4. PANDA

Panda annual revenue is around RM 23 million, with net profit at RM 4.3 million range. The market cap for PANDA is now at RM 208 million. The share price has seen a good run forward in the midst of implementation of e-invoice.

TARGET INVEST OPINION

In my opinion, CENSOF and PANDA commercial customer revenue base is very comparable, which is sitting at the range of RM 25 million. However, looking at the valuation, PANDA is currently valued at RM 200 million while CENSOF is just RM 140 million. That is not including the government side of business profit that CENSOF is bringing in to the shareholder.

Should CENSOF trade towards RM 200 million market cap valuation, CENSOF share price will be trading at RM 0.36 per share.

Current share price (RM 0.25) of CENSOF is 30% below valuation for peer to peer comparison on commercial SME customer base. Adding in government revenue and profit will bring CENSOF value more than RM 300 million.

What do you think of the 4 selections? Which one is undervalue?

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

HWATAI - FROM SELLING BISCUIT TO SELLING LAND FOR HSR BATU PAHAT ?

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Malaysia government had restarted the HSR (KL-SG) project under Prime Minister Anwar Ibrahim. Ever since then, listed company especially property developer with prime land located near to those subject area had been going up strongly.

This big project will be carrying a mega price tag worth more than RM 100 billion, which include land acquisition and infrastructure construction cost.

As of the latest, three consortia is believed to be on the short listed candidates.

Three consortia believed to be on shortlist for KL-Singapore HSR project (theedgemalaysia.com)

The three consortia are YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd, Malaysian Resources Corp Bhd-IJM Construction Sdn Bhd-Berjaya Rail Sdn Bhd-Keretapi Tanah Melayu Bhd (MRCB-IJM-BRail-KTMB) and a Chinese consortium said to be led by state-owned China Railway Construction.

Most of the developer sitting in big plot of prime land in Johor had saw share price riding up high. While Bandar Malaysia co-owner IWCITY saw share price double up from 40 cents to 80 cents region. UEMS from 25 cents to RM 1.20. SPSETIA from 50 cents to RM 1.40. While those are the big names that had liven up, there are smaller player which will be benefiting from the land acquisition.

I will zoom into the HSR BATU PAHAT station.

As you can see, the HSR station will be from Jurong West -> Iskandar Puteri -> Batu Pahat -> Muar -> Ayer Keroh -> Seremban -> Putrajaya -> Bandar Malaysia

For the case of Batu Pahat, the only best possible slot to go through the town city will be the small neckline of land which comprises of a few old factories.

According to research and studies, the potential proposed station will be most probably on the east side, and follow by an elevated railway that will cut through the northern side of Batu Pahat.

The best possible location is owned by Hwatai biscuit factory.

The current land occupied by Hwatai are all leasehold. Most of the land are not revalued. While remainder lease is low, there are many hidden value inside the land that could possibly bring Hwatai worth more than RM 150 million from compensation.

Based on oustanding shares of 74.833 million shares, that compensation will give Hwatai a war chest of RM 2 per share.

Currently, HWATAI shares is trading at 55 cents. What is to be seen in the future when the HSR railway is confirmed will be the revealed soon.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

MAGNIFICIENT 7 SPENDING ON DATA CENTER EXPANSION GIVING SEAGATE A BIG LIFT UPWARDS, WHAT ABOUT MCLEAN?

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If you had been following my updates on Mclean, you would know that Mclean major customer in surface treatment and cleaning services is mainly provided to SEAGATE in Thailand and Singapore.

Mclean performance will be highly related to SEAGATE performance.

And now with the MAGNIFICIENT 7 company pumping in multi billion into data center to cater for the coming demand from GENERATIVE AI. While high end graphic processor from NVIDIA is the main actor in GENERATIVE AI, the whole equation cannot be completed without ample of storage capacity, where SEAGATE HDD will come into play.

Let's take a look at how much big corporate are spending into the next generation data center.

Microsoft, OpenAI plan $100 billion data-center project, media report says | Reuters

Microsoft + Open AI = USD 100 billion

Oracle (ORCL) Sales Beat Estimates as Cloud Growth Stabilizes - Bloomberg

Oracle unveils $10B data center expansion plan | Construction Dive

Oracle, USD 10 billion

Google to invest $1 billion in UK data centre | Reuters

Google expanding on UK data center - usd 1 billion

Amazon Bets $150 Billion on Data Centers Required for AI Boom - Bloomberg

Amazon - usd 150billion 

Meta projects $35 Billion expenditure in 2024, mostly on AI data centres - The Tech Capital

Meta, Facebook - USD 35 billion

With so much interest being center into AI and Generative AI, analyst are looking at spending capex of more than USD 1 trillion by 2027

 

Data center capex could top $1 trillion by 2027 thanks to AI (silverliningsinfo.com)

Seagate as the leading HDD supplier in market command 43% of market share. With the latest launch of HAMR HDD, SEAGATE will be looking to capture more market share back into it's fort.

With a projection of more than USD 1 trillion looking to be spent into data center in the next 4 years, what is going to be of Mclean, being a critical supplier for surface cleaning and treatment for Seagate?

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

MCLEAN TURNAROUND FORTUNE WITH AI

 Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

Mclean had been laying on the low for quite a while after a sensational run from cryptocurrency chia coin craze. The company shareholder then proposed for a new business injection, however the proposed business did not materialize, which might be a blessing in disguise as Mclean is able to focus back on what they do best - providing surface cleaning services to their main customers - SEAGATE Thailand and SEAGATE Singapore.

WHY SEAGATE DEVELOPMENT IS IMPORTANT TO MCLEAN ?

Mclean provide it's expert services in tray cleaning, surface treatment and cleaning to it's main customer SEAGATE. SEAGATE business going up or down is very important to Mclean.

As we can see from chart, SEAGATE share price has some co-relation with Mclean

By comparison, you can see that SEAGATE share price is up during 2021/2022 era, which is almost similar to Mclean 2021 surge which is due to Chia Coin cryptocurrency launching which farm coin using storage space. However, the craze fizzle out as more and more coins come out to the market.

The new surge in HDD storage space demand will be due to GENERATIVE AI entering into production stage. Generative AI will be the next big thing as big corporate like Apple, Google, Meta, Microsoft, Oracle are pumping in more than USD 1 trillion to build data center.

The latest invention from SEAGATE - 30 to 32TB HAMR HDD (Heat assisted magnetic recording) can be scaled up until 50tb in the future. The HDD is on the green light for mass production now and all big corporation is spending big and giving big orders to storage space provider like SEAGATE, WESTERN DIGITAL AND TOSHIBA.

As you know MCLEAN is highly relatable to SEAGATE, the coming GENERATIVE AI push will definitely see SEAGATE going busy for the next 10 years.

For the case of MCLEAN, do you see this as an opportunity or miss?

I will discuss more on Mclean further again.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

WHY I AM INVESTED INTO CENSOF

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As you can see, I am definitely invested in the e-invoice ecosystem. While there are many players in this industry, some are public listed and some are unlisted entity.

While I am in invested in almost all of the public listed company in KLSE which offer e-invoicing / ERP system / POS system, I found a stronger liking to Censof due to several reason

1. Strong relationship with the Malaysia government. Censof is providing software solution service to critical government services in Malaysia.

2. Established player in the POS / ERP ecosystem, with various software catering for different industry from F&B, Manufacturing and construction.

3. Have established pool of customer connected into PEPPOL framework in Singapore, Hong Kong

4. Strong cash flow and giving dividend for past 2 years

5. Net cash company

The ERP research and development is developing very fast, especially with the emergence of Artificial Intelligence.

Soon, ERP system will be equipped with AI to provide insight, projection and probably solution to business owner, which will further put deeper valuation to software provider company.

With such solution running on SaaS (Software as a Service) on cloud internet, and the requirement of the Malaysia government to mandate e-invoice as a compulsory implementation to all businesses by 2025, subscription and renewal fee will be a solid cash flow.

Censof already break out from long term down trend. New trend is back up with e-invoice factor to support stronger fundamental.

While it will take some time to see revenue coming in, however, I think the current share price is very good for long term investor looking for both capital gain and dividend yield in the future.

My previous posting on Censof

Target Invest KLSE: CENSOF GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION (targetinvest88.blogspot.com)

Target Invest KLSE: Malaysia to incentivize digitalization with RM 100 million grant, to benefit CENSOF and others ERP provider (targetinvest88.blogspot.com)

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88