DRBHCOM (1619) - 2nd Reposting on DRB HICOM: 20 Reasons Why This Is The Top Stock For Year 2017 (Calvin Tan)
Hi Guys,
As Expected DRB's latest Quarter Show a positive 18.26 sen Gain From Corwin's Asset Disposal. This has fully redeemed itself from the previous quarter loss of 16.02 sen.
This spectacular turnaround was due to many positive factors
1) Asset disposal of Corwin garnered Rm529 Millions
2) POS ' profit is now incorporated into DRB's Account
3) Sale of New Proton Models - especially Proton Ertiga is capturing back loss market share
4) Service divisions like Puspakom & Logistic continue to perform well.
February month is now over With Its Fantastic Turnaround Results.
Today, we move on to the ECOMMERCE MONTH of MARCH 2017 as Jack Ma is coming to Malaysia to launch E Commerce Free Trade Zone. EXCITING TIMES AE COMING FOR ALIBABA JV WITH DRB/POS!
THIS WILL BE THE FOCUS OF THE MONTH AS PROTON JV WITH PEUGEOT/GEELY WILL BE PLACED AT THE BACK BURNER. IT WILL COME ALIVE AGAIN BY MID 2017
Remember to sit back and watch All The Interesting Developments lined up for DRB-HICOM & POS
CASH INFUSION FROM SALE OF 8x8 DEFENSE TANK FOR EAST MALAYSIA
RM5,000 DISCOUNT BY PROTON IRIZ FOR GRAB & UBER TAXI
MORE SALE OF MOTORBIKE DUE TO GOVT LOAN LIMIT RAISED FOR MOTOR BIKE FROM RM5,000 TO RM10,000
EXPANSION OF ISLAMIC FINANCE & ISLAMIC PAWN SHOP LOAN BY 700 POS BRANCHES
IN BOUND TOURISM WILL FILL DRB'S RESORTS
ABOVE ALL: THE SALE OF HALF BILLION RINGGIT CORWIN ASSET IS THE FORERUNNER OF THE UNLOCKING OF BOTH DRB & POS HIGHLY VALUABLE ASSETS!
EXPECT COPIOUS AMOUNT OF MONIES TO FLOW INTO DRB'S COFFERS
HOLD TIGHT - DRB IS GOING INTO A MULTI YEAR POWERFUL UPSIDE FOR YEAR 2017 & 2018 UNTIL GE14 ELECTION DAY
HIP HIP HOORAY!
Warmest Regards
Calvin Tan
Singapore
20 Reasons Why DRBHicom will perform well for Year 2017 (Calvin Tan)
Author: calvintaneng | Publish date: Tue, 13 Dec 2016, 02:27 AM
These are the REASONS you must investigate carefully:
1) GE14 IS ON!
Umno Wanita has asked for prominent positions to be given to Malays in GLC during UMNO Meeting.
This shows that GLC Linked Stocks are well connected politically. So DRB is on target to go up!
2) CASH OF 13 CTS FOR POS SHARE PRICE RISE
Last report showed a deduction of Rm130 mil due to Pos remeasurement. By the same token Now that DRB's 53.5% share of POS has gone up from Rm3.26 to Rm3.93 there is a Rm280 Million gain or about 13 cts. So next quarter result should register at least 13 cts gain.
3) Disposal of Corwin Generates Another Rm529 Milllion Gross Profit for the qr of Feb 2017.
This will help to reduce the gearing & borrowings of DRB Hicom
4) DRB QUALIFIES AS A GRAHAM NET NET BUY!!
Price at Rm1.02 With NTA Rm3.16 DRB is selling at A Huge Margin of safety. This qualifies as a Ben Graham Net Net Stock.
No wonder value investor like Lim Pei Tiam is top 30 share holders! If Walter Schloss is alive he will surely include DRB in his portfolio! And Walter Schloss is one of the SUPER INVESTORS of All Time according to Warren Buffet!
5) DRB GOT POS. NOW 53.5% OWNERSHIP. A POWERFUL MONOPOLY
POS is a monopoly & has 200 years history. So it is highly defensive!
6) DRB Also Own PUSPAKOM ANOTHER POWERFUL MONOPOLY
Another monopoly! Warren Buffet likes company with a defensive moat. So DRB has not one but 2 defensive moats: POS & PUSPAKOM!
7) OWN 70% Of Bank Maumalat
This Islamic Bank also got Islamic Pawn shop. Like RceCap this is another Cash Cow!
8) POS/DRB going into the HUGE ECOMMERCE ONLINE MARKET THROUGH A STRATEGIC MERGER!
This 53.5% of POS position by DRB enables both to GO BIG TIME INTO THE SUN RISING INDUSTRY OF ECOMMERCE
Amazon of USA & Alibaba of China captured the traditional businesses by storm.
The same is now happening in Malaysia. Next year is Internet Digital Year of ECommerce\
9) HOT NEW! NEW NEWS! JACKMA COMING By MARCH 2017 TO LAUNCH E FREE TRADE ZONE!
POS Has Planned JV with Alibaba of China!! This March ECOMMERCE Will Dominate the Headlines of all Media, Newspapers, Researchers & Analysts
10) At Rm1.20 DRB Qualifies as Calvin's 3rd Rule
HE THAT IS LOW NEEDS FEAR NO FALL
11) Roaring Sales of Proton Ertiga
Suzuki Ertiga is
Top Champion Seller in India
Top 2 Champion in Indonesia
Top 10 Best Seller in Philippines
In Ulu Tiram, Yong Ming Motor Dealership the response is so good that even the test drive display unit was sold & driven away immediately! Proton might JV with Suzuki to capture back market shares
12) Unlocking of POS/DRB landbanks
There is deep value hidden in POS/DRB landbanks.
Pos Malaysia’s land value ripening but not for Khazanah
Apart from operating a sprawling nationwide network of postal service outlets, the golden egg in Pos Malaysia Bhd’s nest is the strategic land its properties occupy.
But with the recent sale of Khazanah Nasional Bhd’s 32.21% stake in Pos Malaysia to DRB-Hicom Bhd for RM622.8 million, it appears that the national postal operator’s valuable landbank had been given little time to ripen.
As part of the deal, Pos Malaysia has to obtain Federal Land Commission (FLC) approval for some 16 pieces of leased land to also be used for commercial purposes, in addition to postal services.
Should Pos Malaysia fail to secure the liberalisation of land usage by year-end, Khazanah Nasional shall refund DRB-Hicom part of the RM17.3 million which formed the total purchase consideration.
The four large pieces of land Pos Malaysia directly owns have a combined size of 10.5ha and an estimated market value of RM218.5 million, according to AmResearch’s data.
This includes Pos Malaysia’s Pos Laju centre and a vehicle warehouse along Jalan Tun Sambanthan in Brickfields, not far from KL Sentral.
AmResearch estimates that the 0.9ha Brickfields land alone is worth some RM176.3 million or RM1,500 psf.
This is not bad given that the estimated net book value of the land was a mere RM2.2 million.
Surely, this begs the question as to whether Khazanah Nasional and by extension, the government, could have gotten a better deal had it first obtained the green light for reclassification of the land before putting up the stake for sale?
Pos Malaysia has been holding these properties for a very long time, but there had been no real push in the past to obtain approvals to develop commercial properties on the land.
It is worth noting that there are 16 properties leased by Pos Malaysia from the FLC which are pending reclassification.
The most valuable land awaiting a status transfer is Pos Malaysia’s 1.3ha on Jalan San Peng, near the proposed Pudu Jail land redevelopment site by UDA Holdings Bhd and its joint venture partners.
AmResearch said it is positive about the liberalisation negotiation on the land, which currently houses workers’ quarters.
The research house estimates the prime land to be worth RM107.4 million, compared with its book value of just RM6 million as at end-2009.
According to calculations by AmResearch, Pos Malaysia could see a 55 sen per share revaluation surplus by just taking into account the four plots of land directly held by the company and assuming a successful bid to reclassify the Pudu land for commercial purposes.
In late April, OSK Research was among those who had opined that the RM3.60 per share acquisition price was unattractive, shortly after Khazanah Nasional’s decision to divest its shareholding in Pos Malaysia to DRB-Hicom had been announced.
Among other reasons, OSK Research said the price DRB-Hicom was paying for the strategic stake did not adequately reflect the value of Pos Malaysia’s landbank.
DRB-Hicom may have been able to bargain for the purchase consideration to exclude the potential future land premium given that DRB-Hicom would have to inject substantial investments to refurbish post offices and upgrade IT infrastructure, OSK Research said.
Analysts expect DRB-Hicom, a company controlled by tycoon Tan Sri Syed Mokhtar Albukhary, to unlock the value of Pos Malaysia’s land by embarking on redevelopment projects instead of going the route of selling the land outright.
“We believe that with the impending entry of DRB-Hicom and its property development arm, Hicom Properties Sdn Bhd, Pos Malaysia may co-develop the land with new owners,” AmResearch said in note in April.
If this comes to be, the government is effectively excluded from realising the full value of the land Pos Malaysia occupies.
Khazanah Nasional’s divestment of its stake in Pos Malaysia after a keenly watched bidding process had put pressure on the latter’s stock price since April.
13) POS is a Monopoly with Pricing Power. POSTAGE PRICE INCREASE!!
Pos Malaysia plans up to RM200m expansion
The wholly owned subsidiary of Pos Malaysia, PosLaju is planning to spend up to RM200m to build 3 more integrated parcel centres (IPC) for the expansion of its express and courier service’s capacity. IPCs are “fully automated” centres and rely heavily on automated machines with only 20% manual intervention. The expansion for PosLaju is necessary in view that e-commerce is growing tremendously and as enhancement to its services as the main postal provider in Malaysia.
The three new IPCs will be able to increase the parcel processing capacity of PosLaju to 1.5million items per day from the current 400k items per day. – The Edge
Calvin comments:
There is a projected rise of 90 cts for each parcel delivery.
If Pos Laju expands to 1.5 mil items per day it means
1.5 mil x .90 cts = Rm1.35 millions per week day or Rm6.75 mil per week.
And for 1 year = 6.75 mil x 52 = That's Rm351 millions extra profits per year.
This is the pricing power of a monopoly like POS. No wonder DRB has increased its stake tp 53.5%.
14) POS has many other Landbanks: One of them is in JB with 217778 sg ft lands. Book value is Rm11,560,702 or Rm53.00 psf or about S$16.50 psf
IOI just bought a plot of land near Marina May, Singapore for S$2.6 Billion which worked out to almost S$1,700 psf
And DRB has 25 million sg ft of lands in Tebrau, JB with a book value of only Rm18.50 psf (or S$5.75 psf!!)
When Shenzhen was first launched Lands nearest Hong Kong fetched only a fraction of the price in HK. Later it was narrowed to 1 HK is to 6 Shenzhen value. And then Shenzhen prices overtook that of HK!
With Booming Construction in Iskandar POS/DRB Johor Lands are bound to go up.
15) HSR Signing Today!
All of POS/DRB prime prime land banks will also appreciate further by High Speed Rail Commection. Especially POS lands which are sitting on gold mines.
During last Budget Speech Pm Najib mentioned these which will directly benefit DRBHicom
16) Purchase of 8x8 Defense Tank for Sabah
This will boost DRB coffers directly
17) PROTON IRIZ (AS UBER TAXI)
A special Rm5,000 rebate will be given for PROTON (No other brand mentioned) IRIZ for Uber Taxi
18) MOTORBIKE LOAN INCREASED FROM RM5,000 to RM10,000
DRB manufactures MODENAS BIKE Also Make Engines for all other Bikes
There is a huge surge in demand in Johor. Lots of Johoreans are going into Spore by bike for work everyday. Demand for motorbikes here exceed supply!
19) INCREASING ROAD FATALITIES : PUSPAKOM MIGHT FOLLOW SINGAPORE VICOM FOR YEARLY INSPECTION FOR VEHICLE ROADWORTHINESS
Puspakom inspects every car before transfer of registration. It also inspect yearly the road worthiness of commercial vehicles like buses, lorries & blind vans.
One day due to the high accident rate in Malaysia Govt might follow Singapore's VICOM by requiring the inspection of even private cars for roadworthiness due to the high rate of accidents in Malaysia.
Just like MyEG Puspakom is a Monopoly. Just as MyEG has pricing power So Puspakom can also raise prices. Both are Cash Cows.
20) DRBHICOM - A Stock Whose Time Has Finally Come!
GE14 is now on! And DRB is a GLC Linked Stock!
This year 2017 is the Year for Digital Internet ECommerce
And This March 2017 Jackma of Alibaba will launch E Free Trade Zone & JV with POS/DRB
DRBHCOM (1619) - 2nd Reposting on DRB HICOM: 20 Reasons Why This Is The Top Stock For Year 2017 (Calvin Tan)
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/117190.jsp
