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DATE : 07 NOVEMBER 2017
Stock : BKOON (0.525 cts)
Call Warrant : BKOON-WA ( 0.315)
Target Price : 0.55 cts (1st) / 0.60 cts (2nd)
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THE PROFILES
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Boon Koon Group Berhad is a Public Listed Company traded in the Malaysia Bursa since 2004 is an innovative investment company with a fresh new approach to both traditional and emerging markets. The company has created a diversified portfolio which presents the optimal balance between the current return on investment and future growth. Boon Koon Group Berhad focuses on activities areas: Commercial Vehicles, Industrial, Commercial Handling machineries and Equipment, End Financing outfit and Property Development Investment. Boon Koon Group Berhad is a company with offices in the Penang, Kuala Lumpur, Johor and Kota Kinabalu.
Company Network :
Boon Koon Group Berhad
Boon Koon Vehicles Industries Sdn Bhd
Boon Koon Fleet Management Sdn Bhd
BKCV Sdn Bhd
Hitachi Capital Malaysia Sdn Bhd (Associates)
CNMY Trucks Sdn Bhd (Associates)
BKGM Industries Sdn Bhd (Associates)
THE KEY OF INTREST : [EGM On 21th November 2017]
ORDINARY RESOLUTION 1
PROPOSED JOINT DEVELOPMENT VIA THE JOINT DEVELOPMENT AGREEMENT DATED 29
JUNE 2017 BETWEEN PLATINUM EMINENT SDN BHD (“PLATINUM EMINENT”), A WHOLLYOWNED
SUBSIDIARY OF AERA PROPERTY GROUP SDN BHD (FORMERLY KNOWN AS
ASTHETIK PROPERTY GROUP SDN BHD) AND BKG DEVELOPMENT SDN BHD (“BKG”),
A WHOLLY-OWNED SUBSIDIARY OF BOON KOON FOR THE IMPLEMENTATION AND
COMPLETION OF A COMMERCIAL DEVELOPMENT PROJECT COMPRISING INTER-ALIA
TWO (2) BLOCKS OF TWENTY-NINE (29) STOREYS EACH WITH A TOTAL OF 752 UNITS OF
SERVICE APARTMENTS, A PODIUM BLOCK COMPRISING THIRTEEN (13) RETAIL UNITS
OF SHOPLOTS, ONE (1) BASEMENT CARPARK AND EIGHT (8) STOREYS CARPARK ON A
PIECE OF LEASEHOLD LAND HELD UNDER HS(D) 316525, PT6551, BANDAR PETALING
JAYA SELATAN, DISTRICT OF PETALING, STATE OF SELANGOR BEARING POSTAL
ADDRESS OF JALAN PJS 5/28B, PJS 5, PETALING JAYA, SELANGOR (“PROPOSED JOINT
DEVELOPMENT”)
ORDINARY RESOLUTION 2
PROPOSED DIVERSIFICATION OF BOON KOON’S EXISTING BUSINESS TO INCLUDE THE
PROPERTY DEVELOPMENT BUSINESS SEGMENT (“PROPOSED DIVERSIFICATION”)
ORDINARY RESOLUTION 3
PROPOSED SPECIAL ISSUE OF UP TO 55,350,000 NEW ORDINARY SHARES IN BOON
KOON TO THE INDEPENDENT THIRD PARTY INVESTOR(S) TO BE IDENTIFIED (“PROPOSED
SPECIAL ISSUE OF SHARES”)
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THE KEYNOTE
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BKOON (JAN) - The commercial vehicle manufacturer announced the disposal of its remaining 25% stake in Hitachi Capital Malaysia Sdn Bhd for RM22 million, from which it expected to net a disposal gain of about RM16.1 million. It said ownership of the stake did not fit into the group’s long-term strategy. In the second quarter ended Sept 30, 2016, Boon Koon posted a 21% increase in net profit to RM311,000 from RM256,000 in the previous corresponding quarter, as revenue grew 13% to RM26.39 million from RM23.35 million.
BKOON (MAR) - Rebuilt commercial vehicle manufacturer Boon Koon Group Bhd’s share price continues to charge ahead. The stock hit a day’s high of 32 sen before it ended the day at 30 sen the highest level since December 2011. Boon Koon’s share price has more than doubled since the start of the month, rebounding from the low of 11.5 sen on Feb 28. The keen interest in the stock could be driven by the proposed sale of a 25% stake in Hitachi Capital Malaysia Sdn Bhd for RM22 million cash. Should the sale materialise, this would give an instant boost to the company’s cash coffers. As at Dec 31, 2016, the company’s cash balance stood at RM5.59 million, while its borrowings were at RM30.53 million, including short-term borrowings of RM28.7
BKOON (APR) - Will use a portion of the RM22mil raised from the disposal of its stake in Hitachi Capital Malaysia Sdn Bhd to assemble new light commercial vehicles and motorcycles. Group executive chairman Datuk Goh Boon Koon told that the group already had the commercial and energy-efficiency vehicle licences to produce the light commercial vehicles and motorcycles at its plant in Nibong Tebal. “We are now waiting for the economic environment to improve before launching the new products, which could be later this year or in 2018. “The rest of the proceeds is for existing business and other new business, if any, and to defray expenses for the disposal of the stake,” he added.
BKOON (APR) - Chin Hin Group Bhd founder and deputy group executive chairman Datuk Chiau Beng Teik has bought a 15.19% stake or 42.03 million shares in Boon Koon Group Bhd.
BKOON (JUN) - Intends to diversify into property development. To do that, Boon Koon will jointly develop a residential project with Platinum Eminent Sdn Bhd, a wholly-owned subsidiary of Aera Property Group Sdn Bhd, in which its controlling shareholder Datuk Seri Chiau Beng Teik is also the stakeholder. “The expansion of Boon Koon group’s business into property development is part of the company’s strategy of diversifying into other industries with strong growth prospects instead of depending solely on its existing core manufacturing business,” it said. “The board expects the property development business segment, under the proposed joint development, to contribute up to 25% of the net profits and/or net assets of the group,” it added.
BKOON (AUG) - Expected to generate at least RM3 million in profit before tax (PBT) for the current year ending Dec 31, 2017, as the company undertakes cost-cutting and internal restructuring measures. Boon Koon director Chiau Haw Choon said the company's internal restructuring and cost-cutting measures were beginning to show results.
BKOON (AUG) - Saw almost a tenfold surge in its net profit to of RM3.12 million in its first quarter of financial year 2018 (1QFY18) ending March 31, 2018 from RM300,000 recorded in 1QFY17. Boon Koon Group said this was on the back of a 10% rise in revenue at RM29.33 million from RM26.55 in the preceding year. Prior to this, the Group has been in the red for five consecutive financial years.
BKOON (AUG) - Over at its property development segment, Boon Koon is currently looking at utilising its own Johor land parcels to develop a semi-detached factory for small and medium industrial users, with a gross development value (GDV) of RM75 million. The industrial project is to be launched in 2QFY19, and is expected to generate RM25 million additional profit then. Boon Koon is also on the lookout for suitable land banks in the Klang Valley to develop high-rise, affordable properties on its own or with its JV company, with some already in the negotiation stage. The company expects a double-digit bottomline growth starting from FY19, which is when its property development segment will start to be recognised, including its ongoing Aera Service Residence JV project with Aera Property Group Sdn Bhd.
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WHAT IS KIM VIEW?
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"This share on my lists 45 - 48cts level. Last run at 0.54 cts and failure to defend and sustain. But the price stablized strong support at 0.52cts level. I like to see this stock break 0.55cts to move toward to test 0.60cts. By closed up on the line 0.525 might be increase volumes by this week to light up a new games. Good Luck!" - Kim Spartan
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THE FINANCIAL
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Regards,
Kim Stockwatch
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