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Hi guys,

We have waited and finally Naim is calling for Egm to conclude sale of lands to Sarawak Government for Rm340 Millions Cash

This is about 68 sen Pure Cash

Of this Rm340 Millions Naim will allocate Rm90 millions as reward for share holders which is a very generous 18 sen Cash per share equal to 22.9% yield

Since Malaysia Int rate has fallen to only 1.75% this means 13 years int paid upfront


As Malaysian Banks are going thru 6 months moratorium for property lenders Banks now got cash contrain

So many listed Companies finding it hard to borrow are asking for Cash calls through Rights Issue after Rights Issue

So it is indeed refreshing that Naim is Giving out this very generous 18 sen dividend


And these are the Top Reasons why Naim is good

1) At 78.5 sen with NTA of Rm2.60 Naim is selling at a Whopping 70% Discount to NTA. This is more than twice the 30% discount required by Benjamin Graham


2) A check with NAIM NTA they consist of

i) Real Estate in the Vast Territory of Sarawak. Many still at old book value

These two pieces sold have generated a profit of Rm110 Millions or about 22  sen profit

At Rm340 Millions sale value 68 sen Naim making 22 sen means a profit of 32% from Land Investments


ii) Naim is also the Top Holder of both Dayang & Perdana

If Naim were to sell off Dayang it will get another 51.5 sen PURE CASH.

If Naim wants to it could also give out more Cash as Dividend. And Naim still got Rm13.3 Millions in Perdana


3) Already Flowing with Deep Value The Sale of Lands Near Bintulu to SARAWAK ECONOMIC DEV BOARD (Under Sarawak Chief Minister) will now bring in more than 70,000 new jobs

So Naim has planned to build 2,500 affordable houses here for sale at Rm300,000 per unit

From recent records these Single Storey houses at Rm300,000 are selling like Hot Cakes


4) As many are still unaware (just as they were unaware of our highlights on Palm Oil bull run) It is the best time to invest in Naim early while others are still oblivious to its great potential


5) And these are the Unfolding Events Still Ahead

On Oct 6th Naim EGM will pass resolution for Land Sales to Sarawak Economic Dev

Once approved then will come 18 sen 0r Rm180 dividend per share (Highiest in Malaysia)

Dividend to shareholders (Refer to Naim Announcement https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3089092
Rm90,000,000 (about 18 sen per share)

Top glove only give 8.5 sen dividend


6) By Feb 2021 the Result of Naim will show a gain of 22 sen profit.

By then Analysts will sit up and more will take notice 

the Proposed Disposal will enable the Company to immediately unlock the value and monetise its investment in the Subject Lands at an estimated net gain on disposal of approximately RM110.17 million. In addition, the Disposal Consideration also represents a premium of RM153.17 million / 81.98% to Naim’s cost of investment in the Subject Lands of RM186.83 million.


7) And from the Sale of 2,500 houses Naim expected to make a gross Sale of Rm750 Millions

Not counting its investments in Dayang, Perdana or its construction arm

Also possible sale of more Industrial Lands to Unlock Value


What is the Intrinsic Value of Naim then?

At Nta of Rm2.60 we take a 30% discounr

So Rm1.82

So is Naim valued at Rm1.82?

To be even more defensive we take another 30% cut


So will Naim rise to Rm1.27?

Highly possible

So at 78.5 sen there is a 60% Upside


Best Regards


Calvin Tan Research



Please buy or sell after doing your own due diligence. Please consult your fund manager or remisier before investing your hard earned monies


Note : Big Things are going for Sarawak in General and Naim in particular as Sarawak Govt has received Rm2.95 Billions Sales Tax from Federal Govt of Malaysia



Finally, Petronas pays up RM2.95 bln to Sarawak for 2019 SST



KUCHING (Sept 17): Petroliam Nasional Berhad (Petronas) and its subsidiaries have handed over a cheque for RM2,956,671,407.36 to the Sarawak government today as payment of arrears for the State Sales Tax (SST) on petroleum products.


To a question from the press, Abang Johari said he believed that all Sarawakians were happy with the settlement with Petronas.

He also said that the fund would be utilised for various development projects in the state.


Further note:

With almost Rm3 Billions Cash infusion Sarawak will now go into Development Boom. This will boost Naim as it is one of the Biggest Player in Sarawak


Further note:

These are the fundamental criteria of Naim

1. Price to asset value is only 30 per cent.
Deep discount with Huge margin of safety

2. An 18 sen dividend which is the best by far in both Malaysia or Singapore...beating even Topglove at only 8.5 sen

3. Great prospect as Sarawak Govt after receiving Rm2.95 Billions cash infusion is going for big ticket projects near lands of Bintulu of which Naim still hold substantial acres

4. Strategic move by Naim in building 2500 affordable single storey houses for sale at Rm300k

These bread and butter houses will sell like hot cakes being the cheapest in all of Malaysia
Will bring in Rm750 Millions gross

5. In boom times Naim was priced near Rm7.00 and now dropped to bargain basement level of only 77 sen

6. Best of the best is the yield. Highest dividend history of Naim dividend payout was year 2006 when Naim gave 14.4 sen dividend when price was Rm3.00

Now at the low low price or 77 sen Naim is giving an amzing dividend of 18 sen a share

7. How could genuine value investor miss?



All information provided here should be treated for informational purposes only. It is solely reflecting author's personal views and the author should not be held liable for any actions taken in reliance on information contained herein.


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