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KGROUP (0036) KEY ALLIANCE GROUP BHD: Connecting the Dots... : Connecting the Dots...

Since I have invested in KGroup, I would like to share some of my reading/surfing and details of KGroup webbed shares holding of related counters. Below are some announcement for connecting the dots exercises:-

Medical Investment in TREEMED, KOMARK and others:
1.) KEY ALLIANCE GROUP BERHAD
- TREEMED SDN BHD, A KEY ALLIANCE GROUP BHD ASSOCIATE, SECURES RM32 MILLION CONTRACT FROM THE GOVERNMENT
▪ The Contract period is 4 years, commencing from 10 January 2022 to 9 January 2026.
▪ Tree Med is a 30% owned associate company of KAG.
▪ Tree Med Sdn Bhd has signed a blanket supply memorandum of understanding (MOU) with SelCare Pharmacy Sdn Bhd (SELCARE), a company owned by Perbadanan Kemajuan Negeri Selangor (PKNS) to provide Covid RTK test kits together with machine placements of analysers to verify the test results. (Not part of above contract, for info only)

2.) KEY ALLIANCE SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF KEY ALLIANCE GROUP BERHAD ("KAG" OR "THE COMPANY") OBTAINED APPROVAL FOR CARE GENE RT PCR TEST KIT
▪ Key Alliance Sdn Bhd (“KASB”), a wholly-owned subsidiary of the Company has been appointed as representative of ITDF Co Ltd (“ITDF”), as a local partner to effect the registration, and carry out marketing and distribution of the Care Gene Covid-19 RT PCR Kit, produced by Wells Bio Inc (“Appointment”).

3.) COLLABORATION AGREEMENT BETWEEN KEY ALLIANCE SDN BHD, A SUBSIDIARY OF KEY ALLIANCE GROUP BERHAD ("KAG" OR "THE COMPANY") AND DUNIA WELLNESS LABORATORIES SDN BHD ("DWL")
▪ Key Alliance, having secured its MDA (Medical Device Authority) and other required regulatory licenses earlier this year, and also secured a firm stockpile of Wells Bio's Care Gene RT PCR Kit of 100,000 kits recently, is currently waiting for its Special Access to be granted by the Ministry of Health.

4.) 15.066% direct holding of KOMARK.
The vision of KMC is to be the world-class total solution provider of premium labels, flexible packaging and largest face mask manufacturer in Southeast Asia delivering sustainable shareholder value to all the stakeholders.

Communication and Storage investment in MACPIE and XOX:

5.) 13.086% direct holding of MACPIE.
MACPIE's direction to incorporate streaming media services for its events as well as its digital marketing services for small medium enterprises and companies gaining traction, MACPIE's use of cloud services and storage as well as bandwidth enhancement and other complementary ICT based services will directly benefit the KAG Group’s cloud services and IT segment.

6.) 12.59% direct holding of XOX as at 20 Oct. 2020. The board (of Key Alliance) is reaffirming its commitment as a strategic partner to XOX by moving to be the largest shareholder, in order to continue developing a collaborative and complementary platform for the growth of digital economy businesses, as well as cloud computing and archival requirements.
Source: https://www.theedgemarkets.com/article/xox-largest-shareholder-ups-stake-new-major-equity-owner-emerges

Details 1: KGroup shares holding

How undervalued is KGroup? Since I have tabulated the data as shown in Details No. 1, let me calculate the cash+shares holding of MACPIE, KOMARK and XOX / Mkt. Capital value.

Cash and cash equiv. position:  RM30.46mil as reported at Q30.06.2021 report.
Cash used in acquisition of shares after 30.06.21QR: RM6.15mil.
Latest Calculated Cash and cash equivalent position: RM30.46mil - RM 6.15mil = RM24.31mil
The calculated Shares holding value based on MACPIE, KOMARK and XOX only as at 22 Oct.2021:  RM44.784mil.

KGroup Share and cash details:-

(For info: Number Of SHares (NOSH): 2,554.31mil )
Mkt. Capital: RM63.858mil as at 22 Oct. 2021

Cash+calculated shares holding/Mkt. Capital: (24.31 + 44.784)/63.858 = 1.082

Meaning, it is fairly valued at every sen invested will equal liquidity of 1.082sen at present market price. TradeAtYourOwnRisk.

Sources of information: klsescreener, i3investor and various internet surfing

Disclaimer: The above opinion does not represent a buy, hold or sell recommendation; just a personal opinion and for sharing purposes only. Any offences and errors are unintentional; my apology in advance.

https://klse.i3investor.com/blogs/BLee_KGroup/2021-10-25-story-h1592859260-KGroup_Connecting_the_Dots.jsp

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