Saturday 27 April 2013

YNH Property Bhd

Attractiveness of YNH:

Enjoy high EBITDA margin due to relatively low land costs, in-house construction arm to capture construction margin

Dominant market position in Manjung District, largest undeveloped land bank of 1,000 acres. No significant competition, with significant market share

Menara YNH sits on 3 acres of land. GDV approximately 2.1b. Approved development order had already been obtained for this development, comprising officer tower and shopping mall. The group has intention to keep 50% of the Menara YNH as investment property and it will be used as the Group's future corporate headquarter

AEON Shopping Centre at Seri Manjung is built on a 30.2 acres of land at Pusat Perniagaan Manjung Point. The construction of AEON Shopping Centre was completed in December 2012. Gross development costs approximately RM135.1m. The group has also commenced the construction of Pantai Specialist Center at Seri Manjung within gross development costs budget of RM51m. These will enhance the value of the balance 1000 acres of undeveloped landbanks in the Manjung Point Township

The Company had also in 4Q08 acquired 95 acres of strategic development land bank in Genting Highlands. It is located strategically next to Genting Highland Resort and was acquired for RM16.05m. The land has already been converted to building title. The proposed development comprises commercial, bungalows, condominium, retail and etc for both local and foreign investors. Estimated GDV RM1.96b. Land cost <1% of GDP!

Several institutional investors in the list of top 30 largest shareholders


Overly optimistic? What were the reasons for the reductions in estimated GDV for various developments shown in 4Q12 notes to the interim financial statements as compared to 2011 annual report:

  • Fraser Residence: from RM750m to RM530m
  • Menara YNH: from RM2.3b to RM2.1b
  • Kiara 163: from 1.2b to RM1.0b

Is the remuneration for directors high?
Revenue: RM214.09m
Net profit: RM44.29
Total remuneration for directors: RM12.78m (2 executive directors, 3 non-executive directors)
% of net profit: 28.86%
Total for executive directors: RM12.33m
% of net profit: 27.84%

Net profit: RM52.33
Total remuneration for directors: RM12.58m (2 executive directors, 3 non-executive directors)
% of net profit: 24.04%
Total for executive directors: RM12.02m
% of net profit: 22.97%


Highlights of "Upside for biomass" Focus Malaysia, April 27-May 3, 2013

According to the National Biomass Strategy 2020, biomass has the potential to contribute up to RM2.8b for the wood industry and RM2.4b for the palm oil industry by 2020.

According to Lux Research analyst Kalib Kersh, in a February 2013 report, 7b tonnes of biomass will be required by 2030 to replace all petroleum use for chemicals and fuels. For every metric tonnes of biomass used as fuel, there is an estimated reduction of more than one metric tonne of carbon dioxide emission.

Plantation players in Malaysia collectively produce about 80m tonnes of biomass annually. By 2020, this is expected to grow to 100m tonnes per annum. Oil palm biomass consists of fronds, trunks, empty fruit branches, palm kernel shells and fibre. Oil palm-based biomass is often pelletised to enable easy transportation.

To meet the country's renewable energy target of 410MW of installed biogas capacity by 2030, more than 3.5m and 9m tonnes of biomass need to be burned in 2015 and 2020 respectively.

According to Malaysian Palm Oil Board's report dated January 2013, a palm oil mill with an input of 250,000 tonnes of fresh fruit bunches per year can potentially generate an annual revenue of RM2.1m from the sale of biomass in its raw form.

A producer of biomass pellets can generate an income of RM8m per year, based on a market price of RM300 per tonnes, and a palm oil mill output of 60 tonnes/hectare. In addition, to the income from the sale of pellets, the use of pellets for fuel on a mill of that size can generate 1.85MW of energy, 1.25MW of which is used to power the mill. The remainder can be sold via the feed-in tariff (FiT) programme.

According to the Malaysian Investment DevelopmentAuthority (Mida), both existing and new companies using biomass to produce value-added products will be given pioneer status, with a tax exemption of 100% of the statutory income for a period of 10 years. The companies can also qualify for an investment tax allowance of 100% on the qualifying capital expenditure incurred within a period of 5 years.

Under Sustainable Energy Development Authority Malaysia's (Seda) FiT programme, companies utilising biomass for fuel can also sell their excess energy supply to Tenaga Nasional Bhd, opening up a new revenue stream from the purchase price of RM1.49 per kWh. Seda has allocated a cap of 23MW for the second half of 2013 under its FiT programme, compared to 4.05MW available. The cap will eventually be reduced to 13MW in the first half of 2014 to the 11.87MW available.

Immediate beneficiaries of the growth in demand will be the companies involved in the production, processing or equipment manufacturing and systems integrators for biomass products, such as Fitters Diversified Bhd, QL Resources Bhd and Boilermech Holdings Bhd.

Wednesday 24 April 2013

A vote for MCA a vote of Islamic State?

“For example in the Terengganu state assembly some years ago when PAS introduced hudud law, the lone MCA member abstained from voting for it whereas, in contrast, all the Umno members voted for it,” Veteran MCA politician Datuk Lee Hwa Beng said.

Why didn't the MCA member vote against the hudud law if MCA has been opposing implementation of hudud law in Malaysia? Why is MCA still working together with UMNO? Why is MCA spending huge amount of money advertising on media the threat of Malaysia becoming an Islamic if Malaysians directly or indirectly vote for PAS and Pakatan Rakyat becomes the Federal Government.

Is MCA still relevant?

Tuesday 23 April 2013

Kha Seng Group

Kha Seng group's properties include
i) Central Market Kuala Lumpur
ii) Viva Home Shopping Mall
iii) KWC Fashion Mall
iv) Vivatel Kuala Lumpur

Thursday 18 April 2013

Business Leaders Among Candidates for 13th General Election

Tan Sri Isa Samad - Felda chairman

Khairy Jamaluddin - Perbadanan Usahawan Nasional Bhd chairman

Datuk Nur Jazlan Mohamed - Uda Holdings Bhd chairman

Datuk Seri Abdul Rahman Maidin - former chairman of Malaysian Resources Corp Bhd and president of the Malay Chamber of Commerce Malaysia. Among companies owned and managed by him included System Television Malaysia Bhd, New Straits Times Press (M) Bhd, Malakoff Bhd and Putra Capital Bhd

Tony Pua Kiam Wee - sold all his interests in Singapore secondary listed Cyber Village Sdn Bhd in early 2007

Datuk Raja Nong Chik - shareholder and director of family business RZA Sdn Bhd, an investment company involved in property and stock market. It has subsidiary companies that deals in stationery to pharmaceutical supplies to the government

Datuk Johari Abdul Ghani - CI Holdings Bhd group MD and a substantial shareholder since 2005

Datuk Ab Wahab Ibrahim - a director at Alam Maritim Resources Bhd since 2006 and Uzma Bhd since 2011. Served as the head of the finance and IT division of Oil, Gas and Petrochemical Technical Services Sdn Bhd, a subsidiary of Petroliam Nasional Bhd from 1996 to March 2004.

Dr Tengku Rethwan Tengku Mansor - group chairman of Dancom Group of Companies. Also a director of diverse companies with business interests in property development, construction, auto industry, telecommunication, tourism, education, media and publishing as well as in distribution and trading.

Datuk Abdul Aziz Sheikh Fadzir - an ED at Gold Bridge Engineering & Construction Bhd, also the executive chairman of Kretam Holdings Bhd since 2000. Also sat on the board of Safeguard Corp Bhd from 1989 until 2009

Datuk Teh Kim Poo - founder and MD of polyethylene and uPVC products manufacturer Resintech Sdn Bhd

Tan Cheng Hai - founder CEO of Stanta Mau-ser (M) Sdn Bhd, claims to be the sole Malaysian owned manufacturer of steel drums in Malaysia.

Source: The Malay Mail, 18 April 2013

Tuesday 16 April 2013

1Malaysia Charity Concert in Penang

One must have exceptional IQ to believe that the 1Malaysia concert to be held in Penang on 20 April is genuinely for charity purposes.

How much will it cost to get these overseas superstar to perform here and how much donation could be raised from the event?

If it is for charity purposes, why not donate the budgeted expenses directly to beneficiaries? Unless the donation to be collected exceeds the expenses required to organise the concert, which is unlikely the case since the minimum donation is only RM1 per person.

Who are so generous to spend such a huge amount of money without expecting something in return? It is a norm to see advertisements by corporate to create awareness of their sponsored concerts, events and CSR activities. Why are the corporate contributors of this charity concert so mysterious and not made known to the public?

Why is the concert in Penang? Is it another coincidence that charity concert take place so near to general election?

What is more fishy is that photocopy of IC has to be submitted to get the ticket.Have you been to any concert or charity events that required you to give them a copy of your IC?

Wednesday 10 April 2013

Vote wisely to prevent the death of democracy in Malaysia

"Democracy is the Government of the people, by the people, for the people"

Is Malaysia still a democratic country when Pakatan Rakyat which was elected by the people to be the state government, was toppled due to the maneuver of just a few people.


To save the right of Malaysians and to prevent the death of democracy in our country, we, Malaysians, especially the Perakians , should in the upcoming general election, send a strong signal to Najib and BN that democracy in the country must be respected and the people are the boss.

“People shouldn't be afraid of their government. Governments should be afraid of their people."
Alan Moore - V for Vendetta

Tuesday 9 April 2013


It is estimated that the GDV for i-City on 72 acres of freehold land in Section 7, Shah Alam, will exceed RM5b

Shopping mall is expected to open in 2016

The contribution from property development is expected to overtake the leisure division in 2013

Phase 1 and 2 of the residential incubator development comprising 4 tower blocks of MSC status SOHO with retail components ranging between 33 and 43 storeys each will be launched in 2013. 3001 SOHO styled units on a 12 acres site with GDV of RM1.3b to be developed in 3 phases. Phase 1 with a GDV of RM331m is expected to be launched in May 2013, Phase 2 in August 2013 and Phase 3 in 2014. These new launches would ensure that I-Berhad has continuous and increasing revenue stream from property development over the next 5 years.

Grand i-Residence, high end luxury serviced apartment with GDV of RM500mn on a one acre site located within the heart of KL City Centre expected to be launched in 4Q13.

RM50m has been invested in its leisure attractions. New attractions such as "Red Carpet", "Dead Sea" and "Scream" will be added to the WaterWorld and FunWorld.

The joint venture with Central Group of Thailand to develop a regional shopping centre that would be held as a long term investment. The construction work on this 1 million sq ft leasable area mall is expected to commence in mid 2013.

The group's other investment property plans include the 6000 car parks associated with the residential incubator development.

A quantum leap is expected in the estimated profit before tax of the group to RM65m in 2013 and a forecast profit before tax of RM120 in 2014.

The i-City interchange connecting the site directly to the Federal Highway is scheduled to be completed by September 2013.

The Shah Alam General Hospital within walking distance of i-City is nearing completion.

Land beside i-City has been designated by MBSA for the development of a new police station as well as fire station.

Today, less than 20% of the land has been developed while the completed built-up accounts for less than 5% of the approved built-up.

i-Residence, the first residential development in i-City, with a GDV of RM232m, launched in 2012, is targeted to be completed in early 2015.

i-Sovo is part of a two towers development on top of the car park podium, the other one being a 216 rooms 3 star hotel. Comprising 220 units of MSC Malaysia Cybercentre offices, the i-Sovo and the hotel are targeted for completion in the 3Q2014.

Over RM200m from the development of i-Residence and i-Sovo will be recognised over the next two years.

The i-City theme park is a 25 acres tourism that is organised into 4 precincts - City of digital lights, snowalk, waterworld and funworld.

In 2012, i-City received 5m visitors.

Pioneer Status for i-City theme park with 5 years tax incentives have been obtained, commencing from 4Q2012. Other government incentives for i-City include the waiver of entertainment tax for rides and attractions in i-City.

The group plans to invest another RM50m over the next few years.

Zero debt

Thursday 4 April 2013

Najib on a Knife Edge

Something that you do not see in local main stream media.

"UMNO is riddled with corruption and complacency"

"Opposition coalition has done a creditable job of ruling the four states under its control"

"Malaysia's system of holding back the dynamic Indian and Chinese minorities has turned it into a bastion of mediocrity"

"The country's best and brightest leave because the cronyism and racial quotas in education and employment hold them back"

These appeared in the Wall Street Journal dated 4 April 2013. Click here to see the full article.

Wednesday 3 April 2013

Voters Registration Check

The long awaited dissolution of parliament has finally taken place on 3 April 13. Voters can check their registration at:

Tuesday 2 April 2013

Tun Razak Exchange, Bandar Malaysia

Tun Razak Exchange

GDV RM27b (vs Putrajaya’s RM20b)

28 hectares of land

Office, residential and retail

9.6m sq ft office space

26 buildings

Nestled between two of KL’s main roads Jalan Sultan Ismail and Jalan Tun Razak

1MDB obtained the TRX land from the government for RM320 million. Its financial statements indicating a gain of RM820 million from revaluations for the year ending Mar 31, 2010.

Ready in 15 years

1st phase due for completion 2017

Incentives for TRX companies:
- 100% income tax exemption for 10 years
- stamp duty exemption on loan and service agreements
- industrial building allowance
- accelerated capital allowance
- relocation costs
- 70% income tax exemption for property developers for 5 years

Bandar Malaysia

Former Sungei Besi military airport

A residential project

160 hectares

GDV about RM20b.

1MDB purchased the land at about RM1 billion, alleged about a third of its market price

Office Space in Kuala Lumpur

Annual absorption rate of office space is about 2-2.5 million square feet

Occupancy rates for purpose-built offices in Kuala Lumpur in the third quarter of 2012 was only 77.3 percent of the 72 million square feet of office space in Kuala Lumpur.

Expects 18 million square feet of new office space in the Klang Valley by 2015, not including mega developments like the TRX, PNB’s 100-storey Menara Warisan Merdeka and the KL Metropolis which will include another 100-storey office tower

Grade A office in the city centre enjoys higher demand, occupancy rates as at mid-last year stayed level at 87 percent