The world is going towards Gigabit broadband, when will we have such speed at such price?

Japan KDDI is offering the Hikari One Home Gigabit broadband at the price of ¥5460 (RM198) a month using the Fibre-To-The-Home (FTTH) technology.

In Hong Kong, Hong Kong Broadband Network Limited (HKBN) is offering Gigabit broadband at the price of US$27 per month.

South Korea is also among the countries with the fastest broadband service, and the Korea Communications Commission (KCC) is currently working on plans to make Gigabit broadband available by the end of 2012 with FTTH.

Singapore is working on their Next Generation National Broadband Network, and OpenNet is going to offer Gigabit broadband at the price of S$15 per month per residential fibre connection.

With Gigabit broadband, watching High Definition IPTV is not a big deal, not to mention having very clear IP-phone service or excellent video conferencing quality.

Meanwhile, in Malaysia, the so-called high speed broadband UniFi offered by TM is only up to 20Mbps (50 times slower than Gigabit network), priced at RM249 per month, and currently only available in very limited areas only.

I think Gigabit broadband is a crucial infrastructure, and should be led and subsidized by the government instead of leaving it to the commercial company such as TM. Providing Gigabit FTTH at a low cost is a strategic move to boost broadband penetration in the country, which is also an important factor to retain and attract foreign investment to the country. The effect to the national economy is multifold, despite TM might not be willing to implement it because they'll lost money in the short term.

So, the government has to take the lead, and pump in money to make it happen. Instead of spending money on white elephant projects, why don't spend the money on crucial infrastructure project like Gigabit broadband?

SunCity looks more attractive than Sunway REIT

The limelight in this quiet month of June 2010, beside the FIFA World Cup soccer tournament, seems to be the IPO of Sunway REIT, so-called the largest REIT listing in Malaysia.

For this IPO, Sunway City (SunCity, 双威城, 6289) will inject 8 of its investment properties with total appraised value of RM3.729 billion into Sunway REIT as shown below.

This injection will be satisfied by RM2.7 billion in cash and 1.025 billion shares in Sunway REIT at RM1.00 par. Upon the completion of the listing of Sunway REIT, SunCity will own about 35% of the issued units subject to the over-allotment option being fully exercised.

Out of the RM2.7 billion cash received from this exercise, SunCity will receive net cash proceeds of RM1.2 billion, while the other RM1.5 billion will go to the other part owners of the 8 assets (mainly Government of Singapore Investment Corporation - GIC).

Although the listing of Sunway REIT will reduce SunCity's shares in the 8 properties from 60.3% to 35%, and therefore will lower down its near term earnings due to dilution of its stakes in those prime assets, the net cash proceeds of RM1.2 billion will effectively cover all its existing debts transforming its gearing ratio from current 0.49 to 0. This will save its borrowing interest cost immediately.

Sunway REIT is estimated to set an IPO price of RM0.97 to retail investors, and RM1.00 to institutional investors. Its NAV stood at RM0.97, which mean retail investors are not going to get any discount to buy its IPO. Its estimated dividend yield is 6.7%, which is comparatively lower than other REITs listed in KLSE.

As such, I think SunCity would look more attractive than Sunway REIT in this IPO. Beside being able to clear all its debt and turn to net cash position, SunCity currently has an unbilled sales of RM630 million.

SunCity is also aggressive in new property developments both locally and overseas. Their local projects including:

• Sunway SPK 3 Harmoni (GDV RM161 million)
• Sunway Rymba Hills (GDV RM270 million)
• Sunway Velocity (GDV RM1.5 billion)
• A’Marine (GDV RM200 million)
• Converting a car park land beside Sunway Pyramid into a 28-storey commercial building with office and retail elements (proposed)
• and more...

And their foreign projects including:

• China - Sunway Guanghao project in Jiangyin (江阴双威广昊综合发展计划) (GDV RM492 million)
• China – Sino-Singapore Tianjin Eco-City project (中国-新加坡 天津生态城, GDV RM5 billion)
• India - Sunway Opus Grand Residency in Ameenpur, Hyderabad (GDV RM1.2 billion)

Apart from these projects in China and India, the company is on the look-out for suitable land in Ho Chi Minh City (胡志明市). It also plans to undertake a joint-venture with Australand to develop 123 acres of industrial property near Sydney, worth about RM800 million.

Despite being affected by the implementation of IFRIC 15, SunCity undeniably looks attractive with improved financial position and aggressive development projects. Not to forget, they still strategically own at least 35% stake in Sunway REIT.

Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.

References and related information:

• ECM Libra (10 May 2010) - Sunway City buy; target price RM5
• OSK Research (10 May 2010) - Sunway City buy; target price RM4.49
• Inter-Pacific (31 May 2010) - Sunway City Bhd outperform; target price RM4.70
• JF Apex Securities (31 May 2010) - Sunway City, Solid 1st quarter results, buy; target price RM4.62
• Kenanga Research (18 Jun 2010) - Sunway REIT - Size Matters (IPO)

Online group purchase Dell computer at lower price with Dell Swarm

If you plan to buy a Dell computer (either laptop or desktop) with Intel processor (oops, not for AMD), you can possibly get it at a lower price in Dell Swarm website.

Dell Swarm Malaysia is an innovative website to enable anyone residing in Malaysia to group purchase computers with Dell Malaysia.

The group purchase option is called a Swarm, and will active for 72 hours (3 days) for buyers to place order. The more buyers swarm for it (up to a maximum of 15 committed buyers per Swarm), the more discount they will get. Buyers can also pledge for a lower price, and they'll get it if more buyers join the Swarm. Once the price is lowered as they wish, they'll become committed buyers then.

The price will be finalized when the Swarm ended, all buyers will get the same lowest price resulting from number of committed buyers as well as their pledging effort to bring the price further down. The buyers will get a unique coupon code via email, and they can proceed to Dell Malaysia's website to customize the items and place the order.

If you don't see a Swarm with the computer specs that you want, you can suggest for a new one by specifying your specs, and get your supporters to follow your suggestion. Every 2 weeks, the most popular suggested Swarm will be chosen to become an active Swarm.

You might also probably be interested with:

• Buying Dell computer online with Dell Coupon codes for more discount