Metro Kajang on the move

Today the low profile Metro Kajang (6114, 美景控股) shown its publicity in The Star as well as Sin Chew regarding its recent complete acquisition of a 273-acre prime freehold land (Paradise Estate) in Kajang, which is just 2.5 km from the Kajang town centre and is accessible via the SILK Highway and Jalan Reko. This is in addition to their existing 455 acres of landbank in Selangor and 324 acres in Perak.

Metro Kajang has paid RM80 million for the land, and plans to turn it into a high-end integrated township with 3,500 units of high-end homes with a gross development value (GDV) of RM1.5 billion.

Kajang has an annual population growth rate of 8%, and Metro Kajang is the biggest developer in Kajang and Semenyih area which had built over 1,000 residential and commercial units in the region over the past 20 years.

Last year was not a good year for Metro Kajang, as it recorded lower percentage of profit recognition upon completion of recent projects in Damansara and Petaling Jaya, and its new projects with a combined GDV of RM162 million on 24.4 acres near its head office at Wisma Metro Kajang in Jalan Semenyih were still at the preliminary stage of development. This has brought down its revenue, despite its pre-tax profit being lifted by a RM13.8 million gain due to revaluation of its investment properties. This might explain for its low PE and declining in share price from the peak of RM2.20 since 16 July 2007.

Recent move in Metro Kajang also include the complete acquisition of an Indonesian company which has a 35 years title of 15,942ha (39,395 acres) land in East Kalimantan suitable for palm oil plantation.

Metro Kajang isn't an exciting counter, but it is pretty stable in profitability as stated in their annual report: "The Group posted an uninterrupted profit track record since commencing business twenty years ago".

The price hike in steel, cement, brick and other building materials is no doubt bringing negative impact to its property development and construction division, which is their major contributor of operating revenue and profit. The board of directors only foresee a satisfactory result for year 2008. As at 31 December 2007, they have lock-in unbilled sales value of 167.9 million, and they've targetted to launch new property of over RM200 million this year.

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.

Toyota Rush and Perodua Nautica

In January this year, UMW Toyota launched the Toyota Rush in Malaysia, and now in May, Perodua launched the Perodua Nautica in Malaysia too. Both of them are actually the rebadge of the 2nd generation of Daihatsu Terios, which is co-developed by Daihatsu and Toyota in Japan.

Let's look at their similarities and differences:

Toyota Rush:

• Type: 7 seater SUV, RWD
• Import: CBU from Indonesia
  
• Comes with 3 specs: 1.5G M/T, 1.5G A/T and 1.5S A/T
• Overall dimension (LxWxH in mm): 4410 x 1695 x 1745
• Interior dimension (LxWxH in mm): 2580 x 1445 x 1240
  
• Wheelbase: 2685 mm
• Kerb weight: 1250 kg
  
• Minimum road clearance: 200 mm
• Minimum turning radius: 5.2 m
• Fuel tank: 50 litre
• Engine: 3SZ-VE
• Front suspension: MacPherson Strut with Coil Spring and Stabiliser Bar
• Rear suspension: 4-Link with Coil Spring and Lateral Rod
• Tyres: 215/65R16
• Door visor: with
• Projector headlamps: only with 1.5S A/T
  
• Fog lamps: only with 1.5S A/T
• Sterling wheel: 4 spoke
• Sunglasses holder with spot lamp: with
• 2nd air-cond blower: with
  
• Colours: blue, black, silver, champagne
  
• Peninsular OTR price: 1.5G M/T: RM85,888 1.5G A/T: RM88,888 1.5S A/Y: RM94,888
  

Perodua Nautica:

• Type: 5 seater SUV, 4WD
  
• Import: CBU from Japan
  
• Only comes with 1 spec: 1.5 A/T
• Overall dimension (LxWxH in mm): 4115 x 1695 x 1740
• Interior dimension (LxWxH in mm): 1800 x 1385 x 1240
  
• Wheelbase: 2580 mm
• Kerb weight: 1200 kg
• Minimum road clearance: 190 mm
• Minimum turning radius: 4.9 m
• Fuel tank: 50 litre
• Engine: 3SZ-VE
• Front suspension: MacPherson Strut with Coil Spring
• Rear suspension: 5-Link with Coil Spring
• Tyres: 215/65R16
• Door visor: without
  
• Projector headlamps: with
  
• Fog lamps: with
  
• Sterling wheel: 3 spoke
  
• Sunglasses holder with spot lamp: with
  
• 2nd air-cond blower: without
• Colours: black, grey
  
• Peninsular OTR price: RM89,900

Tan Teng Boo emerged as substantial shareholder for PIE

On 7 Nov 2007, iCapital.Biz Berhad (5108), the public listed closed end fund managed by Tan Teng Boo (陈鼎武) who has been famous for writing excellent independent financial review for many years, disclosed their substantial interest in P.I.E. (7095, 广宇科技) for 3,407,200 or 5.32% shares purchased at open market by 1 Nov 2007. Since then, the share price of P.I.E. has surged up from the RM4.20 closing on 1 Nov 2007 to way above RM5 all time now.

As published in the 2007 annual report of P.I.E., iCapital.Biz maintains as the 3rd largest shareholders following Pan Global Holding Co. of Taiwan (holding 51.42%) and Lembaga Tabung Haji (holding 5.82%). The shareholding of iCapital.Biz has increased from 4.78% interest in 2006 to 5.32%. What is more interesting is that, Tan Teng Boo by himself also acquired 194,000 shares or 0.30% of P.I.E., making him the 27th largest shareholder as well. Previously he was not in the top 30 shareholders list of P.I.E..

P.I.E. has an excellent growth record during the past 5 years (please refer to page 24 of its 2007 annual report), bringing a 5-year average EPS growth rate at 35.09% and 5-year average price appreciation rate at 20.79%. Baring unforeseen circumstances, its EPS is prospected to grow further by about 16% in 2008 to another record high.

In year 2007, their trading arm showed a substantial decline in revenue, but offset and covered by improvement in revenue of their manufacturing arm, making an overall revenue increase by 1.22% from 2006. Margin of trading activities was also seen lower, but offset and covered by higher margin of manufacturing activities, making an overall net profit growth of 36.05% from 2006.

P.I.E. has a strong balance sheet with zero borrowings, and cash in hand of RM80,960,674 which is equilvalent to RM1.26 per share. Its NTA stood at RM3.06 per share in 2007, from RM2.71 as in 2006. It has declared a first and final dividend of 12 sen per share (less 26% tax), a special dividend of 8 sen per share (tax exempt), and another special dividend II of 16 sen per share (less 26% tax), which goes-ex on this 26 May 2008 and payable on 10 Jun 2008. This makes up its gross dividend of 28.72 sen per share, or a nett DY of 5.13% based on its last closing price of RM5.60 on 9 May 2008.

Dr. Neoh Soon Kean (梁孙健博士) of Dynaquest has been making recommendation to P.I.E. since 2004 while its price was RM2.07 then. However, Fong Si Ling (冯时能, a.k.a. 冷眼) has not been seen in this counter yet.

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.