Monday, 12 August 2013

Asas Dunia: Gimme Your Shares

In the 1990s, Asas Dunia built 2 large shopping complexes in Bukit Mertajam, Asas Center in Alma & Asas Parade in Bukit Minyak. Currently Asas Center has been abandoned more than 10 years, and Asas Parade has never been occupied. 

Because of "cold eye", most investors are aware that Asas Dunia has plenty of lands in the southern region of Penang mainland (SPS). It has about 1200 acres land in Tasek, Valdor, Sg Bakap, Jawi, Nibong Tebal etc, which is currently experiencing property boom due to Penang second bridge and Batu Kawan development. Those lands were acquired mostly in the 1990s and probably not re-evaluated. Conservatively estimating, now the value of those lands has at least tripled. 

Recently Asas Dunia tries to improve its image by building "higher-class" homes, such as Residensi Merbok in Nibong Tebal and the new Impian Ria / Impian Indah / Desa Impian in Alma. The area near Sg Bakap / Tasek / Valdor may not be able to generate good sales if the projects are launched there, due to poor accessibility and competition from Tambun Indah's Pearl City development. Most recent projects there comprises single storey houses which is quite rare in the market nowadays.

       Taman Seruling Emas, Sg Bakap

However, by donating a piece of land at Tasek for Jit Sin High School SPS branch, surely the value of its land at Tasek / Valdor will appreciate more once the school starts its student intake, targeted in year 2016. Furthermore, IJM Land has recently purchase a piece of 70-acre land at Jawi near the Jawi tol and plans to develop it into a small township. Together with Batu Kawan & second bridge factor, Asas Dunia definitely has a great prospect ahead.

Thus, for a zero debt company with an NTA of RM2.15 where its not-reevaluated-undeveloped land makes up of 50% of its total asset, it is not surprise that the major shareholders who already own 41% make a move to privatize and de-list the company.

They offer RM1.70, higher than the previous close of RM1.63 you know.

What do you think?

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