Wednesday, 9 September 2015

Huayang's Land In Bukit Minyak?


However, according to TA research at that time, Huayang will acquire 2 pieces of land in BM. The other land measures 3.14 acres and costs RM9mil.




I think Huayang did not announce the acquisition of "Land 2" above until today, or did I miss it somewhere?

In its latest FY15 annual report, Huayang mentions that it has acquired 8.04 acres land in BM for RM31mil, which is exactly the same as reported by TA.

The lands are planned for a condominium block and serviced apartments respectively, with estimated total GDV of RM314mil.

It is obvious that Land 1 has commercial title while Land 2 has residential title.

The location of Land 1 is confirmed at BM town center near Jit Sin Independent School but there is no mention on the location of Land 2.

Recently penangpropertytalk website reveals an upcoming property development by Huayang in Bukit Minyak which is pending approval by the authority.

This development comprises: 
  • 28 units 3-storey terrace  (gated & guarded)
  • 62 units 2-storey terrace  (gated & guarded)
  • 41-storey condo with 268 units

The location of the land is at Bukit Minyak/Juru area, next to a driving school which I used to get my motorcycle license.


       Huayang's Land 2 in BM?


Bukit Minyak/Juru area is notorious for congested traffic & foreign workers as it is sandwiched between lots of industrial areas.

However, I opine that it is still a good buy for Huayang if the location is really as shown.

The question is: Can a 3.14-acre land accommodate 90 units terrace houses and a block of 41-storey condominium (and also a block of low cost apartment)? It is about the size of 2-3 football fields.

I think it should be OK if the land shape is good.

For comparison, the land area of Huayang's Mines South condominium project is 3.7 acres.

This proposed 41-storey condominium is even higher than the 39-storey Exo Horizon at Juru Sentral not far away. It could be the highest building in the region.

If Huayang can get the approval to build gated & guarded landed community and condominium on this piece of land, then I think the potential GDV should be much higher than RM70.7mil. It could be above RM150mil.

Huayang should not face too much difficulty selling landed G&G houses here, but it needs to come out with something special in order to make the condominium a success.

That cross junction in front of AEON Big in Bukit Minyak should get a flyover ASAP...

15 comments:

  1. Hi BD,

    What do you think about PentaMaster ?


    http://klse.i3investor.com/blogs/kianweiaritcles/81573.jsp

    Best regards
    Brian

    ReplyDelete
    Replies
    1. Looks like another stock who will benefit from semiconductor up cycle and perhaps strong USD? Balance sheet is clean and latest quarter's result is very good but I'm not sure whether it is sustainable. Personally I'm not very interested in its business.

      Delete
    2. Hi BD,

      Yeah, agree with you sustainability is questionable. I have the same thought as you.

      Cheers
      Brian

      Delete
  2. Hi BD,

    What do you think about GKent ?

    http://klse.i3investor.com/blogs/koko888/82705.jsp

    Rgds
    Brian

    ReplyDelete
    Replies
    1. Recent huge LRT3 contract might be a game changer but expected profit is still not clear. Generally I'm not too keen on construction sector and I don't have much interest in its water meter business as well, so I never study it in detail.

      You should ask another blogger CTYap. He knows much more about GKent and surely will help you :)

      Delete
  3. Hi BD, from your reply to networking above, you seem like don't like certain kind of business. Can I know what kind of business u dislike (except construction which u have explained why), and what type of business that attracts you ?

    ReplyDelete
    Replies
    1. I'll try to write an article on this :)

      Delete
  4. I would be expecting the great article :)

    ReplyDelete
  5. Hi BD,

    Agree with you on Gkent. Although CTYap provide very detailed analysis, I am still not sure about its' future earning for the next 2 years.

    Cheers
    Brian

    ReplyDelete
  6. Hi BD,

    What do you think about KimHin ?

    http://klse.i3investor.com/blogs/KimHin/78802.jsp

    Million thanks in advance for your reply.

    Best regards
    Brian

    ReplyDelete
    Replies
    1. Wow, looks like a stock with great potential & a solid, cash rich company.

      Shifting its production to Peninsular seems to be a good move. Johnson tiles should have already contributed to its increased manufacturing activity but its retail part outside Australia just get started, wonder how good can KimHin's marketing team can be.

      The only concern is slowing down of property / construction sector may cause less demand for tiles, as more than half of its production is for local market. Also, I actually never heard of its brands, though it is said to have 20% local market share.

      Its historical quarterly EPS tends to fluctuate quite a lot, but I feel that recent good performance might be able to sustain for a while. So current price is not expensive.

      I think I should put KimHin in my watch list. Thanks.

      Delete
    2. Maybe previously Kimhin focus in East Malaysia market. It is well known brand here.

      Delete
    3. Hi Ko, may be it's not so well known in northern peninsular, I find that their show rooms are at Kuching, JB & PJ.

      Delete
  7. Daigor, last week i saw tanbun-wa was trading at discount to the mother share, and many ppl converted it to mother as stated in additional listing announcement, then when i felt like i wanna buy the warrant, then it rebounded 26%, amazing.

    Btw, u wrote so good on Frontken, why u didnt hv any Frontken shares one? Next quarter eps can boost due to any merging exe based on ur guesstimation?

    Last, I sold Geshen at .97, pocketed 20% profit, tq very muc, u're forever my Bursa Dummy Heng, Muacks

    ReplyDelete
    Replies
    1. I think the one who sold Tambun-WA at 48sen must be desperate. Anyway it's just 1000 shares. I'm still confident on Tambun.

      You really feel that I wrote good on Frontken? Actually it's the other way round :) I try not to be too extreme so I usually mix negatives with positives to let readers decide on their own.

      No need to thank me if you make profit, I just hope that no one will blame me when they make loss.

      Delete