Aeon Mall Bukit Mertajam Coming Soon

Time flies...

It's been 3 years since I first wrote about Aeon (Jusco) Alma.

Aug 2011 - DNP Land (Wing Tai) sold land at Alma to Aeon 

It is strange that this article is always in the top 5 of most popular posts.

Jan 2012 - Earthwork started at the site, but after that the site was left untouched for 1 year

Mac 2013 - Piling and construction started

Now in May 2014, the construction of Aeon Mall Bukit Mertajam is about to complete. It is set to open in June before Hari Raya.

       Aeon Bukit Mertajam

This new mall is located at Jalan Rozhan, Alma, which is a fast growing "satellite town" of Bukit Mertajam. Tesco Alma is located just opposite Aeon Mall.

Sandwiched between Tesco and Aeon is BM Mahkota, a luxury condominium project by Wing Tai (DNP Land). This project has already been launched but construction is yet to start.

       BM Mahkota

The opening of Aeon Bukit Mertajam will be good news to residents & property investors at Alma and even Seberang Perai Selatan, especially Simpang Ampat.

Tambun Indah's Pearl City is located just 10-15min drive from Aeon Alma. So its Pearl City Mall will surely face competition from this Aeon Alma.

However, when the population in Pearl City grow substantially and when Jit Sin High School SPS branch starts student intake in 2 years time, Pearl City Mall will have its own customers.

       Aeon Bukit Mertajam @ May14

Gtronic's Billion Ringgit Dream

I think that most true investors of Globetronics might have read a Chinese article in Nanyang by "Cold Eye" Fong Siling, 

东益电子的十亿梦。冷眼

"Globetronics's Billion Ringgit Dream"

This article was published a little more than a year ago in January 2013. At that time, Gtronic's share price was about RM1.70.

In its FY2011 annual report, Gtronic's founder & executive chairman Mr Michael Ng Kweng Chong mentioned that the company targeted to be a billion-ringgit company by year 2016.

       From Annual Report 2011

Now in 7th May 2014, Gtronic's share price closed at RM3.66. Base on its paid-up shares of 281 million, its market cap has reached RM1.028 billion.

So, Gtronic has achieved its target 2 years earlier. Is it because the share price is at unrealistically high level?

Its FY13 net profit is RM52.6mil, with EPS of 18.7sen. So current PE stands at 19.6x. It is definitely not undervalued.

However, its dividend yield is still great at 5% because of generous dividend payout of 60-80%.

This company is all about good management, good dividend and good future growth.

All the while the management is talking about its huge growth potential from the second half of FY2014. I'm anticipating this impatiently.

The key to Gtronic's success in the past few years might be closely related to its CEO Mr Heng Huck Lee. We can see how Mr Heng is highly rated by his chairman in the latest FY13 annual report.

       From Annual Report 2013

Even though at this record breaking level, Gtronic will still allocate a high sum of capex of RM50mil for FY14. This may give some clue to the demand of its products and growth potential of the company.

Gtronic always look ahead to plan for the next 5 years' business roadmap, to tap into the growth area and fence off competition by creating and producing products for tomorrow's market need.

With this, I think I should hold Gtronic's shares for long term until its business drops sharply or the market crash, or may be when Mr Heng quits.

Stocks To Watch In 2014

Saw this chart in i3investor which is obtained from Nanyang finance. I think I better keep it in my blog for future reference.

This chart from JF Apex list out the companies/stocks that have the potential to benefit from various events at the moment.

Translation to English

• Improving sales of semiconductors and electrical appliances
• MPI, GTRONIC, KESM, VITROX, UCHITEC

• Export-orientated companies who can benefit from global economy recovery
• WELLCAL, TONGHER, CHINWEL, LATITUD, POHUAT, EKOWOOD

• Companies that supply construction materials may benefit from booming property market
• LBALUM, WTHORSE

• Recovery of global trading
• FREIGHT

• Implementation of GST and electronic payment
• CENSOF, MYEG, GHLSYS

• Mega projects may benefit security system provider
• WILLOW

• FIFA World Cup in June
• ASTRO, GAB, CARLSBG, BAT

• Pengerang RAPID and its related projects
• SKPETRO, DAYA, BARAKAH, PANTECH, MHB, DIALOG, WASEONG, MUHIBAH, PCHEM

• Property development around Pengerang
• GADANG, IJM, WCT, SENDAI, IJMLAND

• MRT Line 2 & WCE
• GAMUDA, MMCCORP, IJM, KEURO

• Menara Warisan Merdeka & TRX
• SENDAI, IJM, WCT

       TRX - Tun Razak Exchange

• MAS-SG third link may benefit property developers
• MAHSING, ECOWLD

• Federal development plan at RRIM, TRX & Bandar Malaysia
• GLC: SPSETIA, UEMS, MRCB
• Private: IJMLAND, MAHSING, TROP, SUNWAY, IOIPG

• Development in Seberang Perai Penang (Relocation of RMAF base, re-development of Teluk Air Tawar, Penang Sentral)
• TAMBUN, PJDEV, ECOWLD, SUNWAY, MAHSING

       Penang Sentral, Butterworth

Hijauan Valdor: Setting A New Benchmark In Sungai Bakap

After being taken private, Asas Dunia has just launched its first major property project named Hijauan Valdor.

Valdor is a small town located between Simpang Ampat and Sungai Bakap in Seberang Perai Selatan. It is known for its Chinese new village and also as the largest poultry farm in Penang.

Location wise, Hijauan Valdor is quite strategic as it is situated just beside the Ipoh-Butterworth federal trunk road and opposite the upcoming link to the southern part of Batu Kawan where all the industrial and commercial activities are concentrated.

       Location of Hijauan Valdor

However, it also has its drawback as it just sits beside the railway track and next to the big poultry farm of Valdor.

Hijauan Valdor is a freehold guarded community (not gated), with individual title. It has altogether 6 phases and currently phase 1 is launched to certain guests or registrants only.

I might be one of the earliest registrant for this project as I inquired about this since 2 years ago. At that time the sales person said that there is no concrete plan for this area yet.

       Phase 1 Hijauan Valdor, with lower cost component marked in blue

Phase 1 offers single storey terrace & semi-D, as well as double storey terrace & semi-D. The pricing is quite ambitious as it starts from RM350k.

Below are the initial pricing of the properties at Hijauan Valdor (excluding rebates)

Single storey terrace (land area 2,003 sq ft) - from RM350k

Single storey terrace (land area 2,455 sq ft) - from RM405k

Single storey semi-d (land area 2,885 sq ft) - from RM464k

Double storey terrace (land area 2,003 sq ft) - from RM550k

Double storey semi-d (land area 2,745 sq ft) - from RM680k

There is no facility such as club house, swimming pool or gymnasium as it is not a gated community. However, buyers have to pay between RM100-RM150 a month as maintenance fee mainly for guard service.

With its many lands at Seberang Perai Selatan, Asas Dunia has been known earlier to be Tambun Indah Pearl City's major competitor. 

It is interesting to compare the properties offered by these 2 development.

A more appropriate comparison should be between Asas Dunia's Hijauan Valdor and Tambun Indah's Rain Tree Park which was also launched recently.

Hijauan Valdor's double storey terrace is priced from RM550k, exclusive of rebates. Legal fees are free but stamp duties are not. Its land size measures 25'x80' (2,000 sq ft) while built-up area is 25'x50' each floor.

Tambun Indah's Rain Tree Park double storey link semi-d is priced from RM538k, inclusive of rebates, stamp duties and legal fees. Its land size is 29.5'x68.5' (2,020 sq ft), with a built-up area of about 21'x45.5' in lower floor and 21'x49' in upper floor.

So, both with almost similar price and land size but Hijauan Valdor's DST has 25% larger built-up area. However, Rain Tree Park's link DSSD is a link semi-d, and it is located in a more secured gated community with more facilities, and also with roads with interlocking tiles and underground cables.

Pearl City is a township development with commercial development, proposed shopping mall, international school and medical center. It is located at a more matured town of Simpang Ampat.

Meanwhile Valdor is somewhere between Sungai Bakap and Simpang Ampat, and Hijauan Valdor is a pure residential development. The future link to Batu Kawan might be the main selling point of Hijauan Valdor.

Anyway, the DST sold in Rain Tree Park starts from RM438k, which is RM100k less than its counterpart in Hijauan Valdor, but with lesser land and built-up area.

      Rain Tree Park 1 Site Map

As Hijauan Valdor is only a guarded community, by right the guard has no rights to prohibit anyone from entering the area. The landscaping and upkeeping of the area is still the responsibility of local council (MPSP). House owners can renovate their house as they like as long as it is approved by the authority.

Whether Hiajaun Valdor is a worth buy or not depends on each individual. Some may think that its higher selling price might be justified by its larger built-up area. If you do not buy now, the upcoming phases are almost sure to cost more than current price.

Eco World's land in Simpang Ampat is right in the middle of Pearl City and Hijauan Valdor. I wonder how will Eco World price its property here next year. RM650k for DST?