Ekovest Bhd

Re: Ekovest Bhd

Postby winston » Wed Jul 26, 2017 6:36 pm

vested

Ekovest active, rises 4.27% on land swap deal with govt

by Surin Murugiah

July 19, 2017

KUALA LUMPUR (July 19): Shares of Ekovest Bhd rose 4.27% in active trade this morning after the company said the government will trade land with Ekovest in return for rehabilitation works undertaken by the property developer on the first 2.2km of a 10km stretch of the Gombak river under the Kuala Lumpur River City (KLRC) project.

At 9.03am, Ekovest rose 5 sen to RM1.22 with 5.96 million shares done.

Under the deal, Ekovest will get 30 acres (12.14ha) of land within the KLRC development, said Ekovest managing director Datuk Seri Lim Keng Cheng.

“With the land swap package, we can generate over RM9 billion in GDV (from the 30-acre land), which is 10 times the cost of the land given to us,” Ekovest’s managing director Datuk Sri Lim Keng Cheng told reporters after the launch of the KLRC project yesterday.

Ekovest will undertake construction works of the non-mechanical Gombak River Enhancement And Tunnel (GREAT) system for the 2.2km portion, for which it is investing RM950 million in development cost. It expects the project to be completed in two and a half years.

Source: The Edge

http://www.theedgemarkets.com/article/e ... -deal-govt
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Jul 26, 2017 6:55 pm

vested

May 31, 2017

3QFY17: Within Expectations

Results came in within expectations with 3QFY17 core net profit surging 2x yoy to RM33.7m, driven by a strong construction division.

9MFY17 core net profit of RM115m represents 71% of our full-year forecast.

The stock is backed by a solid outstanding orderbook of RM13.2b that could sustain earnings momentum for the next 5-6 years.

Key catalysts in the near term include new contract wins and potential IPO of its highways.

Maintain BUY. Target price: RM1.55.

Next major asset monetisation would be potential listing of highway concessions.

We believe the next major catalyst for the stock would be the potential listing of DUKE 1
and DUKE 2 expressways, targeted to start as soon as end-17.

Presently, we value Ekovest’s 60% stake in DUKE 1 & DUKE 2 at RM1.9b, which represents 38% of our SOTP valuation and 70% of Ekovest’s current market capitalisation.


Maintain BUY and SOTP-based target price of RM1.55. Our target price is based on a 30% discount to our fully-diluted valuation of RM2.21/share, and implies 20.4x fully diluted
FY18F PE and a more palatable 13.9x FY19F PE.

We forecast a strong 3-year (FY16-19) earnings CAGR of 84%.

Our valuation has yet to impute the remaining 70% value of SPE (worth 74 sen/share) and the recently secured DUKE 2A (potentially worth RM1.23-1.64/share).


Source: UOBKH

https://research.uobkayhian.com/content ... 3b813bc064
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Thu Jul 27, 2017 7:09 am

vested

Ekovest up 5.56% after news of Wanda abandoning bid for Bandar Malaysia

by Wong Ee Lin

KUALA LUMPUR (July 26): Ekovest Bhd shares rose by as much as 5.56% today on news that its related group may get a second chance to bid for the Bandar Malaysia project after China's Dalian Wanda Group was reported to be no longer interested in the project.

At 3.51pm, the stock rose four sen or 3.7% at RM1.12 after pairing earlier gains with some 13.7 million shares traded. The group's market capitalisation was about RM2.4 billion

Meanwhile, Iskandar Waterfront City Bhd (IWCity) shares were up one sen or 0.75% at RM1.34 with 13.3 million shares changing hands.

IWCity's share price took a beating when it was announced on May 3 that the sale of a 60% stake in Bandar Malaysia Sdn Bhd to IWCity's holding company Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp had been aborted.

Ekovest shares meanwhile plunged from RM1.46 on May 2 to as low as RM1.01 in mid-July.

IWH, which owns a 60% equity interest in the joint venture, is the flagship of property tycoon Tan Sri Lim Kang Hoo, who also controls a 32% stake in Ekovest.

It was reported that Dalian Wanda Group, the troubled Chinese property-to-entertainment giant, has abandoned its bid for the property portion of the Kuala Lumpur-Singapore high-speed rail project, the biggest of its kind in Malaysia, only three months after being considered a front runner.

Source: The Edge
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Thu Aug 17, 2017 9:27 am

not vested

Trading Buy: EKOVEST - 8877
(Last price: RM1.12, Potential upside +15.2%)

Company Profile
Ekovest is principally involved in construction, property development and toll road operations.
Ekovest is one of the main contractors and a concession holder for DUKE Highway, which offers healthy recurring cashflows and earnings to the group.

Trading Catalyst
Ekovest registered a PAT of RM92m in 9MFY17 results vs RM20m in 9MFY16.
Ekovest’s orderbook size is more than RM13bn, which may last them for another 4-5 years.
Ekovest has 76 acres of landbank within Klang Valley, Danga Bay and Kuantan with a combined GDV of RM7.8bn.

Technical View
Resistance: RM1.17 / RM1.20 / RM1.29
Support: RM1.09 / RM1.07
Cut loss: RM1.06

Key Financial Stats
9MFY17 EPS: 4.31sen (+353% yoy)

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Tue Sep 05, 2017 9:52 am

not vested

Ekovest (EKO MK)
4QFY17: Below Expectations


Ekovest reported 4QFY17 net profit of RM18.4m, bringing FY17 net profit to RM133m, representing 82% of our full-year estimate.

Earnings missed estimates due to a high effective tax rate of 59% (vs our 24% estimate).

The construction and infrastructure divisions continue to deliver strong growth.

Maintain BUY with a lower target price of RM1.45 (down from RM1.55) as we trim our FY18/19 earnings estimates by 7% and 4% respectively.

Maintain BUY with a lower SOTP-based target price of RM1.45 (from RM1.55), as we
adjust our earnings projections. Our target price is based on a 30% discount to our fully
diluted valuation of RM2.08/share, and implies 13.7x fully-diluted FY19F PE.

Our valuation has yet to impute the remaining 70% value of SPE (worth 74 sen/share) and
the recently secured DUKE 2A (potentially worth RM1.23-1.64/share).


Source: UOBKH

https://research.uobkayhian.com/content ... c9f8b8c194
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Nov 01, 2017 1:31 pm

not vested

Malaysia's Ekovest shares drop after developer considers buying peer

KUALA LUMPUR, Nov 1 (Reuters) - Malaysia's Ekovest Bhd saw its share price fall as much as 22 percent on Wednesday, a day after the property developer said it would consider a proposal to buy a majority stake in Iskandar Waterfront City Bhd (IWC) .

Ekovest, in a stock exchange filing on Tuesday, said its biggest shareholder, Lim Kang Hoo, had proposed Ekovest buy 62 percent of IWC for 1.50 ringgit per share - 7 percent above the stock's last closing price.

Such an offer would value IWC at 1.26 billion ringgit ($297.73 million) based on the number of shares outstanding.

Lim owns 20.2 percent of Ekovest. He also controls IWC's biggest shareholder, Iskandar Waterfront Holdings Sdn Bhd (IWH), which owns 37.7 percent of IWC.

IWC and IWH also on Tuesday called off a proposed merger that would have seen IWH publicly traded through the merged entity - a so-called back-door listing.

A merger would have created one of Malaysia's biggest listed property developers.

Trading in IWC and Ekovest shares was suspended on Tuesday.

On Wednesday, IWC shares were down 5 percent in late morning trade compared with their Monday close. Ekovest was down 16 percent having recovered from a 10-month low.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Nov 01, 2017 2:45 pm

not vested

Caught By Surprise

Ekovest’s proposal to acquire a 62% stake in IWC comes as a negative surprise.

The proposal could see Ekovest forking out up to RM764m cash for the stake (at RM1.50/share).

While the proposal would need to be deliberated by the board (and approved by shareholders), we foresee negative near-term impact on share price.

Downgrade to SELL with a lower target price of RM1.04.

Source: UOBKH

https://research.uobkayhian.com/content ... cb0b7ab6ec
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Nov 01, 2017 5:12 pm

vested

Lim Kang Hoo suffers setback in IWH-IWCity merger

by Chester Tay

KUALA LUMPUR: Tycoon Tan Sri Lim Kang Hoo has suffered a setback with his plan to merge Iskandar Waterfront Holdings Sdn Bhd (IWH) with its 38.35%-owned associate Iskandar Waterfront City Bhd (IWCity), which would see the establishment of one of the largest listed property developers on Bursa Malaysia.

In a surprise announcement yesterday, IWCity said the company and IWH have mutually agreed to terminate the proposed merger.

This follows a decision by the owners of the lands that were supposed to be injected into the enlarged IWH — Sultan of Johor Sultan Ibrahim Sultan Iskandar and Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) — to pull out of their participation in the restructuring exercise between the two companies.

“[Their pullout] will result in an unexpected substantial variation and reduction in the scale and scope of the proposed restructuring exercise,” IWCity told Bursa Malaysia yesterday.

As such, IWCity said the implementation of the proposed merger scheme and the proposed restructuring exercise is no longer consistent with the anticipated benefits and intentions which were originally envisaged by IWH.

“The parties are [also] unlikely to be in a position to fulfil the conditions precedent contemplated in the merger agreement within the originally anticipated time frame for fulfilment/obtainment,” it added.

However, the failed IWH-IWCity merger did not hold Lim back from exploring new opportunities. Lim, who is major shareholder and executive chairman of Ekovest Bhd, is now proposing Ekovest to buy the rest of the 62% shares not owned by IWH in IWCity through either a cash consideration of RM1.50 per share, valuing the company at RM1.25 billion, or a one-for-one share swap deal.

Lim and parties acting in concert currently own a controlling 63% stake in IWH, while KPRJ owns the remaining 37% stake. And Lim, through IWH, owns 38.35% of IWCity. He also owns a 32.38% stake in Ekovest.

It is understood that Lim intends to take IWCity private under the new proposal.

“Essentially, what the new proposal tries to achieve is to privatise IWCity. It is a good investment deal for Ekovest as the RM1.50 offer price represents a 60% discount over the open market value of IWCity.

The issuance of new shares at a premium of 28% to Ekovest’s current market price is also a good deal for Ekovest,” a source familiar with the proposed deal told The Edge Financial Daily yesterday.

The source said IWCity has an indicative open market value of RM3.68 billion.

This implied that the 62% IWCity stake Ekovest is acquiring is worth some RM2.3 billion or RM4.44 per share, which means that the offer price of RM1.50 per share or RM777.84 million is a 66% discount to IWCity’s indicative market value.

In May, IWH entered into a merger agreement with IWCity for a proposed one-for-one merger offer to take up the remaining 62% equity in the latter and assume the latter’s listing status. The board of directors of IWCity had until yesterday to deliberate on the proposed merger offer by IWH, after two extensions.

In tandem with the proposed merger, IWH was to have embarked on a proposed restructuring exercise with Lim —who is director cum executive vice-chairman of IWH — via an internal rationalisation of minority stakes within the IWH Group and various Johor state entities including KPRJ to consolidate the land bank under IWH. This will see an injection of 3,593 acres (1,454ha) of land with an open market value of RM4.1 billion into IWH.

In a separate filing yesterday, Ekovest said it had last Friday received a proposal letter from Lim to acquire the 62% stake in IWCity, which currently has 1,052 acres of land bank mainly in Johor.

Lim is also proposing to the board of IWH, which owns a 38% stake in IWCity, not to accept the offer from Ekovest. All parties have until Nov 30 to deliberate on Lim’s proposals.

Astramina Advisory Sdn Bhd has been appointed as the financial adviser for the proposed acquisition.

When contacted, the advisory firm’s managing director Wong Muh Rong said her team had evaluated the pros and cons of the proposed deal thoroughly.

“Before proceeding, we got all the support of all [major] shareholders and directors for decisions made,” she added.

Trading in both Ekovest and IWCity shares have been halted since Monday and will resume trading today. Ekovest’s share price last closed at RM1.16 last Friday, valuing the group at RM2.48 billion, while IWCity’s stock settled at RM1.40, bringing it a market capitalisation of RM1.17 billion.

Source: The Edge

http://www.theedgemarkets.com/article/l ... ity-merger
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Nov 01, 2017 7:05 pm

vested

The changing face of Ekovest - highway owner to property player

By Tee Lin Say

Ekovest received a letter from its major shareholder Lim on Oct 27, proposing that the company undertake a conditional voluntary takeover of 62% of IWC.

IWC shares were last traded at RM1.40, while that of Ekovest were last traded at RM1.16. The counters will resume trading today.

In a filing with Bursa Malaysia, Ekovest said that the proposed acquisition would involve it undertaking a conditional voluntary takeover offer to acquire all IWC shares for a cash consideration of RM1.50 per offer share.

The second option is for new ordinary shares to be issued by Ekovest on the basis of one new Ekovest share at RM1.50 per share for every one offer share.

“Subject to approval from the board, Lim will propose to IWH, which is currently holding 38% of the issued and paid-up share capital of IWC, not to accept the offer made by Ekovest,” said Ekovest.

This is to ensure that IWH continues be a major shareholder of IWC.

IWH is 63%-owned by Lim through his private company, Credence Resources Sdn Bhd, while the remaining shares are held by Kumpulan Prasarana Rakyat Johor.

Source: The Star

https://www.thestar.com.my/business/bus ... f-ekovest/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

Re: Ekovest Bhd

Postby winston » Wed Nov 01, 2017 7:10 pm

vested

Why is Lim appeasing minorities of IW City?

By M Shanmugam

PETALING JAYA: The obvious beneficiary from Tan Sri Lim Kang Hoo’s latest corporate exercise involving Ekovest Bhd ’s takeover of Iskandar Waterfront City Bhd (IW City) are the minorities of the latter.

Ekovest meanwhile bears the brunt, as it would be potentially holding 62% of the asset heavy IW City if the deal goes through.

And Ekovest could potentially see a drain of up to RM725mil in its cash if minorities of IW City opt for the cash option in the proposed takeover.

The stock market has punished Ekovest, which is down more than 18% after it resumed trading.

Ironically, Lim and parties related to him is the biggest shareholder of Ekovest holding more than 50%.

On paper, Lim has lost RM200mil from merely announcing Ekovest’s proposed takeover of IW City because of the drop in market capitalisation.

What is surprising is Lim agreeing a proposal that sees his wealth reduce. And this is the second corporate exercise involving IW City, which only in May this year hit a high of RM3.22 per share.

Why is Lim appeasing to the IW City’s minorities and giving them an exit just three months after he lost the Bandar Malaysia deal? The dust has not even settled yet following the group’s failure in the Bandar Malaysia deal.

In May, IW City was seen as the main beneficiary following a proposal that its parent company, Iskandar Waterfront Holdings Sdn Bhd (IWH), would take over the listing status.

In December 2016, IWH was awarded the job to develop Bandar Malaysia with China Railway Engineering Company (CREC). However in August this year, the Ministry of Finance withdrew the award on grounds that the IWH-CREC joint venture had failed to meet its scheduled payment obligations.

Since then, IW City has gone on a tailspin, leaving its shareholders in a daze.

The latest offer is a way out for IW City minorities, crest fallen and wanting an exit. They have an option of getting cash RM1.50 per share or Ekovest shares, priced at RM1.50.

IWH is IW City’s biggest shareholder with 38% and they are not accepting Ekovest’s offer. However the rest of the shareholders would likely take it up because it is a way out for them after the Bandar Malaysia episode.

Going by the price of Ekovest which is now trading at 97 sen, the IW City minorities should opt for the cash option.

As for Ekovest, it the deal goes through, the construction and infrastructure company would be left holding as much as 62% of IW City, whose biggest appeal is 1,052 acres of waterfront land in Johor Baru.

IW City is a master developer and makes its money from selling land that it reclaims from the sea. The business model involves capital upfront and the company recoups over time through sales of land for development.

However the cash comes from lumpy payments, unlike the conventional property developers that see steady cash-flow from sales of house.

The upside for Ekovest is the future listing of IWH, which is a long term investment.

Source: The Star

https://www.thestar.com.my/business/bus ... f-iw-city/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 100692
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to E to K

Who is online

Users browsing this forum: No registered users and 2 guests