NAIM

NAIM

Postby winston » Mon Apr 22, 2019 8:53 am

not vested

Trading Buy: NAIM - 5073
(Last price: RM1.07, Potential upside +19.6%)


Company Profile

NAIM (listed in Sep 2003) is a fully-integrated property and construction player focusing on integrated property developments, construction, civil engineering and O&G services (via a 26% stake in Dayang). Naim is also a Class A Contractor, which is one of Malaysia’s largest Bumiputera contractors

Trading Catalyst

NAIM’s share price has rallied by 140% YTD, mirroring the 148% surge of its 26%-owned associate, Dayang. Notwithstanding the recent rally, NAIM’s share price is still undervalued as we opine that investors have yet to fully appreciate the embedded value of its construction and property businesses

Indeed, adjusted for its stake in DAYANG (RM336m market cap), the current implied value of RM214m market cap (Naim’s market cap of RM550m-RM336m) on its core businesses is only 5.4x P/E against its Sarawak’s peers of 9-10x.

Given its robust construction orderrbook of RM1.9bn, positive prospects of Dayang and resilient earnings from its property division (despite the challenging outlook) coupled with the expectations of more pump-priming activities before Sept 2021 state election, market could assign a higher rating on NAIM.

Technically, the stock is poised for a downtrend line breakout above RM1.18 to advance further towards RM1.28 levels.

Technical View
Resistance: RM1.13 / RM1.18 / RM1.28
Support: RM1.03 / RM0.995
Cut loss: RM0.970

Key Financial Stats
Trading at 8.5 FY18 P/E (25% lower than peers) and 0.43x adjusted P/B post 3 for 2 rights issue at RM0.45 (62% below its peers), respectively.

Source: HLIB
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Re: NAIM

Postby winston » Sun Oct 20, 2019 8:18 am

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Dayang’s Price Rise is not Reflected on Naim

by Koon Yew Yin

Naim is the controlling shareholder of Dayang. It owns 26% of the total issued shares of Dayang.

Dayang has a total issued of 965 miilion shares and Naim owns 251 miilion shares. Naim has a total issued of 500 million shares.

Based on the current prices, Naim’s market capitalization is 500 million shares x 93 sen = Rm 465 million. Naim’s 26% of Dayang is worth 251 million X Rm 1.86 = Rm 466 million.


https://klse.i3investor.com/blogs/koonyewyinblog/
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Re: NAIM

Postby winston » Wed Nov 20, 2019 9:19 am

not vested

Trading Buy: NAIM - 5073
*Proxy to Sarawak infrastructure and O&G exposure *
(Last price: RM1.03, Potential upside +22.3%)


Company Profile

NAIM (listed in Sep 2003) is a fully-integrated property and construction player focusing on integrated property developments, construction, civil engineering and O&G services (i.e. Dayang (26% stake) and Perdana (Naim: 9.9%, Dayang: 60.5%).

Naim is also a Class A Contractor and is one of Malaysia’s largest Bumiputera contractors having carried out more than RM5bn worth of works.

In 6MFY19, the O&G division contributed about 51% to PBT whilst the remaining 49% was mainly derived from construction/property businesses.


Trading Catalyst

At RM1.03, NAIM is only trading at 0.41x P/B (33% below 10Y average and peers’ average of 0.6x) and 0.43x to its revised RNAV of RM2.32 (after applying a huge 30% investment holding discount).

We believe such steep discounts could provide sufficient margin of safety and cushion further price fall, thanks to the stable earnings from its O&G division, strong construction orderbook of RM1.5bn and expectations of more pump-priming activities before Sept 2021 Sarawak state election

Technically, the stock is ripe for further advance towards RM1.10-1.26 zones after staging a positive downtrend line breakout.

Technical View
Resistance: RM1.10 / RM1.17 / RM1.26
Support: RM1.00 / RM0.970
Cut loss: RM0.940

Key Financial Stats
Trading at 0.4x P/B (33% below 10Y average and peers’ average of 0.6x) and 0.43x to its revised RNAV of RM2.32.

Source: Bloomberg, HLIB
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Re: NAIM

Postby winston » Fri Nov 29, 2019 3:14 pm

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3Q Earnings

Revenue: -80%
EPS: -43%
RNAV: RM 2.62

http://www.bursamalaysia.com/market/lis ... ts/6353569
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Re: NAIM

Postby winston » Fri Jan 03, 2020 12:25 pm

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Sarawak tycoon raises stake in Naim to 25.2%

29 Jan 2019

By JACK WONG

Major shareholder: Hamed has increased his direct and indirect holdings in Naim to 126.1 million shares, representing 15.92 of its enlarged issued capital of 513.8 million.

KUCHING: Sarawak tycoon Datuk Amar Abdul Hamed Sepawi has raised his stake in Naim Holdings Bhd by over 9% to about 25.2%, following the completion of the company’s rights issue.

However, there are no indications that the completion of the cash call would lead to further corporate exercises, analysts said.

“It was merely an exercise to raise funds to strengthen the company’s position to undertake future projects, particularly those that could be happening in Sarawak,” one analyst with a local brokerage said.

“We don’t see any likelihood of Naim being taken private, despite the fact that the company’s shares are not trading at historical lows ... otherwise the major shareholders would not have applied for exemption to a mandatory general offer,” he added.

Another analyst concurred, noting that Naim, which is based in Sarawak, is well positioned to gain from the impending infrastructure spending in the state.

“The company’s prospects are expected to improve in tandem with the state’s infrastructure spending,” the analyst with a local bank said.

“By strengthening its financial position, the company will be on a better footing to win projects.”

It was reported last October that the Sarawak government would splurge a record RM11bil on infrastructure in the next two years, ahead of the state polls that must be held by mid-2021.

Under the plan, some RM6bil would be spent on the coastal highway project, RM2.8bil on improving water supply and a sum of RM2.3bil would be used to enhance electricity connectivity throughout the state.

The recently completed rights issue by Naim, which achieved a 74.22% subscription rate, raised total gross proceeds of RM118.7mil and exceeded the minimium level of RM100mil.

The total number of subscribed rights shares priced at 45 sen apiece (on the basis of three rights shares for every two existing shares) was about 263.8 million units. The rights shares were listed on Bursa Malaysia on Jan 25.

Hamed, who is also Naim’s chairman and the cousin of former Sarawak chief minister Tun Abdul Taib Mahmud, has increased his direct and indirect holdings to 126.1 million shares from 37.7 million or 15.92% in the company’s enlarged issued capital of 513.8 million shares (from 250 million shares).

His indirect holdings are via Tapak Beringin Sdn Bhd and Lembah Rakyat Sdn Bhd.

Managing director and major shareholder Datuk Hasmi Hasan has also raised his equity interest in the property developer to 191 million shares or about 38.1% from 24.1% after the rights issue.

Hasmi has a direct stake of 11.13% (55.73 million shares) and an indirect stake of 27% via Hasmi & Associates Management Sdn Bhd, Island Harvest Sdn Bhd and Lambaian Kukuh Sdn Bhd. Both the combined shareholdings of Hamed and Hasmi in Naim have ballooned to about 63.3% from 40.02% before the fund-raising exercise.

Hamed and Hasmi and persons acting in concert (PACs) have picked up nearly 79.98 million excess rights shares besides subscribing for their respective entitlements. Their undertakings to subscribe for the excess rights shares were to ensure that at least RM100mil would be raised.

The Securities Commission had granted an exemption to Hamed, Hasmi and the PACs from the obligation to undertake a mandatory offer for the remaining Naim shares not already owned by them arising from the subscription of the excess rights shares.

According to Naim, the rights issue is to help position the group, which is involved in the construction business besides property development, on a better financial footing to undertake more projects.

The Naim group suffered a pre-tax loss of RM147mil in the financial year ended Dec 31, 2017 (FY17), largely due to the Klang Valley mass rapid transit (MRT) project and its oil and gas associate DAYANG ENTERPRISE HOLDINGS BHD. The loss was the first ever in Naim’s 23-year corporate history.

Hamed has attributed the MRT project’s losses to delays in site possession, overloaded site instructions and changes at the project’s later stage.

From the proceeds of the rights issue, at least RM70mil would be used to finance the group’s three ongoing major residential projects. These are Kuching Paragon, Bintulu Paragon and Bandar Baru Permyjaya in Miri.

Source: The Star

https://www.thestar.com.my/business/bus ... aim-to-252
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Re: NAIM

Postby winston » Fri Jan 03, 2020 12:33 pm

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Naim set to benefit from state budget, upswing in O&G

November 21st, 2019

by SULHI KHALID

NAIM Holdings Bhd is set to gain from Sarawak’s stimulus measures after its state government announced that RM6 billion will be allocated for development expenditure in the state Budget 2020, according to Hong Leong Investment Bank Bhd (HLIB).

From a technical share price perspective, Naim is ripe to advance towards the RM1.10 to RM1.26 price range, after staging a positive downtrend line breakout, the investment bank noted in a release yesterday. The stock closed six sen higher at RM1.09 yesterday.

“Naim is only now trading at 41 times price-to-book ratios and 43 times to its revised net asset value of RM2.32.

“We believe such steep discounts could provide sufficient margin of safety and cushion further price fall, thanks to the stable earnings from its oil and gas (O&G) division, strong construction orderbook and expectations of more pump-priming activities before September 2021 Sarawak state election,” HLIB stated.

Sarawak-based Naim now has a sizeable orderbook of RM1.5 billion and is slated to win more projects in the future based on its track record in various notable projects such as Sabah O&G terminal, Klang Valley mass rapid transit, Pan Borneo Highway, etc.

Naim also has sizeable development landbank — 2,500 acres (1011.71ha) in Sarawak with low holding cost, mostly located in critically masses population areas like Kuching and Miri.

Its flagship property developments include Naim Bandar Baru Permyjaya in Miri, Naim Kuching Paragon integrated development, Naim Desa Ilmu and Naim Riveria in Kuching, and Naim Bintulu Paragon integrated development in Bintulu.

Naim has built and developed more than 20,000 properties for the Sarawak community, it added.

Meanwhile, Dayang Enterprise Holdings Bhd, in which Naim has a 26% stake, is expected to record a stronger second half (2H19) as upstream activities gain traction post-monsoon season, underpinned by a RM3.3 billion orderbook.

HLIB said the prospects for Dayang remain rosy in the mid-term. “Jobs could be coming from decommissioning and abandonment of structures, Petroleum Nasional Bhd’s rejuvenation and expected oil recovery, and engineering, procurement, construction and commissioning contracts as well as maintenance contracts within the Asean region,” it said, Dayang share price closed 18 sen higher yesterday at RM2.05 giving it a market capitalisation of RM1.98 billion.

The group provides offshore topside maintenance services, minor fabrication works, and offshore hook-up and commissioning services for O&G companies. It also offers chartering of marine vessels, and equipment hire operation.

Source: The Malaysian Reserve

https://themalaysianreserve.com/2019/11 ... ing-in-og/
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Re: NAIM

Postby winston » Fri Jan 03, 2020 12:41 pm

Stock With Momentum: NAIM Holdings

November 21, 2019

NAIM Holdings Bhd (fundamental: 1/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the 10th time this year, as the trading volume of its shares rose to 20.62 million, 2.5 times its 200-day average of 8.03 million shares.

The counter gained six sen or 5.83% to close at its three-month high of RM1.09.

For the second quarter ended June 30, 2019 (2QFY19), Naim grew its net profit by 11.13% to RM10.18 million from RM9.16 million previously, thanks to higher contributions from its associates.

Revenue grew 37% to RM159.18 million from RM116.2 million.

It recorded a net profit of RM11.88 million for the cumulative six months of FY19, compared to a net loss of RM6.93 million a year ago, on higher profit from operations and better results from oil and gas subsidiaries.

Six-month revenue rose 15.61% to RM300.82 million from RM260.19 million on higher contributions from its business segments.

Source: The Edge

https://www.theedgemarkets.com/article/ ... holdings-1
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