NAIM is Firing Up on All Four Engines just like the 747 Jumbo Plane, Calvin Tan Research
Author: calvintaneng | Publish date:
Hi guys,
Today Dayang suddenly spiked up due to the momentum triggered in O&G interest in Carimin.
And Naim followed close behind in its price surge
But Naim has 3 other engines of growth even without Dayang
So what are the Other 3?
The other three are Pan Borneo Highway, Construction & Real Estate
Altogather NAIM has four engines of growth like 4x4 cylinders firing now. The macro picture looks good
Now let's take a closer look at the micro level
1) The Latest Table of content gave a Resounding Turnaround
UMMARY OF KEY FINANCIAL INFORMATION
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INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
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PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
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PRECEDING YEAR
CORRESPONDING PERIOD |
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30 Sep 2018
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30 Sep 2017
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30 Sep 2018
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30 Sep 2017
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||
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$$'000
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$$'000
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$$'000
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$$'000
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||
| 1 | Revenue |
178,760
|
53,654
|
438,949
|
260,950
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| 2 | Profit/(loss) before tax |
33,865
|
-86,065
|
31,128
|
-118,094
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| 3 | Profit/(loss) for the period |
30,530
|
-94,828
|
24,505
|
-130,385
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| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
30,323
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-95,014
|
23,398
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-130,949
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| 5 | Basic earnings/(loss) per share (Subunit) |
12.80
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-40.10
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9.87
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-55.27
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| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
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0.00
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0.00
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0.00
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AS AT END OF CURRENT QUARTER
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AS AT PRECEDING FINANCIAL YEAR END
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||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
4.2800
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4.1800
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||
All revenue, profit & Nta increased from last year quarter
2) NAIM IS SELLING AT HUGE DISCOUNT TO NAV
At 52.5 sen with NTA of Rm2.40 (adjusted 2 for 3 bonus) is selling at almost 80% discount to NTA
Naim at its recent peak was over Rm6.00 & now price has fallen by 90% near historic low....making this a great bargain
3) POWRFUL EARNINGS PER SHARE (EPS)
So good. Naim has not only High NTA it has also got Powerful Earnings
And this is not just a one off
Refer to Qtr result
The Group recorded higher revenue of RM438.9 million for the period
under review, as compared to RM261.0 million reported in the
corresponding period of 2017. The increase was contributed by both Property and Construction divisions, which
recorded a 78% increase in their revenue when compared against that
achieved in the corresponding period of 2017, due to increased work
progress and additional new property sales [see Note 17.1 (b) for details].
Property segment recorded an increase in its revenue and profit during
the current period under view. The increase was partly contributed by
increased work progress achieved. Higher new sales of about RM100.6 million (January to September 2017: RM92.9 million) also had led to the increase in the property revenue and profit during the 9-month period.
17.2 Review of performance of major associate Our associate, Dayang Enterprise Holdings Bhd. (“DEHB”), reported an unaudited profit after tax attributable to owners of about RM66.5 million, against a loss of RM89.7 million registered in the corresponding period of 2017. The improvement in the DEHB performance wasmainly due to higher maintenance work orders performed during the period under review.
So from here we can see that all three
Construction
Property
Oil & Gas (Dayang)
are doing well
Resulting is a nice 12.8 sen profit this last quarter
4) PAN BORNEO HGHWAY
This single connecting highway will increase the Value of NAIM LANDBANKS By manifold
In the 1950s
One Acre Land in Shah Alam was worth only Rm5,000. After KL - Klang
Federal Highway was built the Lands in Shah Alam increased by manifold.
Like the
wild wild West of USA in its pioneer days those lands were given free to
settlers. Same goes for those Lands in Pahang in early days. After the
KL - Karak Highway was built land prices soared in Pahang. And the PLUS-
North South Highway unlocked the land Value from Perlis to Perak...
from Seremban to the Southernmost part of Johor.
Since NAIM is the Largest Real Estate Land Owner in Sarawak it stands to gain the most in Land Value appreciation
And spearheading its future
See
Naim
Holdings Berhad has accepted the award of Pan Borneo Highway Project
which is the package work for Pantu Junction to Batang Skrang in
Sarawak. The contract is estimated to worth at least RM 1.1 Billion for
Naim Holdings Berhad.
5)NAIM CASHING IN ON AFFORDABLE HOUSING
KUCHING: Naim Holdings Bhd, which has a
huge landbank in Sarawak’s major towns, expects to build at least 1,000
units of affordable houses in three years to cash in on market demand.
Managing director Datuk Hasmi Hasnan said Naim’s main focus was to
build more affordable houses in Miri, Kuching and Bintulu where it has
over 2,500 acres of prime land.
The land has an average book value of RM170,000 per acre and RM4 per square foot.
Hasmi said Naim had in the past several years switched to undertaking
high-end residential property projects like high-rise condominiums
because the government was very aggressive in building affordable houses
like 1Malaysia People’s Housing or 1PRIMA nationwide.
He said as the new Pakatan Harapan government would like to see the
private sector’s participation in providing affordable homes, “we see we
can play our role here”.
Hasmi said Naim had received good market response to its newly
launched affordable housing scheme Primrose Terraces in SouthLake
Permyjaya in Miri.
“The single-storey terrace houses there are offered at about RM300,000 each,” he told StarBiz after the company’s AGM here.
NOTE: NAIM COST OF LAND ONLY RM4 PER SQ FT
ONE ACRE LAND CAN BUILD 10 HOUSES OR RM3 MILLIONS
THE PROFIT WILL BE PHENOMENAL
6) PROXIMITY TO BRUNEI (NAIM'S MIRI LANDBANKS
NAIM'S HOUSING ENCLAVE IN MIRI IS ONLY 2 HOURS BY CAR TO BRUNEI
It takes more than 8 Hours by Car from Brunei to Kota Kinabalu
Just like the Strong Singapore Dollar the Brunei Dollar is worth Rm3.00 each
So expect NAIM's Properties to sell well in Miri
NAIM ALSO HAS INVESTMENT IN DAYANG
For that I quote from post of one i3 Forumer:
Author: Ekor Harimau | Publish date:
There is no
misleading or bullshit here, so I will put a link there for your
reference. I list down only 5 reasons why Dayang Enterprise is a good
proxy for Carimin Petroleum, especially for now.
1) 84% vessel utilization rate. Yup, it is 84%
How much the
vessel utilization rate in March 2018? It was only 27%. Then it had
increased to 70% in Jun 2018. Now the vessel utilization rate of Dayang
is as high as 84%. What it means by such high vessel utilization rate?
It means the worst is over for Dayang, so they had recorded very good
results in second and third quarter 2018.
2) Secured multiple MCM contracts last year, NOT only one
Yes, multiple
MCM contracts has secured last year. These projects are secured from
Petronas Carigali and other oil & gas players in local industry.
This year they will bid for the contracts worth RM600 million, both
local and overseas.
3) Sustainable EPS but share price lagging behind
As you know,
Carimin Petroleum had been shot up from RM0.205 to RM0.85 just in few
months. And for Dayang, it has ranged from RM0.50 to RM3.90 within this 5
years. Too early to say it will return to its glory time but I’m sure
that the downside risk is very very very limited now. (The important
thing must say 3 times)
4) The group "firmly believe" the worst is over
“We firmly
believe that 2018 will be a real turnaround for the group after
experiencing poor results over the past two financial years…” You can
read this statement on their latest quarter prospects. Looks like they
are very confident that they will turnaround this year.
5) Improving balance sheet in next few quarters/years
Dayang's management very
confident that their balance sheet will continue to improve
"significantly" as the impressive financial performance in the third
quarter has indirectly demonstrated the financial discipline undertaken
to turn around the company.
If you missed
the Carimin Petroleum, maybe Dayang is another good proxy to you. But
please do your homework before buying. Please feel free to comment.
Thank you for reading.
So what should be the Intrinsic Value of Naim
Uncle KYY has calculated the price of carimin due to its one quarter result
And i quote
Carimin: Waiting for Correction Strategy - Koon Yew Yin
Author: Koon Yew Yin | Publish date:
Mon, 4 Feb 2019, 12:30 PM
""In my previous article namely Carimin-is doing what business, I said that just based on its 1st Q EPS of 5 sen, I have projected the company will most likely report 4 X 5 = 20 sen EPS and its share price can be selling at Rm 2.00, equal to P/E 10.""
In the simplistic (simpleton) way of projecting carimin share price at P/E 10 Kyy used the forward EPS of 5x4 for carimin
Should we use this to calculate NAIM?
Then it will be 12.8 x 4 = 51.2 sen
And if PE 10 then NAIM should be Rm5.20 target price?
Of course not! This is not maths. This is madness
BEST REGARDS
Calvin Tan
Singapore
STOP PRESS!
A more realistic Value of Naim at this juncture would be:
1) The 30% Discount from NTA method by Ben Graham
Ben Graham & Walter Schloss look for at least 30% discount to Value of Assets
So Rm2.40 X .7 = Rm1.68 would present a 30% discount
So is the Target Price of NAIM at Rm1.68?
2) Marks Howard does not predict future earnings. He works from the present
So take this latest quarter true EPS of 12.8 sen
So 10 times PRESENT P/E would be Rm1.28
3) So wil the Target Range for NAIM be Rm1.28 to Rm1.68?
No one knows exactly how things will turn out as it is yet future
But these are some pointers
Have a fruitful & profitable day!
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/192653.jsp
