In Chinese Society, there is a saying "商不宜跟官斗“ meaning as business men we should not go against the will of the government. Business men should be pro government. but lately we have seen many destructive business that getting stronger such as UBER, GRAB CAR, AIRBNB. Many business model has change and getting much more sophisicated.
So, let talk about the New Malaysia Government Vision first. Malaysia government is a caring government and knowing that many Malaysian wish to own a house but due to low wages that we as Malaysian getting for many years and housing price at the level which ordinary working class can't afford to own a house.
News release on 28 Jan 2019
Housing and Local Government Ministry is targeting to build 1 million
units of affordable homes for the B40 group within the next 10 years.
It’s Minister Zuraida Kamaruddin said the aim is to build 100,000 units
each year continuously, to enable more people, especially low income
earners, to be house owners.
Source obtain from https://www.nst.com.my/news/nation/2019/01/455336/govt-build-1-million-affordable-homes-b40-10-years-zuraida
News release on 17 Mar 2019
Source obtain from https://www.thestar.com.my/news/nation/2019/03/17/govt-to-use-ibs-tech-for-affordable-homes/#x825ZgKZsqYPFqHj.99
So, ongoing forward we should expect more affordable home to build up to cater the need of B40 in Malaysia.
Let talk about Kimlun first and understand what is this company doing.
Picture tell thousand word. Let see the picture what is KIMLUN doing.
So, from the company website, it is showing KIMLUN get involve into 5 segments which is :
1. Construction & Engineering
2. IBS
3. Precast Concrete
4. Property Development
5. Quary Products
I will bring you all into this topic to understand further this area
first. So, completed project is no longer concern for us. Is only to
proof what have they achieve in the past. Now, we focus what are the
ongoing project.
Ongoing project is Austin Regency and Hospital UKM. So, we assume
government is good pay master and no issue if KIMLUN deliver as per
stated in the specification draft to the government.
From the ongoing project such as Pan Borneo Highway, Rumah SelangorKu,
PPA1M and other. It seem that they are the beneficiary if government to
continue to spur the economy via construction and property development.
In order to be eligible to apply for rumah selangorku. I attach the print screen for hte rumah selangorku website
So, let move on to IBS. What is IBS?
IBS is an improved system of construction that uses industrial
production techniques either in the production of components or assembly
of buildings, or both. One of these techniques is the utilisation of
standardised forms of precast concrete and prefabricated steel
structures in construction works – it's basically the industrial
production of components through prefabrication. The system also
involves offsite, and to a lesser extent, on-site, mass production of
building components.
This system of construction allows for a more efficient and cost
effective construction cycle because the precast concrete and
prefabricated steel structures for each individual project are
customised and standardised. Other notable benefits included greater
consistency as well as improvement of quality in the fabrication of
these structures. These precast concrete and prefabricated steel
structures are particularly useful for high rise buildings or mass
housing estates where a similar structure can be replicated numerous
times. In the simplest of words, the adoption of IBS gives you shortened
construction period, lower costs and better construction quality.
With all the benefits, Kimlun is moving towards being a full-fledged IBS builder:
Source obtain from http://www.kimlun.com/kimlun-corp/industrialbuilding-system.php
Let cut the story short, we analyse from fundamental and technical point of view first
PE : 7.83
NTA : 2.00
TOP 10 MAJOR SHAREHOLDER
HISTORICAL FINANCIAL RESULT
GROWING NTA and revenue. Good
Reducing EPS and lower dividend payout. Bad
Technical Point of View :
VOLUME ACCUMULATION PRICE RANGE : 1.14 - 1.19
VOLUME TRAP AT THE HIGH SIDE RANGE : 2.10 - 2.30
TECHINICAL INDICATOR :
SH TREND : BULLISH
MACD : BULLISH
RSI : ABOUT TO OVERBOUGHT ; BEWARE OF TECHINCAL PULL BACK
Conclusion: KIMLUN should be the benefiicary of the government resume
construction project and KIMLUN has strong footage at Johor Bahru. If
Johor Bahru going to have a new port which the HK tycoon Lee Kar Shing
coming in. Property demand will surge up. So, overall, remain positive
toward the outlook unless there is any major changes on the government
policy.
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免责申明: 以上文章纯属个人意见以及学术性分享，不构成任何买卖建议。在你做出任何买卖之前，建议您和你的股票经纪质询任何投资意见。买卖风险自负
Disclaimer: Above article is for educational sharing purpose. Kindly
consult your dealer/remisier for any investment advise before you make
any decision. Trade at your own risk.
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