Why do you want to punt other stocks when U have a sure win Bumiputera company that will benefit from MEGA Infrastructure?
A lot of people must be puzzling, why does GFM will get a chance on those Mega Infrastructure? Well, the reason being is obvious, which GFM is Bumiputera Status Company with diverse experiences with good reputation in Malaysia and abroad. This can be well explained when they got The BrandLaureate Bumiputera Bestbrands Awards in 2018.
Source: http://www.thebrandlaureate.com/page-index-id-560
On the other hand, GFM is also an initiative of TERAJU where the objective of Teraju is :” TERAJU, Unit Peneraju Agenda Bumiputera, ditubuhkan pada tahun 2011 sebagai unit strategik dibawah Kementerian Hal Ehwal Ekonomi bertujuan meneraju, memacu dan menyelaras penyertaan Bumiputera dalam ekonomi negara.” As GFM is a brainchild of this TERAJU, do you think the government will let it down? Or they will pump it up until it become a giant?
Source: http://www.teraju.gov.my/pengenalan/
Source: https://www.nst.com.my/news/nation/2017/12/310467/skim-jejak-jaya-bumiputera-bumiputera-firmsstocks-keep-rising
After the resumption of all these Mega Project, such as ECRL, Bandar Malaysia, and next will be either LRT 3 or ECRL. We all clearly knew that these project will definitely keep 1 big slice of cake for Bumiputera contractor. We can see that even Tun Daim is asking the Bumi’s contractor to meet him, so what does this mean?
Source: https://www.freemalaysiatoday.com/category/bahasa/2019/04/19/datang-jumpa-saya-daim-beritahu-kontraktor-tempatan-mahu-projek-ecrl/
On the other hand, our Economic Minister had also told the press that the Bumiputera contractor will not be left out too.
Looking at the track record, GFM have got various good record and have got big jobs from the government and private companies. The best example is that they get a lot of government projects and also Joint venture with UDA Holdings to secure Bukit Bintang City Centre facility management consultancy which is 1 of the most famous project in Malaysia. On the other hand, they also got the project from Bank Negara Malaysia to manage their facilities. It is suffice to say that this company is strong enough to get more projects from the Mega infrastructures.
Source: https://www.edgeprop.my/content/1204404/gfm-inks-deal-uda-provide-management-services-bukit-bintang-city-centre
Source: https://www.thestar.com.my/business/business-news/2019/02/07/gfm-wins-bank-negara-facilities-management-job/
As u know, UDA Holding is a GLC that belongs to Minister of Finance, so what does this tells u? Could this related to some bigger picture behind which related to our government’s plan? Could GFM be part of the bigger picture?
Source: 1. http://www.uda.com.my/index.php/home/corporate_profile
2. https://en.wikipedia.org/wiki/UDA_Holdings
As we can see, GFM is competent to clinch a slice of these Mega infrastructure’s project with their Bumiputera status and their special relationship.
On the other hand, we saw that the government are mulling buyout on Kg Baru.
Source: https://www.malaysiakini.com/news/473198
This is nothing new and the one which will be doing it potential to be UDA Holdings.
Source: https://www.bharian.com.my/node/89889
Why must it be UDA holding? This is because UDA stands for Urban Development Authority of Malaysia. So isn’t it obvious enough why they need UDA? Because UDA is the only qualified government entity to do it. Unless we got 1MDB or else, all these development will be under UDA which is also mean it belongs to the government and all the money being made won’t be siphon out.
So how will it affect GFM? well, as a partner and having close ties with UDA Holdings, any new development should be related to GFM right???
Instead of punting those so called “sisters” companies, I believe GFM is definitely a better choice! Bearing any unforeseen circumstances, we believe the mother share are safer as GFM is paying dividend soon.
The decision is yours and hopefully soon we will get some good news from this counter.
https://klse.i3investor.com/blogs/logictradinganalysiss/203728.jsp
