POS (4634) - JACKMA JV WITH POS MALAYSIA WLL LIFT UP POS INTO A BLUE CHIP & DRB TO RM5.00 (Calvin Tan)
Dear Fellow Investors in i3 Forum,
I am so happy & elated today. 2 Top News emanation from Pm Najib's latest visit to China will benefit these 2 stocks the most
1) MRCB - East Coastal Highway (Rm55 billion) will join this Rail network to KL. Forming a Transport Heart in KL. A Whopping Rm160 billion is planned for Bandar Malaysia. Being TOD (Transport Oriented Developer) how much will MRCB get from the project?
2) The Top News is Pm Najib meeting with JackMa to propose ECommerce Business.
This is already expected earlier
See
Pos Malaysia plans to provide logistics services to Alibaba
Pos Malaysia is seeking a more direct role in providing logistics services to Chinese e-commerce giant Alibaba
KUALA LUMPUR: Malaysia’s biggest postal company is seeking a more direct role in providing logistics services to Chinese e-commerce giant Alibaba Group Holding Ltd., tapping a boom in online retailing.
Pos Malaysia Bhd. plans talks with Alibaba this month on bypassing the middlemen when shipping goods sold on its platforms, Datuk Mohd Shukrie Mohd Salleh, its chief executive officer, said.
Surging parcel deliveries for online shopping drove a 40 percent jump in profit in the fiscal first quarter and full-year earnings will be higher than a year earlier, he said.
“My focus is still e-commerce, and it is driving the logistics business. When e-commerce is booming, somebody needs to deliver these items,” Mohd Shukrie, 42, said in an interview at the company’s headquarters in Kuala Lumpur on Sept. 27.
“Marketplace owners wants to deal with logistic players directly. I’m going to China to meet up with Alibaba and other market players” in October, he said.
Postal companies in Asia are remodeling themselves by expanding overseas to meet rising demand spurred by a global retail e-commerce market valued at about $1.2 trillion by the Universal Postal Union.
Pos Malaysia, which started work in the early 1800s delivering mail by bicycle, is the top performer this year among 14 global courier stocks with a market value of at least $500 million, recording a total return of 49 percent, beating United Parcel Service Inc. and FedEx Corp.
Pos Malaysia stock has soared 88 percent from a February low as record earnings from its courier business and a potential increase in tariffs for the first time in six years buoyed the shares. The government is examining its proposal for higher postal rates, said Mohd Shukrie. The company is valued at 25 times its 12-month projected earnings, versus 18 for UPS, the world’s most valuable courier company.
Alibaba said its delivery affiliate Cainiao Smart Logistics Network Ltd. “works collaboratively with logistics participants to enhance customer experience and operation efficiency. “It is natural we talk to industry participants,” it said in an e-mailed statement in response to queries by Bloomberg News.
While Pos Malaysia handles parcel deliveries for Alibaba through freight forwarders, or so-called consolidators such as Japan’s Sankyu Inc., the Kuala Lumpur-based company wants to deal directly with these marketplace owners, said Mohd Shukrie.
Eliminating Middlemen
“The future is about cutting the middleman, and the existence of consolidators will be under threat,” he said. “Right now, we deal more with consolidators for parcels from China to the world, but understandably marketplace owners want to deal with logistic players directly.”
Consolidators collect and group outward-bound cross-border mail to specific destinations and negotiate special rates with the public postal operators to distribute the bulk mail in the designated countries.
Recent Corporate Exercise has put DRBHICOM the majority owner of POS Malaysia by increasing its paid up shares of POS from 32% to a new high of 53%.
Company Announcements
SO THE JV VENTURE BETWEEN JACKMA OF ALIBABA WITH POS MALAYSIA WILL SPUR THE PRICE OF DRBHICOM.
DRB Bought 245.750 Million shares of POS at Rm3.33
The Closing price of POS today is Rm4.00 per share. What is the paper profit of DRB in the recent rise of POS price?
= 245,7750 x 3330 = Rm818 millions (Cost of Purchase)
After Price rise = 245,750 x 4,000 = RM983 million
So the paper profit is Rm983 mil - Rm818 mil = a nice Rm165 mil profit.
What is the Total Shares of POS DRB owned?
418.748 million or 53% of POS total Paid Up Shares.
How much is the total current worth?
So 418,748 x 4,000 = RM1.674 BILLION.
So DRB has RM1.674 BILLION WORTH IN POS MALAYSIA. IF POS Price doubles to Rm8.00 a share. Then DRB would also doubles to Rm3.348 BILLION.
Now Apart from The CASH INVESTED IN POS DRBHICOM Has Lots of Quality Assets
Pls refer to AR 2016 of DRB.
The Total Property Listed (not complete) shows a total combined Land value of Rm2.836 BILLION.
So just the Value of Rm1.674 Billion in POS & Rm2.836 BILLION in Assets (Lands) is enough to settle the debt of DRB Hicom.
POS also has Car Manufacturing Business. Motorbike, Commercial Truck manufacturing, Military 8x8 Manufacturing. Alam Flora Cleaning Service & above all Puspakom.
PUSPAKOM is a monopoly. Just like Vicom (Singapore. price of Vicom is S$5.70 a share). It is a CASH COW Just like MyEG. With the multiplied millions of cars & vehicles in Malaysia there is a guaranteed stream of Income for Puspakom!
DRBHICOM - A SHARE SELLING AT HUGE DISCOUNT TO NTA PROVIDES A HUGE MARGIN OF SAFETY
Now DRB Closing price today is Rm1.27. Its NAV is Rm3.29.
So DRB is selling at a Whopping 62% Discount to NTA!
Now the surprising thing about DRB and also POS Malaysia are their very undervalue land banks
A check with DRB's Top Properties
shows that DRB own 584.8 Acres of Prime Commercial/Residential Lands in Tebrau, Johor valued at only Rm471.322 Million
or only Rm18.50 per sq ft.
NOW WHERE CAN YOU GET A PIECE OF FREEHOLD RESIDENTIAL/COMMERCIAL LANDS FOR ONLY RM18.50 PSF IN TEBRAU, JOHOR TODAY?
So from these few facts highlighted we know:
1) JACKMA JV WITH POS MALAYSIA will greatly benefit the future income of Pos Malaysia. And DRBHicom by Virtue of its 53% stake in POS Malaysia will be the Top Beneficiary.
2) DRB is Selling at Rm1.27 with NTA of Rm3.29 - a Huge 62% Discount with Big Margin of Safety.
3) ALL the LandBanks of POS & DRB are still grossly undervalue. If revalued the NTA should be many fold more
4) Last Budget Speech Pm Najib made many proposals that will benefit DRB Directly
a) Rm5,000 discount to encourage Uber Drivers to buy DRB made Proton Iriz
b) Loan for Govt Servants increased from Rm5,000 to Rm10,000 for Motorbike. DRB made MODENAS
c) More EVisa for Tourism which will Benefit DRB/POS Airport Services
d) Military 8x8 tanks for Sabah's Defense
e) ECommerce by Encouraing Higher Broadband Speed. Now JV with Alibaba for immense expansion worldwide.
f) DRB/POS also got a Fleet of Trucks for transport/logistic & more goods delivery through ECommerce
g) Delivery of Goods by Planes to East Malaysia by POS
h) Lots of inspection business for Puspakom
i) Many other Undervalue LandBanks of POS & DRB to be Unlocked.
5. BANKING BUSINESS THROUGH BANK MAUMALAT
In Malaysia, getting a Banking License is like being given A Money Minting Machine. And DRB owns 70% of BANK MAUMALAT, the other 30% is owned by Khazanah which is Govt owned.
SO ALL THESE CONVERGING FACTORS WILL CAUSE WEALTH & BUSINESS TO FLOW INTO DRBHICOM COFFERS
As Warren Buffet says, "If a business does well its share price eventually follows"
Calvin Tan Research has a Target Price for DRB Hicom at Rm2.80 (One third of POS share price at Rm4.00)
WARM REGARDS,
CHEERS
Calvin Tan
Jurong West, Singapore
STOP PRESS! STOP PRESS!!
I bought Singpost Shares (Singapore for 95 cts) Singpost current price is S$1.60. Singpost pays a nice dividend yearly. Alibaba is the Top 2 holder of Singpost shares. There is a possibility JackMa might also invest in POS Malaysia shares (yet to be seen).
I missed Vicom (The Puspakom of Singapore). This Vicom is now S$5.70 a share. This is a Cash Cow & Monopoly in Singapore. Every other year my Singapore car must be sent to VICOM for inspection to get a cert for road worthiness. In order I can renew my car insuarance & get another year of roadtax. Failing VICOM test I will have to send my car for repair or service so that it can be reexamined for road worthiness.
Who knows?
With so many accidents in Malaysia Govt of Malaysia might also make it mandatory not only for ownership transfer but also for roadtax renewal - That all cars and vehicles MUST BE INSPECTED BY PUSPAKOM Before a Roadworthy Cert is issued for insurance/roadtax renewal in Malaysia. If so, then Puspakom will really turn into a CASH COW LIKE MYEG (My Emas Gold)
http://klse.i3investor.com/servlets/cube/calvintaneng.jsp
