DRBHCOM (1619) - HIBISCUS Versus DRB-HICOM: Compare & Contrast Their Current Status & Potential (Calvin Tan Research)

DRBHCOM (1619) - HIBISCUS Versus DRB-HICOM: Compare & Contrast Their Current Status & Potential (Calvin Tan Research)

Hi Guys/Gals,
Another challenge! Another Con Man Stock?
Hibiscus Versus DRB Hicom: Compare & Contrast Their Current Status & Future Potential
Hibiscus is the Top Traded Stock today in Bursa.
Why chased up?
Let's take a look at Hibiscus latest Quarterly Result:
Ha! It shows a 5.91 cents earning this quarter.
True or not?
Let's dig further.
It showed a Rm54.7 million in revenue.
But a profit of Rm80.2 million?
How come?
Revenue is only Rm54.7 million & can get a profit of Rm80.2 million? Looks fishy indeed!
Rm72.8 million is under "Taxation" refund or rebate or what? This is not from operating profit but accounting trick. A real con job stating this as "profit".
So Rm80.2 million - Rm72.8 million = Rm 7.4 million "profit"
Look again!
Ha! there is another Rm17.5 million from foreign currency gain!
So Rm7.4 million - Rm17.5 million = - Rm10.1 million loss this quarter from actual company operation!!
OH BOY! ANOTHER BIG CON JOB HERE!!
So stripping off "illusory taxation gain" & foreign exchange gain which are one off the actual loss this quarter is Rm10.1 Million!
SURPRISE! THERE IS AN OPERATING LOSS OF 0.74 CENT THIS QUARTER FOR CONMAN HIBISCUS!!

Don't believe? Still not convinced?
Let us investigate further then
Now let's scroll down to CASH FLOW ACCOUNTS

Net cash generated from financing activities.............................................................................Rm16.420,000
 Net decrease in cash and cash equivalents..................................................................................(12,303,000)
Effects of foreign exchange rate changes........................................................................................... 671,000
Cash and cash equivalents at beginning of the financial quarter ...................................................28,746 ,000
Cash and cash equivalents at end of the financial quarter............................................................. 17,114,000
Can you SEE that there IS AN ACTUAL DECREASE IN CASH OF (12,303,000) + gain from foreign exchange of Rm671K
So the NET LOSS OF CASH IS RM11,632,000?
RM11.6 MILLION CASH WIPED OFF THIS QUARTER!
And where did extra monies come from. From endless private placements that kept diluting value like another conman KNM?

TOMORROW! FIRST THING IN THE MORNING BETTER SELL ALL HIBISCUS TO OTHER SORCHAI
You will be glad you did before this  "high bastard" con man stock goes limit down suddenly like comcorp last round!
Then switch your monies to the safety of DRB HICOM
There are the ROCK SOLID REASONS FOR BUYING DRB HICOM

20 Reasons Why DRBHicom will perform well for Year 2017 (Calvin Tan)

Author: calvintaneng   |   Publish date: Tue, 13 Dec 2016, 02:27 AM 

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These are the REASONS you must investigate carefully:

1) GE14 IS ON!

Umno Wanita has asked for prominent positions to be given to Malays in GLC during  UMNO Meeting.

This shows that GLC Linked Stocks are well connected politically. So DRB is on target to go up!

2) CASH OF 13 CTS FOR POS SHARE PRICE RISE

Last report showed a deduction of Rm130 mil due to Pos remeasurement. By the same token Now that DRB's 53.5% share of POS has gone up from Rm3.26 to Rm3.93 there is a Rm280 Million gain or about 13 cts. So next quarter result should register at least 13 cts gain.

3) Disposal of Corwin Generates Another Rm529 Milllion Gross Profit for the qr of Feb 2017.

This will help to reduce the gearing &  borrowings of DRB Hicom

4) DRB QUALIFIES AS A GRAHAM NET NET BUY!!

Price at Rm1.02 With NTA Rm3.16 DRB is selling at A Huge Margin of safety. This qualifies as a Ben Graham Net Net Stock.

No wonder value investor like Lim Pei Tiam is top 30 share holders! If Walter Schloss is alive he will surely include DRB in his portfolio! And Walter Schloss is one of the SUPER INVESTORS of All Time according to Warren Buffet!

5) DRB GOT POS. NOW 53.5% OWNERSHIP. A POWERFUL MONOPOLY

POS is a monopoly & has 200 years history. So it is highly defensive!

6) DRB Also Own PUSPAKOM ANOTHER POWERFUL MONOPOLY

Another monopoly! Warren Buffet likes company with a defensive moat. So DRB has not one but 2 defensive moats: POS & PUSPAKOM!

7) OWN 70% Of Bank Maumalat

This Islamic Bank also got Islamic Pawn shop. Like RceCap this is another Cash Cow!

8)  POS/DRB going into the HUGE ECOMMERCE ONLINE MARKET THROUGH A STRATEGIC MERGER!

This 53.5% of POS position by DRB enables both to GO BIG TIME INTO THE SUN RISING INDUSTRY OF ECOMMERCE

Amazon of USA & Alibaba of China captured the traditional businesses by storm.

The same is now happening in Malaysia. Next year is Internet Digital Year of ECommerce\

9) HOT NEW! NEW NEWS! JACKMA COMING By MARCH 2017 TO LAUNCH E FREE TRADE ZONE!

POS Has Planned JV with Alibaba of China!! This March ECOMMERCE Will Dominate the Headlines of all Media, Newspapers, Researchers & Analysts

10) At Rm1.20  DRB Qualifies as Calvin's 3rd Rule

HE THAT IS LOW NEEDS FEAR NO FALL

11) Roaring Sales of Proton Ertiga

Suzuki Ertiga is

Top Champion Seller in India

Top 2 Champion in Indonesia

Top 10 Best Seller in Philippines

In Ulu Tiram, Yong Ming Motor Dealership the response is so good that even the test drive display unit was sold & driven away immediately!  Proton might JV with Suzuki to capture back market shares

12) Unlocking of POS/DRB landbanks

There is deep value hidden in POS/DRB landbanks.

Pos Malaysia’s land value ripening but not for Khazanah

Apart from operating a sprawling nationwide network of postal service outlets, the golden egg in Pos Malaysia Bhd’s nest is the strategic land its properties occupy.

But with the recent sale of Khazanah Nasional Bhd’s 32.21% stake in Pos Malaysia to DRB-Hicom Bhd for RM622.8 million, it appears that the national postal operator’s valuable landbank had been given little time to ripen.

As part of the deal, Pos Malaysia has to obtain Federal Land Commission (FLC) approval for some 16 pieces of leased land to also be used for commercial purposes, in addition to postal services.

Should Pos Malaysia fail to secure the liberalisation of land usage by year-end, Khazanah Nasional shall refund DRB-Hicom part of the RM17.3 million which formed the total purchase consideration.

The four large pieces of land Pos Malaysia directly owns have a combined size of 10.5ha and an estimated market value of RM218.5 million, according to AmResearch’s data.

This includes Pos Malaysia’s Pos Laju centre and a vehicle warehouse along Jalan Tun Sambanthan in Brickfields, not far from KL Sentral.

AmResearch estimates that the 0.9ha Brickfields land alone is worth some RM176.3 million or RM1,500 psf.

This is not bad given that the estimated net book value of the land was a mere RM2.2 million.

Surely, this begs the question as to whether Khazanah Nasional and by extension, the government, could have gotten a better deal had it first obtained the green light for reclassification of the land before putting up the stake for sale?

Pos Malaysia has been holding these properties for a very long time, but there had been no real push in the past to obtain approvals to develop commercial properties on the land.
It is worth noting that there are 16 properties leased by Pos Malaysia from the FLC which are pending reclassification.

The most valuable land awaiting a status transfer is Pos Malaysia’s 1.3ha on Jalan San Peng, near the proposed Pudu Jail land redevelopment site by UDA Holdings Bhd and its joint venture partners.

AmResearch said it is positive about the liberalisation negotiation on the land, which currently houses workers’ quarters.

The research house estimates the prime land to be worth RM107.4 million, compared with its book value of just RM6 million as at end-2009.

According to calculations by AmResearch, Pos Malaysia could see a 55 sen per share revaluation surplus by just taking into account the four plots of land directly held by the company and assuming a successful bid to reclassify the Pudu land for commercial purposes.

In late April, OSK Research was among those who had opined that the RM3.60 per share acquisition price was unattractive, shortly after Khazanah Nasional’s decision to divest its shareholding in Pos Malaysia to DRB-Hicom had been announced.

Among other reasons, OSK Research said the price DRB-Hicom was paying for the strategic stake did not adequately reflect the value of Pos Malaysia’s landbank.

DRB-Hicom may have been able to bargain for the purchase consideration to exclude the potential future land premium given that DRB-Hicom would have to inject substantial investments to refurbish post offices and upgrade IT infrastructure, OSK Research said.

Analysts expect DRB-Hicom, a company controlled by tycoon Tan Sri Syed Mokhtar Albukhary, to unlock the value of Pos Malaysia’s land by embarking on redevelopment projects instead of going the route of selling the land outright.

“We believe that with the impending entry of DRB-Hicom and its property development arm, Hicom Properties Sdn Bhd, Pos Malaysia may co-develop the land with new owners,” AmResearch said in note in April.

If this comes to be, the government is effectively excluded from realising the full value of the land Pos Malaysia occupies.

Khazanah Nasional’s divestment of its stake in Pos Malaysia after a keenly watched bidding process had put pressure on the latter’s stock price since April.

13) POS is a Monopoly with Pricing Power. POSTAGE PRICE INCREASE!!

Pos Malaysia plans up to RM200m expansion 

The wholly owned subsidiary of Pos Malaysia, PosLaju is planning to spend up to RM200m to build 3 more integrated parcel centres (IPC) for the expansion of its express and courier service’s capacity. IPCs are “fully automated” centres and rely heavily on automated machines with only 20% manual intervention. The expansion for PosLaju is necessary in view that e-commerce is growing tremendously and as enhancement to its services as the main postal provider in Malaysia. 

The three new IPCs will be able to increase the parcel processing capacity of PosLaju to 1.5million items per day from the current 400k items per day. – The Edge 

Calvin comments: 

There is a projected rise of 90 cts for each parcel delivery. 

If Pos Laju expands to 1.5 mil items per day it means 

1.5 mil x .90 cts = Rm1.35 millions per week day or Rm6.75 mil per week. 

And for 1 year = 6.75 mil x 52 = That's Rm351 millions extra profits per year. 

This is the pricing power of a monopoly like POS. No wonder DRB has increased its stake tp 53.5%.

14) POS has many other Landbanks: One of them is in JB with 217778 sg ft lands. Book value is Rm11,560,702 or Rm53.00 psf or about S$16.50 psf

IOI just bought a plot of land near Marina May, Singapore for S$2.6 Billion which worked out to almost S$1,700 psf

And DRB has 25 million sg ft of lands in Tebrau, JB with a book value of only Rm18.50 psf (or S$5.75 psf!!)

When Shenzhen was first launched Lands nearest Hong Kong fetched only a fraction of the price in HK. Later it was narrowed to 1 HK is to 6 Shenzhen value. And then Shenzhen prices overtook that of HK!

With Booming Construction in Iskandar POS/DRB Johor Lands are bound to go up.

15) HSR Signing Today!

All of POS/DRB prime prime land banks will also appreciate further by High Speed Rail Commection. Especially POS lands which are sitting on gold mines.

 During last Budget Speech Pm Najib mentioned these which will directly benefit DRBHicom

16) Purchase of 8x8 Defense Tank for Sabah

This will boost DRB coffers directly

17) PROTON IRIZ (AS UBER TAXI)

A special Rm5,000 rebate will be given for PROTON (No other brand mentioned)  IRIZ for Uber Taxi

18) MOTORBIKE LOAN INCREASED FROM RM5,000 to RM10,000

DRB manufactures MODENAS BIKE Also Make Engines for all other Bikes

There is a huge surge in demand in Johor. Lots of Johoreans are going into Spore by bike for work everyday. Demand for motorbikes here exceed supply!

19) INCREASING ROAD FATALITIES : PUSPAKOM MIGHT FOLLOW SINGAPORE VICOM FOR YEARLY INSPECTION FOR VEHICLE ROADWORTHINESS

Puspakom inspects every car before transfer of registration. It also inspect yearly the road worthiness of commercial vehicles like buses, lorries & blind vans.

One day due to the high accident rate in Malaysia Govt might follow Singapore's VICOM by requiring the inspection of even private cars for roadworthiness due to the high rate of accidents in Malaysia.

Just like MyEG Puspakom is a Monopoly. Just as MyEG has pricing power So Puspakom can also raise prices. Both are Cash Cows.

20) DRBHICOM - A Stock Whose Time Has Finally Come!

GE14 is now on! And DRB is a GLC Linked Stock!

This year 2017  is the Year for Digital Internet ECommerce

And This March 2017 Jackma of Alibaba will launch E Free Trade Zone & JV with POS/DRB

DRBHCOM (1619) - HIBISCUS Versus DRB-HICOM: Compare & Contrast Their Current Status & Potential (Calvin Tan Research)
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