Hi guys, Please continue reading while I type
While doing Research on Oil & Gas Stock I discovered Pantech. But I also noticed Dialogue
Generally I have only focused on Stocks with High NTA as a Margin of Safety. To my suprise although Dialogue does not have high NTA it has a Very Solid Moat like Nestle, Coco Cola or Geico
So I did a further study and got a few surprises
1) I SAW SINGAPORE GOVT INVESTED 2 FUNDS INTO DIALOGUE
Please go to Annual Report & Scroll down to Top 30 Shareholders of Dialogue
Coming in at Top No. 5 is
5 CARTABAN NOMINEES (ASING) SDN BHD < GIC PRIVATE LIMITED FOR GOVERNMENT OF SINGAPORE (C) > 167,666,272 2.97%
At Top No. 5 position is GIC (Government Investment Fund of Singapore) holding 167.6 Million Dialogue shares at 2.97%
28 CARTABAN NOMINEES (ASING) SDN BHD < GIC PRIVATE LIMITED FOR MONETARY AUTHORITY OF SINGAPORE (H) > 34,159,266 0.61
And at 28 position is MONETARY AUTHORITY OF SINGAPORE (MAS) with 34.1 Million shares of Dialogue (0.61%)
Now this really piqued my interest. Why SINGAPORE GOVT IS SO BULLISH ON DIALOGUE SHARES?
2) DIALOGUE AS WE KNOW IT HAS A PERPETUAL TANK MAINTENANCE FOR RAPID JUST AS PANTECH HAS A PERPETUAL MAINTENANCE CONTRACT FOR ITS OIL PIPES AND VALVES
A REFINERY MAINLY CONSISTS OF OIL STORAGE TANKS & THE PIPES THAT TRANFER OIL FROM TANK TO TANK OR FROM SHIP TO TANK, OR FROM TANK TO REFINERY
SO PANTECH FOR PIPES & DIALOGUE FOR ITS TANKS
SO BOTH HAVE LOCKED INTO A LONG TERM CASH COW
LAST TIME PROPEL LOCKED INTO THE MOST PROFITABLE CONTRACT WITH PLUS HIGHWAY
PROPEL RECEIVED THE SOLE MAINTENANCE CONTRACT FOR THE PLUS NORTH SOUTH HIGHWAY FROM THE VERY NORTH NEAR THAI BORDER ALL THE WAY TO THE SOUTHERN STATE OF JOHOR
PROPEL MADE SO MUCH MONIES THAT UEM FINALLY TOOK IT PRIVATE!
BUT IS THAT THE ONLY REASON WHY SINGAPORE GOVT INVEST IN DIALOGUE?
3) LATEST ANNOUNCEMENT SHOWS THAT DIALOGUE IS RECLAIMING 300 ACRES OF LAND FROM THE SEA AND WITH 500 ACRES MORE IN RESERVE FOR FUTURE EXPANSION
NOW WE ARE GETTING SOME CLUES
4) LET'S GO OVER TO JURONG ISLAND REFINERY & SEE
Jurong Island (FREE WIKIPEDIA)
Jurong Island is an artificial island located to the southwest of the main island of Singapore, off Jurong Industrial Estate. It was formed from the amalgamation of seven offshore islands, the islands of Pulau Ayer Chawan, Pulau Ayer Merbau, Pulau Merlimau, Pulau Pesek, Pulau Pesek Kechil (also called Terumbu Pesek), Pulau Sakra (which was a previous merger of Pulau Sakra and Pulau Bakau), Pulau Seraya, Pulau Meskol, Pulau Mesemut Laut, Pulau Mesemut Darat and Anak Pulau. This was done through Singapore's land reclamation efforts. Land reclamation on Jurong Island was completed on September 24, 2009, 20 years earlier than scheduled. Pulau Buaya was joined to Jurong Island via reclamation in 2010. Jurong Island forms a land area of about 32 km2 (12 sq mi) from an initial area of less than 10 km2 (4 sq mi), and is the largest of Singapore's outlying islands.
JURONG ISLAND WAS FORMED BY JOINING 7 OFF SHORE ISLANDS WITH RECLAIMED SAND TO FORM A HUGE ISLAND COMPLEX FOR CHEMICAL INDUSTRIES
FROM A HOWLING WASTE LANDS OF LITTLE VALUE JURONG ISLAND HAS BEEN TRANSFORMED
LET'S READ FURTHER
The outlying islands of Pulau Ayer Chawan, Pulau Ayer Merbau, Pulau Merlimau and Pulau Seraya were used to house fishing communities comprising small villages up to the 1960s. The villagers lived in Malay-style wooden stilt houses on the palm-fringed islands. Between late-1960s and early-1970s, three big oil companies planned to house their facilities on Pulau Ayer Chawan for Esso, Pulau Merlimau for Singapore Refinery Company and Pulau Pesek for Mobil Oil.
The Government of Singapore then took the opportunity to grow the petrochemical industry as a choice that would significantly produce economic growth. This was proven by the success of starting off the petroleum industries in the 1970s.
By the 1980s, after a decade of rapid industrialisation, industrial land was growing scarce on Singapore mainland. The idea of joining the southern islands off Jurong to form one colossal island to create more industrial land was therefore conceived.
Petrochemical industries
Today, Jurong Island is home to many companies such as LANXESS, Afton Chemical, BASF, BP, Celanese, Evonik, ExxonMobil, DuPont, Mitsui Chemicals, Chevron Oronite, Shell, Singapore Petroleum Company Singapore Refinery Company, Stepan Company, Petrochemical Complex of Singapore, The Polyolefin Company, Chervon Philips, Mitsui Elastomer and Sumitomo Chemical.
Clusters of gigantic cylindrical tanks amid a maze of pipelines now dot the island; investment totalled S$31 billion in 2010.[3] Resident companies produce a vast range of items, from petroleum products to polycarbonate resinsused in CDs, DVDs and LCD TV panels, and super-absorbent polymers that go into diapers and sanitary napkins.
ExxonMobil, which has invested S$4 billion in a refinery and cracker plant, makes industrial and automotive lubricants including a product used in Formula One racing cars. DuPont has invested S$1 billion, and manufactures Zytel nylon resin, a versatile engineering plastic used in automobile components, appliances, wire insulation, sporting gear and home furnishings. Afton Chemical is constructing a new manufacturing facility, expected to become operational in January 2016, to produce petroleum additives for the Asia-Pacific and Middle East markets. [4]
Output for the chemicals cluster—which cover oil and gas, petrochemicals and speciality chemicals—totalled S$66.5 billion in 2005, an increase of 31 per cent from 2004. This accounted for almost 32 per cent of production in Singapore's manufacturing sector. Powered by the cluster, Singapore is currently one of the world's top three oil refining centres despite not having a single drop of crude deposits.
Jurong Island's refineries process 1,300,000 barrels (210,000 m3) of crude oil per day,[citation needed] turning it into petrol, kerosene and jet fuel sold locally and abroad. Cracker plants break down the molecules of other oil-and gas-related substances such as naphtha into additives that give unique characteristics to certain products, from printer inks to plastic mouldings, semiconductors and aircraft materials.
HA! DID I READ CORRECTLY
This accounted for almost 32 per cent of production in Singapore's manufacturing sector. Powered by the cluster, Singapore is currently one of the world's top three oil refining centres despite not having a single drop of crude deposits.
THIS CHEMICAL ISLAND CLUSTER CONTRIBUTE ABOUT ONE THIRD OF SINGAPORE GDP?
AND SINGAPORE REFINERIES PROCESS 1.3 MILLION BARRELS OF DESPITE OF NOT BEING ABLE TO PRODUCE A SINGLE DEOP OF OIL
O WOW!
SO THAT IS HOW SINGAPORE GOT ITS WEALTH
OIL REFINERIES & CHEMICAL INDUSTRIES!!
WAHAHA! THE JACKPOT
TODAY SINGAPORE IS ONE OF THE RICHEST PER CAPITA NATION ON EARTH
ITS CAPITA PER PERSON IS USED 55,000 A YEAR (MALAYSIA ONLY USD10.5OO) A YEAR
SO SINGAPORE IS MAKING ALMOST 5 TIMES MORE THAN MALAYSIA
5) AND SO SEEING A REPEAT IN PENGERANG RAPID THE SINGAPORE GOVT HAS INVESTED 2 FUNDS IN DIALOGE SHARES KAW KAW!
SUCCESS BEGETS SUCCESS
NOW HOW MUCH ARE CHEMICAL LANDS WORTH ON JURONG ISLAND IN SINGAPORE
LET'S SEE
SINGAPORE (Feb 13, 2019 ): Vibrant Group’s 51%-owned subsidiary, LTH Logistics, has entered into a conditional put and call option agreement to sell its logistics and warehousing facility at Jurong Island for $227.5 million to SGRE Banyan Pte. Ltd.
The consideration comes at an 8.3% premium to CBRE’s $210 million valuation of the property as at 15 Oct 2018, and is subject to a $14.25 million upfront land premium payable to JTC.
Located at 121 Banyan Drive, the property comprises two plots of land with a six-storey ramp-up warehouse facility with ancillary offices, as well as two blocks of single storey warehouse and an open yard within Jurong Island.
These are currently being utilised by Vibrant for its logistics business under leasehold interests for a term of 30 years and 29 years and eight months that commenced in Sept 2011 and Dec 2011, respectively.
Further terms of 29 years are to be granted by JTC for both leases each.
In all, the property has a gross floor area (GFA) of 65,764 sq m and a site area of 43,142 sq m.
THE ABOVE IS A SALE AND LEASE BACK TRANSACTION ON JURONG ISLAND ON FEB 13 2019
LAND SIZE IS 43,142 SQ METER. NOT COUNTING THE FACTORY STRUCTURE
AND THE PRICE IS S$227.5 MILLIONS
NOW LET'S CONVERT ALL TO RINGGIT PSF OK\
FIRST TO CONVERT TO PSF 43,142 X 10.764 = 465467 SQ FT
AND CONVERT S227.5 MILLIONS TO RINGGIT JUST X3 = RM 682.5 MILLIONS
AND DIVIDE FURTHER TO GET PER SQ FT
RM1,466 PSF
WOW! THAT'S EXPENSIVE
NOW DIALOGUE IS RECLAIMING FREE LANDS FROM THE SEA WITH THE BLESSING OF JOHOR GOVT
THIS IS VALUE CREATION JUST FOR LAND ONLY
WHAT ABOUT THE MULTIPLIED PROFITS FROM OIL REFINING, CHEMICAL, NAPTA, JET FUEL AND ALL THE BYPRODUCT OF OIL AND ITS CHEMICAL?
NO WONDER GOVT OF SINGAPORE IS INVESTING HEAILY INTO DIALOGUE
WHAT ABOUT YOU?
BEST REGARDS
CALVIN TAN RESEARCH
SINGAPORE
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