Today need to continue to talk deeper about Eden Inc Berhad.
Since we know that Eden only biggest
trophy is about the strategic big piece of land near Kuantan Port, which
is very crucial and good for port storage usage, and also very critical
for ECRL, that is the main point about it all.
Today, I will only talk about the land, the 450 acre of land at Gebeng Industrial Land that Eden is holding on.
As you can see, according to the annual
report, the land is 450.74 acre in size, and carrying a book value of RM
165 million (RM 164.9 million if you want to be exact)
Yes, this is a big plot of land acquire some time ago, and the main question here is - Is the land value at RM 165 million reflecting the market value as of today condition ?
Taking into consideration the place will
get better with port development (Kuantan Port to be more busy + ECRL
development), this place will be in more demand in the future.
So, let us do some research on the public.
So, Malaysia 1st popular real estate website - iProperty.com.my reveal that there is only 1 piece of land for sale at Gebeng
RM 18 million for 10 acre, but this is just the asking price. Of course, owner have the right to ask any price they want.
If based on RM 18 million for 10 acre, then Eden 450 acre will be worth
RM 18 million x 45 = RM 810 million
Wow!!! Very huge amount there compared to
the annual report of RM 165 million. Big difference of RM 654 million.
But again, RM 18 million is the asking price.
Now, we need to go to some transacted price to determine the clearer price that is in demand.
So, we will go to brickz.my to see the transacted price that is recorded in the land office.
According to Brickz.my , the price of the
land is around RM 22 per square feet. This is much reasonable price and
also transacted price that reflect the demand can reach RM 22 per
square feet.
So now we put into calculation at RM 22 psf, what is the 450.74 acre worth.
450.74 acre x 43560 = 19,634,234 sf
19,634,234 sf x RM 22 = RM 432 million (431,953,156.8)
So, it is RM 432 million, which is a very handsome price tag. Approximately 50% down from the asking price in iProperty.com.my
Now, looking back at annual report, the
land is RM 165 million, which based on market value is RM 432 million.
This is a difference of RM 267 million.
If RM 432 million / 392 million share
Eden share price will be worth RM 1.10 if all land sold. If 50% sold also will get RM 0.55, and still got 50% to use.
Now Eden share price only RM 0.17
So if you are looking at the
prize land which can bring Eden to RM 1.10, and current price RM 0.17,
this is a very valuable investment considering the land is
1. Near Kuantan Port
2. Near ECRL
3. ECRL will be buying some land from Eden
So is Eden attractive now? That you will have to do your own homework. Not a buy sell call here.
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