MRCB Versus DRB (Part 2)

MRCB Versus DRB (Part 2) By Calvin Tan Research

Author: calvintaneng   |   Publish date: Wed, 26 Oct 2016, 11:01 PM


Hi Guys,

 

Today MRCB up one sen to Rm1.40 while DRBHICOM is down 2 sen to Rm1.40. Now both stocks are on equal footing at Rm1.40

So let the race begin:

Why is Calvin Tan Attracted to MRCB?

Answer:

Of all lands and assets the MAIN CRITERIA FOR VALUE CREATION IS MAXIMUM USAGE!!

These are the levels of Value Real Estate or Land Can Generate.

1) Lands in desert, highly  inaccessible area, mountain, snowcovered tundra or nuclear polluted lands are of little or no value. These don’t serve mankind. So few people want them

2) FARM LANDS. AGRICULTURAL  PURPOSES

These have value. You can plant crops and sell them for a profit.

3) FARM LANDS. ANIMAL HUSBANDRY OR REARING FISH OR FOWLS

These command better value. Livestock needs road and accessibility for delivery

4) RESIDENTIAL LANDS

These are converted from Agricultural lands for human habitation. Bangsar, Bandar Utama & Puchong were once rubber estates. Now teeming with expensive houses & buildings.

5) INDUSTRIAL LANDS

Usually located near human habitations are workers are needed. So prices of these lands have appreciated in value. Examples are Section 17 in PJ where F&N Factories are located. Ample workers nearby. However, if population increases with affluency these factory lands will be too valuable. Soon they will be converted high rise high end condos and commercial malls. Examples are the factories along Bkt Timah in Singapore converted to highend condos. Also in Chan Sow Lin. F& N factories converted to Commercial shophouses.

5) COMMERCIAL SHOPS & MALLS

These are lands located near hupe popular areas with HIGH CATCHMENT DENSE HUMAN POPULATION. MIDVALLEY MEGAMALL, ONE UTAMA, IKEA DAMANSARA, IKEA CHERAS, KL. VIVO CITY IN SINGAPORE.

 

6) TRANSPORT ORIENTED DEVELOPMENT (TOD)

THIS IS THE HIGHEST VALUE CREATION OF ALL! A TRANSIT ORIENTED DEVELOPMENT SERVES THE MAXIMUM NUMBER OF PEOPLE GOING OR PASSING THROUGH IT. THE MORE PEOPLE PASSES THEOUGH IT THE BETTER ITS VALUE!

IN HK SOME OF THE HIGHEST LAND VALUE ARE THOSE NEAR THE BORDER TO SHENZHEN. PRICES PER SQ FT ARE SOME OF THE VERY HIGHEST ON PLANET EARTH DUE TO THE SHEER VOLUME OF PEOPLE FROM CHINA PASSING INTO HONG KONG IN ITS HEYDAY

IN JOHOR ISKANDAR MOST 7 ELEVEN STORES ARE TENANTED AT RM3,000 PER MONTH. LIKE THOSE IN TMN PERLING OR TAMAN MOLEK.

HOWEVER, IN PLACES NEAR THE ZON (BERJAYA WATER FRONT CITY), JOHOR WHERE DAY TOURISTS & NIGHT LIFE CROWDS ARE THERE A TYPICAL 7 ELEVEN STORE IS RENTED FOR RM20,000 A MONTH.

BUT THE HIGHEST PRICE PAID BY 7 ELEVEN FOR A SMALL SHOP IS LOCATED AT CIQ KASTAM SHOPPING COMPLEX.

HERE, TENS OF THOUSANDS OF PEOPLE ARRIVE BY BUS AND TRAIN DAILY – THE RENTAL HERE IS A WHOPPINGRM50,000 A MONTH!

HOW COULD THIS 7 ELEVEN SURVIVE WITH SUCH HIGH RENTAL?

THE ANSWER IS THIS. ON ANY GIVEN DAY ALMOST HALF (50% OR MORE)  THE GOODS OR INVENTORY OF THIS STORE IS SOLD OUT!

IN SINGAPORE, ONE GOOD EXAMPLE OF A TRANSIT ORIENTATED DEVELOPMENT IS THE EVER POPULAR JURONG POINT (CALVIN’S FAVOURITE). JURONG POINT IS NOW GOING FOR SALE AT A WHOPPING S$2 BILLIONS OR RM6 BILLIONS

See

Jurong Point put on market with over S$2b price tag

The price expected by Guthrie and Lee Kim Tah for their 658,000 sq ft commercial net lettable area reflects more than S$3,000 psf and a sub-4 per cent net yield. Jurong Point is next to Boon Lay MRT Station.

BT_20161026_KRPOINT_2565524.jpg

Singapore

SINGAPORE’S biggest suburban shopping centre, Jurong Point, has been put up for sale with a price tag exceeding S$2 billion.

This works out to more than S$3,000 per square foot based on the commercial net lettable area of about 658,000 sq ft that is being offered for sale by an equal joint venture between Guthrie GTS and Lee Kim Tah Holdings, both of which have been delisted.

At over S$2 billion, the price tag translates to a sub-4 per cent net yield, Michael Leong, director of sole marketing agent Array Realty, told The Business Times.

Array in turn is working exclusively with JLL to conduct an expressions of interest exercise that will close on Nov 18.

Guthrie and Lee Kim Tah are divesting a total net lettable area of 702,000 sq ft – including 44,000 sq ft of space under the government’s Community/Sports Facilities Scheme (CSFS) which is currently being used by occupiers such as NTUC First Campus Co-operative’s My First Skool and voluntary welfare organisations.

There is a further space of about 59,000 sq ft under three strata retail units divested by Lee Kim Tah and Guthrie about two decades ago to Golden Village, NTUC FairPrice and POSB – taking the total net lettable area in Jurong Point to 761,000 sq ft.

Guthrie and Lee Kim Tah are offering their 702,000 sq ft in the mall through the sale of shares in companies that own this space. “The two partners have owned the property for many years and want to look at pursuing new interests and opportunities,” said Mr Leong. Lee Kim Tah was delisted in early 2015 and Guthrie in November 2013.

Most stockmarket analysts would think that a net yield of 3-plus per cent based on Guthrie and Lee Kim Tah’s asking price is too low to make for a yield-accretive acquisition by Singapore mall Reits (real estate investment trusts).

However, JLL regional director of Singapore capital markets Anthony Barr expects Jurong Point to appeal to a broad range of other institutional investors including sovereign wealth funds, pension funds and insurance groups.

“Rarely do stabilised assets of this scale become available. There have been no comparable sales of a suburban retail property of this size on the open market for more than a decade in Singapore’s tightly held retail sector; other large sales have been either related party transactions involving listed Reits or sales of partial interests.”

A high-performing mall, Jurong Point is regarded as “fortress retail”, he added. “This, combined with the dynamic growth planned for the Jurong district, will ensure a broad range of interest at the indicated pricing.”

Jurong Point is seamlessly linked to the Boon Lay MRT Station and Bus Interchange. It currently draws an average monthly visitorship of six million and has a catchment of 150,000 households within a five-km radius, with potential for growth as the new town planned in Tengah is progressively developed.

Major tenants for the space at Jurong Point owned by Guthrie and Lee Kim Tah include FairPrice Xtra, Courts, Harvey Norman, Uniqlo and Kiddy Palace in addition to three foodcourts. Joining their ranks soon will be BHG, which will open a nearly 50,000 sq ft department store on three levels in December; part of this space was previously occupied by John Little.

The mall is nearly fully let.

Jurong Point stands on two sites; one has a balance lease term of about 76 years and the other, 89 years. Their combined land area is 557,288 sq ft.

The original Jurong Point was completed in 1995 and spans four levels of retail space (Basement 1 to Level three). The CSFS space is on Levels 4, 5 and 6.

The extension, which was completed in 2008, has three retail floors – Basement 1 and Levels 1 and 3.

About 1,000 carpark lots in Jurong Point are available for use by shoppers.

The mall’s total gross floor area (GFA) is 1.07 million sq ft; there is no unutilised GFA.

 

IN THE 2017 BUDGET SPEECH BY PM NAJIB THERE IS A PROPOSED EASTERN COASTAL HGHWAY FROM KL ALL THE WAY TO TUMPAT IN KELANTAN FOR A RM55 BILLION PROJECT

WHAT WAS ITS PURPOSE?

THE ANSWER IS TO CONNECT IT TO THE MOTHER OF ALL TOD (TRANSIT ORIENTED DEVELOPMENT) CALLED BANDAR MALAYSIA

IT WILL BE A MAMMOTH RM160 BILLION VENTURE & MRCB WILL GET THE LION SHARES

See

MRCB aims big at Bandar M’sia transport terminal

MRCB executive director Mohd Imran Mohd Salim, who spoke to StarBiz following the signing of three agreements related to the multi-billion-ringgit Bandar Malaysia project, said the company was planning to negotiate with the master developer for 60 acres – “hopefully more” – for the development of various commercial development other than just the transport terminal.

MRCB executive director Mohd Imran Mohd Salim, who spoke to StarBiz following the signing of three agreements related to the multi-billion-ringgit Bandar Malaysia project, said the company was planning to negotiate with the master developer for 60 acres – “hopefully more” – for the development of various commercial development other than just the transport terminal.

KUALA LUMPUR: Construction and property firm Malaysian Resources Corp Bhd (MRCB), which has entered into a non-binding memorandum of understanding (MoU) with Wondrous Vista Development Sdn Bhd and IWH CREC Sdn Bhd to collaborate on developing an integrated transportation terminal at Bandar Malaysia, intends to do better than the flagship KL Sentral project in its future projects.

MRCB executive director Mohd Imran Mohd Salim, who spoke to StarBiz following the signing of three agreements related to the multi-billion-ringgit Bandar Malaysia project, said the company was planning to negotiate with the master developer for 60 acres – “hopefully more” – for the development of various commercial development other than just the transport terminal.

IWH CREC – a joint venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (CREC) – owns a 60% stake in Bandar Malaysia Sdn Bhd, the master developer and owner of Bandar Malaysia, with the Finance Ministry owning the remainder stake.

MRCB, in a filing with Bursa Malaysia, said the company intended to form a strategic alliance with Wondrous Vista and IWH CREC for the purpose of acquiring, constructing, developing and operating the transportation hub.

“It could be for commercial retail, food and beverage, and hotels. What is important to remember is that MRCB is a transportation developer. We did PJ Sentral and KL Sentral,” Imran said.

He added that the Bandar Malaysia transport terminal could easily make up 35 to 40 acres in size compared to the 10-acre KL Sentral Station. Imran said the company had the capacity and willingness to take on more projects because KL Sentral only has about five acres left to be developed.

“The transport terminal at Bandar Malaysia is a very high-profile one. But we need to iron out issues like acreage, the integrated nature of the development and the density and other factors,” he said, adding that there would be more clarity on the project soon.

“We will come to a decision in six months,” Imran said. The MoU will remain valid for a period of six months or may be terminated at any time by mutual consent.

It was previously reported that 1Malaysia Development Bhd’s sale of the 60% stake in Bandar Malaysia to the IWH-CREC consortium for RM7.41bil would be completed this month.

The 486-acre Bandar Malaysia, located on the former Sungai Besi air force base, will house the Kuala Lumpur-Singapore high-speed rail terminus and become a central transport hub with connections to the mass rapid transit lines, KTM Komuter, Express Rail Link and 12 other highways.

Bandar Malaysia, vide its wholly owned subsidiary, would be the registered owner of 486 acres at Bandar Malaysia, of which 55 to 60 acres have been earmarked for the integrated transportation terminal.

 

CORPORATE MOVEMENT BY PM NAJIB- THE MINISTER OF FINANCE

AND JUST AFTER THE BUDGET SPEECH PM NAJIB IS LEAVING FOR CHINA TO GET NEEDED FUNDS FOR BANDAR MALAYSIA. WHY SO CRUCIAL? TO GET BACK THE MONIES LOST THROUGH 1MDB. BY THE PROFITS GENERATED FROM BANDAR MALAYSIA PM NAJIB CAN ONCE AGAIN REDEEM HIMSELF AND LIFT HIS HEAD HIGH.

Foreseeing the good prospect of MRCB EPF on August 2016 Bought 17 million MRCB Shares!

EPF already bought 20 million MRCB shares in April 2016!!

And the Surprising Development of all is the Substantial Position Taken by

BANK KERJASAMA RAKYAAT MALAYSIA. IT BOUGHT 172 MILLION (More than 8%) through private placement.

A check with BANK RAKYAAT shows that it was a merger of 11 Banks once came under the supervision of the Ministry of Finance & later changed to Central Bank of Malaysia. So it is a move by Pm Najib?

 

All these salient factors Point to a Very Exciting Time Ahead for MRCB.

 

MRCB is now unlocking its assets to play a very important role in the HUGE TRANSIT ORIENTED DEVELOPMENT CALLED BANDAR MALAYSIA WHICH IS ALSO THE CROWNING JEWEL OF THE PROPOSED CHINA SILK ROAD!

Bank Rakyat (Bank Kerjasama Rakyat Malaysia Berhad) is an Islamiccooperative bank which was established on 28 September 1954 under the Cooperative Ordinance of 1948 (Cooperative Societies Act 1993), following the growth of the cooperative movement in Peninsular Malaysia. The bank is an entity under the control of the Ministry of Domestic Trade, Cooperatives and Consumerism since 2004; in 1989 it was controlled by the Ministry of Land and Co-operative Development and the Ministry of Finance and in 2002 changed control to the Central Bank of Malaysia under the Development of Financial Institution Act.

Bank Rakyat is governed by its by laws and Bank Kerjasama Rakyat (M) Berhad Act 1978, which allows Bank Rakyat to provide financing to non-members.

The bank was founded as a result of a merger with 11 union banks. The bank’s first name was Bank Agong (Apex Bank) with the full name Bank Agong Kampong Bekerjasama-sama Persekutuan Tanah Melayu Dengan Tanggongan Berhad and registered under the Cooperative Ordinance 1948. It was first based in Bukit MertajamPenang before being moved to Kuala Lumpur in 1964. After being renamed Bank Kerjasama Malaysia Berhad (Bank Kerjasama) in 1967, the bank extend its membership to individuals as well.

And MRCB Has Aready Secured Many TRANSIT DEVELOPMENTS IN PJ, KWASA LAND SG BULOH, PENANG SENTRAL, KL SENTRAL & CYBERJAYA SENTRAL

 

See

 

 

 

 

 

 

 

DRB Versus MRCB – 2 Top Beneficiaries of 2017 BUDGET (2 RESERVOIRS OF WEALTH)

Dear Fellow Investors,

When Pm Najib gave the Budget Speech on Saturday I was in Singapore. Today, I managed to secure a printed copy of the BUDGET SPEECH 2017. And I discovered these 2 Stocks to be the Top 2 Beneficiaries.

 

Presenting DRB Versus MRCB – The 2 Contesting Reservoirs of Wealth. Which will come out First?

 

DRB Closing Price as at 25th October 2016 – Rm1.42

MRCB Closing Price as at 25th October 2016 – Rm1.39

So DRB is Rm1.42 Versus MRCB at Rm1.39!

Now These Are The Salient Factors for DRB Hicom as Found in the Budget Speech 2017

1) PROTON IRIZ AS UBER CAR OF CHOICE  (PM NAJIB ONE STONE HIT 5 BIRDS)

They say, “One stone hit 2 birds at the same time”. Pm Najib did better by hitting 5 birds at one go!

i) With Rm5,000 Discount for Uber Drivers PROTON IRIZ By DRB will sell like hot cakes. This will bring in lots of money for DRB

ii) With One Fell Swoop Dr. M & his cronies’ fleet of taxis will be rendered redundant.

iii) This kind act will win precious votes as 14th GE is coming soon.

iv) And with New Cars mean More Inspection at Puspakom. In Malaysia today, every buyer or seller of a new or 2nd hand car needs to send it to Puspakom for inspection. Just like all foreign workers need to pass through MyEG processing. So much more monies following into DRB coffers.

v) And when you pay Roadtax & Insurance? POS Office of Course! Ha! POS is now DRB’s subsidiary company as ownership has crossed 50%

2) LOTS OF MENTION ABOUT MOTORBIKES

DRB own Modenas & also manufacture engines for other brands!

I quote from the Speech  verbatim:

The Government has also decided to  increase the motorcycle loan limit from Rm5,000 to Rm10,000

Good for Modenas! By DRB!

 

 

This is Modenas Dynamik going for Rm6,600. Go and get one now! Loan limit raised from Rm5,000 to Rm10,000. WOW! Sure Can Buy Lah!

 

More mention about Motorcycles:

Expanding Mobilepreneur Programme with allocation of Rm30 million, targeting 3,000 participants using motorcycles.

 

3. BROADBAND EMPHASIS! E-Commerce! DRB owned POS going Big Time into E Commerce!

Through MDEC, a sum of Rm162 million is allocated to implement programmes such as e-commerce ecosystem and Digital Maker Movement.

Effective January 2017, fixed line broadband service providers will offer services at higher speed for the same price. Provide Rm1 billion to ensure the coverage and quality of broadband nationwaide reaches up to 20 megabytes per second.

Faster Broadband means faster purchase made through the internet – great for POS Malaysia & Ultimately DRB!

I bought lots and lots of stuff through Lazada & 11th Street. Goods were delivered by

a) GD Express (They come in small vans)

b) Lazada own fleet of small lorries or contract lorry deliveries.

c) POS OFFICE! Yes! I went to Majidee Post Office & collected parcel after parcel of goodies!

Listen further to Pm Najib’s words, “..additional online and digital services to facilitate international e-commerce and invigorate internet-based innovation”. Read these words again, “TO FACILITATE INTERNATIONAL E-COMMERCE”.

Yes, DRB, through POS is expanding to Alibaba of China, then Amazon of USA? Wow! It’s a Big Market Out There for DRBHICOM

Note: I bought MIDEA Aircond (1 hp) & MIDEA WATER HEATER (MIDEA BRAND FROM CHINA IS BEING DISTRIBUTED THROUGH DRBHICOM. They are both cheap and good. Also nicely designed. Value for money.

 

4) DRB Also Has A Fleet of Commercial Vehicles for Logistics & Warehouses.

Listen! Traditonal business through Departmental Store is doomed! Parkson will be one of them. Better sell Parkson and switch to DRB now. With the advent of the motor car – traditional horse drawn carriages are obsolete. So don’t fight the trend! Flow with the trend and you shall live.

 

5) AND TOURISM!

Government will extend eVisa to countries in the Balkans and South Asia Regions. To achieve the target of 32 million of tourist arrivals next year. And DRB provides Full Airport Services!

 

6) ISLAMIC FINANCE THROUGH BANK MAUMALAT By DRB!

PM Najib says, “In maintaining Malaysia as an international Islamic financial centre, I am pleased to announce that the period of income tax exemption to entities carrying out Islamic banking and Takaful business through the International Currency Unit..”

So many things are positive for DRB in the Budget Speech.

 

7) Ecotourism & Improving Tourism Facilities (DRB Has Alam Flora)

Tourism sector contributes significantly in generating country’s income. Therefore, First: A sum of Rm400 million will be allocated, among others for clean air and ecotourism initiatives.

 

8) Ambulances & 8×8 Armoured Vehicles for Sabah Against Kidnappers & Intruders!

Also, the Government will place AV8 GEMPIT 8×8 and 4×4 armoured vehicles in Lahad Datu as well as deploy Hawk fighter jet and Eurocopter EC-725 helicopters squadron at the Labuan Air Base Total: Rm15.1 billion

 

See

 

AV8 Multi-Role wheeled armoured vehicle

AV8 is an 8×8 multi-role, wheeled armoured vehicle indigenously designed and manufactured by DRB-Hicom Defence Technologies (DefTech), for the Malaysian Army. The AV8 is based on the FNSS-built PARS 8×8 multi-purpose wheeled armoured combat vehicle.

The AV8 is intended to replace the Malaysian Army’s ageing fleet of SIBMAS 6×6 and Condor 4×4 wheeled armoured fighting vehicles.

The first scale model of the AV8 was demonstrated to the Malaysian Armed Forces at the 13th Defence Services Asia (DSA) international defence exhibition in April 2012.

Orders and deliveries of AV8 armoured vehicles

In February 2011, DefTech received a contract from the Malaysian government to design, develop and manufacture a total of 257 armoured fighting vehicles in 12 configurations for the Malaysian Armed Forces through 2018. DefTech will also provide integrated logistics support for the AV8 programme.

Turkish defence firm FNSS Savunma Sistemleri signed a $559m letter of acceptance for the development of the AV8 vehicles in June 2011. FNSS will offer technology transfer and technical assistance for the Malaysian AV8 vehicles.

The 257 AV8 vehicles include 46 units in IFV25 infantry fighting vehicle configuration, 68 in AFV30 version, and 54 in anti-tank configuration. The first 12 IFV25 vehicles were delivered in December 2014, while the remaining 34 are scheduled for delivery in 2015.

9) DRB Also Owened The RESORT HOTEL IN KENYIR DAM Among Others

It is said that Kenyir Dam is the Largest Freshwater Lake in Malaysia. It takes 5 hour by ferry boat ride from one end of Kenyir Dam to another. Scores of River Flow into Kenyir Dam to Make it A Gigantic Lake

 

So with So Many Companies WITH MULTIPLE STREAMS OF INCOME

This DRB is Really A ONE HUGE RESERVOIR OF WEALTH

DRB = De RESERVOIR BHD!

 

Calvin Has A Target Price of Rm2.80 for DRBHICOM In One Year’s Time. This is based on One Third The Share Price of POS Malaysia. So From Rm1.42 Calvin Expects DRB To Double in Price!

 

Warmest Regards,

CHEERS

Calvin Tan Research

 

Note: Will Post on MRCB Later.

MRCB = Money  RESERVOIR Converging Bhd.

This MRCB has a RESEVOIR THAT IS REALLY MIND BLOWING!

So please stay tuned

“THE FLOW OF INFORMATION PRECEDES THE FLOW OF WEALTH”

BE THE FIRST TO KNOW!