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Slate for its debut trading tomorrow (10th July 2013), can AirAsia X follows the footsteps of its sister company AirAsia? What would happen tomorrow pretty much depends on the fair value given by various research houses. AirAsia X is a leading long haul low cost carrier since operating on Nov 2007, primarily in the Asia Pacific region. Currently, it serves 14 destinations acorss Asia, Australia and the Middle East, with 11 A330-300 planes. Investment analysis: Benefits from synergies as part of AirAsia group Strong brand name Operate in the fast growing aviation market in the world Lowest unit cost base in the region Strong ancillary income at RM141/pax and expected to grow further How about the risks? High jet fuel price World crisis i.e. war, terrorism, epidemic outbreak Slowdown in world economy Emergence of other long-haul LCCs Delaying of KLIA2 which may hamper its growth prospects Strengthening of USD against MYR, because 79% of its debt is denominated in USD So, what's the ...

Every wonder why we didn't cover the IPO for Tune Ins ? Other than CNY mood, it's because of the unexciting part of this new stock. Why? Please read on... Tune Ins Holdings Sdn Bhd (TIH) operates 2 core businesses. First, it provides online insurance where insurance products are sold as part of the customer’s online booking process with their partners namely AirAsia, Tune Hotels and AirAsia Expedia. TIH also operates a general insurance business, through 83.26% owned subsidiary - TIMB. Why invest in Tune Insurance Holdings? Wide and cost effective distribution channels Provide ease in buying coverage Exclusive partnership with AirAsia Ability to ride on AirAsia’s robust growth Additional revenue and cost synergies from TIMB Robust industry prospects However, some of the above investing reasons had also became the disadvantages of TIH. It's reliant on AirAsia business is too important. TIH's success is very much depends on the success of AirAsia businesses, and because...

The Return of a Pay TV Giant!!! Astro Malaysia Holdings (AMH) is poised to list on Bursa's Main Market on 19th Oct with a market cap of RM15.6bil . The largest pay-TV operator in Malaysia has a de factor monopoly, commanding a 99% market share. Are you excited, again? Background AMH is the leading media entertainment group in Malaysia with 3,100,000 customers and one of the largest in South East Asia. It is primarily engaged in the creation, aggregation and distribution of content over multiple delivery platforms including TV, radio, publications and digital media within Malaysia. What's the different from the then delisted entity? Recall that Astro All Asia Networks (AAAN) was the one taken private in 2010 by its single largest shareholder Astro Holdisngs SB. Meanwhile, AMH is effectively the domestic media business arm of previously-listed AAAN. How good was Astro Malaysia Holdings? A monopoly in the pay TV segment with 99% market share A capital intensive industry, creates ...

IGB REIT comprises of Mid Valley Megamall (retail; 1.72m sf NLA) and the Gardens Mall (retail; 0.82sf NLA) with a total appraised value of RM4.6b . Currently, Mid Valley Megamall is 99.8% occupied and the Gardens Mall is 99.7% occupied. Based on the IPO  price of RM1.25, IGB REIT’s market capitalization would be RM4.3bn, making  it the largest pure retail M-REIT .  Following closely behind IGB REIT in terms of market capitalization size is Pavilion REIT (RM4.08b), Sunway  REIT (RM4.02b) and CMMT (RM3.02b). What are the key selling points for IGB REIT? Prime asset with strategic location, huge catchment area and well connected  transportation networks. Diverse based of tenants to sustain rental income. Low gearing provides ample room for acquisition growth.   Based on IGB REIT’s Pro Forma Statement of Financial position, IGB REIT’s  gearing ratio upon listing will be approximately 25.8% , which is below the  average o...

Gas Malaysia Berhad (GMB) was established to sell, market and distribute natural gas and Liquefied Petroleum Gas (LPG). GMB is also responsible for the construction and operation of the Natural Gas Distribution System (NGDS), which is a system comprising 1,800km of gas pipelines and stations within Peninsular Malaysia owned by GMB. NGDS is connected to the Peninsular Gas Utilisation (PGU), which is the gas transmission pipeline across Peninsular Malaysia owned and operated by PGB. GMB’s core business to sell, market and distribute natural gas to industrial, commercial and residential customers in Peninsular Malaysia via NGDS. In other words, GMB purchases natural gas from PGB and sells to GMB’s own customers at a profit margin. There are currently two players in Peninsular Malaysia’s natural gas distribution industry, comprising GMB and PGB. However, both serve different sets of customers, whereby GMB’s customer base consists of us...

Sentoria Group Berhad (Sentoria) is principally involved in two complementary core business divisions, namely property development and leisure and hospitality . Its property development business division specializes in township developments and resort city developments, while the leisure and hospitality business division owns / leases, manages and operates the hotels / resorts and theme park facilities and attractions. Its  Bukit Gambang  Resort City  (BGRC) leisure and hospitality facility in Kuantan is the largest integrated resort city in Malaysia that resides on a 547-acre land area and features multiple attractions in a single location. The Listing Exercise Future Income Generating Plan... Looking ahead, Sentoria plans to enhance its recurring income stream from BGRC, by adding new attractions such as Safari Park, Aquarium Park, Adventure Land, and expand the MICE division by constructing a grand ballroom with 3,050 pax capac...

Are you bored of the current small market capitalization of REITs in Malaysia? I think Sunway REIT (the largest REIT right now) is by far sitting there very lonely without anyone closer to it. Come 7th December 2011 , we will witnessed a new contender - Pavilion REIT , to challenge the title. Although it may started-off in 2nd place, the new REIT may grows to clinch the first place from SunREIT. Below is some info taken from RHB Research report on the IPO; Pavilion REIT (PavREIT) has an asset size of RM3.5bn , just after the largest MREIT - Sunway REIT’s RM4.5bn. PavREIT has two assets – Pavilion KL Mall which is worth RM3.4bn and Pavilion Tower (office) RM128m. The Prime Asset Pavilion Mall is one of the only four premium retail malls in KL. It is designed to complement the malls along Jalan Bukit Bintang, developing the street to a key shopping destination in the region. Located at the “Golden Triangle”, which is the business, shopping, entertainment and...

Bumi Armada Bhd (BAB) is seeking a listing on 21st July 2011 with an enlarged share capital of 2.93bn shares of RM0.20 each on the Main Market of Bursa Malaysia. Based on the retail IPO price of RM3.03 per share, BAB will have a market capitalization of RM8.87bn . It expects to raise gross proceeds of about RM1.95bn from the flotation. Some 38% of the proceeds will be used to pare down bank borrowings while 29% and 28% will be used for capital expenditure and working capital respectively. The balance 5% will be used to pay listing expenses. Company Profile Bumi Armada Berhad is the largest owner and operator of offshore support vessels in Malaysia and is an established and trusted service partner in the oil and gas industry. It had established a strong position in FPSO systems, a growing Transport & Installation business and competency in management of large projects. With head office in Kuala Lumpur, Malaysia and shore-bases in several countries around the globe, BAB curre...

OldTown Bhd is a home-grown proprietor involved in the white coffee business that also operates with an extensive chain of cafes in Malaysia. The group has a total of 182 café outlets in Malaysia, Singapore and Indonesia. It also distributes its coffee and other beverage products particularly in Malaysia, Singapore and Hong Kong although its products are also marketed worldwide. Inspired to provide quality white coffee to Malaysians, the group's founders Go Ching Mun and Tan Say Yap created their own instant white coffee formula in 1999. The duo established their manufacturing operations in the same year under the "OLDTOWN" brand name and in 2005, expanded vertically into the food services segment under the " OLD TOWN WHITE COFFEE " brand name until today. How far can the coffee's aroma go? OldTown plans to open 27 more outlets in FY11, which will bring the total number of outlets to 209 . The group also plans to relocate its food processing operations an...

New Bursa Malaysia comer, MSM is the leading sugar producer in Malaysia, with a total market share of 57% in 2010 (based on production volume). It is one of two sugar refiners in the country, the other being Tradewinds (M) Bhd. Following its listing, MSM will be the only directly listed sugar refiner in Malaysia. It has two sugar refineries in Prai, Penang and Chuping, Perlis with production capacity of 1.11m tonnes per year, as well as the only sugar cane plantation and mill in Malaysia. MSM’s sugar cane plantation is 4,454 ha in size, while its sugar mill has a capacity of 5,500 tonnes/day. No wonder MSM had gained 26% on its debut, albeit profit taking the following day. Yet, many investors are pouring their interest in this counter maybe for the following reasons : A potential beneficiary of a free market for sugar soon – in view of the Government’s moves to reduce subsidies for sugar over the last year and a half; Beneficiary of the Government’s long-term contract for raw suga...

En-route to Main Board of Bursa Malaysia on 1st July 2011 , Eversendai Corp is a structural steel specialist with operations predominantly in the Middle East, Malaysia and India. Currently, the company is bidding for RM1.5 billion worth of infrastructure, high-rise building and power plant projects in Southeast Asia, India and Middle East after being invited by public and private sectors. Its outstanding construction order book stood at RM1.4 billion as at 16th May 2011, while owning 4 fabrication plants in Malaysia and Middle East with a combined annual capacity of 119,000 tonnes. What is so attractive about Eversendai? According to RHB Research, Eversendai's key appeal to investors lies in: It being a rare "outside-looking-in" home-grown construction company that has excelled in the international market, particularly, the Middle East, based on its own strength, practically almost indifferent to the local construction cycle; The recognition by key international contrac...

Being one of the most established developer in Klang Valley, UOAD is going to be a darling property stocks for investors once listed. The strong "UOA" brand name as a developer of high end residential and commercial properties, makes it stands out from its competitors. What's so interesting about UOAD? Based on the IPO price of RM2.90 per share, the company is listing with a market capitalization of RM3.5bn, which eventually will place UOAD to be the 4th largest property company in Bursa Malaysia . The top 3 are UEMLand, SP Setia and IJMLand. Don't forget about UOA REIT, which is the real estate investment trust of UOA Group in Malaysia. In other words, whatever properties that was construct by UOAD may inject into REIT one day. With UOAD being granted a "Right of First Refusal" to inject its completed commercial buildings into UOA REIT, it definitely provides UOAD the opportunity to redeploy its capital where the proceeds from asset injections will be re-u...

Listing tomorrow (March 8), Berjaya Food (BFood), through its subsidiary Berjaya Roasters, is principally involved in the development and operation of the Kenny Rogers Roasters (KRR) chain of restaurants in Malaysia. All started when Berjaya Group acquired KRR in 1993, and being the exclusive franchisee in Malaysia, operating 52 outlets nationwide. Kenny Rogers Roasters What's in BFood mind? Open 8-10 outlets per annum Emphasizes healthy food targeting increasingly heath conscious consumers What Analysts say? The IPO price was set at RM0.51 , and Berjaya Group will still be the largest shareholders after IPO with 70.91% shareholdings. OSK Research value BFood with a RM0.57 target price , based on 7.5x PE, which represents a 30% discount to its closest peer in Malaysia, QSR Brands due to its smaller revenue and earnings base. BFood intends to distribute up to 50% dividend payout. Past and projected revenue. Source: OSK, Prospectus More "food" for BFood?  Berjaya Group...