Saturday, June 16, 2007


Kian Joo In Play

They kept it a good secret. Now its all out in the papers. What's the upside?

52 week High-Low: 1.71-0.98

Last Traded: 1.54

NTA: 1.46

ROA: 3.7%

Cash Flow Per Share: 10.7 sen

Share Capital: 442.2m

Par Value: 25 sen

Free Float: 34.4%

Major Shareholders: KJHSB 34.87%, EPF 13.97%

Debt/Equity: 21%

Business model still good. Absorbed newer canning technology (Microflex). Private equity firms very interested. One brother really wants to sell, the other kinda going along with it. May end up with a new buyer who will work alongside with one of the remaining See shareholder. Owns 54% of Box Pak. Stand alone bidder unlikely to bid past RM1.80. Buyers with synergies and existing big user will see very good returns. Cartons business very good in Vietnam, foothold there already.

I expect a bid of at least RM2.05 for a buyer with synergies. Chance to unlock values in Vietnam and also via Box Pak. As this will not be a G.O. exercise for new buyer, share price may not reach actual transacted price. Trade within the range of RM1.60-RM2.00.

4 comments:

Pricechart said...

http://pricechart.blogspot.com/2007/06/kian-joo-monthly.html

SAMMY MU said...

Dali,

You might like to keep an eye on Ranhill Bhd - 2nd limit up if news about Coy striking oil in Citarum Block is proven right. Will know by 3 pm.

kam said...

0500C1 PETROCH-C1 ALSO CAN LOOK INTO.

MOTHER SHR IN HK NOW ABOUT HK$11.14

Pricechart said...

sammy mu,

You might want keep an eye on Megan - one limit up if news about Coy striking deal with pirates manufacturers of VCD & DVD in South East Asia is proven right.

Will know by 12.01am.

:) tongue in cheek....