Wednesday, October 14, 2009

Keep An Eye On Magna Prima

Developer Ho Hup Construction Company Bhd has appointed former Magna Prima executive director Lim Ching Choy as its group managing director. Lim has also served as Mah Sing Group Bhd's executive director before. The direction for Magna has turned uncertain with the departure of its CEO, Lim Ching Choy. Lim, an ex-banker with experience in turning around Mah Sing previously, was in fact one of the prime catalysts which some thought would turn Magna around and nurture it into a successful major developer in the long run.

f) I am not sure losing Lim is really losing Lim. It could very well be things looking up for Ho Hup and Magna Prima. A couple of months back Ho Hup said it will be launching a RM1.75 billion commercial cum residential development called Jalil City in the area in the next six to nine months. The 60-acre "jewel in the crown" of the 153-acre freehold Bandar Bukit Jalil is planned to be developed in two portions. One facing the Bukit Jalil Highway will have a 9.15-acre hypermarket (to be taken up by Giant, Carrefour or Tesco when Ho Hup decides which is offering the best proposal) and 175 units of four- to eight-storey shop-offices with lifts (priced from RM2.5 million, resulting in a gross development value of RM600 million). On the other portion facing the Bukit Jalil Golf and Country Club, there will be an eclectic blend of a lifestyle piazza with food and beverage outlets and entertainment venues, an office tower, condo hotel and 1,800 serviced apartments.

g) The trouble is Ho Hup is in pretty distressed level. Its paid up is 102m shares and its current market cap is just RM60m. While Magna Prima has 53.5m shares and a market cap of RM112m. Why would Lim leave for a company half the size of Magna Prima? Plus Ho Hup has lost RM46m and lost RM57m in 2007 and 2008 respectively. While Magna Prima made a net profit of RM23m and RM24m in 2007 and 2008 respectively. I am guessing here, but could Magna Prima be a prime beneficiary of Ho Hup's RM1.75bn venture?

I have been looking at Magna for the past few days and the share price has been having some action but too erratic for my and thin for my liking. Sometimes you just have to NOT swing the bat at every pitch ... know what I mean.

NTA/Share (RM) 2.30

Book Value/Share (RM) 2.30

Issued Share Capital (m) 53.5

52-week Share Price Range 3.30 - 1.77

p/s photo: Olivia Ong


棕油网 said...

the most puzzled thing is why magna buy a 15 en-bloc tenanted shop in the open ground, and later proclaim this is for investment purpose and proclaim the adjacent land is use for future development?
regardless of the how fair of the deal , it is not likely to urge a well-estabilished construction company buy a "finished building" from Petaling Garden (company owned by shrewd Robert Kwok)?

for no reason, i would rather to stand aside, but inarguably, a commendable valued stock.

Jobless Girl said...

They have upcoming Melbourne project will this benefit to investor.