Duty Free Int'l - 52-wk low & Heinemann partnership

07 Nov 2017 21:27 #24133 by divads
divads replied the topic: Duty Free International - 52 weeks low and Heinemann partnership

hazard_koh wrote: Duty free international share price has been intentionally pressed down by BBs from my observation , assuming to accumulate at low price.
Time to load up the share and wait for fruits to bear.

1) www.thesundaily.my/news/1819970

"The sale and purchase agreement signed in March 17 2016 includes the disposal of a 10% equity interest plus one share - comprising an aggregate 20.99 million shares - in DFZ to Heinemann Asia Pacific for a consideration of RM90.22 million"

Heinemann bought the shares of duty free international at around $1 Euro per share translating to around $1.40 per share vs trading price of 27 cents currently.

3) www.frontiermagazine.co.uk/news/airport/...ong-2016-12-04-2017/

Heinemann is a strong partner that will benefit duty free international greatly. The fact they are willing to pay $1.40 per share for duty free international is testimonial to it.

4) www.pressreader.com/malaysia/the-star-ma...1022/281590945099469

Duty free international has a few parcels of land that has appreciated over its book value and should they decide to dispose may result in extraordinary gain.

and last but not least

5) Duty free is trading at 52 weeks low assumingly with share price been pushed down for the BBs to accumulate. So risk is lower since share price is at 52 weeks low and 2) www.publicnow.com/view/49FBBBD1048B3F24A...:01:30+01:00-xxx6611

The Bonus Warrants are exercisable during the period commencing on and including the date six (6) months from the date of listing of the Bonus Warrants on the SGX-ST and expiring at 5.00 p.m. on the date immediately preceding the fifth (5th) anniversary of the date of issue of the Bonus Warrants"

Conversion of warrants to mother share only starts on 15 Nov (6 mths after listing of warrants), so expect BBs to push the price of mother shares up for warrants to be multi-bagger.

once the BBs finished accumulating, should see share price rocket.

Today Duty free warrant top volume for warrants. Next week conversion starts.. watch out for action soon..

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17 Nov 2017 22:23 #24158 by divads
divads replied the topic: Duty Free International - 52 weeks low and Heinemann partnership

Ringgit rising.. This will benefit Duty Free international as it's revenue is in Ringgit.

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07 Dec 2017 23:41 #24167 by divads
divads replied the topic: Duty Free International - 52 weeks low and Heinemann partnership

Maintain BUY
Management remains confident that the recent case involving bills of demand from the Royal Malaysian Customs of Perak is in their favour. We maintain our earnings forecasts and MYR6.00 SOP-TP as we are not imputing any material impact from the case.
A high payment demand
DFI’s (DFI SP, Not Rated) 100%-subsidiary Seruntun Maju Sdn Bhd (SMSB) has received bills of demand on 21 Nov 2017 from the Royal Malaysian Customs of Perak, demanding payments of customs duties, excise duties sales tax, and Goods & Services Tax (GST) totalling MYR41.6m between the periods of 15 Nov 2014 to 30 Sep 2016. The allegation was based on non-compliant of certain conditions at SMSB’s Pengkalan Hulu duty free outlet - namely not documenting shoppers’ purchases and travel documents upon purchase of duty free goods. Hence, Customs deemed these purchased goods as illegally removed from the duty free outlet.

But to be challenged
Management believes that there is no legal nor factual basis for the bills of demand, as (i) the duty free outlet is located outside of the principle customs area [in a buffer zone - between Malaysia and Thailand’s Customs, Immigration and Quarantine (CIQ) centres] which is not bound to the usual Customs regulations, and (ii) documentation of shoppers’ purchases are not required nor stipulated within its duty free license. Following the receipt of the bills of demand, SMSB has applied and was granted by the High Court for a stay of execution. Hence, SMSB would not be required to make any payments to the Customs Department until the conclusion of the case.
No impact for now
We have not imputed any material impact to Atlan nor DFI at the moment. As the worst case scenario, the payment could reverse DFI’s entire 1HFY2/18 free cashflow of MYR36m. The Customs’ demand of MYR41.6m is equivalent to 12sen/Atlan share after considering Atlan’s 75.8% effective stake in SMSB via DFI.
Source: Maybank Research - 05 Dec 2017

This case easily solved by starting to check purchaser passports like in airports.

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28 Jan 2018 11:12 #24242 by divads
divads replied the topic: Duty Free International - 52 weeks low and Heinemann partnership

Atlan Holdings Bhd - 3Q'FY18 - Results Dragged by Forex Losses

Date: 12/01/2018

Source : MERCURY
Stock : ATLAN Price Target : 6.10 | Price Call : BUY
Last Price : 4.40 | Upside/Downside : +1.70 (38.64%)

Maintain BUY

We maintain BUY recommendation with unchanged target price of RM6.10 based on SOP valuation. We continue favor Atlan for its growth potential, resilient earnings and sustainable dividend payout. Potential re-rating catalysts for the stock include foreseeable M&A to unlock value of its assets.

3Q’FY18 Profit Dragged by Forex Losses, Revenue in-line

Atlan’s 3Q’FY18 net profit plunged 90% to RM1.61mil for the quarter due to foreign exchange loss while revenue in line with our forecast, increased by 2.4% to RM186mil, compared with RM181.6mil same quarter last year due to higher revenue from automotive and investment holding segments. After excluding unrealized foreign exchange loss/gain, Atlan’s core net profit fell 21.8% or RM2.4mil to RM8.6mil for 3Q’FY18 compared with RM11.0mil same quarter last year mainly due to higher management fee incurred and longer than expected gestation period required for cost cutting and efficiency improvement measures to yield results. The duty free segment, the main revenue and profit contributor recorded slight increase in revenue, show sign of stabilizing after demand negatively affected by the imposition of GST at the border outlets and duty free zones with effect from 1st Jan’17.

Maintain Dividend Payout

Despite weaker than expected results, Atlan maintained its dividend payout, declared 3rd interim net DPS of 10.0 sen, in line to our expectation and forecast.

Source: Mercury Research - 12 Jan 2018

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