DUTALND - Safest Cash Rich Company In BURSA

After our successful investment in TRIPLC - Sure win Zero Risk, (now name as PEB still up after special dividend), now it's time we found another one look similar and still have big % to move up.

Yes, it's DUTALND (3948)! 

A company remain cheap and safe to invest ! 

Why? 

I put it very simple for this case as I hope you can understand immediately !

Everything start with Dutaland sell off their plantation land in Sabah.

source:
https://themalaysianreserve.com/2018/04/20/dutaland-to-proceed-with-plantation-sale/

Lets us check the latest quarterly result of DUTALND on May 2018.

Many might not realize that the company already receive the money of RM 675 million !
To understand this amount is significant or not, let me show you my very simple calculation.

We know that total share issued of DUTALND is 846.118 million share.

RM 675 million / 846.118m = RM 0.7977 cash per share !

Current stock price only RM 0.52. What is this mean??

RM 0.7977 - RM 0.52 = RM 0.277

Still got RM 0.277 cent potential upside and it's 53% potential upside now !!

Definitely this company is already showing undervalues !


Well of course we need to check whether the company is nett cash position !

Dutalnd short and long term borrowings not even more than 4 million ! That mean the land sale of RM 675 million will be a big cash that going to pump into Cash and Bank balances during August quarterly result !

This is how up coming result possible look like ! Cash big increase !

By the time quarterly result release, then many people going to realize the big value of this money !

Beside this, the company boss already taking action lately !

Kenny Height Developments is actually own by the boss family, in annual report 2017, they owned 28.23%, on 26/7/2018 has increased to 29.14% !! If you check back past few years annual report, all the while just maintain ! Duta Equities also from total 22.21% increased to 23.49 %

Why all of suddenly the company and the family start buying their own company shares?

It's obvious !

DUTALND is very undervalues after plantation land sale off !
The Family increase stake for aiming the future return of this big cash of RM 675 million !

What is the potential of this RM 675 million ? Special Dividend ? 

Yes !!! 

Many did not know company already planned to payout RM 85 million for special dividend which is equal to:

RM 85 million / 846.118m = RM 0.10045 cent dividend !! 

Dividend  RM 0.10 / Current price RM 0.50+ = 20% dividend yield !

SOME more ! 

The company receives property worth RM 45.4 million ! It's equal to RM 0.053 cent per share !

http://www.theedgemarkets.com/article/dutaland-receives-uthant-luxury-apartments-settlement-debt


SOME more ! 

And look Duta Grand hotel this property worth RM 334.184 million which valuation at 1996 !
If revalue it could be double up !

Just take RM 334.184 / total share 846.118m = Worth RM 0.394 per share !


Let us see the price movement lately :

Technically hit low of RM 0.47 where the place company start buying back their own shares. Once break RM 0.54 definitely can see big push up again.

As a quick conclusion, 

Just imagine you buy this company at RM 0.50+, 
with big cash worth RM 0.79, 
with property / land development worth RM 0.40+, 

You are actually buying RM 0.79 + RM 0.40 = RM 1.19 with only RM 0.50+ at market price ! !!

And already have RM 0.10 special dividend for sure coming into pocket soon ! 


My own short term hope to reach RM 0.64 mid term hope RM 0.78.