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Tuesday, July 31, 2018

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 ! 


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.


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 !


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.

1 comment:

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