Posted by commonsense > Dec 16, 2018 10:40 AM | Report Abuse

The company property development is mainly focus in the Klang Valley area. Some of the projects that they currently developing are the mix development Kiara 163 with GDV of RM1bil (target completion 2020), Sfera Residensi in Puchong with GDV of RM426mil (target completion end of this year) and Menara YNH near the Golden Triangle area with GDV of RM2.1bil.

But the value in investing in the company lies in it vast land banks around the Klang Valley and Perak areas with most of them yet to be revalue since early 2000. It is safe to say that the NTA of RM1.74 per share recorded in Sept 18 is actually much higher ( most probably around RM3.00). As an example they have a 90 acre land near Genting that they had acquire in 2008. In their books the land is only valued at RM17.8mil but the company is planing for a mix development project with a GDV of RM2bil. At the current share price the company is only trading at 0.8x PB (if revaluation is done potentially this drops to only 0.5x PB). However, the unlocking of the asset value might take some time. Investors need to have a longer term investment horizon for this type of stock.

In the near term, the company currently facing falling revenue and profit which is in line with the general property industry.

Core PBT for 3Q18 would have only been RM4.8mil (instead of the reported RM13.8mil) if we were to exclude the RM3.4 mil gain in disposal and the RM5.6mil write back. For 9m18 property development division actually recorded a growth of 27% in revenue but this does not translate to higher profit. EBITDA and PBT for the same period has fallen by 10% and 15% respectively.

But the bigger issue lies on its balance sheet. The company is overly dependent on debt to fund their operations. As of Sept 18 the current liabilities of RM925mil (of which RM635mil is debt) is higher than the current asset of RM621mil ( of which only RM14mil is cash). The company might faces liquidity issue in the near future unless they can sell more of its assets to raise the cash to help settle their immediate obligation. Their cash flow statement in 3Q18 did not provide details but since there was a gain on disposal, they might have already started to sell some of the assets already.

The dependence on debt might also effect their future profit margin given the expected higher interest rate trend . 9m18 interest cost is RM29mil or 54% of EBIT.

Hopefully management can provide more clarification on how they plan to strengthen their balance sheet position. As mentioned before, given the landbank that they have at the moment (the list of properties under the company has 11 pages in FY17 annual report), the company has immense potential to create more value to the shareholder either by selling the land or developing it in the future.

If you are looking to diversify your portfolio outside of the property industry (due to the current negative sentiment), i would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.8x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions.

Good luck.

Posted by newauction > Feb 25, 2019 5:24 PM | Report Abuse

If you study the buying pattern of this share, you will know that the volumes are actually created by the company. The support level is well- controlled @ 1.23. How it is played? The company buy and sell at volume > 1000 lots to create fake banker buying everyday. Beware of this manipulated share, they are creating misleading data.

Posted by Alfonso > Feb 26, 2019 9:14 AM | Report Abuse

YNH ah YNH, why u do such embarrassing things but not feel embarrassed about it???

Posted by Alfonso > Mar 8, 2019 10:59 AM | Report Abuse

no trading volumn kaki main kaki song

Posted by dompeilee > Mar 21, 2019 5:57 PM | Report Abuse

Medical doctor who thought he was so rich he could take on Quek LC of Hong Leong...now paying the price of his folly

Posted by Sami_Value > Apr 9, 2019 12:02 PM | Report Abuse

crazy fellow who buy & sell himself, sendiri main , sendiri shiok. If see this kind of management, just show them the middle finger.

Posted by Alfonso > Apr 9, 2019 4:17 PM | Report Abuse

kaki main kasi song, this is not acceptable man!

Posted by apolloang > Apr 17, 2019 5:19 PM | Report Abuse

company whole year make 1 mil profit but market cap is worth over 800 mil.....apa ini? tipukah

Posted by Alfonso > Apr 26, 2019 11:16 AM | Report Abuse

kaki main kasi song again, non stop rolling rolling money!

Posted by Sami_Value > May 12, 2019 5:31 PM | Report Abuse

the owner spend more time frying keow teow then managing business

both abang adik same same, one fry YNH, another one fry Rapid

sell !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Posted by xterrorsinx > May 13, 2019 5:42 PM | Report Abuse

YNH getting in Claims for their K163 project and Sfera Residency over RM 100 million. their K163 mall is operating with RM 4m/month cash flows. Now launching another project in Mont Kiara as well so they are moving with momentum!

Posted by apolloang > May 22, 2019 10:13 AM | Report Abuse

property boom ar? this property stock hit new high.apa ini? manipulation kah?

Posted by valuehunt > May 22, 2019 12:46 PM | Report Abuse

I visited their k163 mall recently. Managed to find out that the gross rental around RM 4m/month and nett electricity cost is only 150k/month. This electricity cost is much less than typical RM 400k/month for this size because the use open air concept in the mall where the air is naturally ventilated.

If they have say nett income of RM 3m/month x 12 = RM 36m/year, then their cash flows will be under much less pressure. Eg. The interest of RM 44m/year For 2018 will not be a problem.

Moreover new projects completions like Sfera Residency and K163 Sovo are generating income.

I heard that their OOAK also 97% sold and not yet built. http://ynhb.com.my/the-ooak

I think the future is bright because sales for OOAK around RM 200m would have been locked in. They have plenty of land in Mont Kiara (including 1 near Martrade centre).

Posted by johnpaulgoh > May 22, 2019 12:57 PM | Report Abuse

Their land along Jalan Sultan Ismail and Genting Highlands are worth a lot of money. Genting Highlands land Book value only RM 17m. Ion Delemen Genting sold out their project (and their land is further away). I believe it won't be too generous to value their 93 Acres Genting land at RM 400m.

Menara YNH: Average land price: RM 3,000psf in the area. 3 acres = 130,680 sq ft = RM 392,040,000. Their book value is RM 100 million only!!
1.2

Based on these 2 land their nett valuation should increase by RM 675 million or RM 1.27 + 1.818 (Net Asset) = RM 3.088

They still have a lot of land not revalued.. Check their 7 pages long properties in annual report.

Posted by xterrorsinx > May 22, 2019 3:08 PM | Report Abuse

^ Agree John. YNH is so deeply undervalued and we got to appreciate that the management is doing something to improve the operation.

Posted by Enemiemannan > May 30, 2019 11:33 AM | Report Abuse

有价无市啊..things always look good on paper..

Posted by zhangliang > Jun 7, 2019 3:12 PM | Report Abuse

Something is up

Posted by Gala Kat > Jun 11, 2019 7:29 PM | Report Abuse

Signal of a gradual nose dive ...?

Posted by Mr. A|S|H > Jun 25, 2019 6:14 PM | Report Abuse

wow!!! from rm 1.18 ( 9 apr 2019 ) to rm 2.38 ( 25 june 2019 ). rm 1.20 price up. what's going on?

Posted by xterrorsinx > Jun 25, 2019 8:33 PM | Report Abuse

This counter is genius! Sentiment getting better each day

Posted by goldenhope > Jul 13, 2019 12:32 AM | Report Abuse

why go up so much?

Posted by desmondcsh > Jul 13, 2019 1:10 AM | Report Abuse

Stock of the year? Kuat. Itu boss kasih lu semua huat. Lu pun tolong dia sikit sikit lahhh.

Posted by xterrorsinx > Jul 21, 2019 11:22 AM | Report Abuse

Gogogo Worth RM 3.

Posted by Sami_Value > Aug 2, 2019 1:02 PM | Report Abuse

Dr Yu the new char kuey tew king.

Posted by Alfonso > Sep 12, 2019 2:16 PM | Report Abuse

Dato Yu the God of Kuey Tew

Posted by shpg22 > Dec 7, 2019 3:13 PM | Report Abuse

Koay Teow 1 plate 2.50. Why so cheap?? Outside hawker selling at 6.00 d. KPDNKK please investigate

Posted by Alfonso > Dec 12, 2019 10:31 AM | Report Abuse

How is the kuwy diao king doing recently?

Posted by Alfonso > Feb 28, 2020 4:08 PM | Report Abuse

NICE, kuey tiao king still stable as usual, respect bro!

Posted by Alfonso > Mar 13, 2020 4:39 PM | Report Abuse

Kuey diao king, stay firm and strong bro!!

Posted by Alfonso > May 4, 2020 9:58 AM | Report Abuse

after covid19 still very strong, thanks bro!

Posted by Alfonso > May 7, 2020 11:15 AM | Report Abuse

fulamak, stronger than ever, nice keow teow goreng

Posted by Sami_Value > Jun 17, 2020 2:11 PM | Report Abuse

char keow teow king....newly crown title to YNH's son.....Dr by profession but found his passion in frying keow teow

next time i'll tell the younger generation, don't study so high, wasting time & stress out. learn char keow teow enough.

Posted by Alfonso > Jul 20, 2020 4:04 PM | Report Abuse

King of Keow teow, this hidden skill of frying kui teow already lost in ancient, pls do keep your good work and fry YNH become top of the top blue cips stock!

Posted by Alfonso > Sep 22, 2020 10:35 AM | Report Abuse

My King of Keow Teow, recently y no goreng activities anymore? pls goreng some mee, i miss it