Tuesday 21 July 2015

Speculative Play: Jiankun the turnkey contractor "tukang kontrak"

If you were to asked me to blog about Jiankun, i will say that this is a rubbish company at first glance.

However, after looking over it again. It has transform itself from a high gearing company to current state, a low gearing company and the plus point is that his director Donald Lim is buying heavily and periodicly (>10%) making him an interested party.

There must be something that he knows that we are not sure of, so lets see the hard facts and see what is the company's potential.

Number of share: 152 million
NTA: 30 sen.

Not inspiring right.

But, if we put a miniscule profit of say only 2 million per month, let us see will there be some change.

Yearly profit: 24 million
EPS = 24/152 = 0.16 sen.
PE = 10.
So, fair value is only = 0.16 x 10 = 16 sen. Not inspiring again.

However, if we give a PE = 40 for a small company that is consider "politically connected. " You can google up and check who is Donald Lim in malaysian politics. It might be a "turnkey contractor" for a certain project in the future.

So, the fair value = 0.16 x 40 = 64 sen. A little bit inspiring.

Margin of profit is neraly 100%. I will say, this is only suitable as a speculative play unless the company turn its earning up other than just clearing their debt will. Furthermore, Jiankun warrant is worth at least 32 sen, a margin of profit of 200%. Better bet right?

Furthermore, if we were to look from another perspectives the "speculator mentality." This company have low script, thightly held and most importantly related to Dr. Chen Lip Kong groupa of company and it is previously known as nagamas. The founder of karambunai, petaling tin and nagamas is an astute investor with a 30 years experience in malysia's construction and property and is well connected to the current government.

Karambunai, petaling tin and nagamas might be cheap but they are ideal for "speculative play. " Syndycate love this company, cheap, quiet and forgotten company wherby all flies had deserted jiankun for greener pasture.


According the bollinger band, the bandwidth and the RSI showing uptrend signal. Tomorrow it might go further? Jiankun able to hit above 0.400? Let's see the show by tomorrow.

Bon Voyage Jiankun.

Disclaimer: This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.


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