Eagle Vision Invesment

These Are The Top 8 Reasons For Buying BINA PURI

 

A DEFENSIVE STOCK

1. Price is 42 cts with NTA of 93 cts Bpuri is selling at a 55% Discount to NTA. It has a Big Margin of Safety.

2. DIRECTORS’ EXERCISED 3.2 MILLION ESOS AT 50 CENTS

Instead of Buying From Open Market at 42 Cents Directors Chose To Exercise ESOS At 19% Premium to Open Market Price.

Why? Only reason is.  BPuri shares are thinly traded. On some slow days only 30,000 shares are traded. So Directors SEEING VALUE have loaded Up on BPuri.

3. PRIVATE PLACEMENT OF 21 MILLION SHARES ALSO AT 50 CTS.

BPuri also placed out 21 million Shares at a premium price of 50 cts (19% higher than open market trading price)

Why are Directors & Those Who Accepted Private Placements at higher than market prices willing to do so? Because they want to Load Up A Lot Due To Coming Good Prospects.

4. Rm2 BILLIONS PROJECT AWARDED IN YEAR 2015

Management has stated that all the progress profits from Year 2015 Projects will be Reported by 31st December 2016. So Next Few Quarterly Results Will Be Good.

 

5. MORE PROJECTS AWARDED IN YEAR 2016

Rm80 Millions for Flat Building in Sabah

Rm1.35 Billions for Pan Borneo Highway

Rm73 Millions Project from RAPID of Petronas

Rm230 Millions For Prima Homes in Johor

Total Project Awards Reaching Rm3 Billions. This is comparable to Larger Listed  Construction Co.

 

6. BULLISH ON SECURING MORE 2017 PROJECTS

According to Director Matthew Tee expects Bina Puri to secure even more Infrar related projects for Year 2017.

“Bina Puri Holdings Bhd executive director Matthew Tee Kai Woon is of the view that Budget 2017 will be positive for construction firms, with more contracts to be awarded in the final quarter of this year.

“The immediate one will be MRT2 and LRT3, followed by the Sabah section of Pan Borneo Highway next year,” he commented.

Tee also advised investors to start looking at construction stocks, because they are the prime beneficiaries of mega infrastructure projects.

“It should be a good year for us. If the oil price rebounds, there will be a lot of oil and gas projects that require general works from us,” he further said.

 

7. GOVT, STATES & PETRONAS LINKED JOBS ENSURE SAFETY OF PAYMENT

Almost all the jobs are Govt related. This ensures safe payment of completed work progress. And for projects awarded in Year 2015 the progressive income from projects will increase more and more by End 2016 Results.

 

8. BINA PURI – A Construction Laggard That Is Going To Perform soon.

GKent & Gadang (both Govt crony cos.) have run up in price. Since BPuri is also Govt linked it will also move up as General Election is coming soon.

 

Calvin recommends buying BPuri at 42 cts With A Target Price of Rm1.20

Please avoid punting or day trading. Buy and keep longer term is the best course of action.

 

Warmest Regards,

 

Calvin Tan

www.eaglevisioninvest.com