TOP 7 FACTORS YOU SHOULD KNOW ABOUT Ahmad Zaki Resources Bhd (7078) Calvin Tan Research

February 14, 2019 By Calvin Tan Smart Investment

Hi guys,

These are the salient factors for AZRB

1) A DEFENSIVE HIGH MARGIN OF SAFETY STOCK

At 36.5 sen with NTA at 89 sen AZRB is selling at almost 60% discount to NTA. This is the margin of safety Ben Graham required at 30%

2) AZRB AT 36.5 SEN IS SELLING AT ALL TIME LOW COMPARED TO ITS HEY DAYS OF OVER RM2.60 BEFORE SPLIT

This is the time to buy low. Buy low is the most important criteria to sell high later (As opposed to chase high then sell low)

3) AZRB IS A TOP CLASS A BUMI CONTRACTOR. IT WINS CONTRACTS ON ITS OWN MERIT

IT HAS SECURED MANY CONSTRUCTION PROJECTS

4) AZRB PAYS GOOD DIVIDENDS

See

Let’s calculate for year 2018

It paid a One sen dividend

It gave One Bonus share for 8 shares held which is 1/8 x 36.5 = equivalent to 4.56 sen

So total yield is 4.56 & One sen = 5.56 sen

That is a very nice 15.2% yield

(NOTE: AT 15.2% YIELD AZRB OFFERS ONE OF THE HIGHEST DIVIDEND YIELD IN KLSE)

This shows that Company is sanguine about its future as dividend cannot lie

5) THE MANAGEMENT OF AZRB IS FAIR AND TRANSPARENT

To benefit from the Bonus Issue & Dividend AZRB DIRECTORS USED THEIR OWN MONIES TO BUY SHARES FROM OPEN MARKET TO QUALIFY FOR THEM JUST LIKE ALL SHAREHOLDERS (THERE IS NO SPECIAL FAVOURS LIKE JAKS DIRECTORS WHICH REWARD THEMSELVES WITH LOTS OF “FREE SHARES”

See

NOTE: DIRECTORS AND INSIDERS BUYING SHOWED CONFIDENCE (AND THEIR COST OF PURCHASE BEFORE BONUS RANGES FROM 50 SEN TO OVER RM1.00)

So at 36.5 Sen we are getting in far below Directors’ cost

6) AZRB HAS LAND ASSETS STILL AT OLD BOOK VALUE AT WONDERFUL PRICES

See (refer to AR and scroll down to Properties owned by AZRB)

Let;s take a look at 2 pieces

1) At Property No. 6 GM 1754 Lot 167 Mukim Sabai Daerah Bentong Pahang Darul Makmur Date of purchase 8-Oct-10

Vacant land Freehold 4.578 ha    Price: RM960,000

AZRB has a 4.578 hectare of FREEHOLD LAND IN BENTONG with a Book Value of Rm960,000

One hectare = 2.471 acre

So 4.578 hectare x 2.471 = 11.312 Acres

So 11.312 Acres of Freehold Lands valued at Rm960,000

How much per acre

Rm960,000 divides by 11.312 = Rm84,865 per acre

How much per sq ft? Divides 84,865 by 43560 = Rm1.94 Psf

Whoa! AZRB’s Freehold land in Bentong has a Book Value of Rm1.94?

This is less than the price of a mosaic tile going at Rm2.00 to Rm3.00 psf

See this

Lot 8316 PT18854 – PT19458 Mukim Bukit Payung Daerah Marang Terengganu Darul Iman

Land held for Development Leasehold expiring in year 2115   66.96 acres  Rm7,500,000

This is a leasehold development land with lease until year 2115

66.96 acres priced at Rm7.5 millions

To convert to price per acre  Rm7,500,000 divides by 66.96 = Rm112,007

To further convert to Per Sq Ft

Rm112,007 divides by 43,560 = Rm2.57

Wow. At Rm2.57 psf this is even cheaper than Naim’s land in Sarawak at Rm4 psf

NOW IF ECRL (East Coast Railway Line) is restored then AZRB should reap a windfall like Pan Borneo Highway for Naim. If not still Ok

Those lands in Bentong are suitable to plant “Mau Sang Wang Duria” while Maran has a population of over 100,000 people. So just build affordable houses and they should sell well

7) TOP 30 SHAREHOLDERS OF AZRB ARE LOCAL FUNDS, FOREIGN FUNDS & BANKS & UNIT TRUSTS & INSURANCE COMPANY

LIST OF 30 LARGEST SHAREHOLDERS AS PER RECORD OF DEPOSITORS

Zaki Holdings (M) Sdn Bhd

AMSEC Nominees (Tempatan) Sdn Bhd – Pledged Securities Account – AmBank (M) Berhad for Zaki Holdings (M) Sdn.bhd.

Zaki Holdings (M) Sdn Bhd

Lembaga Tabung Haji

Citigroup Nominees (Asing) Sdn Bhd – Exempt An for Citibank New York (Norges Bank 14)

Cartaban Nominees (Tempatan) Sdn Bhd – RHB Trustees Berhad for Manulife Investment Shariah Progress fund

CIMB Group Nominees (Tempatan) Sdn Bhd –

CIMB Commerce Trustee Berhad – Kenanga Growth Fund Citigroup Nominees (Tempatan) Sdn Bhd –

Kumpulan Wang Persaraan (Diperbadankan) (Kenanga)

Amanahraya Trustees Berhad – Public Islamic Select Treasures Fund

CIMB Group Nominees (Tempatan) Sdn Bhd –

Hong Leong Asset Management Bhd for Hong Leong Assurance Berhad

(LP Fund ED102) Citigroup Nominees (Tempatan) Sdn Bhd

– Kumpulan Wang Persaraan (Diperbadankan)

(Affin Hwang SM CF) Citigroup Nominees (Tempatan) Sdn Bhd –

Employees Provident Fund Board (Asian Islamic)

Amanahraya Trustees Berhad – Public Islamic Treasures Growth Fund

– Pledged Securities Account for Dato’ W Zulkifli Bin Haji W Muda

Citigroup Nominees (Tempatan) Sdn Bhd – Universal Trustee (Malaysia) Berhad for CIMB Islamic Small Cap Fund

Hong Leong Assurance Berhad – As Beneficial Owner (Unitlinked GF) Universal Trustee (Malaysia) Berhad –

KAF Dana Adib Amanahraya Trustee Berhad –

Public Islamic Opportunities Fund CIMB Islamic Nominees (Tempatan) Sdn Bhd –

CIMB Islamic Trustee Berhad – Kenanga Syariah Growth Fund

Maybank Nominees (Tempatan) Sdn Bhd – Pledged Securities Account for Tang Sing Ling Cartaban Nominees (Tempatan) Sdn Bhd

– RHB Trustees Berhad for Manulife Investment –

HW Shariah Flexi Fund Amanahraya Trustees Berhad –

PB Islamic Smallcap Fund Citigroup Nominees (Tempatan) Sdn Bhd –

Pledged Securities Account for Tan Sri Dato’ Sri Haji Wan Zaki Bin Haji Wan Muda 1

So many Top Guns are here

ZAKI HOLDING TOP BOSSES PUT THEIR OWN MONIES INSIDE AZRB

Public Islamic Select Treasures Fund. PB Islamic Smallcap Fun.  Public Islamic Treasures Growth Fund

Hong Leong Assurance

CIMB Islamic Small Cap

KAF-Seacroat

Affin Hwang

EPF

Tabung Haji

Manulife Insurance

Amanahraya

Kenanga Growth Fund

 Kenanga Syariah Growth Fund

If These Top Guns & Top Funds Put Their Monies in AZRB you think AZRB will remain a penny stock for long?

ALL THEIR HOLDING COSTS ARE MUCH HIGHER THAN NOW

SO WHAT ARE YOU WAITING FOR?

BEST REGARDS

Calvin Tan Research

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