Wednesday, October 21, 2009

Blog Research: TA Enterprise Berhad

Founder :Datuk Tony Tiah Thee Kian & Datin Tan Kuay Fong

Core Business:
1)financial services

2)Property Development & Hospitality (
Current Project
-Idaman Residence, Located in the heart of Kuala Lumpur’s Golden Triangle and KLCC
-Damansara Idaman & Idaman Villa, Located adjacent to the well-established Tropicana Golf and Country Resort, Ara Damansara and Bandar Utama.

Future Project
-Commercial Development @ Sri Damansara (48 acres )
-Commercial Development @ Bukit Bintang (3-acre prime location in the Golden Triangle ), encompass 3 towers of modern contemporary luxury serviced residences with a lifestyle inspired retail podium.
-Mixed Development @ KLCC (2.3 arces), 2 iconic towers with a proposed 6-star hotel, luxury residences and a high-end retail podium.
-Residential Development @ U-Thant,( 1.4 acres of Freehold low rise boutique residences )

The company will inject the property arm into TA Global which expected to be listed in Bursa Malaysia in November. The company has bouught 3 hotel in this year which includes Westin hotel in Australia, Swissotel Merchant Court Hotel in Singapore and Coast Whistler in Canada.

After included such international property, total asset value of TA Global will worth 2.4 billion and become the sixth biggest property player in Malaysia.

The company have a lot of valuable land in Klang Valley including a few acre in golden triangle K.L.

Future Gross Development Value worth 6 billion which can make the company rush until 2012.


2002 2003 2004 2005 2006 2007 2008 2009 2010-Expected

REVENUE 204,066/154,533/203,445/283,284/312,756/354,520/546,706/535,426/194,612

Net Profit 10,413/15,805/116,294/107,507/80,348/133,063/224,213/91,913/62,307

EPS 0.0078/0.012/0.09/0.08/0.06/0.1/0.16/0.06/0.042/0.1 (Expected)

NTA 1.14/1.17/1.27/1.34/1.36/1.42/1.51/1.46/1.46

ROE 0.60%/1%/7%/5.90%/4.40%/7.04%/10.60%/4.10%/6.80% (Expected)

PE 97.4359/45/12.11111/10.75/11.16667/8.8/7.875/10.33333 /14.5

Research House:
ECM Libra:“The disposal of assets to TA Global will unlock RM900 million value at TAE’s company level. However, for accounting purposes, this will not be reflected at group level. On a pro-forma basis, value enhancement to its book value per share is 53 sen while pro-forma book value per share is RM1.98,”

Hwang DBS vickers:We think investors should Buy TAE to receive the dividend in specie of TA Global’s shares given its prime land bank and large marketcapitalisation. We reiterate our Buy rating and price targetof RM2.10 (ex basis) which is based on our SOP value.

Based on the research above, finds that TA Global have a huge potential growth in the future since the valuable lankbank enable the company rush until 2012, and the company has announced will double its hotel acquire in the coming year. Furthermore, the company will build another two hotel in K.L which can develop their own brand hotel. The company is expected to be the top 5 property player in 5 year.The company is profitable every year. Although the company is impacted by economic crisis which decline in profit but in the time of economy recovering, it will generate higher profit from brokerage and property in coming quarter. Hence, in my view it is worth to invest in medium term even long term.