Tuesday 19 Mar 2024
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Bertam-Alliance-Chart_23_1069THERE have been notable changes at property developer Bertam Alliance Bhd over the past few months. “There are some changes in the shareholding and boardroom. Some of the new shareholders are linked to another listed company as well … it’s a lot of drama for a small property company,” says a market watcher.

Managing director Lim Nyuk Foh, who was appointed last October, recently acquired 18.5 million shares at 84 sen a share, raising his holdings to 33.8 million shares or a 16.3% stake.

According to a filing with Bursa Malaysia, Lim purchased the shares on the open market on May 18 at 84 sen, which was much higher than the closing price of 69 sen on the same day. Interestingly, Bertam Alliance’s net asset value per share stood at 84 sen as at end-March.

The latest purchase made Lim the second largest shareholder after Wisma Jutamas Sdn Bhd, which has a 32.9% stake.

Wisma Jutamas, according to the Companies Commission of Malaysia (CCM), is equally controlled by Zatizam Zahari and Zalifah Kadis, while the company directors — Lee Kian Vui and Lee Kian Chung — share the same address in Sandakan, Sabah.

To recap, Wisma Jutamas acquired the 32.9% stake or 68 million shares in Bertam Alliance from Brem Holdings Bhd in July last year.

Based on filings with CCM, the two directors of Wisma Jutamas, as well as Lim, stay in the same area, in Taman Tyng, Sandakan.

It is worth noting that Lim is also the managing director and largest shareholder of furniture company Priceworth International Bhd, with an 11.5% stake.

He is also the largest shareholder of Sarawak Consolidated Industries Bhd, a property developer and concrete product manufacturer, with a 29.3% stake.

Much of Lim’s shareholding in Bertam Alliance could have been acquired from privately held Bond Resources Sdn Bhd, which had on May 18 sold 34.9 million shares or 16.9% equity interest and ceased to be a substantial shareholder.

In March, Bond Resources had sold 17.4 million shares or a 8.4% stake in Bertam Alliance. Bond Resources is the vehicle of two individuals, Gan See Hing and Teng Mee Yong.

Apart from Lim, Koo Jenn Man, an executive director of Priceworth International, was appointed to the Bertam Alliance board in May.

This would mean that two of the seven directors in Bertam Alliance are linked to Priceworth International.

Koo was also the company secretary of a company called Tung Fong Hotel (SDK) Sdn Bhd, which recently emerged, then ceased to be a substantial shareholder of Bertam Alliance. Tung Fong Hotel had surfaced in Bertam Alliance with 17 million shares or a 8.2% stake on May 18, but then sold 9.9 million shares on May 26.

According to the Bursa announcements, Tung Fong Hotel is the vehicle of Sudirman Usman and Andi Santriani Mohd Rida.

A check with the CCM reveals that the two equally own Tung Fong Hotel and that it is a dormant company.

Which party has accumulated the shares held by Tung Fong Hotel and the rest of Bond Resources’ stake is not known.

Many of the changes at Bertam Alliance took place in August last year, when it acquired a 2.7-acre parcel in Kota Kinabalu from Damaipuri Property Sdn Bhd for RM41.5 million. Damaipuri is controlled by Lim and one Ang Lee Eng.

The land is currently charged to Sabah Development Bank Bhd, and the amount required for full redemption is RM37.8 million. The property has approvals for a proposed 18-storey, 220-unit residential apartment project.

Interestingly, the announcement to the local bourse states, “Neither the purchaser nor the company is privy to the net book value of the property”.

In October last year, Bertam Alliance acquired a 33-acre parcel from Nadi Hasil (M) Sdn Bhd for RM43 million, in which one of the directors is Andi Santriani of Tung Fong Hotel.

With these new land parcels, it is possible that Bertam Alliance could begin to see more property development activities.

For its first financial quarter of FY2015, ending Dec 31, Bertam Alliance posted a net profit of almost RM3.1 million from RM15.1 million in revenue, derived from property development and construction activities.

The company has a sound balance sheet, with net current assets of RM151.98 million as at March 31, 2015. This was due to a huge property development inventory of RM100.9 million, trade and other receivables of RM65.1 million and almost RM3 million cash versus relatively small trade payables of RM23.8 million and short-term debt of RM5.6 million.

Total net borrowings came up to RM55.17 million, or just 31.6% of its shareholders’ equity of RM174.38 million.

Bertam Alliance’s (fundamental: 1.35; valuation: 1.1) stock is thinly traded, and closed last Thursday at 68.5 sen, giving it a market capitalisation of RM141.6 million.


Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Malaysia Weekly, on June 1 - 7, 2015.

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