The announcement below was made on 12th April 2021, just 11 days after I topped up more 0198 GDB, you can check out why I bought GDB here:
Check out the full announcement here:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=113708&name=EA_GA_ATTACHMENTS
One important thing to note:
Wow! Bonus issue of Shares and Warrants! Sounds good! Let's look at the rationale of this proposal:
My view on this proposal:
1. Bonus Issue will be fully paid and will not capitalize on the reserves, and will not increase the issued Share Capital. Not sure how it works as normally bonus issue will increase the issued Share Capital. Anyway, since it was mentioned that no capitalization on the reserves for the bonus issue, I assumed there will be less dividend payout in the coming quarter? So we are getting bonus shares instead of dividend, that's always a welcome exercise for long term investor like myself, especially when the company is still rapidly growing. This provide a very good opportunity for investors to increase their investment without having to fork out additional capital, and tap along with the company's growth.
2. The key is the conversion of the issued Warrant. The bonus issue of Shares will not raise any additional funds, but the conversion of the bonus issue Warrants will raise a potential RM 135 million of funds, provided that all issued Warrants are converted. This additional funds will be use as additional working capital to capitalize on the recovering construction sector. These funds can be used to purchase additional plants & machineries and hiring more staff to cater for more jobs when the economy recovers to pre-COVID level. Although GDB is a zero debt company and currently holds RM 81 million of cash and cash equivalents, I think it is a wise move to raise additional capital instead of using their existing cash pile for expansion, especially during the current economic condition, because you'll never know when your clients will delay their payments. Furthermore, it is very important for GDB to be a good pay master even if their payments are delayed, as good relationship with sub-contractors and vendors are crucial in construction sector. Therefore, more cash in hand will put GDB in good position to secure more jobs and bigger jobs, without straining their balance sheet.
3. EPS will be diluted after bonus issue and conversion of warrants. This is unavoidable when the company is growing rapidly. Checking back GDB's past performance: listed in 2017; acquired Eco Geotechnics Sdn. Bhd. in 2019; transferred to the Main Board in 2020; won the biggest RM 1.25 billion contract since the inception of the company. GDB's growth has been really impressive. With outstanding order book stood at RM 2.06 billion, current tender book at RM 1.3 billion, and the experienced management is very optimistic on achieving the RM 500 million new job target in FY2021. I believe GDB has the potential to continue to grow into a larger construction company with higher yearly revenue, and cements its place in the Malaysia's construction sector.
A little update on the company's prospect:
*from the Edge, link: https://www.theedgemarkets.com/article/gdb-proposes-onefortwo-bonus-issue
GDB closed at RM 0.89 on 19th April 2021, 11.25% higher than my latest purchase at RM 0.80 on 1st April 2021.
Disclaimer: This is a personal opinion recorded for my personal record. Nothing on this Blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. The author shall not be held accountable for any investment decision made by the reader. Invest at your own risk.
以下公告于2021年4月12日发布，就在我加码0198 GDB的11天后，您可以从这了解为什么我会加码GDB:
点击此链接查看完整的公告：
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=113708&name=EA_GA_ATTACHMENTS
有一点需要注意的是：
哇唠！发红股还有凭单叻！好像很好料！来看看发红股的理由：
这是我的个人看法：
1. 红股将是不会动用储备金，而股本也不会随之增加。我不太清楚这到底是怎样运作，因为通常股本会在发红股过后增加。无论如何，既然说明了不会动用储备金，那么我预测接下来的股息将会减少？那么我们得到的就是红股而不是股息了，对我这种长期投资者来说真是再好不过了。当然前提是公司还在快速成长当中。此举给了投资者们一个不需额外掏腰包也可以继续扩大对于公司的投资的好机会，也让投资者们可以跟着公司一同成长。
2. 重点在于凭单的行使。发红股并不会为公司带来额外的资金，不过这些免费凭单的行使就可以为公司带来最高RM 1.35亿的资金。这笔资金将会扩大公司的营运资金，以迎接建筑行业的复苏，例如购买更多的机械与设备，以及聘请更多的员工来应付经济恢复到疫情之前后可能会带来的更多工程。虽然GDB向来都是零贷款，而且手握RM 8,100万的现金，但是个人认为筹集额外的资金来应付公司的扩充还是比动用手头上的现金更好。尤其在这个市道不是那么理想的情况下，您永远预测不到您的客户是否会拖欠还款。而且，即使客户拖欠还款，GDB也必须支付它的分包商。因为与分包商保持良好的关系在建筑领域里是十分重要的一环。所以，留多一笔现金在手上将可以让GDB在不增加财务压力的情况下去争取更多以及价值更高的工程添加一个利好因素。
3. 股价在发红股以及凭单行使后会分薄每股盈利。这其实是公司继续快速扩充的必经之路。翻看GDB过去几年的表现，2017年上市；2019年收购Eco Geotechnics Sdn. Bhd.；2020年上主板；到2020年11月标得自公司成立以来最大RM12.5亿的工程。这些年来GDB的惊人成长都是有目共睹的。目前手握愈RM 20亿的未完成订单，正在竞标的工程高达RM 13亿，以及经验丰富的管理层非常有信心可以在2021财年达到RM 5亿的新工程目标，我相信GDB很有机会可以继续成长成为规模更大的建筑公司，以在本地建筑业占有一席之地。
以下是公司前景的一些更新：
*消息来自The Edge，链接：
GDB于2021年4月19日收在RM 0.89，比我在4月1日买进的RM 0.80增长了11.25%。
免责声明：这只是个人意见，记录下来供我个人使用。此博客上的任何内容均不构成投资建议，绩效数据或任何建议，任何证券，证券组合，投资产品，交易或投资策略均适合任何特定人士的建议。作者对读者做出的任何投资决定概不负责。投资风险自负。
感谢你的文章，写得非常好