Ecofirs - Part 2: A Glowing Diamond by Bonescythe

Ecofirs - Part 2: A Glowing Diamond It had been quite a while since I last mentioned about Ecofirst Consolidated Berhad back then at November 2013 (Ecofirs - From Carbon to Diamond) as the company is undertaking a huge makeover and restructuring process that had been maneuvered by turnaround specialist - Dato Tiong Kwing Hee. Dato Tiong joined Ecofirst Consolidated Berhad back then at 2008 as he takes this as a challenge after he had successfully turnaround Mercury from a loss making company to a profitable company that had recently announced a 10 cents dividend back to their shareholders. To date, after a 6 year transformational process inside Ecofirst, things had never been the same again as Ecofirst returned into the black again from a pile a mess after Dato Tiong reshuffled the whole management team and went forward to inject his personal assets into Ecofirst to help the company turnaround. Let's have a quick glance at the current share price movement of Ecofirst Consolidated Berhad. Ecofirst had been consolidating at the region of RM 0.30 for a period of 4 months. During the stage of consolidation, Ecofirst had saw major shareholder and CEO Dato Tiong accumulating large amount of shares. Till date, Teoh Seng Kian held 13%, Dato Teoh Seng Foo held 2.06% while Dato Tiong Kwing Hee held 5.03% of Ecofirst Consolidated Berhad shares. Ecofirst will be likely looking for a break out with huge volume in the coming days after consolidation looks saturated at RM 0.30 region. Ecofirst's Mega Plan Dato Tiong had finally settled the dust in Ecofirst after reviving the South City Plaza into a Edu Mall and placing back the mall into action. Currently, the mall is enjoying around 7.5% on rental yield. Dato Tiong had also managed to turned the stone around for 1Segamat Mall in Johor after the mall was left abandon during the 1997/1998 Asian Financial Crisis. With all this problem resolved, Ecofirst is now ready to put up a new front with 2 flagship project that is going to be helmed by Dato Tiong Kwing Hee and the team. The first flagship project that Dato Tiong is going to unleash will be the latest 62 acres land acquired from Zurich in Ulu Klang for around RM 150m. This strategic piece of freehold land will be fronting MRR2 highway, while right beside the piece of land will be an approximately 20 acres land which is held by IGB. The development dubbed as "Ampang Heights" will be looking for a GDV of more than RM1b as Ecofirst will look into a possible JV with IGB in some development to bring out the ultimate synergy in the development. At RM 150m for a 62 acres of freehold land with accessibility and public infrastructure to the CBD area of KL in 10minutes, the acquisition price of the land is already undervalued as it could worth RM200m now. Ecofirst will be launching a mixed commercial development that will comprises of high end SOHO suites at a price that could be seeing flocks of buyers rushing in. The project will also feature low density bungalows which will be delivered phase by phase. As interesting as the first flagship project, the second flagship project that Ecofirst will be undertaking will be in the heart of the CBD area of Ipoh that will be commencing soon in the late 3Q of 2014. The land which is currently worth more than RM80m had been secured by Ecofirst at only RM20m, which will put a RM60m paper gain in Ecofirst balance sheet (approx 9.2 cents per share). This flagship development by Ecofirst will also highlight a new era for Ecofirst as it could be sold off at a rapid pace considering the cheaper entry cost of land at a steep huge discount. Ecofirst had successful delivered Taipan Commercial Center in Ipoh, and this coming up project that carries around RM350m of GDV will be seeing it selling like hotcakes soon. With more than GDV of RM 1.3b worth of project that is going to be rolled out, Ecofirst will be going to be a very interesting company to be looked upon into. After seeing Dato Tiong's ability in reviving Ecofirst from the slump, the public confidence in Dato Tiong will be on a very solid note. While the above had been already good, all this had yet to factored in the 1000 acre of agricultural land in Johor that will be used for organic Gaharu plantation which could be worth a stunning RM2b once fully planted and ready to harvest. In my opinion, Ecofirst will be definitely a good company to be invested in after seeing so much positive changes in the management team and the company had been putting on convincing figures again. With Dato Tiong spearheading the company, I believe Ecofirst will continue to bring more excitement and value to the shareholders. Ecofirst prospectus will be exciting based on - Ulu Klang 62 acre flagship project dubbed "Ampang Heights" worth more than RM 1b in GDV and a possible JV with IGB - Ipoh project with approx RM350m GDV that will be priced 25% cheaper than market ongoing projects - Agricultural research and development in Gaharu plantation that will be looking for a RM2b worth plantation - Acquisition of Ipoh Land which is below market value, putting approx 9 cents gain per share A short term outlook will see Ecofirst challenging RM 0.35, while a longer term outlook will see Ecofirst possible setting down at RM 0.50 when parts and parcel started to put into their respective places. Are you decided for this venture? Don't be too late. Bone's short term TP: RM 0.35 Cheers and have a nice day Regards, Bone