Mulpha International

Mulpha International is another company with a large piece of prime land in South Johor Economic Region (SJER). It has 800 acres of land at location as shown below. Its land is located nearer to the Second Causeway.

Mulpha International is a diversified conglomerate with shareholder's fund exceeding Rm2.1 billion. The Group's focus is on real estate and property related services and financial services, with operations and investments in Malaysia, Vietnam, Singapore, China, Hong Kong and Australia. Over the years, Mulpha has leveraged on its expertise abroad to become Malaysia largest real estate investor and developer in Australia.

Its 4th Quarter result (ending 31 Dec 2008) has recorded a negative 8.16 sen per share mainly due to its share of impairement losses by FKP Property Group (an Australian Associate) mainly in respect of its properties totalling Rm 98.69 million. Its NTA on 31 Dec 2008 is Rm 1.69.

In 2008 Mulpha International has bought back its own shares from the open market totalling 40 million shares at an average price of Rm 1.07. Mulpha has continued its share buyback in January 2009 with an average purchase price of Rm 0.44. Total number of shares retained in treasury is about 77 million.

From its long-term chart as shown above, it has moved down in 7 waves from its 2007 peak of Rm 2.10 to Rm 0.27 on 30 March 2009. Wave 6 may look small in magnitude in this linear chart when compared to wave 2 and 4, however if one refer to a semi-log chart, wave 6 (+37%) will look comparable to wave 2 (+23%) and 4 (+42%). In Elliott's wave count, 7 waves can be taken as wave A-B-C. Wave 7 at Rm 0.27 can be considered as the bottom. The wave count since 30 March 2007, from Rm 0.27 bottom is as shown below.

Since the Rm 0.27 bottom, the trading activity of Mulpha has incresed greatly as shown above. To date it has completed its wave I and II and sub-wave 1-2-3-4 of wave III. It is currently in sub-wave 5 of wave III. Last Friday it closed at 44.5 sen. Wave III is likely to stop at 49 sen, the top of wave 6.

In 2006 UOB Kay Hian's Reports, using RNAV (Realisable Net Asset Value) approach, the Price Targets for Mulpha are as follows:

(a) Based on Bayan Lepas, Penang Mixed Development Land of Rm 30 per sq ft the price target is Rm 2.68

(b) Based on Damansara Development in Selangor of Rm 60 per sq ft, target price is Rm 3.34

(c) Based on Johor Baru City Centre (Commercial) 0f Rm 110 per sq ft target price is Rm 4.42

(d) Based on Singapore Rm 300 per sq ft target price is Rm 8.55 (wah !!!!)

All the above figure can be found in UOB Kay Hian 2006 papers.