YNHProp ... Aug10

The acquisition of YNHP shares by its major shareholders and directors could be a preclude to bigger corporate moves. The company says the stock purchases are driven by the belief that the shares are undervalued.

Chairman and executive director Daruk YuKuan Chon and MD Datuk Yu Kuan Huat have been acquiring the company’s shares consistently for the last three years (2007-2009) as they feel the stock is undervalued.

Reports have shown that Datuk Yu Kuan Chon had raised his direct equity interest in the company to 17.43% as at Aug 11, 2010 while his brother Kuan Huat increased his holdings to 11.15%. Other major shareholders in YNHP are EPF (5.365) and Aberdeen Management plc has 10.93% stakes.

YNHP has suffered from a lack of earnings visibility as its property projects may be further delayed.

The company’s profit net profit fell to RM14.76 in 1Q2010 million from RM15.17 million a year ago. Its net assets per share stood at Rm1.80 as at March 31.

Going forward … preliminary work has begun on the Menera YNHP project after delays and construction is scheduled to begin within a year as the developer waits for its prime land to reach its full potential.

The company is also talking to potential local and foreign investors but nothing has been confirmed so far. Sources say that YNHP is now talking to a potential foreign investor, which would acquire the tower and own up to a 30% equity portion of the development.

While the retail podium of the towel was sold for RM300 million to various parties, many do not foresee construction beginning anytime soon pending, the conclusion of the talks of the potential business partner.

It has move into healthcare. It had in Feb 2009 signed an MOU with hospital operator Pantai Holdings Bhd to build and lease a private hospital in Sri Manjung, Perak. YNHP will lease the hospital to Pantai, which will operate it.