Interesting insiders trade

There are four insiders have been accumulating YNH Property aggressively -

(i) Yu Kuan Chon(Chairman of company)31.19% interest
(ii) Credit Suisse Group from almost nothing to 10.18% interest
(iii) Aberdeen Asset Management Asia limited (7.32%)
(iv) Lembaga Tabung Haji (6.10%)

We can be very suspicious if Credit Suisse writing a report and promoting stock without much commitment. With them risking real money of RM 70 mln is something may will certainly get my attention.

Aberdeen Asset who is managing money for institutions with strong bottom up stock picking approach is another hint that I should look something closer.

YNH Property in a nutshell is in property development with exposure to township development in Manjung and niche high end residential projects. Name like Mont' Kiara probably very familiar to you. I really like their locations. This is what I found from their annual report.

Despite the weak economic conditions in 2008, the Company's strong on-going projects such as Lot 163 Suites (Kuala Lumpur city centre), Ceriaan Kiara (Mont Kiara, Kuala Lumpur), Taman Singa Baru, Taman Sejati and Taman Manjung Baru and Manjung Point Seksyen II continue to contribute positively to the Group's income. As such, the Board is cautiously optimistic of the Group's prospect for the subsequent financial year.

YNHPB had on 5 March 2009 entered into a second agreement with Frasers Hospitality Pte Ltd to manage the Gold-Standard serviced residences, Fraser Residence Kuala Lumpur located at PT No. 6, Seksyen 44, situated along Jalan Sultan Ismail, Kuala Lumpur.

Fraser Residence Kuala Lumpur is part of a mixed development project comprising serviced residences, office suites and also retail mall with a total gross development value of approximately RM550 million. Fraser Residence Kuala
Lumpur will be constructed on a piece of land facing both Jalan Ampang and Jalan Sultan Ismail. Key features includes a two towers with one and two-bedroom serviced apartments, a sky gymnasium, infinity lap pool, whirl pool and sauna and is cheduled to contribute positively to the Group’s income for the next five years.

Another proposed iconic future development by YNHPB is the Menara YNH, which is located besides Shangri-la Hotel, along Jalan Sultan Ismail, Kuala Lumpur. Menara YNH, has one of the most exclusive business addresses in Kuala Lumpur city centre, the Jalan Sultan Ismail, where most prestigious 5 star hotels and upmarket office spaces are located. The commercial development sits on a 130,826 sq ft approximately 3 acres) of land with a wide frontage of 320 feet along Jalan Sultan Ismail. The iconic Menara YNH is one of the few international “Grade A” office building
will have a luxurious retail podium and two office wings which will be equipped with energy-saving features.

Subsequent to FY 2008, YNHPB achieved further sales during soft launching for Menara YNH commercial office and retail podium of approximately RM300 million, which will add on to the existing proposed RM926 million sales to KFH based on their offer to purchase 50% of the total office space. Negotiation with KFH is progressing well and
formalization of a Sales and Purchase Agreement is expected to be completed within one year. Menara YNH is expected to contribute positively to the Group’s earnings for the next eight years.

YNHPB had on 19 February 2009 entered into a Memorandum of Understanding with Pantai Holdings Bhd to build and lease a private hospital in the Manjung Point township development located in Seri Manjung, Perak. The Pantai Seri Manjung Hospital will add value and provide first class medical facilities and services in our existing and future developments in the Manjung Point Township in Seri Manjung, Perak.

The Group has also acquired 95 acres of development land in Genting Highland in 2008. The land is located strategically next to the Genting Highland Resort and was acquired for RM16.05 million. This is a relatively low price as some infrastructure is already in place. In addition to that, the land is freehold and has been onverted to building title. The cool weather and easy access (forty-five minutes by highway from KL city centre) will make this an attractive development. The proposed development comprises of commercial, retail, condominium, bungalows etc. The estimated gross development value is RM 1.96 billion, which is expected to ontribute to the Group’s earnings in the next 20 years.

Lastly, the Group's township development in Seri Manjung (near Lumut Navy Town and Pangkor Island) of approximately 1,000 acres will continue to contribute to the Group's profit for the next 20 to 30 years.

The board[ing] announcement has commenced, got to run........Sept 13,09 Penang.