As investors understand icps, the right for icps will rise b4 it ceases trading on Nov 19 :)


Date Range Close Volume
10/11/2020 0.045 - 0.145 0.05 40,766,700
09/11/2020 0.14 - 0.255 0.15

the group also said the government has taken various measures to stimulate the property market including the reintroduction of the "Home Ownership Campaign", stamp duty exemption and real property gains tax.

It said it is optimistic that such measures would help stimulate the Malaysian property market.

MCT banyak cash ~rm420mil boleh acquire other prop companies :)

Also dapat peluang price appreciation for the icps sebab it will be traded on bursa till the icps fully converted into sunway ordinary shares tanpa further bayaran

The icps is a good deal , first 1-3year get dividend 5%++, 4th & 5th year dapat 50% sunway shares without further Payment

The volume for the right for icps surging now. With better understanding, investors will get it

Wow :)


Target Price RM0.190, RM0.200
Last closing price RM0.175
Potential return 8.5%, 14.2%
Support RM0.165
Stop Loss RM0.155
Possible for breakout. MCT is staging a potential breakout of its sideways channel. Corresponding RSI and MACD indicators remain healthy while trending sideways, with anticipation of continuous improvement in both momentum and trend in the near term. Should resistance level of RM0.190 be broken with renewed buying interest, it may continue to lift price higher to subsequent resistance levels of RM0.200.

However, failure to hold on to support level of RM0.165 may indicate weakness in the share price and hence, a cut-loss signal.

Source: PublicInvest Research - 20 Oct 2020

P/b value ~0.25x Cheap kan? MCT controlled by ayala . The largest Conglomerate in the Philippines

Net Assets per share~60sen

Cash ~rm420mil .., solid


BERHAD 200901038653 (881786-X) Incorporated In Malaysia
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE QUARTER ENDED 30 JUNE 2020
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Proceeds from disposal of property, plant and equipment Proceeds from disposal of assets held for sale
Interest received
Additions to:
Investment properties
Property, plant and equipment
Inventories - Land held for property development
Fixed deposits with maturity period more than 90 days Net Cash Used In Investing Activities
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Proceeds from bank borrowings Proceeds from lease liabilities Repayment of:
Term loans
Lease liabilities
Hire purchase payables
Finance costs paid
Increase in amount owing to ultimate holding company
Net Cash (Used In)/From Financing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD
(UNAUDITED) 6 MONTHS ENDED 30-June-20 RM'000
1,099 - 3,657
(439) (3,863) (1,379) (13)
(938)
10,000 -
- (4,900) (161) (15,788) -
(10,849)
(49,664) 469,247 419,583
(AUDITED) 12 MONTHS ENDED 31-Dec-19
RM'000
351 47,000 8,291
(605) (16,188) (53,573) 1
(14,723)
19,950 167
(355,621) (10,888) - (17,122) 519,571
156,057
125,307 343,940 469,247

The icps should be loved by fund mgrs even institutional funds like epf. The dividend 5%++ like EPF too. EPF sapu a lot of sunway shares for the Rights before the cut-off date

Sunway share price returns to RM1.3+ & the right for icps will return to 10sen ++ before the Rights cease trading on Nov 19 . Fingers crossed

Also, ICPS will be traded till 5th year when the remaining 50% is converted into ordinary sunway shares without further payment needed.

What a deal!

2 parts of gains for the ICPS - dividend 5%++ = 2 to 3X bank FD rate + sunway share price appreciation on the 4th & 5th when 50% of ICPS will become sunway ordinary shares without further payment. Period!!!!


Dont throw away your rights for ICPS like garbage :) your money your wealth

Once the right for the ICPS is understood by investors, I rasa tak boleh dapat the right at current cheap price ~5.5sen

That's why.. a lot of people confused... selling their rights for ICPS cheaply. they will regret later. :)


just confirm with your remisiers or investment bank punya staff. senang...




@@


freedomfund If conversion from ICPS to mother share is free, why need to amendment to Conversion Price?
11/11/2020 3:03 PM

I believe unit trust funds will grab the rights for the ICPS before the last day for trading the rights. fingers crossed

I saw cheah family members and EPF buying sunway shares before the cut-off date for the rights to subscribe the ICPS... Must be a good deal for them... think about it

EMPLOYEES PROVIDENT FUND BOARD 02-Nov-2020 Acquired 384,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 30-Oct-2020 Acquired 472,400 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 28-Oct-2020 Acquired 1,000,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 27-Oct-2020 Acquired 400,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 21-Oct-2020 Acquired 100,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 15-Oct-2020 Acquired 63,600 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 14-Oct-2020 Acquired 300,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 13-Oct-2020 Acquired 118,100 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 02-Oct-2020 Acquired 400,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 30-Sep-2020 Acquired 152,500 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 29-Sep-2020 Acquired 250,000 0.000 View Detail
MADAM SARENA CHEAH YEAN TIH 29-Sep-2020 Acquired 1,470,000 0.000 View Detail
MR ADRIAN CHEAH YEAN SUN 29-Sep-2020 Acquired 1,470,000 0.000 View Detail
MR EVAN CHEAH YEAN SHIN 29-Sep-2020 Acquired 1,470,000 0.000 View Detail
PUAN SRI DATIN SERI (DR) SUSAN CHEAH SEOK CHENG 29-Sep-2020 Acquired 1,470,000 0.000 View Detail
TAN SRI DATO' SERI DR JEFFREY CHEAH FOOK LING AO 29-Sep-2020 Acquired 1,470,000 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 28-Sep-2020 Acquired 149,300 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 25-Sep-2020 Acquired 38,800 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 24-Sep-2020 Acquired 1,834,600 0.000 View Detail
EMPLOYEES PROVIDENT FUND BOARD 24-Sep-2020 Acquired 1,000,000 0.000 View Detail
MADAM SARENA CHEAH YEAN TIH 24-Sep-2020 Acquired 300,000 0.000 View Detail
MR ADRIAN CHEAH YEAN SUN 24-Sep-2020 Acquired 300,000 0.000 View Detail
MR EVAN CHEAH YEAN SHIN 24-Sep-2020 Acquired 300,000 0.000 View Detail
PUAN SRI DATIN SERI (DR) SUSAN CHEAH SEOK CHENG 24-Sep-2020 Acquired 300,000 0.000 View Detail
TAN SRI DATO' SERI DR JEFFREY CHEAH FOOK LING AO 24-Sep-2020 Acquired 300,000 0.000

Subscribing the ICPS - 5%++ dividend till dapat balik semua ordinary shares.

So, fixed dividend income + potential capital gain from 4th & 5th year... Sunway is very diversified, so the risk is mitigated, etc.

Sunway PR Price Range 0.045 - 0.255

saya rasa dana institusi akan sapu rights untuk icps sebelum tamat trading bagi sunway PR on Nov 18

Sunway's ICPS - the right =5.5sen add RM1 = RM1.055 , share price =RM1.24, big safety margin. First year to third year dapat dividend 5%+ p.a.

4th year - 50% of the ICPS will become ordinary shares, tak perlu tambah duit. 50% balance dapat dividen 5%++

5th year - the balance 50% bertukar kepada ord shares tanpa bayaran tambahan...


ICPS juga akan didagangkan sehingga tahun ke 5 apabila baki 50% ditukarkan kepada ordinary syer.

Wait for another corporate exercise dengan sapura barangkali

Kenangan sedikit



KUALA LUMPUR, 19 January 2017 - UMW Oil & Gas Corporation Berhad (“UMW-OG”) and Ekuiti Nasional Berhad (“Ekuinas”), through its investment vehicles, are pleased to announce that they have entered into two separate share purchase agreements (“SPAs”) to consolidate their oil & gas businesses under UMW-OG.

Under the SPAs executed between the parties, UMW-OG will acquire Ekuinas’ indirect stake of approximately 42.3% in Icon Offshore Berhad (“ICON”) for new UMW-OG shares, and 95.5% interest in Orkim Sdn Bhd (“Orkim”) for cash, respectively. ICON is the largest pure play owner and operator of offshore support vessels (“OSV”) in Malaysia, while Orkim is the owner and operator of the largest clean petroleum product (“CPP”) marine transportation vessels in the country.

Upon completion of the SPA relating to ICON, Ekuinas will emerge as an approximately 12.6% shareholder in UMW-OG, second only to Permodalan Nasional Berhad (“PNB”) and funds under its management (collectively, “PNB & Funds”), which is expected to hold a direct interest in UMW-OG of approximately 40% (following the proposed demerger of UMW-OG from UMW Holdings Berhad as announced earlier today). Following this, UMW-OG will undertake a mandatory take-over offer for all the remaining shares of ICON at a consideration of RM0.50 a share to be satisfied either via cash or issuance of new UMW-OG shares at RM0.80 a share. UMW-OG intends to secure full acceptance to reap the benefits of consolidation and does not intend to maintain the listing status of ICON.

The enlarged oil & gas businesses under UMW-OG will lead to the creation of a major integrated service provider across the oil & gas value chain, comprising 7 jack-up rigs, 1 semi-submersible rig, 5 hydraulic workover units (“HWU”), 37 OSVs, 14 CPP and 2 liquefied petroleum gas (“LPG”) marine transportation vessels, respectively. With the newly acquired fleet of assets across the value chain, the enlarged UMW-OG will be in a position to benefit from the expected recovery of activities in the sector through its interests in offshore drilling rigs, HWUs and OSVs, and improved earnings profile through Orkim’s long term contracted cash flows.

Upon completion of the consolidation exercise, UMW-OG will embark on a recapitalisation exercise via a rights issue of approximately RM1.8bn. To this end, Ekuinas has indicated its support for the recapitalisation plan, up to RM550mm, comprising its entitlement and application of excess rights shares (“Ekuinas Support”). UMW-OG intends to procure a similar support from its major shareholders, namely PNB & Funds. The Ekuinas Support, together with PNB & Funds’ entitlement after the UMW-OG demerger, would in aggregate amount to approximately RM1.3bn or more than 70% of the rights issue, if subscribed. UMW-OG will pursue underwriting arrangements for the remaining portion.

Commenting on the transaction, Rohaizad Darus, President of UMW-OG, said, “This exercise aims to create a major integrated offshore service provider with diversified earnings through exposure in the upstream and downstream segment of the oil & gas industry. The recapitalisation exercise would strengthen our balance sheet and enhance our competitiveness to ride on the expected recovery of the industry. The merger of the three companies is also timely in answering Petronas’ call for consolidation of Malaysian oil & gas industry.”

Syed Yasir Arafat Syed Abd Kadir, Chief Executive Officer of Ekuinas, said, “We are firm believers in the call for consolidation in the oil & gas sector, and are pleased with this transaction that aims to achieve just that. While the industry has gone through some rough patches in recent times, the outlook is improving, thus providing an opportune time for us to pursue the consolidation exercise. The transaction enables us to crystallise our investments and at the same time participate in and increase our commitment through injection of fresh capital via consolidation. This demonstrates our belief in the longer term prospects of the industry, and particularly, the new UMW-OG.”

The transaction is subject to various conditions, including but not limited to lenders’ consent and UMW-OG’s shareholders’ approval. Barring unforeseen circumstances, the transaction is expected to complete in Q3 2017.

On another note, UMW-OG has also announced the appointment of Dato’ Abdul Rahman Ahmad as its Deputy Chairman.

Harga ipo dulu :)


UMW Oil & Gas IPO Oversubscribed by 10.72 times
18 Oct 2013 — The Institutional Price was fixed at RM2.80 per Offer Share. Accordingly, the Final IPO Price for the Retail ..

UMW announces proposal to list its oil & gas business
Shah Alam, 16 May 2013 – UMW Holdings Berhad (“UMWH” or Company”) announced today that it proposes to list its wholly-owned subsidiary, UMW Oil & Gas Corporation Berhad (“UMW-OG”), on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
In this regard, UMW-OG proposes to undertake the following:
an initial public offering (“IPO”) of up to 843,180,000 ordinary shares of RM0.50 each in UMW-OG (“UMW-OG Shares”), comprising an offer for sale of up to 231,380,000 UMW-OG Shares and a public issue of 611,800,000 new UMW-OG Shares to retail and institutional investors (“Proposed IPO”); and
the listing of and quotation for its entire enlarged issued and paid-up share capital of RM1,081,000,000 comprising 2,162,000,000 UMW-OG Shares on the Main Market of Bursa Securities (“Proposed Listing”).
The Company also intends to undertake an internal reorganisation which involves the transfer of the offshore drilling business and certain companies in the oilfield services division under UMWH and its subsidiaries (“UMWH Group”) to UMW-OG prior to the Proposed IPO and Proposed Listing. Accordingly, UMW-OG had on 14 May 2013 entered into sale and purchase agreements in relation to the internal reorganisation with UMWH Group.
Upon completion of the internal reorganisation, UMW-OG and its existing and proposed subsidiaries and proposed associated company (“UMW-OG Group”) will be principally involved in the upstream sector of the oil and gas industry, providing offshore drilling and oilfield services which includes engineering and maintenance services.
Under its drilling services business, UMW-OG Group provides offshore drilling and workover services with its fleet of four (4) offshore drilling rigs and four (4) hydraulic workover units (“HWUs”) that it operates in Malaysia and other parts of South East Asia. UMW-OG Group operates and jointly owns one (1) semi-submersible drilling rig, namely Naga 1, as well as wholly owns and operates three (3) premium jack-up drilling rigs, namely Naga 2, Naga 3 and Naga 4. UMW-OG Group is also a PETRONAS-licenced provider of HWU services and is the sole Malaysian-owned drilling contractor owning and operating HWUs. In addition, UMW-OG also acts as an agent in Malaysia for international companies providing specialised drilling equipment and services.
Under its oilfield services business, UMW-OG Group has operations in Malaysia, Thailand, China and Turkmenistan, providing oil country tubular goods (“OCTG”) threading, inspection and repair services focused on premium connections. In Malaysia, the UMW-OG Group provides these services at two plants located in Labuan. In Thailand, the UMW-OG Group provides premium threading, inspection and related workshop services at its plants in Songkhla and Sattahip. In China, UMW-OG Group offers similar services, as well as premium accessories threading, at its plant in Tianjin. In Turkmenistan, UMW-OG Group’s workshop in Turkmenbashy provides OCTG threading, inspection and repair services. The UMW-OG Group’s oilfield services business also offers engineering and maintenance services as a customised equipment packager and a total solution provider for power generators and other equipment used in the oil and gas market.
UMWH’s President and Group CEO, Datuk Syed Hisham bin Syed Wazir said, “The proposed listing of UMW-OG is a key strategic initiative by UMWH which is expected to accelerate the growth of the oil and gas business within the UMWH Group and enable UMWH to unlock and crystallise the value of its investment in the UMW-OG Group and enhance the shareholders’ value at UMWH level.” Additionally, the proceeds from the offer for sale will enable UMWH to reduce its existing borrowings thus further improving its capital structure and providing further flexibility for UMWH to raise funds for other strategic purposes such as earnings accretive acquisitions.
The Proposed Listing would also further enhance UMW-OG Group’s profile, increase its visibility as one of the leading oil and gas companies in Malaysia and enable a wider base of investors to participate in the future performance of the UMW-OG Group. The proceeds from the public issue will also provide UMW-OG with the financial resources to pursue growth opportunities.

Aset O&G velesto di China makin bermahal dan berhasil kini kot :)

Imagewww.mprc.gov.my › properties › u...
UMW OIL & GAS CORPORATION BHD | MPRC
In our oilfield service business, UMW-OG has presence in Malaysia, Thailand, China and Turkmenistan, where we offer ...
Imagewww.umw.com.my › umw-announc...
UMW announces proposal to list its oil & gas business ...
Under its oilfield services business, UMW-OG Group has operations in Malaysia, Thailand, China and Turkmenistan, ...
Imagewww.nst.com.my › 2019/01 › u...
UMW to conclude the complete exit from oil and gas sector
2 Jan 2019 — UMW to conclude the complete exit from oil and gas sector ... Materials Co Ltd, UMW China Ventures (L) Ltd and UMW Offshore .

For remembrance b4 Velesto was spinned of from UMW Group.

The group has thus far invested more than RM200mil in O&G pipe manufacturing in China, mostly in merger and acquisition activities with local companies.

“Our investments in China are already giving us returns,” UMW Holdings chief executive officer Datuk Dr Abdul Halim Harun told StarBiz.

there might be a gleam of hope in China. Velesto Energy said its oilfield services operation there is seeing a gradual recovery in demand

The company’s oilfield services operation in China should be recovering and becoming the jewel of the Group :)

Velesto Energy Berhad, previously known as UMW Oil & Gas Corp Bhd, is a multinational provider of drilling and oilfield services for the upstream sector of the oil and gas industry.

The company's line of products and services include drilling and workover services for exploration, development, and production of wells in Malaysia and southeast Asia through several offshore drilling rigs and hydraulic workover units.

Under the oilfield services segment, the company offers threading, inspection, and repair services for Oil Country Tubular Goods in various offshore markets.

Operating revenue is primarily derived from drilling services, which includes ownership and operation of several drilling rigs and hydraulic workover units, or HWUs. Rigs and HWUs are chartered through day-rate-based contracts.

Overall, first half untung. Cash >rm116mil++

VELESTO ENERGY BERHAD
Unaudited Condensed Consolidated Statement Of Cash Flows For The Period Ended 30 June 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (Loss) Before Tax
Adjustments For:
Depreciation & Amortisation
Interest Expense
Share Of Results Of Associated Company Investment Income
Net Gain On Disposal Of Property, Plant & Equipment
(Unaudited) 6 Months Ended 30/06/2020 RM'000
4,201
120,181 37,097
(102) (4,004)
-
(Unaudited) 6 Months Ended 30/06/2019 RM'000
(7,926)
94,048 47,560
(117) (4,014) (58)
Net Unrealised Foreign Exchange Loss / (Gain)
10,076
(265)
Net Fair Value Loss / (Gain) On Money Market Fund
Share Options Granted Under ESOS Operating Profit Before Working Capital Changes
Decrease / (Increase) In Receivables Increase In Inventories
(Decrease) / Increase In Payables
Cash Generated From Operating Activities Interest Paid
Taxes Paid
Net Cash Generated From Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase Of Property, Plant & Equipment
Proceeds From Disposal Of Property, Plant & Equipment
Interest Received
Dividend Received From Associate
Net (Placement) / Withdrawal Of Investments In Money Market Fund
Net Cash (Used In) / Generated From Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Net Movement In Short Term Borrowings
Repayment Of Long Term Borrowings
Payment Of Lease Liabilities
Placement Of Restricted Cash Deposits In Licensed Bank
Net Cash Used In Financing Activities
NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AS AT 1 JANUARY EFFECTS OF EXCHANGE RATE CHANGES
CASH AND CASH EQUIVALENTS AS AT 30 JUNE
Cash and Cash Equivalents comprise:
Deposits, Cash & Bank Balances Less: Restricted cash
135 1,923
169,507 118,191
(19,013) (30,223)
238,462 (33,965) (4,095)
200,402
(38,700) - 4,004 -
(144,648)
(179,344)
(76,050) - (2,664) (2,143)
(80,857)
(59,799) 168,279 8,092 116,572
190,419 (73,847)
116,572
(340) -
128,888 (23,859) (4,165)
6,614
107,478 (43,628) (809)
63,041
(42,756) 154 4,014 328 50,175
11,915
207,150 (299,253) (2,255) (23,707)
(118,065)
(43,109) 187,437
(78) 144,250
215,549 (71,299)
144,250

Meridian, a good buy for permaju. Unrealised profit for the quoted investment ~rm7mil. Bought at 26sen now 33sen (100mil shares). Meridian is profitable :)

MERIDIAN Quarter Report History

FY No. Rev PBT PAT EPS YoY
QoQ
Jun20 - 6,952 4,248 4,248 0.72 1218%
63%
Jun20 - 611 11,433 11,470 1.95

Velesto - penny stok GLC milik negara, harga minyak sedang naik, akaun dah dibersihkan boleh bagi dividend tiada accumulated losses lagi, dapat untung dalam 1st half 2020, barangkali M&A oleh sapura...

Kalau ada stok O&G macam velesto, tolong bagi tau :)

i rasa pelabur akan beralih dari perdana ke velesto , stock industri O&G ini

penny stock perdana milik dayang masih rugi, perdana melaporkan kerugian bagi 1st half 2020 tapi velesto memperoleh untung pulak

lagipun, akaunnya dah dibersihkan, tiada accumulated losses lagi, boleh bagi dividend anytime now

inilah penny stock GLC milik negara. tak banyak penny stocks milik kerajaan bukan? tambahan lagi, penny stock yang memperoleh untung 1st half 2020, industri minyak, kini harga minyak kian pulih, dll... M&A barangkali, dll

kemungkinan M&A dengan sapura seperti yang dilaporkan baru2 ini juga akan mendorong harganya untuk naik terus. pihak yang kena acquire akan naik normally

Jika velesto declares dividend nanti, harga velesto dijangka akan melambung... fingers crossed

Velesto - adalah GLC, milik negara. consider one of the safest companies. :)

**consult your fund mgr

Q1,2020 untung, Q2, 2020 rugi.............. Q1+Q2= 1st half, overall masih untung. :)


Period Ending: Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Total Revenue 140.95 176.27 178.1 208.57
Gross Profit
Operating Income 1.92 35.27 41.13 54.39
Net Income -15.25 16.32 10.2 33.32

Kenanga maintains 'outperform' on Velesto, TP at 43 sen | The ...www.thestar.com.my › business-news › 2019/12/12 › k...
Dec 12, 2019 — Following this win, all seven of velesto's drilling rigs would be utilised throughout most of 2020, assuming contract extensions for Petronas ...

Velesto's Q1 net profit at RM16mil, revenue up 39pctwww.nst.com.my › business › 2020/05 › velestos-q1-n...
May 20, 2020 — KUALA LUMPUR: Velesto Energy Bhd registered a net profit of RM16.33 million ... (Q1) ended March 31, 2020 from a net loss of RM22.22 million a year ago. ... seven jack-up drilling rigs are working, all are still under contract.

VELESTO announcements | KLSE Screenerwww.klsescreener.com › announcements › stock
VELESTO ENERGY BERHAD. OTHERS. CONTRACT FOR THE PROVISION OF 10K JACK UP DRILLING RIG FOR 2020 DRILLING PROGRAMME WITH ...

Velesto bags RM541m Carigali Hess contract | The Edge ...www.theedgemarkets.com › article › velesto-bags-rm54...
Nov 5, 2019 — The contract will commence in the second half of 2020 for a duration of three years, with three extension options of six months each. Velesto ...

Velesto Energy - Gloomy Outlook In 2H2020
Date: 26/08/2020

Source : BIMB
Stock : VELESTO Price Target : 0.16 | Price Call : HOLD
Last Price : 0.125 | Upside/Downside : +0.035 (28.00%)

Back

Overview. Velesto fell into core loss of RM15m in 2Q20 on lower asset utilisation rate. Revenue declined 10% yoy and 20% qoq to RM141m as utilisation rate declined to 67% (2Q19: 74%; 1Q20: 86%). EBITDA margin declined to 43% (2Q19: 48.9%, 1Q20: 54.5%) as the company incurred additional expenses worth RM11m in relation to Covid-19 pandemic.
Key highlights. 1H20 average asset utilisation rate improved to 75% from 70% in 1H19.
Against estimates: Below. 1H20 EBIT of RM37m made up 67% of our FY20F EBIT. We deem this as below forecast in anticipation of weaker 2H20 on lower drilling activities. Main deviation against our forecast stemmed from lower utilisation rate and higher depreciation charges and effective tax rate.
Outlook. Capex and opex cut by oil companies has resulted in lower drilling activities. Currently, only 5 out of Velesto’s 7 rigs (implies max utilisation of 70%) are working with some contracts expiring in the next few months.
Earnings revision. We cut our FY20F/FY21F/FY22F earnings forecast by 856%/70%/142% (Table 2) as we revise lower our utilisation rate and increase depreciation and tax expenses. We now estimate the company to record loss after tax of RM62m/RM76m/RM94m in FY20F/FY21F/FY22F.
Our call. Maintain HOLD on the stock with lower TP of RM0.16 (from RM0.17) which implies 0.5x FY20F P/B. We think the company has low liquidity risk based on its low gearing ratio of 0.37x while the next bullet debt payment may only come due in 2022.
Source: BIMB Securities Research - 26 Aug 2020

>20mil shares traded :)

Dalam bulan march 2020 (MCO/PKP) dari 31sen kepada 9sen dan naik kepada 19sen(tertinggi) bulan april 2020 walaupun harga minyak dalam bulan april 2020 jauh lebih rendah daripada harga terkini.




Velesto Energy Bhd (VELE)


VELE Historical Data

Time Frame:
11/22/2018 - 11/11/2020


Date Price Open High Low Vol. Change %
Nov 20 0.125 0.110 0.130 0.105 93.43M 8.70%
Oct 20 0.115 0.125 0.135 0.110 327.82M -11.54%
Sep 20 0.130 0.145 0.155 0.125 844.75M -10.34%
Aug 20 0.145 0.140 0.175 0.135 1.90B 3.57%
Jul 20 0.140 0.150 0.160 0.140 1.13B -3.45%
Jun 20 0.145 0.160 0.185 0.145 2.06B -6.45%
May 20 0.155 0.145 0.190 0.125 3.57B 6.90%
Apr 20 0.145 0.115 0.190 0.115 2.70B 26.09%
Mar 20 0.115 0.280 0.310 0.090 2.21B -61.67%***********31sen bulan MCO
Feb 20 0.300 0.330 0.375 0.290 376.55M -13.04%
Jan 20 0.345 0.380 0.410*** 0.340 668.56M -9.21% HARGA TERTINGGI TAHUN INI 41sen**************************

Now, urusharta dah tiada lagi senang untuk m&a bagi velesto. Jikalau Sapura yang lebih besar acquire velesto, harga naik bukan? :)

The next potential merger is between Sapura Energy and Velesto. Other than PNB as major shareholder in the two companies, Velesto is also owned by Urusharta Jamaah with a 5.3% stake while EPF has a marginal 2.3% holding, making the total shareholding of the three shareholders at 54.2%.

Sapura Energy is 2.8% owned by KWAP and hence the combined stake together with PNB is 42%.

A merger between the two will result in a combined entity with total market value of about RM2.66bil. Not very big in the scheme of things but the merger of two companies in similar business does make sense.

velesto has carried out capital reduction to remove accumulated losses in the past. For the 1st half, overall it was profitable. As such, velesto can declare dividend from now.