With latest disposal of on line education, the NTA is further increase by RM1.30 and improve latest NTA to around RM11.10. If share price trade atRM3.00, it is 72% discount from its NTA.
This share is truly undervalue even if it is trading at RM5.50 (-50%), at RM7.70 (-30%) discount against NTA . Since 80% of its business is in Australia, it is better take private and float in Australia to unlock its true valuation.

Hopefully the Special Dividend will announce with completion of On-Line Education disposal deal with KKR.

Some major corporate exercise coming ??

1) Special Dividend distribution ?
2) Share Buy Back by company to reduce freefloat shares in market and follow By General Offers by Major Shareholders to take the Company private and Delisted.
Based on NTA of RM10.00+, any attempts to take the company private will have to increase the offer at least few times higher from current level.

All is possible. Just wait to see what come next...

Remark :-
SBB is very consistent and remarkable move by Company and openly tell the market it is Highly undervalue against the fundamental of company which can turn into Net Cash by simply dispose one of the Investment, Please bear in mind that the company has not do any revaluation on its assets and landbanks for many years. Most land assets were bought 20 to 30 years ago.
80% of company's business revenue earner is in Australia and Leiisure Farm is owned by Mulpha International Berhad.

For the 12 months ended Dec 31, 2020, its net profit dropped 96% to RM1.1 million from RM30.04 million a year earlier, while revenue fell 18% to RM239.52 million from RM290.49 million. No dividend was declared in its results announcement today.

The profit achieved was due to reversal of impairment losses of RM17.9mil. In actual case, it incurred losses of RM2.7mil for the quarter.

Dnex : The Next and Only Semicondutor Stock.. All technology Stocks in Malaysia are Billions in market capital. So Dnex will definitely be joining Billion Market Cap companies soon.

Look at Hibiscus Oil & Gas > 90% earnings from 50% owned Anasuria. Market Capital more than RM1Billion ( Dnex owned the other 50% of Anasuria via 90% owned Ping Petroleum)

UWC .. Market Capital around RM7Billion. Can you imagine it ?

DNEX : The NEXT Penny Gem & Superstar In Making
2021 Dnex will be OUTPERFORM the market with Rally in Oil & Gas and Shortage of Wafer Chips
The Up & Coming SuperStar is definitely Dnex, The only Wafer Fab Player, FrontEnd Supply Chain in Semiconductor Play That will appear in major Fund Manager's Radars and Upgrade by analysts are all Coming in TOGETHER Soon..

Current price is very low n attractive

DNEX is a well Diversified Group with 3 Pillars of Business Segments
1) Oil & Gas +
2) Semiconductor +
3) Information Technology System

DNEX (via recent acquisition of 90% interest in Ping Petroleum) and Hibiscus co-owned Anasuria UK. Hibiscus 90% earning derives from Anasuria UK and the market cap is RM1.1Billion. Based on this OIl & Gas valuation alone, DNEX should be worth 55 cts (exclude Semiconductor and IT (National Single Window).

Semiconductor Running Fire SuperFat Valuation
UWC's market cap is RM7Billion with asset value less than RM250mil and is involve in metal fabrication and machining works. Silterra wafer fab business should worth more as current market shortage will provide better profit margin and order visibility and sustainability.

Semiconductor sector is one of the hottest market among technology sector. The EV market is driving the huge demand jump for wafer chips. Dnex is just perfect right in timing by venturing into Wafer Fab business. The outlook and prospect is so great and don't be surprise in very short time period Dnex will be graduating from Penny Stock Category and join the Billion Dollar Market Capital Club soon.

With involvement of China JV partner in Silterra, the production capacity will be fully taken up and oversold for next few years due to robust demand from China automotive and IoT application. The 3 key challenges of this business is fully taken care of, that is MARKET, TECHNOLOGY and FUNDING. The only outcome is Turnaround, Efficiency and Profitability ahead.

If Metal Fabrication business is worth RM7Billion, Dnex forays into Semiconductor Wafer Fabrication business should worth more.

Remark :
50 Cts : Market Cap RM1Billion
RM 1.00 : Market Cap RM 2Billion
RM 1.50 : Market Cap RM 3Billion
RM 2.00 : Market Cap RM 4Billion
RM 3.00 : Market Cap : RM 6Billion

SilTerra is a 200mm semiconductor wafer foundry, offering CMOS fabrication processes for integrated circuits (ICs) in Advanced Logic, Mixed Signal & Radio Frequency and High Voltage applications.


https://semiengineering.com/200mm-demand-surges/

A surge in demand for various chips is causing shortages for select 200mm foundry capacity as well as 200mm fab equipment, and it shows no signs of abating in 2021.

Foundry customers will face a shortfall of 200mm capacity at select foundries at least in the first half of 2021, and perhaps beyond. Those customers will need to plan ahead to ensure they obtain enough 200mm capacity in 2021. Otherwise they could get locked out of the market altogether, or may need to pay a premium for that capacity.

The 200mm market is a sizeable business for device and equipment makers alike. More than 200 fabs in operation worldwide today produce chips using 200mm (8-inch) diameter wafers. Chipmakers use these 200mm fabs to manufacture chips based on mature processes, ranging from the 350nm to the 90nm nodes. Analog, display drivers, power management ICs (PMICs), and RF devices are among the chips produced in 200mm fabs.

Many of these devices aren’t manufactured in today’s state-of-the-art 300mm fabs. The 300mm fabs are used to process the most advanced chips, although they also manufacture devices at mature nodes from 65nm to 28nm.

From there, the 200mm and 300mm fab markets are subdivided into two categories — integrated device manufacturers (IDMs) and foundries. IDMs design their own name-brand chips and manufacture them in their own fabs. Foundries manufacture chips for other companies in their own fabs at competitive prices. Most foundries have both 200mm and 300mm fabs.

Reference is made to the Company’s announcements dated 21 January 2021 and 22 January 2021 in relation to the above.

The Board of Directors of DNeX wishes to announce that Khazanah Nasional Berhad (“Khazanah”) had, on 5 February 2021, informed DNeX and its strategic partner (“Consortium”) that it has accepted the bid by the Consortium led by DNeX for the proposed sale of the entire issued share capital of SilTerra by Khazanah, subject to the signing of a definitive agreement.

Acceptance of the bid is still subject to strict confidentiality with Khazanah and no further details of the bid can be publicly disclosed until the signing of the definitive agreement.

The Company will make the necessary announcements on a timely basis in accordance with the Listing Requirements when there is any material development arising from the above event or when the definitive agreement has been entered into.

This announcement is dated 8 February 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3127401

If Silterra deal confirm, Dnex may limit up and go above RM1.00 soon

Tomorrow sure break the roof... 30 cts

Time to accumulate BAT... Earning Play, Deep Value and Dividend Yield

Kenanga Set RM11.05 since October 30, 2020, But, Affin Hwang having TP of RM16.20.

https://www.thestar.com.my/news/nation/2020/12/31/holy-smokes-rm25mil-of-ciggies-seized-by-marine-police

The drop in illicit cigarettes and introduction of Vuse E-Cigarette will improve Topline & Bottomline of BAT. I believe it is STRONG double digit growth for 2021 & 2022.

https://codeblue.galencentre.org/2020/12/16/ahmad-maslan-moots-rm8-cigarette-packs-to-fight-black-market/

Will Government implement RM8 Cigarette Pack soon ?
If yes, BAT share prices will fly.

Fresh News .. Sign of Price Solution of RM8.00 Cigarette Pack Implementation soon

https://www.nst.com.my/news/nation/2020/12/652714/narrow-price-gap-between-legal-and-illicit-cigarettes-says-ahmad-maslan

AT the recent Dewan Rakyat sitting, Datuk Seri Ahmad Maslan suggested conducting a two-year pilot programme to allow tobacco companies to sell legal cigarettes at RM8 per pack.

The Pontian member of Parliament and secretary-general of UMNO suggested halving tobacco taxes to curb the black market. The suggestion was met with agreement from the Retail and Trade Brands Advocacy Malaysia Chapter (RTBA Malaysia), a non-governmental organisation safeguarding supply chains and brands from criminal conduct.

Ahmad Maslan also said that Malaysia has the largest tobacco black market globally, accounting for 64 per cent of the market share.

Malaysia loses about RM5 billion in tobacco tax revenue every year, seeing as how cigarettes often vanish in Malaysia during the transshipment process before they get re-exported to another country.

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Address price gap to stop tobacco black market, says RTBA
The managing director of RTBA's Malaysia, Datuk Fazli Nordin stated, "The Malaysian Government has made the bold move to address the tobacco black market in Budget 2021.

"Several initiatives including strengthening the multi agency task force (MATF) with the participation of Malaysian Anti-Corruption Commission and National Financial Crime Centre as well as announcing restrictions on cigarette transshipment activities will help address the supply chain route for the tobacco black market to a certain extent," he said.


He added, "Nevertheless, the core factor driving the illegal cigarette trade is the wide price gap between legal and illegal products resulting in the current critical level of illegal cigarettes in Malaysia. There are international and local studies that support this."

A recent report by the Australian Parliamentary Joint Committee on Illicit Tobacco Market has acknowledged that Australia's price-based policies to control tobacco have been counter-productive.

According to KPMG's annual "Illicit Tobacco in Australia" report, following a 12.5 per cent ad hoc excise increase in May 2016, Australia's illicit tobacco had increased significantly from 14 per cent of the market in 2018 to over 20 per cent in 2019.

The Parliamentary Joint Committee report also revealed that in 2018 and 2019, a total of 633 tonnes of illicit tobacco were seized, which set a new record.

"Clearly, the numbers speak for themselves," Fazli commented with regards to RTBA's own "Illicit Tobacco in the Asia-Pacific Region: Causes and Solutions" report that was published in April 2020, which showed that the sales of illegal cigarettes in Malaysia rose from 37 per cent in 2015 to 65 per cent in 2020. This increase came following a substantial excise hike on legal products in 2015.

Fazli added, "As such, Datuk Seri Ahmad Maslan is spot-on in identifying excise reforms as a solution that can best complement the enhanced enforcement initiatives put in place in Budget 2021 to tackle the tobacco black market in a comprehensive manner."

Besides that, Fazli also said that there are tax experts who have agreed with this idea.

Recent newspaper reports have shown that the chairman of Tricor Malaysia, who is also the current president of the Malaysian Institute of Accountants, Dr. Veerinderjeet Singh, has proposed to allow tobacco companies to introduce a new product, taxed at a lower rate via a new excise tier.

In reference to Dr. Veerinderjeet's idea, Fazli said, "This will create a lower segment of legal cigarettes that can viably compete with illegal cigarettes based on price.

"RTBA Malaysia believes that this solution can effectively curtail the tobacco black market from a demand-driven perspective," he concluded.

https://www.malaymail.com/news/malaysia/2020/12/24/narrow-tobacco-taxes-to-curb-black-market-says-rtba-malaysia/1934696

I heard VFM KYO cigarette out of stock in many retail outlets.. True ?

BAT's Value For Money (VFM) Cigarette Brand KYO existing selling price per Pack for 20 sticks is RM12.00. Based on YB Datuk Ahmad Maslan proposal in Parliament yesterday, Government is planning to roll out RM8. 00 per 20's Pack by reduce tax 20 cents tax per stick (20 sticks X 20 cts = RM4.00 tax reduction) for KYO Brand Cigarette or other similar price category cigarettes brand.

Eventually, BAT's KYO will be used by Government to combat illicit Black Market cigarettes and fixed the selling price at RM8.00 per pack for Two Years trial period. For year 2020, illicit Black Market cigarettes controlled two-third or 65% of Total Available Market Share in Malaysia. Malaysia is ranked world number 1 in illicit Black Market cigarettes with 12.5 Billion sticks cigarettes without paying tax( Government impose 40 cents per sticks or RM5Billion tax revenue loss).

Just imagine the current scenario Government is facing now:
1) Loss in Cigarettes Tax Revenue of RM5 Billion or 2) 65% Market Share or Equivalent to 12.5 Billion Cigarette Sticks Per Year 3) Equivalent of 625 million Packs of 20 Sticks in Cigarettes.
4) 625 million Packs at RM8 per pack is equivalent to RM5 Billion new market opportunities for Registered n Legal Cigarettes Companies in Malaysia.

British American Tobacco (BAT 4162) controls more than 50% cigarettes market shares in Malaysia is likely to be Main Beneficiary if Government is implementing RM8 Per Pack Policy as suggested by YB Datuk Ahmad Maslan in Parliament yesterday.

Based on low case scenario at 50% market share, the RM8 policy will boost additional revenue of RM2.5Billion (312.5 million Packs for KYO) for BAT or 100% revenue increase based on current quarterly revenue of RM650mil. Based on 11% net profit margin, BAT has potential to double the PAT to RM500mil or approximately RM1.80 per share.

With current share price of RM14.26 which is consider very low (or P/E 8 times if RM8 policy being kick off by 2021) and highest Dividend Yield (minimum 20 cents per quarter or 80 cents per year) stock in Bursa Malaysia, BAT has great potential to be one of the Best Performing Stock in 2021. BAT's historical high was RM70 per share and because of erosion of market shares and shut down manufacturing plant in Malaysia. With increase market share of conventional cigarettes and launching of Vuse E-Cigaretted soon, we may see returning of BAT to restart their manufacturing operations here in Malaysia soon.

Don't miss the golden opportunity, it might limit up due to limited free float of shares in market.

https://www.themalaysianinsight.com/chinese/s/290222

降低烟价打击私烟 阿末马斯兰建议降至8令吉

巫统笨珍国会议员阿末马斯兰建议，政府通过降低香烟税和降低价格的方式来打击国内横行的私烟。

他提议，政府或能够让某一家注册的香烟公司，让其价格降到8令吉，将税务减半作为试行计划。

“我们让一家合法的公司价格定在8令吉，税务减半，才能够把价格降下来。然后让这个合法的香烟以一个更相似的价钱，能够和私烟对抗。”

他强调，这是为了不让政府因私烟问题而失去香烟相关的税收。


他在国会下议院辩论2020年关税局（修正）法案时引述一项报告，指我国每年因香烟逃税而亏损50亿令吉的收入。

“大马有128亿根香烟被使用，这是来自私烟。而合法的香烟，则是72亿根。”

他说，这显示国人所抽的香烟中有64%为私烟，而只有36%为合法和纳税的香烟。

他提出，目前我国征税的香烟价格介于17令吉40仙至12令吉，而非法的烟则8令吉至2令吉。

“有些包装是5根装，这些私烟很危险，可能被我们的学生们所购买。”

他说，一项报告指大马是全球最大私烟市场，而私烟拥有更多的尼古丁含量，没有健康标示或是生产规范，因此此事对我国是个安全威胁。

他说，这些私烟是在转运的过程中消失，并希望未来不再重演。

财政部副部长阿都拉欣巴克里则提出，关税局有常年采取行动来打击私烟，包括和其他的执法机构展开合作。

他说，关税局也和其他国家和国际组织合作，包括和印尼一同打击马六甲海峡的私烟行为。

阿都拉欣巴克里也说，我国也会安排在关卡进行检查，确保申报的正确性。

“政府也在2021年财政预算案中提出了停止部分码头的香烟转运，以打击私烟。”

https://www.theedgemarkets.com/article/budget-2021-win-tobacco-industry#:~:text=The%20tobacco%20black%20market%20not,65%25%20of%20the%20total%20market.

AFTER a long wait, Budget 2021 is one that the tobacco industry should be pleased with. It appears that the government is getting serious on cracking down on the smuggling of high-duty goods, in particular illegal cigarettes.

At the tabling of the budget, the finance minister announced that the Multi-Agency Task Force will be strengthened with the participation of the Malaysian Anti-Corruption Commission and the National Anti-Financial Crime Centre. He also outlined several measures that would help to reduce the number of illegal cigarettes in the country.

These include a freeze on the issuance of new import licences for cigarettes, tightening the renewal of import licences for cigarettes, limiting transshipment of cigarettes to dedicated ports, imposition of tax on the import of cigarettes with drawback facilities for re-export, disallowing transshipment of cigarettes and re-export of cigarettes by small boats, and making cigarettes and tobacco products taxable goods at all duty-free islands and any free trade zones that have been permitted retail sales of duty-free cigarettes.

British American Tobacco (M) Bhd (BAT) managing director Jonathan Reed says he is thankful to the government for acknowledging the severity of the tobacco black market and for taking bold steps towards addressing this issue. “High taxes on legitimate cigarettes have created a huge demand for cheap, illegal cigarettes. The tobacco black market not only causes the loss of billions of ringgit in uncollected tax, it also funds crime, fuels corruption and drives up the youth smoking rate.”

Notably, Malaysia ranks No 1 in the world for illegal cigarettes, which make up 65% of the total market. While illegal cigarettes have increased over the years, excise duty collection for tobacco products has declined from RM3.42 billion in 2014 to RM2.91 billion in 2018.

Japan Tobacco International Bhd managing director Cormac O’ Rourke comments that the company is pleased with the announcement that cigarette transshipment activities will be limited to certain ports only. “We have called for a ban on transshipment of tobacco products time and again as this loophole has been exploited for years. At a time when the country is grappling with high levels of illegal trading, strong and consistent implementation and effective enforcement is key. These are necessary measures to address a key smuggling channel for contraband cigarettes, which has resulted in massive losses for the country over the years,” he says.

However, the biggest win for the industry, some say, is the legalisation of electronic and non-electronic cigarettes, including vape. Beginning Jan 1, 2021, the government will impose an excise duty of 10% on all types of electronic and non-electronic cigarettes, including vape, while excise duty of 40 sen per milliliter will be imposed on the liquid used in electronic cigarettes.

“The legalisation of electronic and non-electronic cigarettes, including vape, is a win for BAT. It will now be able to enter the vape market,” says CGS-CIMB Research analyst Kamarul Anwar, who covers BAT.

Interestingly, neither company commented on the legalisation of the e-cigarette and vape market. Nevertheless, O’ Rourke points out that what is critical now is for the government to speed up proper enforcement laws and the implementation of various key anti-illicit tobacco measures to better address the situation.

Meanwhile, Reed believes that measures to enhance enforcement must be accompanied by excise reforms to really make an impact on the tobacco black market. “The price gap between legal and illegal products is currently far too wide, creating a situation that enforcement alone cannot address. Ultimately, we believe Malaysian consumers want to do the right thing. If given a viable opportunity to choose a legal alternative at a reasonable price, most would prefer not to put money in the hands of criminals,” he says.

KYO will drive BAT Profit Higher


https://www.thestar.com.my/business/business-news/2020/10/28/kyo-lifts-cigarette-firm-bat-malaysia-sales-in-q3

KUALA LUMPUR: British American Tobacco (Malaysia) Bhd said its sales in the third quarter grew at a faster pace than the industry, boosted by demand for newly introduced cheaper brand KYO.

"Overall, BAT Malaysia recorded a growth in Q3FY2020 outperforming the legal domestic industry with a growth of 14% compared with Q2FY2020 mainly due to Dunhill and the introduction of KYO," it said in a filing with Bursa Malaysia today.

BAT Malaysia's market share stood at 52.5%, a 1 percentage point increase compared with the preceding quarter, driven by KYO and reinforced by Dunhill’s consistent leadership within the premium segment.

Sales jumped to RM627.5mil in the three-month ended Sept 30 from RM584mil a year ago.

Net profit was RM63.7mil, or 22.3 sen a shares, down from RM83.1mil (29.1 sen share) previously.

Good Investment

https://www.reuters.com/article/brit-am-tobacco-outlook/british-american-tobacco-sees-2020-revenue-at-upper-end-of-forecast-idINL4N2IP1N8

Dec 9 (Reuters) - British American Tobacco raised its forecast for 2020 revenue on Wednesday as the hit to cigarette demand from the COVID-19 pandemic was smaller than feared.

The world’s second-biggest cigarette maker, with brands like Dunhill and Lucky Strike, said it expects adjusted revenue growth on a constant currency basis to be at the upper end of its previous forecast of 1% to 3% in 2020. (Reporting by Martinne Geller in London and Yadarisa Shabong in Bengaluru; Editing by Ramakrishnan M.)

KUALA LUMPUR (Dec 9): Affin Hwang Capital has upgraded British American Tobacco (Malaysia) Bhd (BAT) to a buy from a sell, and revised up its target price by 76% to RM16.20 from RM9.20, as it believes BAT's earnings could have likely bottomed out this year. The new target price of RM16.20 implies a potential 16% upside to BAT's current stock price of RM13.96.

The research house's analyst Chow Wei Nien said in a note today that BAT's value-for-money (VFM) offerings have by and large seen a good traction, and are poised to provide a steady earnings base for the group moving forward.

According to Chow, the previous two quarters saw BAT's domestic volume increase 15%/14% quarter-on-quarter (q-o-q) for the second quarter of financial year 2020 (2QFY20)/3QFY20, outpacing the industry's growth of +10%/+7% q-o-q, and this led to a market share gain of 2.1 percentage points to 52.5% over the period.

"Much of the volume improvement could be attributed to VFM offerings, Kyo and Rothmans, which garnered strong traction on the back of increased down-trading towards more economical variants.

"Notwithstanding the lower-margin nature of VFM offerings, we expect the growing volume sales to offset the lower profitability, and support sequential earnings improvement," he said.

He also noted pronounced measures laid out in Budget 2021 are likely to remain supportive of BAT near-term sentiment.

According to Chow, limiting the transhipment of cigarettes to dedicated ports and the initial imposition of import taxes are seen as keys to eliminate a major loophole in the tobacco black market.

"It is believed that 30% to 40% of illegal volumes are brought in via transhipments. Hence, if successfully executed, a blue-sky scenario would imply an elimination of almost about 4.5 billion illegal cigarette sticks per year."

"For every 1% reduction in illicit volumes, we estimate an increase in the 2021 net profit of around 3%," he said.

He also revised higher BAT earnings forecasts for 2021 to 2022 by 9% to 18% to RM271.4 million to RM282.4 million, to input higher VFM volume sales.

"Since the announcement of Budget 2021, BAT's share price has appreciated by about 37%, largely as investors have turned more upbeat on prospects of better control of the illegal tobacco market," he said, adding that he foresees further upside for BAT from the current juncture.

BAT's stock is down four sen or 0.3% today to RM13.96.

Joyce Goh

https://www.theedgemarkets.com/article/affin-hwang-capital-upgrades-bat-buy-ups-target-price-76-rm1620?type=malaysia

BAT confirms it will enter Malaysian vape market once regulatory framework firms up — CGS-CIMB

https://www.theedgemarkets.com/article/bat-confirms-it-will-enter-malaysian-vape-market-once-regulatory-framework-firms-%E2%80%94-cgscimb

https://www.thestar.com.my/business/business-news/2020/05/15/bat-to-bank-on-promising-e-cigarette-market

According to UOB Kay Hian Malaysia Research, the addressable vaping market is significant and BAT UK’s existing line-up of products could be well received locally.

“Based on device prices being sold in the UK, it appears affordable, ranging between RM53 and RM80.

“Meanwhile, the refills are likely to be priced at a range aligned to conventional cigarettes, at RM12.40 to RM17.40.


“Notably, the potential bottom-end range would not be at a large premium to existing illegal vape refills that are sold at about RM9, even without factoring in the element of excise duty on vaping and e-cigarettess, ” said UOB Kay Hian.

There are delays to the initial expectation for the Health Ministry to table the regulation on the usage of vape and e-cigarettes by March 2020.

UOB Kay Hian expects some form of regulation surrounding the usage of vape and e-cigarettes by 2021.

“Given the affordability of the devices and potential narrow premium in legitimate vape refills by BAT compared to illegitimate refills, we think BAT’s vape products could offer credible genuine competition to existing illegal vape and e-cigarette alternatives.

“It should not be overlooked as the illegal vaping landscape’s size is close to 40% of the legal cigarette industry, ” said UOB Kay Hian.

As such, the research house believes that investors would look beyond BAT’s earnings blip in the first half of 2020.

https://trialsitenews.com/british-american-tobacco-giant-enters-covid-19-vaccine-race-with-tobacco-plant-platform/

https://journalnow.com/business/bat-awaits-fda-approval-to-begin-covid-19-vaccine-trial-by-reynolds-subsidiary/article_1bbd222e-b7cf-5d2b-a120-88c6abdede93.html

BAT said on May 15 that “the potential vaccine has been shown to produce a positive immune response.”

“As such, the vaccine candidate is now poised to progress to the next stage, which will be Phase 1 human clinical trials pending FDA authorization.”

Phase I trials are designed to determine the best dosage of a drug. If a drug is found to be safe enough for patients, it can be tested in a phase II clinical trial.

“We have submitted our pre-investigative new drug package to the FDA, (which) has acknowledged its submission whilst our correspondence with other government agencies around the world continues,” BAT said May 15. “We are hopeful to receive further feedback in the coming weeks.”

The FDA has said that “generally (it) cannot confirm or deny the existence of or comment on any pending investigational new drug applications.”

“Vaccine development is challenging and complex work, but we believe we have made a significant breakthrough with our tobacco plant technology platform and stand ready to work with governments and all stakeholders to help win the war against COVID-19,” said Dr. David O’Reilly, BAT’s director of scientific research.

Hugh Haydon, Kentucky BioProcessing’s chief executive, told Politico in February that “people can be cynical. But the fact is that we might be able to help.”

BAT is not pure tabacco company : It is into CoviD Vaccine development and E-Cigarette.
We should see more news coming on Vaccine Progress soon
The Vaccine Play is Too Huge, Massive and Impactful on share price when the final details approved by FDA.

https://meaww.com/coronavirus-cigarette-makers-using-tobacco-plants-to-develop-vaccine-covid-19

BAT and Philip Morris claim they're developing 'faster and safer' coronavirus vaccine using tobacco plants

KUALA LUMPUR (Dec 4): The share price of British American Tobacco (Malaysia) Bhd (BAT) has jumped 26% in just a month to its highest in six months, which saw the only listed tobacco manufacturer on Bursa Malaysia adding over half a billion ringgit during the period to its market capitalisation, which now stands at RM3.62 billion.


The stock was the fourth largest gainer by value on Bursa Malaysia yesterday. It rose as much as 7.97% or 96 sen in the morning, before paring some gains to finish at RM12.66 — still up 5.15% or 62 sen from Wednesday's close.

From the trough of RM8.80 on March 23 of this year, the counter has climbed 43.9%. Still, it is down 10.1% year-to-date, from when it was trading at RM14.08.

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Once trading at its all-time high of RM52.61 in 2014, BAT has been hovering below the RM20-level since August 2019, as its earnings declined amid a continued contraction of the legal cigarette market.

The recent rally in its share price, however, has pushed the stock past analysts’ consensus target price (TP) of RM11.08 by 14.3%, with the stock surpassing the TP of 12, out of 14 research houses that cover it, according to Bloomberg data at market close yesterday.

The stock currently has five 'Buy' calls, seven 'Holds', and two 'Sells', according to Bloomberg.

In terms of valuation, BAT is trading at a trailing 12-month price-to-earnings (TTM P/E) of 13.55 times, compared with 11.54 times at the beginning of this year. Still, it is cheaper when compared with its five-year average P/E of 14.68 times.

And with an indicative dividend yield of 7.03%, BAT would be deemed attractive by investors who look for dividend stocks.

Potential earnings upside seen on more effective enforcement activities
In its latest note to clients, CGS-CIMB Research raised its earnings forecast for financial year 2021 (FY21) and FY22 by 4%-5%, as it increased its sales assumptions on BAT's flagship Dunhill and its value-for-money brand Kyo, as sales rebound following the supply disruption seen under initial phases of the movement control order period.

"There could be potential upside to our forecasts. For one, our revised aggregate sales growth of 4% year-on-year for FY21 may be conservative if the Royal Malaysian Customs Department can effectively clamp down on cigarette transshipments next year. Our 3% y-o-y sales growth assumption for Dunhill will not bring back its FY21 sales volume to pre-MCO levels. It is inevitable that more smokers will down-trade or switch to vapes.

"But BAT will be in for a treat, if Dunhill’s sales can grow at a bigger clip than what we have pencilled in. As expensive as Dunhill is, the demand seems to hold steady among the higher-income, older smokers that have associated the brand with “prestige” and “quality”. The group said Dunhill held circa 55% of the legal premium cigarettes’ market share year-to-date," its analyst Kamarul Anwar wrote.

Kamarul also raised his TP on BAT to RM17.48 — representing 38.1% upside from the current closing price — from RM12.65 previously, with an unchanged 'Buy' call, mainly due to the upward revision in BAT’s long-term growth rate to 3% from 1%, on the back of improving sales prospects. At the time of writing, this TP revision is the highest seen among those who cover the stock.

Optimism on the tobacco manufacturer’s prospects came after the government announced measures under Budget 2021 to strengthen enforcement against the illegal cigarette trade, including the bolstering of the Multi-Agency Task Force with the participation of the Malaysian Anti-Corruption Commission and the National Financial Crime Centre to combat the black economy.

The government would also be looking at limiting transshipments of cigarettes to dedicated ports, as well as imposing a tax on the import of cigarettes with drawback facilities for reexport.

The transhipment of cigarettes and the reexport of cigarettes by small boats would also be disallowed, according to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz when reading out the budget speech, with such products only allowed to be transported in internationally recognised intermodal containers.

In addition, he said the government would be tightening the renewal for cigarette import licences through a review of licence conditions, including the imposition of import quota.

Malaysia's illegal cigarette trade reached a new all-time monthly high of 64.5% in August from 62% a month prior, according to the latest Illicit Cigarettes Study (ICS) by the Confederation of Malaysian Tobacco Manufacturers (CMTM).

Tan Choe Choe

https://www.theedgemarkets.com/article/after-pushing-past-consensus-target-26-jump-past-month-will-bat-continue-climb

...

Kamarul also raised his TP on BAT to RM17.48 — representing 38.1% upside from the current closing price — from RM12.65 previously, with an unchanged 'Buy' call, mainly due to the upward revision in BAT’s long-term growth rate to 3% from 1%, on the back of improving sales prospects. At the time of writing, this TP revision is the highest seen among those who cover the stock.

BAT new TP set by Analyst at RM17.48..

Looking at BAT volume today, any price pull-back will be well absorbed by investors. We may see Gap-Up Opening tomorrow.

Illegal cigarettes market shares eroding very fast due to enforcement clamp down. No more Island duties free for cigarettes that contribute to smuggling actiivities. We should foresee minimum 60% jump in PAT by FY2021 as 1% market share gains will contribute to 6% additional profit for BAT bottomlines. The current 65% illegal cigarettes market shares offer huge upside potential for BAT.

The coming month will see new Impressive QR release by BAT. With increase of market shares and new Vape business segment, we should be able to see BAT's share price moving back to RM20.00 within 6 to 9 months.

Mida is offering very attrative incentives

https://www.thestar.com.my/business/business-news/2019/04/19/bat-to-consider-opening-another-malaysian-factory-in-longer-term

If BAT set up manufacturing base here, the profit will jump.

https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOBPMBZC

BAT makes progress on COVID-19 vaccine & provides community support

Our potential COVID-19 vaccine has been shown to produce a positive immune response and is poised to move to the next phase of testing.

Kentucky BioProcessing
Our efforts to address the impact of COVID-19
We are committed to creating A Better Tomorrow for all our stakeholders. We are continuing to evolve and build on the many initiatives we have in place to address the global impact of COVID-19.

Additionally, we are ensuring the well-being of our staff around the world and making sure our business continues to operate effectively in these challenging times, whilst providing many forms of direct support.

Vaccine development
In April, BAT announced that its biotech subsidiary, Kentucky BioProcessing (KBP), was developing a potential vaccine for COVID-19.

Since then, we have been completing pre-clinical testing and are pleased to report the potential vaccine has been shown to produce a positive immune response. As such, the vaccine candidate is now poised to progress to the next stage which will be Phase 1 human clinical trials pending FDA authorisation.

We have committed funds to conduct these clinical trials, which could start as early as late June, pending the responses from relevant health bodies. We have also invested in additional equipment to boost our manufacturing capabilities should they be needed.

We have submitted our Pre-Investigative New Drug package to the U.S. FDA who have acknowledged its submission whilst our correspondence with other government agencies around the world continues. We are hopeful to receive further feedback in the coming weeks.

Other forms of direct support
In addition, as our Chief Executive, Jack Bowles recently highlighted, we are contributing in several other ways including:

Loaning the UK government equipment from our R&D laboratory for use in COVID-19 testing centres
Utilising our 3D printers to make components that will be used in protective face shields
Donating funds to one of our suppliers to secure the manufacture of 25,000 more protective face shields
In several international markets, such as Brazil and Kenya, we’re using our distribution networks to ensure that medical and hygiene equipment reaches vulnerable communities
In Bangladesh, our factory is making a first batch of 60,000 bottles of hand sanitiser
In the U.S. specifically;
The Reynolds Foundation donated to the COVID-19 Response Fund for Forsyth County, N.C.
Our U.S. subsidiary partnered with North Carolina Gov. Cooper and the N.C. Department of Emergency Management donating N95 masks
Whilst also donating provisions to the King Outreach Ministry, a local crisis-intervention organisation
These global efforts are complemented by donations to emergency and disaster funds, supporting governments as they fight the pandemic on a national scale.

Evolving support
As the COVID-19 situation evolves, the type of support required globally, and in the communities where we operate, will undoubtedly change. BAT’s support around the world will flex and evolve, responding to the ever-changing needs that this crisis creates.

Calculation wrong...

Pity the numerous struggling and challengers face by Top Glove company, I sincerely hope the worst will get over soon.

https://www.malaysiakini.com/news/551950

The Health Ministry today reported 1,041 new Covid-19 cases as of noon today and three deaths.

Selangor reported the most number of cases with 402 new infections while Sabah registered 346 cases and Negeri Sembilan 121.

There were also 1,405 recoveries, which lowered the number of active cases.

Leading indicators:

Active cases - 12,854 ↓ (367 less than the previous day)
Patients in intensive care - 108 ↓ (two less than the previous day)
Intubated patients - 45 ↑ (three more than the previous day)
Deaths - 3
Of the new deaths, all three were in Sabah. They were two Malaysian men aged 62 and 78, while the third was a non-Malaysian woman aged 55.


Health Ministry director-general Dr Noor Hisham Abdullah said the rise in Selangor cases was due to a spike in the Teratai cluster (298 new cases).

The cluster is linked to workers employed by rubber glove manufacturer Top Glove.

GEORGE TOWN – At least six factories in Penang’s famous Bayan Lepas Free Industrial Zone have been forced to temporarily shut down due to Covid-19, Chief Minister Chow Kon Yeow revealed today.

Without disclosing their names, Chow said that the closures were necessary for screening and sanitisation of the premises where positive cases of Covid-19 were found.

The industrial area is a regional design and manufacturing hub for some of the world’s top electronic equipment companies.

“If they do not close down now, there would be a bigger price to pay," Chow told a press conference here.

He said that the manufacturing companies’ owners and management officials understand the gravity of the situation and that the closures are in compliance with standard operating procedures (SOP) of the Health Ministry to contain the pandemic.

“They are aware they need to comply. In fact, two weeks ago I already made a call for the factories to tighten the SOPs not only in the factory environment but also at the workers’ dormitories, their transportation (vehicles) and their workplaces.

“It is good for the state if the factories are stringent. If we were unable to control the spread, I think the damage could have been bigger and probably would have led to a complete lockdown,” he said.

Chow said this when he was asked to comment on the effect upon factories in Bayan Lepas in view of losses in production time running into the millions.

Several factories were ordered to close temporarily to facilitate their workers to undergo preliminary testing for the virus and get the premises sanitised.

Parts of Bayan Baru and Bayan Lepas were recently placed under the controlled movement control order (CMCO) to check the spread of the virus. It marked the first time in five months that a locality on Penang island was subjected to CMCO since the pandemic erupted in March.

Meanwhile,Chow said that Penang received RM1.5 billion in foreign direct investment (FDI) and domestic direct investment (DDI) in the third quarter of this year. Some 73% or RM1.1 billion came from DDI and the remaining RM401 million came from FDI.

“For the first time we have received RM 1.1 billion from DDI. The inflows from the third quarter brought Penang’s total approved manufacturing investments for the first nine months at RM10.6 billion,” – The Vibes, November 19, 2020

https://www.thevibes.com/articles/news/6588/six-factories-in-bayan-lepas-industrial-zone-shut-temporarily-following-infectio

If Teratai cluster getting worse, Will this happen to Top Glove factories ??

https://www.thestar.com.my/news/nation/2020/11/19/covid-19-selangor-records-407-new-cases-majority-linked-to-teratai-cluster

PUTRAJAYA: A Covid-19 cluster originating from a factory in Selangor has been the cause of more than half of new cases in the state.

On Thursday (Nov 19), Selangor is the second highest state with 407 new cases, behind Sabah which reported 660 new cases.

In a statement, Health director-general Tan Sri Dr Noor Hisham Abdullah said out of Selangor’s 407 new cases, 245 of them were attributed to the Teratai cluster linked to the factory in the state.