Better times ahead

Wah HaHaHa!!!
At last!!! KENANGA RESEARCH UPGRADED DAYANG
TARGET PRICE: 1.35


We upgrade DAYANG to MARKET PERFORM with a FD-TP of RM1.35, on possible earnings recovery in coming quarters, after disappointing losses in 1Q19. The company is also in active tenders for Petronas’ i-HUC contract, with forward earnings to be driven by current order-book of >RM3b. While corporate exercise is expected to mildly dilute share base (by ~20%), we believe any overhang will be short-lived given its
relatively palatable size.

Expecting better results.
After disappointing losses in 1Q19, we believe that DAYANG could stage a possible earnings recovery in its upcoming 2Q19 results. This is because the company could potentially see a surge in work orders, coming off on the back of a quiet monsoon season in 1Q19, coupled with an anticipated stronger utilisation for its offshore vessels. To recap, despite the losses in 1Q19, its offshore vessels’ utilisation actually surged to 36% (from 27% in 1Q18 and 24% in 1Q17), dragged only by its poorer-than-expected topside maintenance. Thus, it is likely to see a stronger vessel utilisation trajectory for the rest of the year, while the slower maintenance work orders in 1Q19 could also
mean a cascade of work flows to 2Q19.

Tendering for new contract.
Currently, the company is in active tender for Petronas’ I-HUC contract. The contract covers topside hook-up, commissioning, and maintenance works for Petronas, and carries a gross contract value of ~RM4b, with award date expected by end-2019. Given DAYANG’s industry-leading expertise in the offshore maintenance space, we reckon it is likely that the company could possibly win a portion of the gross contract, guesstimated at a value of ~RM1b. Meanwhile, current forward earnings will be largely underpinned by its existing orderbook of >RM3b after it successfully secured a slew of new 5-year PM-MCM contracts over last year.

Little overhang expected from rights issue.
To recap, the company had recently announced a series of proposed corporate exercises, entailing rights issue and private placement, to raise ~RM187m. While this is expected to tentatively dilute its share
base by ~20% (based on illustrative exercise prices), we feel that
any shares overhang, if any, could be short-lived given its relatively palatable size. This is also expected to lead to an interest savings cost of RM6.6m per annum.

Upgrade to MARKET PERFORM (from UNDERPERFORM previously), as we believe all negatives have been well priced-in (e.g. anticipated announcement of rights issue, and expected weaker 1Q19 results).

We raised our SoP-TP to RM1.35 (from RM0.80 previously), as we
(i) raised our FY19-20E earnings by 16-22% on better margins assumptions and lowered finance costs,
(ii) taking into account the fully diluted share-base post-corporate exercises, and
(iii) raising our PER valuations on topside maintenance to 15x (from
9x before) – in-line with sector average valuations. Our TP implies
PBV of 1.3-1.2x, and PER of 14-13x (in-line with 5-year average).

Risks to our call include:
(i) weaker-than-expected work orders,
(ii) weaker-than-expected vessel utilisation, and
(iii) poorer-thanexpected margins.

The Star, Wednesday, 3 Jul 2019:

As more oil and gas (O&G) fields in Malaysia and the region approach the end of their lifespan, the demand for decommissioning works is set to surge. The value of decommissioning contracts in the region, over the next three years, is expected to reach up to RM6bil, according to estimates by industry players.

UOB Kay Hian Research analyst Kong Ho Meng said while there have not been any large tenders awarded by Petroliam Nasional Bhd (Petronas), it expected contracts to be rolled out from next year. In Malaysia, he said, about 11% or about 35 of the over 300 platforms have been operating for over 40 years, and more than 200 wells have already been identified to be plugged and abandoned.

Decommissioning is a rapidly developing sub-segment in the O&G sector, which refers to works to safely dismantle and remove wells and platforms to prevent environmental damage. The growing requirement for decommissioning works relates to the commitment from oil majors to reduce their impact to the environment via late-life asset management.
There are two key services for decommissioning – well abandonment services and upstream facilities dismantling.....


According to UOB Kay Hian, other indirect beneficiaries from well abandonment works are Dayang Enterprise Holdings Bhd, Petra Energy Bhd, Icon Offshore Bhd, Perdana Petroleum Bhd
and Deleum Bhd

To qualify for facility decommissioning contracts, meanwhile, service players must have yard facilities, underwater and cutting services, and transport and heavy lifting services.
Under UOB Kay Hian’s coverage, the key beneficiary with the track record and assets to execute all these functions, he said, is Sapura Energy Bhd

In the report, he added that major offshore commissioning players like Dayang Enterprise and Petra Energy were also looking at opportunities in the decommissioning space.

Moving forward, as decommissioning is still in its infancy in the Asia-Pacific region, he said stakeholders and regulators involved would take time to prepare for the coming wave, with steep learning curves and potential costs for mistakes in the early stages.

Well said!

Posted by stkstudent > Jun 28, 2019 5:52 AM | Report Abuse

Btw, i sleep at 10.30 pm every night and wakeup at 5.30 am , to do my Tai-chi.
Yes, a good night’s sleep , exercise n a positive attitude in life, helps me to make money in punting stocks .
I still got good eyesight, dont wander into wrong forum and talk nonsense.
This is Gamuda stock forum in I3 , right ?
Sometimes, i cant help laughing out loud, at these sochai, who show their political boldness and wack at political leaders n govt, in the wrong forum !!
No wonder, they lose money and cannot sleep well .

Make money in stocks is easy, if one is not distracted by all these political nonsense.
Will Gamuda go up today ? If yes, BUY !
If not, move to another forum, where can make money .
One need to have a positive frame of mind , to know.
Do you know of any rich person, who is talk negative all the time ? No, right .
ONLY LOSERS DO THAT, ok , i understand why.

SCOMNET-WA Opened with good premium

Congratulation to shareholders that received the free warrants - good profit!

Source: Macquarie Research - 26 Jun 2019

Following the government’s bid to take over Gamuda’s toll road concessionaires, Macquarie Equities Research (MQ Research) reiterates its Outperform rating on this counter with a revised target price. With the latest development, MQ Research has further raised Gamuda’s order win prospects ahead of the Penang Transport Master Plan (PTMP) kick-off.

Event
MQ Research reiterates its Outperform rating on Gamuda with a revised target price (TP) of RM4.30 (16x implied forward price to earnings (PE)) following the government’s bid to take over Gamuda’s toll road concessionaires. While the acquisition is subject to cabinet approval, MQ Research believes the transaction will receive a greenlight from shareholders, given that the acquisitions were priced at RM1bn above Gamuda’s book values attributed to the toll roads.
MQ Research believes by purchasing the toll roads the government is also indirectly funding the working capital needed to commence the PTMP project. MQ Research therefore has further raised Gamuda’s order win prospects ahead of the PTMP kick-off.

Impact
Toll road divestments brings RM2.36bn cash to Gamuda – special dividend on the cards? The equity value attributed to Gamuda from the toll road divestments will bring a total cash amount of RM2.36bn to Gamuda by 1HFY20E – this is in line with MQ Research’s valuations of the toll roads at RM2.24bn. MQ Research believes Gamuda will consider to declare a special dividend following these divestments, especially after failing to do so post the Syarikat Pengeluaran Air Selangor (SPLASH) sale to the government about a year ago for an initial fee of RM1.9bn. MQ Research baked in a special dividend of 15sen/share in FY20E following these divestments.

Another notch for PTMP. Note that Gamuda and the Penang State government are required on a best-effort basis to raise up to RM1.5bn each to kick off the PTMP project. MQ Research believes Gamuda will carve out RM1.5bn from the sales proceeds of RM2.36bn for this purpose. Against this backdrop, MQ Research has finally included PTMP in its order win estimates, since the PTMP was launched in 2016.
On top of a potential RM5bn tunneling works, MQ Research estimates Gamuda will get a 3% project delivery partner (PDP) fee from the Phase 1 of the PTMP, which includes reclamation works, LRT and Pan Island Link 1 (PIL1) projects – with an estimated combined costs of RM15bn-20bn. MQ Research estimates PTMP to bring meaningful contributions to Gamuda’s order wins starting in FY21E onwards.

Earnings and Target Price Revision
Removed Gamuda’s toll road earnings estimates starting from 3Q20E onwards. While FY19-22E earnings per share (EPS) were revised by -3%/-24%/-10%/-13%, respectively, the TP was raised to RM4.30 on higher order win estimates.

Price Catalyst
12-month price target: RM4.30 based on a Sum of Parts methodology.

Catalyst: Positive announcements from the PTMP project

Action and Recommendation
Outperform rating reiterated.

12-month Target Price Methodology
GAM MK: RM4.30 based on a Sum of Parts methodology

"Sokong" your views, @MingGoon


Posted by MingGoon > Jun 25, 2019 11:02 AM | Report Abuse

Gamuda from RM3.54 to RM3.64 this morning only,
What else you need to believe, except believe in this Golden Egg of Top Construction Company in Malaysia

If Gamuda fail, what other construction company in Malaysia can make it.
So buy Gamuda sure win , that is the only logic explanation

Agree with Cocqueen...
Good for KPS, sell Sprint and refocus on better business


Posted by cocqueen > Jun 24, 2019 9:36 AM | Report Abuse

is positive for kps bcoz current price did not factor in any thing from sprint, sprint has been a losing money business....and now there is talk that gamuda may reject the deal paving way for a higher offer coming ahead

Based on Gamuda’s effective interest in these toll highways, the group expects its share to be RM2.36 billion, which is equivalent to 96 sen per share, from the divestments. Gamuda share price closed at RM3.83 on Friday.

Well said, @Probability

There are many possibilities and good opportunities a ahead...

This company certainly has bright future with excellent leadership


Posted by probability > Jun 21, 2019 11:35 PM | Report Abuse

having all the future cash flows NOW SURELY is better than having it in the UNCERTAIN FUTURE...

with that cash you can grow your business immediately

Good morning....

Short-Term Bullish Uptrend

If you collected around RM1, earning 30% to 50% easy easy la

Be focused on stock investment...the core objective for this forum.

Prospect for Hibiscus is good moving forward.

Be patient...this stock is for medium term to long term - not suitable for short term speculation

Already bottomed.
Time to go up!

High probability that it will make higher high today

Even though it is a very good stock, buying at the "right price" is very important. Never buy stock at its high. Be patient and wait for the right time to accumulate.

Kindly be advised of the following :

1) The above Company’s securities will be traded and quoted “[EX-BONUS ISSUE]” as from: 14 Jun 2019
2) The last date of lodgment : 17 Jun 2019


Remarks: The Bonus Issue of Warrants will entail the issuance of up to 214,333,333 Warrants on the basis of one (1) Warrant for every three (3) existing STB Shares held by the entitled shareholders.

The Company had on 29 May 2019 executed the deed poll constituting the Warrants to be issued pursuant to the Bonus Issue of Warrants.

The Warrants will be listed and quoted on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities") 2 market days after the submission of the quotation application for the Warrants to Bursa Securities.

STB's share registrar will issue and despatch the notices of allotment for the Warrants to the entitled shareholders whose names appear in the record of depositors of STB on the entitlement date not later than 4 market days after the date the Warrants are listed and quoted on the ACE Market of Bursa Securities.

I got a pleasant surprise yesterday when I bought a tray of kampung chicken eggs at a wholesale outlet. Usually the eggs cost about RM12 - RM13 per tray (30 eggs).
It was only RM8.50 yesterday!

Check out the latest eggs & chicken price...

Good progress...today hit 1.08 already

This good investment stock gets better every day!

Reminder:
The above Company’s securities will be traded and quoted “[EX-BONUS ISSUE]” as from: 14 Jun 2019

The Bonus Issue of Warrants will entail the issuance of up to 214,333,333 Warrants on the basis of one (1) Warrant for every three (3) existing STB Shares held by the entitled shareholders.

http://www.dvs.gov.my/index.php/pages/view/2157

http://www.dvs.gov.my/index.php/pages/view/1825

I started buying Scomnet at around RM0.18
In and out based on Swing Trade strategy...one of my best profitable stock...

If you are afraid of people pump and dump, then you can use technical charting to guide you in your trade.

If you want to invest longer term, this may be a very good growth stock - go and do homework on the company's business to see its prospect before you invest.

Please take note of MYEG's management comments in the quarterly report attached below:

B3. Prospect of the Group

For the financial year ending (“FYE”) 30 September 2019, MYEG will continue to introduce innovative services leveraging on new technology to drive our growth for FYE2019.

We are also expanding our regional presence in Asia with the recent introduction of new joint ventures and services in the Republic of the Philippines, the People’s Republic of Bangladesh and the Republic of Indonesia. We are bringing our technology and expertise to these countries and hope to introduce innovative services which will enhance the efficiency in these new markets and allow us to tap on the continuous growth of transactions where the population in these countries are becoming more tech savvy. MYEG’s Board of Directors (“The Board”) is cautiously optimistic that these are the new markets which potentially may contribute to our organic growth for FYE2019 onwards.

At the same time, the Board will continue to work closely with the Government to continue rolling out new e-government services whilst maintaining the service level of the current services which will continue to benefit the Malaysian public, consistent with the new coalition Government’s manifesto.

In view of abolishment of the Goods and Services Tax (“GST”) regime in September 2018, the Board wishes to clarify that necessary impairments were made, in FY2018, on the investments as well as capital expenditure incurred on the tax monitoring system which were supposed to be rolled out under the GST regime. However, the Board is confident that there will be opportunities available to the Company to roll out similar systems in other countries which we are present and to re-deploy the system built and assets purchased (which the value had been impaired) in these countries.

Barring any unforeseen circumstances, the Board are cautiously optimistic that the long-term outlook for MYEG continues to remain positive as we continuously introduce innovative services as well as embarking on a regional expansion.


QUESTION:
1) Why management is bringing up the issue of the impairment of GST made in FT2018?

2) Why management is telling us that "the Board is CONFIDENT that there will be opportunities available to the Company to roll out similar systems in other countries which we are present and to re-deploy the system built and assets purchased (which the value had been impaired) in these countries." ?

3) The CONFIDENT comes from where?

4) They already know their business development (implementation of the GST system with Bangladesh government) but cannot share with us yet?

5) Do you believe that an announcement of the contract will come soon?

6) What will happen to the profit, EPS and stock price when the GST system impairment is written back?

7) Is it worthwhile to hold on to this solid performing stock, even though the company have to go through so many challenges after GE14?

8) Why didn't MYEG sue the government for the losses incurred due to the cancellation of GST system, like Prestariang did for the cancellation of their SKIN project?

Kumpulan Perangsang Selangor Berhad Records RM13.2 million in Operating Profits for 1Q19 on Stronger Contribution from Core Businesses

• Revenue leaps 64% to RM157.5 million • Solid turnaround in operating profits as a result of sharpened focus on the manufacturing division • Core earnings dynamics expected to strengthen despite exit of SPLASH

Kuala Lumpur, Malaysia, 30 May 2019 – Investment holding company Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) posted a 64% increase in revenue to RM157.5 million for the quarter ended 31 March 2019, as compared to RM95.8 million in the corresponding quarter last year. Riding on the success of its Business Transformation Plan (“BTP”) and continuous business improvement mobilised on all subsidiary companies thus far, the operating profits continued to improve, posting a strong turnaround to RM13.2 million as compared to RM4.1 million loss in the corresponding period last year. Unlike in the past, stronger set of numbers this quarter was driven mainly by higher contributions from the core businesses, especially from the manufacturing division.


HIGHLIGHTS FOR THE QUARTER ENDED 31 MARCH 2019


Manufacturing businesses contributed RM105.6 million or approximately 67% to the Group’s revenue, compared to the RM44.0 million or 46% contribution in the corresponding period last year.

At 5% growth, Century Bond Bhd (“CBB”) led the revenue contribution with RM46.2 million on higher traction from its carton and consumer divisions. CPI (Penang) Sdn Bhd (“CPI”) maintained its influence, contributing RM45.6 million to the Group on higher sales from its automotive and communications divisions. Contribution from the manufacturing sector was further complemented by King Koil Manufacturing West Inc. (“KKMW”) which grossed RM13.8 million as its manufacturing plant in Phoenix, Arizona, is gradually picking up momentum.

Further contribution was derived from the trading business with Aqua-Flo Sdn Bhd (“Aqua-Flo”), returning RM25.9 million slightly below the RM26.3 million it contributed in the corresponding quarter last year. The slight decline was attributable to lower sales of chemicals as a result of dry weather spelled between the months of January and March 2019. Also contributing to the lower sales was deferred commissioning of Semenyih 2 dam, Langat 2 and Labohan Dagang water treatment plants. At RM25.9 million, Aqua-Flo contributed approximately 16% to the Group revenue.

Next, the licensing business King Koil Licensing Company LLC (“KKLC”) registered a 43% growth in revenue, turning in higher revenue contribution of RM11.2 million as compared to RM7.8 million in the corresponding quarter last year. The growth was attributable to higher international royalty income from China and Indonesia. Royalty income from the US was flat, in line with the change of business model from licensing to direct-to-retailer manufacturing for the US market. At RM11.2 million, KKLC contributed approximately 7% to the Group revenue.

However, the infrastructure division which is represented by KPS-HCM Sdn Bhd (“KPS-HCM”) and Smartpipe Technology Sdn Bhd (“Smartpipe”) made a lower contribution this quarter. At RM11.6 million and RM2.6 million revenue contribution respectively, traction from KPS-HCM was affected by delayed progress of elevated water tank and M&E works at Phase 3C Pulau Indah Development Project while that from Smartpipe by delayed commencement of the pipe replacement project it was awarded last year. Having adjusted for inter-group sales, revenue contribution from the infrastructure division was RM11.8 million, or approximately 8%.

The remaining revenue contribution of RM2.9 million, or approximately 2%, was from investment properties, which was mainly attributable to rental income from Plaza Perangsang.

Having unlocked further values from our core businesses in the manufacturing, trading and licensing sectors, the Group posted a commendable operating performance. As a result of a more focused business strategy, Perangsang Selangor reported a solid turnaround, posting RM13.2 million operating profit this quarter, as compared to RM4.1 million operating loss in the corresponding period a year ago.

With approximately RM3.5 million share-of-profit from associates, which was made up mostly of contribution from associate company NGC Energy Sdn Bhd, the Group posted a healthy Profit Before Tax and Zakat of RM7.2 million. It was lower if compared to the RM15.5 million registered in the corresponding quarter last year, which comprised the share-of-profit from Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (“SPLASH”) of RM20.2 million. With the new earnings dynamics upon the exit of SPLASH, Perangsang Selangor’s Profit After Tax came in at approximately RM2.5 million for the quarter.

Posted by tealeaf > May 30, 2019 8:44 AM | Report Abuse

many retailer interested on this stock...

but looks at the youtube qr presentation video, less than 2k views....


Normal la...
Most retailers are punters
They are not investors
So they do not do homework
They do not put efforts to know the company nor the business
They just buy and pray that the stock price goes up
If the price doesn't go up, they will turned negative...


Genuine investors will do the right thing and know how to manage their expectation correctly and enjoy the journey of investment in a good company with good potential

The exercise price of the Warrants has been fixed by the Board at RM0.65 per Warrant (“Exercise Price”), which represents the five (5)-day volume weighted average market price (“VWAP”) of STB Shares up to and including the LPD (“Price-Fixing Date”) of RM0.65 per Share after taking into consideration the following:-

(i) the historical price movement of STB Shares;

(ii) the prevailing market conditions; and

(iii) the future working capital requirements of STB Group.

Good news keep coming...
Next is the Quarterly results

The company usually (consistently since 2013) declare Dividends during February & August quarterly results...Good?

Q1 2019 EPS = 2.41
Q1 2018 EPS = 0.29

Yes????

Posted by shpg22 > May 24, 2019 7:06 PM | Report Abuse

Looks at its EPS not Net profit. This stock has diluted like air kosong d.

MFLOUR QR is Out!!!

Profit UP 1145%

Good sharing sardine81

Congratulation to KNM shareholders...Cheers!

Congratulation!

Posted by paktua73 > May 23, 2019 4:06 PM | Report Abuse

paktua fight hard even hell say hello
manage grab more 0.87,0.875
if die let die hard

tut tut
dare to buy or die try

0.87 is a good price to buy

I think it is about time to buy...

Get Ready to Buy cheap....

No need to spend more energy on people who do not use logic/common sense (no competency in TA & FA) in stock market...
You are kind enough to share and leave it to the viewers to make their decision...


Posted by abang_misai > May 23, 2019 7:40 AM | Report Abuse

If Dayang is now at a high 1.75, then I believe today will be selldown.

Now Dayang is at 1.13 with swelling order books, I believe those attend yesterday AGM will take the opportunity to buy today.

Already hinted in the AGM, it will be a positive EPS for 1Q around +5sen. What more you want?

Good sharing 88luckybull

Do ot be bias and personal la...

I choose to see the good side of things...

1) someone is kind enough to help and share with Jerry
2) Jerry is a good man who have gratitude to give credit/thanks to that kind person
3) Wisdom is not measured by age alone.
4) It is excellent that Jerry have the interest to learn something very useful at such young age

I am having a lot of fun and happiness in KPS because I see wonderful things...and will be unfolding one by one. Cheers!

:D))

Take good care of yourself and do not let unimportant things rob your health and happiness away....just sell off your KPS shares and no need to suffer all the negative emotions here. There are still many other good companies in KLSE for you to invest. Be happy.


Posted by hooi > May 20, 2019 9:37 AM | Report Abuse

The management is arrogance and ignorance.
This will lead kps share to go down further.
Pay 320 millions for a SME Company. Spend wildly .

Another important factor moving forward...

Production expected to INCREASE from June 2019!!!

Look at the current Brent Crude oil trend chart...

Undoubtedly, moving uptrend...

US$ also stronger than Ringgit...

Apa lagi mau??

1.50 reasonable
Keep one year, 2.00

Need to be patient with this stock

Not suitable for short-term speculation
Very good for Medium-Term Investment

Grains price dropped...good for MFLOUR = Higher Profit due to cheaper raw materials

Bright future ahead = Invest!

Good performance.
Good prospect.
Buy & Keep more...

Wow! very happy...bought at today's price. Sui !!!