https://youtu.be/tRUfvGjoqpc

Should listen to people on the ground. Project delays but interest still needs to pay.

Azmin should be finance minister because he really thinks before he talks

LGE and Tony Pua doesn't have engineering background it is difficult for them to understand this mega infrastructure project. Should at least consult a third party SME like Koon Yew Yin. I suddenly felt that this PH government is screwing us up. UEC no news, markets dropped like hell and upcoming budget will be bad. By terminating all these mega projects will definitely impact the economy. At the end of the day people willl suffer more. if it is so easy to reduce debt by terminating all these contracts everyone can be finance minister. Best CEO will not just retrench staffs to bring profit to the company.

http://www.chinapress.com.my/20181010/金务大电机工程师发公开信-反驳潘俭伟/

No one knows better than those working on the ground.

I read the media statement issued by Gamuda MMC. if what they mentioned is true I think MOF is too rush to terminate the project without further consideration. Lawsuit will come sooner or later. if going for international tender how many local bumi contractors can qualify based on those stringent requirements? If award to overseas company do you think their cost will be lower comparing to Gamuda MMC? take note they need to buy new equipments and bring resources from overseas. Gamuda invested CAPEX in mrt1 now just reuse the equipment. i don't know what is LGE thinking now.

However, if the interest, additional tax liability, tax penalty, and other significant non-cash items were being excluded, the
Group registered a core profit of RM7.25 million in the current quarter under review, representing a growth of 57% as
compared to the RM4.61 million in the previous year's corresponding quarter.

Panic selling, read pg 5 of the latest QR report. Malaysia is Pmetal's largest market not US:

https://cdn1.i3investor.com/my/files/st88k/8869_PMETAL/qr/2017-12-31/8869_PMETAL_QR_2017-12-31_Q4%202017%20Notes_967804832.pdf

In Q2 last year, Press Metal’s bottom-line was inflated by the receipt of the final insurance compensation payment of RM45.02mil from MSIG Insurance (M) Bhd in relation to a May 17, 2015 fire at its smelting plant in Samalaju Industrial Park, Bintulu, Sarawak. (The total insurance claim recovered amounting to RM115.02mil was paid out in phases.)

With the insurance claim included, Press Metal’s pre-tax profit still showed a growth - 5.1% - while earnings inched up 2.8% to RM150.17mil.

B3. COMMENTARY ON PROSPECTS
In general, the global HDD industry is expected to contract in the coming quarters due to the weak
global economy. However, our new product mix development with the HDD customers is
expected to sustain our HDD businesses which will to a certain extent mitigate the expected
contraction.

Pm subscription qinxia80@hotmail.com

“Unconfirmed source : Press Metal is only paying a tariff of 10.5 sen per KwH ”

This was covered in the Busy Weekly report i mentioned earlier. They signed a deal for 25 years with the authority. This is one of the reasons why PMetal can maintain a low cost operation compare to other competitor. On top of that, their plant in Sarawak is near to a port indirectly reduce the cost of transportation for exporting.

the report is more than 10 pages. i cant post everything here. for those who are interested can check RHB website. Busy Weekly Issue 316 has full coverage on PMetal, it also mentioned why this company has strong competitive advantage against its competitors.

From RHB.

Reiterate BUY, but a lower TP of MYR4.37. After accounting for all the adjustments
mentioned above, our DCF value rises to MYR7.9bn. Considering that the realisation
of earnings from Phase III is expected in FY16, we continue to apply a 20% discount
to the stock’s DCF valuation to derive a new TP of MYR4.37 (from MYR5.53).
Therefore, we reiterate BUY on Press Metal, which remains our Top Pick for the
basic materials sector.

China moves to cut the export tax on aluminium products. Bloomberg reported
last week that the Chinese Government announced its plan to scrap a 15% export tax
on rods and strips made from primary aluminum effective 1 May. Meanwhile, most of
the industry experts quoted by the mainstream press last Friday morning think the
move may send aluminium prices lower amid ample supply. Another popular reason
cited was that China continues to add aluminum capacity as smelters elsewhere
struggle to cut enough supply. The news sent Press Metal’s share price downwards
by as much as MYR0.42 last Friday. While the stock managed to regain some earlier
losses by the end the day – it closed last week at MYR2.90 – its share price was still
down by 10.5%. 22.8m Press Metal shares changed hands on Friday – the single
largest volume traded in a day since its listing. We promptly organised a conference
call on the same day to give institutional investors an opportunity to hear the news
directly from management and its take on the latest development.
Negative surprise. Indeed the move came in as a major surprise to us and the
market in general, where hopes have been high that the Chinese Government would
shut down the outdated capacity and eliminate the VAT ranging from 13% to 17%,
which has been used as a loophole by some exporters to earn a handsome arbitrage
profit from exporting “fake” aluminium coils or other value-added aluminium products.
We believe the drop in Press Metal’s share price can be attributed to China’s move,
which is totally opposite of what the market was originally expecting. This may also
leave investors wondering if there are more changes in the future by the Chinese
Government encouraging the export of aluminium.
Management sees little impact from latest policy. During our 45-minute
conference call with Dato’ Paul Koon, CEO/founder and Mr David Tan, head of Press
Metal’s corporate affairs, both believed that the latest tax cut would have a minimal
impact on the aluminium market for the rest of the world outside China. They pointed
out that the export tax is only removed for a specific category of aluminium strips,
bars and rods that are produced in smaller quantities. Dato’ Paul also said the
economics of exporting those aluminium products do not work at the present price
level – as the all-in aluminium prices outside China have declined while China’s
domestic price of the commodity has found strong support above the
CNY13,000/tonne level. Furthermore, those products are still subject to the 13-17%
VAT that reduces China’s competitiveness to export.

The Chinese Government’s surprise move to scrap the export tax on
aluminium rods and strips may not add pressure on already-depressed
aluminium prices. However, we cut our numbers for Press Metal. Our
TP falls to MYR4.37 (51% upside) as the new policy may temporarily
undermine the potential aluminium price rebound. The stock is our
long-term BUY due to its low-cost smelters and Phase III expansion.
 Surprise change in policy. Last week, the Chinese Government
announced its plan to scrap a 15% export tax on rods and strips made
from primary aluminum with effect from 1 May. We also hosted a
conference call with Press Metal’s management as the company’s share
price fell following the news.
 Limited downside but temporary keep the upside. Indeed, the move
was an unpleasant surprise for the market, as it was the opposite of what
most investors expected – that the Chinese Government may close the
outdated capacity or remove the value-added tax (VAT) rebate ranging
from 13% to 17% for certain value-added aluminium products, in order to
discourage exports. We concur with Press Metal’s management that the
latest policy change will have little impact on the aluminium market
outside of China, mainly because the London Metal Exchange (LME)
aluminium price and physical premium paid on top of the LME rate by
the rest of the world has continued to slide to very distressed levels,
while the China’s domestic aluminium price (which refers to the
Shanghai Futures Exchange (SHFE)) found its support at the
CNY13,000/tonne level. Although, the economics of exporting aluminium
products from China are not at work at the moment, we think this may
have kept the potential rebound on aluminium price outside China going
– as any increase would open room for China to export more aluminium.
 Reiterate BUY with a lower MYR4.37 TP. We cut our earnings
estimates for Press Metal by 20.7-23.1% for the next three financial
years after imputing the lower aluminium price assumption. That said,
our new TP – derived from a 20% discount to its DCF value – of
MYR4.37 still offers a decent 51% upside, thanks to the company’s
proven low-cost smelter which is in the first quartile of the global cost
curve, and its on-going Phase III expansion that offers decent growth
potential. Thus, we maintain BUY, but we do expect some headwinds for
its share price over the short term after this latest development

From annual report:

CHINA
In China, our subsidiary in Foshan,
Press Metal International Limited, is
one of the biggest exporters of
aluminium products in China, with a
production capacity of 120,000
tonne per annum.
The Group also established an
extrusion facility in Hubei, China,
with a production capacity of
30,000 tonne per annum.

http://news.sinchew.com.my/node/368646?tid=1

does the 41 cents capital repayment means that after ex date the share price will drop 41cents?