or more correctly they provide bunkering services that encompasses more than just marine fuel at Tok Bali which in turn caters to the Oil exploration services at the North Malay Basin (aka Gulf of Thailand)

Azrb's revenue is maybe constituted as 90% construction, 8% oil & gas and 2% property, plantation, etc.

Under their O&G segment, they are retailers supplying marine vessel fuel & oil products (like a petrol station)

....."Back to the ECRL, MIDF believes the awards for subcontract jobs to Malaysian contractors will begin in the 2QFY20" (an excerpt from the above link)

https://www.thestar.com.my/business/business-news/2020/04/04/waiting-game-for-construction-sector

https://www.klsescreener.com/v2/news/view/657655/healthcare-and-infrastructure-to-benefit

And also EKVE project should be rolled out sometime this year (hopefully not too long delayed because of covid).

To recap, the initial development cost is Rm 1.5 bil financed by sukuk in Ekve Sdn Bhd; a wholly owned subsidiary of Azrb.

Stage 1 (Pre-Completion)
Debit Work In Progress
Credit Sukuk Loans

Stage 2 (Post-Completion)
Debit Assets Held For Investment
Credit Work In Progress
Debit Bank
Credit Sales
Debit Sukuk Loans
Credit Bank

(If Sales > Cost of Sales for Toll operation = Gross Profits recognized when doing Consolidated Accounts of Azrb and Ekve Sdn Bhd). Bottom line depends on overall of everything else.

Bank balance won't increase for a while because the collections are used to pay off sukuk but gearing ratio improves.

Note also Ekve project is merely stage 1, stage 2 not tendered out yet. Open to all in future but Ekve Sdn Bhd could be favored due to existing expertise.

Disclaimer clause: The above is merely my own basic layman opinion and not professional advice.

Azrb at this level is very much a beaten down stock. It is still good entry points now on a 6-12-month horizon.

Nestle at Rm 130 while nta at rm 3 is because they declare a high 90%++ of their eps as dividends almost every quarter. Like Dutch Lady, BAT, Etc etc

These are companies with rising revenues and profits, low debt and high ROEs.

Hope the above addresses your ???

Disclaimer clause: The above is written as a in my opinion only and leisure reading, not as a professional advice, you need to verify such information before investing further

Note also on Azrb, EKVE highway project worth Rm 1.5 billion is scheduled for completion in July 2020 (was given extension to complete back in 2019 for 315 days).

Hence, revenue stream will kick in once the toll is operational (Ekve Sdn Bhd holds 100% of the concession which in turn is a wholly owned subsidiary of Azrb).

The toll revenue is surely collateralised against their existing loans which follows the same modus as with their latest sukuk money received on-lent against cash revenue from their FM service under their medical hospital concession project.

PS: Very normal thing for construction companies to be highly geared, if you are not highly geared, you are not a best practising construction company or worst still banks view you as risky business model to them.

This counter and Mrcb

Buy on rumours, sell on news (TMY's 250b stimulus package). However, this is a huge package and i also get something, thumbs up for it.

and Klse suspension of short selling until 30 Apr is in effect

When the vaccine is announced to be there even though surely not readily available to the masses until at least 2-3 months, markets will shoot up. Won't be long now.

Of course will retrace also but at least dont miss the first big rebound.

Every 0.5 sens up = 4% profit. Compare it to fixed deposit 12 months interest rate.

US Fed announced unlimited stimulus, helicopter cash ready to drop dollars on every family home in the States, rebound is imminent.

If you miss the first rebound which will be sharpest, you'll be stressed. So better stress to buy now then stress to buy if you miss the rebound.

Buy little bit and keep, no need to greedy. Anyway can see relatively good reasonable support at 12 sens. Daily trade volume practically dried up. Today done Rm 53k only. Price of a Myvi.

Govt said will outlay provisions for infrastructure spending but mainly for small contractors. Cannot spend mega sums in light of oil prices. Azrb recently won award for best construction company in micro segment, so at today's prices sure qualified as small contractor with award to backup.

Won't die one this counter.

Correction, not sell back on open market but issue as bonus issue or issue to employees as share option incentive. Either way it's rewarding to the company and the shareholders at the cheap acquisition price of today

Their Treasury department should have put in place a share buy back mechanism with prior approval from Bursa. If that was done, it can now start to buy back its shares and keep in its treasury.

Once the market recovers, sell back at double triple whatever the price in the future. Their Holding company segment will have superlative one-off profits which can offset their Engineering, Plantation, Property, Concession's hard times in these day and age.

Today at 12.5 sens with 594 mil shares issued that equates to a market cap of RM 74 mil while it has a backlog book order of RM 2-3 billions?

I repeat in above, Charting is nothing more than telling you the past movement of a stock. Not the future.

If you are basing on technicals and making tons of money you won't be bothered reading this forum and probably you are working at Khazanah or PNB with a high post

Government said stimulus package coming by month end or early next month, US and China looks ok, Battle against Corona virus seems to show that the worst is over albeit still out there .... so go buy a little bit keep for 10% return (4 sens up, enough lah).

Whether AZRB is an eventual recipient of any kind of stimulus package is irrelevant.

Malaysian market goes up based on hopes and goes down based on fears.

Where got buy based on Fundamentals for penny stocks.

While Charting is nothing more than telling you what has happened to the stock.

So you are just left with news which is either good or bad overall.

Key Holland Liao

calvin will post by today or tomorrow after today's rebound ...

wait 0.57

After getting the Micro cap segment award now they should move up to Small cap segment

90 sens easy

Most likely to repay off their current loans while adding on a new loan. This is a form of corporate finance exercise to satisfy loans that come due i.e. revolving loans. Like when you pay off one of your credit cards balances with funds from a new credit card you applied for.

No significant effect on the books unless the coupon rate on the bonds are higher than the current loans’ interest rates. Hence, no direct causation effect to share price, in theory.

There could be so many other reasons for issuing a loan or debenture, such as for working capital ie to pay for salaries, TNB, director’s fees, etc, as a security for performance bond to bid for projects, to upgrade its facilities, to purchase land banks, to pay dividends, etc.

The good part of a bond issuance could mean that the books are somewhat not critical, if not, obviously it would not be approved by Bursa and management may have to resort to other means of capital raising such as Rights issue, or worst still declare a surprise bomb Loss on its books and go for capital reduction and then re-issuance of its shares after say a 20 to 1 reduction. The latter scenario is unlikely for AZRB though given its track record.

Basically, it is very normal for companies to take up loans to operate. Even companies such as Nestle which is highly liquid in its cashflows and high dividend payout rates also have long term loans in issuance.

Note, i used the word ‘staged’ as opposed to ‘stacked’ in above. They say tendering is now ‘open basis’, if you believe it is done as such then i made a typo error. Alas, i still believe otherwise, so i used the word staged instead :-p

41 sens still cheap to go in given that the ECRL tendering stage is coming up in 4th quarter. 30% bumiputera contractor quota and AZRB is king of the east coast so ‘surely’ the deck is staged favorably for them or aka a good horse to bet.

The level to be wary is at 55 sens which is when the directors themselves offloading some of their own personal share holdings albeit a small amount. This happened on the last recent months run up.

Today's trading volume is 1,737,200, that should answer your question?

0.895 but you have to factor in the mark down of 0.0175 ex dividend that day, so if you are counting the pennies in the last month or so, the price is still above in fact 0.91 as of today (not so bad lah)

Mesdaq company

The same operandi every day. Up one or two sens i will read here the counter is charging to Bukit Beruntung, if down half or one sen i will read the counter is charging to Bukit Holland. Anyway, dividend ex date coming soon 1.75 sens.

For the first quarter ended 31 March 2019, the Group recorded revenue and profit before tax of RM234.1 million and RM8.4 million respectively, compared to RM427.6 million and RM30.6 million respectively recorded in the preceding financial quarter ended 31 March 2018.
The 45% decline in revenue in the first quarter of 2019 compared to the corresponding period in 2018 was mainly due to the lower revenue contribution from both the Property Development & Investment and Engineering, Construction & Environment Divisions.
Profit Before Tax fell 72%, impacted by the lower revenue recognised during the period as well as the deferment and re-timing of income recognition from the LRT 3 project. As a result, the Group’s 50%-owned LRT 3 project joint venture company MRCB George Kent Sdn Bhd contributed profit after tax of only RM0.5 million, compared with RM9.0 million in the corresponding period in 2018. This is considerably lower than previously budgeted due to the deferment of progress billings resulting from the re-modelling of the project from a PDP to a fixed price turnkey project by the Government.

The Group recorded revenue and profit before taxation of RM234.1 million and RM8.4 million respectively, in the quarter ended 31 March 2019, compared to revenue of RM374.1 million and profit before taxation of RM7.7 million recorded in the preceding quarter ended 31 December 2018.
The higher revenue in the immediate preceding quarter was mainly due to higher revenue recognition from the 9 Seputeh mixed residential development in Jalan Klang Lama and the office towers in PJ Sentral Garden City. The Engineering, Construction & Environment Division also recognised higher revenue due to the construction completion of several commercial buildings in Johor.
Despite recording lower revenue, the Group recorded a slightly higher profit before tax of RM8.4 million compared to RM7.7 million recorded in the immediate preceding quarter.

Finance sector dead, property market dead, plantation dead, trading dead etc. Currently the only sector with some form of good catalyst is the Construction sector. The government have been shoring up its image via the U-turn revivals of mega projects.

Hence, buy and wait for your turn to limit up. For this counter to limit up is easy as the number of shares in issue is less than a billion.

Fundamentals, valuations, technicals, fanciful & wishful write up analysis all not necessary. Any good news will sky rocket the sector and AZRB is just waiting for its turn and it will surely come in my humble opinion.

Only problem is the Bad news of the ringgit which inevitably rocks the market and everyone sells off. That also if you read the news with an open mind, the government is really doing something about it.

So why keep cash in other sectors (hold long-long time for what?), switch to construction :-D (still not too late), later can still buy back your darling stocks for more number of shares after you 'make' here :-X

If it ends lower for the week and continues down next week, then it looks like a ‘Triple Top’ formation on daily chart.

First top: 21 Feb, second top: 11Mar, third top: yesterday. The triple top pattern is a type of chart pattern used in technical analysis to predict the reversal of an uptrend.

If breakout from 1.20 with long candlestick then more to up.

My lukisan always get ‘A’ in primary & secondary school ^^

The knee jerk reaction / negative perception which drove the construction sector down via the annoucements of mega project scale-downs and cancellation of ECRL is a past issue. The new government ‘had’ to make drastic announcements (a certain pannache was needed) however, if you look at it now being months later, it’s business as usual albeit on a more cautious slow plod.

The govt will continue to develop and grow the country’s primary infrastructures and it will be on a bigger scale, its a time progression thing, more population dictates the need for better market accessibility for businesses to grow, etc

MRCB is still a laggard in relative % terms to other construction stocks over recent months’ rebound from post GE14 lows (grab a few peer counters, compare n do the maths).

IMO the bulls n bears will tussle it out in April at the magical RM 1 mark. And yes i obviously have a vested interest in this counter.

hold hold

Drive forward means putting the gear shift to D, not put to R….

Wah after reading the article, really can up, now 43sens

Construction stocks will be the next play, can almost feel it coming....

Make me read so much on your article but it is a good article. Now, after reading it under this Perdana forum, the share price will rebound or not?

If can close today and tomorrow at 50sens then tonight can draw charts

There is a time to buy, there is a time to sell. If first day down, second day down, third day down, fourth day technical rebound.... then consider it long term investment

Don't care if operator goreng, mamak goreng, pisang goreng as long as moving up