Sime Darby Caterpillar biz will definitely be affected in view that most countries construction industry are halted.

Hibiscus average production cost is below USD25 pbl which is higher than the current crude oil for WTI and Brent.

With crude oil likely to remain depressed for some time, likely below USD30 till July 2020.

Expect most of Q2 2020 net profit completely wipe off

My opinion is there is no need to put a fair value on Airasia anymore as there are a few variables that cannot be determined.

Variables such as:
1) when AA can be fully operational and when other countries that AA flies to, will open their airspace/airport fully.
2) how much AA hedge upfront for the cheap oil now.
Note: it needs to book losses for 2020 that it had fully hedge earlier.

3) Will there be the same demand as before the covid-19 crisis
4) Should it reduce the current leasing planning and go back to owning more planes, which is more beneficial

Note: AA leasing already contracted up to June 2020

5)Based on March 2020 fixed overhead cost, will AA need to trim down in next few months or continue to hold on to them.


So many variable unknown, still can compute a fair value?????

A great run of 50% from 1.60 on 1st April till today.

https://www.malaymail.com/news/tech-gadgets/2020/04/21/u-mobile-is-offering-the-iphone-se-2020-soon/1858778

I think the sharks have better luck with stocks like Supermax or comfort.
The return is much better and faster.

Any company that is similar like Binacom but large in US, Europe, Japan and China?

Can elaborate more on how it's undervalue?
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Posted by ivanlau > Apr 23, 2020 7:47 PM | Report Abuse

most undervalue stock in banking sector......

One way to address the funding, liquidity and cashflow issue is to list JPP via IPO. As the enterprise value of the entity is greater than USD1 bil, selling down 20% or issuing new shares to public should raise more than USD200 mil for working capital and any capex required for the future.

60% of revenue of serba comes from middle east.

Now oil is almost USD20 for June 2020 contract.

Government has money to pay their own luxurious living?

Still have money for oversize projects by Serba?

Dato Karim better pray hard for crude oil to stabilise above USD40 per barrel in next few months, else middle east nations will be the biggest sovereign defaults of all time.

Sounds like a condom advertisement

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Posted by apolloang > Apr 22, 2020 9:49 AM | Report Abuse

play safe,be safe,better save than sorry

Suggest everyone to take profit after such a good run.

Don't want to be ruined by the Uncle.

Hope to see that but very unlikely

30/4/2020- Pang72 @ 2.50
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Posted by pang72 > Apr 21, 2020 7:20 PM | Report Abuse

Back to 2.50...next week

@ MJ Lee

Can't compare apple-apple.
As mentioned by <dleMoney66>, Ekovest has diversified biz.

But the main difference is:
1) the entry and exit of the highway
2) whether the users of the highway are daily users or not
3) How many interchange , township and business parks along the highway

If you compare the LDP,Sprint(LITRAK) and Duke 1,2 (Ekovest), you will notice a very obvious difference during peak hours.

It's probably too late for you to test it out now.

Those who use them on weekdays for LDP, SPRINT, Duke 1&2 will know what I'm talking about.



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Posted by MJ Lee > Apr 21, 2020 3:26 PM | Report Abuse

duke1,2,3 alone can bring good earning to Ekovest.

we can compare with the peer "LITRAK" which owned LDP highway. The stock valuated at rm3.90 after covid19 outbreak. the share number is 5x less than ekovest. roughly rm0.78.

this alone convince us that stock at least worth that price. Not to say ekovest have 3highway compare to LITRAK 1 highway.

Correct me if im wrong.

Share buybacks giving support.

What is wrong with this statement?
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AirAsia co-founder Tony Fernandes said this month the group had no revenue and 96% of its fleet was grounded. He added that “AirAsia is strong and remains firmly focused on the future”.

Airbus has put six jets made for one of its largest customers up for sale after giving up on Malaysia’s AirAsia taking delivery of them, sources familiar with the matter told Reuters.

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https://www.reuters.com/article/us-health-coronavirus-airbus-airasia-exc/exclusive-airbus-puts-six-jets-made-for-airasia-up-for-sale-as-crisis-deepens-idUSKBN2221R2

Oil price has no material impact on this company.
Only contributes a small part(<20%) of total revenue.
Most of the order book comes from PETRONAS.
Unless PETRONAS defaults on payment, which very unlikely.

May take awhile since short selling already banned.

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Posted by Jengacam2 > Apr 21, 2020 11:12 AM | Report Abuse

RM3 coming

I thought short selling was suspended already.

https://www.thestar.com.my/business/business-news/2020/03/23/short-selling-on-bursa-malaysia-suspended

No point buying in at this price for those interested.
Should bought it when it was below RM3 one months ago.
Better wait out for the quarter result next few weeks to estimate the impact.

Last year October already settle debts. Still discussed about dividend?????

Already mentioned in Bursa annoucement, the disposal gains from F & B NUTRITION SDN BHD is utilised to payoff the company's borrowings.


https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=195308&name=EA_DS_ATTACHMENTS

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2994480

If he sells the same amount daily, in 10 days he would have cleared his 19% stake in the company.

Food for thought: Currently most middle eastern countries rely most of their revenue from oil & gas. Currently, crude oil is trading below USD30 per barrel. Is there a possibility of default in paying up for projects?

Easy reading. Thumbs up!

Yeah, even if the domestic flights are starting again.
Just wondering how many people will be willing fly at this time.
The other question is whether the company will still fly without full load as it will cost more to fly than grounded.

I've traveled Malindo flight (BKK to KUL)6.10pm flghts previously. Only 30% load, still fly. This is the financial risk if you open your flights to customer.

Looking forward for it to breached RM2.
Hopeful to see the contact lens biz to grow next few quarters.

Based on the current financial of the company, they are not able to declare any dividend. Cashflow is very tight. Debts almost RM1 bil.

Besides that, the company is expanding towards renewable energy which require additional capex.

Not many people actually read the contract details.

The Award is conditional on finalising and executing of contract documents and both parties agreeing to the effective date of the Works as of 14th May 2020

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=102515&name=EA_GA_ATTACHMENTS

Oil price is still weak and volatile. But definitely will be low for sometime.

Now most glove manufacturers are moving from rubber glove to nitrile glove(synthetic).

Posted by WinnerWay > Apr 16, 2020 6:18 PM | Report Abuse

Will this impact to the supply of rubber to glove manufacturers

TSMC Q1 net profit almost doubles on strong demand for faster chips

https://in.finance.yahoo.com/news/tsmc-first-quarter-net-profit-054537617.html

Issuing USD bonds to restructure existing debts is a wise move in this low interest rate period.

The downside risk will be the currency depreciation against others.

The best is to be debt free and generating free cashflow.

https://www.cnbc.com/2020/04/15/apple-iphone-se-price-release-date.html

Look at PE again once the Covid-19 is done.

Now the price is factoring in good earnings next 2-3 quarters where almost every single country is stocking up gloves.

Therefore, PE is not applicable for now.

Iphone 12 will continue as plan since China's plant is already operational.

Besides that, current A13 chip are still in production.

Operation in Taiwan is business as usual.

Even there is less demand for latest iphone(9 months later), still will not have material impact as a machine produce 10k unit, now only produce 5k, still needs cleaning. Probably less per cycle.

However, with the even smaller 5nm chip, cleaning will be more frequent.

With new phones coming out with 5G technology and Telco commercialising the 5G bandwith worldwide, 2021 will be an exciting year to watch.

Supply chain is not affected much as Pentamaster has multiple suppliers.

Besides that, the company do keep additional inventories for the parts.

No much impact on Jan-Mar 2020 Q1.

The only issue is less demand for additional ATE or FAS during the period between April-June 2020.

I would expect Q2( apr-june) revenue to drop between 10%-15% compared with previous year quarter.

The best part about Glove is currently there's no replacement for it.
It will not go obsolete.

During recession, it is still needed. Unless all the hospitals and clinics close down.

Currently, more hospitals are being built Eg: Sunway Group.

10 years later, you still need gloves.

Post Covid-19, the backlog should reduce from currently 4-6 months to the normal 1-2months.

For Hartalega, pre-Covid-19, it is running at 85% capacity.

During Covid-19 should be at 100%. Don't need to be a rocket scientist to know this.

Post Covid-19, should be closer to 90% capacity as consumption of gloves increases as world population grows and average life expectancy increases.

Wow, suddenly so many promoters.

https://www.bloomberg.com/news/articles/2020-04-13/apple-plans-ipad-like-design-for-next-iphone-smaller-homepod?utm_content=tech&utm_medium=social&utm_source=twitter&cmpid=socialflow-twitter-business&utm_campaign=socialflow-organic&cmpid%3D=socialflow-twitter-tech

https://www.theedgemarkets.com/article/mco-tenaga-51owned-subsidiary-declares-force-majeure

Tog Glove is looking for more manpower to increase production.
Sounds like the company needs to pursue more automation.
Else will lose out for those more efficient glove manufacturers.

Rental deferment to non essentials biz is the right thing to do.
Rental discounts to essential biz will help as well.
Free parking throughout MCO period should be encouraged.
However, it is doubtful that the company has a strong financial capacity to pull this off unlike more established malls in Klang Valley.

I felt that the Russian and Saudi Arabians are just giving face to US.
They would never cut their production with a combined 10 mil barrel per day.
Besides that, the production cut effective date starts in May.

Expect the Russians and Saudis to pump to their hearts desire in April.
Both Russians and Saudis would probably pump another 10 mil barrel per day in April, then reduce the same amount in May.

So basically, zero cut.

It's like going to shopping mall to buy Nike sport shoe for RM500 with a 30% discount. Little did you know the actual price was already mark up to cover the 30% discount.

ATE segment impact depends on the demand for smartphones.

Looking at during the lockdown worldwide from China to Asean countries and back to US and Europe.

The questions is how many smartphones (Eg:Huawei, Samsung, Iphones,Oppo,Xioami, etc) are purchased by customers during the lockdown period from February till today and maybe extended to May/June(for US and Europe).

Knowing this answer will reflect the number of semiconductor test equipments needed from February 2020 to June 2020.

@DK66

Since this power plant will generate substantial earnings for JHDP of USD5.8 billion over the next 25 years, it's quite hilarious that the owner of J@k$ did not take this opportunity to accumulate more stocks in the open market last few weeks when it was below 70cents.

The best option would be taking the entire company private a few years back when the company is worth of less than RM500mil.
If the owner is wise, he would never want to share the USD5bil with anyone here.

Any thoughts?

Previously it reached rm1 with short selling pressure.
I doubt that it could reach rm1 again(short sell banned) unless the next few quarter results are horrible.

Maybe they really need another rights issue to help them get out of debt.
But that means at the expense of shareholders.