just aware of that Ucrest only signed MOU with RDIF. MOU is non binding and legally no enforceable and is only an agreement to agree. Have experienced some cos published MOU and share price going up . but later nothing was materialised. need to monitor closely . Hope everything goes smooth then huat !!!
Mr Eg addressed the fact that the mou is actually a definitive agreement because there is already agreement and actions undertaken as he spoke. So the wording should not be taken as non binding
Monies have already been made by RDIF to setting up the contract manufacturing facilities and technology transfer in China and India on behalf of Ucrest. The great thing about this deal is that Ucrest doesn't cough up even a penny for this. RDIF hands the total responsibility of oem product to Ucrest and pays for the investment at the same time
TLDR UCREST's strong buying interests on 14 April 2021 intrigued us. Below is the sharing of our best attempt to understand the evolving global COVID-19 vaccine situation, how UCREST fits into the big picture, and what's potentially coming for UCREST, based on their recent MOU and additional elaboration on MOU. ❗️Note: MOU may or may not materialise.
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DISCLAIMER Information is compiled from publicly available resources. Also, we are merely attempting to connect the dots, not predicting the future. Our understanding could be inaccurate. Valuation of UCREST stock is beyond scope. There is no BUY/SELL recommendation. Investors own their investment decisions and outcomes.
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This is Part I. Part II here.
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1) VACCINE SHORTAGE IS AN ISSUE THAT VARIOUS COUNTRIES AIM TO RESOLVE, BEFORE IT HAPPENS.
Until 12 April 2021, only 773 million jabs of COVID-19 vaccines had been administered across the world - just a little more than 2 per cent of the world’s adult population. The world will manufacture 9.5 billion doses by the end of 2021, but it needs more than 14 billion doses as soon as possible to vaccinate the entire adult population. This is almost 3x the number of vaccines the world was producing in the pre-pandemic period for other diseases.
2) FOUR KEY NAMES: RUSSIA, GAMALEYA, SPUTNIK V, RDIF.
- Russia has an institution, called Gamaleya (Gamaleya National Research Institute of Epidemiology and Microbiology).
- Gamaleya develops Sputnik V, a COVID-19 vaccine.
- Sputnik V has an efficacy rate of 91.6%. Can be stored in conventional refrigerators.
- RDIF (Russian Direct Investment Fund) funds Gameleya's Sputnik V development. RDIF is also responsible for the vaccine mass deployment. Approved in 59 countries. Most recent: India approved Sputnik V for emergency use.
3) BOTTLENECKS THEY POTENTIALLY FACE: CONTRACT MANUFACTURING APPROVALS.
Interestingly, to achieve mass development of Sputnik V, RDIF needs to work together with Asian's vaccine contract manufacturers. However, due to vaccine shortage across a rising number of countries, complex vaccine-politics and nation-protectionism situations could surface. This makes securing overseas contract manufacturers of vaccine a challenge.
This means, RDIF requires external support that's not limited by political complexities to mass manufacture Sputnik V vaccine. UCREST is trying to fill exactly this gap.
4) UCREST COMES TO THE RESCUE.
9 April 2021 UCREST announcement: Partnering with RDIF, UCREST navigates political complexities and manages the vaccine contract manufacturers across Asia to achieve Sputnik V mass manufacture.
This effort aims to produce at least 100 million doses (and maybe up to 1 billion doses) in 2021 an similarly in 2022. 2023 - depending on actual situation.
> UCREST liaises with Asian vaccine contract manufacturers to produce Sputnik V vaccine and sells full amounts to RIDF (take-or-pay basis), then
> RIDF distributes Sputnik V to Russia and other countries
6) TAKE-OR-PAY BASIS - GUARANTEED REVENUE?
The partnership deal signed between UCREST and RDIF is with take-or-pay basis. This means that all amounts manufactured by UCREST (via Asian contract manufacturing) will be fully paid by RDIF, no matter they actually require those amounts of vaccines or not.
This is probably because RDIF foresees potential vaccine shortage, and would rather have excess (instead of shortage) of vaccines.
7) AS OF 14 APRIL 2021, IS THIS DEAL CONFIRMED? No. However, management stated the definitive agreement will be signed once the detailed arrangements are finalized.
8) ANY COST & RISK INVOLVED? From UCREST management, there is no capital expense or investment required (Their core strategy is to add value by navigating political complexities to enable mass manufacturing Sputnik V). Risks: Currency exchange risk and production risk (insufficient contract manufacturing capacity that may refrain UCREST from fulfilling the minimum requirement in a timely manner), payment delay(s) by RDIF.
8) WHY UCREST?
According to management,
- UCREST has well-established medical technology operations in China, Taiwan and Singapore.
- They have been actively engaged in various healthcare projects in combating the virus.
- Their existing iMedic adds value to the Sputnik V mass deployment. Management plans to make available to everyone who is going to be vaccinated with Sputnik V to have free access to the iMedic platform to track the symptoms or side effects. These will improve post-vaccination tracking and healthcare monitoring in the future.
9) SUMMARY MOU seems to indicate that UCREST would have an additional of revenue and earnings, under zero to minimal cost. ❗️However, MOU may or may not materialise. What will be the final outcome? Time will tell.
DISCLAIMER Information is compiled from publicly available resources. Also, we are merely attempting to connect the dots, not predicting the future. Our understanding could be inaccurate. Valuation of UCREST stock is beyond scope. There is no BUY/SELL recommendation. Investors own their investment decisions and outcomes.
Mr Ed mentioned that rdif is in the process of transfer fech to the 3 shortlisted manufactuer out of 10. Ucrest already secured 600m capacity from china plant. 2 other manufacturer will fill up the remianing 400m. Mr Eg also states current MOU is already enough for the execution of the project. The nex agrrement will be the sales agreement when delivery is due. Ie. All things are already rolling. The shortlisting is completed. Tech is transfering. The mou is binding now.
all these are mentioned in live. Those din c the live will not know. The mou got far mor details which are confidential. Which are not disclosable.probably including the margin and more confidential details. Thqt why Mr Eg is able to giv a rough margin of profit projection in the live.
I believe this stock never reach LU but supposed need to reach that everyday to secure investor..share price still very low and need to increase at least above RM1 in a near time..
According to Mr Eg on key strategic partnership with IAIH.
Edge AI chips used on lung module scan for cancer. Time to deploy 6 mth Utitlity model per by run rm600 per run No. Of hospital 820. 1 run per day 820 x 600 =492K 1 YR 492K X365 = rm 180 million revenue 400 x current revenue. THAT IS FOR 1 RUN PER DAY.
Profit margin will be high as its utility modules. Hardware only 1st time set up cost. Every run is profit.
Current utility model can be applied to other health applications and other countries. AI chips can be expanded to use on scanning for other illness n cancer. POTENTIAL IS UNLIMITED.
Keyasic can hav big potential of rm 1 and above if this materialises. It only take some time for the roll out due to slow deployment due to covid.
Ucrest will also share the above profit as well since it is a co partnership. Many positive vibes for ucrest and key in 2021.
Market is always 6 to 9 months ahead so this share will continue to run up in the next few weeks once the news is fully digested by the market. Anything is possible.
If u had miss out the ev tech company last yr when tbey r dirt cheap. Dun miss out the health tech company when they r dirt cheap this yr and starting to rally.
Thanks Kytan's sharing. Feel make sense of the facts given. As investors we need to share each other and analyse all the publicly available resources to connect all the dots. AsThere are many cases in market before where co released very positive business development news and cause their share price rocketing and later........ But cant deny there also many are real facts and news. This is the challenges in market which we need to encouter. All money are hard earned so be more cautious. Interesting is most of the pump and dump cos , their chart pattern almost the same. Hopefully we are the lucky ones.
heard of Astra Zeneca? now even majority of europeans are scared of that brand because of the serious side effect (you can google astra zeneca side effect on news), and all of them turn to sputnik V and this vaccine could even be the turning point of russia influential power on the european side... so there is no way russia will let this project f**ck up. grats to ucrest, really turning point.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Ohseng
36 posts
Posted by Ohseng > 2021-04-17 20:15 | Report Abuse
just aware of that Ucrest only signed MOU with RDIF. MOU is non binding and legally no enforceable and is only an agreement to agree. Have experienced some cos published MOU and share price going up . but later nothing was materialised. need to monitor closely . Hope everything goes smooth then huat !!!