The dependency of energy towards Gas and Coal power plants are still being practiced widely in Malaysia even there is an alternative to improve the energy supply. The need for solar technology in power industry is to enhance cost efficiency and clean environmental. It is also amazing that solar power plant can harness freely the sun as a power source. This new inventions are seemingly important to tap an unlimited supply of the power from the sun. It could change the paradigm of norm power industry practice. Unlike other developed countries such as U.S., Spain, etc, Malaysia is still lagging behind in implementing it despite it has already started few years back.
Presently, few public listed companies has made a major steps towards developing a solar project that can benefit in many ways. The most recent, Vsolar Bhd and Trive Property Group Bhd have inked memorandum of outstanding (MOU) with UTM and Fortunate Solar Technology Ltd respectively to establish a partnership relating to solar business. It is still an early stage of the development, yet it will bear fruit once it become concrete in pursuing it. Both companies are financially loss making on their other businesses and with the solar business in the pipeline, they hope this new business can generate a recurring income to return to black.
In contrast, it is a different story to PUC Founder Bhd, who has made an earlier move in this renewable energy business than those two companies. The company has signed MOU with Founder Energy Sdn Bhd and PW Consolidated Bhd in relation to the collaboration and working together to build and operate a ecotype biogas electricity plant. Aside from that, this is nothing new to the Company that has track record been awarded contracts to build and install a mini solar power plant.
PUC Founder Bhd has also recently completed its raising fund to be utilised to construct more several solar PV plants. The plants are ranging from a minimum capacity of 4 MW up to a maximum of 15 MW, with the intention to sell Renewable Energy to be generated from the solar PV plants, via the Feed-in-Tariff system. Fundamentally, the Company is in black as compared to those above companies banking on its existing business, particularly advertising and media segment. With solar business come into a direction to lead the Company, the bulk of income will be coming from this segment in the near future.
It is a great sadness and unfortunate that the Company has loss its founder after a sudden illness. Having said that, the board of the company remains confident with the management's abilities to continue with the Group’s initiatives and plans. The Group has an experienced management team, most of whom have been with the Group for years. Indeed, BIMB Securities has initiated coverage the Company with a BUY call and target price of 18sen after fully dilution of warrants and ICULS. At its current price, it is impossible to see a dilution and based on the broker's minimum case scenario of no exercise, the Company is worth more than 20sen.
Last but not least, the world lacks for enewable energy and sustainable enery business!
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....
Hussainy Yusree
292 posts
Posted by Hussainy Yusree > 2016-06-02 12:14 | Report Abuse
how i want to get married if PUC still like this....hmmmm