continue accumulating this stock at cheap price. The JKR project has proven to be contributing for 2 quarters, so i assume its gonna be stable, consider JKR + the concession project, 5million profit for each quarter is not a problem. and we can see the management is expanding to r&r for recurring income. the stock price is going down due to bad market sentiment, so do not panic guys. stick to fundamental company, things wont go wrong. in short term, it is a voting machine but in long term, its a weighting machine.
Diversifying to O&G maintenance space. To venture into more high-value-added O&G space, GFM had in 2019 proposed to subscribe a 49% stake and up to RM20m worth of RCPS in a downstream O&G player High Base Strategic Sdn Bhd (HSSB). Through HSSB’s 51%-owned joint venture with Singapore-based O&G integrated solutions provider Mun Siong Engineering Limited, HSSB is one of the five players who has secured the PETRONAS’ Integrated Turnaround Main Mechanical and Maintenance Mechanical Static (“TA4MS”) contracts located in Pegerang Integrated complex. Management expects the acquisition to be done in 2H23. Overall, the acquisition will strategically position GFM in O&G maintenance space and widen its customer base, as well as increase its credibility to bid for similar types of projects.
I been holding this stock for almost a year and average down to 0.20. it is hard for me to let go this stock but today i had decided to sell it all at 0.20 for 2 reason. 1. My buying point on GFM is no longer true. Initially i bought it because of the JKR project that i hope it can boost the profit and eventually better dividend. but on recent QR, i found that some of the project has completed(no renew) and the profit is only sustain thanks to JKR contribution. its abit disapointment as there is no new project to further boost our investor confident. 2. Second reasono, there is a dividend announce on recent quarter, Y23Q2 of 0.0018 sen. It looks good to me at first, but if you look into the quarter report, the cashflow is actually negative but yet company still announce dividend which concern to me. It means that this dividend payout is non-sustainabe. Thing might get worse if later GFM do private placement again to collect money from us. I am just sharing my 2cents, at this current price 0.20, the downside is not high but i dont see upside and decide to switch to other stock for now. Welcome anyone to share his/her opinion as i will continue monitor this stock too.
At the cashflow portion, net increase/decrease in cash, -6.3m. Is this not negative cash flow? Anyway, i sold it already, i do hope for the best GFM have healthier balance sheet and i will come back for this.
The company's operating cash flow is healthy & +ve for the past many years. As at 6/2023 it posts 11M net cash from the operating activities for the current year.
All I can say it's a financially healthy but average performance company.
Highbase Strategic Sdn Bhd, an oil and gas maintenance services provider, is expected to contribute approximately 30% to 35% of GFM Services Bhd's total revenue and bottom line from the financial year ending Dec 31, 2024, the integrated facilities management services provider said. This follows the share sale agreement signed between GFM and Noor Jasni Zakaria and Norliza Mohd for the group to acquire the remaining 51% equity interest in Highbase for a consideration of RM18.2 million.
This contract, effective until 2024 with an option to extend until 2029, provides a strong foundation for Highbase's future growth, said GFM.
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....
TCH1186
910 posts
Posted by TCH1186 > 2023-03-16 09:46 | Report Abuse
got news, no news or whatever they do seems like useless