Reason: Price stays above MA20, MA50 and MA200, MA = Moving Average
Outlook: PBA is building its base at 1.20 which seems likely. Price to stay around this level for 1 - 2 weeks before resuming uptrend. Next thin resistance is 1.27, then 1.48.
PBA's share price, currently akin to a calm dam, is consolidating at current levels, gathering strength for a potential surge. When the time is right, it could transform into an explosive force, a dynamic surge, much like the unstoppable energy of water bursting from a dam, creating a wave of potential returns for investors.
14. Variation of results against preceding quarter Group revenue increased from RM104.44 million to RM114.31 million as compared to the immediate preceding quarter. The Group registered a profit before tax of RM29.15 million as compared to the immediate preceding quarter of RM11.55 million, primarily due to lower energy costs due to the waiver of ICPT charges by TNB for Water Operators for the second half of the year.
There are 2 major news about water industry today: 1. YTLPower's Wessex Water PBT before interest accrual turnaround to +RM121.6m in latest quarter from -RM3.0m in March-June quarter.
2. YTLPower may want to do IPO of Wessex Waters in in 2025-2026 which may fetch a valuation of over RM23 billion.
These are positive for water shares including PBA.
I continue to believe PBA is worth RM2.50 (vs. current price RM1.15).
I still think PBA is worth RM2.50 because my Penang friend still use water to shower this morning. Many factories in Penang also use water with higher rates than last year.
Every year, PBA subsidies domestic user water traffic as much as RM 100m, imaging if these subsidies can reduce through domestic water traffic adjustment, PBA profit can potential added up additional RM 100m more
Penang Chief Minister hinted at water tariff hike soon, The Star asked people to take water seriously...
I asked you to TAKE WATER STOCKS SERIOUSLY...
PBA is worth at least RM2.50 because my this value has not taken into account possible increase in tariff to all users. It only takes into account the tariff increase to industrial user which already came into effect 1-Jan-2023. Many factories in Penang already use water with higher rates since then, but since water cost is too little vs. overall cost, these factories still generate higher profit generally speaking.
Penang gov owns 69.5% the rest r FF banks n many high-net-worth individuals including dr neoh.soon.kian. Exactly like WCEHB, PBA has ZERO local fund or fun as s/holders. When FF play it up n UP soon, the local funds will follow U... dated on March 29th, 2023 on page 233 of annual report 2022.
note this hydro n solar biz, if PBA has big plan to grow it big for Penang state:
PBA GREEN TECHNOLOGY PBAHB incorporated a new 100% owned subsidiary called “PBA Green Technology Sdn Bhd” (PBAGT) on 12.12.2018. PBAGT was set up to take on projects in the fields of hydro and solar power.
The main objectives for the renewable energy initiatives are to:
Explore renewable technology projects at PBAPP’s water supply installations, in support of the Vision 2030 aspiration of making Penang a “family-focused smart and green state that inspires the nation.” Offset or reduce PBAPP’s energy costs by generating “green energy” that may be exported into the national grid. Unlock the energy generation potential of Penang’s water supply installations, without compromising core water supply operations, safety and the environment.
Suruhanjaya Perkhidmatan Air Negara (SPAN) in its 2021 annual report on page 48:
Penang has been granted permission to implement a tariff increase exceeding 30%. This allowance is aimed at enabling PBA to meet the future capital expenditure needs. Despite the tariff increase exceeding 30%, the expected impact on users' monthly bills is anticipated to be not significant due to the existing low tariff rates.
It does not seem to be possible to leave a comment at the bottom of your blog post, so I just post my queries here.
May I know if you have a breakdown of revenue for domestic and non-domestic consumers of PBA? This is to estimate how much revenue increase should PBA secure a water tariff hike for domestic consumers.
Do you expect the positive tax rate to continue in coming quarter(s)?
Posted by dollardollarbill > 19 hours ago | Report Abuse
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....
chamlo
1,288 posts
Posted by chamlo > 2023-11-16 14:13 | Report Abuse
Profit abundant? Why dividend no increase abundant?