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Because alluminium price as per today keep on increasing upward.
As we can see, many new car increase using Aluminium. Luxury vehicles such as Ford, Audi, and Mercedes Benz have increased the adoption of aluminum as a versatile material of choice in body structures including engine, transmission, and wheels.
If we look at PMETAL, then it's no reason to ignore PA.
They both have similar.
First Solar is a very big solar company in USA, its PA client. From our sources we believe that they will renew this contract soon, and with even bigger amount, because BIDEN win the USA election.
1. PA is on a strong recovery trend in technical and fundamental.
2. Alluminium price and demand is increasing.
3. PA doing share consolidate, which we can see VIVOCOM and many other case after split price will goreng up big.
4. First solar is their client, which is going to benefit them even more in future.
5. The price is just waking up, it will continue go up until share consolidate done, and go even higher.
This company is Direct beneficiary from Biden $2 trillion infrastructure package !
Potential MYR Bils Contract Renewal !
.............. From the above, we understand that Second Series 6 Factory in Malaysia already exit ramp in Q1. This helps FIRST SOLAR to expand the manufacturing capacity to next level +38% from year 2020.
The contract ending Q1 2021 (3 Years from Q1 2018).
Will PA Resources get the renewal ? If yes, we expect the contract should be more than RM1bil.
enlightenedAs First Solar forecasted 8.7GW capacity in 2021
2018 - 5.6 GW 2019 - 6.1 GW 2020 - 6.3 GW
Total 3 Years : 18 GW
2021E : 8.7GW 2022E : 9.4GW
Total 2 Years E : 18.1 GW (+50% At least)
Biden's massive $2 trillion infrastructure package is a provision that would require every state to generate all of its electricity by 2035 from fuels that do not produce any of the carbon emissions linked to global climate change.
Such a transition would trigger a massive spending boom in wind and solar power -- at least doubling the pace of investment now.
SEE_Research Alcom /2674 ================================================== In the aluminum industry, the big brother and the King of aluminum business is (i) King - Press Metal /8869 (ii) Queen - PMB Technology /7172
============================================== A lot of the same industry players, have mentioned that there is a close possibility of " merger and acquisition" exercise, for the Press Metal Aluminum Holdings Berhad / 8869
Main shareholders are the Koon Brothers (a) Tan Sri Dato Paul Koon Poh Keong (b) Koon Poh Ming heads the PMB Technology Berhad /7172
Are eyeing for strategic assets in regards to add value to the Press Metal Group, one of the likely candidates, will it be Alcom /2674? 24/03/2021 3:11 PM
After year of slow sales, First Solar looks to rebound in 2021 with focus on innovation, manufacturing
Dive Brief: First Solar's net sales fell from $3.1 billion in 2019 to $2.7 billion due to delays caused by the pandemic, CEO Mark Widmar explained during a company earnings call on Thursday.
Despite higher shipping rates, First Solar cut costs by 10% per watt in 2020, and aims to shave off another 11% in 2021, targeting the development of 500-watt modules.
As the company closes out the sale of its development business, Widmar said First Solar will focus on innovation, cutting costs and improving efficiencies. "As we look into the future with a more focused business model, our pace of innovation will be critical to our competitive strengths," he said.
Despite some increased shipping costs, First Solar CFO Alex Bradley said the company grew its gross margins from 18% in 2019 to 25% in 2020, cutting the cost of their modules by 10% per watt year-over-year.
Improved performance has also prompted First Solar to extend its 25-year power output warranty to 30 years, Widmar said, and he indicated that customers and investors can expect more of the same in 2021, as the company completes the sale of its solar development operations and turns its focus to manufacturing and innovation.
Widmar indicated that First Solar has a multi-junction device in early development that he believes could prove to be a disruptive new technology
Beside this, Widmar said, First Solar aims to reduce costs another 11% in 2021 by reducing materials costs by 20-25% and shipping by 15%. Long-term, he said, achieving the company's goal of developing 500-watt solar modules is a critical piece of the company's cost-cutting strategy
Widmar said the company also aims to expand it's manufacturing capacity, while maintaining the company's emphasis on liquidity. First Solar ended 2020 with $1.5 billion in net cash in the bank.
Maintaining a large bank account balance, he said, has proven to be a key competitive advantage for the company by enabling it to weather market turbulence and to self-fund new projects.
But revenue may also be lower since solar panels sell for as little as $0.20 per watt, implying revenue of less than $2.0 billion annually based on current production levels. The higher revenue you see below is because of the systems business, which is being de-emphasized or sold.
So First Solar may be a smaller, more profitable business on a percentage net margin basis. That's great for a smaller business, but what will First Solar do with its profits and the $1.2 billion to $1.3 billion in net cash that's expected to be on the balance sheet at the end of 2020?
Aluminium Extrusion Market Size Valuation To Hit $91.67 Billion By 2027 Due To Rising Usage in Manufacturing of Solar Panel Frames And High Demand From Energy Sector | Million Insights Published: Jan. 13, 2021 at 8:01 a.m. ET
Jan 13, 2021 (AB Digital via COMTEX) -- The global Aluminium Extrusion Market is expected to reach USD 91.67 billion, by 2027, according to Million Insights, registering CAGR of 3.8 % over the forecast period, from 2020 to 2027. Increasing demand from the energy and electrical sector is a major factor driving the market growth. In 2020, the market growth is expected to hamper due to the COVID-19 pandemic.
Extruded aluminium is majorly used for building high voltage transmission towers in the electrical industry due to its beneficial properties like weldability, high corrosion resistance, and lightweight. These characteristics of extruded aluminium make tower durable along with easy installation which has led to low operation cost and maintenance. The International Energy Agency (IEA) reported that the International Energy Agency (IEA), electricity production is expected to increase globally, especially in Middle East and Africa, and Asia Pacific. By 2020, China is expected to contribute around 20% of global electricity which is anticipated to increase demand for the aluminium extrusion in this country.
Extruded aluminium is widely used for support and manufacturing solar panels frames. Thus, increasing production of solar panels is projected to drive the growth of aluminum extrusion market. Aluminium extrusion is also used in consumer goods applications like consumer electronics, kitchen, railing, ladders, and furniture due to its easy fabrication, cost-efficiency, and lightweight properties.
Further key findings from the report suggest:
• Among products, rods & bars sub-segment is expected to grow with the CAGR of 4.5% in terms of revenue during the forecast period due to increasing demand for electrical industry.
• The building & construction application segment accounted for the highest revenue share of 60.7%, in 2019. This high revenue market share is attributed to rapid industrialization and urbanization in developing regions such as Middle East & Africa and Asia Pacific.
• The electrical & energy application segment is expected to exhibit at a CAGR of 4.8% in terms of revenue during the forecast period due to growing demand from electrical and energy sector.
• In 2019, Asia Pacific accounted for the largest market share of 74.4% in terms of revenue owing increasing number of smart city, metro, and defence projects in China and India.
• New plant set up and capacity expansion are major strategies adopted by the leading players in the aluminum extrusion market.
PA's technicals are very promising. a breakout above the symmetrical triangle and the sustaining of price above breakout point for 3 says. MACD GC all points towards PA scaling new heights
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....
Mikecyc
46,796 posts
Posted by Mikecyc > 2021-04-08 15:53 | Report Abuse
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