Tomorrow not sure how the qtr result. If back may drop further. The share conversion at 0.116 also dump into market on 15/11 bout 0.13 x 8mil unit but seem absorbed by market.
It might be a while before the company could turnaround its financial performances. The company has been losing money since FY13 mainly due to the disruption causes by the 60MW thermal Libaran Plant in Sabah. Most of the disruptions were related to the ageing assets of the plant itself. Since 2013 the plant has never been able to operate at full capacity as the reparation works of the plant has yet to be completed till this day. The plant still only uses 2 out of the 4 diesel engines that it needs. Reparation was slow due to lack of funds.
Things just got worst in FY15 when its Sungai Kenerong Hydro plant in Kelantan was highly affected by the major flood occurred in late 2014. Most of the transmission lines and pipelines were heavily damaged. Reparation works has yet to be completed mainly due to the lack of funds as well.
As you imagine, this has affected the company financials in particular the company balance sheet strength. As of Sept 18, the company has a total of RM405mil in assets but only RM47 mil are current asset (of which RM7.4mil only is cash). Total liabilities stand at RM162mil but RM111mil are current liabilities (of which RM51mil is debt). The company will most probably face liquidity issue in the future.
Management has come up with a fund-raising exercise via Redeemable Convertible Notes to Advance Capital Partners Asset Management (ACPAM) for a total of RM60mil. The interest rate is really low at only 1% which at first, I thought was great. But the issue is that the conversion terms to ordinary shares for ACPAM is very favourable to them. They are able to convert the notes anytime within the 3 years at a price of 80%- 90% of an average of 3 days closing price taken from a range of 45 days before the conversion decision. Floor price of conversion is 12 sens. Let say the whole RM60mil is converted into shares at the 12 sens exercise price. This would mean there will be an additional 500 mil shares to be issued later vs the current 378mil shares. This means any upside potential for current shareholder might be diluted later. And given the favourable terms, ACPAM would prefer for the share price to be depressed for them to get the lowest conversion price. Once they see the share price rallying, then they will convert and most probably sell the shares straight away. Refer to the circular on the notes below:
That being said, till now ACPAM has only subscribe RM3mil out of the RM60 mil which itself is worrying as well. Even at favourable terms they still hesitate to subscribe to more of the Notes. Why?
If you are looking to diversify your portfolio outside of the power industry (due to the current industry sentiment), I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.8x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
High NTA. With 404M worth assets. Liabilities around 162M. 404M discounted 30% disposal price and deduct the liabilities each share can get about 30c. Wat to worry?
Muhyiddin recovering well after cancer surgery Tan Sri Muhyiddin Yassin, who is undergoing chemotherapy after a bout of pancreatic cancer, says he is well on the road to recovery. PAGOH: Home Minister Tan Sri Muhyiddin Yassin, who is undergoing chemotherapy after a bout of pancreatic cancer, says he is well on the road to recovery. "Alhamdulillah (Thanks be to God), I am 60 per cent recovered after undergoing a surgery to remove a growth on my pancreas and several sessions of chemotherapy," said the Pagoh member of parliament here today. Muhyiddin also said he has undergone four out of eight rounds of chemotherapy. It was reported that the treatment would last six months to prevent a relapse. The former deputy prime minister also said he was fully ready to continue working and serving the country. "Actually, it has been a long time since I gave a speech but today, I would like to let the people of Pagoh know about my health. The doctors confirmed that I had first-stage pancreatic cancer and advised me to remove the tumour. "Forty per cent of my pancreas has been removed. My duodenum and bile duct was also removed. I need four more rounds of chemotherapy within the next four months. "Alhamdulillah, I can now visit my constituency after the first four sessions of chemotherapy. I can now attend Cabinet meetings, party meetings and chair meetings on foreign immigrants," he told constituents during a meet-the-people event at Pagoh Multipurpose Hall here today. Present were his wife Puan Sri Norainee Abd Rahman and Johor Health, Environment and Agriculture Committee chairman Dr Sahruddin Jamal. More than 600 constituents attended Muhyiddin's event. This is his first public appearance in Pagoh since undergoing a surgery Mount Elizabeth Hospital in Singapore on July 12. The Parti Pribumi Bersatu Malaysia president said his health continued to improve after resuming his duties as Pagoh MP on Aug 14. "When I was unwell, felt week, dizzy and vomitting, I took lots of rest at home and focused on performing acts of worship. "But when I felt stronger and told my doctor I wanted to return to Pagoh, he was worried that I might catch an infection," he added
finalllyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy, i sold at 15 cen. dammnnn. earn half cen. =D if u see back the comment.. is like 2018 i been waiting till now
Muhyddin son is in the company, what to worry, sure fly to break 15 today, moreover based in Sabah and Sarawak which has so much economic news nowadays....
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....
Ahead1268
768 posts
Posted by Ahead1268 > 2018-10-18 13:00 | Report Abuse
This is just ikan bilis goreng for kopi money. Don’t get trapped.