With a Long term price target of RM7.5 and a Short term downside risk of -5% to -8%
Greatech Q3 earnings disappoints. Lower than EPS estimates. However, the prospect of further expansion remains bright and thus we expect minimal selloff for Greatech.
true purebull, full mco was 1 of the reasons..also mentioned in the qr :- "There were some rescheduling from customer to postpone the equipment installations due to the introduction of strictest lockdown measures by certain country."
''strictest lockdown measures by certain country''...
Mr. Powell has clearly telegraphed that officials at their two-day meeting ending Wednesday will sign off on plans to steadily reduce their $120-billion-a-month bond-buying stimulus this month, with an eye toward phasing the purchases out by next June. With that settled, investors have turned their attention to when the central bank might raise interest rates from near zero.
Economists at Goldman Sachs last week changed their rate-path forecast to show the Fed raising rates from near zero next July, roughly a year earlier than their previous forecast. They expect the Fed will raise rates sooner because the current interval of higher prices will persist into the middle of next year, even though they still expect inflation to fall to 2% by early 2023.
From January to September of 2021, the output of silicon metal increased by 39% year-on-year, and the annual output is expected to reach a record high of 2.78 million mt.
SHANGHAI, Oct 28 (SMM) – From January to September of 2021, the output of silicon metal increased by 39% year-on-year, and the annual output is expected to reach a record high of 2.78 million mt.
The insufficient power supply will inevitably lead to a decline in the output in Q4. The impact of the dual control of energy consumption is more significant on the supply of silicon. The major silicon metal producing regions including Yunnan, Xinjiang, Sichuan will have to cut the production, where the silicon plants cannot maintain the normal production from September to November. The power shortage also restricts the production. The downstream production in the major silicon consumption areas in east and south China has been mostly resumed after the short-term production restrictions.
The silicon metal production in Yunnan and Sichuan will decline in Q4 due to the upcoming dry season. The large plants in Xinjiang will also lower the operating rates due to the power shortage and the control of energy consumption. China’s output of silicon (Si content ≤ 97%) and secondary silicon totalled 240,000 mt from January to September 2021, which will supplement the shortage in the silicon metal supply. The lower overseas prices encouraged the imports. The total silicon import volume reached 4,000 mt from January to September 2021, up 782% on the year.
The seasonal increment in the silicon metal inventory in end 2021 will be far lower than the 10-year average
The higher domestic demand and declining exports will lead to the lower port inventory of silicon metal. The increment in the silicon metal inventory is lower than the 10-year average level in 2021, and a new inventory cycle has started. The total social inventory in end-2021 is expected to stand at around 70,000 mt, down 13%.
Prices of silicone and polysilicon rise along with silicon prices
Siloxane: The strong demand has boosted the silicone prices to hit a record high, and the mainstream prices are correlated to the silicon raw raw material prices. The domestic supply continues to make up for the overseas supply gap. The DMC prices are expected to stand at 50,000-55,000 yuan/mt.
Polysilicon: The skyrocketing silicon metal prices have pushed up the polysilicon prices. However, the silicon prices may pull back due to the low downstream operating rates in November and December.
The surging silicon prices change the aluminium alloy pricing models
Secondary aluminium alloy: The power curtailment, supply shortage of aluminium scrap, high silicon prices, chip shortage for cars, and other factors affect the operating rates of secondary aluminium alloy plants.
Primary aluminium alloy: The prices of silicon, the major auxiliary material, have surged, and the primary aluminium alloy producers have suffered the losses. The aluminium alloy prices are settled based on the silicon prices.
The production and sales of automobile continue to grow. The production and sales from January to September 2021 increased by 7.5% and 8.7% respectively.
Profits of silicon metal export turn positive, the control on the foreign exchange affects the overseas quotations
The silicon metal exporter suffered significant losses from May to July, and the losses narrowed in August, then turned into profits in October.
China's silicon exports in September 2021 were 72,000 mt, up 6% month on month and 32% year on year. The exports totalled 605,000 mt from January to September, up 40% year on year.
The demand growth rate of silicon metal stand at 21% in 2021. The production of the new capacities of the silicone and polysilicon is worth attention.
There are 800,000 mt of new capacities of silicon monomer have been put into production in 2021, and the exports in 2021 are expected to be near 800,000 mt, up 29% year on year. The capacities of 140,000 mt will be put into production in Q4 2021. The total silicon material output is expected to reach 480,000 mt, up 22% on the year. The total output of cast aluminium alloy in 2021 may grow by 9% on the year. The annual growth rate of the total domestic and overseas demand of silicon metal is expected to be 21% in 2021.
Price forecast
There is basically no new capacity of silicon metal in 2021. The new capacities will be put into production intensively in the rainy season in 2022.
The new capacities of silicone monomer and polysilicon will be put into production mainly in Q4 2021- H1 2022.
The shortage of the silicon metal supply in H1 2022 will depend on the power supply in the dry season in south-west China and the downstream production capacity.
The downstream production expands rapidly amid the stagnated low supply, and the the shortage will intensify in 2022.
The silicon metal prices will remain in an upward trend under the dual carbon policy, and the pricing logic of resource-based commodities will be changed. The silicon metal prices may rebound in November amid the shrinking supply, the recovering demand of aluminium alloy, and the overseas restocking before the Christmas holiday. However, the prices may decline in December as the silicon plants will reduce their stocks. The silicon prices will stay high until the rainy season in June 2022, and the upward trend of the prices may extend until 2023. The delayed commissioning of the silicone and polysilicon capacities, the shrinking consumption of the silicone after the pandemic, and the new capacities to be put into production may bring risks to the market.
The shortage of production capacity will suppress the silicon output, and the low grade of raw materials may drag down the output of high-grade silicon. The silicon supply is expected to remain tight in the short term. Most of the silicon metal consumption was in the silicone and polysilicon sectors, while the consumption in the aluminium alloy and export sectors declined. The tight supply has weakened the profits of the silicon metal users, and the upstream companies in the silicon industry started to profit.
Uncertainty over who will lead the central bank next year further muddles how the Fed might manage interest rates if inflation stays elevated. President Biden hasn’t said who will serve as Fed chair after Mr. Powell’s term expires in February.
In the recent past, presidents have announced their picks by this point on the calendar to ensure the Senate can confirm the nominee with ample time. Mr. Biden last week interviewed Mr. Powell and Fed governor Lael Brainard for the job and has said he will announce his decision soon. Both Fed officials have taken a similar view this year about the likelihood that inflation pressures would wane on their own.
Hotter inflation “is unlikely to endear Powell to the White House” and would be seen as strengthening the case for replacing him if the other leading candidate for the job, Ms. Brainard, hadn’t staked out a position this year favoring even looser monetary policy, said Krishna Guha, vice chairman of Evercore ISI, in a note to clients on Wednesday.
High inflation also increases the prospects that Republicans will be united in opposition to any of Mr. Biden’s nominees except for Mr. Powell, who has received several endorsements from lawmakers in both parties. “With no margin for error in the Senate,” said Mr. Guha, “Biden could face real difficulty getting a Powell replacement confirmed.”
Greatech Technology Berhad to hit 10 billion valuation as foreign inflow into emerging markets all across Asia resumes after the worst 2-day stock rout on Nasdaq.
Pretty steady counter. Will hold it out since TP is between RM7.70 to RM8.80 ... with the book order in place, and expansion plan, I would say that this is a promising counter and shan't disappoint.
If U worry about Greatec...u may consider palmoil stock as next best alternative loh!
The following write up summarize why is it palmoil stock offer the best investment & investor protection loh!
Do not listen to the good for nothing stock analyst who have vested interest loh!
Investment into farmland or plantation is the best defensive investment strategy now loh!
Invest now...b4 its share price rerate & shoot up mah!
U see...sifu calvin should continue to promote plantations share when there is still deep margin safety for plantation stock mah!
This is the very safest strategy mah!
No need to heed the naysayers complaining spamming mah!
Bcos naysayers had very bad ulterior motives mah! Remember why investing into palmoil stock is greatleh ??
Plantation land beside having huge tract of cheap land to protect us against rampant inflation, it also produce food and also provide good & safe dividend yield of 3% t0 6% pa much superior compare to fixed deposits of yield less than 2% pa.
Remember why investing into palmoil stock is greatleh ??
Plantation land beside having huge tract of cheap land to protect us against rampant inflation, it also produce food and also provide good & safe dividend yield of 3% t0 6% pa much superior compare to fixed deposits of yield less than 2% pa.
In other words plantation is a perfect investment at the moment loh!
Posted by calvintaneng > Nov 6, 2021 5:28 PM | Report Abuse
Intrinsic99
I have read all the argument broth forth by the Naysayer IB Bankers
None of them is true
See our Friend reply
Posted by Johnzhang > Nov 2, 2021 9:57 AM | Report Abuse
IBs and many pessimist are relentlessly worried that CPO price will fall since the day CPO reached $3,000/- in 2020. CPO reached $5,350 now! Should investors be too concerned if CPO price correct down from today's level ? I would like to share the year's high (H) , low (L) and the simple average (Avg) from year 2008 to 2021as below : 2008. $4179 (H) , $1403 (L) , $2791 (Avg) 2009. 2887,. 1630. 2259 2010. 3782. 2386. 3084 2011. 3930. 2786. 3358 2012. 3567. 2027. 2797 2013. 2635. 2157. 2396 2014. 2917. 1933. 2425 2015. 2360. 1802. 2081
2021's H is 29% higher than the highest H (2008) 2021's H is 66% higher than the avg H 2008-2019 2021's L. Is 147% higher than the lowest L (2008) 2021's L is 72% higher than the avg L 2008-2019 2021's Avg is 68% higher than the Avg 2008-2019.
Despite the above , all plantantion counters stock prices are 20-50% below the highs achieved in 2008 -2020 period . Mind boggling indeed.
So, why should there be worries if CPO price indeed correct for 10-20% next year ?? 02/11/2021 9:54 AM
Stock: [TAANN]: TA ANN HOLDINGS BHD
Oct 26, 2021 3:22 PM | Report Abuse
The windfall tax is not new . It has been around since 2008. The IBs rating for plantation sector have been like this : When CPO $3,000 , price will fall to $2,500 , neutral rating When CPO $3,500 , price will fall to $2,700 , neutral rating When CPO $4,000 , price will fall to $2,800 , neutral rating When CPO $4,500 , price will fall to $3,000 , neutral rating When CPO $5,000, price will fall to $3,200 , neutral rating When CPO $5,300 , price will fall to $3,300 , neutral rating Listening to IBs will bring you to Holland !
NOTE: JOHNZHANG SAID: "LISTENING TO IBs WILL BRING YOU TO HOLLAND
(NO WONDER 90% OF THE MARKET RETAIL PLAYERS YEAR AFTER YEAR LOSING MONEY LISTENING TO IB BANKERS: 90% OF RETAIL PLAYERS LOSING MONEY DECADE AFTER DECADE LOSING MONEY LISTENING TO IB BANKERS
(BETTER WAKE UP! STOP LISTENING TO IB BANKS)
Posted by Johnzhang > Oct 8, 2021 12:50 PM | Report Abuse
I am pleased to share the projected full year (2021) EPS and the prospective PE of some of my favorite plantation counters. The Projected EPS is based on actual 1H + Q3+Q4. Q3 EPS can be estimated fairly accurately as Q3 avg CPO prices is known and production numbers are mostly available . I also make the assumption that Q4 EPS is same level as Q3 for reasons that ASP Q4 seem to be even higher and labourers for plantantion sector are coming in to maximize crop recovery. Given that Nov/Dec is usually seasonally lower crops, but the higher ASP and labour availability should be enough to offset that, On above basis , the FY 2021 EPS and prospective PE based on yesterday closing share price as as follows:
Bplant. EPS 9.6sen , PE 7.1x THplant. EPS 16.5sen , PE 4.4x SOP. EPS 73.0sen. PE 5.3x MHC. EPS 20.9sen. PE 4.5x Cepat. EPS 13,9sen. PE 5.2x Swkplt. EPS 48sen. PE 5.2x Taaan. EPS 67.9sen PE 4.6x Hsplant. EPS 23.6sen. PE 9.3X.
Historical PE for plantation counter is 15 to 25x As such, plantation counters are seriously underappre
USD is strengthening against the RM. All exports driven sector like Glove, Export orientated Techs, Palm Oil and Energy will benefits from this development.
We are now into the final month of the year 2021 - hope this year has been a good for everyone ...
I think this question is probably in the minds of many, "is the stock market going to see a year-end rally, and a good end to the year 2021?"
Personally, I feel that it will very much depend on how the new Covid-19 variant in Omicron develops (remember last Friday, when the news about this new variant broke out, the major Indexes fell by more than 1+%.)
If this newly discovered variant is found to be not as dangerous as initially feared, then chances are high that we'll see a bullish rally all the way into the new year 2022.
On the other hand, if the variant is found to be not only highly transmissible, but at the same time may result in serious illnesses or even death (after contracting it), and that the current vaccines do not offer a good protection against it, then we might see a bearish end to the current financial year.
Moments like this is where good and weak investors are defined. Personally I don't see any fundamental reason to sell as fundamentals are set. Any one has any?
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....
wallstreetrookie
9,784 posts
Posted by wallstreetrookie > 2021-11-02 07:24 | Report Abuse
Greatech Technology Berhad Maintain Neutral
With a Long term price target of RM7.5 and a Short term downside risk of -5% to -8%
Greatech Q3 earnings disappoints. Lower than EPS estimates. However, the prospect of further expansion remains bright and thus we expect minimal selloff for Greatech.