gimmy2ulong term perspective in fiber optics industrial is on up trend for global demanding in positive growing !
MaBadrinext week will be goreng goreng sampai tuju langit. add some bllet at 0.84
rica7894Amended. <<<< A Dominant Local Player in Fiber Optic Cables>>>>
Opcom is estimated that it has approximately 65% to 75% market share for fiber optic cables in Malaysia, making it the leading player in the segment.
OPCOM had been flattish for FYE 2015. However, OPCOM had been seeing a strong growth in the 1Q FYE 2016 which was driven by the 3-year contract secured with Telekom Malaysia Bhd (TM) for supply and delivery of cable and related systems ( RM 210m). While this is just the start, OPCOM will definitely benefit more from the launch of the high-speed broadband phase 2 (HSBB2) and sub-urban broadband projects. The 10-year contracts are worth RM1.8bil and RM1.6bil respectively. This, in turn, means Opcom will see a constant and stable demand and growth for fiber optic cable and solutions from TM in future.
To recap, the HSBB2 and SUBB projects were already tentatively awarded to TM, further details with regards to government grant and tax incentives (if any) are still lacking. According to TM management had earlier said that further details and formal award of the two projects should be concluded by Nov this year (2015). TM is expected to invest RM1.8bn in HSBB2 over 3 years and RM1.6bn in SUBB over 5 years.
According to the 11th Malaysia Plan, the HSBB 2 proposes to cover all state capitals and selected high-impact growth areas that will see 250k ports encompassing 410k premises by end-2016. It also eyes 100Mbps broadband being made available to all households in the areas involved by 2020. On the other hand, under the SUBB initiative covering suburban and rural areas, it is targeting additional 420k ports encompassing 750k premises will be installed within five years from the start of the project with 20 Mbps broadband made available to 50% of households by 2020.
-As at 30 June 2015, Opcom has net cash of 25 sen per share.
-Strong and favorable political ties.
Focus is on Dato’ Seri Mukhriz Mahathir who is the largest shareholder while his brother Tan Sri Mokhzani Mahathir is the Chairman and Chief Executive Officer of the group.
-Expand its overseas business.
Opcom unit Opcom Niaga Sdn Bhd’s move last year to buy a 40% equity in Unigel (UK) Ltd, in which Executive Director Eric Chhoa has a controlling 60% stake, will help expand its overseas business. Unigel manufactures thixotropic gel at two plants in the UK and US that is sold to over 60 customers globally in the fibre-optic cable industry. The increasing fiber optic cable production globally means increasing demand for the gel, especially from developing countries in Asia. OPCOM expects its investment in Unigel to bring positive contribution to OPCOM Group results. Eric Chhoa said the acquisition would contribute positively to the company’s profit as Unigel’s profit was expected to average around US$1.5 million for the year of 2015.
tkhe1313I believe first TP is at 0.93, second TP at RM1.05 Given the strong orderbook and political ties, this counter can never die. The upcoming results which will be announced in few days, should be pretty good!
MaBadrihu hu hu tired already. bila mau start the engine