With a weakened market sentiment, it is now the time for investors to hunt for bargain on Bursa, especially on companies that are not known for all, yet.

One company that many investors may have missed would be Handal Energy Bhd (7253), which is only trading at RM39.7 million in market capitalisation at the time of writing.

Back in 2018, Handal Energy had experienced an emergence of substantial shareholders and management, namely Borneo Seaoffshore Sdn Bhd and the CEO of Wah Seong Corp Bhd.

The initial plan was to turnaround Handal Energy over a span of two years, but the plan was however being interrupted by Covid-19 in the year of 2020.

Now, if you look at the recent announcements of Handal Energy, there are two things that you must take note of:

i)                    Renewal of Related Party Transaction (RPT) Mandate over AGM

ii)                   Acquisition of shares in the open market by the major shareholder

When one looks at the financials of Handal Energy, it is obvious that the RPT is proposed to help the company instead of taking away the resources of the company.

There is a reason why the company chose to renew the RPT Mandate at this juncture, but nothing was made public yet.

And in March, two major shareholders of the company had acquired even more Handal Energy shares in the open market, why do so if the company’s fundamental is not promising?

Looking at the share price of Handal Energy, it seems like the it is currently bottoming up, in-conjunction with all the information we have above.

What exactly is brewing in Handal Energy at this moment?

Can we seize this opportunity to buy below the costs of the new substantial shareholders that emerged back in 2018?

I think this is time for serious investors to look into Handal Energy.