12 May 12018 : Construction and road maintenance company Protasco Bhd (Bursa 5070) once again ran through a full Pro-Barisan National Election Campaign, openly showing off Protasco's "Managing Officer No1" (MO1) support and photo sessions with former Prime Minister Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, and his political driven support on former Prime Minister's PPA1M Affordable Housing Project.

Protasco MO1 giving credit to the then Prime Minister and his hardcore supporters, Ali Hamza and Tengku Adnan was believed to be MO1's personal agenda driven to justify his existence and relevance in dubious personal benefits taken from Protasco Bhd. Protasco MO1 betrayal to Protasco former owner and public investors trust had driven the stock price to close at the all-time low of RM0.75 per share since Protasco MO1 took power. (MO1 on December 2012 resumed power in Protasco Bhd, or 6 months after being power-stripped by Protasco former owner on June 2012.)

Protasco share price vs Protasco MO1 potential "self-gratification evidence":

Source: https://klse.i3investor.com/blogs/bursacannibal/141944.jsp

Protasco's Core Team Insider "whistleblower" Leak Proven True?

Insider knowing the matter had earlier pre-election, on 7 May 2018 given information to the social media on Protasco Bhd's Chong Ket Pen public relation campaign agenda, which is by manipulating "political-controlled" newspaper with the motive to support Barisan National and now former Prime Minister Najib Razak politically-driven PPA1M program. Chong Ket Pen due to his personal name-cleaning agenda tried very hard to rope in PDRM name through Kop Mantap (Police Retiree Association) into the pro-Barisan National election campaign. Such non-economic driven power and resources abuse in Protasco, with insider naming Protasco MO1 being the main culprit, has caused some of MO1's core team member to call it a quit and leaked ahead of GE14.

(reference on 7 May 2018 article "Protasco Bhd's PPA1M-POLIS GE14 Pro-Barisan National ShowBiz a blessing or curse of Kleptocracy? What might happen after GE`14? https://klse.i3investor.com/blogs/bursacannibal/155963.jsp ")

With former Prime Minister's daughter went to the public accuses ousted Malaysia PM Najib Razak of treason, when are Protasco Bhd's insiders knowing the truth and matters confess themselves like former Prime Minister's Daughter before the sky falls?

The source had linked Protasco Bhd MO1 being a "reckless and stubborn" person and out-of-control because he cannot cover up all his potential wrongdoing, including "potential" corruption, fraud, cheating, self-gratification, and breach of fiduciary and statutory duties among the few. The more he tried to cover up, the bigger issue and more potential crime escalate. Sound familiar?

(reference "The former Prime Minister's Daughter accuses ousted Malaysia PM Najib Razak of treason"

https://www.theaustralian.com.au/news/world/daughter-accuses-ousted-malaysia-pm-najib-razak-of-treason/news-story/a73e3525180e035c6ab0a0876b69a53c?nk=3187ae11c9d534ec8b2aea54ae16dc83-1526092233 )

(photo: Protasco insider "board of directors")

Total Clean Up & Dissolved of Barisan National linked "Sinful-Business" : Protasco Bhd on top of the list - The Star Report?

The Star newspaper today announced the list of high exposure former government-favored public listed companies - Protasco Bhd stands out among the larger outfits as the largest living-dinosaur. According to CIMB Research analyst Sharizan Rosely, "We expects the top losers to be Gamuda, for its extensive tender exposure to MRT 3, HSR and highway concessions; YTL Corp for its exposure to HSR and the Gemas-JB rail double tracking; MRCB for its exposure to HSR and the Eastern Dispersal Link (EDL) and; Protasco for its exposure to government road maintenance and housing projects.

The only problem with Protasco Bhd is, the company relied on more than 90% income from government road maintenance contract (which was dubiously obtained/renewed recently ahead of General Election); and the bizarre political-publicity-driven no margin PPA1M housing projects.

Protasco's faith facing serious governance issue and old-fashioned business model would be similar to the now-defunct Barisan National culture and the disastrous ending is too short-lived for investors to react. By reading the current government language, the culprits would be the immediately beheaded, which means all old blood be replaced and instill of fresh blood would save the entire system. Protasco would need a complete whitewash, and all focus would be on Protasco's MO1 and his encumbrance board of directors (Protasco board of directors under MO1 inducement betrayed their former boss in search for personal benefits, today becomes the liability for Protasco survival. A faith similar to Barisan Nation in the political arena at best.) 

Similar to the current "national systematic issue", the serious governance issue inside Protasco having a liability such as Protasco MO1 becomes the poison sinking Protasco as a whole. The money trail and real objective of Protasco MO1 are already publicly known, with or without taking "selfie" with PDRM or Chief Police, what is wrong can never be covered up. (reference: https://klse.i3investor.com/blogs/bursacannibal/141944.jsp ). Is it time to clean up and insiders of Protasco knew it very well as evidence from the recent leak.

27 March 2017, Selfie session of Chong Ket Pen and then Prime Minister Najib Razak, as well as Tengku Adnan in Chong Ket Pen's "make friend support" of dubious PPA1M project launching. (source: "Chong Ket Pen "bites the hand who feeds". Any hope for Protasco Bhd? Why EPF is selling? (Translation) 张吉平“过桥拆板”证据。EPF急售原因？（英文翻译版）" https://klse.i3investor.com/blogs/chongplugprotasco/147459.jsp)

Malaysia former Prime Minister Najib Razak (the "selfie buddy" of Protasco MO1) had taken leave and left the country (reference: https://www.straitstimes.com/asia/se-asia/former-malaysia-pm-najib-listed-on-manifest-for-jet-leaving-malaysia ), and the people of Malaysia is not happy with his whereabouts.

Coincidentally, where is Protasco MO1 facing investors and research houses, namely CIMB Research, RHB Research, Melacca Research, PublicInvest Research, whom he "induced, mislead, and sold empty promises" the last 4 years, now proven "fools" taken Protasco MO1's personal agenda driven for granted? The investor in Protasco is not going to be happy with Protasco's ending if MO1 and his cronies still leech within the company, which Protasco insiders believe if not completely wiped out like "MCA or MIC", a faith which pending-dissolved "UMNO" is inevitable.

A "REFORMASI PROTASCO" is in the making, where Protasco's "thousands of civil servants money" taken by 1 person (Protasco MO1), and openly using former Prime Minister and PDRM as the excuses to press power and blackmail while MO1 "loot Protasco" is no more a secret. The stakeholders of Protasco Bhd expect relevant authority (by now) shall be able to take action independently and swiftly without the money influence and (now proven lies) of MO1, under new Prime Minister leadership. "Road maintenance belongs to the people of Malaysia and whoever management it is a civil servant and shall be paid civil servant benefits. This is people's money, not private money for MO1's personal expense and we know how he is going to end after General Election", quoted sources linked to the insider. 

= The Star & Insider Leak =

reference source: https://www.thestar.com.my/business/business-news/2018/05/12/construction-players-face-uncertain-prospects/

Construction players face uncertain prospects

Earnings forecasts may be reversed with possible review of mega projects

THE fate of several of the country’s mega infrastructure projects has come into question, with the new Pakatan Harapan government having pledged in its election manifesto to review projects with foreign participation.

The coalition has deemed some of the mega projects in the pipeline as “wasteful” and unnecessary and has indicated potential investments into smaller-scale transport and utility projects instead.

With this potential review, the prospects of the many local firms which are also involved in these projects have also become uncertain.

Analysts have also factored in some potential contract wins into their earnings forecasts for some firms – all of which may now be reversed.

Among the projects, initiated by the Barisan Nasional government, which are expected to come under review are the three mega rail projects – the RM55bil East Coast Rail Link (ECRL), the RM50bil-60bil KL-Singapore high-speed rail (HSR) and the RM12.9bil Gemas-JB rail double tracking project.

Combined, the cost of these three projects alone total over RM127bil.

Following the win of the Pakatan coalition, it is anticipated that the construction sector will likely see the biggest short-term negative impact based on the new ruling government’s manifesto.

The sector is expected to come under pressure due to fears of delays of contracts or even cancellations of some of these projects.

It has been reported that stocks like George Kent (M) Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png

, Gamuda Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png

, WCT Bhd, MRCB Bhd, WCT Bhd and Gabungan AQRS Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png

 could face pressure in the near term due to these concerns.

At this point, the ECRL, which has been awarded to China Communications Construction Company Ltd (CCCC) is about 13% complete, while the HSR, which is in cooperation with Singapore, has already seen the awarding of two project delivery partner (PDP) contracts worth a combined RM30bil-RM40bil.

The contracts were secured by the joint ventures (JVs) of Malaysian Resources Corp

image: https://cdn.thestar.com.my/Themes/img/chart.png

 Bhd with Gamuda Bhd (MRCB-Gamuda JV) and YTL Corp’s Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd with TH Properties Sdn Bhd (YTL-THP JV), a subsidiary of Lembaga Tabung Haji.

The Gemas-JB rail double tracking, which is also China-led, has been awarded to China Railway Construction Corp, China Railway Engineering Corp and CCCC.

While the project has been approved, it has not been officially awarded yet.

Other mega infrastructure projects in the pipeline include the RM29bil Pan Borneo Highway which spans across Sabah and Sarawak, and the RM40bil-RM45bil MRT 3 (Circle Line).

Phase 1 of Pan Borneo Highway Sarawak, worth about RM16bil, has been fully awarded, while for the RM12.9bil Sabah portion, seven packages worth RM3.2bil have been awarded, leaving another 18 packages to be awarded, with an estimated value of RM9.7bil.

This project, however, is said to be the only one off the reform agenda, with the coalition saying the completion of the two highways will be prioritised.

Apart from vastly improving connectivity in Sabah and Sarawak, the project will benefit mainly local contractors.

Top losers

CIMB Research analyst Sharizan Rosely says there could be downside risks to contractors’ order book replenishment across the board and overall sentiment on the sector could also deteriorate.

“Though it remains too early to assess the actual impact on construction contracts (new and ongoing) under Pakatan, its manifesto, if put into effect, would pose uncertainties on the outlook of job flows, cause delay risks to all the high economic impact contracts which have crossed critical stages of approvals and tenders, and cast a negative sentiment on the sector.

“Our view is that a review of all mega projects and a reform on the existing construction tender and procurement process could, at the very least, result in contract delays,” he says.

He adds that the continuity of contract awards could also be impacted.

Sharizan expects the top losers to be Gamuda, for its extensive tender exposure to MRT 3, HSR and highway concessions; YTL Corp for its exposure to HSR and the Gemas-JB rail double tracking; MRCB for its exposure to HSR and the Eastern Dispersal Link (EDL) and; Protasco for its exposure to government road maintenance and housing projects.

IJM Corp is also expected to be hit due to its exposure to highways and rail contracts.

Essentially, a review by the new ruling government could result in three scenarios for the projects -– status quo; renegotiation of contract terms, leading to a delay in the timeline of the project or; at worst, cancellation.

BMI Research, however, does not anticipate an outright cancellation of projects.

It says the cancellation or revision of large-scale China-backed infrastructure will pose downside risks to the country’s construction sector, which has grown at an annual average of 9% between 2013 and 2017.

“Although we do not believe that the new government will cancel projects outright, we note that there is an increased likelihood for construction – or financing-related delays as it reviews and potentially attempts to renegotiate contracts,” it says.

The coalition has stated in its manifesto that it will encourage continued investments from China and other countries, and that the reviews will mainly be to check weaknesses and corruption. While this should ease some of the concerns as it indicates that the coalition is unlikely to axe projects for the sake of cutting costs, the potential delays to these projects due to the reviews is likely remain the biggest concern for investors.

Read more at https://www.thestar.com.my/business/business-news/2018/05/12/construction-players-face-uncertain-prospects/#boCjufD57JF4PurL.99