444444444444444 Top management direction 44444444444444 
Personally, I have strong believe in its current top management which led by Dr.Chia and Mr Leong. As you know QL Resource Bhd is controlled by the Chia family and it was came out tops at The Edge Billion Ringgit Club(BRC) Corporate Awards in July 2011. Just came in very short times in Bursa exchange QL Resources managed to beat many larger companies with deeper pockets, not only exhibited entrepreneurial success, but won judges with qualities elements that proved it a socially responsible corporate player. certainly, there's the strength refelcted in the strong reflected in the strong gains in its share price and profitablity the past few years. 

I was so amazed and touched by Dr.Chia's remarks on how a classic rags to riches story. No other magics but the whole team from top-down holding the same belief to persist their core values to drive force behind their new found recognition. The core values been practised such as innovative thinking, cooperative teamwork and "integrity in the actions and decisions. The remarks garnered applause from the audience when Dr.Chia promised to strengthen their strong business acumen, execution capability, good ethics and the most is " an unshakable belief in creating value for all stakeholders, or reward monetary value for ALL. 

Market experts put strong believe and opined that Dr.Chia and Chia family will replicate the success story again to BOILERMECH. As you will notice that QL Resource Berhad and BOILERMECH have the similar "SALIENT" traits which is able to make them "outspoken" in the next few years. QL Resources Berhad is today's No.1 Forzen foods (surimi based products) in the market and appeared as No.2 Largest Eggs producer in the nation. 
Similar "SALIENT" trait has been found in BOILERMECH when it was today's No.1 biomass boiler manufacturer in Southeast Asia and Top player in renewable energy solution for Heat & Power generation boiler market leader. Remember that company has preferred “to stay as a big fish in a small pond” and used that time to quietly build up its business before they ready for the “big sea” quoted by company MD. 

With those competitive advantages BOILERMECH is believed to be able to gurantee double digits CAGR, double digits Net Profit, dividend for its loyal long term investors. 

For ChinaMan business like respected Mr.RobertKuok, Dr.TehHongPiow, Tan Sri Dr.Yeoh and off course Dr.Chia. They always failed in fancy Vision & Mission salesman talk but they have achieved exactly infinite times more than those fancy corporate players' achieved. 
Do you really want to invest BIG in a counter when the President told you they want to be BIG and WELL KNOWN internationally, as a result margins and dividend was trimmed due to "unfeasible expansion" just to achieve "Market Presence" without any positive values return. Do you really want to invest in a counter when the President tell you they wanted to turnaround the business this year after 3-5 years big losses, as a result more bleeding occurs with your paid up investment capital. 

For QL Resources Berhad and BOILERMECH the Chairman's strategic direction and approaches are as simple as sharp, clear and easy comprehensive that would be more effective to be cascaded down to all employees. 
"FORGET ABOUT ALL PERSONAL AGENDA AND INTEREST IN THIS GROUP, OUR ONLY MISSION AND VISION HERE IS TO DELIVER DOUBLE DIGITS GROWTH AND PROFIT MARGINS FOR ALL OUR VALUABLE SHAREHOLDERS". 
A smart brilliant long term investor like you, you judge yourself. 


5555555555 Hidden opportunies for long term investment 5555555555 
Before we kick off to explore more to unclock their intangible opportunities in future. Please allow me to remind you that when you want to screen and compare its peer valuation you may collect the sample pools according to Unimech, CBIP(bought over Vickers Hoskins) and Mechmar Boiler. Please allow me to go through some technical sharing so you can have better "feel" about how explosive this boiler making business. 
******What is boiler? What so crucial about steam generated by Boiler for industry? 
-Boiler is a vessel to produce steam mainly. Generally, there have 3 types boiler capacity in the manufacturing world which is divided to Low Pressure Boiler(<40bar), Medium pressure Boiler(40-60bar) and HIGH pressure boiler (>60bar). BOILERMECH involve more in Medium to low pressure boiler business.Boiler is described as the Heart of palm oil mill and refinery. Try to imagize how importance the HEART(jantung la) in your body so does it reflect the same importance in palm oil mill and palm oil refinery. Boilers in the palm oil mills can be integrated with turbine to produce electricity for self usage. Feel free to ask should you interested to know more about its technical usage. 

*******What is first, second and third generation energy source? 
First generation boiler uses Fuel oil(Hevay fuel/MFO/LFO), Natural Gas, coal as the feedstock to burn. Second generation widley consume biomass(EFB/Shell/Fibre) as feedstock to biomass boiler. The most advanced technology third generation boiler is to use hydrogen, jatropha and algae as burning feedstock into the boiler. BOILERMECH will benefit from the mother company-QL Resource on its patented biomass pallet technology. 

Opportunities Rationales:::::::::::::::::::::::::::::: 

1) Way before 2011 with total Revenue(RM150m) they need to deliver 8 new boilers every month. In 2012, the have expanded the production capacity to an average of 10 boilers and the Revenue was RM160m in 2012 and RM242m in 2013. From 2014 onwards, they going to produce an average of 12 new boilers and the anticipated Revenue would be around RM260-280m. 


2) Boiler market (by estimation) 
````Malaysia per annum CPO capacity 19 million tonnes 
````we need about 400 palm oil mills and 52 refineries, if palm oil mill required 2 units boilers and refinery needs 2 units. The calcuation would be: 

(400 X 2) + (52 X 2) = 904 units 

Lets assume only 80% are active players so 904 units X 80% =723 units 
```Indonesia per annum CPO capacity 2 times of Malaysia's (27 mt) 
```Nowdays ppls tend to build bigger Capacity oil mill and refinery so the total boiler units number will be decreased. I woul like to normalise the Indonesia palm oil mills and refineries as such: 

(904 units) X (1.3 times(not 1.5 times as projected)) = 1175 units 

For Indonesia most are the players are in active mode due to the rapid market growth for edible oil consumption as well as biodiesel consumption. 

Total Malaysia and Indonesia estimated boilers = 723+1175 = 1898 units. 

Market experts estimated that BOILERMECH will get at least 20% of the total packages for new boiler replacement sales, repair & maintenance and the calculation would be: 

1898 units X 20% = 397 units (too busy order book with this number if only able to produce 12 units per month) 
````If I want to compare with Malaysia the capacity of Papa new guinea = 0.6X, Vietnam=0.2X for manufacturing and Africa= 1.4X for next 5 years have quite attractive numbers so it could guarantee a prominent financial performance in the next 7 years. 

3) The QL Palm Pellet business is a rising star in the 2nd generation steam and power generation sector because they can secure good contract to lease their biomass boiler and long term procurement contract in supplying pelletized biomass for their customers. The Vietnam and MYanmar are rapidly opened up by international players to invest and transform it into next agricultural based processor. Again, explosive opportunities will be witnessed by long term investors in near term. 

4) IPPs - BOILERMECH is taking initiative talk with goverment to assess the feasibility study to supply electricity to government by converting waste into energy. Industry experts however possess positive comments into this as the pioneer batch will always enjoy a more attractive remuneration packages. 


666666666666666 Conclusion 666666666666666 
The SWOT analysis has shown great potential and I hope to see they transform the entire Opportunities into their Strength in future. I am very excited to call upon all my respected followers to keep this BOILERMECH long and keep on leverage at lower price in the next 3 months because it has opened up the low entry price for investor when global CPO oil price is dropping. Lastly, with this good defensive yet attractive counter you will be rewarded with handsome "share price appreciation" and "dividend yield'. 


Invest in good FA stock so you can sleep well over the weekend and off-trading days! 

Happy reading and warmest regards,