REAL winner of RM21.6 billion NFCP

firerain

Publish date: Fri, 20 Sep 2019, 01:44 AM

I posted my 1st article about REDTONE last month,so far i was very right.

i am so excited about future prospect of REDTONE and wish to share more information in my 2nd article.

To make things easier,i'll share some copy paste information about REDTONE,with some Highlight and my personal remark,hopefully it will be useful to investors who wish to make some profit from NFCP.

1.)Result improved as expected,dividend as another positive surprise:

Redtone announced excellent two month result last month,the quarter have only two month because REDTONE had changed Financial Year from 30 april to 30 june.As a result,FY 2019 will have 14month instead of 12month,but will be normalize in FY 2020,which starting from 1 july 2019 until 30 june 2020.

The fantastic two month result shown as below:

SUMMARY OF KEY FINANCIAL INFORMATION
30 Jun 2019

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		Two Months	Two Months	Fourteen Months	Fourteen Months
		01 May 2019 To	01 May 2018 To	01 May 2018 To	01 May 2017 To
		30 Jun 2019	30 Jun 2018	30 Jun 2019	30 Jun 2018

		$$'000	$$'000	$$'000	$$'000
1	Revenue	32,534	0	211,459	0
2	Profit/(loss) before tax	8,852	0	33,294	0
3	Profit/(loss) for the period	6,997	0	21,369	0
4	Profit/(loss) attributable to ordinary equity holders of the parent	6,478	0	21,840	0
5	Basic earnings/(loss) per share (Subunit)	0.84	0.00	2.85	0.00
6	Proposed/Declared dividend per share (Subunit)	1.00	0.00	1.00	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	0.2145		0.1854

PERSONAL REMARK:

●The best quarter result recorded in last 3 years even with only two month.

●No "paper profit" from exceptional items,means all the profit recorded is "real profit" and the growth momentum is sustainable in coming quarters.

●Two month EPS of 0.84cen.if we annualise the figure,it will be 5.04cen(6x0.84).

●1 cen dividend announced,the 1st payput since 2015,marking the strong result and balance sheet is bearing fruits for shareholders.

2.) REAL winner of the RM21.6 billion National Fiberisation and Connectivity Plan (NFCP).

Please read the news and bursa announcement below carefully and try to discover the hints yourself:

National Fiberisation and Connectivity Plan (NFCP) approved by Cabinet, will cost RM21.6 billion

in KKMM, MCMC/SKMM 29/08/2019 1,959 Views

The Malaysia Government approved the implementation of National Fiberisation and Connectivity Plan (NFCP), an ambitious, multi-billion project, aims to provide nationwide digital connectivity, high-quality and affordable Internet for all Malaysians in urban and rural areas.

The Ministry of Communications and Multimedia (KKMM) in a statement said that the five-year plan (2019–2023) is expected to cost RM21.6 billion and has been approved by the Malaysia Cabinet.

The main focus of NFCP will be on deploying fibre networks, however, alternative technologies such as wireless networks and satellite technology will also be deployed wherever conducive. This is in line with its ‘Shared Prosperity’ initiative, in which rural areas will be able to enjoy high quality and high-speed broadband access.

The NFCP’s main targets are:

Entry-level fixed broadband package at 1% of gross national income (GNI) by 2020
Gigabits availability in selected industrial areas by 2020 and to all State Capitals by 2023
100% availability for premises in State Capitals and selected high impact areas with a minimum speed of 500Mbps by 2021
20% availability for premises in sub-urban and rural areas with up to 500Mbps by 2022
Fibre network passes 70% of schools, hospitals, libraries, police stations and post offices by 2022
Average speed of 30Mbps in 98% of populated areas by 2023
Improve mobile coverage along Pan Borneo highway upon completion

NFCP will focus at:

State capitals and major cities;
Rural areas and underserved groups to bridge the digital gap;
High-impact areas, eg. industrial areas;
Mobile coverage area without fiber network connection to telecommunication tower (to support 3G, 4G and 5G services);
Schools, hospitals, libraries, police stations and post offices;
FELDA community and indigenous community;
Sectors like small and medium enterprises, education, health and agriculture as well as major transport facilities.

A special task force chaired by the Ministry and comprising related agencies will be set up to coordinate the construction of digital infrastructure in schools, police stations, hospitals and libraries.

KKMM said the RM21.6 billion cost of implementing the NFCP will be funded through the provision of the Universal Service Provision (USP) Fund, regulated by the Malaysian Communications and Multimedia Commission (MCMC), and commercially by the service providers.

The Ministry said the methods of financing via USP Fund that would be considered are in the form of full fund, matching fund or partial fund to eligible parties. These financing methods will help reduce the expenditure of the service provider and the cost savings will benefit consumers through the provision of affordable services.

KKMM said the launch ceremony of the NFCP project is expected to be held in mid-September 2019. Further details will be given at the briefing.

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Bursa Company Announcements:27 december 2017

OTHERS REDTONE INTERNATIONAL BERHAD - NOTIFICATION OF APPROVAL OF UNIVERSAL SERVICE PLAN AND DESIGNATION OF REDTONE ENGINEERING & NETWORK SERVICES SDN. BHD. AS UNIVERSAL SERVICE PROVIDER FOR THE PROVISION AND IMPLEMENTATION OF THE TIME 3 EXTENSION PHASE 3 (PART 2) PROJECT

REDTONE INTERNATIONAL BERHAD

Type

Announcement

Subject

OTHERS

Description

REDTONE INTERNATIONAL BERHAD
- NOTIFICATION OF APPROVAL OF UNIVERSAL SERVICE PLAN AND DESIGNATION OF REDTONE ENGINEERING & NETWORK SERVICES SDN. BHD. AS UNIVERSAL SERVICE PROVIDER FOR THE PROVISION AND IMPLEMENTATION OF THE TIME 3 EXTENSION PHASE 3 (PART 2) PROJECT

The Board of Directors of REDtone International Berhad (“REDtone”) wishes to announce that its wholly-owned subsidiary, REDtone Engineering & Network Services Sdn. Bhd. (“RENS”) had on 27 December 2017 received the Notice of Approval from the Malaysian Communications and Multimedia Commission (“MCMC”) to appoint RENS as Universal Service Provider for the provision and implementation of Time 3 Extension Phase 3 (Part 2) project (“Project”), for the provision of 2G and 3G public cellular services in rural areas in 8 major states of Malaysia as part of MCMC’s Time 3 Extension Phase 3 Programme, subject to a maximum cost of RM250,755,538.

The Project will not have any effect on the share capital and substantial shareholders’ shareholding of REDtone.

The Project will not have any material effect on the net assets and gearing of the REDtone Group for the financial year ending 30 April 2018. However, the Project is expected to contribute positively to the financial performance of the REDtone Group in the future.

This announcement is dated 27 December 2017.

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Bursa Company Announcements:10 december 2014

OTHERS REDTONE INTERNATIONAL BERHAD (“REDTONE” or “THE COMPANY”) LETTER OF AWARD TO BUILD, OPERATE AND MAINTAIN RADIO ACCESS NETWORK INFRASTRUCTURE IN RURAL AREAS IN SARAWAK AND JOHOR AS PART OF MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION’S TIME 3 EXTENSION PROGRAMME

Type

Announcement

Subject

OTHERS

Description

REDTONE INTERNATIONAL BERHAD (“REDTONE” or “THE COMPANY”)
LETTER OF AWARD TO BUILD, OPERATE AND MAINTAIN RADIO ACCESS NETWORK INFRASTRUCTURE IN RURAL AREAS IN SARAWAK AND JOHOR AS PART OF MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION’S TIME 3 EXTENSION PROGRAMME

1. INTRODUCTION

The Board of Directors of REDtone International Berhad (“REDtone” or “RIB”) wishes to announce that its wholly owned subsidiary, REDtone Marketing Sdn Bhd (“RMSB”) had on 9 December 2014 received the Letter of Award from the Malaysian Communications and Multimedia Commission (“MCMC”) dated 9 December 2014 (“LOA”) to build, operate and maintain radio access network (“RAN”) infrastructure (“Services”) in rural areas in Sarawak and Johor as part of MCMC’s Time 3 Extension Programme (“Contract”). MCMC’s RAN Sharing Time 3 Extension Phase 1 Programme is aimed at further providing voice and data connectivity in rural areas of the country.

2. SALIENT TERMS OF THE LOA

The salient terms of the LOA are as follows:

The total cost and expenses which will be paid to RMSB for implementing the Contract is subject to maximum Ringgit Malaysia Eighty Eight Million Five Hundred Seventy Two Thousand and Eighty One and Twenty Three Cents (RM88,572,081.23) only.

The commencement date of the Contract shall be from the date of the LOA.
RMSB is responsible for completing the Services within 35 days from notification from the designated universal service providers that the tower and its associated site/facilities are ready for RMSB to commence work to build the RAN infrastructure.
RMSB shall work with at least three (3) specific public cellular network providers to enable them to offer cellular services to their end customer.
RMSB shall also provide maintenance and operation support services for the period of three (3) years from the completion of the Services.

3. RATIONALE AND PROSPECT OF THE CONTRACT

The Contract is part of RIB’s expansion plan. It will accelerate creation of critical mass of our network in Sarawak & Johor, thus significantly reduce our existing network cost. With the reduction of cost, it is expected to contribute positively to the financial performance of REDtone Group in the future.

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Bursa Company Announcements:12 November 2012

OTHERS REDTONE INTERNATIONAL BERHAD (“RIB”)- LETTER OF AWARD TO BUILD, OPERATE AND MAINTAIN RADIO ACCESS NETWORK (“RAN”) INFRASTRUCTURE IN RURAL AREAS IN SABAH AS PART OF MALAYSIAN COMMUNICATIONS & MULTIMEDIA COMMISSION’S (“MCMC”) TIME 3 PROGRAM (“CONTRACT”)

REDTONE INTERNATIONAL BERHAD

Type	Announcement
Subject	OTHERS
Description	REDTONE INTERNATIONAL BERHAD (“RIB”)- LETTER OF AWARD TO BUILD, OPERATE AND MAINTAIN RADIO ACCESS NETWORK (“RAN”) INFRASTRUCTURE IN RURAL AREAS IN SABAH AS PART OF MALAYSIAN COMMUNICATIONS & MULTIMEDIA COMMISSION’S (“MCMC”) TIME 3 PROGRAM (“CONTRACT”)
The Board of Directors of RIB wishes to announce pursuant to Rule 9.03 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad that its wholly owned subsidiary, REDtone Marketing Sdn Bhd had on 9 November 2012 received a letter of award from MCMC dated 8 November 2012 to build, operate and maintain RAN infrastructure in rural areas in Sabah as part of MCMC's Time 3 Program. Please refer to the attachment for the full announcement in relation to the Contract. This announcement is dated 12 November 2012.

REDTONE INTERNATIONAL BERHAD (“REDTONE”)LETTER OF AWARD TO BUILD, OPERATE AND MAINTAIN RADIO ACCESS NETWORK (“RAN”) INFRASTRUCTURE IN RURAL AREAS IN SABAH AS PART OF MALAYSIAN COMMUNICATIONS & MULTIMEDIA COMMISSION’S (“MCMC”) TIME 3 PROGRAM(“CONTRACT”)

1.INTRODUCTIONThe Board of Directors of REDtoneInternational Berhad (“REDtone” or “RIB”)wishes to announce pursuant to Rule 9.03 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad that its wholly owned subsidiary, REDtone Marketing Sdn Bhd (“RMSB”) had on 9 November 2012 received a letter of award from MCMC dated 8 November 2012(“Letter”) tobuild, operate and maintain RAN infrastructure(“Services”)in rural areas in Sabahas part of MCMC’s Time 3 Program.MCMC’s RAN Sharing Time 3 Phase 3 Program is aimed at providing voice and data connectivity in rural areas of the country.

2.SALIENT TERMS OF THE LETTERThe salient terms of the Letterare as follows:

1)The Contract value is Ringgit Malaysia Eighty Two Million Five Hundred Thousand (RM82,500,000) only.

2)RMSB is responsible for completing the Services subject to the terms and conditions of agreement / contract.

3)RMSB is to build, operate and maintainthe RAN infrastructure in the rural areas in Sabah namely Tongod, Lahad Datu, Beluran, Kinabatangan, Beaufort, Kuala Penyu, Papar, Sipitang and Tenom.

4)The commencement date of the Contract shall be the date immediately after RMSB’s receipt of the notification from the designated universal service provider notifying that thetower andits associated site/facilities are ready for RMSB to commence work to build the RAN infrastructure(“Work”).

5)RMSB shall also provide maintenance and operation support services for the period of three (3) years from the completion of the Work.

3. RATIONALE FOR THE PARTICIPATION IN THECONTRACTThe Contract is part of RIB’s expansion plan to grow its data business.

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PERSONAL REMARK:

●Redtone constantly participated MCMC's infrastructure project since 2012,these projects are all under universal services provision(UPS) initiatives.

●All the project won located at rural and suburban area,Redtone is very strong at doing telco infrastructure in rural area.

●Rural and suburban is one of the major focus under NFCP,since government targeted to close the digital gap between urban and rural area.

●Redtone have great chance to win bigger contract since the company already established good track record especially in rural infrastructure work.

●Any new win could be announce shortly after budget 2020 as all previous contracts been released between november and december.

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3.)IDS business could beat my expectation.

In my last article,i mention industry digital service(IDS) business wont bring in any meaningful contribution in short term,but it seems like i was wrong as i might underestimated the potential of the business.

Please refer to the informative article below:

REDtone’s digital service business set to stop bleeding

Chester Tay/The Edge Financial Daily

August 26, 2019

KUALA LUMPUR: REDtone International Bhd expects its loss-making industry digital service (IDS) business to turn around and help improve the group’s overall financial performance in the current financial year ending June 30, 2020 (FY20).

IDS is the only one among the group’s three business segments that is dragging the group’s profitability.

REDtone chief executive officer (CEO) Lau Bik Soon believes the group’s new virtual reality (VR) service, dubbed Flexicraft, is set to boost sales in the IDS segment.

“IDS is something new that we are building,” Lau told The Edge Financial Daily in a recent interview. “I believe with the launching of new services like Flexicraft, FY20 would be interesting for IDS. I do expect that we should be able to turn around for IDS and do better in FY20.”

“We are positive of our top line growth in FY20. We believe Flexicraft would grow at a 40% compound annual growth rate over the next five years. Because the market is still young, we are very positive for the IDS segment, particularly Flexicraft,” he added.

Lau said REDtone’s VR solution is capable of creating three-dimensional interactive virtual space for the group’s customers to interact with end users.

He said REDtone already has two clients — Royal Selangor International Sdn Bhd and Paramount Corp Bhd — using the new technology to market their products on their websites.

“We have just started this for about four months now. It is something new for the Malaysian market. We will spend some time to educate the market on how it can benefit them,” he said.

“For FY19, [VR business revenue] was not significant, because we just started, but for FY20 it would be a slightly more meaningful contribution,” he added.

For the 12-month period ended April 30, 2019 (12MFY19), REDtone’s IDS segment reported an operating loss of RM4.23 million, slightly lower than the RM4.85 million loss in the previous one-year period (FY18). The group recently changed its financial year end to June 30.

REDtone’s other business segments are telecommunications service and managed telecommunications network service (MTNS).

For 12MFY19, telecom service’s operating profit grew 36.2% to RM29.79 million from RM21.88 million in FY18, while MTNS returned to a profit of RM4.75 million from an operating loss of RM7.69 million.

In terms of external revenue, REDtone’s telecom service grew 1% to RM82.3 million in 12MFY19, from RM81.49 million in FY18, while MTNS revenue more than doubled to RM94.44 million from RM31.06 million. Meanwhile, external revenue for IDS in 12MFY19 dropped 60% to RM2.18 million, from RM5.53 million in FY18.

Although Lau acknowledged that the telecom industry would remain competitive moving forward, he expects the group’s revenue for telecom service and MTNS to continue to grow.

“This is a very competitive market, but I believe that we have the strength and niche to be able to compete and continue our growth in these two segments,” he said.

Under telecom service, Lau said REDtone provides its corporate customers secured connectivity tailored to their business needs.

“For telecom service, we are an integrated telecom service provider, meaning to say we don’t just give customers one type of connectivity. We can bundle connectivity that the customer wants, and that is how we differentiate ourselves.

“Every company requires Internet line, and fixed line phone, so we provide managed network to corporate customers, meaning we provide a secured connection, hacking mitigation services,” he explained.

In the area of MTNS, Lau said REDtone is strong at optimising equipment for telecom infrastructure in the rural areas.

“We are very good at doing infrastructure in rural areas. We don’t do tower, we only build and manage the electronics. There are two types of business models. One is at the commercial front where the mobile operator will buy equipment from people like Huawei and Ericsson. They own the equipment, but they need to get someone to instal and optimise, which is what we do.

“The second model is related to the MCMC’s (Malaysian Communications and Multimedia Commission) projects in the rural areas. We will go there and put up all the equipment, optimise them and establish connection with all the mobile operators, so that users there can have the mobile operators’ services,” he said.

“With all these niche and strength, I believe these two segments will continue to grow. We are the largest in terms of Wi-Fi infrastructure builder. We are also one of the largest as engineering mobile service companies,” he added.

While it remains to be seen if REDtone would perform to Lau’s aspirations, the group’s shares seem to be attracting higher investor confidence since the beginning of this year.

Year to date, the counter has more than doubled in value to 39 sen last Friday, with a market capitalisation of RM292.18 million.

PERSONAL REMARK:

●The VR marketing solution got huge potential to grow.

●Developers,hotel and premium product retailers started to consider VR solution.

●Smart Farming is another potential business under IDS and is gaining traction.

●In fact,the losses from IDS already reduce significantly to around RM220k(from more than RM1million previously) in latest quarter.

●If IDS business break even or become profitable in FY2020,that will be a big boost to the group result.

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4.)Strong news flow in coming months to sustain the momentum:

Starting from now until december,we can expect more news related to Redtone should be release into the market given many event take place during the period.

October:

Budget 2020 announcement--Government or MCMC could officially announce projects under NFCP in coming budget.Personally,i am expecting TIME project(which REDTONE is participated) might extent further with larger scale.

Annual report--Redtone will release annual report of FY2019 in october.

November:

1st quarter result of FY2020--Redtone will release 1st quarter result in november,which is expected to be very good,driven by strong performance of telecommunication services and MTNS business.

December:

Annual general meeting(AGM)--Redtone will held AGM in december and the management might express opinion on NFCP to shareholders as well as media for first time.i'll attend the AGM to obtain more information.

Good luck!

REDTONE (0032)

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Discussions

Be the first to like this. Showing 8 of 8 comments

calvintaneng

Good. But not the Top winner lah.
The Top winner belongs to Opcom

REDtone still need to buy fiber optic and other material from Opcom as well as ock, green packet and netx and all others irrespective of what they do, when they do or where to do

As long as you build anything like house, shop, office or factory, or bridges or highways, or airports or seaports you need cement.
So you need fiber optics by Opcom just like you need cement.

2019-09-20 04:10

slts

china made are much cheaper, why buy
from msia cos

2019-09-20 04:19

Fuzzycats

Yes, China made fibre optics are much cheaper, why buy
from msia com...like Opcom???
Nfcp will secure 10% from Opcom and 90% from China to lower the cost of Nfcp lah.

2019-09-20 05:10

BN_better

Where is open tender PH always promised? Again PH only good at U-turn like in GE14.

2019-09-20 08:07

slts

Post removed.Why?

2019-09-20 08:20

speakup

no lar, real winner are PH cronies!
these cronies will be exposed once we see who gets govt projects.

2019-09-20 09:44

pang72

This is good sharing!

2019-11-07 22:38

calvintaneng

Redtone is a good stock

These are some great improvements

Flexicraft is now expanding by leaps and bounds
From just 2 customers now Redtone has secured about 2 dozen customers due to Mco lock down

The pro-active management style of Redtone director is commendable

Growing flexicraft in covid 19 crisis when people cannot visit showroom or showhouses Flexicraft now bring them to you

Also another excellent job is Redtone ability to collect a huge Rm39.3 millions payment

Now it's cash has bloated to 25% of it's share price

So Redtone will be able to increase in its dividends

On the other hand dead stock like dlady is shrinking in revenue and shrinking in dividend
Anyone got dlady please sell

After selling dlady then buy Redtone

2020-05-30 08:48

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