ENGTEX SUMMARY

1)  Orderbook RM170 million as at March 31, most of which will be completed before the year end. Tenderbook of RM 300 million



2) It has been reported that 44,000km of old asbestos-cement (AC) pipes in the country need to be replaced. This is a RM 10 billion dollar market. Under the 11th Malaysia Plan, the government has resolved to bring NRW levels — currently at 35.5% — down to 25% by 2020.

With only 2.5 years to go before the NRW target of 25%, it looks like Engtex is in a SWEET SPOT

In 2014, Managing director Ng said "Assuming that half of the asbestos cement pipes needs to be replaced by the mild steel pipes and ductile iron pipes, we are looking at RM5 billion market," said Ng. They have been PREPARING for this moment for YEARS



3) Late 2016,  the company completed an upgrade of its MS pipe capacity from 42,000 tonnes to 66,000 tonnes per annum. in 2017, it will invest another 10 million in capex 

 

4)ENGTEX is believed to be a beneficiary of the water sector restructuring which is currently pending due to takeover negotiation between the Selangor government and SPLASH. ( Splash Water issue dateline is October 2017)



5) Following a dip in sales in the wholesale and distribution segment for the past few quarters, Engtex earnings for this segment might improve in fy 2017. This segment has been dragging the recent results down and if it were to improve or stabilize, Engtex's earnings should reach higher highs



6)The Beauty is In The CHART. This is the SIXTH ATTEMPT for ENGTEX to BREAKOUT the 1.36 range successfully (After adjustment of bonus issue )

Greentrade$ believes in the theory that the more the number of times of attempted breakout, the higher the chance of it succeeding. 

Reasons to breakout :
1) Bull Market
2) All time high earnings 
3) Undervalued
4) Its about damn time.


Well, IF the breakout were to fail, we can all just wait  patiently for the 7th attempt of breakout  :) 
 

NOTES

Do note that ENGTEX is a counter that moves DESPACITO. (Unless something surprising happens today )Therefore, just be prepared to hold for the long term.

ENGTEX warrant is trading at a discount and expires in 138 days.

Engtex should be worth a billion bucks since its aiming for a market worth 5 billion.

Market cap 1 billion, Engtex = 2.87


Ps: To whoever reading this article, please do not make the stock gap/ run up in the morning and crash down in the afternoon. Thanks.


*The author owns a cute amount of shares in ENGTEX 

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