INTRODUCTION
OCK (0172) (RM0.515 as of 19-02-2021) dates back to 2000 and was set up by Sam Ooi Chin Khoon. He owns 31% of shares via (Aliran Armada Sdn. Bhd.).
As of 08 Jan 2021, we can see that the major shareholders of OCK are big investment funds , such as LTAT and EPF , holding 10.5% and 6.7% respectively.
Most recent acquisition is from EPF acquiring over 6.59million units.
OCK is mainly known for their exposure as a major telecommunication player, specializing in building and leasing infrastructure of telecommunications towers in Malaysia, Myanmar and Vietnam. It is a key beneficiary towards telco infrastructure and 5G rollout.
Outlook
Ref: https://www.theedgemarkets.com/article/mydigital-game-changer-if-well-executed
OCK currently owns 4200 telecommunication towers
These generate up to estimated 300million in revenue per annum.
Previously, the JENDELA Project proposed over 1726 telco tower sites, and OCK plans to acquire 1100 towers in Vietnam in 2020. In hindsight this would mean nearly 50% increment of the sites they now currently own.
We can use 5G exposure chart in the aforementioned companies to get a rough idea of the demand for 5G.
As you can see, there is almost no exposure on 5G on these countries, which means very high upside if OCK were to be involved in the expansion.
Ref: https://www.nperf.com/en/map/5g
Related Countries
As mentioned before in my JAKS article: https://klse.i3investor.com/blogs/Jaks_A_Bright_Future_Ahead/2020-12-01-story-h1537354845-JAKS_A_Great_Long_Term_Choice.jsp
I am very optimistic about Vietnam due to their high GDP growth, future , and politically neutral advantage which OCK is potentially able to benefit from. They also have 2700 sites , which is more than half of its total overseas exposure.
As for Myanmar , they are currently having disputes of the coup , but this is just a minor event and will eventually subside and be resolved.
Charts:
Weekly OCK
Breakout from symmetrical triangle with significant volume. Based on Fibonacci retracement, the next points of interest will be
0.625 , 0.740 , 0.810 , 0.925 , 1.040
https://www.tradingview.com/x/TgzDwnEP/
OCK compared to Local Peers
https://www.tradingview.com/x/PRT8Y8sQ/
Weekly OCK, Bursa Index & Global Index:
Bursa Index has previously formed a flag, breaking out of a symmetrical triangle with a strong closing
VOX is much faster, breakout since 24 Aug and is uptrend ever since.
HSCI.T has indications for downtrend reversal, now resting on the downtrend resistance line, the only index which hasn’t broken out of resistance.
https://www.tradingview.com/x/HTIRy5IF/
Telecommunication stocks as of 19-02-2021 trade on an average PE of 35-50 , while OCK only has current PE of 20 as of 0.515
Basic FPE estimations based on :
Current QR
FPE 25 : RM0.620 (+20%)
FPE 30 RM0.740 (+44%)
Estimated QR of 15% improvement (7.5m) :
FPE 25 : RM0.710 (38%)
FPE 30 : RM0.850 (65%)
Average High PAT QR (10m) :
FPE 25 : RM0.95 (84%)
FPE 30 : RM1.14 (121%)
Conclusion
Pros:
Cons:
High potential upside , with peak of 2014 highest being RM1.3
With OCK's as a key player, added with the new contracts and funding, I believe it has a long and fruitful journey ahead.
Updates :
(9/3/2021)Added some related links for reference.
https://www.theedgemarkets.com/article/mydigital-game-changer-if-well-executed
https://www.theedgemarkets.com/article/ock-seen-beneficiary-5g-deployment
https://www.thestar.com.my/business/business-news/2021/01/27/ock-groups-towering-business
https://www.thestar.com.my/business/business-news/2021/01/13/rhb-keeps-ock-as-top-sector-pick
https://www.theedgemarkets.com/article/rm15b-5g-infrastructure-cost-be-borne-private-sector-says-mof
https://www.theedgemarkets.com/article/mydigital-game-changer-if-well-executed
Disclaimer : This is based upon personal opinion, research and publicly available data. Buy/sell at your own discretion.
Chart | Stock Name | Last | Change | Volume |
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Basically Myanmar business can write off d.
Even you make money in Myanmmar, I don't think there is any channel for you to transfer out the money.
2021-02-22 23:44
Yes, indeed it is serious in Myanmar , but i believe it will just be a minor setback as they have 1000 towers in Myanmar , which contributes to 20%. We are focusing on advancement of 5G and related works which will bring more value into OCK instead. I am also interested in how OCK will execute their "smart pole". Lets wait and see
2021-02-28 00:15
Newbieinshare
Becareful of myanmar businesses. There are serious political turmoil there and the military government shutting down all sorts of telecommunication
2021-02-22 14:12