Significant Change of Name and Direction of the Company, What Does This Mean To Investors ?

A change of name of a company is quite a big deal – especially for a listed entity. But today, TECFAST HOLDINGS BERHAD had officially changed their name to FAST ENERGY HOLDINGS BERHAD. Of course, the stock code had also changed from TECFAST to FAST.

So why does the company change their name, and what does this mean to investors?

I think this is the commitment of the management to show to investors that, TECFAST (now known as FAST) is really serious about venturing into the oil bunkering industry, hence the word “ENERGY” in their new name.

Let’s have a quick recap on what has FAST done in the past few months, and a quick update on their future plans.

3^rd November 2020 – Incorporation of a wholly-owned subsidiary, Fast Energy Sdn Bhd (FESB).

6^th November 2020 – LOI Between FAST and Zillion Oil Timor LDA (ZOT) for the supply of diesel gas.

10^th November 2020 – Update on the discussion with ZOT.

20^th November 2020 – Announcement of the first fund raising exercise, private placement.

6^th January 2021 – Multiple proposal on the private placement, acquisition in 35.0% equity intetest in CCK Petroleum Sdn Bhd (CCKSB), diversification of principal activities to include trading of petroleum products, oil bunkering and other related activities, and proposal for ESOS.

26^th February 2021 – Circular to shareholders on the multiple proposal.

15^th March 2021 – First mega contract with Wise Marine Pte Ltd (Wise Marine) for a total contract value of RM 2.2 billion.

23^rd March 2021 – Second mega contract with Huang Fan Sdn Bhd (Huang Fan) for a total contract value of RM 540.0 million.

31^st March 2021 – Disposal of Oriem Technology Sdn Bhd (OTSB) for a total consideration of RM 0.9 million.

9^th April 2021 – Offer and grant for SIS.

2^nd June 2021 – Joint venture agreement between FAST, Wise Marine and Fultonn Marine Sdn Bhd for the purchase of suitable product tankers to expand their oil and gas trading activities.

30^th June 2021 – Final proposal on the multiple proposal, with an added proposal with rights issue and disposal of Techfast Precision Sdn Bhd (TPSB).

2^nd August 2021 – Official change of name to FAST and incorporation of a wholly-owned subsidiary, Fast Solar Sdn Bhd (FSSB).

From this long list of events of TECFAST transforming into FAST, one could clearly see that the management had a very clear outline planned for the change of core business of the company. The newly setup subsidiary would be involving in the investment in solar, design, construct, operate solar and trading of any solar related activities.

It is a very strong hint which the company will venture into the solar EPCC and concession owner business.

Now, FAST is trading at a crucial support level of 25.0 cents. But from an investor point of view, should you invest into FAST in this point? My answer is a definite yes.

Coupled with the change of plans and venture into the new business, FAST is poised to achieve really good earnings in the next quarter – just make some simple calculations on the contract and you will have an answer. So logically speaking, after such a big change of business plan, do you think the operators of the company had earned money so far?

Not yet, if you ask me.

It is very obvious that at the lowest point of 25.0 cents, the operator might be collecting the shares at this point. Any good news or acceptance in investors towards FAST will see a spike in share price anytime soon.

Apart from that, don’t forget that the higher the share price, the higher the willingness of investor to subscribe to the rights issue – hence more capital for the company to expand.

Based on what I studied and followed FAST so far, this is the lowest point the company can go – and with the political uncertainty, this is best time to buy FAST at a discounted price.