PANTECH VERSUS DAYANG: O&G BULL STOCKS (Compare Their Similarities & Differences), Calvin Tan Research

calvintaneng

Publish date: Sun, 24 Feb 2019, 08:59 PM

Hi guys, Pleae read till the end....

By now almost everyone has wakened up to the Oil & Gas Bull Theme for Year 2019. And everyone is going GaGa over Dayang due to its latest Impressive results: Higest quarterly profit ever registered for Dayang.

As always Calvin like Value. Now Value & Growth. And just last week I bought some Dialog which has no NTA support but solely on Growth only

Now let's See as the Title states

PANTECH VERSUS DAYANG: O&G BULL STOCKS (Compare & Contrast)

First the Similarities

1) BOTH PANTECH & DAYANG HAVE PETRONAS IN THEIR 30 TOP SUBSTANTIAL SHAREHOLDERS

See Dayang

Please see Annual Report 2017 & scroll down to Top 30 Shareholders

21. CIMB Group Nominees (Tempatan) Sdn Bhd Exempt An For Petroliam Nasional Berhad (AFFIN) 3,391,300

Petroliam National is the Malay Name for PETRONAS

Petronas has about 3.4 Million Dayang Shares

Now see Pantech

26. CIMB GROUP NOMINEES (TEMPATAN) SDN BHD 4,000,000
EXEMPT AN FOR PETROLIAM NASIONAL BERHAD (AMUNDI MALAYSIA)

NAME IN MALAY LAH

(((PETROLIAM NATIONAL BERHAD)))

PETRONAS HAS 4 Million Pantech shares

So both Dayang & Pantech have PETRONAS as Top Shareholders

Now the Differences

2) Dayang has High Net Liabilities in Perdana while Pantech has Net Surplus Cash

See

Latest Qtr report A.13

Depending on the Debt Restructuring Scheme that is to be finalized with CDRC and acceptable by Perdana Petroleum Bhd’s (“PPB”) lenders (see Note B8 (ii)), there may be a need to write down the Group’s nonfinancial assets (including PPE but excluding inventories and deferred tax assets) to market value, if lower than their carrying amount. As PPB is still exploring the various debt restructuring options, it is unable to provide further details at this stage.

Although Dayang has one Quarter very good result Its liability in Perdana will still bog down its financial health till more positive quarters to turn its fortune around

Now See this HIDDEN CASH HOARD of PANTECH

Under Total Assets (Refer to Pantech latest Qtr report)

Unappropriated Profit Rm335,772,000

Ha! Pantech Has A Surplus CASH HOARD OF RM335 MILLIONS STORED SAFELY

Plus Cash Position Has Increased by another 20%!!

See further down

CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 70,223 91,592

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 83,605 74,057

SO CASH HAS INCREASED BY ALMOST 20%

This Extra Cash could be given As Extra Dividend for Year 2019

3) PANTECH GIVES DIVIDENDS IN GOOD TIMES & BAD TIMES. IN GOOD TIMES MORE!!

Dayang has stopped giving out dividends for year 2016 & 2018. Probably none this year due to its liabilities in Perdana

See Pantech Dividend History

17-Jan-2019	20-Mar-2019	DIVIDEND_SHARE	Second interim dividend	1 : 100
24-Oct-2018	27-Dec-2018	DIVIDEND	First Interim Dividend	RM 0.005
27-Jun-2018	31-Jul-2018	DIVIDEND	Final Dividend	RM 0.005
26-Jan-2018	28-Mar-2018	DIVIDEND	Interim Dividend	RM 0.005
24-Oct-2017	27-Dec-2017	DIVIDEND	Second interim dividend	RM 0.005
26-Jul-2017	27-Sep-2017	DIVIDEND	First Interim Dividend	RM 0.01
28-Jun-2017	02-Aug-2017	DIVIDEND	Final Dividend	RM 0.005
12-Jan-2017	29-Mar-2017	DIVIDEND	Interim Dividend	RM 0.003
05-Dec-2016	19-Dec-2016	BONUS_ISSUE	Bonus Issue	1 : 10
05-Dec-2016	19-Dec-2016	BONUS_ISSUE	Bonus Issue	1 : 5
18-Oct-2016	29-Nov-2016	DIVIDEND	Second interim dividend	RM 0.005
21-Jul-2016	28-Sep-2016	DIVIDEND	First Interim Dividend	RM 0.005
29-Jun-2016	27-Jul-2016	DIVIDEND_SHARE	Final Dividend	1 : 100
29-Jun-2016	27-Jul-2016	DIVIDEND	Final Dividend	RM 0.005
20-Jan-2016	16-Mar-2016	DIVIDEND	Interim Dividend	RM 0.0050
21-Oct-2015	18-Dec-2015	DIVIDEND	Second interim dividend	RM 0.0060
23-Jul-2015	05-Oct-2015	DIVIDEND	First Interim Dividend	RM 0.0050
08-Jul-2015	25-Aug-2015	DIVIDEND_SHARE	Final Dividend	1 : 100
08-Jul-2015	25-Aug-2015	DIVIDEND	Final Dividend	RM 0.0050
22-Jan-2015	17-Mar-2015	DIVIDEND	Interim Dividend	RM 0.006
20-Oct-2014	23-Dec-2014	DIVIDEND	Interim Dividend	RM 0.01
20-Oct-2014	05-Dec-2014	INTEREST	Loan Stock Interest	3.5%
23-Jul-2014	02-Oct-2014	DIVIDEND	First Interim Dividend	RM 0.01
05-Aug-2014	02-Sep-2014	DIVIDEND	Final Dividend	RM 0.01
22-Jan-2014	17-Mar-2014	DIVIDEND	Interim Dividend	RM 0.01

2016 was a Fantastic Year & Pantech gave out 5 Dividends & 2 Bonus Issues

Can expect this in Year 2019!!!

4) DAYANG NEEDS PANTECH DIRECTLY WHILE PANTECH NEEDS DAYANG INDIRECTLY

Why?

Because Dayang needs to buy Oil Pipes & Valves from Pantech just like all Other On Shore & Offshore OGSE

See from Dayang Company Website

Provision of Maintenance Services

Dayang’s subsidiary, Dayang Enterprise Sdn Bhd (DESB) undertakes the overall provision of maintenance services, which focuses on the following areas:

Maintenance of Topside structure
Maintenance of pipes and valves and
Electrical and instrumentation

The maintenance services are provided either on a routine or scheduled basis or during a breakdown or emergency, in which case maintenance works are undertaken due to fault or failure

DAYANG NEEDS PANTECH PIPES & VALVES FOR MAINTENANCE & REPLACEMENTS!!

And so Pantech got business from Dayang & all other OGSE collectlively. So good

After all the Crude Oil is extracted & transported to Refinery. Again Pantech pipes and valves are needed the 2nd time plus Pantech also involve in Oil Flow Improving.

And the 3rd time is this. After Crude Oil has been refined and processed into Petrol, Diesel, Jet fuel, Naphta, Parafin, Kerosene etc etc Pantech pipes are again used to transfer them to Storage Tanks or Chemical factories nearby.

5. PETRONAS contracts for Dayang only last 5 years & then renewable & extended again depending on Market conditions. FOR Pantech this Service Contract is Perpetual or For "Forever"

See from Pantech ANNUAL REPORT

TREND AND OUTLOOK

It is anticipated that the oil and gas industry will continue to recover in 2018 as mooted by various parties. At the time of writing, oil is trading at around the USD65 mark per barrel. This is a much better state than it was in the preceding financial year where it was fluctuating at USD50 per barrel. The decision by key oil producing nations to curb oil production in order to stabilise prices has borne fruit.

At home, the completion of the RAPID project stands at 87% and is on track to be fully operational by end-2019. A steam cracker plant, petrochemical complex, air separation unit (ASU) and Pengerang Deepwater 2 have yet to be completed while the raw water supply project (Pamer), Pengerang Cogeneration Plant and Regassification Terminal 2 (RGT2) are already operational. Saudi Aramco has earlier in the year completed its RM27.44 billion investment into RAPID, and it has spurred prospects.

Maintenance contracts of RAPID once completed will be a good avenue of income. As it stands, maintenance contributes about 40% to Pantech Group’s revenue from the oil and gas sector. Being in this industry, maintenance works are essentially perpetual as they are critical in ensuring safety and optimal operations.

In other developments, Petronas is aiming a slightly higher upstream capex compared to last year. This bodes well for Pantech Group as it could translate to more requirements for PVF and other components which we supply, especially considering that Pantech Group is on the list of international vendors for specified items for Petronas.

Now read again Very Very Very Carefully these facts:

i) Maintenance contracts of RAPID once completed will be a good avenue of income.

This will be completed soon in Year 2019

ii) This Maintainence contributes 40% to Pantech Group's revenue from the Oil and gas sector

So this is a Large Assured Portion - 40% from good Pay Master Petronas

iii) Being in this industry, maintenance works are essentially perpetual as they are critical in ensuring safety and optimal operations.

ESSENTIALLY PERPETUAL MEANS "FOR FOREVER" AS LONG AS RAPID RFINERY IS IN OPERATION 24 HOURLY & 365 DAYS A YEAR.

And Refinery closed for certain period for thorough inspection and maintenance & OVERHAUL.

This will bring ADDED INCOME For Pantech as Pantech has a Store of 30,000 pipes, valves & etc etc..

6) NOW: PANTECH ALSO SUPPLY OIL PIPES & VALVES FOR THE PALM OIL INDUSTRIES

And Felda, Wilmar, IOI, SIME DARBY & OTHER BIG OIL PALM COMPANIES BUY PIPES FROM PANTECH

And FELDA IS THE WORLD'S BIGGEST PLANTATION HOLDERS

See FELDA IS IN TOP 30 OF PANTECH

2. KOPERASI PERMODALAN FELDA MALAYSIA BERHAD 60,461,200,000

At Top No. 2 in Pantech Top 30 is FELDA with 60.4 Million Pantech shares

Since Malaysia & Indonesia commands 90% of the World's Palm Oil Market Pantech has a Superb Strategic location

Recently CPO Prices picked up again

To show better prospect CBIP got Fresh Orders from Its Palm Oil Extraction Business

See

OTHERS CB INDUSTRIAL PRODUCT HOLDING BERHAD ("CBIPH" or "the Company") - Contracts entered into between PalmitEco Engineering Sdn. Bhd. and PT Kodeco Agrojaya Mandiri

CB INDUSTRIAL PRODUCT HOLDING BERHAD

Type

Announcement

Subject

OTHERS

Description

CB INDUSTRIAL PRODUCT HOLDING BERHAD ("CBIPH" or "the Company")
- Contracts entered into between PalmitEco Engineering Sdn. Bhd. and PT Kodeco Agrojaya Mandiri

The Board of Directors of the Company is pleased to announce that PalmitEco Engineering Sdn. Bhd. (Company No. 1131144-D), a wholly-owned subsidiary of the Company, has received the following Letters of Awards of Contracts (“LOAs”) from PT Kodeco Agrojaya Mandiri with total combined contract value of approximately RM86,956,566 as detailed hereunder:-

Date of Award and Acceptance	Nature of Contract	Total Amount	Duration of Contracts
13 November 2018	To design, fabricate, supply, deliver, construct, install, complete, test, commission, maintain and guarantee one unit of Conventional Palm Oil Mill with processing capacity of 60 metric tonnes of fresh fruit bunches per hour.	For import portion USD8,920,162 (Equivalent to RM36,260,459) For local portion IDR66,549,667,200 (Equivalent to RM19,299,403)	16 months
20 November 2018	To design, fabricate, supply, deliver, construct, install, complete, test, commission, maintain and guarantee one unit of Kernel Crushing Plant with processing capacity of 200 tonnes per day.	For import portion USD1,885,449 (Equivalent to RM7,664,350) For local portion IDR22,849,533,000 (Equivalent to RM6,626,365)	16 months
20 November 2018	To design, fabricate, supply, deliver, construct, install, complete, test, commission, maintain and guarantee one unit of 1600 Kilowatt Biogas Power Generator Plant.	For import portion USD2,648,750 (Equivalent to RM10,767,169) For local portion IDR21,858,000,000 (Equivalent to RM6,338,820)	16 months

This is a Clear Sign For The Revival of CPO in Malaysia & Indonesia

7) PANTECH HAS 3 DIVISIONS OF BUSINESS:. 1) OIL & GAS INDUSTRY 2) PALM OIL INDUSTRY & 3) INVESTMENT IN INDUSTRIAL REAL ESTATE

PANTECH CURRENTLY HAS FACTORIES AND WAREHOUSES IN VARIOUS STRATEGIC PLACES LIKE PORT KLANG, KUANTAN, SINGAPORE, PASIR GUDANG & IN PENGERANG

Especially in Pengerang Pantech has bought An Industrial Land for only Rm14.10 per sq ft

These Strategic Assets will Appreciate In Value Due To the Rise of RAPID Pengerang

More than that. There is a future plan that Malaysia will have a Connecting 3rd Bridege to Singapore near Pengerang or Pasir Gudang. Either one is good as Pantech Factory Lands & Warehouse will stand to benefit. From more business & from Land Appreciation

Now the Pengerang Lands were FREEHOLD & Bought in Year 2015

It has gone up in Value but not Revalued as Yet

Meanwhile Insiders have been Busily Loading Up Pantech shares

8) SEE DIRECTORS & INSIDERS BUYING UP PANTECH SHARES

TAN ANG ANG	03-Mar-2015	Acquired	1,000,000	0.670
TAN ANG ANG	06-Feb-2015	Acquired	500,000	0.670
TAN SUI HIN	13-Jan-2015	Acquired	25,000	0.600
TAN SUI HIN	21-Nov-2014	Acquired	50,000	0.670

YUSOFF BIN MOHAMED	18-Sep-2014	Disposed	40,000	1.050
TAN ANG ANG	17-Sep-2014	Acquired	1,000,000	0.670
YUSOFF BIN MOHAMED	02-Sep-2014	Acquired	80,000	0.670
DATO’ CHEW TING LENG	19-Aug-2014	Acquired	900,000	0.670
NG LEE LEE	19-Aug-2014	Acquired	2,000,000	0.670
NG LEE LEE	19-Aug-2014	Acquired	34,233	0.600
TO TAI WAI	19-Aug-2014	Acquired	3,150,000	0.670
YUSOFF BIN MOHAMED	19-Aug-2014	Disposed	55,000	1.060
DATO' GOH TEOH KEAN	14-Aug-2014	Acquired	4,500,000	0.670
DATO’ CHEW TING LENG	14-Aug-2014	Acquired	3,600,000	0.670
YUSOFF BIN MOHAMED	11-Aug-2014	Acquired	55,000	0.670
DATO’ CHEW TING LENG	06-Aug-2014	Others	7,910,663	0.600
TAN ANG ANG	04-Jul-2014	Others	100	0.000
LOH WEI TAK	16-Jun-2014	Acquired	50,000	0.670

PANTECH (5125)

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