https://www.malaymail.com/news/malaysia/2022/02/08/recovery-council-moots-for-malaysias-borders-to-reopen-sans-mandatory-quara/2040186

https://www.enquest.com/media/press-releases/article/operations-update-12

Analysts report : indo policy will hurt high cpo
INDO POLICY: WILL HAVE SUSTAINABLE CPO PRICE

WHICH ONE WE SEE THEN WHERE WE GO

Can smell good dividends otw

The only malasysia stock for commodity play i.e. oil

Armada is one of the 10 stocks of edge singapore 2022 global portfolio

OPEC+ Agrees on Another Gradual Oil-Output Hike for March https://www.bloomberg.com/news/articles/2022-02-02/opec-agrees-on-another-gradual-oil-production-hike-for-march

KUALA LUMPUR (Jan 19): Bumi Armada Bhd is planning to sell four overseas subsidiaries for a total cash consideration of US$44.5 million (RM186.6 million), as part of its plan to exit the offshore marine services business.

The subsidiaries — Bumi Armada Marine Uray Pte Ltd (BAMU), Bumi Armada Marine Pokachi Ltd (BAMP), Bumi Armada Marine Naryan Mar Pte Ltd (BAMN) and Bumi Armada Marine LLC (BAM) — are being sold to AC Management and KN Holdings, both units of PJSC Lukoil, Bumi Armada's bourse filing showed.

The proposed disposals are expected to result in a disposal loss of approximately RM25 million.

Nevertheless, Bumi Armada said the transactions would generate cash inflow to enable the group to repay and reduce its corporate debt, and allow it to redeploy and focus its resources on its core activities. It plans to use US$38 million of the proceeds to trim its debt, and set aside US$6.5 million for working capital.

It inked the sale and purchase agreement for the disposals on Wednesday (Jan 19).

BAMU, BAMP and BAMN are principally involved in ship owning, chartering and managing ships and vessels. They also provide marine support and other services to offshore oil and gas (O&G) companies.

Other than BAM — which is only involved in providing marine support and other services to O&G companies — the remaining three companies own Bumi Uray, Bumi Pokachi and Bumi Naryan vessels, which have been working for LUKOIL-Nizhnevolzhskneft Ltd Liability Co (LUKOIL NVN) in the Caspian Sea, Russia since 2016 under three charter party contracts.

BAMU, BAMP and BAMN were incorporated in Singapore, while BAM was set up in Russia. The four subsidiaries recorded a combined loss after taxation of RM56.6 million for the nine months ended Sept 30, 2021, and have combined net assets (including capital contribution) of RM219.9 million.

The disposals are expected to be completed by the first quarter of this year.

Bumi Armada's share price closed up one sen or 1.92% to 53 sen, bringing the group a market capitalisation of RM3.13 billion.

Patami =150m to 160m

QoQ 106% 114% 123% fpr ffb cpo and pk respectively. Better dividend prospect ahead

Insider. You have raised up some good points as well.

Here to share infomative analysis not otherwise ya.

They are back by Pharmaceutical and their number of stores are huge enough to leverage on the lock down effect where most of the peoples can easily access to. While other convenience shop like my news most of their stores targeted wos staffs.
There are many things affect 7 11 and mynews be it positively and negatively. You want me to elaborate more? Are you in this industry?

Ok insider. Mynews is bad for you

Miao. The advertisement from new stores only hire local peoples

Which state hit the most frok q3 lock dkwn ah

Mynews has the most store in klang valley.

Mynews only hire malaysian now.

Worst ? Qoq is growing. Lock down in KV until when ah?

Kelington chief executive officer Ir Raymond Gan said the company has significantly benefitted from the robust growth of the semiconductor industry in 2021 as global players accelerate their capacity expansion plans to meet the strong rise in demand for semiconductor chips.

"The UHP equipment for this project will be fabricated and supplied by the company's wholly-owned indirect subsidiary, KE System Integration (Chuzhou) Co Ltd in China.

"This demonstrates that our in-house fabricated equipment is recognised and certified for use in an advanced wafer production facility.

"We believe this will elevate our value chain in the industry as well as our profitability moving forward.

"Notably, as Singapore is one of the most attractive destinations for technological investments globally, our Singapore operations have been one of the key contributors in terms of project flows over the past several months," he said in a statement today.

On top of this RM110 million contract win, Kelington has also secured several other UHP contracts in Singapore totalling RM66.3 million over the past few weeks alone.

This brings the total value of new contracts secured in recent weeks to RM176.3 million.

These contracts are for works to be undertaken for different end customers at some of the most advanced semiconductor facilities in Singapore, it said.

Kelington said the cumulative value of new contracts clinched this year has reached an all-time high of RM1.184 billion, lifting the company's current outstanding orderbook to RM1.225 billion.

Gan said looking ahead, the company remained optimistic on its prospects, underpinned by its robust project pipeline across operating markets in Malaysia, Singapore and China.

"Our tender activities also continue to remain active and by leveraging on our strong market position, we are well-poised to capture more business opportunities.

"Not resting on our laurels, we will continue stepping up our efforts to secure more projects in the coming months while delivering high-quality output to our customers in a timely manner," he added.

PROSPECTS MYNEWS

The Group experienced an improvement in October when the government began to relax the restrictions. In addition to the improvement in in-store sales, the Group managed to increase the number of CU stores from five (5) as at 1 Oct to twenty one (21) as at 31 Oct. There are seven (7) myNEWS SUPERVALUE stores as at 31 October. The utilisation rate of the FPC also increased concurrently with the improving retail sales. The Group will continue to:
1. Grow the number of CU stores steadily;
2. Grow the number of myNEWS SUPERVALUE and myNEWS CVS stores; and
3. Expand the omnichannel sales by working closely with strong partners to deliver on demand seamlessly.

The Group is hopeful for a continuing business improvement barring any disruption from any unforeseen circumstances especially the new wave of Covid-19. With the strong measures already put in place as a result of the Group’s re-positioning initiatives, we look forward to be back on track to regain our lost business and continue to improve thereafter.

Sarawak Oil Palms (SOP MK)

ESG: Building a sustainable future

Relatively good ESG credentials

We assess SOP’s overall ESG risk factors to be medium as its ESG credentials appear to be relatively good, with transparent and detailed sustainability disclosures. Its geographical exposure to just Sarawak also helps limit SOP’s ESG risks relative to peers. Maintain BUY with unchanged TP of MYR5.60 on 13x FY22 PER peg, its 5Y mean. With net gearing at just 3% (end Sept 21), 8x FY22E PER and an unadjusted EV/ha of MYR25,000 (below replacement cost), SOP is undervalued.

Zero burning and NDPE commitments at its core

Although SOP is not yet a RSPO member, it has good and sustainable practices with zero burning and No Deforestation, No Peat and No Exploitation (NDPE) commitments at its core. SOP is 100% MSPO certified since 2019. And 6 of its 7 palm oil mills are also International Sustainability & Carbon Certification certified since 2017. To reduce GHG emissions, SOP plans to install methane capture facilities for all 7 palm oil mills (presently just 1 installed), but has not yet specified an execution timeline.

Eradicating poverty & raising socioeconomic status

SOP started as a JV between the Commonwealth Development Corporation (CDC) and the Sarawak State government in 1968 to pioneer the commercial planting of oil palms in Sarawak with an initial land area of ~4,600 ha. The aim was to eradicate poverty among local communities and to-date, the socioeconomic status of the local communities has improved remarkably. In addition to windfall and corporate taxes paid to the Federal government, SOP has also contributed over MYR300m (by our estimate) in Sarawak sales taxes since 2010 that has helped the state government with its community development programmes.

Targets to minimise impact on planet by lifting yields In 2019, SOP introduced an in-house “555 Target” with the goal to achieve 5t/ha (FY20: 3.3t/ha) of palm oil in 5 years with MYR5b in market capitalization. The ambitious target is aimed at sweating its assets by achieving optimum FFB yield and OER via best management practices to minimise the impact on the planet.

Skyworks Solutions (NASDAQ:SWKS) and Broadcom (NASDAQ:AVGO) are being defended at Bank of America after it was reported that Apple (NASDAQ:AAPL) is looking to build wireless chips in-house, news that sent shares of both semiconductor companies sharply lower.
Analyst Vivek Arya, who rates Broadcom (AVGO) buy with a $750 price target and Skyworks (SWKS) neutral with a $190 price target, notes that both companies have significant exposure to Apple (AAPL), with 20% for Broadcom and 59% for Skyworks, but industry checks suggest the impact is "overblown in the near to medium term." Apple's hiring could be for its plans to develop its own 5G modem, which would hurt Qualcomm (NASDAQ:QCOM) and not Broadcom or Skyworks.
Skyworks (SWKS) fell more than 8% to close at $146.39 on Thursday and are down another 1% on Friday. Broadcom declined 3% to close at $620.68 and are slightly lower on Friday.
Arya notes that Broadcom (AVGO) has a $15 billion contract with Apple (AAPL) that runs through 2023 and all RF design is not "created equal." He adds that RF design is a "very broad capability," which requires experience for a wide variety of use cases in smartphones, including the transceiver, which Arya believes the report was talking about.
Apple (AAPL) purchases RF-front parts from Broadcom (AVGO), Skyworks (SWKS), Qorvo (NASDAQ:QRVO) and Qualcomm (QCOM), including amplifiers, filters and switches and "we have heard of no plans for Apple to insource these parts that require very specific recipes, intellectual property and specialty materials/fabs," the analyst added.
Apple (AAPL) also gets the Wi-Fi and Bluetooth chips from Broadcom (AVGO) and the RF front-end from Skyworks and the analyst said to his knowledge, "there are no plans for Apple to insource these currently," though he admitted that the low-end Apple Watch uses some of Apple's own silicon for this.
On Thursday, Goldman Sachs said Apple (AAPL) iPhone supply was getting better, becoming more in-line with demand.

https://seekingalpha.com/symbol/AVGO?source=content_type%3Areact%7Csection%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews

Braodcom only outsouce 30% to inari remain with other osat

Meno. I guess you dont really understand what role in osat

CIMB report shows that YTD (1st week of Dec). Foreign institutional has net buy of RM1.2B of inari share. From low price to high price.

Pls also include the option to extend the contracts

PPE up is a good sign

Sukuk

EPF will sell what Foreign Institutjonal likes. Otherwise everyone keep barking...FF leaving malaysia.. Now they did this way. And barking again

Next qr Tp will add 16c

From CIMB

Healthy new products pipeline

■ Inari’s diversification into automotive is gaining traction with the potential maiden contribution from its newly-created SOM division at P55 in 1HCY22F.

■ Reiterate Add, with an unchanged RM4.95 TP, still based on 38x CY23F P/E.

1QFY6/22 results briefing

● We attended Inari-Amertron’s virtual 1QFY6/22 post-results briefing, hosted by Group CEO KC Lau this morning. We learnt that Inari’s new system-on-module (SOM) assembly division at P55 is on track to begin production in 1QCY22. SOM division is running a reliability testing process that could take up to 12 weeks before it can start production, but we are encouraged to learn Inari’s new customer is expediting the number of products qualified. We see SOM division as a new growth driver for Inari to diversify and grow its exposure in the automotive segment. We expect Inari to utilise a portion of placement proceeds for SOM division expansion from CY22F onwards.

Key takeaways

● The group is allocating RM100m capex for investment in new technology platform and capacity expansion and value-added processes such as electromagnetic interference (EMI) shield coating for RF chips. The group recently added two new system-inpackage (SiP) lines in Oct and Nov 21, which raised its total SiP assembly to 24 lines. In addition, Inari is also investing US$5.8m (RM24.4m) in a new double-sided molding packaging platform that could be utilised in the next generation RF chips in 2022/23F.

● The group expects utilisation in 2QFY6/22F to stay elevated, driven by RF content value growth going into 5G mobile devices. The group highlighted that its RF division’s utilisation is hovering close to 90% currently.

● Meanwhile the group does not expect a significant impact from the Makmur Tax implementation given that Inari’s wholly-owned subsidiary, Inari Technology Sdn Bhd which houses its RF division, still enjoys a pioneer tax exemption until 3QCY22F. The group is also looking to apply for new tax incentives with the commercialisation of newer RF chips for use in 5G mobile devices. The group is guiding for an average of 9-10% effective tax rate in FY22-23F, broadly in line with our expectations.

Reiterate Add and RM4.95 TP

● We reiterate Add, with an unchanged RM4.95 TP, still based on 38x CY23F P/E, which is 2 s.d. above its 3-year historical mean. We see an earnings-accretive outsource semiconductor assembly and test (OSAT) JV in China, stronger-thanexpected RF chip demand, consensus earnings upgrades and new customer wins as potential re-rating catalysts for the stock. Slowing demand for 5G smartphones, ringgit appreciation vs. US dollar and delays in new customers’ diversification are key downside risks to our Add call.

https://www.msci.com/index-review

Cheaper way to increasw shareholding tru warrant

https://www.google.com/amp/s/www.oedigital.com/amp/news/491718-record-number-of-floating-production-system-awards-expected-over-the-next-18-months

Quite number of outlets doing good

From CIMB report
Oil & Gas ‘Makmur Tax’ may negatively impact Petronas Dagangan’s FY22F core EPS forecast by 10.7%; no or little impact on Velesto, Bumi Armada, Yinson, Sapura Energy, or Dialog

Petronas Dagangan (PDB) may be negatively affected by the ‘Makmur Tax’, as we forecast group pretax losses excluding associates at RM893m for FY22F. Virtually all of the group pretax losses are housed under the one single holding company, rather than split up across several subsidiaries. As a result, we estimate that the ‘Prosperity Tax’ may reduce PDB’s FY22F core net profit by up to RM71m (7 sen/share), or 10.7% of our current core net profit forecast of RM668m. The negative impact to our DDM-based target price is also c.7 sen/share, which is immaterial against our current target price of RM19.90.

Velesto is unlikely to be affected by the ‘Makmur Tax’, as we forecast group pretax profits for FY22F to be below the RM100m threshold for the application of the aforementioned tax. In any case, each of its jack-up rigs are housed in separate legal entities, and the RM100m threshold is to be measured on per-legal entity basis.

Bumi Armada is unlikely to be affected by the ‘Makmur Tax’, as its floating production storage and offload (FPSO) vessels are all based outside of Malaysia. Most of Yinson’s FPSOs are also based outside of Malaysia, with the exception of the FPSO Helang; we estimate that the FPSO Helang does not earn more than the RM100m threshold for the tax to apply.

Sapura Energy is unlikely to be affected by the ‘Makmur Tax’, as most of its work is outside Malaysia. For its Malaysian business, it may be able to use its carriedforward tax losses to offset any potential taxable profits, in our view.

Dialog is unlikely to be affected by the ‘Prosperity Tax’, in our view, despite our forecast of group pretax profits of RM726m in FY6/22F (RM446m from subsidiaries and RM281m from associates). This is because we expect the individual companies to either generate less than RM100m in pretax profits in the 2022 year of assessment, or for the individual companies to enjoy significant unutilised capital allowances and investment tax allowances that can be used to almost-fully offset taxable profits.

From CIMB report

In our view, the introduction of “Prosperous Tax” should have minimal impact on Malaysian OSAT like Inari-Amertron and Malaysian Pacific Industries (MPI). They still have pioneer tax exemption benefits that will last till 2023 for Inari and 2025 for MPI. However, Unisem could be the most affected by the potential increase in effective tax rate. We estimate the potential increase in tax expense could reduce Unisem’s 2022F EPS by 8-9%.We estimate Unisem derive 40%-45% of its earnings from Malaysian operation. Meanwhile we see muted impact towards Malaysian Automated Test Equipment (ATE) manufacturers given the lower earnings base, below the RM100m threshold set by the government. Overall, the Malaysian OSAT and Automated Test Equipment sector enjoys a relatively lower effective tax rate (vs. statutory tax rate).

EPF is deemed as balance fund. This is jow they managed the fund. FF is net buyer last week

Looking forward FSRU for LNG project...huge market. Armada ald has one. Hopefully the can conclude the may 21 announcement soon

CU is a distribution channel for korea products be it beauty products or others. CU can also increase the FPC utilization rate which can help mynews to weather the losses. Prior to FPC being setting up. Mynews's profit was around 25M without RTE

https://www.gasworld.com/requirements-for-specialty-gases-in-semiconductor-manufacturing/2020964.article

https://themalaysianreserve.com/2021/10/22/infineon-technologies-to-expand-manufacturing-base-in-malaysia/

Patami 1B in 3yrs no doubt

From cimb

Moving forward, we expect MNHB to resume its store expansion drive as the lifting of movement restrictions nationwide enables construction and refurbishment activities to resume. MNHB opened only four CU-branded stores in 9MFY21. We gather that MNHB is looking to accelerate the opening of CU-branded outlets and is hoping to cross the 50store mark by Dec 2021F. It targets to open more than 15 CU outlets in Oct 2021F alone across identified locations in the Klang Valley. The group shared that metrics for the first four stores opened up to 3QFY21 exceeded expectations, and our on-the-ground checks found large crowds for some of the newly-opened outlets, suggesting strong reception and potentially shorter gestation periods for the early outlets.

Accelerating CU store expansion After months of not being able to open new outlets due to the movement restrictions nationwide, MNHB is looking to aggressively resume its CU store expansion rollout. We gather that MNHB is targeting to open c.50 CU outlets by December, after having managed to open only four up to 3QFY10/21. MNHB at its recent analyst briefing also shared that it has secured more than 100 sites nationwide for its CU outlets and targets to have a CU store count of at least 150 stores by end-FY22F. We believe the bulk of the initial store openings will be in the Klang Valley, and will be supported by its own FPC. We think the key store metrics for its CU outlets, such as average revenue per store, gross margin and footfall, greatly outpace those of its existing myNEWS-branded outlets, supported by CU’s novel ready-to-eat (RTE) food offerings.

UOB reports indicate that SOP DY would be around 7% for FY 2021

Only export refined product

https://www.theedgemarkets.com/article/indonesia-plans-stop-all-crude-palm-oil-exports-eventually

Will armada move to green energy also....