Goldberg

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2022-11-02 14:05 | Report Abuse

Good Article SSlee . Hope they reply your email and admit their glaring mistake- where they have totally ignored Petron's lucrative retail business.

Stock

2022-09-14 10:47 | Report Abuse

I fully agree. The bank's must have done their due diligence before approving the Massive MTN facility of RM5 billion. The Banks must have one thru ever nook, cranny, crevice, spread, hedge and even spread before giving their approval.

However I suspect Hengyuan has Overtraded.

The MTN approval must have saved Hengyuan's bacon.
------------------------------------------------------
If Hengyuan will suffer billions of unrealised losses on refined derivatives, which bank will lend money to Hengyuan ?

If Hengyuan is over hedging and suffers heavy hedging losses on refined derivatives, banks will not approve this medium-term notes (MTN) programme of up to RM5 billion in nominal value, and accept RM1.31 billion in multi-currency revolving credit (RC) facilities.

Banks will lend money to a solid stock like Hengyuan means bankers have already scrutinised their Accounts under the microscope. All rumours about unrealised refined derivative losses are not a concern to the banks now.

The worst is over, the share price will perform well after this announcement.
Good luck and may god bless you always.

Stock

2022-09-13 11:11 | Report Abuse

Is Now The Time To Look At Buying Mi Technovation Berhad

What Is Mi Technovation Berhad Worth?

Great news for investors – Mi Technovation Berhad is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Mi Technovation Berhad’s ratio of 18.56x is below its peer average of 24.63x, which indicates the stock is trading at a lower price compared to the Semiconductor industry. What’s more interesting is that, Mi Technovation Berhad’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Mi Technovation Berhad?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Mi Technovation Berhad's earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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2022-09-13 08:06 | Report Abuse

TA Securities- We maintain our TP for Coraza at RM0.985, based on a PE multiple of 23.0x against CY23F EPS. Maintain Buy. We continue to like Coraza for its-

i) established track record in providing integrated engineering supporting services,
ii) longstanding relationships with multinational corporations,
iii) experienced management team,
iv) healthy margins,
v) earnings growth prospects backed by its expansion plans and exposure to high growth industries including semiconductor.

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2022-09-10 11:06 | Report Abuse

TP- 98 sen.

Coraza Integrated Technology Berhad - Growth Prospects Intact

Source : TA, Price Call : BUY, Price Target : 0.98

Last Price : 0.815, Upside : +0.165(20.25%)

Stock

2022-09-05 09:11 | Report Abuse

TP 36 sen.

A“buy” at 26 sen with a target price of 36 sen and said coupled with rising demand for ICT solutions due to workplace digitalisation, it expects SNS Network to register net earnings of RM31.8 million for FY23 and RM38.8 million for FY24.

Rakuten.

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2022-09-02 19:45 | Report Abuse

Rakuten Trade values SNS Network Technology shares at 36 sen

Surin Murugiah

theedgemarkets.com

September 02, 2022

KUALA LUMPUR (Sept 2): Rakuten Trade has rated SNS Network Technology Bhd a “buy” at 26 sen with a target price of 36 sen and said coupled with rising demand for ICT solutions due to workplace digitalisation, it expects SNS Network to register net earnings of RM31.8 million for FY23 and RM38.8 million for FY24.

In an investment idea note on Friday (Sept 2), Rakuten said the target price of 36 sen was premised on 15 times price-earnings ratio (PER), 50% discount to its listed peer on Bursa Malaysia due to smaller market capitalisation.

The research house said SNS Network’s commercial channel, which contributed 72.7% to total revenue in FY22, will continue to be the main growth driver.

It said with the new era of subscription-based IT service, device-as-a-service (DaaS), SNS Network will be able to recognise recurring income for five years per subscription.

It said as of April 2022, SNS Network has enrolled 77 DaaS subscriptions worth RM235.55 million.

Telekom Malaysia Bhd was one of the major clients with 45.1% revenue contribution and this strong collaboration was built over the past 19 years.

“SNS has been appointed as Apple Authorised Service Provider since 2014, marketed as 'iTworld'. SNS’s physical store channel comprises 56 brand-specialty stores and seven multi-brand concept stores across Malaysia,” it said.

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2022-09-02 11:27 | Report Abuse

PublicInvest Research has valued SNS Network Technology Bhd at 33 sen, and said over the years, SNS had continued to expand its presence by setting up other brand specialty stores.

This includes Acer, AMD, Asus, Dell, HP, Huawei, Lenovo, Mi, MSI and Omen, following the launch of its first Apple Store, branded under the brand name “iTworld” in Ipoh.

In an initial public offering (IPO) note on Wednesday (Aug 17), the research house said SNS had a wide market coverage, as its information and communications technology (ICT) product and service offerings are sold to customers through its physical store channel and online store channel, in addition to customers via its commercial channel.

“We derive a fair value of 33 sen based on about 13 times price-earnings multiple to its FY24 (financial year ending Jan 31, 2024) earnings per share of 2.5 sen.

“The IPO is expected to raise approximately RM90.7 million, from the issuance of 362.9 million new shares.

“Besides utilising 36.9% of the proceeds as capital expenditure, 19.8% of the proceeds will be allocated for the construction of a regional hub, and 14.5% as general working capital,” it said.

PublicInvest said SNS’s growth will be dependent on: i) the expansion of its retail operations; ii) setup of its regional hub; and iii) expansion of its device-as-a-service subscription-based service.

“Key drivers may include: i) the replacement cycle following wide usage of ICT products; ii) continuous technological advancement in rolling out new ICT products; iii) government initiatives for the digital transformation; and iv) incorporation of ICT to digitalise education,” it said.

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2022-08-31 20:57 | Report Abuse

@ investor77- Very clear explanation for all to understand.

The loss in NTA is due to Allocation for hedging loss and is not Realized during the 2 nd Quarter 22. It is just like you buy Glove shares at RM 4, and it fell to RM 2, but you have not sold it, it is just paper loss !! The price may recover, and when you sell it, then only actual gain or loss. The Hedging loss allocation is till 2024 according to report. Since allocation for loss in Balance Sheet, thus NTA is down by the Hedging loss. Recently Thai Oil released their Q2 report, and said prospects for Diesel is still very good with good Crack Spread. So all is still well with HYuan and Q3 will still be good.

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2022-08-31 20:25 | Report Abuse

Fully agree with you prob.- we have a classy ular with substance & intelligence.

Posted by probability > Aug 31, 2022 8:10 PM | Report Abuse

snake at least got some substance..that MM and Jerichomy is space junk

Stock

2022-08-31 20:03 | Report Abuse

Well said and absolutely comical .

Posted by Sslee > Aug 31, 2022 7:47 PM | Report Abuse

Ular got one very OKU question want to ask you leh. Why HY earn 222sen in last Qtr but NTA drop more than than lat Qtr from 662 sen to 524sen.

Itu China boss ada baca MM punya comment: war over, no more war premium, crude oil and refining margin rutuh harga maka dia pun takut dan terus buat future refining margin 3 juta barrel setiap bulan untuk 15 bulan pada USD 20. Manatahu itu MM blow water saja refining margin sudah naik ke USD30 dan account boss sudah realised rugi USD 3x3x10= USD 90 juta dan unrealised rugi USD 3x12x10 = USD 360 juta.

Maka kalau unrealised loss USD 360 juta masuk P&L itu profit sudah jadi loss kurang cantik. Boss pun pandai masuk itu unrealised loss ke Balance sheet maka NTA pun jadi jatuk dari 662 sen to 524sen.

Itu semua salah MM

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2022-08-30 21:00 | Report Abuse

Hengyuan's earnings prospects are likely to be rosy in the coming quarters, if not longer.
----------------------------------------------------------------------------------------
To put things into perspective, Bloomberg data showed that the margin, or crack spread, between crude oil and refined products have widened substantially since the start of the year.

Oil refiners are expected to enjoy fat profit margins.

The one fundamental factor that has shaped the existing industry landscape is the tight refining capacity worldwide due to the sanctions against Russia's oil production, which is likely to persist.

"We think the sanctions and supply challenge around Russia's refined products will persist even if the war is over tomorrow," Oaklands Path Capital Management Ltd chief executive officer and chief investment officer of Ngoi Se Chai commented.

Russia is the world's second-largest exporter of refined products, said Ngoi, with a total refining capacity of six million barrels per day (bpd).

As sslee mentioned-

The party just started.

Everyone are invited and don't be late otherwise you will miss the boat ie Petron & Hengyuan.

Stock

2022-08-30 19:52 | Report Abuse

Hengyuan Refining posts record net profit in 2Q, declares 10 sen dividend

theedgemarkets.com

August 30, 2022 19:38 pm +08

KUALA LUMPUR (Aug 30): Hengyuan Refining Co Bhd posted an all-time high net profit of RM667.49 million in the second quarter ended June 30, 2022 (2QFY22) compared to a net loss of RM59.38 million a year ago.

The crude oil refiner attributed the remarkable achievement to its improved refining margin, contributed by better cracks for motor gasoline (mogas), gasoil and jet fuel, as well as stockholding gains fuelled by market sentiments over the oil supply and demand imbalance.

On the heel of this, quarterly earnings per share shot up to 222.49 sen versus a loss per share of 19.79 sen last year, the group’s bourse filing showed.

Likewise, quarterly revenue climbed by over two folds to RM6.89 billion from RM2.5 billion a year ago, on the back of higher oil product prices and sales volume.

The group noted that oil product prices in 2QFY22 doubled to US$151 per barrel (bbl) from US$75 bbl, while sales volume improved by 35% as a result of stronger demand.

Hengyuan declared an interim dividend of 10 sen per share — with a Sept 30 ex-date — to be paid on Oct 25.

For the first half of the year (1HFY22), Hengyuan said its net profit ballooned to RM714.94 million from a net loss of RM43.07 million a year ago while revenue more than doubled to RM11.85 billion from RM4.7 billion.

The solid earnings for the cumulative period were underpinned by strong oil product prices — an average of US$115 bbl in 1QFY22 and US$151 bbl in 2QFY22 — coupled with resilient market demand.

“The increase in refining margin was driven by better cracks for mogas, gasoil and jet fuel, following sanctions on Russian oil products,” the group added.

Commenting on its prospects, Hengyuan said the oil refining industry will continue to be challenged by volatility in the global oil market, but notes that it is actively monitoring current market conditions and will continue its efforts to focus on operational efficiency, product quality, hydrocarbon hedging and financial risk management to optimise its performance.

Shares in Hengyuan closed down five sen or 0.93% at RM5.35, giving the group a market capitalisation of RM1.6 billion.

Stock

2022-08-26 12:17 | Report Abuse

KUALA LUMPUR (August 26): RHB Retail Research said MMS Ventures Bhd is poised to extend its upside movement.

In a trading stocks note today, the research house said that the stock has broken past the 84.5 sen resistance level on strong volume.

It said the latest bullish breakout showed that the bulls remain in control.

“The positive momentum should propel it towards the next resistance pegged at 90 sen, followed by 95 sen.

“On the flip side, a fall below the 80 sen support level would signify that the correction phase has started,”it said.

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2022-08-25 20:14 | Report Abuse

That's the best description of HY Quarterly earnings - erratic erotic. lol.

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2022-08-25 20:02 | Report Abuse

interesting comment Bob, I'm having a hard one already.

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2022-08-25 19:34 | Report Abuse

KUALA LUMPUR (Aug 25): Petron Malaysia Refining & Marketing Bhd’s net profit rocketed to all-time high of RM183.48 million for the second quarter ended June 30, 2022 (2QFY22), more than four times of RM42.01 million achieved a year ago.

The oil refiner said the sustained hike in prices resulted in strong regional refinery cracks, improvement of overall margins and lifting of operating income to RM362.32 million, more than five-fold from last year's RM66.51 million.

On the back of this, its quarterly earnings per share ballooned to 68 sen from 15.60 sen, according to the bourse filing. However, the group did not declare a dividend for the quarter under review, despite the strong set of earnings.

Petron, however, pointed out that its earnings were affected by mark-to-market loss provision on outstanding commodity hedges.

Quarterly revenue more than doubled to RM5.6 billion from RM2.03 billion, due to strong crude oil prices.

For the cumulative six-month period (1HFY22), Petron said its net profit expanded to RM289.86 million from RM145.01 million last year, as revenue spiked 133% to RM9.4 billion as compared to RM4.03 billion.

The solid earnings for the cumulative period were on the back of a higher sales volume ― 16.4 million bbls as compared to 13.1 million bbls ― coupled with the higher oil prices.

Looking forward, Petron said while the waning impact of the pandemic aided global demand for oil to recover, it noted that the oil market remains volatile due to ongoing supply risk concerns arising from geopolitical conflicts and narrow spare production capacity among major oil-producing countries.

https://www.theedgemarkets.com/article/petron-posts-record-breaking-net-profit-2qfy22-strong-oil-prices-widen-margin

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2022-08-25 18:02 | Report Abuse

Correct @ Eldonn - Trailing 4Qtrs EPS is 1.42 sen, therefore current PE based on RM5.80 is only 4.09 times.

A conservative PE of 8 is RM11.36.


Petron is undervalued to say the least.

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2022-08-25 12:20 | Report Abuse

Well Said Axelrod!

It's not fair to castrate a good Company like Hibiscus, just to infuriate the silly minded MM.

Respect the other Investors and shareholders in Hibby too as we didn't call for LU.......just that this eediotic numbskull MM did for his self glory.

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2022-08-24 15:02 | Report Abuse

Amended, apologies @probability

An estimated GP of 1.379 Billion MYR for 3rd Qtr. - Excellent !

Net profit should be t least RM1.0 billion

------------------

1. Diesel at 46% yield, cracks USD 42.98/bbl
2. Jet fuel at 7% yield, cracks USD 34.54/bb
3. Gasoline Mogas 95 at 35% yield, cracks USD (11.35 + 3.84) / bbl
4. Rest of product yield at 12%, using Mogas 95 cracks USD 15.19/bbl

Gross refining margin:

= (0.46 x 42.98 ) + (0.07 x 34.54) + (0.35 x 15.19)+ (0.12 x 15.19)
= 19.77 + 2.42 + 5.31 + 1.82
= US $ 29.3 / brl
.................

Gross Profit at above derived present refining margin of US $29.3/brl

= (10.7 million barrel sales per qtr) x ( US $29.3/brl) x (MYR 4.4/USD)
= 1.379 Billion MYR
...................

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2022-08-24 12:33 | Report Abuse

上升股:恒源炼油 阻力RM6.88

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2022-08-18 18:11 | Report Abuse

MMS VENTURES BHD declared First Interim Dividend - RM 0.0100,

Ex Date on 13-Sep-2022.

Quarter Result Quarter Result on 30-Jun-2022[#2] QoQ - 80.73% YoY , 90.06%.

EPS 2.43 sen- TPE of just 12 times.

Impressive set of earnings.

Watchlist

2022-08-16 11:40 | Report Abuse

As of to date EPF has 228,524,389 shares. They seem to be selling down slowly each day.
Sad, Hartalega is arguably the best Gloves stock in the world and is treated like junk.
In the short term there seem to be more downside as TG and SMAX will be reporting dismal quarterly profits in a week or two. This will bring another wave of heavy selling in all glove counters.
Best is to wait for the ASP to recover - perhaps in another 2-3 quarters- at least.
The mainland China nitrile glove manufacturers has dealt a major blow to to the Glove sector in Bursa.
Only the fittest will survive and Harta is definitely one of them.

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2022-08-15 11:13 | Report Abuse

Consolidation is required before ascending further. Be patient folks. SFP is a high growth tech co with solid balance sheet and profitability - aka Junior Greater.

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2022-08-11 11:12 | Report Abuse

SFP aka Greatec Junior - nicely coasting towards the upper limit of 1.24 today.

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2022-08-11 09:46 | Report Abuse

SFP's latest quarterly net profit is RM8.674M and market cap is currently at RM545M.

Greatec's net profit is 3.3 times larger than that of SFP. but market capitalization is 9 times larger.

If using the same PE as Greatec, SFP price can reach RM2.70 at the current earnings.

With the 319k square feet Plant 3 that will be completed soon, SFP's capacity will be tripled. Earnings will rise further.

SFP Tech
Market Cap: 545M
Q1 2022 NP: 8.674M

Greatec
Market Cap: 4,896M
Q1 2022 NP: 28.932M

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2022-08-09 11:55 | Report Abuse

SFP - Fundamentally Solid.

SFP intends to expand its production capacity and capabilities via the construction of Manufacturing Plant 3 (expected completion by 4QFY22) and purchase of new machineries (1 laser tube cutting machine and 41 new CNC 5-axis machines), with its IPO proceeds of RM63.5m.

The additional space in Plant 3 will allow the Group to diversify its revenue stream via its venture into the semiconductor back-end inspection industry via manufacturing vision inspection equipment handler platforms embedded with camera imaging and electronics system.


SFP has a healthy balance sheet as it is expected to turn into net cash position of RM48.6m post IPO.

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2022-07-26 11:26 | Report Abuse

Kossan is sitting on a cash pile of RM2.55bn (comprising of RM1.68bn cash + RM878m money market investments).

While normal dividends will still be paid out (dividend policy of 30%, paid biannually) management does not intend to declare special dividends with the available cash, but will retain the cash for reinvestment and future expansion.

The Group will be focusing on full automation to reduce its reliance on general workers, while at the same time pursuing full digitalization to drive sustainability in its business.

Kossan is a diversified rubber products manufacturer as opposed to the other big 3.

Kossan's other segments are Technical rubber products and clean room gloves for the electronics industry.

BTW NTA per share is RM1.61

(Just to present some facts on Kossan.)

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2022-07-02 11:49 | Report Abuse

Exxon signals operating profits could double over the first quarter

HOUSTON (July 2): Exxon Mobil Corp on Friday signalled that skyrocketing margins from fuel and crude sales could generate a record quarterly profit, according to a securities filing.

Energy prices have shot up this year with oil selling for more than US$105 per barrel and gasoline at about US$5 per gallon in the United States.

The largest US oil producer projected a sequential increase of about US$7.4 billion in operating profits compared with the first quarter. In the first quarter, Exxon posted an US$8.8 billion profit, excluding a Russia writedown.

"High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic," Exxon said in a statement on the profit gains.



https://www.theedgemarkets.com/article/exxon-signals-operating-profits-could-double-over-first-quarter

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2022-07-01 20:10 | Report Abuse

After falling from recent peak, Hengyuan is certainly worth a second look despite what the naysayers say.

Hengyuan has had a roller coaster ride. The stock soared to a near four-year high of RM7.40 in the middle of last month, riding the positive sentiment spurred by expectations of higher oil consumption as travelling activities picked up.

Market sentiment aside, judging by the current landscape of the oil refining industry, Hengyuan's earnings prospects are likely to be rosy in the coming quarters, if not longer mainly due to impressive margins/crack spread.

INVEST in this stock. Punt at your peril.

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2022-06-27 12:40 | Report Abuse

Warren Buffett Adds To Massive Stake In Occidental Petroleum, Buying The Dip After Oil Prices Drop

Sergei KlebnikovForbes Staff

Jun 23, 2022,02:48pm EDT

With oil prices down this month, billionaire investor Warren Buffett is once again buying the dip by adding to one of his favorite energy stocks, as his investing conglomerate Berkshire Hathaway purchased roughly $500 million worth of Occidental Petroleum shares this week.

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2022-06-26 19:55 | Report Abuse

Bloomberg data showed that the margin, or crack spread, between crude oil and refined products have widened substantially since the start of the year.

Singapore Dubai FCC Refinery Margin (Singapore crude oil refining margin data) surged to US$33.38 per barrel as at June 20, up nearly six-fold from US$5.81 on Dec 31, 2021. The margin spread hit an all-time high of US$35.18 early this month. It was barely four US cents a year ago as the benchmark showed.

Meanwhile, Asia Tapis Crude Oil 211 crack spread spiked more than five times to US$37.047 per barrel on Tuesday (June 21) as at press time, up from US$7.155 per barrel as at Dec 31, 2021.

Another index, US Mid-Continent WCS Crude Oil 321 Crack Spread, also jumped by US$47.61 or 154% to US$78.517 per barrel, from US$30.909 per barrel at the beginning of this year.

Brent crude oil price stood at US$115.63 per barrel, while US West Texas Intermediate (WTI) crude stood at US$111.85 a barrel as at press time. Year-to-date, Brent crude oil has gained US$37.85 or 49% from US$77.78 a barrel at end-2021, while WTI crude oil has rallied US$39.07 or 54% from US$72.78 a barrel.

Using the above as yardstick, oil refiners are expected to enjoy fat profit margins.

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2022-06-26 19:47 | Report Abuse

KUALA LUMPUR, June 26 (Bernama): Bursa Malaysia is expected to stage an "oversold bounce” this week after the steep correction seen for the past three months, moving in the 1,450-1,480 range, a dealer said.

Going forward, Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Dr Nazri Khan Adam Khan said, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was expected to rebound higher on bargain-hunting activities as traders came back into play to grab both higher and lower liners.

"I will call this an oversold bounce because the index has been oversold for the last three months, in which we were down for 10 out of 12 weeks. That is considered as extremely oversold.

"Despite that, the broader market outperformed the other regional markets, which means our correction is lower as our economic data are still resilient. Consumer spending is still strong," he told Bernama.

He also noted that Bursa Malaysia should continue its uptrend, supported by the country’s Consumer Price Index (CPI) figure, which increased 2.8 per cent year-on-year to 126.6 in May 2022 from 123.1 in May 2021.

"We are relatively better in terms of economic data, sentiment and the FBM KLCI movement because we are driven by commodity stocks that cushion our broad stock market, especially (related to) oil," he said.

Nazri added that there were plenty of opportunities to grab as the stocks were seen to be cheaper and dividend higher, coupled with a lot of catalysts to cushion against a big crash although the market was likely to see a downtrend in the medium term.

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2022-06-26 17:10 | Report Abuse

KUALA LUMPUR, June 26 (Bernama): Bursa Malaysia is expected to stage an "oversold bounce” this week after the steep correction seen for the past three months, moving in the 1,450-1,480 range, a dealer said.

Going forward, Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Dr Nazri Khan Adam Khan said, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was expected to rebound higher on bargain-hunting activities as traders came back into play to grab both higher and lower liners.

"I will call this an oversold bounce because the index has been oversold for the last three months, in which we were down for 10 out of 12 weeks. That is considered as extremely oversold.

"Despite that, the broader market outperformed the other regional markets, which means our correction is lower as our economic data are still resilient. Consumer spending is still strong," he told Bernama.

He also noted that Bursa Malaysia should continue its uptrend, supported by the country’s Consumer Price Index (CPI) figure, which increased 2.8 per cent year-on-year to 126.6 in May 2022 from 123.1 in May 2021.

"We are relatively better in terms of economic data, sentiment and the FBM KLCI movement because we are driven by commodity stocks that cushion our broad stock market, especially (related to) oil," he said.

Nazri added that there were plenty of opportunities to grab as the stocks were seen to be cheaper and dividend higher, coupled with a lot of catalysts to cushion against a big crash although the market was likely to see a downtrend in the medium term.

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2022-06-26 10:19 | Report Abuse

Oil refiners are expected to enjoy good profit margins for many years to come.

The one fundamental factor that has shaped the existing industry landscape is the tight refining capacity worldwide due to the sanctions against Russia's oil production, which is likely to persist for many years.

The sanctions and supply challenges around Russia's refined products will persist even if the war is over tomorrow- most experts in the industry believe.

This scenario as mentioned above- is a big boost to oil refiners as margins/crack spread rise- and is likely to persist as long as the Europeans sanctions against Russian oil are in place.

Stock

2022-06-26 10:14 | Report Abuse

Oil refiners are expected to enjoy good profit margins for many years to come.

The one fundamental factor that has shaped the existing industry landscape is the tight refining capacity worldwide due to the sanctions against Russia's oil production, which is likely to persist for many years.

The sanctions and supply challenges around Russia's refined products will persist even if the war is over tomorrow- most experts in the industry believe.

This scenario is a big boost to refiners as margins/crack spread rise.

General

2022-06-25 14:48 | Report Abuse

PM Sabri can always open another Party. ie PKM- Parti Keluarga Malaysia. lol.

Tobby Only vote of no confidence can bring down PM Sabri! But Umno can expel PM Sabri for insubordinate! Which leave PM Sabri partyless!

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2022-06-23 20:28 | Report Abuse

Oil turbulence could last 5 yrs: ExxonMobil
--------------------------------------
Published on: Thursday, June 23, 2022
By: AFP


DOHA: Consumers must be prepared to endure up to five years of turbulent oil markets, the head of ExxonMobil said, citing under-investment and the coronavirus pandemic.

Energy markets have been roiled by the Ukraine war as Russia has reduced some exports and faced sanctions while Europe has announced plans to wean itself off dependency on Russian fossil fuels in coming years.

Speaking ahead of ExxonMobil’s unveiling as the fourth international partner for Qatar’s natural gas expansion, chairman and chief executive Darren Woods said major uncertainty lies ahead.

“You are probably looking at three to five years of continued fairly tight markets,” Woods told the Qatar Economic Forum. “How that manifests itself in price will obviously be a big function of demand, which is difficult to predict.”

On top of under-investment in finding new oil sources in 2014-2015, Woods said the pandemic “really sucked a lot of revenues out of the industry”.
Woods said companies and governments needed to think long-term. “We are going to see a lot of volatility and discontinuity in the market place if we don’t get to more thoughtful policies,” he predicted.

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2022-06-21 22:11 | Report Abuse

No worries- I hope we all make money and be happy. No need to be evil here.

Posted by pang72 > Jun 21, 2022 9:26 PM | Report Abuse

Goldberg,
Thank for good piece of sharing
Analyst deem hengyuan drop to the value which is unjustified by record margin!!

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2022-06-21 21:10 | Report Abuse

Market sentiment aside, judging by the current landscape of the oil refining industry, Hengyuan's earnings prospects are likely to be rosy in the coming quarters, if not longer.

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2022-06-21 21:08 | Report Abuse

"We think the sanctions and supply challenge around Russia's refined products will persist even if the war is over tomorrow,"

Oaklands Path Capital Management Ltd chief executive officer and chief investment officer of Ngoi Se Chai commented.

Stock

2022-06-21 20:59 | Report Abuse

After a 36% fall from peak, is Hengyuan worth a second look?/
theedgemarkets.com

June 21, 2022 20:05 pm +08

KUALA LUMPUR (June 21): Share price of Hengyuan Refining Co Bhd has had a roller coaster ride. The stock soared to a near four-year high of RM7.40 in the middle of last month, riding the positive sentiment spurred by expectations of higher oil consumption as travelling activities pick up.

But soon it fell to a low of RM4.34 on Monday amid a global selldown of equities after the US Federal Reserve raised interest rate by 75 basis points. The stock rebounded strongly on Tuesday, climbing up 36 sen or 8.29% to RM4.70, valuing it at RM1.41 billion.

Market sentiment aside, judging by the current landscape of the oil refining industry, Hengyuan's earnings prospects are likely to be rosy in the coming quarters, if not longer.


To put things into perspective, Bloomberg data showed that the margin, or crack spread, between crude oil and refined products have widened substantially since the start of the year.

Singapore Dubai FCC Refinery Margin (Singapore crude oil refining margin data) surged to US$33.38 per barrel as at June 20, up nearly six-fold from US$5.81 on Dec 31, 2021. The margin spread hit an all-time high of US$35.18 early this month. It was barely four US cents a year ago as the benchmark showed.

Meanwhile, Asia Tapis Crude Oil 211 crack spread spiked more than five times to US$37.047 per barrel on Tuesday (June 21) as at press time, up from US$7.155 per barrel as at Dec 31, 2021.

Another index, US Mid-Continent WCS Crude Oil 321 Crack Spread, also jumped by US$47.61 or 154% to US$78.517 per barrel, from US$30.909 per barrel at the beginning of this year.

Brent crude oil price stood at US$115.63 per barrel, while US West Texas Intermediate (WTI) crude stood at US$111.85 a barrel as at press time. Year-to-date, Brent crude oil has gained US$37.85 or 49% from US$77.78 a barrel at end-2021, while WTI crude oil has rallied US$39.07 or 54% from US$72.78 a barrel.

Using the above as yardstick, oil refiners are expected to enjoy fat profit margins.

The one fundamental factor that has shaped the existing industry landscape is the tight refining capacity worldwide due to the sanctions against Russia's oil production, which is likely to persist.

"We think the sanctions and supply challenge around Russia's refined products will persist even if the war is over tomorrow," Oaklands Path Capital Management Ltd chief executive officer and chief investment officer of Ngoi Se Chai commented.

Russia is the world's second-largest exporter of refined products, said Ngoi, with a total refining capacity of six million barrels per day (bpd), but many refineries in Russia have stopped producing due to limited demand for their products after the sanctions imposed by the Europe Commission and the US.

Secondly, Ngoi highlighted that China's policy to cut its export quota for refined oil products is also unlikely to change as the country has mapped out a national carbon emission reduction plan.

He noted that the Chinese government halved its oil product export quota in the first quarter of this year in a bid to reduce its carbon emissions.

On top of that, Ngoi said after several years of downturn post 2014, global refining capacity has been reduced by 1m bpd since 2019.

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2022-06-08 20:25 | Report Abuse

PEB ANNOUNCES ITS PROPOSED REGULARISATION PLAN

~ portfolio to have 133 MWp of solar assets on completion, with mid-term target capacity of 508 MWp

Kuala Lumpur, 8 June 2022 – Main Market-listed Pimpinan Ehsan Berhad (“PEB” or the “Company”) announced today that it has entered into a second supplemental and restated share sale agreement with B.Grimm Power (Malaysia) Sdn Bhd, reNIKOLA Sdn Bhd, Boumhidi Adel and YAM Tengku Zaiton Ibni Sultan Abu Bakar (collectively the “Vendors”), in relation to the proposed acquisition of reNIKOLA Holdings Sdn Bhd and its subsidiaries (“Supplemental SSA II”).

To recap, PEB is currently classified as a Cash Company under the Main Market Listing Requirements but has charted its future direction to be a pure play renewable energy (“RE”) company. It had on 24 May 2021 announced the proposed acquisition of 100%-stake in reNIKOLA Holdings Sdn. Bhd. (“reNIKOLA Holdings”) for RM373.0 million. reNIKOLA Holdings owns solar power assets in Arau, Perlis; Gebeng, Pahang; Pekan, Pahang; and will develop a large-scale solar plant in Bukit Kayu Hitam, Kedah (pending issuance of license), all totaling 418 MWp on completion.“PEB’s Proposed Regularisation Plan is just the first step. Besides ground- mounted solar plants, we are also actively exploring opportunities for small hydro, biogas as well as other RE initiatives. We see a lot of attractive opportunities and are keen to capitalize on them, especially given our collective expertise, experience and network between PEB, reNIKOLA and B.Grimm,” Jonathan added.

On the corporate front, as part of the Proposed Regularisation Plan, there will also be a proposed share split involving subdivision of 1 PEB share into 2 PEB shares; as well as proposed private placement of up to 140 million shares, representing 16.8% of the enlarged capital of PEB at an issue price to be determined later.

“Upon conclusion, PEB would have a total solar generation capacity of 508 MWp on completion with aggregate asset value of approximately RM835.0 million (excluding the placement proceed). We believe this will put PEB in a prominent position in the RE industry,” Managing Director of reNIKOLA Holdings, Boumhidi Adel said.

Barring any unforeseen circumstances, the Proposed Regularisation Plan is expected to be completed by the end 2022, while the remaining proposals are estimated to be completed by 1st quarter 2023.

The proposals are subject to approvals from the Securities Commission, Bursa Malaysia Securities Berhad, Ministry of International Trade and Industry, Minister of Energy and Natural Resources, Energy Commission and Tenaga Nasional Berhad, where applicable, shareholders of PEB at an extraordinary general meeting to be convened, as well as any other authorities or parties, if required.

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2022-06-08 13:07 | Report Abuse

The current selldown present investors a good opportunity to collect /accumulate MSC at attractive prices ( PE of 8 ) .The demand dynamics for tin has changes drastically over the years especially in EVs, photovoltaic installations, and electronics applications.

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2022-06-03 10:20 | Report Abuse

Rising Tide Does Not Lift All Boats in O&G Sector

Refiners are the obvious winners when oil prices are high and demand outstrips supply, but this is not the trend across the board.

Petron M Refining & Marketing Bhd and Petronas Chemicals Group Bhd posted q-o-q and y-o-y growth, but their peers have not, with Hengyuan Refining Co Bhd earnings down q-o-q, while Lotte Chemical Titan Holding Bhd underperformed q-o-q and y-o-y as margins came down.

In 1Q22, Brent crude oil price averaged US$97.90/bbl, up 22.9% from 4Q21 average of US$79.70/bbl and higher by 59.6% from the average of US$61.30/bbl in 1Q21.

Capital expenditure by Petroliam Nasional Bhd (Petronas) stood at RM7.4 billion, up from RM6.7 billion in 1Q21, and domestic capex rose by close to 30%. This is “rather reflective” of 2019 capex levels, said RHB Research in its June 1 note. Petronas spent RM10.1 billion in capex in 4Q21.

Overall, analysts are still overweight on the O&G sector. While earnings have yet to catch up with expectations, oil prices have climbed further, going beyond US$120/bbl at end-May and averaging at US$109/bbl in the April-May period.

Some also cited continued trading opportunities among refiners and exploration and production players despite the share prices having run by 55%-60% so far this year, with oil price forecasts among analysts catching up to the US$100/bbl-range.

“High O&G and product prices are expected to benefit Hibiscus, Dagang NeXchange Bhd, Dialog Group Bhd, PetChem, Heng Yuan and Petron Malaysia,” UOBKayHian Research said in a June 1 note.

https://klse1.i3investor.com/blogs/ceomorningbrief/2022-06-03-story-h1624198433-Rising_Tide_Does_Not_Lift_All_Boats_in_O_amp_G_Sector.jsp

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2022-06-02 10:50 | Report Abuse

Folks, Uncle KYY in his blog today said -" Investors should be wait patiently for the announcement of the 2nd quarter ending June. I expect Hengyuan to break its old record price of Rm 18.50 established in Jan 2018 " .

Hmmmm lets see...

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2022-05-28 12:47 | Report Abuse

CNERGENZ BERHAD POSTS RM36.9 MILLION IN REVENUE FOR 1Q FY2022

Strong manufacturing activities support demand for Company’s integrated solutions

PENANG, 27 MAY 2022 – CNERGENZ Berhad (“CNERGENZ” or the “Company”), an established electronics manufacturing solutions provider based in Penang, has announced its financial results for the first quarter ended 31 March 2022 (“1QFY2022”) today. The Company registered revenue of RM36.9 million for the 1QFY2022, primarily contributed from the sales of standalone surface mount technology (“SMT”) machines and equipment constituting 60.9% of its total revenue. In addition, sales generated from the provision of integrated solutions segment contributed 31.2% to the total revenue.

Further, the Company recorded profit before tax (“PBT”) of RM4.87 million and achieved net profit (“PAT”) of RM3.64 million for the period. After excluding one-off expenses relating to the initial public offering amounting to RM0.16 million incurred during the period, the Company’s PBT and PAT stood at RM5.03 million and RM3.80 million, respectively.

Chief Executive Officer of CNERGENZ, Mr. Lye Yhin Choy said, “Manufacturing activities remained robust in 1QFY2022 leading to the continued demand for our integrated solutions in the electronics and semiconductor (“E&S”) industries. We have also seen a rise in demand for smart factory solutions as customers look to automation to solve manpower woes.”

“We will continue with our plans that we have shared in the run-up to our listing, including the expansion of our facility to enable us to scale up our operations, as well as strengthening our R&D activities to develop new and innovative integrated systems and solutions to the market.

To-date, we have secured purchase orders totalling RM82.48 million, which we expect to fulfil by the end of 2022.”

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2022-05-27 14:18 | Report Abuse

Dnex reported an operating profit of RM109.93 million with an increase of RM33.99 million as compared to the immediate preceding quarter of RM75.94 million. The contribution for the current quarter mainly derived from Energy segment that directly benefits significant rise in crude oil prices. Technology segment remain contribute to the group operating profit in-line with its revenue for the quarter. The IT segments contribute operating profits in line with revenue for the current quarter.

Prospects for 2021/2022

The Group continues to strengthen its position as a global technology player. Financial contribution from the semiconductor wafer foundry, SilTerra Malaysia Sdn Bhd (“SilTerra”) is expected to continually increase due to higher average selling prices (“ASPs”) as the Group expands into new emerging technologies such as microelectromechanical systems (“MEMS”) and Silicon Photonics devices. Furthermore, the planned expansion to increase SilTerra’s annual production capacity by 10% by early 2023 will translate to better economies of scale, with further improvement in manufacturing cost.

As part of the Group’s long-term plans to enhance business sustainability, the Group is exploring new opportunities to expand its semiconductor fabrication capabilities and address the strong global demand for semiconductors. The Group’s memorandum of understanding (“MoU”) with Big Innovation Holdings Limited (“BIH”), a wholly-owned subsidiary of Hon Hai Precision Industry Co Ltd (“Foxconn”) to build and operate a new 12-inch wafer fabrication plant operating to produce 40,000 wafers per month, encompassing the manufacturing of 28-nanomometer and 40-nanometer technologies will also complement the Group’s existing investment in SilTerra, in areas such as best practices and technology excellence.

Meanwhile, Brent crude oil prices trading at the USD100 per barrel price range augurs well for oil and gas (“O&G”) upstream producer Ping Petroleum Limited (“Ping”) which has an average cost of production of below USD30 per barrel. To benefit from the current strong oil prices, capacity enhancement work programmes are underway to unlock remaining economic reserves at Anasuria cluster through improve operation and infill drilling. Production from Ping’s second oilfield asset, Avalon Oil Development, which has total estimated recovery of 23 million barrels of oil is scheduled to begin between mid 2024 and mid 2025.

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2022-05-26 17:42 | Report Abuse

Very impressive PAT of RM106.4 million for the last QR with EPS of 39.4 sen.

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2022-05-26 17:28 | Report Abuse

Cnergenz looks attractive but could its IPO be bad timing?

Cnergenz Bhd is likely to attract investors who may have missed out on the listing of electronics manufacturing services (EMS) Aurelius Technologies Bhd (ATech), which saw a commendable debut, rising as much as 34.6% over its IPO price.

Cnergenz is an EMS provider, specialising in surface mount technology manufacturing solutions for the electronics and semiconductor industries.
Compared Cnergenz with peers Greatech Technology Bhd and Genetec Technology Bhd, which saw dizzying heights in their share prices over the past year.

Genetec climbed to a 52-week high of RM3.85 versus a low of 28 sen while Greatech surged to RM7.60 from a low of RM2.81.

With such an amazing run, investors may find it hard to resist putting their funds into Cnergenz hoping it will also enjoy the stellar performance.

Cnergenz has healthy growth prospects and a strong net cash position post listing.

But if you look at its past financial performance, its net profit growth does not look healthy.

Cnergenz managed to grow its net profit to RM30.5 million in FY2019 from RM23.3 million in the previous year.