Dagang Nexchange - The Grandiose and Crucial NeX-factor
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Date: 19/01/2022

Source : HLG

Price Target : 1.35


We initiate coverage on DNeX with a highly convicted BUY recommendation and TP of RM1.35/share based on sum-of-parts (SOP) valuation. We peg its technology segment to a CY23F P/E of 25x, which is at a slight discount to its global peers weighted average forward P/E of 26x. While we understand that SilTerra is a relatively small player in this space and has a relatively promising technology vs. its listed global peers, we believe that valuation is justified as we are expecting SilTerra to grow faster than peers, with a growth of 28% (vs. a weighted average of 23% for its global peers). At about 14x FY23F earnings in its entirety, we believe that DNeX is a compelling case given its strong foothold in both the semiconductor and energy spaces.

A star is born. Following a slew of corporate exercises in 1HCY21 that ushered in a new management team and business direction, DNeX has transformed itself into both a semiconductor front-end player / foundry and an upstream oil and gas producer in the UK North Sea region. We deem the group’s historical financial performance to be a premature representation of its future performance as the group has ushered in a new management team along with the acquisitions of new assets (i.e. 60% of SilTerra on 26 July 2021 and an additional 60% of Ping Petroleum on 30 June 2021) – of which profits would only be reflected in FY22 onwards.

SilTerra turned into the black with strong growth trajectory ahead. Based on our findings, we understand that SilTerra Malaysia registered loss-after-tax (LAT) of -RM20.2m, -RM172.1m and -RM64.6m in FY18-20, respectively. Post-acquisition by DNeX and CGP, we highlight that SilTerra has turned into the black, registering profits of RM21.2m in merely 2 months (Aug-Sept 2021). We are projecting SilTerra’s FY22- 24F net profit to grow further to RM158.6m, RM202.3m and RM223.0m, respectively, representing a FY22-24F CAGR of 19%. Going forward, the group also aims to venture into a vertically enhanced product mix i.e. Silicon Photonics and MEMS, which will improve profit margins by 3x.

Anasuria assets are valuable cash cows. With low operating expense per barrel (opex/bbl) of less than USD20, we estimate the unit’s cash-breakeven crude oil price to be at about USD25 per barrel – based on our calculations. In the event of an oil price crash, we are comforted by the fact that these low cash opex levels to provide shelter from going into deep operating loss. With that, we deem the Anasuria assets to be a valuable cash cow. Meanwhile, we estimate the unit’s breakeven price to be at about USD45 per barrel on the net level.

Impressive earnings growth. We are projecting DNeX’s core PATAMI to grow to RM155.2m, RM197.8m and RM271.5m for FY22-24F respectively, representing a CAGR of 32% (Figure #11-12). This will be driven by: (i) the 60% acquisition of SilTerra which was completed in July 2021; (ii) ASP hikes by SilTerra; (iii) increased stake in Ping Petroleum to 90% (from 30% previously) – which will consolidate Ping’s financial performance into the group’s as it is now a subsidiary; and (iv) increasing oil production from the Ping’s 50%-owned Anasuria.

Initiate with a BUY, TP: RM1.35/share. We initiate coverage on DNeX with a highly convicted BUY recommendation and a SOP-derived TP of RM1.35/share. At about 14x FY23F earnings in its entirety, we believe that DNeX is a compelling case given its strong foothold in both the semiconductor and upstream energy spaces.

Tin price ends at historical high of US$40,400 per tonne
Bernama

January 12, 2022 12:58 pm +08

KUALA LUMPUR (Jan 12): The Kuala Lumpur Tin Market (KLTM) rose by US$900 per tonne to end at a historical high of US$40,400 per tonne on Wednesday (Jan 12) in its first recorded transaction in 2022.

A dealer said the metal was last traded at US$39,500 per tonne on Dec 21, 2021, the first trading session after the market was suspended starting June 9, 2021.

He said the market recorded transactions only on the first day of trading, but remained muted until Tuesday (Jan 11) due to subdued supply.

"Today we saw the first transaction for the metal for the year and demand was very high. At the opening, total bids stood at 482 tonnes, while the offer was only at one tonne.

"As such, the market closed at the highest price ever for the metal, which was also in line with the upward momentum in the London Metal Exchange (LME)," he told Bernama.

The premium between the KLTM and the LME narrowed to US$125 per tonne from US$1,305 per tonne on Dec 21, 2021.

Buying support came from China, Japan, South Korea, Taiwan, Europe, Pakistan and Bangladesh.

At the close, turnover on the KLTM remained at five tonnes, while bids stood at five tonnes and offers at 10 tonnes, said the dealer.

https://www.theedgemarkets.com/article/tin-price-ends-historical-high-us40400-tonne

Estimated profits from Mining activities or tin extraction - MSC
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12 m/tons extracted per day in 2022
Approx 4,200 m/ton per year
Current Price (per LME) - per m/ton - USD 38k x 4.10= RM155,800
Revenue (2022) just based on mining activities= RM654 million.
Cost per m/ton is estimated at USD 20k
Estimated Net profit from Mining activities alone -USD 18k x 4200 x 4.1 = RM310 million.

Approximately RM300 mil for FYE 2022- just from MINING activities EXCLUDING Smelting works.

EPS just based on MINING activities alone is PAT 310/420 m shares = 73.8 sen per share.

A conservative Forward PE of 8 = RM5.90 (excluding Profits from Smelting)

NOTE- Assuming the price of Tin remains elevated in the foreseeable future.

Global demand for Tin will be elevated for a very long time as Indonesia ( world’s 2nd largest producer of tin) may ban exportation of raw tin.

MSC Bhd will be a major beneficiary of this tight supply as MSC produces and also refines tin .

Their new state of the art Smelter in Pulau Indah will double their smelting capacity in a very cost effective manner- this will boost their smelting margins.

Tin Export Ban in Indonesia Likely to Upset Global Supply in the Long Run
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Nov 24, 2021 15:03CSTSource:SMM

The news that Indonesia may stop tin exports in 2024 will have more impact on the tin industry in the long term.

SHANGHAI, Nov 24 (SMM) – The news that Indonesia may stop tin exports in 2024 will have more impact on the tin industry in the long term.

At present, the monthly exports of tin ingots in Indonesia average around 6,000 mt, and the annual exports stand at about 70,000-80,000 mt. The global demand for tin ingots is currently about 340,000 mt in 2021. If the tin ingots is banned from exporting in 2024, the increase in global supply outside of Indonesia will not be able to make up for the void in the market caused by the Indonesian policy, therefore the gap will be significantly expanded.

"Tin stocks fall to multi-year lows as demand outstrips production"
It is up more than 90% year-to-date
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By Tom Daly

Dec 3 (Reuters) - Tin prices have nearly doubled from a year ago and are on course for their biggest annual rise in over 30 years, stinging big users of the soldering agent such as electronics firms, utilities, solar panel makers and appliance manufacturers.

For automakers, which use tin in coatings, bearings, brake pads and batteries, the higher tin costs come on top of a semiconductor chip shortage and a spike in prices for aluminium and magnesium due to curbs on energy-intensive industries in China.


Tin, whose main use is as a solder, has outperformed other industrial metals in 2021, gaining over 90% on the London Metal Exchange (LME) . It is on course for its biggest annual rise since trading was relaunched in 1989, four years after the collapse of the International Tin Council forced a suspension.


It is up more than 90% year-to-date
-----------------------------------------
LME tin surged past $40,000 a tonne for the first time last week, while in China, the world's biggest refined tin market, prices are up around 100% on the Shanghai Futures Exchange this year.

"There are few places in the value chain which are not feeling the pain of a higher tin price," said CRU senior consultant Willis Thomas.

He added, however, that photovoltaics (PV) companies, which use solder ribbon to join solar cells, would likely be the most severely affected, since they have less opportunity to pass on added costs to their customers due to "red-hot price competition in PV panels."

Cui Lin, chief China representative at the International Tin Association (ITA), estimates tin demand from the PV industry will rise to about 15,000 tonnes this year, versus only 8,000 tonnes in 2019.

"The stock keeps decreasing, which has affected the price quite dramatically," she said.

Tin stocks fall to multi-year lows as demand outstrips production
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Tin inventories in LME-registered warehouses slipped to their lowest since 1989 at the start of November and are currently at just 1,365 tonnes. ShFE stocks are near a five-year trough.

In Asia, Malaysia Smelting Corp (MSCB.KL), the world's third-biggest refined tin producer in 2020, declared force majeure on deliveries in June, while Indonesia is weighing a ban on tin exports from 2024. read more

"For tin specifically, supply disruption and low inventories have been the key theme for the last year," said Tom Mulqueen, head of research at Amalgamated Metal Trading (AMT) Ltd.

The ITA estimates global refined tin consumption will grow 7.2% in 2021, after slipping 1.6% to 361,900 tonnes last year as the pandemic disrupted global industries.

However, in some ways life under lockdown has been a boon for tin.

"Tin demand benefited substantially from the rapid transition to home working," Mulqueen said, pointing to higher spending on white goods and appliances that still use more tin-intensive circuit board technology, particularly in China, and demand for nonperishable goods packed in tinplate.

https://www.reuters.com/markets/commodities/tin-surge-worsens-supply-chain-woes-electronics-solar-auto-firms-2021-12-03/

PAT of RM 293.6 million. Excellent results for qtr ending 30th September.

Tin price surges past $40,000 after Jakarta jolt
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MINING.COM Staff Writer | November 24, 2021 | 10:44 am

Intelligence Markets Asia Tin

Indonesia may stop tin exports in 2024 as part of its ambitions to attract investment into downstream processing and manufacturing in the Asian nation, President Joko Widodo said on Wednesday.

The news sent the metal, extensively used in the electronics sector, to a fresh record high with three-month contracts topping $40,000 a tonne for the first time ever. Prompt delivery of tin has traded at unprecedented premiums of more than $1,000 a tonne this year, indicating severe supply shortages in the cash market.

https://www.mining.com/soldering-on-tin-price-surges-past-40000-after-jakarta-jolt/

Indonesia may stop tin exports in 2024, president says
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24 Nov 2021

(Updated: 24 Nov 2021 01:44PM)

JAKARTA :Indonesia may stop tin exports in 2024 as part of efforts to attract investment into the resource processing industry and improve the country's external balance, President Joko Widodo said on Wednesday.

https://www.channelnewsasia.com/business/indonesia-may-stop-tin-exports-2024-president-says-2335011

TIN- THE FIRST BASE METAL TO EXPERIENCE A PRICING SUPERCYCLE
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Tin has been described as the forgotten foot-soldier of the green energy transition. It's the metal that slips between the cracks and still doesn't attract nearly as much media coverage as lithium, nickel and copper.

But it is showing every sign of being the first to experience a pricing supercycle.

Demand has changed structurally from the days when most tin went into cans of long-life foods. The metal is literally hard-wired into all things electronic, opening up an ever broader spectrum of next-generation usage.

The energy transition and the so-called internet of things just ticks more boxes for tin use whether it be in electric vehicles, photovoltaic cells or 5G infrastructure.

Supply, by contrast, has been challenged to the point that the ITA estimates that the global refined tin market registered supply deficits in four out of the five years before 2020.

The official mining sector has suffered from decades of underinvestment and it is arguable that tin has avoided a supply crunch before now thanks only to artisanal finds.

Relying on chance discoveries by the informal sector is not a sustainable supply solution in any sense of the word.

The newly minted consensus among analysts is that tin pricing has to go super-cyclical to balance the market over the coming years.

https://www.reuters.com/business/energy/tin-ticks-all-commodity-superc...

Longer-term look

Fitch expects tin prices to remain on a firm uptrend in the coming decade.

While prices will ease slightly from spot levels in 2022, Fitch forecasts they will still remain historically elevated, and edge higher to reach $35,500/tonne by 2030. In perspective, this is nearly double when compared to the 2016-2020 average of $18,729/tonne.

The analyst expects tin demand to continue outstripping supply, pushing the market into deficit by 2026. On the supply side, a thin pipeline of tin mining projects will tighten the tin concentrate market, leading to increased competition among smelters and constrained ore feed for refined output growth, Fitch says.

https://www.mining.com/demand-to-keep-tin-price-on-a-tear-report/

Electric car batteries will be the key growth driver for tin
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KUALA LUMPUR: Electric car batteries will be the key growth driver for tin commodity in the next few years as it is now being used as the base metal, aside from nickel, to produce faster charging car batteries.

Malaysia Smelting Corporation Bhd (MSC) chief executive officer Datuk Dr Patrick Yong Mian Thong said tin is greatly used in electric car batteries and it will be the growth base metal and the biggest user of tin due to its ability to fast charge and discharge ability.

"Undoubtedly, tin price will see solid uptrend in the next 5 years when the production and demand for batteries goes up, especially from the electric car segment.

"For now, in terms of supplying tin to battery manufacturers, we do not have a target end-user to tap as nobody is mass producing electric car batteries. We are still go through traditional supply chain," he told The New Straits Times in an interview.

Article a bit dated but still relevant.

https://www.nst.com.my/business/2019/09/518184/future-bright-tin

Higher Mining Production further Enhances Outlook.
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In 2021, Malaysia Smelting Corp’s Rahman Hydraulic Tin (RHT) Mine in Perak (largest tin mine in Malaysia) managed to increase its average daily mining output to 11mt/day (from 8mt/day) as it explored new deposits and utilised new technology. Malaysia Smelting Corp will continue to boost its mining output to 12mt/day by 2022. Having secured a comfortable tin mining lease until 2034, Malaysia Smelting Corp can access more than 40,000mt of tin resources worth over RM7b. In addition, Malaysia Smelting Corp commenced mining activities at Sungai Lembing, Pahang last year with minimal average production of 100-200kg/day. In the next 1- 2 years, the mine is expected to gradually produce over 1,000mt/year. Malaysia Smelting Corp is also exploring potential JVs to expand its mining activities.

Estimated profits from Mining activities or tin extraction - MSC
-----------------------------------------
12 m/tons extracted per day in 2022
Approx 4,200 m/ton per year
Current Price (per LME) - per m/ton - USD 38k x 4.10= RM155,800
Revenue (2022) just based on mining activities= RM654 million.
Cost per m/ton is estimated at USD 20k
Estimated Net profit from Mining activities alone -USD 18k x 4200 x 4.1 = RM310 million.

Approximately RM300 mil for FYE 2022- just from MINING activities EXCLUDING Smelting works.

EPS just based on MINING activities alone is PAT 310/420 m shares = 73.8 sen per share.

A conservative Forward PE of 8 = RM5.90 (excluding Profits from Smelting)

NOTE- Assuming the price of Tin remains elevated in the foreseeable future.

The iron ore price rebounded on Friday following some positive news from China’s troubled property sector.
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November 19, 2021 | 11:24 am News China Iron Ore

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $91.69 a tonne, up 5%, after hitting the lowest in 18 months on Thursday.The most-traded January iron ore contract on China’s Dalian Commodity Exchange ended daytime trading 2.5% higher at 536 yuan ($84.00) a tonne. The contract hit 509.50 yuan earlier in the day, its lowest since Nov. 6, 2020, and marked its sixth consecutive weekly decline.

Debt-laden China Evergrande Group has resumed construction of 63 projects in the southern Pearl River delta, while Country Garden Services Holding raised HK$8 billion ($1 billion) in a share sale.

Concerns about the debt problems of Chinese property developers, a sector that accounts for about a quarter of the domestic steel demand, had recently added pressure on prices of iron ore and steel.


https://www.mining.com/iron-ore-price-rebounds-on-positive-news-from-chinas-property-sector/

Interesting article folks-

Ford taking control of chip supply in Globalfoundries deal

Sick of taking second best, car industry makes its own deals
Agam Shah Thu 18 Nov 2021

Chip makers like Nvidia and Intel see semiconductor content rising in the years ahead, which means a bigger business opportunity. What they may not be expecting is car makers becoming major chip contractors themselves.

Ford announced it collaboration to GlobalFoundries to design and manufacture semiconductors to secure its chip supply amid shortages. The deal is aimed at the US market.

The chips will be designed for electric vehicles and cars with autonomous driving features. It will also cover networking chips for computers in cars, and battery management systems.

It wasn't clear if Globalfoundries would help Ford in chip designs.

"It is too premature to discuss that level of design detail," a spokeswoman told The Register.

A shortage of chips is forcing car makers to shut down factories and cutting features from vehicles. Porsche selling cars with dummy chips that it could ultimately replace with real chips, and GM has removed features like auto start-stop due to chip shortages and Toyota has put factories on limited operations.

Car makers are putting available chips in more expensive vehicles, said Kurt Sievers, CEO of NXP, during an earnings call with financial analysts earlier this month.

The other option is for car makers to cut reliance on middle-men like NXP and control the chip supply chain in their own hands, which Ford is doing. That will also set the stage for Ford to write custom software for its cars.

It's like Apple bypassing chip makers and going directly to Taiwan Semiconductor Manufacturing Co. to manufacture homegrown chips for its devices.

The likes of Intel, Nvidia and ARM are building chip platforms that back a software-defined car-as-a-service model whereby drivers can pay subscriptions for services in connected cars.

Globalfoundries went public earlier this month, and is looking to grab more business from car makers. The company is looking to use older manufacturing nodes like the 22-nm process to create power efficient circuits for cars that don't knock out battery life in electric cars.

Globalfoundries also has a factory in Dresden, Germany, which is close to automakers. ®



https://www.theregister.com/2021/11/18/ford_globalfoundries_chips/

Well said dalpinia- just hold on tight & accumulate this GEM.

Tin prices will be elevated for a long time with the worlds new found appetite for TIN will persist for many many years to come.

This forgotten EV metal stock is set to shine.


Posted by dalpinia > Nov 18, 2021 10:32 PM | Report Abuse

Goldberg

Based on Mdm Chew comments, next year production 60,000 tonnes per annum.

60000 x 35000(ASP 2022) = RM2.1B revenue

Wau!!!!! RM10 for 2022 is reasonable.

This exclude the 10 yrs land development of Prai old plant location which make MSC a true GEM in next decade. Hold tight tight....

MSC- Prospects per Quarterly Report

Tin price has recently reached an all time record high. The current global landscape promoting environmental and sustainability initiatives, photovoltaic installations, EVs and growth in electronics bodes well for the demand of tin. While tin demand continues to grow rapidly, the global supply may continue to struggle to keep pace.

The operation in the Pulau Indah plant, using the newer and more efficient technology and a more productive work force, is expected to be fully commissioned by late 2021/early 2022. With the utilisation of the ISASMELT furnace, the Group expects higher operational efficiency, lower operational and manpower costs, while improving carbon footprint.

For the Group’s tin mining segment, efforts to increase daily mining output and improve overall mining productivity have been undertaken. The Group is also exploring potential joint ventures and initiatives to expand its mining activities.

Mdm Chew Gek Khim- the Executive Chairman of Straits Trading on its 52% stake in MSC
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We are modernizing the company’s legacy tin mining and smelting business, owned through a strategic stake in Malaysia Smelting. It remains at the heart of the group, making up 85% of consolidated revenue. According to Bloomberg estimates, it’s expected to post a net profit of 63 million ringgit ($15 million) this year—the highest it’s been since 2009—easily surpassing last year’s pandemic-hit profit of 16 million ringgit. Earnings were boosted by soaring tin demand for use in everything from EVs to laptops, causing a supply crunch.

“The tin market continues to be tight and there’s little chance of this changing in the near term,” writes Geordie Wilkes, research head at Sucden Financial in London, in a research note published in July. The price of tin on the London Metals Exchange is up almost 80% since the beginning of the year, touching a historic high of $38,059 on Sept. 24. Wilkes expects the price to remain firmly on the upside averaging around $35,000 per tonne through 2022. That bodes well for Straits Trading’s metal-processing arm, which is slated to start commercial production at its new smelter later this year or in early 2022.

To expand capacity, Malaysia Smelting converted an old lead smelter in Pulau Indah into a tin smelter that can annually process up to 60,000 tonnes of tin. That figure is a 50% increase in capacity from its existing smelter in Butterworth, Penang, which will be decommissioned and redeveloped over the next decade into Straits City, a S$1 billion mixed-use hotel, retail, commercial and residential project. With the price of tin elevated, Chew expects to recoup the 80-million ringgit investment in the smelter within a year.

Tang at United First Partners points out that selling the tin business would definitely narrow Straits Trading’s trading discount. Others have also wondered if it remains a good fit for the company. Says Aberdeen’s Young: “Those assets in Malaysia could be of great value but are darned difficult [and] slow to realize.”

Chew has turned down all offers for Malaysia Smelting over the years—but not for sentimental reasons. She says: “I’ll get rid of it when I get my value. As far as I’m concerned there’s still a lot of value in it, so I’m not giving it up yet.”

This story appears in the October 31, 2021 issue of Forbes Asia.

Interesting Article.

https://streetanalystblog.wordpress.com/2021/10/31/genetec-one-red-fla...

Genetec, a local company that doing business related to electronic vehicles (EV) has its very great prosperous year. If we look at its 6-months stock price performance and compared with Tesla, Genetec’s stock returns is actually outperforming the American EV manufacturer as of 29 Oct 2021

Genetec also announced its stunning quarterly financial report (2Q) and proposal of bonus issues on 25 Oct 2021. If we look at its PL statement, we may get very excited, as the Y-o-Y net profit grew almost 4-times! However, if we look at its cash flow statement, it is rather disappointed. As of 30 Sep 2021, Genetec has minus operating cash flow RM 63 million.

This minus operating cash flow is mainly due to the trade receivables RM 99 million sitting on the book as of 30 Sep 2021.

(Source: Genetec’s Quarterly Financial Report as of 30 Sep. 2021)

As the accumulated YTD revenue as of 30 Sep 2021 was RM 99.591 mil vs. Trade receivable RM 99.159 mil, this indicates that Genetec did not collect most of the money from the customers over the past two quarters.

(Source: Genetec Unaudited Quarterly Financial Report 30 Jun 2018 ~ 30 Sep 2021, the Street-Analyst’s estimation)

The interpretation of this diagram is the higher ratio means the faster collection of receivables. In 30 Jun 2020 and 30 Sep 2020, the company seems had the same collection pattern in the period as the ratio dropped below 0.9 and 1.0. The latest ratio as of 30 Sep 2021 is 1.0, meaning that 2-months of revenue is not collected. Not sure if this is due to the covid-pandemic impacts.

I tried to email Genetec’s IR for this inquiry however did not receive any response at the point of writing this article. Based solely the analysis here, we also could not make any conclusion. Hopefully the next quarterly financial report and audited annual financial report can bring more clearer picture.

In a business, there are many scenarios will do the same situation, such as:

A lose credit terms provided to the customers
The customer has cash flow problem
Fraudulent accountings
etc.
No matter what the reason is, without any cash inflow, a company will face working capital problem to continue run its business. Subsequently the company needs to raise borrowings, or new capital injection. In the case of Genetec, it can also exercise stock options to issue new shares.

Furthermore, when a company could not recover their trade receivable from the customer, in accounting, a bad debt accrual or written off due to bad debt will be post to PL statement. Hence lower its earnings in the subsequent quarters.

As mentioned by the Genetec in the past annual report, its revenue is derived from two major customers, there is a rumor in the market saying that Tesla is one of the them. If it is true, I am just curious whether Tesla has no money to pay Genetec. Just a joke!

Tin – The Number 1 New Technology Metal
-------------------------------------------------

Tin ranked as the No. 1 metal best placed to benefit from new technology according to a survey undertaken by Boston’s Massachusetts Institute of Technology (MIT) for Rio Tinto.



https://www.stellarresources.com.au/home/investor-information/learn-about-tin/

This is the interesting/exciting part of EPMB's move.

"The MIDF noted in its report the potential of EPMB tapping on EV brands from China.

“It is still uncertain as to whom the prospective principals will be for the project as no further details were provided. However, we note that EPMB had in late-October, set up a satellite office in China to source and identify opportunities for collaboration with EV players in China,” MIDF said.

“The group had also appointed two new directors to its board, namely, Derek Cheng (senior adviser to Blackstone Group (HK) Ltd) and Mac Ho (managing director of Asean for HKFAEx Group Ltd),” it added. "

FYI- EPMB is a Bumi controlled company.

MSC announced an impressive PAT of RM 28.9 million for their 3rd Quater- giving an EPS of 7sen for the quarter - ending 30th Sept 2021.

Tin Miner & Smelter MSC - the forgotten EV metal stock deserves a massive rerating.

EPMB will be part of a "super delivery ecosystem" for EV's in Malaysia
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EPMB said that under the MOU, EPMB and- MITI/ MARii, will collaborate in the following areas:-

1- An electronic payment system.

2- Establishment of a "charging network to support EVs sold in Malaysia".

3- The establishment of a production and localisation plan to assemble 2 wheel and 4 wheel EVs.

4- This will include a marketing infrastructure to sell these EVs in the local Malaysian market together with a charging network to support them.

There will be a redefinition of the present delivery infrastructure and a consolidation to take it to the next level. This will give rise to a structured integrated platform to better serve all involved.

Price of Tin @ LME London -still hoovering around all time high.

11th. November 2021....cash-USD39,150.00.....3mth..USD 37,800.00..per ton.

EPU working to ensure adequate electricity supply for electric vehicles

Bernama
Published: Nov 10, 2021 5:55 PM

PARLIAMENT | The Economic Planning Unit (EPU) is formulating a national energy policy to ensure the country’s electricity supply can meet the demand of not only electric vehicle (EV) users but also the industrial and household sectors, Senior Minister and Minister of International Trade and Industry Azmin Ali said.

He told Parliament that the national energy consumption requirement needed to be given serious attention for the transition to EVs or energy-efficient vehicles (EEVs) to replace internal combustion engine (ICE) vehicles.

EPMB poised to play a Big role - EPU formulating policy to ensure adequate electricity supply to meet EV demand, says Azmin

November 10, 2021 15:56 pm +08

EPU formulating policy to ensure adequate electricity supply to meet EV demand, says Azmin

KUALA LUMPUR (Nov 10): The Economic Planning Unit (EPU) is formulating a national energy policy to ensure the country’s electricity supply can meet the demands of not only electric vehicle (EV) users but also the industrial and household sectors, Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali told Parliament.

He said the national energy consumption requirement needs to be given serious attention for the transition to EVs or energy-efficient vehicles (EEVs) to replace internal combustion engine vehicles.

“The transition to the EEV and EV industries needs to be made carefully, so that supply of energy is adequate,” he added. “The government encourages the production and installation of EEVs, including electric and hybrid.”

Thai-listed B.Grimm to emerge as 40.6% shareholder in Pimpinan Ehsan

theedgemarkets.com

November 11, 2021 00:21 am +08

KUALA LUMPUR (Nov 10): Pimpinan Ehsan Bhd is set to see Thai-listed B.Grimm Power Public Co Ltd emerge as a 40.6% shareholder in the group.

This comes just months after renewable energy (RE) firm reNIKOLA Holdings Sdn Bhd was slated to become the largest shareholder of Pimpinan Ehsan.

Pimpinan Ehsan had announced the acquisition of NIKOLA from reNIKOLA Sdn Bhd (RSB) and its vendors in a RM373 million deal back in May, to be satisfied via the issuance of new Pimpinan Ehsan shares totalling a 61.5% stake.

In a filing on Wednesday, Pimpinan Ehsan said B.Grimm via its Malaysian unit B.Grimm Power Malaysia Sdn Bhd has inked an agreement to subscribe to new shares in reNIKOLA amounting to 45% of the latter’s enlarged share capital, for RM367 million cash.

Pimpinan Ehsan would then take over B.Grimm’s stake in reNIKOLA in exchange for 285.22 million new Pimpinan Ehsan shares at RM1.28 apiece.

In total, Pimpinan Ehsan would have issued 633.81 million shares valued at a combined RM740 million in the reNIKOLA deal.

This would result in Pimpinan Ehsan remaining as the sole shareholder of reNIKOLA. Meanwhile B.Grimm will become the largest shareholder in Pimpinan Ehsan with a 40.6% stake, followed by RSB with a diluted 36.5% interest, from 61.5% initially.

Notably, RSB’s chairman Tengku Zaiton will have a 49.4% indirect shareholding in Pimpinan Ehsan.

Pimpinan Ehsan said B.Grimm, RSB and related parties intend to seek an exemption from the obligation to undertake the mandatory offer to acquire the remaining Pimpinan Ehsan shares.

MMSV is poised to announce Good quarterly results

MMS Ventures expects revenue to rise about 36% annually to 60 million ringgit ($14.43 million) in 2022 driven by new products and robust demand for smart devices, its chief executive said.

For this year, revenue will touch 44 million ringgit with the second-half’s performance beating that of the first six months by half, Sia Teik Keat said in an investor briefing.

Financial performance may hit a record high in 2023 with gross margins targeted between 25% and 28%, he said.

Corporate exercise via issuance of new PEB shares to acquire reNIKOLA targeted completion by 4Q202.

The corporate exercise to acquire the following companies will be finalised soon :-

(i) reNIKOLA (Arau) Sdn. Bhd.;
(ii) reNIKOLA (Gebeng) Sdn. Bhd.;
(iii) reNIKOLA (Pekan) Sdn. Bhd.;
(iv) reNIKOLA Solar Sdn. Bhd.; and
(v) reNIKOLA (BKH) Sdn. Bhd..
(collectively known as the “Acquiree Companies”)

This deeply undervalued solar energy power play stock will see a massive revaluation soon.

MMSV in expansion mode too.

In view of the stronger demand, MMS Ventures is looking to expand production space by 30%-to-40% as more than 80% of the current space is utilized, Sia said. The expansion will likely start in the fourth quarter, while capital expenditure will be finalized later.

https://finance.yahoo.com/news/toyota-bz4x-details-140056332.html?utm_source=spotim&utm_medium=spotim_recirculation

According to MMS Ventures Bhd (MMSV) co-founder and CEO Sia Teik Keat, most ATE companies have good potential for growth. But he believes those that have grown to a certain size will find it tough to sustain high growth rates.

“As for those who are relatively smaller, their growth potential is higher. I would like to think that MMSV still has good upside potential. Our difficulty is sales and marketing. We have a lot of products, but we have not been able to sell enough. We need to venture into new markets and to secure new clients.

“In a nutshell, I think ATE has bright prospects, and I believe the ATE companies should be able to grow faster than the OSAT players,” Sia concludes.

A check on Bloomberg shows that both ATE and OSAT players still have fairly attractive upside potential. If the research analysts are not wrong, OSATs such as Inari, MPI, Unisem and Globetronics could go up as much as 10% to 25% in the next 12 months.

As for ATE, the likes of Greatech, Aemulus, MI Technovation, and Elsoft have potential upside of 20% to 50%, whereas ViTrox and Pentamaster’s is lower at 8% to 13%.

http://www.theedgemarkets.com/article/cover-story-will-ate-stocks-continue-outperform-osat-counters

Mr Sia the MMSV Chief is so confident of Business Prospects-

2021 FY, revenue will touch 44 million ringgit with the second-half’s performance beating that of the first six months by half, Sia Teik Keat said in an investor briefing.

Financial performance may hit a record high in 2023 with gross margins targeted between 25% and 28%, he said.

"Seasonally, third quarter is the strongest quarter, while first quarter is the weakest," Sia said. A 20% annual revenue growth “is not difficult as long as the demand is strong,” Sia said, noting that performance will largely depend on demand for smart devices and automotive products.


The Cheapest ATE in Bursa.

CCRIS suspension: CTOS submitted assessment report on Oct 18, awaiting BNM review
theedgemarkets.com

October 26, 2021 11:55 am

KUALA LUMPUR (Oct 26): CTOS Digital Bhd, which is among the credit reporting agencies suspended from accessing the Central Credit Reference Information System (CCRIS) amid potential cyberthreats, said that its assessment indicated no breach of its data assets.

In a letter submitted to its clients on Monday (Oct 25) sighted by The Edge, CTOS stated that it completed and submitted a compromise assessment to Bank Negara Malaysia (BNM) on Oct 18.

“The findings confirmed that CTOS’ data assets are secure and there is no indication of [any] breach,” CTOS said.

“We are now awaiting BNM to finish its review of our compromise assessment report.

“Based on the findings that show no data breach, we expect the CCRIS suspension to be lifted soon,” CTOS added.

Tin - the ‘forgotten eV metal’. MSC the forgotten GEM.
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As other commodities gain public attention tin is quietly gaining momentum as a performance enhancing component in all of the three generations of advanced anode materials that have been roadmapped to 2030.

MSC, a world’s leading tin smelter with 120 years of history, stands poised to benefit from a new and modern smelting plant in Pulau Indah.

With new smelter ie Toll Smelter- commencing operation in 4Q 2021 will increase the existing capacity by another 50% together with higher tin prices and reduced labour costs are definitely going to result in better performance results going forward.

In addition -the new smelting facility at Pulau Indah which acts as the transportation hub, iwould be more efficient in importing and exporting tins. New tin mining sites with huge potential is going to benefit MSC with current tin price hoovering at all time high at USD38.5k per tonne. (As of January 2021 the spot tin price was USD 21k per tonne ).

One thing is clear, from the lead acid batteries to advanced lithium ion batteries and to the next game changer - i.e. solid state batteries, it is clear that going forward, there are multiple opportunities for tin compounds and tin alloy to be featured in tin soldering and apply in anode technologies of EV batteries.

Pioneering lithium-ion battery start-up StoreDot is focusing on silicon and tin to achieve extreme fast charging. Their first five-minute batteries will be available for testing later this year, while mass production will begin in 2024

Why SilTerra (DNeX)'s new 180nm Bipolar-CMOS-DMOS (“BCD”) automotive grade process technology is so powerful


SilTerra recently announced it has entered mass production for it's 180nm Bipolar-CMOS-DMOS ("BCD") automotive grade process technology.

This smart technology IC chip is the first in the world to be a 180nm 8 inch Grade 0 process.

Note that TSMC's 90nm 8 inch is only expected to pass qualification (Not automotive like SilTerra)

https://www.tsmc.com/english/dedicatedFoundry/technology/specialty/bcd

With global adoption of electric vehicles, SilTerra new mass production IC chip is in enormous demand.

Benchmarking with global IC companies selling 8 inch Bipolar-CMOS-DMOS IC chips, a single wafer for the Bipolar-CMOS-DMOS IC could fetch at minimum USD24k per wafer.

Assuming just 30% existing capacity is used for this technology, revenue could fetch at minimum RM1.3bil (30% capacity for Bipolar-CMOS-DMOS), with profit margin of 30% RM400mil.

In addition to that, load to Chipone making up the remaining 70% at revenue of RM1bil with profit margin of 8% of RM80mil

At minimum, net profit could fetch RM480mil, at PE of 38 (Benchmarked to Inari), SilTerra's value to DNeX alone should beRM3.5 (Not including Ping Petroleum)


An Interesting article by G. Lam dated 1st September 2021.

Tin prices on the rise at LME-London.

Date...................... Cash-Settlement......LME Tin 3-month

19th.October 2021......39,650.00............38,350.00
18th.October 2021......39,600.00............38,250.00
15th.October 2021......38,950.00............37,500.00
14th.October 2021......37,875.00............36,775.00
13th.October 2021......37,800.00............36,550.00

No respite in sight for acutely tight tin market

By Boris Mikanikrezai and Orla O'Sullivan

Tin hit an all-time high this year, and was the best performer across the base metals space with a year-to-date gain of nearly 80%. In a context of mixed macrodynamics, the remarkable appreciation of tin prices has primarily been due to extremely bullish supply/demand dynamics.

On the supply side, the Covid-19 pandemic has impacted key tin-producing countries like Indonesia and Malaysia, resulting in lockdowns and output curtailments. It has also disrupted concentrate supply, especially from Myanmar, the world’s largest producer, where Covid-19 restriction measures have undermined the flow of raw material to Chinese smelters. And in China itself, Yunnan province was impacted earlier this year by a heat wave and energy consumption restrictions, undermining smelting activity.

On the demand side, tin has benefited from firm demand from the electronics industry. According to the Semiconductor Industry Association (SIA), global semiconductor industry sales expanded by 23% year on year in the first seven months of the year, with robust demand across all major regional markets.

The "outdated" chips are back in demand. Massive boost for Silterra.

Analysis Cars are gaining momentum as computers on wheels, though chip manufacturers' auto focus isn't on making components using the latest and greatest fabrication nodes.

Instead, companies that include Taiwan Semiconductor Manufacturing Co and Globalfoundries are turning back the clock and investing billions in factories that use older manufacturing techniques to make chips for vehicles.

The rapid digitization and electrification of cars has created a giant demand for smaller, more power-efficient auto chips, said Jim McGregor, principal analyst at Tirias Research. He added that cars don't necessarily need the latest manufacturing processes, though, and many are still using analog-based components for various functions.

Some chips in cars today are made using the same process nodes used in 2005 to make PC chips, McGregor said, adding that many factors go into the optimization of chip packages, including the desired battery life of the vehicle, the maximum distance between charging and refueling, and the weight of the car.

That said, some cars are equipped with advanced chips, fabricated using newer techniques, to handle artificial intelligence, infotainment, and communications. But don't forget, car makers are also keen on advancing microcontrollers on larger process nodes for applications like braking.

Taiwan Semiconductor Manufacturing Co. which makes cutting-edge mobile chips for Apple and Qualcomm, expects chips for cars to take on more manufacturing capacity in the future. The company is investing billions in factories, including one due to open in Japan in 2024, to make 22- and 28nm chips.

CEKD operators are determined to push up to 1.50 in the short term.

Those still holding - Congrats.

Posted by UlarSawa > Oct 18, 2021 11:26 AM | Report Abuse

Will China retaliate with anti dumping from Msia later. Wait n see later any news from China later. Correct?

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China will divert more production to Eastern steel mill. Hiaptek to benefit further.

@OTB - Many thanks for sharing the projection. HiapTeck looking good. Folks.

Posted by OTB > Oct 16, 2021 4:16 PM | Report Abuse

Please look at my projection below. .

Projected Q1 2022 PAT
I assume Hiaptek steel plant in Klang, PAT = 46.1 Million (same as Q3 2021)
35% Eastern Steel S/B, PAT = 39.5 *1.1 = 43.5 million
I assume 10% growth rate for this blast furnace plant provided the prices of iron ore and steel are at current rate or +- 10% of the present rate.
Total Q1 2022 PAT = 46.1+43.5 = 89.6 million.

Projected FY2022 PAT, EPS and target price
Total PAT = 89.6*4 = 358.4 million
Total number of shares = 1.732 billion
EPS = 358.4/1732 = 0.206
Target price if PER = 5, target price = 1.03
Target price if PER = 8, target price = 1.65
Target price if PER = 10, target price = 2.06

I believe the growth of Eastern Steel in FY2022 is > 10%, I believe the contribution from Eastern Steel may be 50 million per quarter. Hence my projection may be too conservative.

Ping Petroleum s now exploring opportunities to monetise economically attractive reserves in the Anasuria Cluster which has estimated proved and probable reserves of about 26.6 million barrels of oil equivalent. Ping also intends to optimise its current greenfield portfolio, such as Avalon, including acquiring the remaining 50% stake in Avalon not currently owned by Ping.

DNEX should be considered upstream- a direct beneficiary of the current surge in crude oil- by virtue of its 90% stake in PING Petroleum- based in the North Sea.

@ Philip

CTOS's Growth Strategy & Future Plans
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1- Further develop and extend ecosystem of end-to-end credit management solutions

2- To allocate 65% of CAPEX to invest in IT capabilities and Data & Analysis within the next two years (short term); to increase investment in AI and Machine Learning (medium to long term).

3-Continue to deepen and broaden our data sources
To invest in various new databases; in the process of also including alternative data sources i.e. eTR Plus.

4- To expand into new verticals in Malaysia (i.e. automotive, real estate and insurance sectors)
To penetrate these potential sectors that are typically present in global credit bureau, but nascent and unique in Malaysia

5- To maintain market leadership for CRA services in Malaysia
To reinforce market leadership in Key Accounts segment by growing portfolio of major corporations e.g. banks and financial institutions, and launching new digital solutions.

6- To increase service coverage in the Commercial segment of vast SME consumer base.

7- To continue advocating financial literacy and credit health among individuals and end-consumer (D2C).

8- Selectively pursue more acquisitions and investments.

9-Seeking opportunities to expand geographically to other countries within the Asia Pacific region- particularly Thailand & Philippines.

The Malaysian credit scoring industry has been experiencing a compounded annual growth rate (CAGR) of 12.9% from 2016 to 2020. Last year, industry revenue hit RM225mil and is expected to almost double to RM406mil by 2025, predicts IDC Malaysia.

But it is the entire Asean region where the growth potential lies.

Despite having a large population, the Asean credit reporting industry revenue remains a fraction of that of developed nations, indicating robust growth opportunities as per Dennis Martin, CTOS group chief executive.

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Posted by Philip ( buy what you understand) > Oct 17, 2021 2:57 PM | Report Abuse

If it has 70% market shares didn't that mean it can only grow another 30% before it will have 100% market share?

At pe100, are we aiming that CTOS will be able to be used in other countries like Singapore, China, Philippines and Indonesia which already have their credit reporting agencies?

https://klse.i3investor.com/servlets/forum/600551271.jsp

https://klse.i3investor.com/servlets/forum/600551271.jsp

https://klse.i3investor.com/servlets/forum/600551271.jsp

Rm 1.20 on the way , be patient.

HLIB maintains a “Buy” rating on Bumi Armada with a target price of RM0.80
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HLIB Research expects Bumi Armada’s consistently strong earnings to continue in the foreseeable future as 1H21 net operating cashflow has improved by 187% YoY.

“Its current net debt has declined to RM6.9 billion (from RM8.8 billion in 2Q20) and net gearing has also fallen to 1.9 times in 2Q21 (from 2.8 times in 2Q20), the first time it has been below two times since 2Q18 and is expected to fall further in subsequent quarters,” Low wrote.

Higher oil prices of late could ease the group’s asset monetisation process for its offshore marine services business to repay its debt.

The group disposed two vessels in the quarter and is expected to dispose six more vessels in 2H21.

“Hence, we do not foresee Armada having any trouble meeting any of its current debt obligations. Armada’s 98/2 joint venture (JV) with India’s Shapoorji Pallonji Oil & Gas Pte Ltd is also expected to commence operations in FY22 despite impending delays due to Covid-19, which could boost its profits in the near future,” noted Low.

The investment bank upgraded Bumi Armada’s earnings by 29%, 11% and 11% for financial year 2021 (FY21), FY22 and FY23 respectively to factor in the better than expected performance for Bumi Armada’s FPSO segment and further streamlining of its operations from the sale of its offshore support vessel fleet.

“We maintain our “Buy” rating on the stock with an unchanged target price of 80 sen as we roll forward our valuations to FY22, based on eight times FY22 earnings per share and top pick the group for the oil and gas sector,” Low added.