CIMB -Reiterate Add and TP of RM1.21

We reiterate Add on HSS with a DCF-derived TP of RM1.21 (WACC: 9.4%, TG: 4.5%). At our TP, HSS will trade at 16.6x FY24F P/E, which is still below mean post-Covid-19. Downside risks are slower rollout of projects and single project risk from MRT 3 PMC.

We maintain our view that, while officially its tenderbook is at RM415m (historically 50% success rate.

There is a potential RM1.9bn worth of engineering and project management services (EPMS) projects in the pipeline locally over the next two years .

The research house-CGC_CIMB- also noted Ranhill’s growth outlook seemed encouraging, driven by the potential increase in demand for water supply in Johor, on the back of the planned economic zones in the state.

In addition, there is incremental earnings from the recently secured contract in March this year for a 100MW gas-fired power plant in Sabah with planned commercial operations in 2026, as well as contributions from its maiden 50MW large-scale solar four or LSS4 farm in Bidor, Perak from December 2023.

“However, we feel the key challenge would be for YTL Power to increase its stake meaningfully to equity account (at least 20%) Ranhill’s earnings,” said the research house in a note to clients yesterday.

Ranhill is involved in three key segments, namely, environment, energy and engineering services.

10.5 million EMCC shares done at 43 sen towards the end.- the days high. EMCC should stabilise at 65 sen.

Soon it will be YTL Ranhill Bhd.

TanSri Hamdan controls 42.6% of Ranhill. A tussle to take control by YTLP may be in the offing.

To equity account Ranhill's earning, YTLP must increase its stake to at least 20%%. Im pretty sure they will increase their stake in Ranhill accordingly.

CGS-CIMB has named YTL Corp Bhd , Malayan Cement Bhd and HSS Engineers Bhd as the top beneficiaries from the HSR’s revival, according to a note on Wednesday (Sept 13).

UBS GROUP AG (a substantial shareholder) acquired 6,246,304 shares on 10-Oct-2023.

The Game Changer is YTL's Green Data Centres -TS Francis Yeoh.

The game-changer, however, is the construction of a RM15 billion data centre park in Kulai, Johor that could provide up to 500MW of capacity, co-powered by a solar farm on an adjacent plot.

The massive 664-hectare solar-powered data centre park will see the first phase of 72MW going online in early 2024.

Yeoh believes that entering the market on a large scale at this stage is well-timed and that it has given YTL group the opportunity to anchor the business from the start on renewable energy, which could put it well ahead of the pack as companies pursue net zero carbon emission policies.

"YTL is a physical infrastructure developer, and now we are layering this with the digital infrastructure business. We have been building and owning physical infrastructure businesses like power generation and distribution, green energy, water and sewage treatment, express rail and real estate.

"Now we are adding a layer of revenue with digital infrastructure businesses like 5G data communications, digital bank and data centres," he said.

This will augur well for YTL's sustainable revenues into the immediate and distant future.

"We are blessed as our present generation and our next generation of leaders within the YTL group are competent engineers who are very well versed in both the physical and digital infrastructure businesses," Yeoh added.

Substantial Shareholder, UBS GROUP AG acquired 1,647,100 shares in YTL Corp on 26th Sept.

Benchmarked against (its closest peer) - PPJACK's Market Cap of 752 mil (98 sen per share) with paid up of 768 mil shares.

EMCC is valued at 68 sen- (752/1.11 b paid up cap for EMCC shares).

The appreciation of the market capitalisation of YTL Corp Bhd and YTL Power International Bhd has raise their chances of being included into the 30-stock FBM KLCI in the upcoming November review, according to Hong Leong Investment Bank (HLIB).

“Based on the current market capitalisation of YTL Corp and YTL Power, both entities are currently ranked above the 25th position within the KLCI. If this is maintained, both will be automatically included into the bellwether index in the upcoming November review,” HLIB said in a note on Friday.

The excitement mainly revolves around YTL Power, whose prospects HLIB remains upbeat about, with guided earnings sustainability for the next three years, partly driven by the group’s power business in Singapore through YTL PowerSeraya Pte Ltd.

“PowerSeraya’s earnings are expected to be stronger for the financial year ending June 30, 2024, driven by the tight power market situation, high lock-in retail prices, and low liquefied natural gas cost in the long term,” said the investment bank.

Moreover, HLIB said YTL Power’s venture into renewable energy (RE) and digitalisation areas are strategically in line with the government’s National Energy Transition Roadmap (NETR).
The group has planned for 500 megawatt (MW) in data centre capacity over 10 years, investments worth RM15 billion.

HLIB said the first phase of 72MW, of which 48MW is secured for SEA Ltd, is under construction, and will be completed in stages over four years, with contributions starting in early 2024.
“When the assets mature, we do not discount potential monetisation,” said the investment bank.
HLIB said the development of YTL Power's 500MW large-scale solar project will eventually be developed to support the green energy supply to the group’s data centres.

“We believe there is an exciting future for the segment, as demand for green data centres is on the rise, with new opportunities to export RE to Singapore under the NETR by leveraging PowerSeraya,” it said.

Therefore, HLIB opined that YTL Power’s current valuation is “undemanding”, while earnings and dividends may “continue to surprise to the upside”.


https://theedgemalaysia.com/node/683523

Cape EMS Bhd has made an impressive debut on Bursa Malaysia's Main Market on Friday (March 10), opening at a premium of 52 sen or 57.8% over the initial public offering (IPO) price of 90 sen.

Cape EMS was the day’s most active stock with 253.58 million shares traded.

Cape EMS managing director and chief executive officer Tee Kim Chin said the group intends to capitalise on its listing status to further fuel its growth trajectory. “With the additional production capacity that we intend to purchase using our IPO proceeds, we believe that we are on track to expedite our growth in the EMS industry to cater to the expected increase in demand for EMS services, driven by the projected global growth of the semiconductor and electronics market,” she said.


https://www.theedgemarkets.com/node/658715

Sunview, Huawei sign MOU to collaborate on renewable energy.

theedgemarkets.com

February 17, 2023 12:29 pm +08

KUALA LUMPUR (Feb 17): Clean energy service provider Sunview Group Bhd's wholly-owned subsidiary Fabulous Sunview Sdn Bhd has signed a memorandum of understanding (MOU) with Huawei Technologies (Malaysia) Sdn Bhd to collaborate in the field of renewable energy, including electric vehicle charging, micro grids, telecommunications site modernisation and energy storage solutions, on a non-exclusive basis for a period of 12 months.

Upon entering into a contractual arrangement, Huawei Malaysia will basically act as a technology provider, while Sunview would be a strategic fulfilment partner, subject to the finer terms and conditions between the two parties, Sunview said in a statement on Friday (Feb 17).

“With the increasing adoption of renewable energy worldwide, the strategic partnership with Huawei comes at an opportune time where Sunview will be able to create more value with the technology from Huawei in assisting more Malaysian companies in the transition to renewable energy usage,” said Charlie Chow Kian Hung, Sunview's chief operating officer and executive director.

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

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.

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.

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.

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%)

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.

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.

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.

@ 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.

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

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

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.

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.

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.

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

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

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

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.

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.

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
...................

上升股:恒源炼油 阻力RM6.88

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.

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.

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.

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

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

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.

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.)

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

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.

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.

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.

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.

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.

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.

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.

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!