HLIB maintains a “Buy” rating on Bumi Armada with a target price of RM0.80
--------------------------------------------------------------------------------------

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.

Latest price of TIN per mt - approaching all time high.

Contract........Bid................Offer

Cash..........37,850.00......37.875.00

https://www.lme.com/en/Metals/Non-ferrous/LME-Tin#Trading+day+summary

"If tin price remains at its current high of about US$37,000/mt in 2022, this could result in 23% upside to our target price of RM3.02 to RM3.73. "

UOB Kay Hian - latest Update on MSC.

The EV revolution and move towards more sustainable energy sources gather pace, tin will have a new and crucial role to play in this new lower-carbon world. It is an essential input for EVs and their batteries, as well as for renewable energy generation, energy storage and the electronics needed to control and distribute that energy.

According to the International Tin Association, tin demand could rise by up to 60,000 tonnes per year for use in EVs and energy storage by 2030*. Research is also looking into the applications of tin alloys in various battery technologies, including lithium-ion and zinc-ion batteries.

When alloyed with other metals, tin can help to create more powerful conductive pathways, enhancing battery performance and delivering more efficient power distribution. It can also be used as a protective coating on anodes, improving the stability of the battery.

Find out more about LME Tin at lme.com/tin

Energy crisis boosts oil demand: IEA

Power outages, soaring coal and gas prices prompt turn to oil

Published on 14 Oct 2021


The IEA, which advises governments on energy policy, said it now expects global oil demand for this year and 2022 to be higher than in its previous forecast.

“Oil prices are scaling multi-year highs as a shortage of natural gas, LNG (liquefied natural gas) and coal boosts demand for oil, which could keep the market in deficit through at least the end of the year,” the Paris-based agency said.

“Record coal and gas prices as well as rolling black-outs are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming,” it said in its monthly review of the oil market.

Gas prices are soaring as the winter approaches in the northern hemisphere, adding to inflationary pressure and raising concerns that it could harm economies recovering from the Covid pandemic.

Oil prices have also increased to multi-year peaks in recent days.

The IEA said global oil demand is now forecast to rise to 96.3 million barrels per day this year, up by 5.5 million from its previous report. It will increase by 3.3 million bpd next year.

World oil supply, meanwhile, is expected to rise sharply in October as US output recovers from the fallout of Hurricane Ida, which severely disrupted operations in the Gulf Coast in late August.

Supply is also getting a boost as OPEC and its Russian-led allies continue to unwind production cuts, the IEA said. – AFP, October 14, 2021

RE players want a floor price for solar tariff in Budget 2022

Publish date: Thu, 14 Oct 2021

KUALA LUMPUR: Renewable energy (RE) industry players have asked the government to step to set a floor price for solar tariff that is economically viable for all parties.

This is to ensure that the projects are bankable to avoid any construction halts when solar developers fail to achieve a financial close, Solarvest Holdings Bhd group chief executive officer Davis Chong Chun Shiong said.

"Furthermore, a floor price will also enhance the attractiveness of solar development projects and keep profit at a sustainable level which could spur greater investment interest for the long term,” he told Bernama.

Chong said under the Large-Scale Solar 3 (LSS3), solar tariff rates were very competitive, thus, causing delay in certain projects due to financing issues.

Solarvest also hopes the government will be able to reassess the RE quota allocation under the power generation plan.

"While we are thankful for the recently improved RE target from the previous 20 per cent by 2025 to the current 31 per cent by 2025 and 40 per cent by 2035, we still feel that the goals set are too modest, especially given the recent commitment for Malaysia to achieve carbon-neutral status by 2050.


"Thus, we hope the government will consider increasing the quota for the solar sector to somewhere around 8.0 GW by 2025 and 20 GW by 2035.

CTOS's Potential & Strength

- Its monopolistic qualities.
- Has nearly 70% market share.
- Good relationship with external source of information.
- Good reputation with most financial institutions.
- Brahmal effect- The man with the Midas's touch.
- The only listing company in Malaysia on credit rating provider.
- Majority of shares are on big institution and low float shares outside.
- Value added in credit reporting compare to peers.
- CTOS invested heavily in Data Cyber security- the best in the industry.
- Expanding Thailand business and potential other ASEAN countries.

MSC's state of the art new smelter boasts production costs that are at least 20% lower than the old ones. This is due to the state-of-the-art technology which uses a top submerged lance furnace that provides better efficiency via its single-stage smelting versus multistage smelting process used previously - per UOBKH Research.

The plant will also have 50% higher production capacity while requiring over 40% less manpower.

The TIN price @ LME is hovering around US$36,000 per ton is a massive boost to MSC's bottomline.

Apologies Nick- misread the article.

Upstream reported that Petronas has suspended the bidding exercise for a floating production, storage and offloading (FPSO) vessel for the deep-water Limbayong field off Sabah, unsettling the contracting sector. The report indicated that a disagreement is having a direct impact on the FPSO contest with the Sabah state government pushing for greater participation and local content in projects in its own waters.

Delay, rebid or alternative tie-in solutions. This could mean a delay to allow Petronas to address procedural issues or a completely new tender invitation to be issued soon given that Petronas has already awarded a subsea equipment contract to TechnipFMC in June this year. An alternative solution could be the nearby Bestari oil discovery, which was earmarked as a tie-in field to Limbayong, hosting the FPSO instead of Limbayong. The final investment decision for Bestari is due soon, and Upstream’s sources suggested that developing Bestari first could deliver a better economic outcome.

Open only to Malaysian bidders. The tender was open only to Malaysian contractors or Malaysian-led joint ventures. Recall that the Malaysian bidding groups were Yinson Holdings, MISC, Sabah International Petroleum (SIP) and a joint venture between Bumi Armada, MTC and India's Shapoorji Pallonji. Upstream indicated that Sabah International was in a favourable position to land the FPSO contract even though the other contenders were still in the race.

The Limbayong FPSO, under the original tender specifications, required a nameplate storage capacity of 600,000 barrels of oil and production capacity of 60,000 barrels per day (bpd) of liquids, including 40,000 bpd of oil and 180mil cubic feet per day of associated gas together with water injection facilities of up to 75,000 bpd.

“If tin price remains high at this current level in 2022, this could result in a 20% upside to our target price of RM3.02 at RM3.61,” UOB Kay Hian said in a note to clients.

Business-wise, a more meaningful growth will be seen in 2022 when its new eco-friendly plant runs at 100% capacity. MSC’s production will be done at its new smelting plant in Pulau Indah as it shuts down its 100-year-old reverberatory furnaces in Penang.

“The new smelter boasts production costs that are at least 20% lower than the old ones. This is due to the state-of-the-art technology which uses a top submerged lance furnace that provides better efficiency via its single-stage smelting versus multistage smelting process used previously,” said UOBKH Research.

The plant will also have 50% higher production capacity while requiring over 40% less manpower.

This will also help reduce MSC’s carbon footprint through the use of natural gas, solar panels and waste heat recovery.

The research firm noted that despite the movement control order (MCO), MSC posted a healthy net profit of RM25mil for the first half of 2021 compared with a net loss of RM12.3mil in the same period in 2020.

“As the MCO eases, MSC is currently operating at 100% workforce capacity. As such, we can expect stronger earnings moving forward as MSC ramps up its production. We believe the drop in production this year will be partially mitigated by the lofty tin prices,” it added.

According to the research firm, the group is expected to post a three-year (2021-2023) earnings compound annual growth rate of 97% as it is poised to benefit from strong tin prices and robust structural demand from the potential adoption of next generation technologies amid the market’s supply shortage. MSC’s future growth will be further supported by exploration of new mines and development of its Butterworth land, it added.

My pleasure Bro - Hope we all Banyak Banyak Zhun- end of the day we all want to make money from the stock market.

Posted by BanyakZhun > Oct 11, 2021 7:02 PM | Report Abuse

Tq @Goldberg for your detail research and write up. Really helpful.

Malaysia Smelting Corp (MSC) Bhd, is currently trading at “cheap valuations of four times 2022 forecast price to earnings (PE) at the spot price of circa US$35,000 (RM146,230) per tonne,” according to UOB Kay Hian (UOBKH) Research.

The Energy sector is transforming from the traditional coal fire electricity generation to renewable energy generation to reduce carbon emission to prevent further global warming.


reNIKOLA group of companies are having a total of 88 MWp of solar assets on hand and another huge solar farm of 330 MWp in capacity in the pipeline.


The newly injected “assets” are extremely valuable based on market valuation. Upon completion of the RTO, PEB will be one of the largest solar renewable energy player.

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.

CMS's associate OMH to boost earnings going forward.
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Cement - full force
Facilities management (Road building/maintenance) - no more stop order
KKB - engineering full force
Kenanga - financial services, not much change
OMH - Better ASP going forward - the biggest catalyst for further upside.
MSAP - bigger scale compare previously
Sacofa - big tender coming soon

CEDK a cornered Stock.

Posted by charlie chia > Oct 10, 2021 2:14 PM | Report Abuse

Let watch on Monday on the momentum
Look like something is brewing
Small market capital about 195m shares
Directors already control more than 75%

CEKD - the leader in the die cutting industry in Malaysia.

Tin - the ‘forgotten eV metal’. -massive boost for MSC

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

StoreDot accelerate to fast-charging eVs with silicon and tin

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.

CEKD Berhad is a die-cutting solutions provider and have been involved in the manufacturing of die-cutting moulds and trading of related consumables, tools and accessories since 1989. They have more than 30 Years of Experience in the Industry.

The board stated they are the LEAD MANUFACTURER for the complete custom die-cutting solutions. As date of 6 August 2021, they are serving about 1309 customers from various industries such as paper printing and packaging industry, electrical and electronics industry, automotive, plastic packaging as well as textile and leather industries. with a total of 48.3% of average gross profit margin.

From the above clarification, we can know CEKD is a LEADER in this industry.

CEKD- Upper limit is 92 sen.

Most of the IPO with rally 90% - 150% from the First Debut. (provided company has a good plan and future prospect)


RAMSSOL - IPO Price RM 0.45 - Highest Price - RM 0.955 (111% of gain)

CTOS - IPO Price RM 1.10 - Highest Price - RM 2.10 (90% of gain)

PEKAT - IPO Price RM 0.32 - Highest Price - RM 0.930 (188% of gain)

VOLCANO - IPO Price RM 0.35 - Highest Price - RM 0.705 (100% of gain)



CEKD - IPO Price RM 0.48, Current Price - RM 0.62 (28% of gain Only)


The Technical Chart showing it will reach All Time High Level soon. How much would you pay for this CEKD?

"CEKD has leveraged off the industrial growth in Malaysia to expand its business, these industries include paper printing and packaging, the E&E, automotive and textile, just to name a few. These industries will continue to grow and thus so does CEKD’s outlook and sustainability.

"Further, the Covid-19 pandemic has led to a substantial increase in demand for packaging material which CEKD supply to. We see a lot more growth opportunities given the number of industries that CEKD can cater to while not relying on any particular industry, [mitigating] the risk of over-reliance [on a particular sector],"

CEKD to focus in the Packaging Sector- the high growth sector.
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CEKD will invest in two new factories in Kepong to consolidate the Hotstar operations to improve productivity. Hotstar's operations are currently conducted at three different locations. So with the consolidation, we are sure that we can increase our efficiency and increase management ability.

We will be investing in technology, software and new machineries to increase our capability due to higher demand of the accuracy of die-cutting moulds, the fast turnover of the packaging industry and the sophisticated packaging needed.

Along with the rapid development of e-commerce, the boost of e-commerce would lead to higher demand for packaging, such as paper boxes and corrugated boxes, as well as eco-friendly packaging opted by some e-commerce players.

As they will need our die-cut moulds for their packaging, it will also provide us opportunity for innovation in the packaging industry to enhance the packaging design and product safety, improve the unboxing experience and optimise the packaging for last-mile delivery.

MALAYSIA SOLAR ENERGY MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 - 2026)


The solar energy installed capacity in Malaysia is expected to register a CAGR of more than 10% in the forecast period of 2021-2026, reaching 2.07 GW of installed capacity in 2026 from 882 MW in 2019.

The COVID-19 has slightly affected the solar PV installations in the country during Q1 and Q2 2020 due to the lockdown restrictions, supply chain disruptions, solar PV production, and project implementation delays. Moreover, the government also postponed ambitious solar tenders, including a tender of capacity 1 GW in 2020.

However, with the increasing investments in the renewable energy sector, and the country's efforts to shift from fossil fuel-based power generation, the solar energy market is expected to grow significantly during the forecast period.

Moreover, Malaysia's government has implemented various supportive policies and incentives for the growth of solar energy, which is further expected to drive the market.

The utility segment is expected to dominate the solar energy market in Malaysia, owing to the upcoming large-scale solar power projects in the country.

Malaysia is aiming to install 9 GW of solar energy capacity by 2050. Therefore, the country's ambitious solar energy targets coupled with business models such as solar leasing are expected to create a significant amount of opportunities in the near future.

The solar market is expected to grow significantly, owing to the supportive government policies and initiatives at different end-user segments like residential or commercial & industrial (C&I).

The corporate exercise is approaching for this pure play renewable/solar energy GEM aka Re NIKOLA.

CEKD Bhd - A Leading Die-cutting Mould Manufacturer in Malaysia.

CEKD Bhd (CEKD) is a die cutting solutions provider, involved in the manufacturing of die cutting moulds and trading of related consumables, tools and accessories.

Heightened demand for die-cutting mould is highly anticipated following the economic recovery. CEKD is also planning to capture bigger market by expanding its business within the Southeast Asia region.

Good to accumulate at current valuation.

Hi Blckpepper-apologies for the delay-here you go

https://www.omholdingsltd.com/wp-content/uploads/2021/09/2021.09.28-UOBKH_Commodities-Rally-Continues-to-Gain-Momentum.pdf

Credit Suisse remain gung-ho on CTOS

KUALA LUMPUR (Oct 6): Credit Suisse has initiated coverage of CTOS Digital Bhd with an “outperform” rating and a target price (TP) of RM2.50, in view of its wide sustainable moat in the credit rating industry, bright industry prospects and anticipated multi-year growth.

In a note on Wednesday, Credit Suisse analysts Danny Goh and Jae Ang said CTOS is deemed to be a leading credit rating agency in ASEAN, with leading presence in the Malaysian and Thailand markets.

CTOS offers free dark web monitoring to all Malaysians for one month

“CTOS places paramount importance on cybersecurity risk and data breach protection, with all data and information in our possession protected with world-class certified data security technology,” he said.

Martin said the firm will continue to make significant investments to ensure that its information technology (IT) and data security framework, policies, procedures and systems are benchmarked against BNM’s Risk Management in Technology (RMiT) standard and ISO 27001, as well as other global standards.

He explained that as cyberattacks are becoming more frequent and sophisticated, the company had also stepped up its proactive assessments and processes to protect the integrity of its data.

He also clarified that BNM’s decision to temporarily suspend access to CCRIS services is applicable to all credit reporting agencies and not just CTOS.

He added that the industry-wide move is a precautionary measure to further protect customers’ information.

Martin assured customers that CTOS is working closely and expeditiously with the related regulators to monitor the situation, and is also conducting additional assessments to identify if further security measures are needed.

CTOS set to benefit further.

With CTOS having the best IT security in the industry, further gain in market share is highly likely should regulators impose stricter standards.

CTOS Assures Customer Data Is Secure In Light Of CCRIS Suspension
By Editor - October 2, 2021

Malaysia is reeling on the back of another series of personal data leak news, this time supposedly from one of the government agencies. In order to protect further exposure Bank Negara had stepped in and temporarily suspended access to Credit Control Reference Information System.

However, there should be no concern for users of CTOS, the credit reporting agency has confirmed that its data assets are secure. In efforts to allay fear and peace of mind, the company also announced that dark web monitoring through CTOS SecureID would be available free of charge for one month. They can use the service to check if they data is available on the dark web.

CTOS Group Chief Executive Officer, Dennis Martin said, “We would like to assure the public that as of now, there are no indications that our data assets have been breached. As Malaysia’s leading credit reporting agency, CTOS places paramount importance on cyber security risk and data breach protection, with all data and information in our possession protected with world-class certified data security technology.

“We have made and will continue to make significant investments to ensure that our IT and data security framework, policies, procedures, and systems are benchmarked against Bank Negara Malaysia’s Risk Mgmt in Technology (RMiT) standard and ISO27001, as well as other global standards.”

He went on to explain that as cyber-attacks were becoming more frequent and sophisticated, the company had also stepped up its proactive assessments and processes to protect the integrity of its data.

“Our systems are regularly subjected to comprehensive penetration tests, vulnerability assessment and audits by 3rd party IT security specialist firms to ensure its continued robustness. We are confident that we are well-positioned to defend our data assets against any potential cyber security attacks, which is further affirmed by the fact that there has been zero occurrences of any data breach since our inception in 1990,” he added.

Martin also clarified that Bank Negara Malaysia’s decision to temporarily suspend access to the Central Credit Reference Information System (“CCRIS”) service was applicable to all credit reporting agencies (CRAs), and not just to CTOS. The industry-wide move is a precautionary measure to further protect customers’ information.

Every US$2,000/mt increase in our tin price assumption of
US$25,000/mt in 2022 could raise MSC’s earnings by about 20% annually. If tin price
remains at its current high of about US$37,000/mt in 2022, this could result in 23% upside to
our target price of RM3.02 to RM3.73.

UOB Kay Hian dated 29/9/2021

Re Nikola a Pure Green ( Solar) Power player to benefit in future.

"According to Tenaga National, coal was the predominant fuel for producing electricity in Peninsular Malaysia last year, making up 65.84% of the power being generated. This is followed by gas at 29.67%, hydropower at 3.78% and solar power at 0.7%."

https://paultan.org/2021/09/28/rmk-12-malaysia-to-be-carbon-neutral-by-2050-cleaner-electricity-to-replace-coal-fired-power-plants/

CTOS Digital attracted record number of cornerstone investors-CTOS growth is Compelling.
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A total of 23 cornerstone investors invested in CTOS Digital, including renowned names such as the Employees Provident Fund Board, Permodalan Nasional Bhd, Aberdeen Standard Investment, AIA, Eastspring Investments, FIL Investment Management and JP Morgan Asset Management.

CTOS Digital is the holding company of CTOS Data Systems Sdn Bhd and has an associate stake in Business Online Public Company Limited in Thailand – making the Group Asean’s leading credit reporting bureau.

Group chief executive officer (CEO) Dennis Martin said that CTOS Digital’s growth story, combined with an innovative, comprehensive product offering has proven to be a compelling one.

“The tremendous support from notable local and global institutional investors reflects their confidence in our strong track record and growth trajectory going forward,” Martin added.

Tin may be the ‘forgotten eV metal’. 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, plus some solid state technologies. Several hundred papers and patents have tracked development of tin-based materials to maximum theoretical capacity and even beyond. Although the field is highly competitive, startups and major OEMs are starting to signal their interest in tin and International Tin is monitoring developments with keen interest.

StoreDot accelerate to fast-charging eVs with silicon and tin

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.

StoreDot announcedthat they will work with Chinese manufacturer EVE Energy to mass-produce their XFC FlashBattery for electric vehicles (EVs). “XFC technology is absolutely critical to accelerating the adoption of petrol- and diesel-free vehicles by eliminating the barrier of range and charging anxiety”, said EVE’s Chairman of the Board, Dr. Liu Jincheng. Daimler, BP, and Samsung are also key investors in the StoreDot technology.

A key component of the development is a new anode material that replaces graphite with new high-capacity materials. “Most of our efforts currently are focused on transitioning to silicon and tin”, said StoreDot CEO Doron Myersdorf.

StoreDot had previously sent Gen 1 samples to potential customers with germanium-based anodes but found this metal was not sufficiently abundant and not affordable. Their Gen 2, silicon-tin, fast charging cell already records an energy density of 240 Wh/kg, with a longevity of 1,000 cycles possible by the end of the year.

By 2028, this energy density could almost double with the launch of Gen 3 cells. These are designed with a hybrid form of solid-state technology and could store 440 Wh/kg. Lead-acid batteries, by comparison, hold 35-40 Wh/kg.

Traditionally, lithium-ion batteries use a graphite (carbon) anode. These are extremely stable at normal charging rates but have a high electrical resistance. During fast-charging, this causes needle-like dendrites to form on the graphite anode surface, damaging the battery.
StoreDot have replaced the solid graphite anode with tightly packed balls of silicon-tin to reduce resistance and increase conductivity. These nanoscale balls swell during charging, but there is enough room between the balls to limit swell-induced damage that has previously caused problems for non-graphite anodes.

Our view: EVs currently struggle to compete with petrol and diesel vehicles when it comes to refuelling; 3-4 miles per minute charging is the current industry standard for EVs. StoreDot hope their Gen 2 cells will provide 20 miles per minute, with Gen 3 reaching 25 miles per minute. If charging station innovation can keep up with StoreDot, their silicon-tin extreme fast charging cells could transform commercial EV charging.

Dagang NeXchange Bhd is a leading service provider in Malaysia’s trade facilitation, energy sector and more recently manufacturing ie wafer fabrication viz Silterra.

Both of its recent investments ie PING Petroleum and Silterra were acquired on the cheap and will be the key twin driver for future earnings growth especially Silterra.

Its massive return on its investment in PING Petroleum is just a prelude on more bountiful returns from its investment especially in Malaysia's ONLY wafer foundry.

A market cap of RM12 billion or RM3.50 per share in 2 year's time is achievable.

Dagang NeXchange Bhd is a leading service provider in Malaysia’s trade facilitation, energy sector and more recently manufacturing ie wafer fabrication viz Silterra.

Both of its recent investments ie PING Petroleum and Silterra were acquired on the cheap and will be the key twin driver for future earnings growth especially Silterra.

Its massive return on its investment in PING Petroleum is just a prelude on more bountiful returns from its investment especially in Malaysia's ONLY wafer foundry.

A market cap of RM12 billion or RM3.50 per share in 2 year's time is achievable.

Absolutely!

A record number of 23 big time local and foreign institutional funds invested in CTOS Digital.

Posted by Powerplay666 > Sep 23, 2021 6:06 PM | Report Abuse

Ctos doesn't really excite my daily juice during trading but I have a small stake here since 1.78 as I believe this will slowly climb higher and higher over time. It will be around rm3.50 within the next few months. There are too many funds invested heavily here to let this stock fail.

Chip shortage to cost automakers US$210bil- Silterra Poised to Benefit From This

Publish date: Fri, 24 Sep 2021, 10:40 AM

NEW YORK: The cost of the intractable semiconductor shortage has ballooned by more than 90%, pushing the total hit to 2021 revenue for the world’s automakers to US$210bil .

That’s the latest dire forecast from AlixPartners, which predicted global automakers will build 7.7 million fewer vehicles due to the chip crisis this year.

That’s nearly double the consultant’s previous estimate of 3.9 million in lost production.

Despite ongoing efforts to shore up the supply chain, semiconductor availability has worsened as automakers exhaust stockpiles and other industries have no more to spare.

“The barrel is empty, there’s nothing left to scrape,” Dan Hearsch, managing director of AlixPartners automotive and industrial practice, said in an interview.

“Going forward, sales will suffer. Sales hadn’t suffered because there was enough inventory to draw from. It’s not there anymore.”

Automakers have begun warning the problems are metastasising and could crimp third quarter earnings, with Volkswagen AG’s truck unit Traton SE the latest to sound the alarm on Tuesday.

Key supply centres in South-East Asia have been hit with factory shutdowns as Covid-19 outbreaks spread. It now takes a record 21 weeks to fill chip orders and auto executives say the shortage could last for years.

“It certainly feels like the most protracted supply shortage the industry has seen because it’s not over,” Hearsch said.

“It’s certainly the most far-reaching. This is every place. This is everybody.”

As inventory on dealers’ lots has dwindled, car prices have skyrocketed, reaching a record US$43,355 in the United States in August, according to researcher Cox Automotive. Supply is so constrained, some dealers have resorted to renting cars so they have something to display in their showrooms, Hearsch said.

The chip shortage began late last year when automakers underestimated demand as pandemic restrictions loosened.

The crisis has defied resolution, thanks to acts of nature, fire and Covid-19.

This is the third estimate AlixPartners has issued this year on the financial impact of the shortage.

It began by predicting in January it would cost the industry US$61bil and then lifted that to US$110bil in May.

Hearsch said he couldn’t guarantee there won’t be further upward adjustments to the forecast given myriad uncertainties facing the industry.

“Frankly, it’s just not getting better,” Hearsch said.

“People are adjusting to the fact that this is going to take much longer than we all thought.”

- Bloomberg

Foxconn teams up with Malaysian tech firm DNeX - areas of collaboration to include EVs.

Following the announcement of its collaboration with energy group PTT to build electric vehicles (EVs) in Thailand at the end of last month.

This is expected to pave the way for a strong working relationship between both parties, said DNeX group MD Tan Sri Syed Zainal Abidin Syed Mohamed Tahir. He said potential areas for collaboration between DNeX and Foxconn are semiconductor and downstream products, EVs and businesses related to the EV value chain.

This may be old news but still very much relevant as DNEX will be focussing on EVs in collaboration with Foxconn.

Interesting observation Bro.
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Posted by Doek123 > Sep 22, 2021 9:16 PM | Report Abuse

CTOS closed at all time high RM2.02 or +2.02%

And it happens on 22 Sep 2021. In fact, CTOS has total shares issued of 2.2 billion shares.

Coincidence? Banyak same number, banyak ong. Esok sure limit up!!!!!

CTOS KYC Screening to benefit from the massive surge in on line banking & QR payments.
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CTOS KYC (Know Your Customer) Screening is a world-class customer identification and verification solution that gives you the clarity and transparency you need to protect your organisation from various risks. This is in partnership with LexisNexis Risk Solutions, part of RELX Group, a leading global provider of information and data analytics used by 100% of the Top 50 US Banks, 80% of Fortune 500 Companies and serving customers in more than 100 countries. This powerful tool enables you to efficiently verify and screen your customers, thus fulfilling your company obligations under KYC requirements which is an essential component in preventing money laundering and terrorism financing.

Our CTOS KYC Screening service offers a cost-effective, pay-per-search and structured risk data screening to help organisations align with global compliance and enforcement standards, which cover sanction list, enforcement, politically exposed persons (PEPs) and adverse media watch lists.

Benefits- Checks the real identity or background of your customer, supplier or partner.
Detect potential financial fraud, political exposure or corruption.
Prevents you from being used for criminal activities like money laundering.
Helps your business comply with laws and avoid serious penalties.

https://www.theedgemarkets.com/article/ewallet-qr-payments-and-online-banking-surged-exponentially-one-year-june-2021-says-tengku

Tuesday, 21 Sep 2021

PETALING JAYA: The prospects of CTOS Digital Bhd looks bright with higher earnings anticipated over the next few years underpinned, among others, by inorganic expansion and expansion into new sectors.

The company, a leading credit rating agency (CRA) and credit-related data solutions provider with over 70% market share in the country, hopes to forge new partnerships as this would spur its expansion in Asean.

Maybank IB Research said strong organic growth potential is underpinned by new verticals, especially upside from the pending launch of digital banks, while inorganic expansion is happening in parallel per the acquisition of stakes in Basis Corporation (Basis) and Business Online (BOL), notable credit rating companies in Malaysia and Thailand, respectively.

“These partnerships, in our view, are synergistic to the overall group operating footprint and will facilitate accelerated expansion within Asean.

BOL is the largest company information bureau in Thailand, with an estimated 59% market share.

It noted that expansion into new regional markets or potential synergistic mergers and acquisitions (M&As) could further broaden the group’s reach and market share.

The research house, which is initiating a coverage with a “buy” call on the stock with a target price of RM2.17, said it is projecting a three-year (FY’20-FY’23 estimate) core net profit compounded annual growth rate (CAGR) of 28%, driven primarily by growth across all customer segments and average revenue per customer (from new offerings, new verticals, more value-added products).

“Our forecasts have imputed annual customer and account growth of 5%-10% year-on-year (y-o-y).

“We expect profit margins to improve as the group is able to enjoy greater economies of scale (improving revenue and relatively stable costs) as well as a 60% dividend payout policy with low capital expenditure (capex) requirements.

“Free cash flow generation is estimated to range between RM51mil-RM87mil in FY’21-FY’23.”

Maybank IB added that greater marketing efforts amid an improved economic situation would drive accounts growth, while the launch of new digital solutions and the penetration of new sectors would spur faster adoption and demand for CTOS Digital’s services.

CTOS Digital also intends to expand into new sectors, specifically automotive, real estate and insurance. Bank Negara is on the verge of awarding five digital bank (DB) licenses in Malaysia, which is expected to drive stronger digital adoption relating to credit analytics.This would, in turn, spur demand for CTOS’ existing database solutions and services, as well as potential new capabilities that it may develop based on specific or customised DB requirements.

Among the downside factors, it said are the slower-than-expected economic growth, particularly as a result of an extended Covid-19 pandemic that leads to more severe lockdowns, as this would negatively impact demand, particularly from SMEs.

“The entry of new players into the credit reporting space could also eventually erode the group’s market share,” it said.

The company has an extensive database of about 15 million consumer profiles and eight million company and business profiles.

CTOS Digital is said to have one of the largest trade reference databases in Malaysia.

CTOS is a heavily Institutionalised- freefloat is getting less by the day as they keep on accumulating.

CTOS Digital attracted 23 big time international & domestic institutional investors such as Employees Provident Fund Board, Permodalan Nasional Bhd, Aberdeen Standard Investment, AIA, Eastspring Investments, FIL Investment Management and JP Morgan Asset Management.

They are of the view that this is a SUPER growth stock.

INTERESTING FACTS on SILTERRA -DNEX 's 60% Subsidiary.
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SilTerra is the only wafer fab-

1. In the world that has BCP-CMOS-DMOS Grade 0 (Meaning chip is able to withstand temperatures up to -150C).

2. It is also the only company in the world to begin mass production of this chip.

3. It is also the only company in the world to IP this IC chip.

4. It is also the only company in the world that has both Foxconn as its shareholder + Beijing CGP as a major shareholder of its subsidiary.

5. It is also the only company in the world that is able to secure long term supply contract with Chipone.

6. It is also the only company closest proximity to Foxconn's EV plans in Thailand that has local presence + automotive grade 0 IC chips.

Note that most major fabs in Asia had capacity already maxed out for Smartphone and other devices, whilst Silterra with RM200m equipment upgrade is able to increase its capacity by 10-15% without incurring large capex cost (Also the only one in Asia, the rest need 2 years for ramp up)

DNEX is the stock to watch- a potential multibagger due its excellent growth prospects in wafer fabrication.
Its collaboration with Foxconn and BGP of China is a massive catalyst for its 60% stake in Silterra.

INTERESTING FACTS on SILTERRA
----------------------------------

SilTerra is the only wafer fab-

1. In the world that has BCP-CMOS-DMOS Grade 0 (Meaning chip is able to withstand temperatures up to -150C).

2. It is also the only company in the world to begin mass production of this chip.

3. It is also the only company in the world to IP this IC chip.

4. It is also the only company in the world that has both Foxconn as its shareholder + Beijing CGP as a major shareholder of its subsidiary.

5. It is also the only company in the world that is able to secure long term supply contract with Chipone.

6. It is also the only company closest proximity to Foxconn's EV plans in Thailand that has local presence + automotive grade 0 IC chips.

Note that most major fabs in Asia had capacity already maxed out for Smartphone and other devices, whilst Silterra with RM200m equipment upgrade is able to increase its capacity by 10-15% without incurring large capex cost (Also the only one in Asia, the rest need 2 years for ramp up)- Thanks GLAM for the info.

https://www.chinapress.com.my/20210915/%e6%89%8b%e5%a5%97%e8%82%a1%e8%b7%8c%e6%96%b0%e4%bd%8e-%e4%bb%8e%e9%ab%98%e7%82%b9%e6%9a%b4%e8%b7%8c%e9%80%be70/

TOP Glove Ban Lifted - By CBP

Top Glove has provided additional information to CBP, which CBP believes establishes by satisfactory evidence that the subject disposable gloves are no longer mined, produced, or manufactured in any part with forced labor. 19 CFR 12.42(g).


https://public-inspection.federalregister.gov/2021-19535.pdf