UMW sold 39,034 vehicles in November as UMWT and Perodua hit record sales
https://www.theedgemarkets.com/article/umw-sold-39034-vehicles-november-umwt-and-perodua-hit-record-sales

HLIB starts coverage of OSK Holdings, target price at RM1.42
https://www.theedgemarkets.com/article/hlib-starts-coverage-osk-holdings-target-price-rm142

Sunview clinches RM120 mil EPCC contract for solar energy facility in Bestari Jaya
https://www.theedgemarkets.com/article/sunview-clinches-rm120-mil-epcc-contract-solar-energy-facility-bestari-jaya

China eases Covid restrictions on travel and production
https://www.cnbc.com/2022/12/07/china-eases-covid-restrictions-on-travel-and-production.html

China opening up good for sports activities.

Farm Fresh, over 100 institutions to teach kids on benefits of drinking milk
https://www.nst.com.my/business/2022/12/858259/farm-fresh-over-100-institutions-teach-kids-benefits-drinking-milk

Sunview

Beneficiary of growing RE adoption

MYR0.66 FV based on 15x FY24F (Mar) P/E. An experienced solar EPCC main- and sub-contractor, Sunview is poised to ride on Malaysia’s growing adoption of renewable energy (RE) and the Government’s commitment to achieve a higher RE mix. Its strong orderbook (6.5x cover of FY22 revenue) provides earnings visibility and continues to drive earnings growth. Over the next two years, Sunview is also striving to double its recurring income base from 18 solar assets. Currently valued at 11x FY24F P/E, this counter is an attractive RE play, in our view.

A solar EPCC contractor and solar asset owner. Sunview is mainly an EPCC contractor that derives the bulk of its revenue by providing EPCC services on: i) Utility-scale large-scale solar (LSS) projects, and ii) solar photovoltaic (PV) facilities for commercial and industrial (C&I) clients. It also owns solar PV facilities on client rooftops, and operates them for a fixed concession period under power purchase agreements (PPA). Currently, it owns 18 solar PV facilities with a collective installed capacity of 7.74MWp, which currently generates <2% of revenues. Sunview plans to double its installed capacity to c.15MWp within two years, and looks to continue building or acquiring more solar assets, using a mix of equity and debt funding.

Beneficiary of Malaysia’s RE commitment. As the Government is targeting for 31% of Malaysia’s installed capacity to be made up of RE by 2025, these efforts will likely translate to more of such projects that Sunview can capitalise on. With a reputable track record and its status as a listed company, it is wellpositioned to win more LSS contracts, in our view. The group should also benefit from the growing demand for solar PV facilities from C&I clients, fuelled by: i) Growing ESG awareness and a desire for a higher RE mix to be ESG-compliant; and ii) potential cost savings from using solar energy, given the possible hike in electricity tariff rates in 2023. Sunview also aims to venture into the EPCC of biogas facilities in the near future.

Strong demand for solar power helps to replenish orderbook. As of endSeptember, it had an unbilled orderbook of MYR644m, providing a 6.5x cover of FY22F revenue. We forecast a 3-year earnings CAGR of 40%, driven by its current orderbook and future project replenishments. While margins have softened YoY in 1HFY23 on the back of larger LSS contributions, we think these could gradually inch up as solar panel prices start to ease, and as Sunview procures certain discounted P-type solar cells in the market.

Valuation. We ascribe a P/E of 15x on FY24F (Mar) EPS to arrive at our fair value of MYR0.66. The 15x forward P/E is the same as what we ascribed to Samaiden (SAMAIDEN MK, NEUTRAL, TP: MYR0.76), and is at a premium to the Malaysian utility peer 2023 P/E average of c.12x – which is justified, given its relatively brighter growth prospects. Key risks include the inability to secure more projects, and a rise in solar panel prices, which could erode margins and delay projects

RHB Research 5 Dec 2022

Within the F&B segment, Focus Point has 11 Komugi retail stores selling Japanese baked goods and pastries in Malaysia (along with 20 retail stores by franchises in the Philippines and four in Brunei), and a wholesale arm supplying in-house pastry offerings to its corporate customers locally including FamlyMart, Starbucks, Don Don Donki, Aeon Co (M) Bhd and Sushi King. Negotiations to supply to an airline company are underway, Liaw say, adding that the company is looking for big corporate clients to supply pastries to.

"We are committed to grow our wholesale business," Liaw says, explaining that Komugi's wholesale business is bigger than retail in terms of percentage ratio. The food products are prepared at the group's two central kitchens in Kota Damansara.

Plans to tap the fast-moving consumer goods market with the launch of chilled delicacies - starting with frozen macarons to be supplied to supermarkets, hypermarkets and petrol stations - are in progress.

With the acceleration in the group's F&B segment, he expects the division's contribution to group revenue to increase to at least 50% in the next two to three years, from 30% currently.

The Edge Malaysia December 5, 2022

Tong's Portfolio - CCK

We also acquired shares in relatively attractively value consumer stock, CCK Consolidated Holdings Bhd. The company operates a fully integrated poultry business - from feed mill to breeder farms, hatchery, broiler and layer farms, and abattoir - primarily in the state of Sarawak. The downstream distribution network includes retail stores, supermarkets as well as retail outlets across Sarawak, Sabah and Indonesia (Jakarta and Pontianak). Fresh dressed chicken and chicken parts make up of about 50% of its retail stores' products, where about 70% of its customers are F&B operators.

CCK's revenue grew 21%-26% y-o-y in 1QFY2022/2QFY2022, and 36% in the latest quarter, 3QFY2022, bolstered by the new store openings, contributions from new facilities related to frozen poultry products in Pontianak, as well as recovery in its school food services units. The company's latest venture, the diversification into prawn agriculture and processing - largely for exports, including Australia, Hong Kong, Japan, Dubai, Vietnam and Indonesia - also contributed to top-line growth. Its prawn factories are HACCP-certified and process both cook -and-feel and IQF prawns. Net profit margin recovered to between 5.3% and 5.6% in the last two quarters, as the hotel/restaurant/cafe' businesses rebounded with the easing of lockdown measures. Its trailing PER is only 10 times while dividend yield is around 1.8%.

Source ; The Edge Malaysia December 5, 2022

Tong's Portfolio - Li Ning Co

We also foresee that domestic brands will continue to gradually gain market share from foreign competitors over the coming years. As such, we decided to add shares for Li Ning, the company founded by the famed Chinese gymnast and Olympic gold medalist, to the Global Portfolio.

The sportwear (primarily attire and shoes) and equipment (racquets, basketballs and accessories such as caps, socks and bags) company operates primarily in China, where the market is expected to grow at more than 10% annually. Currently, Li Ning has a roughly 8.2% share of the domestic sportswear market. While smaller than Nike's (19.1) and Adidas' (14.6%), Li Ning been gaining market share and we expect this trend to persist.

Chinese consumers, especially the younger generations, have shown an increasing penchant for home-grown brands of quality that they can identify with, that are more in tune with their needs, tastes and style preferences, and often retail at more attractive prices. These domestic companies have a much better understanding of the nuanced localised differences across the vast country, and are more sensitive to changing trends and traditional culture. They are, therefore, more savvy in terms of their product designs and marketing campaigns.

Li Ning's revenue grew at a CAGR of 26% between 2017 and 2021, generating consistently positive free cash flow (FCF). FCF increased from RMB844 million to RMB4,989 million over this period. The company is sitting on net cash of RMB8,822 million. Inventory days improved from 80 days in 2017 to 55 days in 1H2022.


https://www.youtube.com/watch?v=-azITSQFzus

https://www.youtube.com/watch?v=oxfgPk-81kQ

https://www.youtube.com/watch?v=WvL6XGfQ5ak

The Edge Malaysia 28 November 2022

PCCS' Q2 net profit surges 242pct, revenue up 1.24pct
https://www.nst.com.my/business/2022/11/853718/pccs-q2-net-profit-surges-242pct-revenue-124pct

Perodua's year-to-date sales breach 250,000 units in November
https://www.theedgemarkets.com/article/peroduas-yeartodate-sales-breach-250000-units-november

Technical tracker - HLIB Retail Research –12 December 2022

FOCUSP: Get ready for a prosperity year ahead

Optical and F&B segments to grow further. Accounting for 83% of the group’s 9M22 revenue, the optical segment is expected to grow in line with new store openings and new corporate clients, evidenced by the burgeoning corporate sales after signed up more corporate clients in early 2022. As the month of Dec marks most of its corporate clients’ FYE, Dec sales from the corporate client segment is expected to be strong as employees rush to utilize their benefits. Separately, FOCUSP has launched 15 optical stores YTD and is targeting 12-15 new stores in FY23. The expansion in the optical business will enable the group to bargain for higher rebates from its key suppliers which are mainly the established foreign brands.

For F&B segment, FOCUSP is in an advance stage of discussion with its airline corporate client, which would bump up the CK2 utilization rate to 80% (from 50%) should the deal materialize. Meanwhile, sales from other corporate clients remain stable.

Brace for a strong 4Q22 earnings. Though management shared that optical sales was relatively soft in Nov due to the lower footfall to malls amid the World Cup and GE15, management believes that the momentum will pick up strongly in Dec-Jan on the back of year-end sales and CNY. In fact, 4Q tends to be FOCUSP’s seasonally stronger quarter due to the recognition of rebates of optical sales. With FOCUSP having more store counts and corporate clients than before, we opine that 4Q22 will deliver a stellar end to FY22.

Main board listing. After meeting the main market listing requirements, FOCUSP has secured SC’s approval to grant its listing to Main market in Nov (proposed in Aug). The move will be another strong catalyst for share price rerating as it allows FOCUSP to gain access to a wider investor base.

Pending breakout. At RM0.82, FOCUSP is trading at an undemanding 7.5x FY23 P/E (48% discount against its 5-year average of 14.7x), which has yet to reflect the positives, in our view. Hence, we reiterate accumulate stance in FOCUSP to ride on the catalysts abovementioned. Technically, FOCUSP is pending for a long-term resistance breakout of RM0.83. A successful breakout above the said hurdle will signal a new up-leg toward RM0.88-0.96-1.05. Cut lost at RM0.70.

Collection range: RM0.77-0.80-0.82

Upside targets: RM0.88-0.96-1.05

Cut: RM0.70
HLeBroking 2 Dec 2022

CGS-CIMB starts coverage of Infomina with 'add' call, target price at RM1.15
https://www.theedgemarkets.com/article/cgscimb-starts-coverage-infomina-add-call-target-price-rm115

Insert Insert
Genetec Technology Bhd
2QFY23: Record-breaking quarter
■ 1HFY3/23 net profit beat our expectations at 58% of FY23F core NP due to
stronger-than-expected net margin in 2QFY23, but in line with consensus.
■ We expect Genetec to record stronger yoy results in 2HFY23F, backed by its
robust order book in EV & ES and favourable forex movements.
■ We raise FY23-25F EPS by 3-7%. Reiterate Add with a higher RM4.60 TP.
2QFY3/23 net profit rose 35% qoq; beat expectations
2QFY3/23 revenue declined 3.5% qoq due to a delay in automation line delivery for its hard
disk drive (HDD) segment from Sep 22 to Oct 22 amounting to about RM5m. Despite the
lower sales, EBITDA margin expanded by 13.2% pts qoq to 42.1% in 2QFY23 due to 1) a
better sales mix coming from higher engineering change request (ECR) service related to
electric vehicle (EV) & energy storage (ES) segment, which offers higher margins than
production line segment, and 2) favourable forex movement. Overall, 2QFY3/23 net profit
surged 35% qoq to RM25.1m, despite a higher effective tax rate of 8.2% (+4.1% pts qoq).
Note that this was the highest quarterly net profit in the company’s history since its listing.
1HFY23: driven by higher HDD and EV & ES contribution
On a cumulative basis, 1HFY3/23 revenue and net profit rose 44.5% and 78%,
respectively. The group attributed the stronger performance to: i) higher contribution from
HDD (+5.6x yoy) and EV & ES (+6% yoy) segments, ii) a better sales mix and iii) favourable
forex movements from the depreciation in Ringgit against US$. 1HFY23 EBITDA margin
rose 6.8% pts yoy to 35.4%. Overall, 1HFY23 net profit jumped 78% yoy to RM43.5m.
Strong growth prospects backed by RM256m order book
Genetec’s order book stood at RM256.4m as at end-Sep 2022, out of which 98% are
related to the EV & ES segment. We gathered from the management that Genetec added
c.RM79m worth of new orders in the quarter mainly in the EV & ES segment, including a
second formation line from its US EV customer. In addition, the group is also tendering for
additional formation, regenerative braking system and electronic control unit (ECU) lines
for FY3/24F. Genetec’s tender book stood at c.RM237m as of end-Sep 22. Moreover, we
also learnt that Genetec is working on developing its in-house battery energy storage
system (BESS) as part of its new growth strategy. The group plans to complete the BESS
prototype by end-2022 and begin pilot run deployment in CY23F.
Reiterate Add; TP raised to RM4.60
We raise our FY23-25F EPS by 3-7% to account for: i) higher sales from HDD and EV &
ES segments, ii) a more profitable sales mix and iii) favourable forex. Accordingly, our TP
rises from RM4.30 to RM4.60, based on a lower 31x CY24F P/E, in line with the Malaysian
automated test equipment (ATE) sector’s 5-year mean P/E, (vs. 35x previously; 0.5 s.d.
above Malaysian ATE sector mean), in view of the weak sentiment in the global technology
sector. We also roll over our valuation to end-2023F - CgsCimb 29 Nov 2022

CCK Consolidated Holdings
3Q22: Robust results from retail and poultry
■ 9M22 core net profit of RM36m (+102.6% yoy) was above expectations, due
to better-than-expected results from its retail and poultry segments in 3Q22.
■ We expect CCK to record slightly weaker qoq results in 4Q22F, due to higher
input costs (weak ringgit) and seasonally slower sales.
■ Reiterate Add, with a higher TP of RM1.03 (12x CY24F P/E).
9M22 core net profit rose 102.6% yoy, beating expectations
3Q22 core net profit came in at RM13m (+106.3% yoy), after accounting for one-off gains
of RM13.4m (gain on disposal of investment properties of RM6m and estimated RM7.5m
in subsidies from the government in relation to the price ceilings on chicken and eggs).
This brought 9M22 core net profit to RM36m (102.6% yoy); above expectations at 83.8%
of our and 86.5% of Bloomberg consensus full-year estimates. The earnings beat in 3Q22
was due to stronger-than-expected contribution from its retail and poultry divisions. We had
expected weaker sales volume from both segments due to surge in feed cost prices.
3QFY22: Stronger qoq performance across all divisions
On a qoq basis, 3Q22 revenue and core net profit rose 12.2% and 10.8% respectively.
Retail segment’s 3Q22 EBIT rose 87.4% qoq to RM27m, owing to: i) better overall cost
control and ii) margin enhancements from selling price hikes. Poultry segment’s 3Q22 EBIT
rose to RM7.3m, lifted by the government subsidy of RM7.5m. Excluding this, the segment
would have posted a 3Q22 EBIT of -RM0.2m, still narrower than the -RM0.8m in 2Q22,
thanks to higher selling prices. Prawn segment’s 3Q22 EBIT expanded to RM2.1m (>100%
qoq) owing to the maiden contribution from PT Bonzana, an Indonesia prawn processing
plant whose acquisition it completed in 3Q22. Food service segment’s 3Q22 EBIT rose
58.7% qoq, thanks to higher demand from schools (increase in student activities).
Expecting a slightly weaker 4Q22F qoq
We expect CCK to record a slightly weaker core net profit qoq in 4Q22F, premised on: i)
weaker sales owing to lower consumer affordability (reduced spending power amid
inflationary pressures), ii) higher input costs from a weaker ringgit, and iii) seasonally
weaker performance from its food services unit (lower demand from school due to festive
and year-end school holidays) and prawn segment (weaker demand due to seasonality
factors). Nevertheless, we project CCK to post net profit growth of 6.6%/5.7% in
FY23F/24F, to be mainly driven by its retail (more store openings), poultry (lower feed cost
prices) and prawn (full contribution from PT Bozana) segments.
Maintain Add, with higher TP of RM1.03 (12x CY24F P/E)
In tandem with the 3Q22 results beat, we raise our FY22-24F EPS to account for higher
contribution from its retail and poultry segments. Accordingly, our TP rises to RM1.03 (12x
CY24F P/E, its current 5-year mean), and we keep our Add call. Besides its attractive
valuation (7.7x CY23F P/E, a 35.8% discount to its 5-year mean), we like CCK for: i) the
defensive nature of its retail business, ii) its captive market in East Malaysia, and iii) the
inelastic demand for poultry goods in Malaysia.

Infomina Berhad
Tier 1 VAD - Broadcom mainframe software
■ We initiate coverage on Infomina, an IT solutions provider specialising in
mainframe technology, with an Add call and TP of RM1.15 (20x CY24F P/E).
■ We project a 3-year EPS CAGR of 29.6% (FY22-25F), driven by a robust
order book (cover ratio: 2.2x), new clients and geographical expansion.
■ As the sole Tier 1 VAD for Broadcom Mainframe Software in 8 countries
currently, Infomina should benefit from rising demand for mainframe services.
IT solutions provider, specialises in mainframe software technology
Infomina is a Malaysia-listed information technology (IT) solutions provider, specialising in
mainframe-related technology. It has two key business segments: i) Turnkey - design and
delivery of technology infrastructure solutions (50.3% of FY5/22 revenue), and ii) Renewal
- technology infrastructure operations, maintenance and support services (49.7%).
Infomina has a strong regional clientele base that includes government bodies, financial
institutions, and other industries (automotive, telecommunications, etc.).
Sole Premier Tier I VAD for CA (Broadcom) in eight countries
In our view, Infomina’s key strength is its status as sole appointed Premier Tier 1 Value-
Added Distributor (VAD) of Broadcom Mainframe Software in eight countries since 2019
(Computer Associates Partner Regions). We think it can benefit from: i) growing adoption
of Broadcom mainframe technology, and ii) repeat business from users of Broadcom
mainframe software whose contracts are up for renewal (signed with Broadcom prior to
VAD appointment). Based on Gartner’s research (2020), Broadcom had the largest global
market share (37%) in mainframe software market - potential value of >US$7bn.
Robust orderbook (2.2x FY22 revenue) and rising tender book
Across FY23-27F, Infomina has an orderbook of RM443.6m (2.2x of FY22 revenue); 34.7%
from turnkey and 65.3% from tenewal segments. It has tendered for projects with total
value of RM376m (55%: turnkey segment). We expect robust orderbook replenishment
from: i) client acquisitions (new users of mainframe and onboarding Broadcom clients), ii)
upgrading works for mainframe users (capabilities enhancement), and iii) higher demand
for renewal segment (clients tend to sign service level agreement post turnkey projects).
Projecting 3-year net profit CAGR of 29.6% (FY22-25F)
We project Infomina to post a 3-year core net profit CAGR of 29.6% (FY22-25F). This is
driven by i) higher sales from both turnkey and renewal segments, ii) regional expansion
into new markets, and iii) higher economies of scale. We initiate coverage on Infomina with
Add and TP of RM1.15, pegged to our 20x CY24F P/E; in-line with local peers’ average
CY23F P/E in the IT industry (19.9x, Figure 55). Our Add call is backed by: i) robust NP
growth profile, ii) regional presence as Broadcom’s Tier I VAD, and iii) robust balance sheet
(RM73.3m net cash at end-1QFY5/23). Re-rating catalysts: robust EPS growth and rise in
institutional holdings (currently:c.1%). Downside risks: non-renewal of Tier 1 VAD status
with Broadcom, sharp dip in orderbook value and lower-than-expected margins - CgsCimb 1 Dec 2022

TP 1.03 by CgsCimb on 25 Nov 2022

TP 1.15 by CgsCimb on 1 Dec 2022

Mtag has cash and bank balances, fixed deposits and other investment in unit trust amounting to RM128.80 million and zero borrowings as at 30 Sept 2022 - Source : Q1 Sep 22 Report dd 23 Nov 2022

GFM Services 3Q net profit triples to RM8.1m
https://www.theedgemarkets.com/article/gfm-services-3q-net-profit-triples-rm81m

PCCS' Q2 net profit surges 242pct, revenue up 1.24pct
https://www.nst.com.my/business/2022/11/853718/pccs-q2-net-profit-surges-242pct-revenue-124pct

Farm Fresh Dairy Products awarded Brand of the Year
https://www.thesundaily.my/spotlight/farm-fresh-dairy-products-awarded-brand-of-the-year-NC10211639

Affin Bank, Farm Fresh among five added to MSCI Global Small Cap Index, while six removed
https://www.theedgemarkets.com/article/affin-bank-farm-fresh-among-five-added-msci-global-small-cap-index-while-six-removed

Kenanga Research starts coverage on MGRC, target price RM1.07
https://www.theedgemarkets.com/article/kenanga-research-starts-coverage-mgrc-target-price-rm107

PPHB's The Prestige Hotel
i) Winner Of Best Design Hotel 2022
ii) Winner Of Malaysia's Leading Hotel 2022
Iii) TripAdvisor Travelers' Choice 2022

ACE Market-listed Kim Teck Cheong seeks to transfer listing to Main Market
https://www.theedgemarkets.com/article/ace-marketlisted-kim-teck-cheong-seeks-transfer-listing-main-market

PT Resources staged a bullish breakout, says RHB Retail Research
https://www.theedgemarkets.com/article/pt-resources-staged-bullish-breakout-says-rhb-retail-research

Gloves & Plantations already rebounded. Some interest in Steel today. Annjoo breakout of 0.96 & Hiaptek breakout of 0.245 this morning. Ays attempting to breakout 0.40.

BursaKakis

Four Quarters of steady performances. At 0.145 cts now, PE is 4.9

1 month ago

Price jumped 52% from 0.145 a month ago to 0.22 on 26/10/2022

ACE Market-bound Betamek posts RM4.7m net profit on revenue of RM48.6m in 2QFY2023
https://www.theedgemarkets.com/article/ace-marketbound-betamek-posts-rm47m-net-profit-revenue-rm486m-2qfy2023

Sunview bags RM94 mil EPCC contract for LSSPV plant
https://www.theedgemarkets.com/article/sunview-bags-rm94-mil-epcc-contract-lsspv-plant

Sunview Group Bhd - Reputable solar company backed by strong order book
https://klse.i3investor.com/web/blog/detail/MplusOnline/2022-10-17-story-h1650239641-Sunview_Group_Bhd_Reputable_solar_company_backed_by_strong_order_book

Q3 July 2022 Report - Prospects

The Group’s Manufacturing segment continue to deliver positive results stemming from persistent orders and healthy demands for metal fabricated components. Looking ahead, the outlook for this segment is expected to remain upbeat as the Group works on upgrade and expansion of its plant and machineries to fulfil the existing surge in orders besides capturing new markets and industries to diversify and increase our customer base. The strengthening of US Dollar exchange rates has also benefitted the Group’s business and is expected to sustain over the near term. Nevertheless, we anticipate headwinds to our operation and business to linger driven by fluctuation in input cost and overhead, manpower constraints and challenges in the global supply chain affecting availability and lead times.

As for Construction & PD segment, the Group will cautiously seek out new projects and opportunities for expansion. Our associate company, Broadway Lifestyle Sdn Bhd (BLSB) is in the midst of planning for the proposed development in Sepang, Selangor on a parcel of land it acquired back in 2020. Premised on the above and barring further unforeseen circumstances, we remain cautiously optimistic of the Group’s financial performance and prospect for the coming quarters.

Federal International Holdings upbeat in securing more RE projects. FIHB has a 4.9 per cent direct stake in Sunview.
https://www.nst.com.my/business/2022/10/837072/federal-international-holdings-upbeat-securing-more-re-projects

Federal International to benefit from Starbucks’ aggressive India expansion
https://www.theedgemarkets.com/article/federal-international-benefit-starbucks-aggressive-india-expansion

Federal International partners China’s major power generator in RE venture
https://focusmalaysia.my/federal-int-partners-chinas-major-power-generator-in-re-venture/

Mercury sets 60 sen TP for ACE-bound Sunview on strong growth prospects
https://www.theedgemarkets.com/article/mercury-sets-60-sen-tp-acebound-sunview-strong-growth-prospects

SNS Network sees positive outlook on demand for ICT products
https://www.thestar.com.my/business/business-news/2022/09/27/sns-network-sees-positive-outlook-on-demand-for-ict-products

PT Resources debuts with brisk volume; posts higher profit in 1QFY23
https://www.theedgemarkets.com/article/pt-resources-debuts-brisk-volume-posts-higher-profit-1qfy23

PT RESOURCES HOLDINGS BERHAD (IPO Note)
Recommendation : Subscribe
IPO Price : MYR 0.36
Fair Value : MYR 0.54
Key Points:
• PT Resources revenue CAGR was at 44.2% annually, mainly attributable to its processing and trading of frozen seafood products to overseas markets that saw sizeable increase in export sales to Saudi Arabia and China.
• The IPO proceeds of MYR48.6 million will mainly be utilised for its working capital (55.9%), capex for new cold storage warehouses (36.3%), and the remaining for the listing expenses. This will increase the facility capacity to 4,000 tonnes from 700 tonnes.
• Moving forward, the Group expects to grow export sales at a faster pace as compared to local sales and continue to generate more than 50% of revenue from the processing and trading of frozen seafood segments. The purchases of raw materials would also remain the main component of the total cost.
• We believe demand for seafood would remain resilient, as part of essential products and supported by growing consumption in its overseas markets. We have a SUBSCRIBE recommendation on PT Resources with a target price of MYR0.54 and a target multiple of 10.8x (based on the enlarged issued share capital of 535,020,000), which represents a 12-month potential return of 50%. The indicative IPO price of MYR0.36 is based on PE Multiple of 6.8 and existing issued share capital of 400,020,000 shares).

Phillip Research Sdn Bhd

Ramssol secures new revenue stream via deal with GT-Max Motors
https://www.thesundaily.my/home/ramssol-secures-new-revenue-stream-via-deal-with-gt-max-motors-LC9859379

PCCS set to trend north, says RHB Retail Research
https://www.theedgemarkets.com/article/pccs-set-trend-north-says-rhb-retail-research

PCCS adopts 30% dividend payout policy
https://www.thestar.com.my/business/business-news/2022/08/29/pccs-adopts-30-dividend-payout-policy

Focusing on developing high-tech sports wear ( Kindly refer to BursaKakis Telegram for full article }
https://www.thestar.com.my/business/business-news/2022/09/17/focusing-on-developing-high-tech-sports-wear

Very good article on PCCS in The Star Biz on Sat 17092022

Mr Koon, how about Ruberex ? Ruberex purchased Reszon for RM180m or PE multiple of approximately 3.6 times. RM54m will be paid by cash & RM126m paid by issuing Ruberex shares @ 0.7091 per share. After this deal, Ruberex still has cash resources of about 126m. Reszon is providing a profit guarantee of RM50m for each year of financial years 2022 & 2023. Based on enlarged capital of 1,038,367,281 shares & 50m profit guarantee, eps is about 4.8 cts and forward PE 10 will be 48 cts. This is excluding their gloves business. Both Scomnet & UMC are trading above pe of 35 times. Ruberex will be changing it's name to Hextar Healthcare Berhad.

Rubberex gets shareholders nod for RM180mil acquisition
https://www.nst.com.my/business/2022/09/831306/rubberex-gets-shareholders-nod-rm180mil-acquisition

Rubberex acquires Reszon Diagnostics for RM180mil
https://www.nst.com.my/business/2022/05/801178/rubberex-acquires-reszon-diagnostics-rm180mil

Purchased Reszon for RM180m or PE multiple of approximately 3.6 times. RM54m paid by cash & RM126m paid by Ruberex shares @ 0.7091 per share. Annual profit guarantee by Reszon of RM50m for each year of financial years 2022 & 2023. Ruberex changing name to Hextar Healthcare Berhad.

Budget 2023 to focus on automation, digital technology - MOF
https://www.theedgemarkets.com/article/budget-2023-focus-automation-digital-technology-%E2%80%94-mof

Budget 2023 to focus on automation, digital technology - MOF
https://www.theedgemarkets.com/article/budget-2023-focus-automation-digital-technology-%E2%80%94-mof

Eps way ahead of D&O but share price much much lower.

Four Quarters of steady performances. At 0.145 cts now, PE is 4.9

Outlook
Genm Outlook :

GenM has finally returned to black mainly driven by capacity ramp up and increase in footfall from subsided Omicron wave and foreign visitors from border reopening. Looking ahead, the recovery trajectory should continue for RWG from (i) hotel capacity ramp up (room available as at July was 7.6k vs. 6k in June); (ii) theme park capacity ramp up (3 more rides by 4Q22); and (iii) increase in foreign visitations as more countries relax their border restrictions. The current weak local currency should bode well for foreign visitations. Furthermore, the opening of SkyWorlds theme park also allows RWG to attract a large and previously untapped Muslim market which represents c.63% of Malaysia population. GenM will be able to harness the full potential of SkyWorlds in 2H22 as capacity ramps up. The increased footfall to the theme park should have a positive spillover effect to the other venues in RWG

HLIB 26 Aug 2022

OWG: The worst is likely over

A victim of Covid-19. Listed in the Main market since 2014, OWG Berhad (OWG) is an investment holding company that manages and operates F&B and leisure-related brands found in popular resorts and shopping malls. The group's F&B outlets, water amusement parks, and family attractions are strategically located in tourist attractions, such as Genting Highlands, Komtar Tower at Penang and Klang Valley.

As the group business is primarily involved in the tourism industry, the onset of Covid-19 has heavily affected the group's operation. The decline of business volume from its Food service operation as well as the Amusement and recreation operation has whipped 79% of its FY19 revenue of RM123m to RM25m in FY21. In turn, the group chalked into red in FY20 (the first loss-making FY since it was listed), and the loss expanded further to RM42m in FY22. Nonetheless, we see the return of tourism following Malaysia's transition toward endemicity as a turning point for OWG as it will drive more footfall to its F&B outlet and family attractions.

A comeback. As of 21 June, Malaysia has already surpassed its full-year target of 2m incoming tourist arrivals. Genting Highlands, where most of its outlets are located and made up 40% of OWG's bottom line back in 2019, has seen its footfall gaining traction supported by (i) pent-up demand for travel, (ii) the depreciation of ringgit, and (iii) the launches of GentingSkyworld theme park. We flag that the group turnaround 3QFY22 (report until 31 March) had yet to reflect the strong return of foreign tourists as Malaysia only reopened its international border on 1 April 2022. In view of solid recovery momentum (2H seasonally stronger earnings), we expect greater business volume in its F&B outlet and family attractions and thus better earnings going forward.

HLIB 26 July 2022