4Q22 results ahead of expectation

Maintain BUY and MYR1.90 TP
FY22 core net profit of MYR335m was 10% above our estimate, fuelled
mainly by the strength of the oil price realized (+34% QoQ) at its North
Sabah ops in 4Q22. Our estimates are unchanged, on stronger operating/
financial outlook in FY23, benefiting from the full-year impact of its
Repsol ops. Our TP is unchanged, pegged to a USD11/boe of EV/2P
reserves valuation; undemanding relative to peers’ USD18/boe.

4Q22: A spectacular performance
Core net profit of MYR210m (+497% QoQ; 6-fold increase) in 4Q22 took
FY22 core earnings to MYR335m (+223% YoY), 110% of our FY estimate.
The better-than-expected QoQ performance was driven by relatively
higher: (i) oil, condensate & gas sold at the group level (2.2x to 2.2m
boe) and ASP of crude oil realized, especially at its North Sabah ops:
+34% to USD120/bbl, followed by Anasuria ops (+5% to USD128/bbl). For
FY22, it sold a higher 4.6m boe of oil equivalent (+22% YoY), comprising
3.5m bbls of oil and 1.1m boe of gas.

Expect a stronger FY23
We look forward to a stronger FY23 (+78% YoY core net profit). The YoY
strength will largely be underpinned mainly by the full-year impact of its
Repsol ops (vs. 6M in FY22). Operationally, it targets to sell 7.2m-7.5m
boe of oil, condensate and gas in FY23 (+57%-63% YoY) in FY23. Based on
its 1HFY23 planned off-take schedule, it aims to sell up to 1.6m/ 2.6m
boe of oil, condensate & gas in 1QFY23/ 2QFY23, which would account
for 22%/ 36% of its FY23’s sales. We see upside to our earnings estimates,
should it accelerate its development plans. Gearing up to fast-track
growth is a possibility.

More positives in the pipeline
Hibiscus remains the best play for a cyclical, strong energy price market.
It is fundamentally sound, financially resilient and offers compelling
growth with undemanding valuations. Securing Field Development
Planning (FDP) approval on Marigold would: (i) turn its 43.6m bbls of 2C
resources to 2P reserves, (ii) lift its Group’s 2P reserves by 60% to
115.9m bbls and (iii) make it a more attractive M&A proposition. An
extension on Repsol’s PSC (beyond 2032) would also be positive in
improving Repsol’s NPV and potentially adding a further 30m bbls of 2P
reserves to Hibiscus.

Source : MIB 25/8/2022

U.S. says about 20 models will get EV credits through end of 2022
https://www.theedgemarkets.com/article/us-says-about-20-models-will-get-ev-credits-through-end-2022

Seven Malaysian companies make it to Forbes Asia's Best Under A Billion 2022 list
https://www.theedgemarkets.com/article/seven-malaysian-companies-make-it-forbes-asias-best-under-billion-2022-list

Volcano bought 11 laser cutting machine in year 2021. New Thailand factory will be twice the size of the present factory.
Source : Bursa Announcement.

Front-end semiconductor, upstream energy spaces bodes well for DNeX, says HLIB Research
https://www.nst.com.my/business/2022/08/818888/front-end-semiconductor-upstream-energy-spaces-bodes-well-dnex-says-hlib

Global investment in RE hit US$226 billion in 1H2022, says BNEF
https://www.theedgemarkets.com/article/global-investment-re-hit-us226-billion-1h2022-says-bnef

KYM looking to electric vehicles, renewable energy to power business transformation - The Edge Weekly dd 25/7/2022

Tesla profit tops target; Musk sees no demand problem
https://www.reuters.com/business/autos-transportation/tesla-misses-quarterly-revenue-estimates-production-challenges-2022-07-20/

Technology stocks: Poised for a rebound?
https://www.thestar.com.my/business/business-news/2022/07/16/technology-stocks-poised-for-a-rebound

TSMC's 2Q profit up 76%, beats market estimates
https://www.theedgemarkets.com/article/tsmcs-2q-profit-76-beats-market-estimates

Taiwan economy minister: Order books for chip firms still very full
https://www.thestar.com.my/tech/tech-news/2022/07/06/taiwan-economy-minister-order-books-for-chip-firms-still-very-full

Global semicon sales up 18.0% y-o-y in May to US$51.8 billion, says SIA
https://www.theedgemarkets.com/article/global-semicon-sales-180-yoy-may-us518-billion-says-sia

Global semicon sales up 18.0% y-o-y in May to US$51.8 billion, says SIA
https://www.theedgemarkets.com/article/global-semicon-sales-180-yoy-may-us518-billion-says-sia

Tech-sector-tops-net-cash-companies
https://www.theedgemarkets.com/article/tech-sector-tops-net-cash-compa...

Taiwan's Foxconn raises full-year outlook on strong tech demand
https://www.theedgemarkets.com/article/taiwans-foxconn-raises-fullyear...

Tech-sector-tops-net-cash-companies
https://www.theedgemarkets.com/article/tech-sector-tops-net-cash-compa...

Taiwan's Foxconn raises full-year outlook on strong tech demand
https://www.theedgemarkets.com/article/taiwans-foxconn-raises-fullyear...

tech-sector-tops-net-cash-companies
https://www.theedgemarkets.com/article/tech-sector-tops-net-cash-companies

Taiwan's Foxconn raises full-year outlook on strong tech demand
https://www.theedgemarkets.com/article/taiwans-foxconn-raises-fullyear-outlook-strong-tech-demand

Top 5 customers are listed in NYSE, NASDEQ, Stock Exchange of Thailand, Taiwan Stock Exchange & SIX Swiss Exchange. Bulk of IPO funds RM37.8m or 65 % are for the expansion of facilities ( 5x from 22,800 sq ft to 130,000 sq ft) with strong growth potential ahead.

Poh Huat 1Q net profit soars 59.43% on better profit margins

https://www.theedgemarkets.com/article/poh-huat-1q-net-profit-soars-5943-better-profit-margins

DNeX hits all-time high of RM1.27, takes top spot among most actively traded stocks
https://www.theedgemarkets.com/article/dnex-hits-alltime-high-rm123-top-active-stock

Initiate coverage with TP 1.60 by CIMB

Dnex set to break historical high of 1.05 & move into uncharted territory

https://www.theedgemarkets.com/article/rhone-ma-proposes-private-placement-fund-milk-processing-plant-project

Dnex in June 2021 increased Ping stake from 30% to 90 % and Ping in Sept 2021 increased stake in Avalon from 50% to 100%. Ping having 50% interest in Anasuria Cluster with a production of 7900 bopd ( Ping 50% = 3,950 bopd ).

"Anasuria assets are valuable cash cows. With low operating expense per barrel (opex/bbl) of less than USD20, we estimate the unit’s cash-breakeven crude oil price to be at about USD25 per barrel – based on our calculations. In the event of an oil price crash, we are comforted by the fact that these low cash opex levels to provide shelter from going into deep operating loss. With that, we deem the Anasuria assets to be a valuable cash cow. Meanwhile, we estimate the unit’s breakeven price to be at about USD45 per barrel on the net level" - HLInvest 19/1/2022

http://www.pingpetroleum.com/assets_anasuria.php

Tech stocks pare gains, are they attractive now?
https://www.theedgemarkets.com/article/tech-stocks-pare-gains-are-they-attractive-now

SilTerra offers new manufacturing tech with Finnish firm's help
https://www.nst.com.my/business/2022/01/764623/silterra-offers-new-manufacturing-tech-finnish-firms-help

https://www.theedgemarkets.com/article/konsortium-transnational-secures-rm2645m-building-contract-perak

Q3 Sep 2021 eps up QoQ 62 % & YoY 72% to 1.57 cts.

Aemulus order book seen as healthy. TP 1.50 by CIMB.
https://www.klsescreener.com/v2/news/view/906965

EV cars set to smash records with seven million cars in 2021
https://www.theedgemarkets.com/article/ev-sales-set-smash-records-seven-million-cars-2021-says-rystad

https://www.theedgemarkets.com/article/budget-2022-tune-protect-lauds-move-increase-perlindungan-tenang-voucher-rm75

https://www.thesundaily.my/home/budget-2022-gov-t-to-continue-digital-connectivity-efforts-through-jendela-initiative-MK8509871

https://www.theedgemarkets.com/article/southern-cable-targets-ride-5g-network-expansion

https://www.thesundaily.my/home/budget-2022-gov-t-to-continue-digital-connectivity-efforts-through-jendela-initiative-MK8509871

Radiant rides on strong digitisation wave
https://www.klsescreener.com/v2/news/view/895581

https://www.theedgemarkets.com/article/redtone-digital-appointed-universal-service-provider-under-jendela-project

https://www.theedgemarkets.com/article/cover-story-record-container-rates-keep-good-times-rolling-logistics-players

https://www.theedgemarkets.com/article/cpo-futures-hit-alltime-high-rm5071-tonne

Interest may pick up after Farm Fresh listing
https://www.theedgemarkets.com/article/khazanahbacked-farm-fresh-seeks-main-market-listing

https://www.theedgemarkets.com/article/theyll-have-pay-malaysias-chip-crunch-triggers-new-era-supply-deals

Cash rich of about RM250 million or RM1.815 per share. Eps jumped from 4.72 cts in Q4 March 2021 to 17.15 cts in Q1 June 2021. Forward annualised earnings of 68.6 cts if next 3 Quarters managed to maintain. Thus PE 10 will be RM6.86 not taking into account the cash holdings.

https://www.nst.com.my/business/2021/10/734340/redtone-key-beneficiary-multi-billion-ringgit-jendela-rollout

Managing Director, Financial Controller & Factory Manager are all ladies. Your company is in safe hands.

PROSPECTS - Q4 JUNE 2021 REPORT : PERFORMANCE LIKELY TO MAINTAIN IN THE COMING QUARTER

Resurgence of new Covid-19 Delta variants outbreaks hamper the recovery of world economic.
Mass vaccinations will be the only solutions to contain the Covid-19 and bring back normality.
On the other hand, geopolitical tensions and trade wars among the blocs will continue and create
uncertainties to the world market.

Harbour-Link’s business activities are mainly domestic based. The important concerns that
presently affect our group business activities are the worsen of covid-19 outbreaks and the
increase of fuel cost. We are maneuvering and mitigating our cost risk to the lowest level.
Our shipping and marine division had achieved good results for the financial year ended 30th
June 2021. Based on current strong domestic demands and favorable freight rates, we are likely
to maintain favorable results in the coming quarter.

Our integrated logistic division performance has been affected by the continuous Covid-19
outbreaks that disrupted our operation activities and our clients’ factories productions. We are
likely to maintain our performance in the coming quarter.

Our engineering division is less active at present. We expect recoveries in oil and gas industries,
we expect to secure new projects in the coming months.

Hence, for our financial year 2022, we expect to be challenging but we shall exercise caution
and keep abreast on the current economic situation while monitoring cost control and operation
efficiency. At the same time, we are looking for other business opportunities that will bring
positive stream of income to our Group.

Habour having a nett cash of RM106 million

A hidden diamond amid chip craze - The Star
https://www.klsescreener.com/v2/news/view/885149

" We are seeing an increase in demand for semiconductor chips from our customers across China, Taiwan, Europe and the US. We are now racing to fulfil our demand backlog, which has been stretched to the second quarter of 2022 " - Tan Sri Syed Zainal Abidin, Dnex Group MD & Silterra Executive Chairman (The Edge Msia Sep 20, 2021)

TP 1.25 by Rakuten on 15/9/2021

Initiation report by Maybank Investment Bank on 14/9/2021 with TP RM1.35

https://www.theedgemarkets.com/article/silterra-malaysia-managers-arrested-anticorruption-probe-says-dnex