Sunway Construction to Test RM5.00:

The construction index continues to perform strongly and is on an upward trend.

Among them, Sunway Construction (SUNCON, 5263, main board construction stock) closed at RM4.59 at the closing time, up 26.0 sen or 6.00% on the day.

Sunway Construction's daily chart shows no signs of retreat and continues to hit new highs, showing a steady upward trend.

Its daily relative strength index (RSI) indicator continues to rise and stands at 82.36.

It would move up to the resistance level of RM4.90-5.00.

Not only SUNCON closed at all time high. Its mother share (SUNWAY) also closed at all time high at RM4.10. So is GAMUDA, with all time high closing of RM7.88 after touching a high of RM7.97. All these are due to Data Centres Craze. We have to help one and other by holding them tight-tight. The AI / Data Centre Craze still have legs to run.

Please hold tight-tight until the target price is achieved. Tomorrow (12 July 2024) still have more upside.

Sunway Construction Group Bhd Potent combination of earnings upgrades and P/E re-rating:
■ Reiterate Add, as we raise FY24F-FY26F EPS and lift TP to RM5.46.
■ We think our FY24F new order wins of RM5.2bn, at the top end of RM4bn5bn guidance, is achievable with upsizing of existing data centre projects.
■ Re-rating thus far driven by EPS upgrades, with valuation re-rating to follow.

Focus on data centre and government infra projects:
In our view, the cancellation of Song Hau 2 thermal plant project is a setback but Suncon can now focus its resources on project flows locally particularly for data centre projects and the eventual revival of government infrastructure. Suncon has 5 data centre projects (from 4 clients) contributing 50% of its orderbook of RM7.9bn as at Jun-24. Management said it is also bidding for 4 data centre projects, most of which are in Johor.

Upsizing of existing data centre projects brings upside potential:
Suncon is witnessing upsizing of its existing data centre projects; in Jun 24, its existing RM1.7bn Sedenak data centre contract (Sedenak) was increased to RM3.2bn due to additional scope of work. We do not discount further upsizing of this contract depending on end demand. The remaining data centre projects in its orderbook are K2 (RM197m), early contractor involvement for a US MNC (RM58m) and another US MNC (RM748m). We think the potential upsizing of these may add another RM2bn-3bn of new orders in 2H24F and some may spillover into 1Q25F. 6M24 wins amounted to RM3.3bn (Fig 5) vs. our FY24F new win target of RM5.2bn (including precast) and its revised target of RM4bn5bn (from RM2.5bn-3bn). Hence, this implies incremental new wins of RM1.9bn which we believe is achievable not withstanding potential new wins from government infrastructure projects (Penang LRT and airport expansion and Johor ART) and new data centres.

Reiterate Add; we raise FY24F-FY26F EPS and TP:
We raise our FY24F/FY25F/FY26F EPS by 6%/23%/8% as we adjust the revenue recognition of some key projects, such as Sedenak which is a fast-track project to be completed by 1Q26F. We lift our SOP-derived TP to RM5.46 as we lift our forecasts and assign a higher target P/E of 22x for construction (parity with Gamuda), which we think is justified in spite of its smaller orderbook given superior ROEs and more concentrated data centre exposure. We also highlight in Fig 3 that the re-rating for Suncon over the past 1 year has largely been driven by EPS upgrades, lending weight that a valuation re-rating is justified. We like Suncon for its strong execution track record and first-mover advantage in the data centre space, 3-year EPS CAGR of 23% over FY23-FY26F, and market-leading ROEs of 23-30% for FY24-FY26F.

CGS International (CIMB)
Sunway Construction (SUNCON)
ADD: Higher target price: RM5.46

https://rfs.cgsi.com/api/download?file=36c77474-3d66-42e6-9b4e-15fcc651b4d2&rpt=0E6765B2-104F-4D79-85BA-EA767E11A596

https://www.thestar.com.my/business/business-news/2024/05/09/dufu-tech-confident-worst-is-over

Just found out CGS International (CIMB) has given a target price of RM9.50 for Gamuda:
(1) We believe valuation re-rating is imminent as margin trajectory improves and the faster than expected target of RM25bn new wins by CY24 is achieved.
(2) Potential FBM KLCI constituent at current market capitalization (No. 23).
(3) Reiterate Add with a higher TP of RM9.50.

At this moment, Gamuda is at the 23rd position in terms of market capitalization. Should be included into KLCI end of 2024.

Today HLIB gave a target price of RM7.80 only.

@ thundery, Jonathantyp: You all may sell at 9 a.m. on Tuesday (9.7.2024).

JCY Projects:
JCY, which manufactures four main HDD mechanical components, namely base plates, top cover assembly, actuator pivot flex-circuit assembly and anti-discs, supplies to the largest computer HDD manufacturers in the world, including Seagate Technology LLC and Western Digital Corp. It produces about 25% of the world’s HDD base plates and commands 8% to 28% of the global market, depending on the product.

Stronger quarters seen ahead
JCY International noted that the total HDD storage market showed a 3% quarter-on-quarter (q-o-q) rise in units shipped, and a 22% q-o-q rise in total storage capacity shipped — marking the second consecutive quarter the industry has seen an HDD shipment increase.

Based on this market trend, the group expects to fare even better in the second half of the year. It is projecting its factory capacity utilisation rate to increase, as its customers see improvement in the units shipped.

“Our short- to medium-term strategy remains to strengthen our core in the storage industry while diversifying into other industries,” JCY International said.

https://theedgemalaysia.com/node/712516?utm_source=Newswav&utm_medium=Website

https://www.youtube.com/watch?v=-RPAsJKsmGU
Kenapa kaunter SNS dan Novamsc naik banyak???

https://theedgemalaysia.com/node/708956

SNS Network aims to tap country’s data centre boom through new venture of super servers.

SNS will be supplying Super Servers to Data Centres.

Posted by Zachzach > 1 day ago | Report Abuse

Relax all....It will come soon...By August all will be above RM1... !!! Mark my words ya...
====================================
As long as YoY positive and QoQ positive on 21.08.2024, all still holding JCY can have a breath of relieve.

Technical Analysis for JCY:
Click on "Daily".
https://www.investing.com/equities/jcy-international-bhd-technical
Note that RSI has turned neutral (No longer overbought).

SNS Technical Analysis:
Click on "Daily".
https://ng.investing.com/equities/sns-network-tech-bhd-technical

@chamlo: That ESOS listed already on 04-07-2024. It is just a small number 6,030 × 100 shares.

Ravetidus exited 0.815 yesterday. Will.buy back if price is atound 0.75. Now 0.80. I still have 50% funds. Got to think of risk vs reward now.

@FortuneBlooming: I left Ranhill with RM50 gain and swith back to JCY. People in Ranhill not friendly. 0.795 kena, 0.790 kena, 0.785 belum kena.

It noted that Ranhill Utilities would give YTL Power access to exclusive Johor water operations allowing it to capitalise on prospects from the Johor-Singapore Special Economic Zone and potential demand from Johor’s data centre hubs. Additionally, it said the synergistic expertise in water operations could drive further efficiency of Ranhill Utilities’ Johor water business.
https://themalaysianreserve.com/2024/06/04/ytl-power-acquiring-control-of-ranhill-utilities/

@PureBULL ...
Thank you for your attention.

The Calvintaneng, claims that the water theme play in Sedenak Tech Park, followed by Nusajaya Tech Park, will be monopolised by Syed Mokhtar's AIRB, and not Ranhill.

https://www.channelnewsasia.com/asia/malaysia-johor-data-centres-nvidia-ytl-kulai-sedenak-sez-us-china-trade-war-4310496

Please see the word "Ranhill SAJ" below:

In April, parts of southern Johor reportedly experienced water shortages during the Hari Raya period, prompting the state government to urge the state’s main water supply company "Ranhill SAJ" to deploy water tanks at hotspot areas.

That Calvintaneng always asks people to buy his useless HexCap.

If what he claimed is true, Ranhill will hit limit down already.

But Ranhill rose 14 sen yesterday (3 July 2024), additional 2 sen today (4 July 2024) and will test the all-time high of RM1.75 tomorrow (5 July 2024).

To all Ranhill lovers:

Ranhill SAJ Sdn Bhd is a utility company responsible for water supply services in Johor. Ranhill SAJ is a subsidiary of the Ranhill Utilities Berhad.

https://en.wikipedia.org/wiki/Ranhill_SAJ





Since YTL Power's holding in Ranhill Utilities is at least 53.19%, it is considered that Ranhill on behalf of YtlPower, supply water to the whole of Johor, including the Sedenak Tech Park, Kulai, Johor.

Translation for the newspaper article posted by NatsukoMishima:

(Kuala Lumpur, 4th July 2024) Since the beginning of this year, Johor has attracted a number of multinational companies to set up data center hubs there, which has raised a new question: Is Johor’s water supply sufficient to meet the needs of data centers?

Analysis by JPMorgan shows that Malaysia plans to add enough water treatment plants to cope with the increasing demand for data centers.

Meanwhile, JPMorgan said that Malaysia has ample water resources, which will avoid short-term obstacles for data centers. However, the bank also pointed out that if the water supply cannot be improved or water supply interruption occurs in the future, this will affect the operation of the data centers.

"By then, water supply may become an issue, creating a situation where data centers compete with Johor household users for water."

JPMorgan pointed out that from 2018 to 2022, Johor's average water storage capacity will remain at around 10%, indicating that the existing water source is sufficient.

According to JP Morgan estimates, Johor's annual water treatment volume will increase by approximately 61 billion liters in the next five years, an increase of 33% compared to 2023.

Assuming an increase in data center capacity of approximately 1,500 MW and a water use efficiency (WUE) of 2.0, it is expected that by 2028, the demand for water will increase by 27.7 billion liters per year, accounting for 4% of Johor's current water consumption.

Taking into account overall water use growth of 3% per year, JP Morgan estimates that by 2028, total water use will reach 851 billion liters per year, with annual water filtering volume of approximately 1 megalitre.

Can accommodate more data centers?

“According to our calculations, water supply will not be an obstacle to setting up data centers in Johor in the next five years.”

JP Morgan also said Johor could accommodate more than three times the current number of data centers. If water storage capacity remains stable at 10%, Johor can accommodate up to 5,500 MW of data centers in 2028.

"According to our data, Johor's water storage capacity will expand to 19% by 2028, which is higher than Malaysia's target of 15%, and there is still room to accommodate more data centers."

Overall, JPMorgan believes that Malaysia’s water supply and electricity are sufficient, giving it good conditions for developing data centers in Asia.

@FortuneBlooming: There are reasons why I have shifted from a penny share (JCY) to a higher priced share (Ranhill). I am about to press buy at RM0.82 (700 X 100 shares) but I have no gut. So happen, I come across Ranhill with OTB shows with facts and figures and I bought at RM1.60 (350 X 100 shares).

For JCY, each sen down, I might lost RM700 but for Ranhill, each sen down, I only lost RM350, which is less than RM700).

Anyway, it is always fun to have you around to make the forum lively.

@NatsukoMishima: Calvintaneng claims that the water theme play in Kulai/Sedenak will.be monopolised by Syed Mokhtar's AIRB, and not Ranhill. How true is it?. AIRB is not a listed company.

@Ravi1969: I have the same thought as you.

Now: RM1.79

Target prices:
RHB: RM2.26
Aminvest: RM2.09
TA Research: RM2.05
MIDF: RM1.94
Kenanga: RM1.87

@ FutureBlooming: For SNS, it is a quick gain of RM1,250.

Things are moving. The Data Centre is not empty talk.

MahSing has successfully secured the 500MW power supply from TNB for its 20% Joint Venture with BridgeData Centre of 150 acre Data Centre in Southville City in Selangor.

I have seen gohkimhock No 2 position in I3 Stock Pick Contest 2024. Most gain from KGB-WB and MahSing. MahSing is a strong fundamental stock. I have bought my first batch of MahSing stocks at 1.78/1.79. Still got 4 more batches to buy at appropriate time and price.

The market needs to see proof from the next month ( Aug 2024) quarter results [JCY, Dufu and Notion]. Notion has recovered from the sharp selling due to cash upfront issue, but must also show proof of good results.

@zzz1981: I have gone to SNS but I have sold everything in the morning (2 July 2024).

Brokers demand cash upfront from investors for Notion VTec, YNH, Artroniq and APB

https://theedgemalaysia.com/node/717388

@ Chunah: You are correct.

@chunach: HLIB has long time ago made it compulsory for its clients to open a CTA (Client Trust Account). Clients must put a certain amount of money into the CTA. I am surprised when the forumers start talking of cash upfront. All trades, contra gain/loss are run by the trading computer system. No chaques are issued. The good thing is that the brokerage fees is down from 0.3% to only 0.1%.

@nselvara123: For all HLIB clients, it is compulsory to open an CTA (Client Trust Account) with a certain amount of money to be put into this account to trade. This is called cash-upfront. No cheques will be issued. The computer trading system will take care of buy, sell, contra gain/loss. The brokerage is only 0.1% per trade.

It is considered fortunate for most of us here who did not miss the boat. Today (1 July 24) has a powerful ending. For tomorrow (2 July 24), the sentiment got to be built up all over again at a higher price. It is day by day basis.

A HDD components are platters, a spindle assembly and an actuaror assembly plus a casing to strore those three components. JCY only supply the casing. The most important component is a logic board that controls the operation of the HDD.

An SSD components are a controller which performs a role similar to the CPU in a PC as cache memory, NAND flash for data storage and DRAM which links between the SSD and the external devises.

It is impossible for local players to produce and to assemble the above parts. Our country data centres have to import the HDD and SSD from SEAGATE, WESTERN DIGITAL or TOSHIBA.

But for super servers, the supplier will send them to SNS NETWORK. After that SNS will fixed them in each data centre [with after sales service (maintanance)]. SNS will do well starting from the 2nd quarter FY2024.

Old News:
https://www.thestar.com.my/business/business-news/2024/06/28/sns-network-receives-rm8552mil-purchase-order-for-ai-super-servers

Barring any unforeseen circumstances, SNS Network is optimistic about the business outlook for the industry on the back of growing demand for AI super servers from several technology firms.

https://www.sns.com.my/
Homepage of SNS Network. Kindly please take a look at their super servers.

This is the first green candlestick after consolidation between 72 sen to 96 sen for 12 trading days.

https://theedgemalaysia.com/node/708956
SNS Network aims to tap country’s data centre boom through new venture (Super Servers)

If we minus the net profit from the data centre land sales, we still have 289.03 - 80.83 = 208.20 net profit. It should hit limit up tomorrow.

Can someone kindly please let me know what is the one time gain which resulted in this 1st quarter unbelievable high net profit. Is it due to the sales of lands?

Got to force hng33 to cut lost in JCY to move to Notion. What if Notion continues to fall? For me just keep the profit (minus today lose a bit) back into the bank.

Going up from 65 sen to 93 sen is very exciting. Now down from 93 sen back to 65 sen. Calvintaneng is the culprit.

Hence, our country DC got to import the HDD from Seagate, Western Digital or Toshiba.

A HDD components are platters, a spindle assembly and an actuaror assembly plus a casting to strore those three components. JCY only supply the casting. The most important component is a logic board that controls the operation of the HDD.

Does JCY got so high technology? I do not think so. All our country DC will have to import from WD, SEAGATE or TOSHIBA.

An SSD components are a controller which performs a role similar to the CPU in a PC as cache memory, NAND flash for data storage and DRAM which links between the SSD and the external devises.