Pos Malaysia - Suspends international services.
AMinvest downgrade POS share price target to RM0.58.

We project net losses of RM90mil and RM24mil in FY20-– 21F and a net profit of RM31mil in FY22F (vs. a net loss of RM22mil in FY20F and net profits of RM31mil and RM44mil in FY21-–2F previously), largely to reflect lower revenues due to the company’s suspension on some of its’ operations and slower demand amidst the Covid-19 pandemic. We reduce our FV to RM0.58 (from RM1.21 previously), based on a P/B of 0.3x, a 50% discount to its historical P/B of 0.64x, to reflect the unprecedented challenges Pos Malaysia is facing. We downgrade our recommendation to SELL from HOLD.

https://klse.i3investor.com/servlets/ptres/54873.jsp

YHB, received a notice from Aker Energy of its decision to terminate the
LOI issued on 20 February 2020 for the proposed award of Contracts to charter, operate and
maintain the FPSO for the project at DWT/CTP with immediate effect.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3040753

Thank you Maybank.
RHB, Maybank waive compounding of loan interest during moratorium

https://www.thesundaily.my/business/rhb-maybank-waive-compounding-of-loan-interest-during-moratorium-EN2186024

RHB first local bank to waive compound of interest or profit during six-month moratorium

https://www.theedgemarkets.com/article/rhb-first-local-bank-waive-compound-interest-or-profit-during-sixmonth-moratorium?

Tonight US market will focus back on Coronavirus update.
US cases - 68,489
Death Toll cross 1k
New york cases - 33,013.

https://www.worldometers.info/coronavirus/country/us/

Genting M need close until 14 Apr. Operation extend till 14 Apr...

布城25日讯）首相丹斯里慕尤丁宣布三大措施缓和人民的财务问题，即所有银行从4月1日开始提供客户6个月的延迟摊还贷款期，让信用卡持有者将欠款转为有期限贷款，以及让企业重组贷款。

他今日发表文告指出，以上三大措施所涉及款项至少达到1000亿令吉。

1 pm news later..

https://www.orientaldaily.com.my/news/nation/2020/03/25/332671?fbclid=IwAR3QPlhr3rCzO6phTUC36zaW7C_LRRFGZKlbFRvYEawr5-fiBZZl9dOpisY

东方不败 is a new account created today.. this is first article.

after foreign fund selling a lot of bank shares till so low price. it is time for citi to make report so that they can accumulate bank shares at cheap price again.?

if oil price stabilised around USD $20 plus ...
i think a lot of oil and gas companies will close shop..
it need higher oil price to make profit...

Good news for Bank tmr..
BNM lowers SRR ratio from 3% to 2%, in move to release RM30b into banking system
https://www.theedgemarkets.com/article/bnm-makes-second-srr-cut-four-months-ratio-lowered-3-2

Margin compression for projects due to Client want to slash budget in low oil price environment. Everyone in this oil field are effected ...

GOP senators ask Saudis to stabilize oil market

https://thehill.com/policy/energy-environment/487990-gop-senators-ask-saudis-to-stabilize-oil-market

Action from US to Saudi soon...Hope can deal with MBS before End March...

Good sign for Coronavirus vaccine...
Seem like it had reached the human testing stage.


The first U.S. coronavirus vaccine trials have begun
https://fortune.com/2020/03/17/coronavirus-vaccine-trials-begin-moderna/

Coronavirus vaccine could be ready ‘before autumn’, says EU Commission Chief
Read more: https://metro.co.uk/2020/03/17/coronavirus-vaccine-ready-autumn-says-european-commission-chief-12414537/?ito=cbshare

Russia Starts Testing Potential Coronavirus Vaccine
https://www.themoscowtimes.com/2020/03/17/russia-starts-testing-potential-coronavirus-vaccine-a69652

China begins clinical trials for its first coronavirus vaccine developed by the nation's top military bio-warfare expert
https://www.dailymail.co.uk/news/article-8121567/Coronavirus-vaccine-developed-Chinas-military-bio-warfare-expert-begins-clinical-trial.html

PNB has 62% equity interest in Velesto. (ASB - is part of PNB)
EPF has 8 % equity interest in Velesto.
Both combine owned 70% of Velesto....

https://themalaysianreserve.com/2020/03/16/pnb-staring-at-massive-paper-loss-in-og-counters/

The balance sheet of Velesto look much stronger than in 2016 and it still can survive with current low chartered rate...

With Debt to Equity ratio 0.35 and Debt reduced by close to RM 90 mil last year.
Finance cost reduced by RM 4 mil last year and expected this yr Finance cost will reduce further with lower borrowing and lower interest rate. Expected RM 10 mil lower finance cost compare to 2019.

Cash Flow : Net Cash Generated From Operating Activities in 2019 : RM 202 mil
Capex will be low compare to 2019 where 3 rigs had gone thru 5-yearly special periodic survey (“SPS”)

Velesto expected to give dividend after the capital reduction program...

As per latest Q report
All seven of the Group’s jack-up drilling rigs are currently contracted. NAGA 3, which is currently
undergoing the mandatory SPS is scheduled to resume work under its existing contract. With our
current order book of RM2.0 billion including options, our rig utilisation is expected to be sustained in 2020.

There is reason EPF and Amanah saham bumiputra continue bought shares at current market...

With commitment from Pertronas of capex spending for local market remain no change.
Velesto should be fine in 2020....

logically..Petronas to maintain capex despite oil price slump.
Velesto.should be safe for this round..

https://www.theedgemarkets.com/article/petronas-maintain-capex-despite-oil-price-slump

Pengerang on fire...
Missing victim's charred body found in Pengerang Complex
https://www.theedgemarkets.com/article/missing-victims-charred-body-found-pengerang-complex

Federal Reserve cuts interest rates to near zero in attempt to prop up US economy
Lower finance cost expected with such low interest rate.

https://www.theguardian.com/business/2020/mar/15/federal-reserve-cuts-interest-rates-near-zero-prop-up-us-economy-coronavirus

Dutch researchers find antibody which may lead to anti-corona medicine

https://www.dutchnews.nl/news/2020/03/dutch-researchers-find-antibody-which-may-lead-to-anti-corona-medicine/

Middle east tension at Iraq at escalation mode..
Could be Iran got some plan there..

Several Americans were injured when rockets hit Iraqi base for second time in a week
https://edition.cnn.com/2020/03/14/middleeast/iraq-coalition-troops-injured-strike-intl/index.html

Strategy of Saudi oil targeted Russia oil, Urals customers.

Saudi sell more oil to Russian oil customers at much higher discount and large volume but not for the non Russian oil (Urals). Asian customers may not able to enjoy larger volume from Saudi. Europe customers or Urals oil customer will benefit most from the Saudi strategy, direct attack on Russia oil customer.

https://www.theedgemarkets.com/article/saudi-refuses-give-extra-april-crude-least-three-asian-refiners

Petroliam Nasional Bhd (Petronas) says it plans to continue with its domestic capital expenditure (capex) programme of RM26 billion to RM28 billion this year, despite the recent oil price slump.

it will provide some stability for local oil and gas companies...

https://www.theedgemarkets.com/article/petronas-maintain-capex-despite-oil-price-slump

Expected Shale gas production will drop drastically due to US oil cut shale oil spending and production...

Most shale oil wells drilled in the United States are unprofitable at current oil prices, Rystad Energy warned earlier this week.

Crashing Oil Prices Force U.S. Oil Firms To Cut Budgets

https://oilprice.com/Energy/Energy-General/Crashing-Oil-Prices-Force-US-Oil-Firms-To-Cut-Budgets.html

No Doubt Shahril did the right thing last yr...
Now only 50% exposure to E & P with Strong cash player OMV as partner.
Sapura E should be no problem to withstand this round of the oil crisis which could last not so long once OPEC and OPEC+ back to table of negotiation.

Last yr only.. Sapura E raised RM 7 bil from selling 50% share to OMV and right issue shares at RM 0.3. PNB became the major shareholders with 40% shares.

Now the Sapura market only value it RM 1.678 bil.
I dont think this is acceptable for PNB at this price which it paid RM 0.3 last yr for the right issue shares.

The current Sapura E with Strong balance sheet, huge backlog contract RM 15.5 bil which can last for 3 yrs. Dont think current price is justified for PNB without talking any actions..

https://www.nst.com.my/business/2019/01/453365/sapura-energy-raised-rm4b-rights-issue

Lukoil head Vagit Alekperov also told investors on a conference call that he expected a meeting this month of a panel of experts from OPEC and non-OPEC nations to make a proposal to stabilize the oil market, which has been roiled by the collapse of a pact between OPEC, Russia and others on limiting supplies.

The Joint Technical Committee of experts from the informal alliance known as OPEC+, which includes OPEC, Russia and others, meets in Vienna in mid-March. Russian Energy Minister Alexander Novak said Russia would send its representative.

next meeting mid march..

https://www.google.com/amp/s/business.financialpost.com/pmn/business-pmn/russias-lukoil-calls-for-oil-producing-states-to-cooperate-over-virus-impact-2/amp

EIA now forecasts WTI spot prices to average $38.19/b in 2020 and $50.36/b in 2021, down $17.52 and $11.67, respectively, from last month's forecast. Brent is now forecast to average $43.30/b this year and $55.36/b next year, down $17.95 and $12.17, respectively, from last month's report.

US oil production, which the EIA predicted last month would cross the 14 million b/d threshold in late 2021, is now forecast to peak just above 13.2 million b/d next month and then fall by as much as 660,000 b/d into 2021 as US shale operators struggle with low prices.

https://www.spglobal.com/platts/en/market-insights/latest-news/oil/031120-steo-snapshot-eia-slashes-oil-price-demand-supply-projections

Last yr only.. Sapura E raised RM 7 bil from selling 50% share to OMV and right issue shares at RM 0.3. PNB became the major shareholders with 40% shares.

Now the Sapura market only value it RM 1.678 bil.
I dont think this is acceptable for PNB at this price which it paid RM 0.3 last yr for the right issue shares.

The current Sapura E with Strong balance sheet, huge backlog contract RM 15.5 bil which can last for 3 yrs. Dont think current price is justified for PNB without talking any actions..

https://www.nst.com.my/business/2019/01/453365/sapura-energy-raised-rm4b-rights-issue

Sapura OMV should be doing well with higher output with start of SK408

Sapura Energy Bhd in a posting on its linkedin page on Mar 3 highlighted its aim to commercialise gas reserves from SK408 Phase 1 to fulfil Asia’s growing gas demand.

This is following the full ramp-up of first phase of SK408, hashtag#SapuraOMV’s production which is expected to increase to more than 30 kboe/d, with the majority being gas

https://klse.i3investor.com/blogs/ongmy/2020-03-04-story-h1484712904-Sapura_Energy_to_commercialise_gas_reserves_from_SK408_Phase_1.jsp

Sapura Energy had RM ~ RM 10 bil debt with 53 % in USD and 47% in RM.

BNM reduced interest rate by 0.5 % in 2020
While US just reduced 0.5 % interest rate yesterday.

Expected there will reduction in Finance cost due to lower interest cost...

Sapura Jaya semi-tender to work in Angola at a good rate of US$250k per day (versus just US$100k per day in Southeast Asia)

Sapura Jaya should contribute significant revenue due to its better rate than current Rigs...

https://www.facebook.com/SapuraEnergy/posts/sapuraenergy-through-our-semi-submersible-tender-assist-drilling-rig-sapura-jaya/1165407330322198/

I think is worth to accumulate some shares at current low price...
The next Q result announcement should be end of March and worth for a bet..

All big ship below are busy at different location...as per marine traffic website..

Sapura 3500
Sapura 3000
LTS 3000
Sapura 2000
Sapura 1200
Sapura constructor


https://www.marinetraffic.com/en/ais/details/ships/shipid:413392/mmsi:353975000/imo:9651204/vessel:SAPURA%203500

Some good news about the 6 PLSVs Joint venture with Seadrill...

refer to Seadrill Q4 result...

98% utilization delivering $56 million EBITDA in the quarter
▪ Spot work won for Diamante running through to June 2020
▪ Received $5 million of shareholder loan repayments

Sapura Topazio had received contract extension as per announcement in Dec 2020


https://www.seadrill.com/application/files/7215/8280/7045/Seadrill_Limited_Presentation_2019_Q4.pdf

Total 8 rigs is in operation as per infield data included the latest Rig Sapura Esperanza Extended in Malaysia

https://www.infield.com/rigs/manager/sapurakencana-drilling-pte-ltd-rigs?Page=1

Drb should be doing well under new government...
its biggest shareholder is syed mokhtar ...

When a CEO said...

“I cannot say whether Sapura Energy will be profitable next year (FY2021), but I believe that the production from SK408 will help with the situation,” said its president and group CEO Tan Sri Shahril Shamsuddin at a press conference announcing the gas sales agreement with Petronas.

https://klse.i3investor.com/blogs/ongmy/223892.jsp

Naphtha , raw material used by Titan , up by 10% yesterday night...

Global PE price war begins as supply grows and demand fades
Higher cost producers, such as naphtha-based companies in Europe and Asia, will come under increased margin pressure, unless oil prices collapse. Capacity closures are a possibility.

https://www.icis.com/explore/resources/news/2019/09/11/10416432/global-pe-price-war-begins-as-supply-grows-and-demand-fades

Monitor closely on the annually audited report and see any auditor want to sign it or issue a warning to audited report with suspected issue....

There is an abnormal behavior of latest QR report.

Revenue per Q only RM 12 mil but there is significant increase of trade receivable of RM 7.5 mil in last Q as per cash flow statement.
Please check the latest QR and last Q report, you will notice this abnormal.

The current Q report registered lost due to impairment of RM 1.4 mil
Total trade receiveable for latest Q is RM 27 mil. equal to half yr revenue.
Not sure how much it will write off from the trade receivable in future.

As per previous QR cash flow statement : Net change in cash and cash equivalents is positive RM 2.7 mil
As per current QR cash flow statement : Net change in cash and cash equivalents is negative RM
RM 5.708 mil.

There is reason why one CFO resigned in Dec last Yr and the new CFO resign in July19 after working for 7 months.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6268721

Kenanga Research quite pessimistic on GenM from this RPT.

“Therefore, GenM’s commitment is not capped at only circa RM538.8 million.”

Based on Empire’s latest filing, its biggest outstanding debt is a US$520 million (RM2.17 billion) building term loans for the development of Resorts World Catskills which commenced operations in February 2018.

As of Q2 19, Empire has an outstanding term loan of US$504.7 million or US$688.5 million including interest payment for the next five years.

Assuming GenM has to bear 49% of this term loans, Kenanga said it may need to inject US$247 million for the debt restructuring.

The research house calculated that it will cost RM1.69 billion for GenM to own a 49% stake in Empire, eventually which includes the initial acquisition cost and the privatisation cost.

It said that GenM has no problems financing the acquisition given its cash position of RM5.56 billion as at Q1’19.

“However, the negative earnings impact in the near term could be significant as the 49% stake in US$155.4 million net loss, which accounts to RM320 million, 17% of GenM’s FY18 core earnings,” it said.

https://www.thesundaily.my/business/empire-resorts-deal-to-suppress-sentiment-on-genm-further-XL1278077

Genting M write off RM 1.8 bil casino project which not started yet in 2018...
Hard lesson for Genting in US casino bid
http://www.focusmalaysia.my/Focus%20View/hard-lesson-for-genting-in-us-casino-bid

Compare with Empire Resorts...
I believe RW catskillls Casino is less risky than above one with lower capital..

Gen Singapore target Japan....
Genting Singapore spreads bets, targets Osaka IR bid

https://www.straitstimes.com/business/genting-singapore-spreads-bets-targets-osaka-ir-bid

Thanks bursa for questioning GenM on the acquisition..

Genting Malaysia was responding to a query from Bursa Malaysia Securities, the exchange operator, over its decision to buy a stake in the Nasdaq-listed from a trust controlled by Genting Group chairman and chief executive Tan Sri Lim Kok Thay.

Read more at https://www.thestar.com.my/business/business-news/2019/08/15/genting-malaysia-defends-empire-resorts-deal#yr3eh68FSluQASTF.99

if not because of this acquisition, you will buy the GenM at RM 4.00.
With this uncertain acquisition, with more clarification now, will you buy GenM at current Price RM 3.07 ?
is this acquisition justify for price drop fr RM 4 to RM 3.07 ?

Gen M almost lost RM 5.5 billions after announcing this acquisition...
Is the lost of market capital worth so much for this acquisition ?

so many stock picks... why this stock attracted your attention to comment and follow the update...
for sure with reason....

In its recent quarterly report, Empire Resorts had identified multiple options to address its current liquidity challenges.

This includes seeking arrangements to provide additional liquidity, making reductions to its cost structure, restructuring its and its subsidiaries existing debt terms, as well as pursuing the joint non-binding proposal submitted by Genting Malaysia and Lim's Kien Huat Realty III Ltd.

"If these alternatives are unsuccessful, Empire Resorts has indicated that it may pursue a voluntary Chapter 11 bankruptcy proceeding in respect of its subsidiary that owns the Catskills casino operations.

Chapter 11 is easy for debt restructuring at US than real bankruptcy...

Read more at https://www.thestar.com.my/business/business-news/2019/08/15/genting-malaysia-defends-empire-resorts-deal#Emwq8qgUMl8K1P5V.99

When you notice the boss is right ...
the share price wont be as current share price...

Gen M had provided more clarity on the Acquisition.
Look like billion ringgit Market capital loss for Gen M may not be justifiable...
Latest QR should be good compare to last Q... wait till the QR announcement...