Perak Transit teams up with Energetic Point to run Kuantan bus terminal
 
Perak Transit Bhd has teamed up with concession owner Energetic Point Sdn Bhd to operate Terminal Sentral Kuantan in Pahang, which serves as a hub for express buses as well as local city buses. Perak Transit's wholly-owned subsidiary Terminal Urus Sdn Bhd today entered into an agreement with Energetic Point for the collaboration, which will be effective for nine years — from Feb 1, 2021 till Jan 31, 2030. Under the collaboration, Terminal Urus will provide Energetic Point with a fixed sum of investment for the concession and in return, Energetic Point will pay a fixed monthly management fee of RM100,000 to Terminal Urus, commencing from next month. The total investment cost for the concession amounted to RM6.1 million, which will be borne equally by Terminal Urus and Energetic Point. "The management fee is subject to increment based on mutual agreement between both parties, with a minimum 3% increment every year," said Perak Transit. (The Edge)
 
Comment: As we expected the Group to secure several terminal management contracts in CY21, the announcement of such contracts is expected and welcomed. Because this collaboration is for 9 years and involves a fixed monthly revenue with annual increments, this contract illustrates the Group’s progress in striving to achieve a more recurring and cash-generative earnings profile. For an upfront investment of RM3.05m, the Group has a potential revenue of RM12.2m over the entire collaboration period (assuming annual increments of 3%). Assuming a 3% annual increment and spreading the initial investment evenly across the collaboration period, the Group achieves gross margins of 72% in the first year and gradually increases to 77% in its final year, which is within the management’s guidance of 50-80% gross margins. As the revenue contributions and capex of this collaboration are within our expectations, we make no changes to FY21E CNP of RM46.8m. Maintain OP call with post-share-consolidation DCF-driven TP of RM1.08 (WACC: 7.7%, TG: 2%).

RHB *Equity Research*


*Perak Transit* ( *Not Rated*, FV: *MYR1.05*) – On Path To Higher Earnings Base

The rain is gone. See any buy signals?

Kuala Kangsar is planning to upgrade its bus terminal in today news. I think Ptrans will be in good position to secure something. Will this be a catalyst?

Started the next leg of advance? Heading to challenge the immediate resistance of 1.23?

Real or fake, Sifu tksw

Sifu tksw, 260 habis. Real real or fake move?

Sifu tksw, closed at 260, how?

20mil DBT ? anyone know what is happening?

Rm1 after consolidation? That's 33 sens at today price

Buyers are very cautious. Pushing it up slowly but surely

I believe Pintaras is heading north now. Recovery is on track and hopefully, it can pay 20 sens dividend in 2021 or a special dividend to compensate the drop in dividend in 2020.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3101825

Big boys lining up to buy? buyers out number by 4 to 1.

Coming ? Or just pushed up b4 dividend Ex?

Kido asked a very good question. I was hoping some sifu will enlighten us.

In my opinion, I think it is a good move. The EPS & NTA per share will increase & PE ratio will be lower. The current market price will looks cheaper. Unfortunately, the share trading system I'm using has not updated the figures.

Furthermore, I guess the company can start SBB more aggressively without having to get a new mandate from the shareholders.

I also notice that CB Lim has done some family shareholdings reshuffling to avoid a Mandatory General Offer.

Cancellation of 45,000,000 treasury shares. At the same time, doing SBB at current price.

Does it mean that the management is weeding out the weak shareholders at current price?

A first single tier interim dividend of 2 sen per share was announced on 28/8/2020.

No announcement on payment date was made until today.

How long more we have to wait ????

GAP up. Both price & volume shot up.

Is it just a plantation play?

This share is definitely undervalue, just cannot quantify it. The boss has been ploughing back the retained profit for a long time by venturing into SPV, buying refinery, developing the Kalimantan plantation and SBB. My feeling is that it is about time to mature.

Yes, privatisation is a possibility. same as Batu Kawan. But I think the chance of Bkwan is higher. There are many other means that the boss can cash in later.

For the period ended 30/6/2020, Plantation segment alone (excluding share of results of associates & JV) is 13% of the total revenue. This figure will increase significantly as more palms are planted and matured together with higher CPO prices.

https://markets.businessinsider.com/commodities/palm-oil-price

Core Net Profit (CNP)? Both HLG & KENANGA use CNP which is lower than the actual Net profit to underestimate the earning power of CBIP. Both also came out with difference figures which show that they can manipulate the figures to support their wanted conclusion.

ATM, the POE is the core business. I think the importance of POE will be significantly reduced in the coming 2-3 years. Both in term of revenue &Earnings.

HLG gives a sum-of-parts derived TP of RM0.83 which is way below its reported NTAB of 1.46. We all know that the Kalimantan is worth more than that.

Kenanga is giving a higher TP of RM0.87 base on a PE of 11.8. Is it fair? I think that is up to individual to decide.

I am so happy to see many constructive comments on this company.

CBIP plantation segment is still in its investment stage, A lot of its retained profit are put into this segment. I am not too worry about the losses incurred because it has to take care of the cost of planting the new acreage and maintaining the young palms. I hope this can explain why the performance in Q419 & Q120 as well as Q220 are disappointing.

This situation should improve as more palms are coming into maturity with CPO prices maintaining at current prices as evidence by the encouraging improvement in revenue.

'If you observed long enough, most of the spike was due to SBB, and slowly get pull back.' A very good observation by kinuxian. Not many IBs and or retail players are involved at the moment. The day will come.

BTW, SBB also means it is investing in itself. Confidence & patience shown by its management.

As mentioned by i3gambler, they are instead investing big in palm oil plantation. Another good piece of work by i3gambler. When and if they decided to devest from plantation, it will be a BIG rainfall profit to its loyal shareholders. Otherwise, the enhanced future earning from this segment will bring about dividend growth.

The first interim dividend of 2 sens is a pleasant surprise to me. A total of 4 sens equivalent to 4.4% dividend yield for this year will be good.

I am not too sure about the contributions from SPV, oil mill and refinery plant.

Most plantation companies are reporting very good results. Can't see any reasons why CBIP is not doing the same.

Big volume changing hands at 88 sens. What is going on?

Lack of follow through

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3074418

Aggressive SBB started again

back to uptrend with vol

slipped back to downtrend?

Last SBB was at 96.5 on 12/6/2020.

After that the share price started to fall back to 88 despite the fact that CPO was on the raise substantially.

Does this counter only rely on SBB to support its price????

Are they waiting for the AGM on 30/7 before they start SBB again?

CPO future seems to stabilized above 2,600 in Q3. If plantation segment fall to red in Q2, it should recover in Q3

https://www.theedgemarkets.com/article/heveaboards-prospects-cushioned-resilient-demand-japan?type=malaysia

KON Lim Chai, thanks

Can’t find the nanyang article, can someone please post it

TPGOG owns a refinery (i.e.pre-treatment) plant with a capacity of 120,000MT/year which have been fully operational since the beginning of
2020 and a biodiesel plant with a capacity of 134,000MT/year which is currently undergoing refurbishment and itis targeted to be fully operational in July 2020 barringany unforeseen delays.

This is a cutting of the chairman statement in the AR.

"In the segmental information of the Q report last month, it is good to note that the new segment (Biofuel/Refinery plant) has a revenue of 22.931 mil that generate a profit of 2.322 mil." only refers to the refinery plant and NOT the biodiesel plant. The revenue & incomes should be quite consistent and doesn't subject to price fluctuation.

Yes, cancellation of treasury shares will improved the NTA/share.

Liquidity in the company is good at 144mil cash. 200 mil loans is manageable.

Capex is not high beside the development expenditure for plantation.

The Rm40mil sale proceed from disposal of property will ease the cashflow too.

Anyone have any idea how much is the market value of plantation in Kalimantan?

The cost of planting was put under plantation development expenditure before and I think it is now lumped up with property, plant & equipment.

The last reported figure was 253mil in 30/12/2017.

The value of that 32,000 ha is worth very much more than Rm232m

How significant is the plantation segment to CBIP?

From last year revenue figures of 50mil, it represent 9.2% of the total of 541mil.

We are definitely looking at a much higher figure this year.

If the company decides to concentrate on engineering and sell off the plantation when they are matured, then we can look forward to some handsome rain fall profit.

I don’t like the way the management is putting the plantation and milling in the same segment.

The revenue increased from17mil in 2018 to 50mil in 2019.

Loss increased from 8.7mil to 19.7mil.

Anyway to estimate what we can expect from these two segments.

According to HLG, profitability at biofuel/refinery will likely be impacted by wide palm oil-gas oil (POGO) spread.

The 10% profit margin looks good. The next Q results which covers April to June will see palm oil & crude oil prices at their lowest.

Let's see how the company perform.

In the segmental information of the Q report last month, it is good to note that the new segment (Biofuel/Refinery plant) has a revenue of 22.931 mil that generate a profit of 2.322 mil.

Thanks i3gambler. You spend so much time in analysing shares , don’t really think you’re a gambler

Form the latest AR, I notice that SPV segment Revenue hit a high of 327mil in 2017 and dropped to only 2.7 mil in 2019. The revenue recovered to 6.5mil in 1st Q of 2020. according to HLG report on 1/7, the order book of SPV stand at 75mil as at 31 mar 2020. We can look forward to better contribution from this segment in 2020

kinuxian & i3gambler, what is SBB?

Agree with Zhangliang, next Q no operating profit & hope for some FV recovery. When work resume in Singapore then we can also see operating profit starting to roll out. Order book is good.

so quiet

PlayStation, how you get the impression that the dividend is sustainable? I do agree that the company is quite generous to distribute dividend

I was waiting for the email of approval to attend the AGM. Nothing came through. Both PBB & Maybank can get me in! did anyone manage to attend?

Sense maker, I'm equally eager to get some insight of the recent MCO impact from the Q results but disappointed too.

Kon, happy to see some price advancement. further progress? where are the catalysts?

Kon, I know where you are coming from, taking into consideration of depreciation, the company still have a net positive cash flow after dividend. However, I think the company will take the opportunity to reduce the dividend for the coming year. This happened to Pintaras Jaya, an excellent dividend paying company.