valid point there ageetkumar

Posted by ageetkumar > Sep 2, 2020 3:27 PM | Report Abuse

Armada has around 25 Offshore vessels and a couple of pipe lay / construction vessel. The brand new cost of each OSV is around USD 15 mil. Take 100 mil for 2 construction vsls. That will make around USD 700mil of MYR 2.8 Bn as new. Armad has in the last last couple of years declared impairment in excess on MYR 2 Bn. So these assets should be sitting in their books at close to scrap or zero value. I can't see how they can have any further impairments unless some kind of accounting gimmick / fraud is at play here

FPSO MARKET IS EXPECTED TO GROW AT A ROBUST RATE OF 11.80%

September 2, 2020

https://primefeed.in/news/4896744/fpso-market-is-expected-to-grow-at-
a-robust-rate-of-11-80/


The global floating production storage and offloading FPSO market is competitive and segmented. Transparency Market Research Market (TMR) report states that there are a few major players in the industry who are relentlessly developing new and innovative designs to penetrate the global market during the forecast period. These prominent players are focused on introducing new strategies like collaborations and partnerships to provide new in the global market.

Some of the prominent players operating in the global FPSO vessel market include MODEC, Inc., BW Offshore, BUMI ARMADA BERHAD, Blue Water Energy Services, and SBM Offshore N.V.

Growing demand for alternative sources of oil due to continual depletion of existing oil reserves drives the global FPSO market. The global FPSO market is expected to grow at a robust rate of 11.80% during the forecast period 2016 to 2026. Additionally, the revenue in the global FPSO market is projected to reach up to US$8.30 bn by the end of 2026.

oil price drop is a precious opportunity to accumulate...

since only the uninformed would sell

Huat ah!

@bullishhalali

https://finance.yahoo.com/news/apple-tesla-stock-split-more-shares-to-go-around-morning-brief-100905716.html

may be a good thing if masjid, church and temples never reopen...

actually i am quite certain it will be good...not only on the aspects of covid 19...but general tolerance between the citizens

The clearest sign that all other investment will be losers in the time to come is..... Maybank price decline

U.S. Medical Supply Shortage Plaguing More Than Just Tests for Covid-19

1 September 2020

https://www.bloomberg.com/news/articles/2020-09-01/supply-shortages-are-plaguing-non-covid-testing-in-the-u-s-too?srnd=economics-vp


Pipette Tips, Gloves
....................

There are also overlapping shortages. Swabs aren’t just for Covid-19 tests -- they’re also necessary for a respiratory panel that looks for viruses and whooping cough. Pipette tips are also used widely.


Some items, like protective gloves and lab coats, are so common beyond the world of infectious disease that stretched supplies have affected labs that detect food-borne outbreaks, screen newborns and conduct environmental health testing. While a spokeswoman for the Association of Public Health Laboratories said the surge in demand hasn’t yet stopped anyone from getting test results, there’s been enough trouble locating supplies to cause worry.

https://www.sinchew.com.my/content/content_2335198.html

New production capacity + higher selling price‧Supermax's earnings continue to be strong
.......................

Glove stock enthusiasts ask: Supermax (SUPERMX, 7106, motherboard healthcare group) stock price has risen a lot, what is the business outlook? Can it support high stock prices?

Answer: The growth rate of the average selling price of Superma gloves slowed down slightly in July this year, but analysts believe that due to the current oversold condition of glove products, it is expected that the profitability of the next three quarters will remain strong.

The fourth quarter of fiscal year 2020 is not the company's best quarter, because those orders are sold at lower prices and delivered in May this year. Tat Securities pointed out that starting from June 20, 90% of the company's product sales will be sold at higher prices.

Tat Securities expects Supermax to make a huge profit jump (possibly more than RM680 million) in the first quarter of FY2021, mainly driven by new capacity and higher average selling prices.

23 billion glove orders as of July
..................................

Tat Securities pointed out that the average sales price growth rate of the company's glove products slowed down by about 3.5% in July. The strong earnings performance is expected to continue into at least the next three quarters, especially the current oversold situation, that is, as of the end of July 2020, the order has reached 23 billion gloves.

Superma’s capacity expansion is on track. The four new production lines of the 12th factory in Block B (with a capacity of 2.2 billion gloves) are expected to be launched in the third quarter of this year, and the remaining four production lines will be launched before the fourth quarter of 2020 . The company is now building 5 new factories (P13, P14, P15, P16 and P17). The goal is to increase the total production capacity to 26.2 billion and 36.4 billion gloves by the end of 2020 and 2021, respectively. The current annual production capacity is about 24 billion, and it will increase to 48.4 billion by the end of 2022. Overall, the plant utilization rate in the first quarter of fiscal 2021 is expected to increase to approximately 85%.

The contact lens business
..........................

suffers losses. The contact lens business of Supermax currently only accounts for less than 2% of total sales. However, it has improved after the launch of new products. However, it still suffers operating losses, mainly due to additional expenses, especially advertising and promotion expenses. ; The loss for FY2021 is expected to be RM5 million.

As for the production of masks, the monthly production capacity will be 8 million as of the fourth quarter of this year, which is expected to be profitable.

In the fourth quarter of FY2020, Supermax's quarterly revenue increased by 107.7% and core net profit surged by 462.4%. CIMB Research pointed out that the management pointed out at the analyst's report meeting that it was mainly due to three benefits: higher average sales Prices, sales volume increase, and associated company profits rise (better distribution margins). "If it were not for some reasons, the company could have achieved higher profitability in the fourth quarter, including certain freight and delivery delays, and a write-down of 14 million ringgit due to factory shutdowns. Own brand manufacturing (OBM) distribution model is a winning formula ."

"Superma is confident of achieving higher profitability, especially in the first half of fiscal 2021. This is due to the increase in global glove demand, resulting in higher average selling prices (manufacturing and distribution), increased sales, and higher economies of scale. The bank was informed that Superma’s collection of deposits for orders brought the customer’s advance payment to RM894.2 million as of the fourth quarter of fiscal year 2020, proving the current strong 10 to 12 month order visibility."

CIMB Research maintains the company’s fiscal year 2021-2023 financial forecast unchanged, and continues to be optimistic about the prospects, mainly: 1. Optimistic operating environment (strong global glove demand); 2. Attractive valuation (Malaysia Gloves) The average P/E of the shares in the 2021 fiscal year is 26 times discounted by 31.9%); 3. The private label manufacturing business model has achieved higher profit margins than other peers.

CIMB Research has given an overweight rating with a target price of RM27; Tat Securities recommends to hold on with a target price of RM23 and 66 sen.

https://www.sinchew.com.my/content/content_2335198.html

https://klse.i3investor.com/blogs/hleresearch/2020-09-01-story-h1513281640-Bumi_Armada_Unleash_the_Kraken.jsp

see page 23 of latest qtr report on its floating debt structure at 84 pc

imagine interest rate is now reduced to 1.5 pc from 3.8 pc for 8 billion term loan

OMG...sifu James presenting Armada got 4888 views!!

https://www.youtube.com/watch?time_continue=1218&v=4EhDywd4b18&feature=emb_logo

i only see raider playing the same recorder again n again...it becomes more like soothing music before the market opens...LOL!

appears to be more of a currency bet

Posted by PZOGRO > Aug 31, 2020 4:05 PM | Report Abuse

Why Malaysian Topglove would be Warrant Buffett next investment pick?

https://www.thestar.com.my/business/business-news/2020/08/31/buffett-l...

"Note (that) BNM had cut the OPR by a total of 125bps year-to-date to 1.75% to complement the equally robust fiscal measures aimed at buffering the economy from the impact of the pandemic. But with growth surprising on the downside and an arduous recovery path ahead notwithstanding, there is room for further monetary easing to support growth in the coming months.

"As such, we now expect one final 25bps cut by BNM as early as in the forthcoming September meeting

..............

people still havent got the message that huge Debt is fantastic news for Armada...

BNM seen making final 25bps OPR cut as early as September — DBS

August 31, 2020

https://www.theedgemarkets.com/article/bnm-seen-making-final-25bps-opr-cut-early-september-%E2%80%94-dbs

BNM seen making final 25bps OPR cut as early as September — DBS

August 31, 2020

https://www.theedgemarkets.com/article/bnm-seen-making-final-25bps-opr-cut-early-september-%E2%80%94-dbs

Oil price hitting $46.3 / brl...really unfortunate market not open today

have feeling it will break 47 by this week

I missed the below article on MFCB earlier:

https://klse.i3investor.com/blogs/tradeview/2020-08-22-story-h1512480318-_Tradeview_2020_Long_Term_Value_Pick_4_Mega_First_Corporation_Bhd_The_P.jsp

very well expressed article, very fair

30% of amore in US said, they will NEVER take vaccine shots even with usd $1000 incentive each to do so.

In msia, there r so many health craze pple, likely 50% will never bother abt it.
Vaccine is for all super healthy people in the world.

Without long 3-5 yrs proven history of safety n high 98% efficacy, many in the world will not take the multiple shots
even paid to do so. The doctors would not take, how about you?

This smart Indian Dr of IIT has a pt:

“Chasing 2% of the population with a 98% sure cure has a far better probability of success than chasing 98% of the world population with a 2% surety of safety and efficacy,” he said

.......

expressed it very well , its very clear how the future going to be

@vespa, yes indeed... glad i manage to find this news from google

it gives a very good future prospect for Armada FPSO

oil price already $46/brl....how long Dayang can hold at this price level is a ticking 'time bomb'

Trust the above would definitely increase the FPSO utilization rate from July onwards..

Post removed.Why?

If you see on 11th Aug, some funds had acquired large chunks on many O&G stocks...as they probably know by next qtr earnings will show up....and they may not get such opportunity to buy cheap by then

@Reiko, i think it has to do with the fact that serrba had shown that its earnings is barely affected by the covid....unlike Dayang affected badly due to MCO locally in the last 2 qtrs

Serba unaffected in Qatar O&M jobs, as they did not have MCO like in Malaysia

As expressed by Dayang's management, i am confident coming qtr results of Dayang will be almost back to normal

Operating cash flow before changes in working capital (and interest) for last 2 qtrs:

766.263 m
.........

if you translate above cash to EPS, its 26.5 cents per annum

Meaning, Armada generates its entire market cap currently every year.

how cheaper can a stock be more than this?

ignore the debt risk...it does not exist with the future of zero interest rate...

some historical refreshment for newbies..

..........................

(Icon) Bumi Armada - A Not So Good Company Selling At Cheap Price Can Be A Good Buy

Author: Icon8888 | Publish date: Sun, 30 Jun 2019,

https://klse.i3investor.com/blogs/icon8888/2019-06-30-story212924-_Icon_Bumi_Armada_A_Not_So_Good_Company_Selling_At_Cheap_Price_Can_Be_A_Good_Buy.jsp

Where do yield-starved investors go?

https://www.klsescreener.com/v2/news/view/718535/where-do-yield-starved-investors-go

......

here.....Armada would give a yield of 30%

With a continuous reduction on 8 billion debt interest rate, Armada would effectively become like a commercial bank who makes net interest margin (NIM) between central bank and investors.....but Armada between commercial bank and Order book of 17 billion

More i dwell, the more its becoming clear what a wonderful bet Armada is with explosive return!

Operating cash flow before changes in working capital for last 2 qtrs:

766.263 m
.........

if you translate above cash to EPS, its 26.5 cents per annum

Meaning, Armada generates its entire market cap currently every year.

how cheaper can a stock be more than this?

ignore the debt risk...it does not exist with the future of zero interest rate...

some historical refreshment for newbies..

..........................

(Icon) Bumi Armada - A Not So Good Company Selling At Cheap Price Can Be A Good Buy

Author: Icon8888 | Publish date: Sun, 30 Jun 2019,

https://klse.i3investor.com/blogs/icon8888/2019-06-30-story212924-_Icon_Bumi_Armada_A_Not_So_Good_Company_Selling_At_Cheap_Price_Can_Be_A_Good_Buy.jsp

Where do yield-starved investors go?

https://www.klsescreener.com/v2/news/view/718535/where-do-yield-starved-investors-go

......

here.....Armada would give a yield of 30%

With a continuous reduction on 8 billion debt interest rate, Armada would effectively become like a commercial bank who makes net interest margin (NIM) between central bank and investors.....but Armada between commercial bank and Order book of 17 billion

More i dwell, the more its becoming clear what a wonderful bet Armada is with explosive return!

Post removed.Why?

This is Cold Eye stock liao...cant go wrong!

Operating profit before impairment increased to RM246.6mil in 2Q

https://www.klsescreener.com/v2/news/view/718247/bumi-armada-stages-strong-2q-performance-net-profit-rm120m

2% interest rate reduction of 8 billion is already 160 million per annum

Net cash generated from operating activities for last 2 qtrs (despite the MCO): 195,452 , its about 100m per qtr

the above is with almost half the revenue than normal due to MCO

at current cash level of 446m, it can easily become net cash company within next 2 qtrs


golden opportunity to accumulate

at this oil price level....it has nothing to worry about capex by petronas

maintenance are mandatory services

dayang earnings going forward will easily beat serba...its much easier to grow aggressively unlike serba which is already a monster

I see management had hinted significant improvement going forward.....

Dayang is quite independent on oil price. The pent up services may fall into coming qtrs....

Serba moving up already....what about Dayang?

ok thanks for the confirmation pjseow

https://www.theedgemarkets.com/article/mega-first-gets-us150m-loan-don-sahong-hydropower-project

KUALA LUMPUR (Oct 10): Mega First Corp Bhd secured a US$150 million (RM634.88 million) loan to part-finance the construction of the Don Sahong hydropower project in Laos.

Mega First told Bursa Malaysia today its wholly-owned subsidiary Mega First Investments (L) Ltd had yesterday entered into facility agreements with various financial institutions for the "club deal facilities".

The US$150 million loan comprises conventional term-loan facilities of US$85 million and an Islamic financing scheme of up to US$65 million, read the filing.

According to the company, the conventional facilities' interest rate and Islamic financing scheme's profit rate are based on a "variable rate that is linked to the financial institution's cost of funds. Based on today's cost of funds, the weighted average interest is 4.51%".

...

so it means it will be adjusted?

Further OPR cut of 25bps or 50bps in near term likely — AmBank chief

https://www.theedgemarkets.com/article/further-opr-cut-25bps-or-50bps-near-term-likely-%E2%80%94-ambank-chief

.........

where can you park money, if not for stock like MFCB

wonder, if MFCB loan interest rate has the potential to come down..

pjseow, any idea how their loan interest rate works - is that fixed?

when i see Maybank's results, it makes me realize how a precious gem MFCB is

very interesting news ahpooki2, thanks

Posted by ahpooki2 > Aug 27, 2020 2:05 PM | Report Abuse

https://theconversation.com/approval-of-a-coronavirus-vaccine-would-be-just-the-beginning-huge-production-challenges-could-cause-long-delays-144179?utm_source=whatsapp&utm_medium=bylinewhatsappbutton