https://www.bixmalaysia.com/news-announcements/announcement-details?ID=65734

https://www.forbes.com/sites/jessicatan/2023/08/13/ytl-head-francis-yeoh-and-his-family-charge-ahead-with-growing-their-data-center-business-to-future-proof-the-68-year-old-infrastructure-conglomerate-will-their-bet-on-solar-powered-parks-pay-off/?sh=75cfb3d53902
Forbes

Digital banks set to reshape the banking landscape with bite-size loans and deposits
https://themalaysianreserve.com/2023/07/17/digital-banks-set-to-reshape-the-banking-landscape-with-bite-size-loans-and-deposits/
YTL partner SEA in M'sia

Digital bank startups backed by Grab Holdings Ltd. and Sea Ltd. have started accepting larger deposits in Singapore
https://www.bnnbloomberg.ca/grab-s-digibank-to-accept-bigger-deposits-signaling-cap-raised-1.1947723.amp.html

Teo Seng forecast to sustain solid first-quarter financial performance
https://www.thestar.com.my/business/business-news/2023/07/19/teo-seng-forecast-to-sustain-solid-first-quarter-financial-performance#:~:text=Its%20stellar%20financial%20performance%20in,Investment%20Bank%20(HLIB)%20Research.
(LHI's subsidiary Advantage Valuations own 52% of TeoSeng)

Why might a shareholder sign a waiver of preemptive rights? An existing shareholder might be asked to sign a waiver of his preemptive rights in order to satisfy new investor due diligence that shares going to be issued will not be subject to opposition by an existing shareholder exercising his preemptive rights.

Grain prices have not changed much this week, and economists say Russia’s exit from the deal will not have the dire effects seen last year, in part because other parts of the world have had robust harvests and in part because Ukraine has stepped up exports by truck, train and river barge.
https://www.nytimes.com/2023/07/18/world/europe/russia-barrage-odesa-grain-bridge.html

Apakah hubungan antara Kerajaan Negeri Selangor dan Digital Nasional Berhad berkaitan projek 5G di Selangor
5G DAN KONSORTIUM JARINGAN SELANGOR
http://dewan.selangor.gov.my/question/5g-dan-konsortium-jaringan-selangor/

KJS, a Bumiputra Company .. established at the initiative of the Selangor State Government … existing Management Services Agreement with the Selangor State Government … coordinate planning, implementation and maintenance of the telecommunication infrastructure services in Selangor …. process all applications relating to telecommunication infrastructure development.
KJS is a license holder of both the Network Facilities Provider ("NFP") and Network Service Provider ("NSP") License issued by Malaysian Communications and Multimedia Commission ("MCMC").
In July 2019, KJS has extended its presence to Negeri Sembilan where KJS was appointed by the State of Negeri Sembilan
KJS have built, leased and managed more than 6,000 communication structures nationwide. In addition, through the 5G commercial launch by Digital National Berhad ("DNB"), KJS is working closely with DNB to rollout new telecommunication towers for the deployment of 5G infrastructure and services nationwide.
https://www.konsortiumjaringanselangor.com.my/aboutus

BTW any one got info on how the Digital banking license is working out?
MLFF may be tied up with the digital banking part of YTLPower. Its main competitor is TNG which is owned by CIMB.
Personally I hardly go to the bank itself these days.

Have to work out the profitability of MLFF. Can't wait for main stream analysts to work it out for you.
Looks like MLFF is already in place because some of the concessionaires are already using it.
But YTLPower had been quiet about it, most probably because of non-disclosure agreements.
Same with HSL, they have to sign non-disclosure agreements.
To me, I feel it .... A PLC must make immediate public disclosure of any material information. Information is considered material, if it is expected to have a material effect on the price, value or market activity of any of the PLC’s securities; or the decision of a holder of securities of the PLC or an investor in determining his choice of action.

https://www.nst.com.my/news/nation/2023/03/891368/five-highways-have-open-payment-system-sept-ending-tng-monopoly

https://paultan.org/2023/03/21/multi-lane-free-flow-mlff-toll-system-to-cost-rm3-45-bil-study-to-begin-in-2024-implementation-by-2025/

…..The multi-lane free flow (MLFF) toll collection system, which comes after a very long wait, is expected to be operational nationwide by 2025.
……A source says toll concessionaires are unhappy that the previous government had made a deal with YTL-Konsortium Jaringan Selangor Sdn Bhd (KJS) to be the third-party toll collection company for all toll booths nationwide.
……YTL Power International Bhd owns a 60% stake in KJS via YTL Communications Sdn Bhd.
KJS
……The nationwide MLFF system is estimated to cost about RM3.46bil. There are 33 highways in Malaysia currently.

Anyone got more info on "Hiccups in barrierless toll rollout" .....theStar?
(YTL Power International Bhd owns a 60% stake in KJS via YTL Communications Sdn Bhd.)

https://www.myhsr.com.my/rfi

HSR is officially on.
https://www.malaymail.com/news/money/2023/07/11/myhsr-corp-seeks-kl-singapore-high-speed-rail-proposals-from-local-international-firms-and-consortia/79101

c) Input price risks
Escalating raw material and coal prices, higher shipping costs and the US dollar appreciation against the ringgit can affect margins. Coal especially which is imported.
Even this article written on 13 Jan 2023 is already outdated https://www.cemnet.com/News/story/174125/malaysia-cement-pricing-highs.html#:~:text=To%20meet%20some%20way%20in,Malaysia%20on%2018%20November%202022
Check this link …. https://tradingeconomics.com/commodity/coal
Coal (USD/ton) has drop from 400 to 140 presently.
(However electricity price has gone up because govt stopped subsidy)

b) Revenue / Projected demand for cement.
Budget 2023: Infrastructure projects to be accelerated this year, says PM
NST - February 24, 2023
Eg of current projects include MRT3, ECRL, Penang South Island, JB-S’pore Rapid Transit System, West Coast Expressway, etc
Projects that many not aware of …. “Gov't approves three highway projects in Klang Valley - PJD Link, Putrajaya-Bangi expressway and KL NODE” https://paultan.org/2022/05/24/govt-approves-three-highway-projects-in-klang-valley-pjd-link-putrajaya-bangi-expressway-and-kl-node/
Possible revival of the HSR https://www.thestar.com.my/news/nation/2023/05/12/both-countries-keen-to-revive-hsr-project

What determines the profit outlook?
a) Cement price
CIMB’s Chong said ….“ASP has risen by 11% over the past six months to RM410-420/mt …..
It is quite hard to find quoted price/chart of bulk cement for M’sia for tracking purpose
eg S’pore’s available … https://www.statista.com/statistics/993391/market-price-bulk-cement-singapore/
The average price of cement (Ordinary Portland) also increased 1.1 per cent to RM22.40/ 50 kilogramme (kg) compared to RM22.15/ 50 kg in February 2023
https://www.businesstoday.com.my/2023/04/07/stats-depts-finds-steel-cement-prices-continue-to-rise-in-march/
10 Mar 2023 — In a statement today, DoSM said the average price of cement (ordinary Portland) rose 1.5 per cent to RM21.99 per 50 kilogrammes (kg) from RM21.
https://www.bernama.com/en/business/news.php?id=2171885
I believe a small increase in asking price can make a lot of difference in profit.
Eg can also be seen in the smaller competitor, HumeInd. Q2 EPS shot up from 0.89s to 5.36s for Q3 reported on 16th May 2023

Presently, MCement has the largest market share of 65%, followed by CIMA 19%, Hume 9%, Tasek 6%
https://www.bondsupermart.com/bsm/article-detail/malayan-cement-s-completes-acquisition-of-ytl-cement-positioning-itself-for-market-leadership-RCMS_262545
The MCB Group is the largest cement producer in the country. It operates four integrated cement plants – in Langkawi, Kanthan, Padang Rengas, and Bukit Sagu. A fifth, the 71-year old plant in Rawang, is undergoing planned refurbishments. The Group also operates four grinding stations, three cement terminal facilities, and two cement depots.
The integration of YTL Cement businesses in Malaysia under MCB has delivered logistical and cost synergies, to better serve customers. The strategic coastal location of MCB’s Langkawi Plant with its direct sea access allows the Group to export clinker and cement competitively, and provide clinker by sea to the two grinding stations in the South.
The MCB Group has 72 ready-mixed concrete batching plants across Peninsular Malaysia and three quarries in Pantai Remis in Perak, Hulu Langat in Selangor and Kota Tinggi in Johor. The Group’s concrete division is the supplier of choice for complex and large-scale infrastructure projects, supplying technically sophisticated products to meet the evolving needs of construction projects in the country.
The concrete division’s network of operations throughout Peninsular Malaysia allowed the Group to fully capitalise on development opportunities, while simultaneously supporting our customers nationwide.
Our aggregates quarries also continued to perform despite challenging conditions. The Kota Tinggi Quarry stepped up its export of quarry products to Singapore and our Pantai Remis Quarry was able to effectively capitalise on the quarry product shortage in the Northern market.

To understand better …
In 2019, YTL bought a 51% stake in Lafarge Malaysia for RM1.63 billion cash, or RM3.75 per share, from AICL (Associated International Cement Ltd) which was on a divestment spree in the region.
Subsequently, a mandatory general offer (MGO) to buyout the remaining shares at RM3.75 per share.
The transaction price of RM3.75 per share was 19% above Lafarge Malaysia’s five-day volume weighted average share price of RM3.15
https://theedgemalaysia.com/article/ytl-cement-completes-acquisition-51-stake-lafarge-malaysia?
Subsequently in 2021, Malayan Cement took over YTL Cement's cement and ready-mixed concrete biz in RM5.16b deal (RM2b cash, shares plus preference shares at RM3.75)
https://www.edgeprop.my/content/1845373/malayan-cement-take-over-ytl-cements-cement-and-ready-mixed-concrete-biz-rm516b-deal
The aim was to consolidate the cement business under a singular umbrella, improving operational efficiencies, leveraging shared expertise, experience and resources.

CIMB maintained its “add” call on Malayan Cement Bhd (MCement) with a higher target price (TP) of RM5.08, from RM3.97, amid stronger recovery in volumes.
https://theedgemalaysia.com/node/670352
https://assets.theedgemarkets.com/pics/2023/20230608cement1.png
Quite a big jump for analyst Chong to make, from RM3.97 to RM5.08
(Still figuring out what my own TP should be)
Today’s Price : RM3.22
PE : 37.1 (PE will come down, Q1 EPS was 0.07s, Q2 1.16s, and Q3 4.83s if the quarterly profit trend continues)
NTA : RM4.48

Why is KL Node important?
Because it is the last part of the KLORR.
This means it will connect to the West Coast expressway (GCE/IJM) to the west and NorthSouth Expressway to the north (via LATAR). It will also connect to the old Ipoh Road northwards.
To the East, it connects to the Karak Highway.
https://www.freemalaysiatoday.com/category/nation/2022/07/25/new-highway-proposed-to-connect-klang-valleys-east-and-north/
SLT is a wholly-owned subsidiary of AZRB
https://malaysiastock.biz/Company-Announcement.aspx?id=1021860
KL Node’s project proponent is Sambungan Lebuhraya Timur Sdn Bhd (SLT), based at Menara AZRB, the same building as EKVE Sdn Bhd, the concessionaire for the East Klang Valley Expressway.

Of interest to AZRB is “KL Node or Kuala Lumpur Northern Dispersal Expressway”
This highway is described as the final link in the grand plan of the KL Outer Ring Road System to connect the KL-Kuala Selangor Expressway (Latar) and East Klang Valley Expressway (EKVE).
A works ministry spokesman stated, “The KL Node project, expected to take off in 2024, will connect the existing alternative highway networks and disperse traffic on the outskirts and reduce the traffic congestion in the capital city.”
This new toll highway will span 24km and will be elevated along 83 percent of the route. The proponent of the KL NODE highway will be Sambungan Lebuhraya Timur Sdn bhd (SLT).
The KL NODE will run from Hulu Kelang to the Melawati and Melati Housing Estates, Gombak, Selayang Heights and end near Kanching Eco Forest Park.
This new toll highway is also projected to pass through areas including hills, residential areas and villages,of course, this is still subject to final approval though so take it with a pinch of salt. The areas included are listed below:
· Entry/exit points of EKVE near Masjid Al Ridhuan, Hulu Kelang;
· Kampung Pasir, Hulu Kelang (MRR2);
· Taman Melawati and Taman Permata (MRR2);
· Kg Klang Gate and Wangsa Melawati (MRR2);
· Desa Melawati, KL East and Taman Melati (MRR2);
· Gombak Integrated Transport Terminal (MRR2);
· Kampung Sungai Chinchin, Gombak;
· Seri Gombak;
· Kampung Sungai Tua;
· Taman Selayang Mutiara;
· Selayang Heights;
· Jalan KL-Ipoh (FR01); and
· Entry/exit points of Latar near the Kanching Eco Forest Park.

There was not much fanfare when it was announced (which is actually good.)
Gov’t approves three highway projects in Klang Valley – PJD Link, Putrajaya-Bangi expressway and KL NODE - 24th May 2022
https://paultan.org/2022/05/24/govt-approves-three-highway-projects-in-klang-valley-pjd-link-putrajaya-bangi-expressway-and-kl-node/

First let’s recap a little about the EKVE (East Klang Valley Expressway)
EKVE is the eastern part of the KLORR (KL Outer Ring Road), the equivalent of the Guthrie Corridor Expy and ELITE in the west.
It is a concession own by AZRB for a period of 50 years!
As reported in the Edge 6th Mar 23, EKVE 91% completed, to be opened in stages in 2024, says the Works Ministry
The southern part of the KLORR is SKVE and SILK which it connects to in a ring.
Analyze this map https://www.ekve.com.my/overall-klorr-map to understand.
EKVE is built on green land hence it was budgeted at only a cost or RM1.5b compared to say SUKE (RM5.7b)

Anyone notice the price of WCE (which is building the West Coast Expressway backed by IJM) has doubled 100% since the beginning of the year?

BTW the 50m shares acquired by Tan Sri Lau constitute a 1.37% share.
No corresponding seller was announce, so I assume it again come from a <5% shareholder.
Who? your guess would be as good as mine!

More worrying are those with less than 5% because they can dispose quietly without informing bursa.
Amanah Saham Bumiputra with 4.9% had held steady since 2019
EPF has 2.8% or 102m shares (on 31 Mar 2023) compared to 3.2% or 116m shares (on 31 Mar 2022)
Hence I figure out the EPF sold 14m shares the past year!!!!!
[Just like they have been selling YTL / YTLPower – quite mind boggling people!]
Continue my research later – mid-night now – good-nite!

So why is LHI price so low from its IPO price of RM1.10
Someone must have been selling, but who?
Checking the 30 largest shareholder (as of 31 Mar 2023) …
Emerging Glory with 52% belonging to the Lau family
Datuk Lau recently bought 20m and 30m on 12 Jun 2023, so you can rule out the Lau family selling.
Maybank Sec for Clarinden Investment is the 2nd largest shareholder at 8.5% (313m shares)
Clarinden/Affinty/Concordant (S’pore based) last sold 2.3m shares back in 17 Mar 2022.
Clarinden/Affinty/Concordant with well over 5% cannot quietly sell because they will have to report.
(Btw, Affinity was Emerging Glory’s partner that took Leong Hup Hlg & Emivest private in 2014)

The profitability of the poultry business depends very much on the cost of chicken feed which in turns depend on the price of wheat and corn.
Checking wheat futures, it is around 690 now compared to 1100 in early 2022. (There is a slight blip upwards since the dam in Ukraine broke.)
Corn is around 640 compared to 820 around early last year.
Of note is that LHI is not a pure play chicken business.
It feedmill business is huge, with revenue of 993m, only slightly lower than its livestock/poultry business of 1199m.
EDITDA for feedmill was RM149m, that is where its main profit come from in Q1.

Most of the Poultry & egg counters made hefty profits in the 1st quarter, but LHI was the exception,
with Q1 net profit dropping to RM22m from RM90m Q4 last year
“EBITDA decreased by 83.0%. The decrease was mainly due to margin compression stemming from the elevated input costs of feed as well as low average selling price of DOC in Indonesia”
True, Indonesia was having a chicken glut in Q1 and they were culling chicken!
It made no sense especially to the small farmers to rear poultry and then sell below their cost.
Supply and demand I believe have played out in Indonesia.
Check out Indonesia Average Wholesale price, Chicken Meat https://www.ceicdata.com/en/indonesia/average-wholesale-price-by-regions-chicken-meat/average-wholesale-price-chicken-meat-bali-denpasar-municipality
The price has shot back up since around May 1st
…..”average selling prices (ASP) in Indonesia have surged significantly over the past month on the back of reduced supply as well as increased demand during the Ramadhan festivity” …. AmInvest
Note that Indonesia is most important market because it contributes to 35% of LHI total revenue (followed by M’sia, Vietnam, S’pore and Philippines.)
I hope to see LHI results improving in Q2.

Is LHI undervalued? Can the more serious investors add to my comments?
Price : 0.495
PE : 8.1
DY : 3.6%
IPO : RM1.10
AmInvest TP : 0.79
RHB-OSK TP : 0.63
M’caSec TP : 0.97

BTW did I hear correctly? LHI said during the recent AGM that they have collected their subsidy up to 31 Dec last year. Q1 subsidy have not yet been collected.

[Good to see dragon328 and observatory in this forum]

Getting some share pricing into perspective and what we may hope to expect in future

In 2013 and 2014, MCement (Lafarge)’s revenue was around RM700m per quarter and pre-tax RM120m per quarter and MCement (Lafarge) share price was around RM10 compared to present RM2.70

MCement Q3 results reported recently, Revenue was RM990m, pre-tax was RM63m
For HumeInd’s revenue was RM288m Profit was RM27m

(As some may know and what I am hoping) if HSR is launched, things are going to look a lot different for MCement.

@pang72. Agree with you about this election thingy.
I started loading up Genting the past few days. Not sure if correct move. Hahaha!

Let's hope for the best. I think I will hold on to my YTL., YTL Power, MCement, Gamuda etc altho my cost is very low.
Only a bit disappointed with Genting and GENM. (Attended Genting AGM this morning)

Hi Dragon328
I may be wrong but I think the govt will have no choice but to go ahead with the HSR, esp if they do not have to fund it.
Q1 had been bad! Oil price down, palm oil down, electronics down, no money for mrt3, etc
Only a few bright sparks left in Bursa, but they all have gone too far ahead of themselves.
Straight line up.
A correction is most welcome.
BTW I like Gamuda too.
Common thing about Gamuda and YTL, these companies do not rely on Govt hand-out.
They thrive both locally and internationally.

Mind boggling! YTL Corp capitalisation at yesterday's price was RM9.92b = USD 2.15b
But Wessex (under YTLPower) alone was worth USD2.3b to Enron in 1998 before Enron collapsed.

What banks are in the Belt and Road Initiative?
The two main institutions of this type – the Export-Import Bank of China (ExIm) and China Development Bank (CDB) – are the largest sources of finance for Silk Road loans. ExIm Bank lent more than $80 billion in total last year, almost three times as much as the Asian Development Bank.
Another possible financing for our HSR may come from Singapore’s Temasek if they deem this project viable.

“Enron acquires Wessex Water for US$2.3 billion” August 31, 1998
“The Enron Corporation said it had agreed to sell Wessex Water, a British utility, to the YTL Corporation, a Malaysian energy and construction company, for $777 million in cash” 26 Mar 2002
If YTL (Power) monetarize it now after 20 years, how much do you expect YTL (Power) to get from this regulated business?

Environmentally, it is less polluting, by replacing the thousands of flights between Penang-KL-S’pore.
The short haul especially KL-S’pore is rather wasteful because not long after the plane take off and reach cruising speed and altitude, it is already getting ready to descent. (Not counting the one hour ride from KL to Sepang and airport clearance time)
Lastly, I have been rather disappointed with Wessex. YTL should consider disposing it? What says you? There are so many exciting things to do here in M’sia and S’pore!

I believe the HSR project may need to be implemented for its multiplier effect on the economy. As long as it is viable and managed by reliable and tested companies (like YTL)
Even better is that the HSR should be extended to from S’pore to Penang.
Along this line will be a new Super Multimedia Corridor with Data centers and a renewable energy grid along the way.

Due to the government’s tight fiscal condition and ballooning national debt - the principle that has been clearly stated by the Malaysian government is that we welcome this project to be resumed but with private funding. S’pore is said to be also keen on the project
https://theedgemalaysia.com/node/666637

While we bicker about the viability of KL-Singapore HSR, Indonesia has side-stepped us and build Southeast Asia's first HSR with speed up to 350km/h. The journey time between Jakarta and Bandung will be reduced by 75% from 3 hours to 40 minutes.
Thailand govt is exploring a 670km HSR between its two largest cities (Bangkok - Chiang Mai), on top of the existing 250km HSR under construction (Bangkok - Nakhon Ratchasima)
In Loas, the Boten–Vientiane railway connects the capital Vientiane (south) and the northern town of Boten on the border with Yunnan, China. This connects north to Kunming and the rest of China. The line was officially opened on 3 December 2021.
…. provisions in the south to link with the Bangkok–Nong Khai high-speed railway in Thailand and possibly all the way to Singapore via HSR ….central line on the Kunming–Singapore railway ……part of the Belt and Road Initiative BRI.

Anyone got more info to share on the HSR?
Possible contenders:-
Berjaya Group – China’s Sinohydro Corp
YTL - CRRC Corp Ltd, the world’s largest rolling stock manufacturer
MRCB - in the past partnered with China Communications Company Corp, or CCCC
MMC – understood to be looking for a Japanese partner
China Railway Construction Corp Ltd (CRCC) - sources say is keen to partner with local companies.

https://theedgemalaysia.com/node/665994

https://ceomorningbrief.theedgemalaysia.com/article/2022/0397/Home/2/624992
Govt removes ceiling price for chicken and eggs, subsidies for bottled cooking oil from July
The govt may have no choice, otherwise artificially suppressing the price will cause many small farmers to go bust, which is in turn bad for for the food security of the country.
LHI being one of the biggest supplier not only in M'sia but in SEA has plenty to gain, more so, as it also supply the chicken-feed

Most of the smaller chicken farm has closed down, including listed LKTM has already exited.
Hopefully the worst is over for LHI.