As at the end of March 2022, its PFF segment’s order book amounted to RM30mil which will be recognised over the next 12 months. We understand from management that there will not be any recognition of PFF in 2QFY22 as the project is expected to be completed in the subsequent quarters.
I did a back of the envelop calculation. the last profit without PFF is 13m & the increase of rental for last Q is 3M. I'm pretty sure they have collected the PFF hence I'll be disappointed if it fall short of that.
The video is by Double Sword. My personal view is it is looking a bit tire at current level. Prefer to enter when the handle is formed. 63.5 should be a reasonable support. I also agree with unclelimhuat & looking forwards to a better QR.
MY thought on the PP is since the management has decided on this path to expediate the development of the company so be it.
It is good to note that the boss is aware that this PP could and in fact did cause the short term players to leave the counter momentary hoping to return at a lower cost. He was acquiring more share at the 60 sens level on Monday.
For the mid term players, the EX -dividend date is 28/4 and the highly anticipated better QR is to be announced end of May. During this period, the share prices should be able to hover around the current level.
For the long term investor, the growth in profit has to be generated rapidly to provide a bigger cake for all to share.
Imho, I don't think the PP is required although it might expediate the process of signing more TMCs. The rest are all budgeted and could be easily satisfied by the near term internally generated earnings.
On the issue of improved share liquidity, it contradict of their previous move of share consolidation of 3 into 1.
Sifu TreeTopView brought out a good point of cornerstone investor(s). I think Knownfact also hinted on Dato' Eddie Ong could be the candidate. I totally agree that all already been arranged as suggested by the tight timeframe involved.
The issue price of the Placement Shares shall be fixed by the Board at a later date after the receipt of all relevant approvals for the Proposed Private Placement based on the prevailing market conditions and the 5-day volume weighted average market price (“VWAP”) of PTRANS Shares. The Placement Shares will be priced at not more than 10% discount to the 5-day VWAP of PTRANS Shares immediately preceding to the price-fixing date for the Placement Shares. For information, the 5-day VWAP of PTRANS Shares up to and including the LPD is RM0.6019.
The Board, after due consideration of the various fund-raising methods, is of the view that the Proposed Private Placement is the most appropriate avenue for raising funds as:- (i) It enables PTRANS to raise additional funds without having to incur interest expense or service principal repayment as compared to conventional bank borrowings. This allows the Company to preserve cash flow for reinvestment and/or operational purposes for further growth; (ii) It is an expeditious way of raising funds from the capital market as compared to other forms of fund raising methods; and (iii) It enables PTRANS to strengthen its equity base which in turn may potentially increase the liquidity of PTRANS Shares.
For those who are concerned about the impact of raising interest rate & oil prices.
Are interest rates upcycle and higher crude oil prices affect PTRANS bottomline? Although the market may speculate the inevitable rate hike by BNM in 2H22 will affect fixed asset operators such as REITS due to increase in the cost of borrowing, we note that majority of PTRANS’ borrowing is dominated by Sukuk Murabahah - 98% of total borrowing in 4QFY21, with an outstanding RM100m of the RM500m facility unutilized – where PTRANS have interest rate cap as preventive measure (source). Also, the increasing diesel price that was driven by the surging global oil prices will not impact PTRANS materially much as the group’s bus have been pumping subsided diesel which is fixed at RM 1.881/litre (vs current price of RM2.15).