dollardollarbill

dollardollarbill | Joined since 2015-08-28

Investing Experience Advanced
Risk Profile Moderate

My i3 blog, Worthy Stocks: https://klse.i3investor.com/blogs/dollardollarbill/blidx.jsp My Telegram channel: @worthystocks https://t.me/worthystocks

Followers

7

Following

2

Blog Posts

19

Threads

197

Blogs

Threads

Portfolio

Follower

Following

Summary
Total comments
197
Past 30 days
5
Past 7 days
0
Today
0

User Comments
Stock

2 weeks ago | Report Abuse

If the market values PBA at a reasonable 10x PE on RM150 million earnings, we're looking at a share price of RM4.50.

Warren Buffett and Charlie Munger have always sought to invest in companies with monopoly-like status, ideally akin to an unregulated toll bridge.

PBA's long-standing issue of low water tariffs has now been resolved, allowing for potential tariff increases every three years.

Three decades of pent-up earnings are now being unleashed, paving the way for superior earnings growth going forward.

Stock

2 weeks ago | Report Abuse

Indeed @dragon328, with Penang having the second lowest domestic tariff, it paves way for another round of decent tariff hikes in 3yrs time.

There will also be another earnings boost coming sooner in Jan 2026 from non-domestic tariff hikes (last adjustment on 1 Jan 2023).

Although PBA expects RM86m in additional income for 2024, my estimates indicate it's closer to RM100m. PBA is probably being conservative in their estimation.

Bulk domestic water tariff is also now at a flat rate RM1.73 per cubic metre vs. 35sen for >90 cu m usage previously. And there's the additional 7sen per cubic m for non-domestics with the ICPT.

The stock may have jumped but it hasn't priced in many positive factors yet. I still see strong upside.

Stock

2 weeks ago | Report Abuse

https://pba.com.my/pdf/news/2024/07022024_PBAPP_DOM-Tariffs-2024_Apendix.pdf

"The PBA Group of Companies projects to generate an additional RM86 million in
revenue in 2024 from the implementation of the new rates."

Stock

4 weeks ago | Report Abuse

@Bullstocks888

Exactly. Not to forget that PBA is also in a strong net cash position of RM193m as of 30 Sep 2023 (cash of RM213m vs. total borrowings of RM20m).

On the other hand, Ranhill is in net Debt position (RM1.04 Billion total borrowings vs. cash RM264m)

So PBA is very attractive from an Enterprise Value standpoint too.

Stock

1 month ago | Report Abuse

With 15% ROE moving forward...

Stock

1 month ago | Report Abuse

Historical high P/B was abt 1.1x in 2004 when ROE was abt 9%

Stock

1 month ago | Report Abuse

Congrats everyone!

PBA next to follow suit!

Stock

1 month ago | Report Abuse

It's the Year of the Dragon328
YTLPOWR + PBA
Multibagger stocks

Stock

1 month ago | Report Abuse

If the market values PBA at a reasonable 10x PE on RM150m earnings, we're looking at RM4.50.

Warren Buffett and Charlie Munger always tried to buy companies that have monopoly-like status. Ideally an unregulated toll bridge.

PBA's issue of low water tariffs has now been resolved, and water tariffs can now be increased every 3 years. The new tariff rate adjustment also requires water consumers to pay the Imbalance Cost Pass-Through (ICPT) rates; for Penang it will be +7 sen for every cubic metre of water consumption for now. So the new effective 'water' tariff rates are actually higher.

Stock

1 month ago | Report Abuse

@dragon328
Congrats on YTL/YTLPOWR and thanks for always sharing your valuable insights on those companies.

Posted by dragon328 > 6 hours ago | Report Abuse

many thanks for @Neoh Jia An, @dollardollarbill and KingKKK for the good articles and information on PBA

Stock

1 month ago | Report Abuse

Ranhill secures three-year licence renewal from SPAN for water treatment in Johor
https://theedgemalaysia.com/node/697173

I like Ranhill, but I like PBA more :)

PBA Holdings Bhd: (P)rofits to (B)ecome (A)bundant?
https://klse.i3investor.com/blogs/dollardollarbill/2023-12-28-story-h-211507880-PBA_Holdings_Bhd_P_rofits_to_B_ecome_A_bundant_dollardollarbill.jsp

Stock

1 month ago | Report Abuse

Tariff Setting Mechanism (TSM)

Stock

1 month ago | Report Abuse

Songkran water festival

Posted by StartOfTheBull > 1 hour ago | Report Abuse

If water tariff is lower then more people can afford to use water running hose to wash car.

Stock

1 month ago | Report Abuse

https://www.pressreader.com/malaysia/the-star-malaysia/20240109/282626037520953
"This means my recent average monthly water cost is really a very low RM3.74; even a cup of teh tarik and two pieces of roti canai cost more than that."

Stock

1 month ago | Report Abuse

@hng33

Agree with you that some might have misinterpreted the statement and taken profit.

The statement:
"the expected average increase imposed on consumers would only be an additional RM3 to the monthly bill"

The keyword is "average". Another keyword is "expected".

How is the average calculated? For which usage bracket? Referring to average user? First 35,000 litres per month? Referring to which states?

Many states are applying for tariff increase. Penang, Kedah, Perak, Melaka, Johor, Selangor, etc.

If we use Selangor as an example then it's easier to understand.

Selangor current tariff structure:

0-20 cubic metres = RM0.57
>20-35 cubic metres = RM1.03
>35 cubic metres = RM2.00

So, if a resident in Selangor uses 30 cubic metres (30,000 litres) per month, the current water bill is RM21.70.
Hypothetically, if tariffs increase by about 15%, new tariff will look like

0-20 cubic metres = RM0.66
>20-35 cubic metres = RM1.19

New monthly water bill is RM25.10, difference of RM3.40

Penang current tariff structure is very low. For the FIRST TWO usage brackets
0-20 cubic metres = RM0.22
>20-40 cubic metres = RM0.46

A resident in Penang is currently paying a ridiculous RM9 for 30 cubic metres of monthly water usage.

Previously Penang was seeking tariff review for:
0-20 cubic metres = RM0.55
>20-35 cubic metres = RM1.10
>35 cubic metres = RM2.00

Based on this, the monthly bill would be RM22, difference of RM13.

This was the previous suggested tariff back in 2021. It could be even higher in 2024.

Other states that have much higher tariff than Penang are also applying for a review, like Selangor for example.

So, Penang would obviously get a much higher tariff increase as it currently has the lowest domesitc tariff among all states in Malaysia.

Also take note of what SPAN said previously in its annual report 2021 page 48: Only Pahang, Perlis and Penang are allowed to increase tariff by more than 30% because of their existing low rates. Other states limited to 30%.






Stock

1 month ago | Report Abuse

Just like MSM faces hurdles with sugar ceiling prices, PBA awaits potential water tariff hikes for increased profits. Two sides of the same coin in different sectors, but both operating in essential commodities - sugar and water.

PBA could be trading at 2-3x potential earnings...

PBA Holdings Bhd: (P)rofits to (B)ecome (A)bundant?
https://klse.i3investor.com/web/blog/detail/dollardollarbill/2023-12-28-story-h-211507880-PBA_Holdings_Bhd_P_rofits_to_B_ecome_A_bundant_dollardollarbill

Stock

1 month ago | Report Abuse

Suruhanjaya Perkhidmatan Air Negara (SPAN) in its 2021 annual report on page 48:

Penang has been granted permission to implement a tariff increase exceeding 30%. This allowance is aimed at enabling PBA to meet the future capital expenditure needs. Despite the tariff increase exceeding 30%, the expected impact on users' monthly bills is anticipated to be not significant due to the existing low tariff rates.

SPAN annual reports: www.span.gov.my/category/view/104

Stock

2 months ago | Report Abuse

Prosperity Beckons Ahead

Stock

2 months ago | Report Abuse

PBA = Potential for Big Appreciation

Stock
Stock

2023-11-24 15:46 | Report Abuse

In my personal view, I believe MSM's share price hasn't fully factored in a recent and vital information that it's receiving sugar subsidies/incentives of RM1 per kg. This incentive totals RM24 million monthly, and if sustained, it would reach RM288 million annually.

See page 22 of its recent 3QFY23 presentation slides attached.

Direct link to presentation: https://www.insage.com.my/Upload/Docs/MSM/3Q_FY2023%20Quarterly%20Results%20Briefing_1.pdf#view=Full

Source: https://www.msmsugar.com/investor-relations/investor-relations

FELDA Chairman Datuk Seri Ahmad Shabery Cheek also recently shared this information on his TikTok account, and it was reposted by MSM (@gulaprai):

https://www.tiktok.com/@shaberyc/video/7303886296777264392?is_from_webapp=1&sender_device=pc&web_id=7285675402361439751

Stock

2023-11-22 16:19 | Report Abuse

Unrelated...but

Robert Kuok memoir, page 222

Shortly after we went public in 1970, the stock exchange collapsed. Stock markets have these bouts of influenza. It was doom and gloom for about three months.

As the market crashed, Shangri-La shares fell to $1.10, to $1.08, to $1.06, and even as low as 92 cents. As the stock dropped, I started to buy. I bought and I bought. In the end, when I looked up, I controlled about 40 percent of Shangri-La shares and had realized my dream of controlling the company. I suppose descendants of those who got watered down by me will say that I contrived the market collapse. I would love to be credited with such supernatural powers, but the truth is that it was pure chance and opportunism on my part.

Stock

2023-11-22 09:42 | Report Abuse

Old 2011 article for reference:
https://theedgemalaysia.com/article/shangri-la%E2%80%99s-assets-appear-undervalued

"Shangri-La’s revalued net assets could be worth some RM4.88. "

Stock

2023-11-17 15:28 | Report Abuse

PBA's share price, currently akin to a calm dam, is consolidating at current levels, gathering strength for a potential surge. When the time is right, it could transform into an explosive force, a dynamic surge, much like the unstoppable energy of water bursting from a dam, creating a wave of potential returns for investors.

Patience...

Stock

2023-11-14 10:30 | Report Abuse

PBA = Profits Become Abundant

Stock

2023-11-10 09:40 | Report Abuse

Nice. I added more earlier this morning

Stock

2023-11-09 16:17 | Report Abuse

Another positive. PBA 3QFY23 financial notes:

With effect from YA 2019, any unutilised Reinvestment Allowance (RA) can only be carried forward for a maximum period of 7 consecutive YAs after the expiry of the qualifying period of RA. The unutilised RA for YA 2018 and prior YAs arising from a qualifying period which has expired as at YA 2018 can be carried forward until YA 2025. In addition, the unutilised RA arising during the special RA period is allowed to be carried forward for 7 consecutive YAs from YA 2025 until YA 2031.
Based on existing legislation, as at 30 September 2023, it is anticipated that RM275 million out of the RM698 million (30 September 2022 : RM244 million out of RM698 million) available will be utilised to set-off against future taxable profits.

Stock

2023-11-09 16:13 | Report Abuse

Dividends potentially to rise too, back to good old days:
DPS paid:
FY08: 10 sen
FY07: 14 sen
FY06: 12 sen
FY05: 12 sen
FY04: 12 sen

Stock

2023-11-09 10:12 | Report Abuse

Smart money investors sapu-ing shares

Stock

2023-11-09 10:09 | Report Abuse

Valuation wise is cheap

Stock

2022-02-13 14:40 | Report Abuse

Excellent showing

Stock

2021-04-21 16:08 | Report Abuse

Once bank pembangunan run out of shares to sell. Maybulk should hit new highs

Stock

2021-04-21 16:06 | Report Abuse

Robert Kuok power

Stock

2021-04-21 16:06 | Report Abuse

Once in a decade opportunity

Stock

2021-04-13 09:08 | Report Abuse

Bjfood is a good stock. Besides buying the SBUX US stock, where on earth can you buy an almost pure play Starbucks stock

Stock

2021-03-10 14:57 | Report Abuse

Thanks cocqueen! Take a look at SWKPLNT, check it out on my blog

Stock

2021-03-10 11:36 | Report Abuse

KYY. Next stock SWKPLNT

Stock

2021-03-10 06:51 | Report Abuse

Mr. Koon Yew Yin,

Thanks for using content from my KPS blog post (published on 27 Oct 2020):

KPS (5843) - The MOST UNDERVALUED EMS play
https://klse.i3investor.com/blogs/dollardollarbill/2020-10-27-story-h1535481854-KPS_5843_The_most_Undervalued_EMS_play.jsp

Could you kindly give credit below that image by putting a link to my blog post. Thanks!

The more detailed KPS story:

KPS (5843) - A RM1bil EMS company in disguise [$$bill]
https://klse.i3investor.com/blogs/dollardollarbill/2020-10-20-story-h1534735929-KPS_code_5843_A_RM1bil_EMS_company_in_disguise_bill_dollardollarbill.jsp

For random updates, join my Telegram channel @worthystocks

News & Blogs