That one off gain was just a pleasant bonus surprise... Any potential for future earning growth?

1) DWZ has provided a profit guarantee of RM3.9 million for FY2015 and a profit after tax of RM4.64 million for FY2016. MClean’s share of the profit guarantee works out to RM4.697 million over the two years.

2) The synergy created by the acquisition of DWZ to drive earnings growth.

“Together with DWZ, we will be able to take on bigger jobs as a full turnkey solutions provider, as opposed to offering services,” explains Yeo.

3) MClean to make cost-savings from synergy of about 20%. This is due in part to MClean leveraging on DWZ’s facilities, which will have a lower cost.

“We plan to do the lower value-add services, such as Label and 3D barcode removal, in Malaysia. This will be the bulk of the work. We will do the remainder of the high value-add work in Singapore. We should be able to save a great deal by warehousing in Malaysia as the cost is much lower,” says Yeo.

4) And so on....

Another aspect of the business is the increased reach the group hopes to gain from the oil and gas industry. At present, the group does high-end surfacing work like electroplating of deepsea drill bits for companies such as Halliburton and Technip.

While there is a slowdown in the oil and gas industry, Yeo is still optimistic that MClean will be able to secure some jobs this year.

“Yes, [the] oil and gas [segment] will be challenging, but this is also an opportunity for us to gain a stronger foothold. Companies like Petronas may be slowing down their exploration and production activities. However, there are some ongoing contracts with vendors. We don’t work with Petronas, we do work for their suppliers. Together with DWZ, we plan to increase the scope of the work we undertake. For example, instead of surfacing drill bits, we want to manufacture the entire drill bit,” he says.

Overall, Yeo hopes that the oil and gas segment will contribute about 20% to revenue while the HDD and electronics segments will contribute evenly the remaining 80%.

Looking ahead, he says MClean is unlikely to pay dividends this year. It has never paid dividends since listing. “But we hope to pay dividends at some point when we are profitable. That is the goal we are working towards,” he adds.

The company is now looking out for new acquisitions and investments that will increase MClean’s growth and reach, says Yeo.

“One such example is MClean’s auxiliary packaging division. We will continue to monitor the economic and business conditions closely and will include the possibility of further fundraising to grow at a faster pace,” he adds.

MClean gets its act together

http://www.theedgemarkets.com/my/article/mclean-gets-its-act-together

This article first appeared in The Edge Malaysia Weekly, on February 8 - 14, 2016.

AFTER having been listed on the ACE Market for more than four years, MClean Technologies Bhd may finally be ready to turn a profit after acquiring a 55% stake in DWZ Industries Sdn Bhd.

“With the inclusion of DWZ, which we acquired last September, we should be able to post a net profit for FY2015,” executive chairman Jason Yeo Hock Huat tells The Edge.

Recall that DWZ has provided a profit guarantee of RM3.9 million for FY2015 and a profit after tax of RM4.64 million for FY2016. MClean’s share of the profit guarantee works out to RM4.697 million over the two years. In contrast, MClean paid RM14.1 million for DWZ.

Bear in mind that for the nine months ended Sept 30, 2015, MClean posted a net loss of RM2.48 million, down from a loss of RM4.78 million the previous year. The group’s revenue also increased 44% to RM35.59 million.

Yeo, however, declines to discuss the exact figures for the group’s profitability so as not to pre-empt the company’s fourth-quarter earnings announcement, which will be made on Feb 25.

It was speculated that the acquisition of DWZ, which was paid for with MClean shares, was a reverse takeover or sorts. Lim Han Kiau, the largest shareholder in DWZ, emerged with a 31.76% stake in MClean following the acquisition. Singapore-based Lim has since been appointed MClean’s chief executive.

Yeo however still retains the largest stake in MClean — 38.84%.

Looking ahead, the upside from the acquisition is not limited only to the profit guarantee from DWZ. On top of that, Yeo expects the synergy created by the acquisition to drive earnings growth.

“Together with DWZ, we will be able to take on bigger jobs as a full turnkey solutions provider, as opposed to offering services,” explains Yeo.

MClean specialises in precision cleaning, washing, assembly and other services related to the hard disk drive (HDD) and semiconductor industries. Its key clients include Western Digital and Seagate. Over the past four years, however, MClean has not been able to turn a profit.

“Before we listed, the industry was growing at double digits. But after we listed, growth suddenly slowed down and our capacity was too large,” says Yeo.

Combined with DWZ, however, he expects MClean to make cost-savings from synergy of about 20%. This is due in part to MClean leveraging on DWZ’s facilities, which will have a lower cost.

“We plan to do the lower value-add services, such as Label and 3D barcode removal, in Malaysia. This will be the bulk of the work. We will do the remainder of the high value-add work in Singapore. We should be able to save a great deal by warehousing in Malaysia as the cost is much lower,” says Yeo.

It is also important to note that MClean will not need to commit further investment to expand the scope of its existing work. Yeo says MClean and DWZ’s combined facilities will be more than sufficient for MClean to play the role of a turnkey solutions provider for the HDD industry.

MClean has about RM2.8 million in cash in its books and virtually no borrowings.

If all goes according to plan, the group should be looking at a market share of between 7% and 12% in the HDD segment alone.

One interesting aspect of the business is that MClean competes regionally for jobs. Hence, the scaling down of HDD production in Malaysia should not be a big problem for the group.

“HDD components are very light, so it isn’t too expensive to ship them around. We can compete for work in the region,” he explains.

The downside is that MClean will have to contend with more competitors. Nonetheless, Yeo points out that there are no comparable peers in Malaysia — in terms of the broad scope of services MClean offers as well as the quality and precision of work.

Currently top 3 persons in the management team combine owned 131.16m 73.37% of the total shares. Estimate only 47.62m free float available in the market...

Lim Han Kiau, CEO 31.54% through Decor

Hock Huat Yeo, Chairman 36.84% through JCS and direct

Chow Kok Meng, Bert, COO 4.99%

DGC Holdings Pte Ltd 56,378,000 31.54%

JCS Group 39,747,942 22.23%

Hock Huat Yeo 26,117,000 14.61%

Chow Kok Meng, Bert 8,919,999 4.99%

Citigroup Nominees (Asing) Sdn Bhd
Exempt AN for Citibank N.A Singapore 5,627,200 3.15%

HSBC Nominees (Asing) Sdn Bhd
Exempt AN for Credit Suisse 4,654,100 2.6%

Total 178.78m (included 56.378m issued to Decor at 0.25, now Decor boss Mr Lim own 31.54% of Mclean) i think this is the latest....

EXPERIENCED INDUSTRY VETERAN JOINS MCLEAN BOARD
New Group CEO appointed amidst expansion via strategic acquisition of DWZ

KUALA LUMPUR, 12 OCTOBER 2015 – MCLEAN TECHNOLOGIES BERHAD (“MClean” or the “Company”), a leading precision cleaning and washing solutions in the Hard Disk Drive (“HDD”) value chain, announced the appointment of Mr. Lim Han Kiau as the Group Chief Executive Officer (“CEO”) of the Company. The appointment comes on the heels of the completion of the acquisition by MClean of a 55% stake in DWZ Industries Sdn Bhd (“DWZ” or “the Group”), a subsidiary of Singapore-based Decor Industries Pte Ltd.
Assuming the position as of 12th October 2015, Mr. Lim has extensive experience in both precision cleaning as well as surface finishing which will allow him to bring synergy to the enlarged MClean Group leading the way to a new phase of business expansion. Mr. Bert Chow however, will continue to helm the precision cleaning business of MClean as Chief Operating Officer (“COO”).

Mr. Jason Yeo, Chairman of MClean expressed, “We are extremely pleased that Mr. Lim has decided to join our team here at MClean and welcome the wealth of experience in business management and leadership he brings, which will be an invaluable resource in strengthening our business operations. He is highly qualified and brings a fresh perspective which will reinvigorate the Company, allowing to Mclean to continue to grow our market share in the industry.”
Mr. Lim, a Singaporean aged 55, is a well-respected businessman with extensive experience in the metal surface treatment industry. He is the Chairman of Décor Group of Companies (“Décor Group”) which still holds 45% equity in DWZ, post-acquisition. The Décor Group is an established secondary process vendor which has grown from strength to strength since its incorporation in 1987, and is comprised of 5 companies supporting the world’s leading HDD manufacturers, oil and gas manufacturers, telecommunications companies and semiconductor manufacturers in the region.

Mr. Lim has been instrumental in this success and is an innovative and creative business leader with a proven track record in both management and operations. He has built strong client and customer relationships over his 30-year tenure in Surface Treatment Services via the Décor Group.

MClean’s business provides precision cleaning and washing solutions for hard-disk drive components, media cassettes, trays, medical devices and other components that require a high level of precision cleaning. The addition of DWZ which is in the business of surface finishing of metal parts for electric and electronic industries, which makes them a natural fit within the enlarged MClean Group as electroplating is a process that takes place before precision cleaning in the HDD value chain.

“The Company is focused on enhancing and strengthening our business operations while seeking new and stable revenue streams. We are excited to add Mr. Lim to our existing Board of Directors, as it will provide the needed impetus to accelerate our growth as we move towards realising our vision to be the World Leader in Surface Treatment Services such as Precision Cleaning & Electroplating,” added Jason Yeo

NTA has increased from 0.14 to 0.26

ock wa can collect now?

Very nice result.... so can push above 0.25 now?

Bintai to shine in 2016?

“I believe the worst is over,” the group’s executive vice-chairman Ong Puay Koon said.

tkp2, was published in The Edge financial daily one of the head news today posted by sky2 above.

Expecting good Q result in Feb?

Bintai Kinden: No more impairment of receivables in near future: Bintai Kinden Corp Bhd, which on Wednesday bagged a RM120 million contract for the construction of student housing in Malacca, expects no more impairment of its receivables in the near future. “We have written off everything that is necessary. Whatever remains in our receivables are all new jobs. I believe the worst is over,” the group’s executive vice-chairman Ong Puay Koon said. - Edge FD

UOBKH Retail Market Monitor 4 January 2016


Stocks to watch:


2) BINTAI KINDEN CORPORATION; Technical BUY with +37.5% potential return
*Last RM0.320 Target: RM0.445, RM0.495 Stop: RM0.275
*Timeframe: 2 weeks to 2 months

Back in April 2015, The management already expressed confident FY16 is going to be better than FY15 but so far first two Q results were below expectation. Possible he reserve a pleasant surprise for coming 3rd Q in Feb?


old news back in April 2015...


"For these two years, engineering sector will contribute more because we want to support the building of a more developed nation. This needs a lot of engineering and contracting input so we want to contribute on that."

Meanwhile, the group is confident that its current financial year ending March 31, 2016 (FY16) will perform better than FY15, driven by its engineering business.

"FY16 will definitely be better than FY15. By FY16, a lot of unforeseen factors within the economy can be much clearer, especially with the introduction of GST (Goods and Services Tax).

"Our results have not been good for the past few years because of the (economic) turbulence but it has been improving. With that, we're able to make the company stronger and face whatever unknown factors coming our way," said Ong.

Fleeting excitement.... a warm up to 2016 rally?

Good time to collect?

going to break 0.9?

This Q report earning spike is a pleasant surprise...Next Q most likely not too far off.... Ringgit has been weak staying above 4.2 since Sept with Oct briefly below for few days...Analysts are expecting Ringgit to stay weak for 2016 also. For financial year ending 31 January 2016 8sen of eps is possible.

Better earning for Comcorp in 2016 when the power plant revenue kicks in... suppose to start end of this month but slight delay to May 2016. possible contribute 2sen eps for the 6 months period. Next big earning driver for Comcorp to grow in renewable energy sector in Malaysia and also Indonesia in the coming future.

The prospects of biomass and/or renewable energy industry in Malaysia is one of the six main thrust of the 11th Malaysia Plan whereby Ringgit Malaysia Fifteen Billion (RM15 Billion) was allocated as part of a game-changing move to introduce green technology initiatives into the economy. (Extracted from BERNAMA on 21 April 2015).


My main interest is actually very potential for Comcorp to supply the smart meter to TNB... this will be the "mega" durian I am waiting for it to drop.... for easy calculation say 1 unit smart meter costs only rm100 x 8,500,000 units = $$$$$$$ Can you smell the durian?

From the management:

Comcorp is already in the LED business whereby we design and manufacture LED lighting (going green) for incandescent bulbs replacements, T8 florescent light replacement to include LED down light, flood light and street light.

We are also preparing for the future power meter replacements by TNB with single phase and three phases AMI (Advance Metering Infrastructure). This involves designing the meters and when successfully awarded will be to manufacture them. The progressions to the next future phase for SMART Grid.

From The Star news:

Consumers will soon have access to real-time information on their power usage, pattern and disruptions – thanks to the smart meter.

Tenaga Nasional Bhd (TNB) plans to deploy its Advanced Metering Infrastructure (AMI) to 8.5 million customers in the country.

Its president/CEO Datuk Seri Azman Mohd said the initiative was part of the company’s goal to achieve energy sustainability and security.

http://www.thestar.com.my/news/nation/2015/10/28/85-million-tnb-customers-to-get-smart-meters/

Is there any bright future for Comcorp?

More to come....

Next q looks like is good also?

from the comments in the report:

For the first 9 months of current financial year, the Group recorded a net profit of RM7.6 million. We forsee a strong demand for our commercial products and expect the Manufacturing segment to continue to drive the Group's performance for the remaining period of the current financial year

Yes excellent result! Tomorrow gap up.... near term possible TP=0.5 at least....

Someone wrote back in Oct....you can go check for any news there see if it make sense to you.

http://klse.i3investor.com/blogs/bonescythe/84640.jsp

After 0.37 then 0.40 ?

This time can go higher?

3rd QR middle of the month...time to collect?

Bintai son premium still low....

360captilist your tp 1.16 when you think can reach?

Thanks sifu Kopi :)

Coldrisks u have good knowledge on health.... I read about moringa before...is where in africa they use to feed the poor since the leaf got good nutrient... may i know why u so interested in moringa?

Since Sept already got 3 projects worth 155m....

Pity, no more sifu kopi to give advice here.... hope bintai got action next week. I entered wa got stucked recently... :(

Sorry i can't type mandarin, but can read....

Thank you Keng88. You join the group already?

Found how to delete....:) Hi Nightkids Kopi sifu busy don't think he read my msg. If you would so kind to help me to ask him can add me or not? 谢谢您

Nice :)

Here is the old news more relevent to TNB smart meter. I believe Comcorp got this deal. Time for Comcorp to fly again? :)

"Working closely with Echelon, we've already secured our first pilot with Tanaga Nasional Berhad Research, which is the leading utility in Malaysia serving more than eight million customers," said Lim Keng Hockat, CEO of Comintel Sdn Bhd, a leading system integrator for utilities in Malaysia and Indonesia. "The value of Echelon's sub-system offering with the CPM 0600 is real and has proven fruitful for us."

http://www.comcorp.com.my/news_echelon.html

Is this the product finally ready to bid for TNB 8.5 mil smart meters?


Comintel, Malaysia, and EnVerv Announce Their Cooperation on Range of Products for Street Lighting and Smart Meters

http://venturebeat.com/2014/06/17/comintel-malaysia-and-enverv-announce-their-cooperation-on-range-of-products-for-street-lighting-and-smart-meters/

Does anyone know who supply this smart meter as reported in Star? hope is Comcorp..... imaging how much revenue will get from supplying 8.5mil smart meters....

8.5 million TNB customers to get smart meters

http://www.thestar.com.my/News/Nation/2015/10/28/85-million-TNB-customers-to-get-smart-meters/