Hiaptek result is almost due to ESSB UNREALISE foreign translation gain RM 147m (remark: these foreign translation gain is due to ESSB trading USD account which is at highest strength against RM during April-July period. As much as 87% of ESSB steel are export oriented, therefore, most of earning are USD denominated, only 17% is local sale in Msia.
https://htgrp.com.my/corporate-presentation/

Added more topglove at 1.00

Penag Perak treated water transfer is wake up call for all Penang to face reality that treated water is expensive, water traffic need higher hike

Yup, Penang rich, PBA shouldn't give subsidy to Penang domestic water anymore. Water traffic rate cannot be national second lowest anymore. It should earn mote profit in order to built more water treatment, built more dam to conserve rain raw water, replace old pipe to decrease 26% non revenue water

1. The Group is optimistic that the strong growth momentum will sustain, as customers continue replenishing their depleting glove stockpiles. The group continues to see MoM uptrend in sales volume in Sept 2024 and expects customers’ replenishment activity to pick up in subsequent quarters, underpinned by inventory rebuilding by distributors, indicating that demand recovery had further gained momentum. Presently, its sales volume had strengthened 25%-30% MoM, bringing utilisation rate to 65%-70% vs. our assumption of 55% in FY25 (based on 64b pieces capacity) compared to 45% in 3QFY24. Recall, it has previously highlighted that the bulk of a shipment delay in 3QFY24 estimated at 500m pieces had already been shipped and will be booked in 4QFY24.

2. It is optimistic that ASPs are expected to inch up gradually, potentially by 5%-15% or USD0.80 - USD1.50 per 1,000 pieces due to the uptick in demand and mitigation against the appreciating MYR against USD. However, due to the lag impact, ASP increases will only be felt gradually starting from Nov-Dec CY24. We believe predatory pricing by certain overseas players (i.e. selling below cost over an extended period to eliminate competition) have diminished as Chinese players’ utilization hit >90% While TOPGLOV is silent on existing ASP, we estimate every USD1 change impacts earnings by below 2%. We conservatively assumed ASP of USD20/1,000 pieces in our earnings model.

3. The group highlight that its exports to the US is continuing to show improvement which currently accounts for 28%-30% of its geographical sales mix. As an indication, TOPGLOV has seen its volume sales from the US market raising 20% YoY to account for 15% in 9MFY24 compared to pre-pandemic average of 20%-30%.

Penang launches incentives to attract chip design firms, engineers

KUALA LUMPUR (Sept 28): The Penang government on Saturday launched an incentive programme to attract chip design firms and engineers to the Bayan Lepas Industrial Park and designated surrounding area.

The ‘Penang Silicon Design @5km+’ zone will provide annual subsidies worth up to RM2 million over three years, according to a statement from Invest Penang. The incentives will be available to both local and foreign integrated circuit (IC) design firms based in Malaysia.

“As Penang continues to attract more strategic investors, there is a need to establish conducive facilities that can accommodate high-value activities in Penang,” said Penang Chief Minister Chow Kon Yeow.


Penang is home to some of the largest global electrical and electronics companies, including semiconductor giants Intel and Infineon Technologies, as well as major electronics manufacturers such as medical device maker B Braun and power tool company Bosch.

The state also already hosts 28 local and foreign companies related to IC design. To lure more investments, Penang had also previously launched the IC Design and Digital Park and Chip Design Academy, both in May.

Penang has committed RM60 million to propel the latest initiative forward, and the state government is asking for a matching grant of RM60 million from the federal government, Invest Penang said.

The incentives include up to full subsidies for rent, utilities, and parking at state-owned properties, as well as for the use of certain equipment and tools at shared incubation spaces and stakeholder facilities.

To ensure the success of the Penang Silicon Design @5km+, the initiative is governed by an executive council. An advisory panel, consisting of industry representatives, academia and government agencies, will advise and provide recommendations to the council.

By the end of 2024, Prime Minister Datuk Seri Anwar Ibrahim is expected to officiate state-owned GBS TechSpace, a 36,000 sq ft facility designed to accommodate up to eight IC design companies and at least 300 IC design engineers.

“At the very heart of our digital economy growth are the chips that power digital technologies,” underscoring the importance of the semiconductor and IC design industry, said Digital Minister Gobind Singh Deo. “We must take concrete steps to maintain our mark in this sphere

"In view of the Honourable High Court's findings of the breaches by the defendant of Section 317A of the Capital Markets and Services Act 2007, Section 213 and Section 218 of the Companies Act 2016, the company shall consult its solicitors on the next course of action in relation to lodging complaints to the SC and to SSM respectively," it said.

Hartalega and two of its subsidiaries, Hartalega Sdn Bhd and Mun Health Product (India) Pvt Ltd, filed the civil suit against Danaraj in Dec 30, 2020, alleging that he set up a competing business using Mun Health Product's resources during his tenure with Hartalega.

According to Hartalega's 2019 annual report, Danaraj, held the position of executive director from July 4, 2011 until July 1, 2020.

He was in charge of the subsidiaries in China and India, where he was also an equity partner.

HIAPTEK result in actual was boosted by unrealize forex gain RM 145m, which if without these gain will only record small profit only. Take note these unrealize forex gain is till end July which USD is still holding strong above RM 4.70.

Eastern steel currency gain may reverse to loss as USD have tumbling from RM 4.70 to RM 4.12 now

KUALA LUMPUR: Singapore-based Equalbase yesterday held a groundbreaking ceremony for its RM220 million Valdor II multi-storey warehouse in Penang.

Equalbase specialises in the development and management of modern, sustainable industrial logistics assets

More and more industries set up in Penang, more non domestic water consumption ahead.

Upcoming budget will kivk start Penang LRT and Penang Perak water transfer mega project

More importantly is promising outlook, both in 2025 and 2026 when major competitor suffers 50% and 100% tax levy given Msia glove maker ample room to hike ASP and increase current loss making depress 35% plant utilization rate for next 2 year forward.

PBA earning is NOT static as water demand in Penang is expect to increase from current 890MLD in 2024,
Projections from an independent water study completed in 2021 indicate that Penang’s water demand may be driven by socioeconomic factors to increase by 78.1% (672 MLD) and reach 1,532 MLD by 2030.

The more water sold, the higher profit generated

If YTLP A1 data center can invest RM 1 to get RM 5 rental return, Dunno how to calculate ROE now, ROA, what is PE? is it logic ? It seem like scam often seen in facebook promising super profit return above 500%

NVIDIA‬ CEO Jensen Huang sells $713M worth of company stock, so good invest 1 can get 5 rental income ? sound too good to be true, right? then, why Jensen sell nvidia a share
https://www.youtube.com/watch?v=5ZGODnJiP54

PBA already increasing dividend payment yearly from 1.75sen in 2019 to 3.5sen in 2023 when open share price trading below RM 1.00.

It is expected to double up dividend payment in line with improve profitability

The total investment RM 1.1 billion to build new pipeline, built new water treatment plant, built new pipe connecting dam to water treatment plant are all will be capitalized as new assets to PBA without affect PBA profitability in quarter result. These is because new investment assets is capex which is new assets in reporting Q result. It is NOT opex, it is NOT opoerating expense cost that will offset profit

Punck niaga, gamuda and KPS already dispose their water treatment with handsome profit to Air Selangor

PBAPP is prioritizing the completion of all 8 projects in its Water Supply Contingency Plan 2030 (WCP 2030) on time. As at September 2024, PBAPP has successfully completed 2 projects: the 10 MLD DAF module at Bukit Panchor and Package 12A of the Sungai Dua WTP. The 3rd, 4th and 5th WCP 2030 projects are the 13.0km x 1.8m pipeline in Seberang Perai, the 3.9km pipeline on Penang Island and the new EMD WTP respectively. PBAPP is keeping the WCP 2030 goal in sight and working to stay on schedule

All in, PBA is to invets as much RM 1.1 billion to complete above project by 2030 funded mainly by last year non domestic hike in 2023 and this year domestic water traffic hike in 2024 more upcoming hike when next 3 cycle reach on 2026 for non domestic and 2027 for domestic water traffic

In bursa, only 2 water treatment stock listed in bursa. PBA and Ranhill.

PBA is 69% control by Penang gov, of course need take care of domestic water user as show by PBA given subsidy RM 110m as subsidy at shareholder expense, but, in turn of profitability, PBA still deliver awesome profit and give dividend

On the other hand, Ranhill SAJ, johor water operator, is 20% control by Johor gov and 80% control by listed Ranhill utilities should be more profit oriented, without given any subsidy, but, in turn of profitability, Ranhill cann't deliver good profit at all.

https://www.nst.com.my/news/nation/2024/09/1109446/rains-boost-penang-dams-waters-remain-below-safe-levels

Take note, before Data Center maiden profit start to kick in after Q2 2025, YTLp future profit for next 2-3 quarter will slump down significantly due to

1. Major profit contributor, Power seraya profit margin decease due to expire super low locked in 2 year feed gas end.
2. Major profit contributor, Power seraya profit exchange to RM decease by 8% due to weaken in SGD
3. Major profit contributor, Power seraya wholesale energy price is at 2 year lowest level due to ample supply or lower demand, resulted smaller profit margin in wholesale market
4. Jordan shale power plant and Indonesia power plant profit are denominated in USD, therefore translation will erode as much -14% in reporting RM earning
5. Wessex water also will report lower profit in Rm due to weaken in pound by -7%
6. YTL communication project in sabah at risk if investigation wrongdoing in IbestariNet

Above are all YTLP exiting profit division, which collectively will report much lower profit in next 2 or 3 quarter, before maiden A1 data center earning start to kick in after Q2 2025

Agreed. If minimum wage pass, many EMS and semiconductor industries will suffer as they can't pass cost through due to fixed orderbook price

Construction and properties sector also suffer, increase project cost and hike properties selling price is inevitable which will result low demand

For glove manufacture, situation is bit different due to policy anti-China glove product, a massive hike of 50% tax in 2025 and 100% hike in 2026 will give huge room for Malaysia to capitalize with huge ASP hike forward and increase volume loaded and higher plant utilization.

In additional, crude oil slump resulted cheaper raw material nitrile butadiene will give higher profit margin forward

Very strange indeed for those so call master keep raise target price, citing so call massive profit coming and yet keep ignoring factual that YTL major earning contributor is facing numerous headwind ahead, such as YTL power seraya earlier 2 year extreme super low lock in feed gas price which allow super profit margin for last 2 year have ended soon and factual that wholesale energy price have slump to 2 year lowest at around sgd 80 now + SGD exchange have tumbling to 2.5 year lowest level, which based on exchange alone eroding as much as 8% profit margin forward.

https://www.home.emcsg.com/publications

Singapore wholesale energy price in Q3 average range (80-120) vs Q2 (100-200).

From the chart, Wholesale energy price in Q3 is much lower energy price recorded in if compared to Q2

file:///C:/Users/Ng%20Chai%20Heng/Downloads/Public%20Daily%20Trading%20Report%2026092024%20(1).pdf

file:///C:/Users/Ng%20Chai%20Heng/Downloads/Public%20Daily%20Trading%20Report%2007062024.pdf

Take note, current Malaysia glove main threat is competition from China which force Malaysia glove ,anmaufacture to halt ASP hike and decrease plant utilization rate to 35%.

Therefore, once US Tax enforce 50% on China glove in next year and 100% tax next on 2026, Malaysia glove maker will regain back glove market share in US

Foreign worker wage if increase, glove maker can easily adopt cost pass through as there is BIG room for ASP hike to UP begin next year to compete China glove after 50% tax hike and following year 100% tax hike for China glove

In additional, cost production will also decrease due to tumbling crude oil, a main raw material for nitrile butadiene and energy cost, offset wages increase

added more kossan at 1.88

Based on The Office of the United States Trade Representative (USTR) announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation of the People's Republic of China's (PRC) Acts, Aside Medical Gloves. Increase rate to 50 percent in 2025 and 100 percent in 2026.

Another glove manufacture product, facemask also impose tax increament. Face Masks. Increase rate to 25 percent in 2025 and 50 percent in 2026

Based on The Office of the United States Trade Representative (USTR) announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation of the People's Republic of China's (PRC) Acts, Aside Medical Gloves. Increase rate to 50 percent in 2025 and 100 percent in 2026.

Another glove manufacture product, facemask also impose tax increament. Face Masks. Increase rate to 25 percent in 2025 and 50 percent in 2026.

With tumbling in crude oil price now, glove maker energy cost and major raw material cost, nitrile butadiene will decrease substantially. Both energy and raw material collectively form 20% and 30% respectively, input cost in glove manufacturing. Raw material cost is denominator in USD, offer natural hedge again weak USD

Incoming US traffic 50% surcharge on competitor China glove will prompt Msia hike ASP more than offset weakness in USD. This tariff move removes the underutilization of glove makers with a very high margin. Profits are coming back

With tumbling in crude oil price now, glove maker energy cost and major raw material cost, nitrile butadiene will decrease substantially. Both energy and raw material collectively form 20% and 30% respectively, input cost in glove manufacturing. Raw material cost is denominator in USD, offer natural hedge again weak USD

Incoming US traffic 50% surcharge on competitor China glove will prompt Msia hike ASP more than offset weakness in USD. This tariff move removes the underutilization of glove makers with a very high margin. Profits are coming back.

This tariff move removes the underutilization of glove makers with a very high margin. Profits are coming back.

A lot of oversea stockpile previous accumulate during pandemic time have depleted or expire as glove only have shelf life of 3 year, therefore, upon reach expiry, oversea buyer have to dispose off and restart placement order to glove manufacture for new batch of glove, volume load will increase exponentially

The impact on USD weakness is mitigated by fact that 40% of glove manufacture cost are also denominated in USD.

The remain negative impact on USD weakness can easily offset entirely by increase glove ASP which have big room of hike in 2025 by 20% from current US$19-21/1K pcs to US$25.50/1K pcs by 2025 to match Chinese glove and further 40% hike ASP potential US$34/1K pcs by 2026 match Chinese glove.

Glove profitability in USD= ASP hike + globve volume sold - (feedcost in USD)

Remark: The impact on USD weakness is NOT only affect Msia glove manufacture, but also affect Thai and China glove manufacture.

USD weakness by 12.5% in RM
USD weakness by 10.9% in Thai bath
USD weakness by 3.5% in Chinese Yuan

Therefore, all top 3 top global glove maker will collectively demand ASP hike to offset USD weakness

The impact on USD weakness is mitigated by fact that 40% of glove manufacture cost are also denominated in USD.

The remain negative impact on USD weakness can easily offset entirely by increase glove ASP which have big room of hike in 2025 by 20% from current US$19-21/1K pcs to US$25.50/1K pcs by 2025 to match Chinese glove and further 40% hike ASP potential US$34/1K pcs by 2026 match Chinese glove.

Glove profitability in USD= ASP hike + globve volume sold - (feedcost in USD)

Remark: The impact on USD weakness is NOT only affect Msia glove manufacture, but also affect Thai and China glove manufacture.

USD weakness by 12.5% in RM
USD weakness by 10.9% in Thai bath
USD weakness by 3.5% in Chinese Yuan

Therefore, all top 3 top global glove maker will collectively demand ASP hike to offset USD weakness

Both republican and democrats party are practicing anti-China policy. It will only intensify these critical policy in future to further limit reliance on China on medical supplies and eventually US self-sufficient in medical equipment

'Public Health Is a National Security Issue'

The U.S. government announced a sharp increase in tariffs on Chinese surgical gloves, raising rates to 50% for 2025 and 100% for 2026F.

The final modification imposes a much steeper tariff, which will significantly increase Chinese average selling prices (ASPs) to US$25.50/1K pcs by 2025 and US$34/1K pcs by 2026, from the current ASP of US$17/1K pcs. Given that Malaysian manufacturers' blended ASPs of US$19-21/1K pcs currently, Chinese ASPs are expected to exceed those of Malaysian producers by 21%-34% as early as next year. Hence, the reversal of the current price gap between Chinese and Malaysian gloves would enhance the competitive position of Malaysian players.


Remark: Kossan export about 45-50% of its glove to US market

The U.S. government announced a sharp increase in tariffs on Chinese surgical gloves, raising rates to 50% for 2025 and 100% for 2026F.

The final modification imposes a much steeper tariff, which will significantly increase Chinese average selling prices (ASPs) to US$25.50/1K pcs by 2025 and US$34/1K pcs by 2026, from the current ASP of US$17/1K pcs. Given that Malaysian manufacturers' blended ASPs of US$19-21/1K pcs currently, Chinese ASPs are expected to exceed those of Malaysian producers by 21%-34% as early as next year. Hence, the reversal of the current price gap between Chinese and Malaysian gloves would enhance the competitive position of Malaysian players.


Remark: Topglove export about 15% of its glove to US marke

bought supermax at 83.5sen

bought topglove at 98.5sen

bought kossan at 1.85-1.86

sold balance last batch myeg at 90sen

Disappointed with Major shareholders keep manipulating myeg share

Cut at 89-89.5sen.

added more PBA at 2.50-2.54

FULL Gurney Bay Project detail update Phase 1 & 2. Coastal Grove, Beach, Water Gardens & Drive Wharf
https://www.youtube.com/watch?v=M0JDmgb-QMs

locked profit, sold at 5.38-5.40

added last at 91.5sen to average down holding cost

Sustain water hike rate for next 3 year has allow PBA profitability surge multifold to earn RM 200m annually or EPS = 60sen, in order to meet upcoming capex RM 1.1 billion on staggering till 2028 to built more water treatment plant and laying new pipeline

Take nore, PBA next new water traffic review for non dosmetic is due on 2026 follow by subsequent
domestic water traffic rate hike 2027. The next new water traffic on 2026 and 2027 will continue ensure PBA profitability sustain higher to meet any shortfall or new project forward before 2030 for new Perak - Penang water transfer materialise

With the commissioning of Package 12A, we have effectively increased Penang’s overall maximum water treatment capacity by 114 MLD (million litres per day), from 1,612 MLD to 1,726 MLD," said Pathmanathan. "With increased treatment capacity in hand, PBAPP will now focus on upgrading Penang’s water distribution network [or pipeline network] to deliver more treated water to our customers."

It is carrying out this through the implementation of the three major pipeline projects, comprising a 13km pipeline project in Seberang Perai, from the Sungai Dua plant to Butterworth (RM128 million), a 3.9km pipeline on Penang island, from Macallum area to the Bukit Dumbar Reservoir and Pumping Station Complex (RM44 million), and the Sungai Perai River-Crossing Pipeline Project in Seberang Perai (RM17 million).

KUALA LUMPUR (Sept 20): PBA Holdings Bhd (KL:PBA) said the group is undertaking three major pipeline projects in Penang, scheduled for completion in 2025 or 2026 at a total cost of RM189 million.

These pipelines will allow the group's subsidiary and Penang's water supply operator, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), to pump more water at higher pressures from the Sungai Dua water treatment plant, said PBA Holdings CEO Datuk K Pathmanathan