Perak penang water transfer have change from raw water to treated water. Therefore, PBA needless to built new water treatment plant to process raw water. These massive capex will alleviate PBA cash hoard forward. PBA only need to lay new pipeline to connect Perak water treatment plant to Penang mainland seberang prai, which free up existing PBA own water capacity to focus supply water to its island Penang.

With direct transfer treated water fro Perak instead of raw water, Penang water traffic will hike much more higher forward.

Penang has unveiled several crucial initiatives focused on strengthening the state's position as a global economic leader in three key sectors: trade, technology, and tourism.... More water needed....

Chow also revealed that the federal government has given the greenlight for the Kerian Integrated Green Industrial Park to supply surplus water from the park to Penang - - - - > source treated water fom Perak - - ->
higher Penang water traffic rate in next 3 year review

Momentum to breakout RM 1.00 :D)

heading to breakout RM 1.00 resistance level soon

It is matter of battle between oversea fund vs. local EPF/KWP

Compared between PBA and RANHILL, PBA strategy is more focus on capex increase water treatment plant capacity to increase treated water supply to meet ever increasing Penang water consumption. Many penang land are consider heritage area, therefore, limit opex on pipe replacement effort.

On the other hand, RANHILL strategy is more focus on opex to aggressively pipe replacement, incur very high cost to meet targeted non revenue water%.

Dragon328
I expect much higher revenue increase than RM 100m as Penang water consumption just surge new high recently, and higher water consumption is at higher traffic band category at RM 2.07 per m3 which is increase RM1.37 per m3 hike compared to lower band category 50sen per m3 hike.

Increase revenue through traffic hike is direct increase profit earning. The surge in profit allow higher capital to fund capex such as increase water treatment capacity, built new water treatment plant to meet increase water demand which is expect to leap up by another 30% by 2030. The surge in water demand in turn increase higher revenue to PBA. It's win win cycle to generate additional positive cash flow. Of course new and additional water treatment assets subject to annual depreciation review

Indonesia is available by these year 2024. Others on track to be ready by 2025 before Ztrade become mandatory for all export goods to china

Malaysia prepares to welcome Chinese Premier Li Qiang as countries mark 50 years of bilateral ties. MYEG’s Ztrade, which streamlines the export of goods to China and is slated for official launch in 2QFY24.It could mark commencement MYEG ZTrade cross border trade between China and Malaysia. This follows the agreement of the e-government service provider with China Customs’
wholly owned agency East Logistic-Link to jointly provide a full suite of cross-border trade facilitation services that include certificates of origin on the Zetrix blockchain platform

https://www.chinapress.com.my/20240502/%e5%80%aa%e5%8f%af%e6%95%8f%ef%bc%9a%e6%9c%9f%e5%be%85%e6%9d%8e%e5%bc%ba%e8%ae%bf%e9%a9%ac-%e5%ae%a3%e5%b8%83%e4%ba%88%e5%a4%a7%e9%a9%ac30%e5%a4%a9%e5%85%8d%e7%ad%be/

These additional RM 146.8 m pa due to domestic water traffic is to

1. Decrease water subsidy significantly
2. Opex - To cope higher operation cost such as pipe replacement
3. Capex - To fund expansion capacity on exiting water treatment capacity and to built new water treatment plant

Remark: The amount spend on Capex will NOT affect PBA profit margin, therefore, all water traffic hike will direct positive to bottom-line, increase profit margin directly. The profit earn then channel to fund capacity assets and built additional water treatment plant which will record as additional new assets to PBA.

Only amount spend on opex such as pipe replacement will affect PBA profit margin, the higher rate of old pipe replacement to new pipe translate directly to increase operation cost, therefore decrease profit margin from above water traffic hike

Based on PBA latest annual report, PBA bear subsidy RM 115.2m for Penang domestic water user. Management expect to decrease these subsidy significantly following 1 Feb water traffic hike.

There are total 593,255 domestic account and 461,350 consume < 35m3, while balance 131,905 consume > 35m3
Based on new water traffic,
1. domestic account water consumption < 35m3 charge 86sen, is 50sen hike per m3
Water bill increase 50sen x 35m3 = hike RM 17.5/account
Total domestic account 461,350 x RM 17.5 = RM 8.07 million/month

2. domestic account water consumption > 35m3 charge RM 2.07, is RM 1.39 hike per m3
Water bill increase 50sen x first 35m3 = hike RM 17.5/account
Water bill increase RM 1.39 x (35m3 - 45m3)= hike RM 13.9/account
Total domestic account 131,905 x (RM 17.6 + RM 13.9) = RM 4.15 million/month

In total water traffic hike impact RM 8.07 + RM 4.15 = RM 12.22 million per month or Quarterly hike RM 36.7 million or Hike RM 146.8m pa

Remark: To arrive above calculation，
1. assumption is make for maximum consumption up to 35m3 for those consume categori <35m3, by assume all consume 35m3
2. assumption is made for minimum consumption above 35m3 for those consume categori > 35m3 by assume all consume additional 10m3
3. assumption is made to exclude domestic bulk meter whom stay in high rise apartment in which bulk meter water traffic hike flat rate at 35sen m3 have increase significantly to charge flat rate RM 1.73 m3 (its massive hike RM 1.38 per m3)

Myeg new service, e testing, JPJ computerised test (KPP) Part 1
https://www.myeg.com.my/jpj-test-site

Myeg should make bursa announcement on full commercial launch of e testing to commence from April 2024 instead of announce it through latest annual report release today (annual report part 3, page 49)

the Group commenced the pilot phase of the MYEG Drive Testing System (“ MYDTS”) and following its successful implementation, JPJ subsequently gave the green light for the full commercial launch of automated driving tests, or e-Testing, to commence from April 2024. - - - - myeg latest annual report

sold at 75-75.5sen

cut at 45sen

sold at 1.42-1.43

added more mye at 91sen

added more at 1.88-1.98

sold at 2.40-2.42

sold at 68.5sen

sold at 1.07

Hahaha, if true, hong Kong fund indeed may emerge as myeg substantial shareholder later as through myeg, Hong Kong fund can capitalise on myeg huge 250m zetrix ownership value :D)

However, if PBA do aggressively pipe replacement, higher cost will incur to offset partly upcoming windfall profit.

According to feedback, the water charges of many families have increased as much as 100% and some even claim to be more than 150 %

Based on last Q result, PBA water revenue is RM 94.8m, therefore, estimate PBA future water revenue will surge at least 1 fold higher and most of revenue hike translate direct to bottomline after deduct tax

Under the new rates, the first 20 cubic meters is at 62 sen (up 182 per cent from 22 sen), from 20 cubic metres to 35 cubic metres the rate is at RM1.17 (up 154 per cent from 46 sen) and for the third band of more than 35 cubic metres, the rate is RM2.07 (up 204 per cent from 68 sen).

Penang water bill show PBA will reap minimum additional RM 10 hike for those minimum water usage and much more higher for those use more water.

Penang consumer’s water bill, which he said used to be RM7.70 at every bill cycle has now gone up to RM17.36 under the new rates with the same water usage

For a household that used to pay around RM47 every bi-monthly, the bill went up to RM126 under the new rates for around the same water usage

bought back myeg at 86.5sen

second casino is coming + HSR +special economic zone

bought ekovest at 45sen

added more a t 1.02-1.03

cut at 1.02, swap to UEMS

Cost reduce from RM 110 bil to RM 70bil will boots up commercial viability of these mega project.

https://www.nst.com.my/business/corporate/2024/04/1039838/rm70bil-high-speed-bullet-train-project-bttv

be patient, HSR is coming soon

The Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) project might tally up to about RM70 billion, a notable decrease of around 30 to 35 percent from the previously reported RM110 billion, according to market insiders

https://www.nst.com.my/business/corporate/2024/04/1039838/rm70bil-high-speed-bullet-train-project-bttv

The Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) project might tally up to about RM70 billion, a notable decrease of around 30 to 35 percent from the previously reported RM110 billion, according to market insiders

https://www.nst.com.my/business/corporate/2024/04/1039838/rm70bil-high-speed-bullet-train-project-bttv

Added more at 99sen

Added more at 72sen

bought iwcity at 74sen

bought UEMS at 1.04

bought 1.32-1.33

bought LBS at 67sen. Expect at least dividend 2.8sen to be announced soon

With water traffic hike, concession water have become lucrative business model.

cut balance at 79sen

cut at 78.5sen

added more ranhill at 1.04-1.05

bought PBA at 1.81