More international hotel, service apartment in Penang..... More non-domestic big water user, charge at higher traffic rate are waiting to contribute more profit to PBA

MARRIOTT International Inc. today marks a significant milestone with the grand opening of the Penang Marriott Complex, marking its 50th property in the country.



Located along Gurney Drive, this landmark development is the first in Malaysia to house three Marriott Bonvoy brands under one roof namely Penang Marriott Hotel, Marriott Executive Apartments Penang, and Marriott Residences Penang.

With 99speedmart listing and continue downward performance for both Genting and GENM, next upcoming bursa index review on 30 largest biggest capitalization may exclude both GENM and Genting soon. These will significantly impact on Genting and GENM performance in future as many fund will adjust their portfolio to selloff Genting and GENM

PBA have neither business demand risk nor market share competion as water
consumption is on uptrend and PBA is operate under monopoly.

The shift higher ratio between nondometic to domestic ratio in water consumption implying not only water consumption is increase but also imply higher water charge rate in nondometic category such as semiconductor industry, Hotel and mall, tourist arrivals increae hotels occupancy, will offer higher profitability forward

MCEMENT major input cost fot manufactue cement is coal.

Import coal price is in USD. Selling finished priduct, cement is in RM.

USD have weaken by 9% since Jun from RM 4.72 to RM 4.33 now. The lower feedcost via currency weakness alone will boost Mcement profit significantly as cement selling price remain elevated unchanged.

Upcoming MRT3, Penang LRT, Johor BRT, HSR, booming Data center and China +1 semiconductor industry all will increase cement demand forward.

Intel will not halt operations in Penang
https://www.themalaysianinsight.com/s/487415

https://www.humanresourcesonline.net/penang-unveils-stem-talent-blueprint-to-build-long-term-talent-pipeline-and-align-with-nimp-2030-and-nss

GEORGE TOWN: Most of Penang-based electrical and electronic (E&E) manufacturing companies are optimistic about their second-half year performance for this year.

https://www.thestar.com.my/business/business-news/2024/09/09/ee-firms-confident-about-2h24-performance

bought mcemnt at 4.89-4.90

bought vstec at 2.88-2.90

bought dsonic at 45-45.5sen

On a separate matter, he said work has also commenced on the project to lay a new 1.35m river-crossing pipeline at Sungai Perai, near the Ampang Jajar bridge.

“This pipeline is scheduled for commissioning in January 2026.

“When completed, this Sungai Perai river-crossing pipeline will allow PBAPP to pump higher volumes of treated water from the Sungai Dua WTP to Penang island.

This measure will address sporadic water shortage issues in some high ground and end-of-line neighbourhoods in the Barat Daya and Timur Laut districts.

He added that this pipeline is being laid to supply more water to about 120,000 water consumers on Penang island, including the factories in the Bayan Lepas free trade zone.

It will also enhance the stability of water supply services in the western, south-western and southern parts of the island

PETALING JAYA: Penang’s water treatment capacity will go up to 114 million litres per day (MLD) from this month.

The follows the commissioning of Package 12A at the Sungai Dua water treatment plant (WTP) on Saturday, Bernama reported

Penang Water Supply Corporation (PBAPP) CEO K Pathmanathan said Package 12A refers to a new water treatment module within the premises of the Sungai Dua WTP, built rapidly in response to higher post-pandemic water demand.

He said the Sungai Dua WTP is Penang’s largest and most important water treatment plant, supplying treated water to 465,000 consumers daily.

Sungai Dua treatment plant to further boost Penang’s water supply
FMT Reporters
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08 Sep 2024, 05:14 PM
Penang Water Supply Corporation CEO K Pathmanathan says Penang’s water treatment capacity will go up to 114 million litres per day from this month

MACC Investigation Division senior director Datuk Seri Hishamuddin Hashim confirmed that the case was being investigated under Section 18 of the MACC Act 2009.

Section 18 of the MACC Act 2009 deals with any person providing documents such as receipts or invoices that are false or contains fake details with the intention to deceive the principle's office

If YTL comm have such poor track record, Malaysia gov should halt YTL com recent award telco project worth RM 980m in Sabah immediately till MACC outcome.

MACC highlighted that the tender for 1BestariNet service was originally planned for 15 years involving a contract sum of RM4.07 billion, but was shortened to seven years and six months without any reduction in contract value.

And while the services provided did not achieve the objectives set, MACC said YTL Comms had made several claims against the Education Ministry that require a more thorough investigation to confirm.

MACC said the investigation has so far found that the government has to bear claims worth RM176 million from YTL Comms but the claim information has yet to be confirmed by the government, other than telecommunication substation rental losses for a period of five years from 2019 that is estimated at RM10.8 million......

What!!! YTL complete RM 4 billion contract in 7 year instead of plan 15 year, so efficient meh🤔? After so call completed ibestarnet project ahead of time, still want to claim rental loss from its telco towers..... What a greedy con😠😡

MACC highlighted that the tender for 1BestariNet service was originally planned for 15 years involving a contract sum of RM4.07 billion, but was shortened to seven years and six months without any reduction in contract value.

And while the services provided did not achieve the objectives set, MACC said YTL Comms had made several claims against the Education Ministry that require a more thorough investigation to confirm.

MACC said the investigation has so far found that the government has to bear claims worth RM176 million from YTL Comms but the claim information has yet to be confirmed by the government, other than telecommunication substation rental losses for a period of five years from 2019 that is estimated at RM10.8 million......

What!!! YTL complete RM 4 billion contract in 7 year instead of plan 15 year, so efficient meh🤔? After so call completed ibestarnet project ahead of time, still want to claim rental loss from its telco towers..... What a greedy con😠😡

YTL comm maiden award project to build Sabah telco infra from gov may at risk. If gov decide to temporary halt the sabah project pending outcome from MACC investigation, it will another setback for YTL

Just relax, utility stock is recession proof business, more so after traffic rate hike, PBA water concession have now become super lucrative utilities stock. Lets PBA continue record another super EPS next Q, then market should start realize that PBA quarter EPS>15sen is indeed sustainable, prompting PBA share to gradually reflect fair valuation 10x

YTL crony is good frog, can jump to close to any politician as long as in power. Previously, M is in powerr, secure first IPP, M and Muhy in power, secure Ibestarinet. So, when A in power secure Sabah telco infra project.

But, now MACC investigate missing cash, false claim in previous job like Ibestarinet, if evidence valid, A definitely will distance from frog, may even wihtdraw frog qualification for gov work like upcoming HSR erc

YTL Telco tower is for commercial, but enjoy school free electricity and land. In additional, Telco tower also emit strong radiation sacrifice student health

Current singapore power capacity is 11.8 GW, actual peak demand is 7.8GW, balance is buffer spare capacity. The upcoming 2 GW from Indonesia and now additional 1.4GW should more than meet singapore power growth demand. Higher supply will affect singapore wholesale pool price which will lower existing singapore power profitability forward

Remark: Msia red tape have prolong export issue, none concrete agreements yet

JAKARTA: Singapore will issue conditional approvals to import 1.4 gigawatts (GW) of electricity from two power projects in Indonesia, in addition to a previously agreed 2 GW of imports, senior minister Teo Chee Hean said in Indonesia on Thursday.

The conditional approval for the 2GW of imports will be upgraded to conditional licenses this year, the minister told participants at the Indonesia International Sustainability Forum in Jakarta. - Reuters

https://www.thestar.com.my/business/business-news/2024/09/05/singapore-to-import-more-low-carbon-power-from-indonesia-minister-says

UWC YTLPOWR CEB GENETEC D&O GTRONIC MRCB 技术点评! 分享如何可以逃过大跌？
https://www.youtube.com/watch?v=RZUfEZSuM-o

Also take note, despite PBA has become super lucrative utilities stock, it cash holding will not increase in tandem as most of the profit earn will channel back to build more water treatment plant, additional water tunnel pipe to connect dam to water treatment plant, replace old water pipe to reduce non revenue water, which in turn will increase PBA capacity to supply more treated water to meet increase Penang water demand. Its win-win cycle, but at expense to shareholder as dividend payout ratio will decrease from historical around 30% to maybe 10%. However, the absolute dividend will definitely higher as EPS is expanded multifold higher

MizieXX
Just relax, utility stock is recession proof business, more so after traffic rate hike, PBA water concession have now become super lucrative utilities stock. As PBA just post first maiden Q result after rate hike effect, knee jerk effect have sent PBA stock hitting historical highest level, following later now by volatile taking profit activities.

As we all known traffic rate hike impact will valid for next 3 year, therefore, PBA coming EPS will be sustain above EPS >15sen for cumulative over next 2 year before due another review on non domestic water rate in 2026 and following by another due on domestic water rate in 2027. Thus, keeping for long term and enjoy eventual fair PE valuation 10x for target price RM 6 is viable investment strategy now. In the meantime of waiting, just continue enjoy dividend as passive income which should getting higher following PBA improve profitability.

Aside, increase profit margin due to water traffic hike > 180%. Increasing water sold as Penang water demand continue growth also will contribute higher revenue forward which Penang gov project water demand will increase from current 870MLD to 1350 MLD by 2030 or about yearly 6% yearly increment water growth.

Take note, the proportion between domestic and non-domestic water consumption have gradually change from 62% domestic : 38% non domestic to current ratio 57% domestic : 43% non domestic will also increase PBA profit margin forward as non domestic water consumption in Penang is spur by increasing foreign investment in manufacturing, semiconduction, hotel and mall which their water consumption is >35m3 at higher water traffic rate RM 2.10/m3.

He always to claim he recommend supermax stock at low price for first time recommendation to claim multimillion profit margin, but he never claims he keep continue recommend supermax on the way up for second time, third time……at different high-level price for late comer with reset new even higher target price. Likewise in YTL

He himself always ignore what he Philosophy: TA come first, FA second

Technical chart is very bearish

YTL frog project under RM 4 billion 1 BestariNet despite claim successfully, but, in actual never successful implement now in any school

The problem now is general public believe Muhyiddin, opposition PN leader is corrupted politician. Muhyiddin awarded 1bestarinet to YTL even through open tender but during phase of implantation, a lot of work didn't complete or partial complete and a lot of fund missing and YTL was also given FOC to set up 4g communication tower in school compound for YTL Yes mobile commercial use. A lot of school are complaining at that time and yet education Ministry give endorsement that 1bestariNet successful completed

Still in consolidation mode to solidify recent share gain. PBA should regain more momentum to breakout RM 3 decisively before heading to next Q result

RM3 billion missing from the 1BestariNet project, claims Former Minister Maszlee

https://www.bharian.com.my/berita/nasional/2024/09/1294225/sprm-siasat-projek-1bestarinet-apa-yang-kita-tahu

https://www.freemalaysiatoday.com/category/bahasa/tempatan/2021/09/06/muhyiddin-sangat-marah-desak-peletakan-jawatan-saya-kerana-kontrak-ytl-kata-maszlee/

Generally, if river run across different state, only downstream state will
complaint upstream state draw water upstream water which can affect downstream river water level.

NOT, the opposite like kedah which is upstream river complaint downstream in Penang.

These kedah MB is indeed a real clown to twist fact. So, no point Penang Chief argues to clown mindset people, lets settled in court, let judge rule based on law

Instead of Let these clown MB satisfy his ego hero publicly, Penang Chief is asking Kedah to settle these unfounded water dispute in court as Penang view these is best way to stop dispute through law

No matter what happen to market that prompt retail investor profit taking to enjoy on recent PBA share price spike., PBA next coming Q result will still enjoy recurrent water traffic hike billing income that valid for 3 year.

Therefore these lucrative profitability, EPS > 15sen per quarter will continue for next 3 year,

No worry, let the dust settle in court few year later.

In Malaysia, water supply services are regulated at the Federal Government level. Federal regulation includes
the regulation of water rates that are set, approved and gazetted by the Federal Government. Individual states
and water supply operators (such as PBAPP) may not arbitrarily introduce new water rates.

Hence, for Malaysian water supply operators, new regulated water rates are the most important factors that
generate the biggest impact on financial performance, revenue and profitability

Penang water traffic rate hike indeed resulted water consumer paying average 180% more higher, increase PBA revenue translate direct bottom into profit.

Ok, noted.👌

MizieXX

Just for clarification, May water consumption is 105m3, according to new water traffic rate, the bill payable should be RM 132.35

bimonthly water: 105m3
monthly water: 52,5m3
0-20 = RM 0.62 x 20m3 = RM 12.4
20-35 = TM 1.17 x 15m3 = RM 17.55
>35m3 = RM 2.07 x 17.5m3 = RM 36.225

Total monthly bill = RM 66.175
Bimonthly bill = RM 132.35

Kindly check whether May bill is correct or not?

🙏

Dear MizieXX
Many thanks for your kindness to provide real penang water bill hike detail. Thanks again

Dear mizieXX
Can do me favor, if convenient and time, kindly post your Penang water bill detail
1. bimonthly billing from jan-aug
2. total water consumption
3. totals amount payable

Water concession business model is safe heaven in time of market turbulence. It is without short of selling treated water business, PBA is task to increase as much possible treated water capacity to meet ever increasing Penang water demand growth from current 890 MLD to 1350 MLD by 2030. With water traffic hike average 180%-200% now, PBA water business have now becoming highly lucrative profit business. Strong cash generated will allow PBA to built more water treatment plant, replace old water pipe, reduce non revenue water which is viable win win business model by increase more capex now to increase further future profit

Chow was responding to Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor’s comments on Monday (Sept 2) that the state was preparing to take legal action against Penang to seek compensation for raw water usage.

Chow said if the matter was to go to court, there would be laws and international conventions regarding Riparian water rights (an internationally recognised system for allocating water among states or countries who possess land along the river’s path).

“The court has to decide on this but there are other international conventions on water sources involving more than one country or state,” he said.

Dear mizieXX
Can do me favor, if convenient and time, kindly post your Penang water bill detail
1. bimonthly billing from jan-aug
2. total water consumption
3. totals amount payable.

It normal for market to response to news as headline is Kedah seek Penang water compensation which indirect affect PBA share performance today. lets these unlogic news settle few day, lets legal process which need many year to dissolve these kind of state gov dispute

Religious based rulings party only can rely on natural resource to develop such as mining, forest logging, water, exploit century history territory hoping to regain Penang land back

Anwar went on to explain that the position of Penang as a state within Malaysia that is separate from Kedah has been clearly stated under Clause (2) Article 1 of the Federal Constitution.

It provides that the federal states consist of the state of Malaya are Johor, Kedah, Kelantan, Melaka, Negri Sembilan, Pahang, Perak, Perlis, Penang, Selangor, Terengganu, as well as Borneo states of Sabah and Sarawak.

"Clause (3) Article 71 of the Federal Constitution read with the Eighth Schedule of the Federal Constitution has guaranteed the position of the state constitution, including Penang.

"The existing provisions of the Federal Constitution are the result of agreements between the British government and the Malay Rulers to form the federation, which was the Federation of Malaya Agreements dated Jan 21,1948 (1948 Agreement) and Aug 5,1957.

"Penang is a sovereign state in Malaysia and its position is always guaranteed and has been provided in the Federal Constitution, which is the main law of the federation," he said.

Anwar emphasised that he did not want to prolong the issue which had become a debate of sorts and was leaving it to the Attorney-General to take appropriate action