https://www.therakyatpost.com/news/2023/06/02/kedah-mb-says-penang-is-part-of-kedah-but-is-he-right/

Since it become court case, let the judge decide to backfire these Kedah MB which also concurrent also seek Penang belong to kedah also

Greater Ulu Muda water-catchment area was a shared enclave between both states. Muda River, which courses through the catchment area, serves as a boundary between Kedah and Penang, and Penang draws raw water from the river at its own costs.

“The Muda River does not belong to Kedah. The raw water from the river does not accidentally flow into Penang’s Sungai Dua Water Treatment Plant.

In the case of Penang, raw water is extracted from the Muda River by way of pumping it at the Lahar Tiang Pumping Station into a 14km canal which flows either into the Mengkuang dam (funded by the federal government) for storage or directly to the Sungai Dua treatment plant

Some 80% of Penang’s raw water comes from Sungai Muda. Kedah and Perlis also rely on the same river for water, accounting for 96% and 70% of their water supply, respectively. The river serves a combined population of 4.2 million people across the three states.

In conclusion, If kedah seek compensation from penang, Penang also have right to seek compensation from kedah as both state and Perlis are draw water from same river which run across all 3 states.

https://www.thestar.com.my/news/nation/2024/09/02/kedah-to-take-penang-to-court-for-compensation-on-raw-water-usage-says-mb

vs.

https://www.nst.com.my/news/nation/2024/09/1100290/penang-cm-ready-court-showdown-kedah-over-water-dispute

Water traffic will have to increase on every 3 year to review higher forward, especially higher hike is needed when Perak-Penang water transfer start supply additional water to Penang after 2030

Why need to issue sukuk like RANHILL, bear huge interest expense?

PBA is very well managed company in the past as evidently by its unbroken yearly dividend and increase cash position even need to give RM110m subsidy to domestic water user. It is very efficient in managing water asset, cash flows especially after granted water hike now.

PBA will best use of these strong cash flow to meet new water treatment plant and pipe replacement capex forward.

Also take note, Penang government will start payback PBA advance loan RM88m given to state goivermennt begin next year 2025. This represents the amount due from the State Government of Penang of RM88.76 million, discounted using a rate of 4.642% per annum and carried at amortised cost. The said amount of RM88.76 million is receivable by eight equal instalments of RM10 million per year, followed by one final instalment of RM8.76 million commencing from 2025

Decision on Water traffic revision is control by Fed government agency SPAN jurisdiction instead of state
government.

PH government exercise right decisions to allow all state government increases water traffic but at different traffic rate in accord to state government proposal. Penang state proposal is second lowest among all state as Penang gov still willing to subsidy to help domestic user albeit at lower subsidy now.

However, as Penang water consumption is expect to surge 50% by 2030, Penang need a lot of cash to built more water treatment plant and reduce leakage through old pipe replacement, decrease nom revenue water. Therefore, PBA need to increase higher water rate in next 3 year review to boost up ot profitability and increase cash flow to meet these capex which in turn increases water sold later, paving win win cycle for business growth to meet futures demand

Rush hour to grab PBA before too late as public free float share is very limited (Penang gov control 69%, and balance 30 largest shareholder control another 15% )

PBA, proxy to Penang development such as properties development, LRT, Airport expansion + semiconductor hub + silicon island, Andaman island etc

We’re pleased to announce the Medicines and Healthcare products Regulatory Agency (MHRA) has confirmed acceptance of the UK Marketing Authorisation Application (MAA) for hydromethylthionine mesylate (HMTM), a 4 mg oral tablet for the treatment of mild cognitive impairment (MCI-AD) and mild to moderate Alzheimer’s disease.

This application is being reviewed within the scope of the 150-day accelerated assessment procedure, which is used by MHRA to accelerate the availability of medicines for patients in the UK.

We look forward to sharing further updates as the application progresses.

https://taurx.com/news-insights/mhra-confirms-acceptance-of-uk-marketing-authorisation-application-for-hydromethylthionine-mesylate-hmtm

I only can said PBA is now in very rare stock condition, possess both very high and predictable return, deserve fair valuation PE 10x or fair target price RM 6 due to sustain water traffic hike for next 3 year and yet in very low risk concession business model and as Penang solely GLC stock listed in Bursa, the only Penang proxy listed stock

Toward breaking RM 3.00 resistance level

Of course PBA have big room to growth to reflect fair valuation for its Penang monopoly concessions business model.

However, as PBA only first record maiden EPS due to domestic wa0rter traffic hike. Therefore, PAB need to record at least another consecutively similar EPS, allow market to roll forward annual EPS and affirm market that PBA earning is indeed sustainable for next 3 year.

The fair 10x valuation is justifiable for utilities stock after take into account PBA small cap and low liquidity than other bigger utilities stock like TENAGA, YTLP, Malakroff etc

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).

Thanks to PH government decisive making to revive water operator. The above domestic rate will last for next 3 year before next cycle review in 2027. In the interim, non domestic rate will also to subject review in 2026 after first review hike average 50% last year.

For now though, optimism is running high, even among sell-side strategists. Nomura Holdings Inc this week upgraded equities in both Indonesia and Malaysia citing solid macro fundamentals, while HSBC Holdings plc noted that Indonesian stocks had started commanding a bigger heft in the portfolios of Asian funds.

The ringgit and rupiah are among August’s top three gainers against the dollar in a basket of more than 20 developing-nation currencies. Fed chair Jerome Powell said this month that the time had come to cut its key policy rate, affirming expectations that US officials will begin lowering borrowing costs from September.

Exchange-rate watchers see likely further weakness in the greenback giving emerging-market currencies more wind in their sails. With foreign currency holdings at banks in Malaysia and Indonesia near a record according to data compiled by Bloomberg, more support is seen coming when exporters convert their dollars into local currencie

Remark: HIBISCUS derive USD profit, but, it's major earning contributor is from Msia operation, which paying in RM cost. Furthermore, crude oil have decrease from USD 89 to current USD 75-78, therefore, hibiscus next earning will record lower profit.

Sslee have more than RM 5m in portfolio, peg 4- 5% dividend yield stock will convincing give him RM 200k dividends income

But can balance portfolio with certain proportion for high dividend stock and stock high growth EPS

Good for Sslee to earn passive dividend income more than RM200k pa. JTIASA dividends yields is far better than insas or call warrant.

Recent strength in RM will give great relief for fertiliser import cost in USD

The key is strong free cash flow and upcoming big increase in CPO production volume + higher CPO selling price. Dividend is additional bonus for your time to stay invested

Agreed to compared PBT fot clearer insight.

With CPO stand above RM 4000 and production volume increase more than 30%, next Q result certainly will deliver higher EPS and enjoy dividend yield around 6%

The Group expects the average crude palm oil price to be supported and positively influenced by
the stable soybean oil prices and anticipated increase in demand of CPO due to higher biodiesel
blending mandate in Indonesia

Strong cash flow, enable jtiasa to declare high dividend

The effective tax rate for the Group is higher than the statutory tax rate of 24%. This is mainly due to certain expenses not allowable for tax deduction.

Gold price will continue uptrend ahead of US interest cut. Weak USD also make Tomei import gold cost CHEAPER, boosting its RM denominated profit margin ahead.

Naim associate Dayang is top earning contributor

Attempt to re challenge previous high RM 2.61 again. It need to convincing breakout and stand above these level to solidify uptrend line

Jaya tiasa in fact is already major shareholders of Rimbuan sawit, control 10% stake

Payoff debt and acquire more estate either from Rimbuan sawit or subur tiasa as both sister company failed to deliver due to lack of economic of scale

Jaya tiasa debt level is at RM 230m, and cash level is RM 270m. Nett off is net cash position.

It is better for Jaya tiasa to clear all debt instead of keep borrowing at interest expense is -RM 14m while interest income from cash holding only RM 6.7m. These is because interest rate cost from debt is higher than cash interest rate.

Management may think to keep cash for more flexibility if need to acquire new assets, but at least jaya tiasa opt to pay half debt from its cash to save net interest cost.

Jaya tiasa CPO production also increases more than 30% in latest month

CPO hit above RM 4000

Consolidation mode before upsurge. Uptrend remain till heading to next Q result.

As water traffic is hike and maintain till next 3 year, current EPS earnings is sustainable.

Non domestic water traffic is due to review by 2026, and domestic water traffic next review is 2027

https://theedgemalaysia.com/node/724658

The Light City & Art Gallery Centre - Penang
https://www.youtube.com/watch?v=o2BvGY6uyWw

Take note, Johor have highest water traffic rate, yet, only reap small profit due to inefficient operation, high cost operation and high interest expense with lot of debt burden.

Ranhill market cap is RM 1712m vs. PBA market cap only RM 900m

If some shareholder holding water related stock like YTLP (wessex water) or Ranhill (johor water) swap some of their capital to PBA is good enough to send PBA to fair valuation 10x

Just rest well, let market force play its role on whether wan to push limit up today or restrain force to wait accumulate more share from retail shareholder

Perhaps can ask Dragon328 favor, he is good on writing and tabulate earning estimation

Nobody have crystal ball to predict when can PBA reach fair price based on fair valuation 10x, but we do have calculator and formula on water traffic rate to project PBA forward EPS with reasonable estimation

Estimate public free float share is around 50m after stripping out top 30 largest shareholder. Based on yesterday and today volume, estimate 40% exchange hand among other minority shareholders, limited free float available for those fund willing to increase their stake holding before value re rate to PE 10x

Take note PBA domestic water traffic is 2rnd lowest among all state. PBA still heavily subsidies domestic water user albeit at lower amount RM 56m compared to RM 110m before traffic adjustment. PBA have further give away free 10m3 to all domestic user for 6 months, give rise to total subsidy RM 56m + additional subsidy RM 11m.

Therefore, PBA have huge room for water traffic hike in next 3 year review and increase profit later can specially aim for targeted poor household rebate instead of to all domestic user in future.

More water traffic hike is necessary as PBA need to built more water treatment plant increase water suuply from current 890MLD to maximum level 1350 MLD by 2030.

Thereafter, additional water supply need to source from Perak-Penang water transfer after 2030, water traffic will have to hike again in line with external source of water from newly built water treatment from Perak

Many thanks

mizieXX, thanks for your previous highlight that your Penang water bill was actually start reflect new water traffic hike rate in May instead of Mar,

Finally breakout previous high level at RM 2.61. Next heading to RM 3.00 first. Uptrend confirms

High profitability also allow PBA to give targeted subsidy to poor household through rebate

High profitability is to ensure strong cash flow to fund capex to built more water treatment plant, replace old water pipe, reduce leakage for non revenue water, which in turn increase profit. It win-win cycle

banking stock surge - money making business model
PBA - money making concession business model with every 3 year traffic adjustment (first implement by current gov)