https://www.argusmedia.com/en/news/2221115-malaysias-lockdown-to-have-limited-impact-on-bunkering

Even market is bad but I think techfast can maintain the performance and doing better on coming qr.

nice, starting to uptrend.

No argument, i like how people follow comment to buy stock. Stock decision should by own not follow what people. lol

Moreover, the company had also proposed a fund-raising activity of rights issue with free warrants, which could potentially hook TECFAST up with 115.3 million in ringgit worth of cash. Should the company achieve the said amount of capital raising, the management also had plans to acquire their own bunker vessels and expand into the Liquefied Natural Gas (LNG) bunkering space – which is important to reduce carbon footprint to adhere to the new IMO 2020 regulation.


“We are also planning to acquire our own bunker vessels to further enhance our profit margins. As part of our growth strategies, we are eyeing expansion into international ports such as in Singapore and Hong Kong.“On top of that, we endeavour to expand into the liquefied natural gas (LNG) bunkering space, after establishing a market for traditional oil-based fuels.

There is great potential to be reaped as new vessels opt for dual-fuelled engines that can be powered by LNG to mitigate carbon footprint, ” Tan said.

To conclude, one should really look behind what is happening behind the “booming” of a sector. Oil bunkering will remain relevant longer than the temporary boom of BDI prices – just refer to 2007 – 2009!


$TECFAST(0084.MY)

$FREIGHT(7210.MY)

$FREIGHT-WA(7210WA.MY)

$MAYBULK(5077.MY)

To recap, the total contract value is close to 2.2 billion in ringgit, hence the 20 million is just – in my opinion, a “test run” for the company. There is still huge potential for TECFAST to tap in.


“In March this year, Techfast completed a private placement exercise, raising total proceeds of RM28.2mil, for the working capital needs of the group’s oil bunkering business as well as the acquisition of a 35% stake in CCK Petroleum Sdn Bhd, a fuel supplier with activities at major transiting ports in Malaysia and a wide clientele in the maritime industry.

With the acquisition, Tan said the group is able to strengthen its presence in the local bunkering industry.

There is also a profit guarantee of RM5mil per year from CCK Petroleum for a period of two years for financial year 2021 (FY21) and FY22. With the 35% stake, this translates to a net profit contribution of RM1.75mil per year to Techfast.”

As you could tell, TECFAST is serious in getting more profit for the company via its business venture to the oil bunkering line. The baseline of which TECFAST could at least receive a 1.75 million in ringgit in net profit despite only had 35% stakes – to me, is impressive. This had not factored in the 2.2 billion and 540 million in ringgit worth of contract the company had gotten on hand.

Should we chase after logistics or dry bulking companies now? Yes, you can do so. But as a value investor, I prefer something that is more subtle, or what we called “Hidden Champion” in nature to invest in. And this company had just ventured into the backbone business of all maritime activities, or sea-shipping activities as a layman term – the oil bunkering business.


“Executive director Vincent Tan Wye Chuan told StarBiz that this is a timely opportunity for the company to enter the oil bunkering sector on the back of renewed optimism due to worldwide rollouts of Covid-19 vaccination programmes.”“

As bunker services play a critical role in supporting oil and gas operations, Techfast is set to benefit from increased oil and gas activities, ” Tan noted.

From the statement given by the Executive Director of TECFAST (0084), we could simply tell that as the shipping activities as well as oil & gas activities recovers, oil bunkering would stand to benefit from it. The company had officially started to delivery 10,000 tonnes of Marine Gas Oil (MGO) to their client – Wise Marine on this month. The value of the delivery is approximately 20 million in ringgit.

From the surfacing of COVID-19 to date, we know that generally individual item prices had increased due to shortage of supply from previous reduction of manufacturing capacities. This would create an artificial demand for the short term and drive-up prices, or what we called “backlog orders”. But do you notice that no matter what items are being traded, you would need LOGISTICS?


Being a citizen in Malaysia, we can see that not all borders are reopened, and shipping still proves to be rather difficult. This had drove the demand for forwarding, shipping, dry bulking and so forth to increase significantly. Take Baltic Dry Index as an example, it has already gone up in price for 314.88% to date.

*This article was based on the excerpt of an article from The Star. I have only added my opinion on it.


Link to article: https://www.thestar.com.my/business/business-news/2021/04/26/techfast-aims-big-in-oil-trading-and-bunkering


With the gradual recovery of global trading activities, most people are focused on how manufacturers or wholesaler could attain abnormal profit. With that mentality, however, one might miss out on a huge investment opportunity.

https://www.investingnote.com/posts/2238563

作为一位投资者， 我们必须比一般大众更领先一步。 除了港口之外， 大量的海运活动的受益者是谁？ 答案是：
这些海运巨头的燃料供应商，船用瓦斯油。

最新的IMO 2020硫含量上限规定船只燃料中的硫含量从3.5％降低至0.5％，其燃料中大部分由低硫燃料油（LSFO）组成。 传统上，该行业一直在使用着肮脏，廉价，和对环境有害的非法石油。 现在，货船运营商有两个选择：

1. 以每吨约500美元的价格购买LSFO，这比高硫燃料油（HSFO）平均贵了60％-70％

2. 安装昂贵的排气管理系统

鉴于当前海上航运业的繁忙程度， 我相信这些货船没有空余时间来安装符合IMO硫上限的排气系统。 而更简单的解决方案是直接购买LSFO，轻松的实现0.5％的目标。

那么TECFAST拥有什么特别之处呢？ TECFAST最近宣布他们即将收购一家燃油公司的35.0％的股份。 管理层在苏伊士运河事件发生之前就冒险涉足这个领域，这让我感到非常惊讶。

除了这项收购活动以外， TECFAST的全资子公司还收到了新加坡行业巨头之一Wise Marine Pte的MGO供应协， 合同金额为22亿令吉。 该合同很可能
不会完全贡献在TECFAST的收入内，而可能被列为部分联营利润中。 从过去的记录上看，该行业的成本和利润业务模型的净利润率为2-3％。 现在，由于对LSFO的需求增加，价格差距已大大提升。

目前而言，LSFO将比含硫量高的石油更容易享受溢价。 我相信，据当前全球需求的增长，净利润率很容易增加到两倍（4％-6％）！

值得注意的是，在马来西亚交易所中， TECFAST的唯一对等同行是STRAITS。 在我看来，STRAITS目前没有巨额的合同； 与TECFAST相比后者拥有22亿令吉的合同， 在这种情况下，赢家是显而易见的。

我最近新发现的价值股 – TECFAST （0084）

如果要在股市中成功，一定要跟随着市场趋势。 在我脑海中永远都会牢记这一个问题， 下一个市场趋势是什么？ 根据我的观察， 。 由于运输板块的股票在近期内发生了大量购买的迹象。 由于超灵便型与巴拿马型货船的市场租率费率已大幅回升，MAYBULK等运输公司的收益可能会出现巨大的转变。

上一次发生类似情况是在2007至2009年之间， 当时的货船租率已突破顶峰； 现在​​加上最近苏伊士运河的堵船事件， 我相信对集装箱和干散货运输的需求会更进一步的飙升， 这将大大提高公司的收益！

简单来说， 电子与电气行业的海上运输活正在积极发展中。 我怀疑由于船只的供应紧张，运输费率可能会恢复到2007至2008高峰期的至少50％-60％。 客观地说， MAYBULK与TASCO的股价已经大幅上涨了，现在已经很难找到入场的好机会。

注：MAYBULK的价格走势。

注：TASCO的价格走势。

Depends what is your buying price lo. Nobody call you chase high.

Trapped is for those who chase high.
If you are long term value player, Will you still saying this ？
lol

This is the article source by the way

https://klse.i3investor.com/blogs/afsskylimit/2021-04-13-story-h1563303579-THIS_COMPANY_HAD_130_IN_SHARE_PRICE_WITHIN_3_MONTHS_HOW_FAR_CAN_IT_GO.jsp

Hence, PEB’s RTO case is almost, indefinitely in the bag. Based on the company proposed timeline, the company should have a proper signing of share sales agreement (“SSA”) latest by June. How does that affect us?

I had mentioned that PEB could potentially give a 100% or more in return, right? To achieve that, the company MUST complete the injection of assets by issuing new shares. The market is currently valuing this company with a cash of RM70.3 million ringgit on hand at a total market capitalization of RM 111.0 million ringgit. I bet you couldn’t find any deal as such in the market!

Everyone is waiting for the valuation and dilutive effect of reNIKOLA to be finalized. But let me ask you this – if an information is public, how are you going to benefit from it?

You simply can’t.

This is why, buying PEB now is a potential risky move; but at the same time you could build a position in the company before the market knows about it. Do bear in mind the 66% of the shares are in the new management’s hand. They could not dispose it without making a public announcement, and as you can see from the chart, the share price is consolidating. What does this mean?

It means, someone is collecting PEB’s shares quietly.

If you cannot beat them, simply join them. PEB is one of the rare case where there is still opportunity to double due to lack of knowledge by the general public on the company.

Now, it is up to you to decide.

Do you want to chase after the share price when it spiked a 30% - 50%, or would you like to allocate an acceptable amount of capital for a potential 100% return investment?


I will leave the final decision to you.

Why?

The newly injected “assets” are extremely valuable in my personal experience and based on market valuation in its peers. Upon completion of the RTO, PEB will be one of the largest solar renewable energy players in town. You heard me right – LARGEST SOLAR RENEWABLE ENERGY PLAYER.

The term “solar” and “renewable energy” is so hot in the market that, two newly listed companies in 2020 had transformed into multibaggers in a year of time. I do believe you know who are they, right?

Nevertheless, I must stress that PEB is different from the said solar companies. Imagine if the said solar companies are contractors, then PEB is the “developer & asset manager” in a property sense. In fact, PEB is the operator of solar farms that would be constructed by these companies.

Had you noticed that our country is going green?

It is not just “our country”, but the trend is on a global scale. Energy sector is transforming from the traditional coal fire electricity generation to renewable energy generation to reduce carbon emission to prevent further global warming. I like heat, but not in this way!

Factually, PEB currently had 3 in-operation solar photovoltaic plant on hand. The capacity of these plants is 5 MWp, 38 MWp and 45 MWp, respectively. How big is one MWp? An average household would consume approximately 20 kWh per day, and a 10 MWp solar power farm could translate into 14.9 GWh in power for household consumption.

In short, 1 kWh = 0.00000010 GWh. You can do the math.

reNIKOLA group of companies are having a total of 88 MWp of solar assets on hand and another huge solar farm of 330 MWp in capacity in the pipeline. Now do you see the potential of this company?

However, these assumptions are made on a successful RTO of PEB. Can it really be successful?

By no means I’m the seer in stock market. But rationally, the ultimate owners of reNIKOLA had purchased up to 66% of ownership in PEB with their cash. If you are the owner, would you let the deal fail?


I believe not.

In hindsight, you would not find anything interesting about the company itself as it is an empty shell where Bursa has categorized this company as “Cash Company”, and PEB had been tagged as a PN 16 company. To those who are new to the term, PN 16 is merely a grouping by Bursa for companies who do not have a core business or major revenue contributor after disposing their core business. PEB is one of the greatest examples of all.


Now, PEB is having a war chest of RM70.3 million ringgit in cash in the company, pending for potential expansion plans. But what’ so special about a company sitting with a pile of cash?

Nothing.

BUT! A huge but for this company is, PEB is undergoing a reverse takeover (“RTO”) exercise by reNIKOLA group of companies. I do not want to bore with the corporate structure of this company, but PEB is going to go big after the RTO.

What do you seek in investing in a company?



Is it Dividend? Capital Gain?



Or both?



Well, ultimately every single investor just wants to maximize their return at a level of risks that they are comfortable with. Most investors, however, are overly risk-adverse or risk-taking. It is extremely hard to strike a balance in between.



But if you are one of those risk-taking guys who are keen to aim for > 100% return, you had come to the right place. This company that I’m going to share with you is being underestimated by most investors – including mainstream medias. This undervalued gem is Pimpinan Ehsan Berhad (“PEB” or the “company”).

So many different opinion on this counter, Very good, It must be a well sharing counter,
Anyhow just read some quality article through and go through all the comment from above. I found out PEB is very good even there are different voice on the counter. Anyhow for future investing. My personal opinion for this counter is actually not and I had chip in a portion to PEB counter at early morning.

But overall still consider a long term safe stock ?