Recap!
To add on to this good news, Kobay is Venturing into Advance Data Server Business by acquiring 65% share in Leapcode Sdn. Bhd. Leapcode presently holds an applications service provider classlicense-ASP(C) issued by Suruhanjaya Kommunikasi dan Multimedia Malaysia on 27 May 2024. Its principal activity is to assemble, maintain and repair engineering equipment inclusive advance data server.

RATIONALE AND PROSPECT OF THE PROPOSED ACQUISITION
Currently, Kobay’s subsidiary, Kobay Industries Sdn. Bhd is providing high level assembly services of advance data servers for its customers (Data Centers) and the Proposed Acquisition is synergistic to the Group’s operation for venture into support business for Data Servers in Data Centers currently mushrooming all over Malaysia especially in Penang, Selangor & Johor!

Why Tech & DC Stock Kobay?

Subsequently, the fit-out process follows, during which newly built data centres are fitted with essential components like server racks, power distribution units, cooling systems, and security measures.

This is the phase where tech players like Kobay with exposure to server and server-related equipment will start to benefit.

“If we were to put a timeframe on this, our estimate would be the period of quarter four calendar year 2024 to first half of calendar year 2025, which is roughly the completion time for data centre construction jobs that started earlier this year,” said Kenanga.

Malaysian Outsourced Semiconductor Assembly and Test services (OSAT) and Electronic Manufacturing Services (EMS) players may be relatively new to the server-related business, but they are well-versed in servicing multinational corporations (MNCs).

With a strong track record of capabilities and reliable deliveries, they are well positioned to excel in this expanding sector.

https://focusmalaysia.my/kenanga-tech-players-are-next-to-ride-the-data-centre-boom/#google_vignette

More upside for Kobay is coming as technology sectors to benefit from the data centre catalyst and the artificial intelligence (AI) theme.
https://www.nst.com.my/business/corporate/2024/08/1090370/bursa-malaysia-closes-higher-midday-buying-interest-telcos-and

Morning Friends & Gentlemen!
Uptrend is still intact! Bargain Hunting in Progress! Let's join Mr. Koay in accumulating on weakness!
Recommendation: If Operator wants to sell cheap Don't Miss! Accumulate or Buyback on current weakness and we wait for another Breakout as Tech & DC stock Kobay is a Rebound King!

Morning Friends & Gentlemen!
Don't worry too much about short sellers. With not much selling pressure, they will have to cover their short positions sooner or later! Analysts Recommends a Strong Buy For Muhibbah! Just Hold & Accumulate on current Weakness as Infrastructure & Construction is a defensive stock. Breakout will happen as Muhibah is still profitable, once the Budget is announced with goodies for the Construction & Infrastructure sector of which Muhibah is a prime beneficiary!

According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news.
https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/

Morning Friends & Gentlemen! I rest my case for Engtex! Have been busy counting profit so didn't post much lately. For those who benefited from my recommendation. Please have a look at my other recommendations like Kobay, Muhibah & even CTOS now selling at a discount!

Contrarian
Must thank laulau for continuously promoting Engtex.

DividendGuy67

For the record, you must be a good trader to win with WB. You need to buy at very good times and sell at good times. And you cannot be inaccurate, because small inaccuracies can mean a difference between profit or loss. And this accuracy is hard work.

Personally, I avoid because it's a 3 foot hurdle for me - it means I really have to make a serious attempt and at this juncture in my life, I no longer look for 3 foot hurdles but low 1 feet hurdle where I can just walk over it and win.

So, I always trade the mother stocks now and so far this buy and sell stock works extremely well for me. It helps I have a sizeable account, so, I don't need the leverage and it helps it's not a zero sum game in stocks. Last year, I made over a dozen trades (buy, sell, closed) and it's 100% win rate. Open positions around 85% win rate on paper (and the losses small). To me, these are 1 foot hurdle. The certainty of winning is what attracts me. I want to know that before I enter the trade, that I have. very high odds to come out winning. And so, I avoid warrants trading. Just sharing.

For example, one of my worst trades is MAGNUM - I published it in my blog. I chased at 1.16. After I chased, price went up and then fell and I sit on unrealized loss for some time. But because it is mother stock, there is no warrant theta decay. And eventually, market runs up, and now, it's a profit. And I took some partial profit at 1.29. Likely this will be another win. If you trade sound fundamental stocks with good fundamentals, even if your timing is inaccurate, you have very good odds of winning. And wins is what attracts me when trying to compound.

7 hours ago


jaynetan

My trades return 90 % derived from Warrants.
Need to understand
What are warrants
How they functions
The intrinsic value n the underlying shares

5 hours ago


TheContrarian

It's so strange some people are upset because I bought Engtex-WB at 41 sen.

3 hours ago


Rambutan9

Diviguy67,you made very good statements which are food for thought.Thanks

For those who wants to talk about warrants. Here the correct place to post. Thks
https://klse.i3investor.com/web/stock/overview/5056wb

Friends & Gentlemen, Rather than wait here at Myeg and incurs opportunity cost as KWAP/EPF's still taking profit from Retailers for pension revision, accumulate Muhibbah now with positive momentum as Breakout's imminent with infrastructure & Construction theme play! After the Dividend & Dividend Reinvestment Plan we can revisit Myeg later?

Morning Friends & Gentlemen!
With a Bullish Bursa & Dow Jones at Record High, Analysts Recommends a Strong Buy For Muhibbah! Accumulate on any Weakness & let's break the small block at RM1.01!

According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news.
https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/

The Block @0.995 already broken! Once Muhibbah exits Penny Stock Status! More Institutional & Foreign Funds will be Buy! More upside coming!

The Edge

KUALA LUMPUR (July 17): Hong Leong Investment Bank (HLIB) Research maintained its 'overweight' rating of the construction sector, and said domestic contract awards jumped 41% year-on-year to RM20.7 billion in the first half of the year (1H2024), driven by data centre (DC) awards.

In a sector update on Wednesday, the research house foresees potential for awards acceleration in 2H2024, driven by long delayed big-ticket infrastructure projects.

It said positive sector sentiment could also come from the finalisation of the Johor-Singapore Special Economic Zone and Budget 2025, as well as structural DC and Johor reinvigoration themes.
https://theedgemalaysia.com/node/719288

Morning Friends & Gentlemen! Breakout coming soon once the small block at 0.995 is broken with a Bullish Bursa! Soft target 1.25 with TP 1.34! Accumulate on any weakness!
https://www.cnbc.com/2024/07/15/stock-market-today-live-updates.html

The Case For Muhibbah! Exiting Penny Stock Status Soon!

Accumulate on any Weakness! Once Muhibbah exits Penny Stock Status, Muhibbah will be re-rated with more Foreign & Institutional Fund Buyers, soft target 1.25 with TP 1.34!

1Q24 results met expectations Bloomberg: MUHI
● Muhibbah delivered a 1Q24 core net profit of RM5.9m (vs. RM0.5m in 1Q22) which was Market cap: US$153.3m within expectations at 12%/11% of our/Bloomberg consensus’s full-year net profits RM721.2m
We expect earnings momentum to pick up in the coming quarters as it progressively Average daily turnover: US$0.50m recognises its RM2bn orderbook (as at May 24).
● The key 1Q24 highlight was associate profit contribution of RM13.4m (+32% yoy) Current shares o/s 727.0m coming largely from its Cambodia airport concession. This is commendable as 1Q23 Free float: 73.3% had included the Siem Reap airport concession that was surrendered back to the Cambodian government in Oct 23. Its 1Q24 passenger arrivals for the Phnom Penh airport concession (PP) and Silhanoukville airport rose 23% yoy to 1.2m, with China passengers making up 22% of the total in 1Q24 (vs. 15% in 1Q23).
● Its construction division posted an RM8.7m pretax profit in 1Q24 (vs. RM5m in 1Q23). Pretax profit for its crane business in 1Q24 rose 30% yoy to RM19m. Of its RM2bn orderbook, RM1.3bn is from construction and RM0.7bn from cranes. Favelle Favco (FF) announced contract wins of RM39m in May 24, which is a combination of tower and offshore cranes. In late-May 24, FF also announced it has entered into an agreement with an Australian developer to build two 14,000 sqm logistic warehouses on its 46,840 sqm land in Sydney, which should boost recurring income once completed in FY26F.
Light at the end of the tunnel for PP scenario?
● We had highlighted in our 2 May report (link) that its PP will likely see a favourable outcome, even though a new international airport for Phnom Penh, known as Techo International Airport, located in Kandal, is currently under construction and scheduled to start operations in 1H25F, according to Cambodia’s State Secretariat of Civil Aviation (SSCA). We believe Techo International Airport will replace the current Phnom Penh International Airport that is operated by Muhibbah.
● Muhibbah said negotiations with the authorities are progressing well and it will likely receive compensation for the loss of its existing operations of PP (likely at BV) and be engaged to operate the new airport at Kandal. This is because the new airport is being built by a JV between SSCA and the Overseas Cambodia Investment Corporation Price (OCIC), both of whom do not have the expertise to run an airport. An article in the Khmer Absolute Times published in Mar 24 also stated that a favourable result for all parties is expected, based on the government’s win-win policy, but details are sparse presently. Reiterate Add and TP of RM1.34
● We like Muhibbah as a proxy for a recovery in tourist arrivals with its Cambodian airport concessions, while its marine expertise and Petronas fabrication licence should enable it to clinch more Petronas jobs, in our view. Key downside risks are patchy execution track record and higher raw material costs. Re-rating catalysts include better earnings delivery and stronger tourist arrivals in Cambodia.

Refer link below on what most IBs issuing CWs think of Myeg. Better follow KWAP/EPF to take profit based on strength before the music ends?
https://klse.i3investor.com/web/stock/warrant/0138

As long as EPF/KWAP keeps on selling, IBs will support with monthly issue of Call Warrants to keep Myeg price low Also the Share dividend & Share reinvestment plan will dilute shareholder's value. Don't forget about the additional Corporation Tax that Myeg may have to pay for Zetrix token profit? Better buy Iris as got positive momentum and comes back after price correction to a more comfortable value?

keepup

every day drop only. lol

Wise move. Buy Iris, Kobay or Engtex got positive momentum. We will revisit Myeg later?

Good news! Buy 4 get 3 Bonus Shares!
Bursa Approves Engtex's Bonus Issue!
NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : BONUS ISSUES | https://www.klsescreener.com/v2/announcements/view/7197035

Engtex is Bullish today!
Accumulate on weakness! And let's wait for the next Water & DC Play, once Ranhill Utilities announce more water pipes supply contracts with Engtex for Singapore-Johor Economic Zone & DC Hubs? Association with YTL Power & Ranhill is always a good thing? Also don't forget the RM4 billion allocation by Government for Perak to Penang Water Transfer Project. You need Pipes! Pipes for water distribution and Engtek can supply all as:
#Engtex is the only maker of large-diameter MS pipes of up to three metres in Malaysia, used in upstream water supply projects.
#It is one of only two producers of ductile iron (DI) pipes locally (the other being Penang-based YLI holdings Bhd). Highly corrosion- resistant, DI pipes are widely used in water distribution.

Good idea!
CarolineTeoh

I wait below Rm1 ...safer

As long as EPF & KWAP keeps on selling supported by IBs who keeps on issuing Call Warrants on a monthly basis, Myeg would not move much. Also we need to see how Myeg deals with it's tax obligations for Zetrix token profit? Income tax may review Myeg's Income declaration for penalties or raise additional tax which will affect its bottom line?
If free, take a look at Iris, Kobay for Tech & DC play or Engtek for Water & DC play as associated with Ranhill & YTL power play. We can always come back later to Myeg after the dividend & share reinvestment plan?

Yes! Follow EPF/KWAP to Sell Myeg on News! Buy on Rumours!. For those who already took profit? Remember Pestech Aerotrain contract termination? Government is good at backtracking as Pestech is currently back on Aerotrain Project in JV with IJM. Iris substantial shareholder Dato' Robin's father is TSVT who enjoys good relationship & lobby with present Govt & Royalty. Iris could also comeback into Niise Project through a JV with the successful bidder as Immigration is still using Iris Border Security Management Equipment & Systems. Arbitration with Government on quantum of compensation for Iris on Niise termination is also ongoing? Otherwise why the long delay to announce the successful bidder?
https://www.freemalaysiatoday.com/category/nation/2024/01/19/no-govt-interference-says-loke-as-pestech-back-in-aerotrain-project/

Companies in building material sector deliver improved earnings
Wednesday, 19 Jun 2024

Kenanga Research said stocks under its coverage had either beat or met forecasts.

PETALING JAYA: Companies operating in the building material sector reported a significant improvement in earnings in the recently concluded first quarter 2024 (1Q24) reporting season, according to Kenanga Research.

The research house pointed out that stocks under its coverage had either beat or met forecasts.

“Engtex Group Bhd and United U-Li Corp Bhd met our expectations as they shook off margin suppression from high-cost inventories.”

"Meanwhile, it said water pipe makers are poised for exciting times ahead on the revival of water projects."
https://www.thestar.com.my/business/business-news/2024/06/19/companies-in-building-material-sector-deliver-improved-earningsl

More pipes are needed for Perak to Penang Water Transfer Project!
https://www.malaymail.com/news/malaysia/2024/05/30/perak-water-project-penang-ready-with-reservoir-sites-pipes-says-state-infrastructure-chairman/137220

Good news for Engtex with RM4 Billion allocation by Government for water distribution from Sungei Perak to Penang!

Why Engtex?
#Engtex is the only maker of large-diameter MS pipes of up to three metres in Malaysia, used in upstream water supply projects.
#It is one of only two producers of ductile iron (DI) pipes locally (the other being Penang-based YLI holdings Bhd). Highly corrosion- resistant, DI pipes are widely used in water distribution.
https://www.nst.com.my/news/nation/2024/06/1063914/pm-govt-approve-funding-water-distribution-project-bukit-merah-dam

Very strategic decision for those already taken profit. Rather than being stuck here incurring unnecessary Opportunity Cost. Free up your capital and make your money works by accumulating Kobay, Iris for Tech & DC play or even Engtex for Water & DC play on any weakness? After reaping good returns, you can't go wrong by coming back later like "Mr. Wong" or EPF?

Jun 12
Engtek is now 23% undervalued as currently trading at only RM1.07.
#The fair value is estimated to be RM1.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only.
#Revenue has grown by 11% over the last 3 years with profit for 5 consecutive Qtrs with latest Qtr. 1 earning 9.4 million.
#Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 237% in the next 2 years.

Many Sharks who shorted Engtek to flush out weak holders & day traders, wants to buyback your shares cheap! Accumulate Engtek on any weakness as:

Forecast Annual Revenue Growth
Data for Engtex are as follow:

#Earnings vs Savings Rate: ENGTEX's forecast earnings growth (38.7% per year) is above the savings rate (3.6%).
#Earnings vs Market: ENGTEX's earnings (38.7% per year) are forecast to grow faster than the MY market (12.3% per year).
#High Growth Earnings: ENGTEX's earnings are expected to grow significantly over the next 3 years.
#Revenue vs Market: ENGTEX's revenue (6.6% per year) is forecast to grow faster than the MY market (6.1% per year)

I also like Kenanga's Buy Call with TP of 1.41. At current price there is a 34 sen upside with proposed 3 for 4 Bonus Issue?

Engtex Group - Proposed 3-for-4 Bonus Issue
Source : KENANGA, Price Call : BUY, Price Target : 1.41
Last Price : 1.07, Upside/Downside : +0.34(31.78%)

Yes! The worst is over as Engtek has completed disposal of Treasury shares yesterday.
Recommendation.
Accumulate on any weakness. I like Icon 888's TP, first TP already achieved next should be within the range of 1.30~1.50?

Icon 888

1st target- rm1.20
2nd target- rm1.30
Final target- rm1.50
Heng ong Huat

Engtex Benefits from Revival of Water Infrastructure and Water Cooling needs of Data Centers.
https://www.klsescreener.com/v2/news/view/1340101

Why Engtex?
#Engtex is the only maker of large-diameter MS pipes of up to three metres in Malaysia, used in upstream water supply projects.
#It is one of only two producers of ductile iron (DI) pipes locally (the other being Penang-based YLI holdings Bhd). Highly corrosion- resistant, DI pipes are widely used in water distribution.
#Ranhill Utilities under YTL Power will need Engtek's large diameter MS pipes & ductile iron (DI) pipes for its upstream water supply projects & ductile iron (DI) pipes widely used in water distribution to give YTL Power access to exclusive Johor water operations allowing it to capitalise on prospects from the Johor-Singapore Special Economic Zone and potential demand from Johor’s data centre hubs.
#Year to date, Engtex has secured new contract wins of RM151 million from the Sungai Rasau Treatment plant's main contractors i.e. Gamuda Bhd (for Package 1) and Taliworks Corporation Bhd (for Package 2 and 3).
https://www.nst.com.my/business/2022/11/848187/revival-water-infrastructure-projects-boon-engtex

#YTL Power acquiring control of Ranhill Utilities.
It noted that Ranhill Utilities would give YTL Power access to exclusive Johor water operations allowing it to capitalise on prospects from the Johor-Singapore Special Economic Zone and potential demand from Johor’s data centre hubs. Additionally, it said the synergistic expertise in water operations could drive further efficiency of Ranhill Utilities’ Johor water business.
https://themalaysianreserve.com/2024/06/04/ytl-power-acquiring-control-of-ranhill-utilities/

YTL Subsidiary SIPP Power takeover Ranhill Utilities.
TAKE-OVERS & MERGERS (PARAGRAPH/RULE 9.19 (47A)) | https://www.klsescreener.com/v2/announcements/view/7170643

Looks good to me. Hint Data Centers needs lots of water for cooling data strorage facillities? YTL subsidiary SIPP Power takeover Ranhill Utilities.
Engtex can supply all the piping needs for all Data Centers in Malaysia and the World.

Even YTL Power sees the need to acquire Ranhill Utilities for water cooling needs of Data Centers?
https://www.thestar.com.my/business/business-news/2024/05/30/ytl-powers-ranhill-acquisition-a-positive

https://www.vertiv.com/en-asia/solutions/learn-about/liquid-cooling-options-for-data-centers/

Those who already made money from Vstecs today, can also grab some cheap Iris as time for another Breakout? Only small roadblock at 0.45, immediate target at 0.50 followed by 0.60 should not be an issue in a Bullish Market?

Can we break 4.20 today?

Very strategic decision, rather than being stuck here incurring unnecessary Opportunity Cost. Free up your capital and make your money works by accumulating hot stock Iris, Vstecs or even Asiaply. After reaping good returns, you can't go wrong by coming back later like "Mr. Wong" or EPF?

@VincentTang

Sell all MYEG to buy Iris. Iris will hit RM1.5 by end of 2024.

Don't miss! Better grab your tickets! 3rd wave really coming!

KUALA LUMPUR (June 10): UOB Kay Hian has initiated coverage on VSTECS Bhd (KL:VSTECS) with a “buy” rating at RM3.83 and target price of RM5.02, and said the stock is reaping the fruit of its rapid expansion.

In a note on Monday, the research house said that in addition to the organic growth from the device refreshment cycle, VSTECS is also enjoying low-hanging fruits from the burgeoning data centre expansion and cloud migration in Malaysia.

UOB KayHian said that VSTECS, as Starlink’s authorised distributor, will provide internet connectivity to Tier 2, 3 and 4 cities, rural areas, and East Malaysia using Starlink’s low earth orbit (LEO) satellites.

It said this initiative supports the government’s goal of 100% internet penetration.
https://theedgemalaysia.com/node/714774

Yes! Bull Eyes! Buy while still cheap! Third wave 🌊 is coming! Even the Eagle has landed!

@ken
Cables, PC, storage.. etc, datacentre consumable.. will be purchased locally. Vstec just hit on bull eye ..

Bursa now very bullish & Foreign Funds are here. If operators are willing to sell cheap just accumulate on weakness. The benefit outweighs the risk since retail only holds 20%, balance are held by substantial shareholders including Institutions, EPF & KWAP will support Govt's RE initiatives as mentioned above.
Recap.
#Kobay has been making profit for 3 consecutive Qtrs., with Profit of RM5.84M on a Turnover of RM87.79M for Qtr. 3.
#Earnings vs Savings Rate: KOBAY's forecast earnings growth (60.4% per year) is above the savings rate (3.6%).
#Earnings vs Market:
KOBAY's earnings (60.4% per year) are forecast to grow faster than the MY market (12.1% per year).
#High Growth Earnings:
KOBAY's earnings are expected to grow significantly over the next 3 years.
#The 2 new projects, namely EMS and solar frame should be operational and generating income from next quarter onwards.
#There is a relatively healthy outlooks for aerospace and O&G divisions.
#Solar segment. The group is ready for its venture into the manufacturing of aluminium frames for solar panels for renewable energy-related business. #Kobay has already completed the renovation and installation of the new 15 -acre plant dedicated for renewable energy-related business. The prior delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB. The anodizing line has been set up and currently the factory is ready to run for production.
#EMS. Recall that Kobay invested RM20m in Innospec, a new SMT services subsidiary, to provide end-to-end complete solution for ADS. Kobay has already been qualified by customers in 2QFY23 and is currently awaiting orders to be released to kick start production. At this juncture, the group just secured 2 customers with revenue guidance of about RM1m monthly. Despite the minimal contribution Kobay’s main aim is to utilize the readily available SMT line and achieve breakeven.
#Advance data server. Demand has improved as bitcoin price has more than doubled from breakeven price of USD27k to 67k as of June 2024.
#Property and pharmaceutical. Property development is expected to deliver positive performance on the back of the completion of its maiden Langkawi project.
#Pharmaceutical shall continue to work on widening its product range, along with cost control efforts to improve profitability and market competitiveness. The division is looking to expand its business in nutrition/supplement that could garner higher margin.

The third wave is coming!
RECOMMENDATION:
Don't wait anymore, you will never get your lowest price. Collect VSTECS as much as possible on current weakness. Already reached bottom as the trend of higher lows will lead to higher highs indicating that an uptrend is occurring with overall mark-up in the value of Vstecs by next Qtr once income from AWS, Starlink, Broadcom VMWare and Nvidia Ai Computer & GPU sales are recognised. Once correction phase is over, Vstecs will rise even higher for the 3rd wave for the next Limit Up! with buying from Market & Foreign Funds! TP RM4~5 is still on track!
ps if you compare the price chart of Ytlpower with Vstecs, you will see a similar trend of future price performance.

Dimensional Fund already started accumulating Kobay since 31 March 2024. Very sure other foreign funds are also buying hence the first Lu! Accumulate before cheap scripts which are limited are exhausted?

Dimensional Fund Advisors LP
0.2%
Shares 633,322
Value RM1.4m
Change % 2.5%
Portfolio % 0%
Last Reported 31 Mar 24

VSTECS appoints SNS Network as authorised Starlink equipment retailer in Malaysia

By Surin Murugiah / theedgemalaysia.com
https://theedgemalaysia.com/node/714026

Both are Technology oriented stock which is the current theme play. All you need is somebody like ,'Roaring Kitty' to spark off the third wave!.
Vstecs's diverse end customer base reduces risk of over reliance on a single large customer, giving it stability throughout economic cycles while adding strength to its solid financial performance.

According to UOB Kay Hian (UOBKH) Research, Vstecs will benefit from a diverse end customer base encompassing the retail market, financial, telecommunications, public sector, energy, and other sectors, with the top five clients contributing about only 25% of its revenue.
https://www.thestar.com.my/business/business-news/2024/04/01/vstecs-earnings-to-be-supported-by-its-diverse-customer-base#openShareModal

GameStop has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at anyone who seeks video game and tech products.

Roaring Kitty is back in action! Will Vstecs be another Gamestop? Accumulate while still cheap!
https://www.cnbc.com/2024/06/03/roaring-kitty-post-seems-to-show-trader-held-onto-giant-gamestop-stake-after-mondays-rally.html

Recommendation:
Kobay shares are tightly held by substantial shareholders. Since weak holders and retailers already flushed out and most substantial shareholder's holding cost is RM4 or above? not many are willing to sell at current price. Operators will go for the lower hanging fruit of RM3 before next TP4~4.50. The next run-up will be fast & furious! Accumulate on any weakness and we wait for the Breakout to the next wave of buy by market & Foreign Funds such as Dimensional Fund etc.
https://theedgemalaysia.com/node/713761

According to RHB Retail Research, Kobay Technology is poised for a technical breakout after rebounding off the 21-day SMA line and closing at the immediate resistance of MYR2.26 last week.

RHB Retail Research in a note on May 31 said, if a breakout happens above that mark, the counter will trend higher towards the 52-week high of MYR2.58, followed by MYR3 level.

Update on Hong Leong Research Analysis.
"Kobay Technology
Staying agile"
#For the solar segment, the delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB.
#Ccontribution from EMS will increase, Kobay’s main aim is to utilize the readily available SMT and achieve breakeven. With US's planned tariff increase to 50% on China made E&E products, Kobay's EMS & SMT plant utilisation will increase accordingly as overseas customers will outsource more contract manufacturing to Kobay for E&E products that requires EMS & SMT.
#As for Advance Data Server(ADS), Kobay management mentioned that demand will kick in stronger once bitcoin price recovers to the level of USD26k-27k. (Note: Bitcoin is now trading at USD67k as of 1 June, 2024)

#Property development and pharmaceutical are expected to continue delivering positive performances.
#Hong Leong Research BUY call with TP of RM4.00.

Recap.
#Kobay has been making profit for 3 consecutive Qtrs., with Profit of RM5.84M on a Turnover of RM87.79M for Qtr. 3.
#Earnings vs Savings Rate: KOBAY's forecast earnings growth (60.4% per year) is above the savings rate (3.6%).
#Earnings vs Market: 
KOBAY's earnings (60.4% per year) are forecast to grow faster than the MY market (12.1% per year).
#High Growth Earnings: 
KOBAY's earnings are expected to grow significantly over the next 3 years.
#The 2 new projects, namely EMS and solar frame should be operational and generating income from next quarter onwards.
#There is a relatively healthy outlooks for aerospace and O&G divisions.
#Solar segment. The group is ready for its venture into the manufacturing of aluminium frames for solar panels for renewable energy-related business. #Kobay has already completed the renovation and installation of the new 15 -acre plant dedicated for renewable energy-related business. The prior delay from authorities’ approvals has been rectified and the factory is now successfully connected to the electric power after the substation upgrade by TNB. The anodizing line has been set up and currently the factory is ready to run for production.
#EMS. Recall that Kobay invested RM20m in Innospec, a new SMT services subsidiary, to provide end-to-end complete solution for ADS. Kobay has already been qualified by customers in 2QFY23 and is currently awaiting orders to be released to kick start production. At this juncture, the group just secured 2 customers with revenue guidance of about RM1m monthly. Despite the minimal contribution Kobay’s main aim is to utilize the readily available SMT line and achieve breakeven.
#Advance data server. Demand has improved as bitcoin price has more than doubled from breakeven price of USD27k to 67k as of June 2024.
#Property and pharmaceutical. Property development is expected to deliver positive performance on the back of the completion of its maiden Langkawi project. #Pharmaceutical shall continue to work on widening its product range, along with cost control efforts to improve profitability and market competitiveness. The division is looking to expand its business in nutrition/supplement that could garner higher margin.

(Weekend Reading)
Apart from diversification into Healthcare Business, Kobay Technology benefits from Semiconductor, E&E demand surge due to US Planned Tariff increase to 50% from 25% for China made E&E products imported into US Market.
Kobay will start electronic manufacturing system (EMS) and solar panels soon. Kobay is ready to manufacture aluminium frames for solar panels as the renovation and installation of its new 15-acre plant dedicated to renewable energy-related business had completed.

Kobay will be a beneficiary of US's tariff increase from 25% to 50% on China made solar cells modules/aluminium frames, as according to a White House statement: The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024. The tariff increase will protect against China's policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China like Malaysia (Kobay)
*Note: US to Hike Tariffs on China Imports:
Steel and aluminium: The tariff rate on certain steel and aluminum products under Section 301 will increase from 0-7.5% to 25% in 2024.
Semiconductors: The tariff rate on semiconductors will increase from 25% to 50% by 2025.
https://www.fastmarkets.com/insights/biden-hikes-tariffs-on-chinese-imports-steel-aluminium-electric-vehicles-among-sectors-targeted/#:~:text=Semiconductors%3A%20The%20tariff%20rate%20on,%25%20to%20100%25%20in%20202

Kobay has diversified into Healthcare & Technology with E&E. RM3 is not a dream, with limited scripts available in the market followed by TP RM4~4.5 since Kobay has clocked in profit for 3 successive Qtrs.

Kobay is a stock currently with positive momentum so it's an opportunity to reap high returns. It's better to provide value added Analysis for Investor's informed decision making rather than just making a Conjecture?
https://theedgemalaysia.com/node/713456

If don't appreciate Kobay, can always try something cheaper like Iris? We believe it's on the verge of a breakout? :)

Recommendation:
Kobay shares are tightly held by substantial shareholders. Since weak holders and retailers already flushed out and most substantial shareholder's holding cost is RM4 or above? not many are willing to sell at current price. Operators will go for the lower hanging fruit of RM3 before next TP4~4.50. The next run-up will be fast & furious! Buy on any weakness and we wait for the next wave of buy by market & Foreign Funds.

Breaking News!
AWS is here! and Malaysia & Vstecs will be the main beneficiary of RM25.5 Billion Investment!

PM hosts investment delegations from AWS, Masdar in Putrajaya.
Anwar disclosed that the AWS delegation, led by AWS global public policy vice president Michael Punke, briefed him on the progress of AWS' RM25.5 billion investment announced last year.

“This investment, spanning 15 years from 2023 onwards, involves the establishment of data centres in Negeri Sembilan, Selangor, and Kuala Lumpur, progressing as scheduled,” said Anwar.

Anwar expressed Malaysia's appreciation for AWS's investment and strategic collaboration in advancing the country’s digital transformation ecosystem, encompassing cloud computing, Internet of Things, 5G and artificial intelligence.
https://theedgemalaysia.com/node/713562

YTL Power with shares of 8,189 miliion has surged from 70 sen to highest at 5.47 with announcement of tie-up with only Nvidia!

Vstecs with 360 million shares can surely do better than current price of 3.65? with announcement of partnership with AWS+Broadcom(VMWare)+Starlink+ Nvidia Ai PC & GPU?. Next TP should be at least 4~5 before next Qtr?

RECOMMENDATION:
Don't wait anymore, you will never get your lowest price. Collect VSTECS as much as possible on current weakness. Already reached bottom as the trend of higher lows will lead to higher highs indicating that an uptrend is occurring with overall mark-up in the value of Vstecs by next Qtr once income from AWS, Starlink, Broadcom VMWare and Nvidia Ai Computer & GPU sales are recognised. Once correction phase is over, Vstecs will rise even higher for the 3rd wave for the next Limit Up! with buying from Market & Foreign Funds! TP RM4~5 is still on track!
ps if you compare the price chart of Ytlpower with Vstecs, you will see a similar trend of future price performance.

Very good comeback by the operators! Expect more upside in the next few days after weak holders and day traders are all flushed out? Apart from diversification into Healthcare Business, Kobay Technology benefits from semiconductor, E&E demand surge.
Kobay will start electronic manufacturing system (EMS) and solar panels soon.
Kobay is ready to manufacture aluminium frames for solar panels as the renovation and installation of its new 15-acre plant dedicated to renewable energy-related business had completed.

Just wait for the updated announcement from Kobay before the next Lu?
https://www.thestar.com.my/business/business-news/2023/03/16/kobay-technology-to-start-production#openShareModal
https://themalaysianreserve.com/2022/09/13/report-kobay-technology-benefits-from-semicon-ee-demand-surge/

Kobay shares are tightly held by Private Companies & Institutions. Kobay Holdings already holds 34.1% with only 20.3% held by general public (retailers). With diversification into Healthcare business, Kobay's earnings forecast at 60.4% per year is better than savings rate of 3.6%. Kobay's earnings are forecast to grow faster than My market of 12.1% per year.

Recommendation:
Today's transaction volume is low due to Kobay shares tightly held by substantial shareholders. Only weak holders and retailers are weeded out with the Operators still accumulating. Buy on any weakness and we wait for the next wave of buy by market & Institutional Funds.

Kobay shares are tightly held by Private Companies & Institutions. Kobay Holdings already holds 34.1% with only 20.3% held by general public (retailers). With diversification into Healthcare business, Kobay's earnings forecast at 60.4% per year is better than savings rate of 3.6%. Kobay's earnings are forecast to grow faster than My market of 12.1% per year.

Recommendation:
Buy on weakness and we wait for the next wave.

Ownership Breakdown
Individual Insiders 2.5%
Institutions 16.7%
General Public 20.3%
Private Companies 60.5%

Earnings vs Savings Rate: KOBAY's forecast earnings growth (60.4% per year) is above the savings rate (3.6%).

Earnings vs Market: KOBAY's earnings (60.4% per year) are forecast to grow faster than the MY market (12.1% per year).

High Growth Earnings: KOBAY's earnings are expected to grow significantly over the next 3 years.

Top 19 shareholders own 79.7% of the company.
#Kobay Holdings Sdn. Bhd 34.1%
#Norinv Kapital Sdn. Bhd 18.7%
#Hong Leong Asset Management Bhd.
4.75%
#Inna Capital Sdn. Bhd. 4.62%
#Norges Bank Investment Management 4.09%
#Pemiergrow Capital Sdn. Bhd.
3.17%
#Employees Provident Fund of Malaysia 1.9%
#Kumpulan Wang Persaraan 1.75%
#Chen Ghee Tan 1.39%
#Kenanga Investors Bhd. 1.36%
#Lembaga Tabung Haji, Endowment Arm
1.17%
#Shwu Yan Lai 0.75%
#Manulife Investment Management (M) Bhd.
0.43%
#Chuan Kim Young 0.36%
#Meridian Asset Management Sdn Bhd
0.35%
#Taurus Investment Management Berhad 0.3%
#KAF Investment Funds Bhd. O.29%
#Dimensional Fund Advisors LP 0.2%
#AmIslamic Funds Management Sdn Bhd 0.12%