There are simply too many sellers for the last one month. The plus side is that the whales are still collecting....Otherwise, the price would not have sustained thus far...

The Board wishes to announce that the Proposed MSRGE Investment has been completed on 8 April 2024 in accordance with the terms and conditions of the Subscription Agreement.

Upon completion of the Proposed MSRGE Investment, MSRGE has become a 20%-owned associated company of Seal. The Proposed MSRGE Investment is expected to benefit the Group from the prospects, potentials, and growth of the renewable energy industry in Malaysia and contribute positively to the earnings of the Group in the future.

MSRGE is expected to undertake various EPCC works for solar and renewable energy segment. MSRGE is principally involved in the business of installation and servicing of solar PV system, renewable energy projects management, consultancy and construction, electrical works and any other ancillary business.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=146182&name=EA_GA_ATTACHMENTS

https://theedgemalaysia.com/node/707155
Contractors should seize the opportunity to obtain various construction projects within the country worth approximately RM180 billion this year...

The company submitted its application to Bursa on 6 Mar 2024 to request for upliftment of its PN17 classification. Hopefully, Bursa would announce its decision right after the company announcing its first quarterly earnings by 31 May 2024. Meanwhile, let's pray for more job orders being procured.

Epicon could be the next Binastra in the making... as it is estimated that Epicon would have job orders worth close to RM1.4bil too upon the finalization of the detailed JV terms with Permodalan Negeri Selangor Berhad.

Epicon's current market capitalization is RM262m only while Binastra's market capitalization is RM760m with RM1.4bil job orders in hand.

https://theedgemalaysia.com/node/705889

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=143196&name=EA_GA_ATTACHMENTS
The Gross Development Value of the proposed project could be at least RM563 mil as the selling price of the 2,252 units of Rumah Idaman MBI should start at RM250,000 per unit. So, this will likely translate into a potential job order of at least RM450m for Epicon upon finalization of the detailed terms & conditions for the project.

The 30-month Contract is expected to contribute positively to the earnings of the Company for the financial years ending 31 December 2024 and onwards.

Upon the awarding of this new Contract, the Company's total outstanding order book has risen to RM929 million from the previously stated RM840 million in the announcement made on 18 March 2024.

It has bagged another job order worth RM191 mil. Hopefully there's more to come before the declassification of PN17. That will help drive the share price to above RM1 upon declassification.

Just wondering if all the sellers in the past one week are aware of the impending the exit of PN17 classification for Epicon in the near future.

https://klse.i3investor.com/web/stock/substantial-shareholder/4286

The major shareholder Aaron Chen is still busy collecting....whilst the minority shareholders are selling....

I guess that many people may not realize that its on-going RM806 mil Queensville Phase 2 may contribute significantly to its P&L for FY2024. The project is located in a very matured area in KL where demand for residential properties remains robust.

https://www.queensville.com.my/

Hopefully research houses would start covering and promoting this counter once it has been granted approval to exit PN17 classification. It needs to go limit up in order to attract attention from research houses.

Exiting PN17 classification will enable it to get bank loans more easily to undertake more sizable jobs.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3428774
Good news!
Just sit tight and wait for the declassification of PN17.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3401142
Just for info, AAX was uplifted from PN17 without the need of implementing of a regularization plan....
https://theedgemalaysia.com/node/690869

The Group is currently focusing on the Queensville Phase 2 construction project located in Bandar Sri Permaisuri, Kuala Lumpur (“Queensville”) and a property development project in Penang, Bayan Suites. Queensville with an estimated gross development value RM806 million comprises of 3 blocks of service apartments with a total of 972 units of service apartments and a shopping mall while Bayan Suites with an estimated gross development value of RM204 million comprises of 20 units of shop lots and 326 units of residential units. Queensville is expected to bring in revenue to the Group in the next quarter while Bayan Suites is expected to be launched in the 4th quarter of FY2024.

The Group will continue to explore other opportunities, such as venturing into renewable energy industries. The venturing into renewable energy by the Group
is expected to contribute positively to the Group’s earnings.
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=227106&name=EA_FR_ATTACHMENTS

https://www.thestar.com.my/business/business-news/2024/02/27/ai-explodes-data-centre-energy-use
The above article helps explain why the solar energy and data centre sectors in Malaysia are kind of in the sweet spot now to capitalize the growth of AI businesses.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=144767&name=EA_GA_ATTACHMENTS

The company has been reporting profits for the last 5 quarters. It's entirely up to the regulatory authorities when to grant the approval for the company exiting the PN17 classification.

https://theedgemalaysia.com/node/702050
This article may help explain why it is good to capitalize and ride on the data centre industry which should be blooming for the next 5 years given that Artificial Intelligence (AI) has become more and more important in all industries. AI needs a lot more of data centres which also need a lot more of solar power to comply with ESG thingy. Malaysia is also an ideal place for data centres due to abundance of sunlights and relatively cheap land.
https://klse.i3investor.com/web/stock/substantial-shareholder/4286

Some profit could have been deferred to next quarter earning reporting which is the first quarter for FY2024. Likely the company would report at least RM40m net profit for 2024 in order to bring it to next level of growth. Otherwise, a new CEO will be appointed to chart the new growth for the company.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=144348&name=EA_GA_ATTACHMENTS

Upon the Subscription Shares being allotted to the Company, the Company will have an
equity stake of 20% in MSRGE. MSRGE shall have the right to convert the MSRGE ICPS
to ordinary shares in MSRGE at a conversion ratio of one (1) new ordinary share in
MSRGE for every one (1) MSRGE ICPS as and when MSRGE allot and issue any ordinary share to other shareholders of MSRGE, so that the Company’s 20% equity stake in
MSRGE will be maintained at all times.

The Proposed MSRGE Investment will also provide an avenue for Seal Group to progressively transform into an environmental, social and governance (“ESG”) entity which will accord Seal Group with greater recognition and support amongst investors, in particular among the larger institutional investors who invest based on ESG criteria.
Every year, about 43% of climate finance (USD30.6 billion) flowing from developed to developing countries is channelled to Asia.

MSRGE, with a solid track record in commissioning more than approximately 140MWp solar PV, expects to benefit from the above programme launched by the government as these new quotas will come with EPCC works which is one of MSRGE’s key strength. The key management of MSRGE also equipped with experience in commissioning the floating solar PV in Malaysia as well as the large-scale solar which will provide competitive advantages to MSRGE in EPCC jobs bidding for the solar PV quota launched by the government.

MSRGE also aims to become a RE assets owner and venture into EPCC for other RE
technologies.

In essence, SEAL will transform into a Renewable Energy player which will ride on the robust and growing RE business sector for the next 5 years especially in relation to the on-going booming development of data centers which normally prefer to be partially powered by solar energy in order to be in compliance with the ESG requirements.

https://www.thestar.com.my/news/nation/2024/02/22/sp-predicts-9-rebound-in-ringgit-by-end-2024
Hence, the economy outlook should be decent and good.

It was probably good for the counter to pull back in the last two days instead of going up in a straight line manner.

https://finance.yahoo.com/m/e3b05dcb-f97c-3837-b43e-03a310ee05bb/nvidia-revenue-supercharged.html

https://theedgemalaysia.com/node/699539

TSA Group upbeat on industry outlook

“For example, the food industry needs to use stainless steel for their equipment to comply with the [food security] standards. The oil and gas [sector] needs low-carbon steel products, and the green energy sector, particularly solar systems, needs a lot of brackets to support their panels, and the brackets are also supplied by us,” said Chew.

He highlighted that customers prefer stainless steel over mild steel because of its durability and resistance to rust, further fuelling demand for TSA's products. The company's customer base primarily comprises fabricators specialising in transforming stainless steel into various end products.

Established in 1993, TSA supplies a wide range of metal products, including stainless steel plates, bars, coils and pipes. The group has a presence in Malaysia and Singapore, as well as other foreign markets, such as Thailand, Australia, Bangladesh, France, Indonesia, the Maldives, New Zealand, the Philippines, Sri Lanka and the UK.

The price action seems to resume its up trending. Hopefully it would announce some job wins before its latest quarterly earnings announcement.

https://klse.i3investor.com/web/stock/financial-quarter/5273
Sometimes, it's not explainable...
If everyone has to buy based on NTA and sensible PE ratio, Chin Hin would not have reached its all time high of RM4.80 during last year....on the other hand, there are many other counters trading way below their respective NTAs now...

https://theedgemalaysia.com/node/699995

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3419593
A much smaller company owned by Mr Chen Khai Voon that may be worth for long term consideration...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3419593

https://www.thestar.com.my/business/business-news/2024/01/19/tsa-groups-ipo-shares-oversubscribed
Another Mr Aaron Chen's company to be listed on 2nd Feb.

PETALING JAYA: Genetec Technology Bhd has seen a recent pullback in its share price mainly due to growing concerns over moderating electric vehicle (EV) demand, triggered most recently by US-based car rental company Hertz scaling back on EVs.

However, CGS-CIMB Research believes that this is a good buying opportunity, with catalysts from strong order wins from the company’s EV and auto customers and demand surge for its battery energy storage systems (BESS) solutions.

Genetec declined 14% over the past week to close at RM2.01 on Jan 19 as investors became jittery over news indicating softening EV demand globally since the fourth quarter of 2023 (4Q23), including the scaling back of new EV model launches by brands and EV price cuts.

“Our recent checks with the the company’s management indicate that the outlook for the group’s EV and energy storage segments remains resilient,” the research house said.

It ran a scenario analysis on various growth-rate assumptions for Genetec’s EV business for the financial year 2024 (FY24) and FY25 and concluded that the current share price levels reflect a 30% annual decline in FY24 and FY25 EV revenue.

“We think this is excessive considering Genetec’s sole EV customer has a healthy pipeline of new model launches, including a new mass-market EV model by 2024 which should continue to support decent order flows for the company,” CGS-CIMB Research added.

According to the research house, Genetec had also guided previously during its Nov 23 analysts’ briefing that it aims to obtain additional work within its EV/auto segments, such as battery assembly and regenerative braking system production lines.

This could add RM200mil to its current orderbook by end-FY23 and FY24.

The research house added that Genetec had received purchase orders for 10 megawatt hours (MWh) worth of BESS capacity for small projects, likely to be rolled out by 2H24.

Genetec has also participated in tenders for the rollout of 705MWh worth of BESS capacity across various domestic projects, which could translate to a sizeable increase in its BESS orderbook.

In addition, the company has also identified over 4 gigawatt hour (GWh) worth of BESS capacity needs within the South-East Asia and Middle East regions that it can compete for.

It maintained an “add” call on Genetec with a Gordon Growth Model-target price of RM3.60.

The counter is currently trading at a 14 times calendar year 2025 price to earnings ratio, which is a 44% discount to the average basket of local automation solution providers’ 25.2 times.

Source: The Star, 23 Jan 2024

https://www.thestar.com.my/business/business-news/2024/01/23/genetec-to-gain-from-battery-storage-systems

https://www.thestar.com.my/business/business-news/2024/01/19/tsa-groups-ipo-shares-oversubscribed

https://www.thestar.com.my/business/business-news/2024/01/06/construction-industry-margins-to-improve-this-year

page 55

I don't have a target price yet. I intend to invest for a longer term to see the transformation journey of Epicon until it delivers net profit in excess of RM150 million p.a.
The major shareholder namely the Doh Family had successfully transformed another company Lagenda Properties (fka DBE which was a PN17 company too) into a sizable and successful public listed company which delivered net profit of RM200 mil within a year or two after the takeover. So I believe and hope that the Doh Family would duplicate their previous success in Epicon given that their good track record and strong business acumen. Meanwhile, just sit tight and ride with the transformation journey.
Happy New Year.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=230228&name=EA_DS_ATTACHMENTS
Not to be missed.
Another Mr Chen's company is going to be listed soon.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=230228&name=EA_DS_ATTACHMENTS

https://theedgemalaysia.com/node/695339
It's worth considering to invest in this IPO as Aaron Chen is a major shareholder of TSA Group. Moreover, the IPO is attractively priced with such a low PE ratio.

I hope that the company could win another two or three big construction projects plus announcing great fourth quarter's earnings before announcing the upliftment of PN17 classification. Then it would be a really great celebration for a lot of long term investors here.

https://theedgemalaysia.com/node/694932
Awaiting Seal to act faster to secure more deals in RE

With the latest JV contract announced yesterday, the company now has effectively in excess of RM1 billion worth construction contracts in hand which will provide clear earning visibility for the next 3 years. Hence, its prospect is bright.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=143196&name=EA_GA_ATTACHMENTS
True enough that a piece of good news has now been delivered approx. 3 weeks after announcement of its 3rd quarter result.
The Gross Development Value of the proposed project could be at least RM563 mil as the selling price of the 2,252 units of Rumah Idaman MBI should start at RM250,000 per unit. Hopefully more good news or construction job wins would be announced in the next 2 months before the announcements of its 4th quarter result as well as the upliftment of its PN17 classifications.
Merry Christmas and Happy New Year!

https://klse.i3investor.com/web/stock/overview/4847
Another company controlled by the Doh Family. It has a much smaller market capitalization with exciting prospects to grow in the next few months including the declassification of its PN17 status, like what happened when the family took over Lagenda a few years ago.

Just have to wait a little bit longer for more jobs or good news to be announced. PN17 declassification is around the corner, not later than end of Feb 2024. Three months will be just nice for the share price to inch up gradually in a sustainable fashion.

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=142705&name=EA_GA_ATTACHMENTS
TNB coming into the party...

https://www.thestar.com.my/business/business-news/2023/12/01/citaglobal-to-build-rm975bil-solar-farm-in-pahang
Citaglobal Genetec BESS Sdn Bhd......

With the underground utilities work awarded in October 2023, the Group also marks its first foray into civil and infrastructure work, expecting to secure more contracts from this segment in the near term. [ Haha, more good news in the pipeline? ]

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=225713&name=EA_FR_ATTACHMENTS

As expected, the group reported PAT of RM59m for the Q3.
For YTD, it reported PAT of RM63.5m for the 9 months period.
NAPS improved to positive 10 sen from negative (11 sen) 9 months ago.
Great result.

https://www.thestar.com.my/business/business-news/2023/11/20/lagenda-properties-anticipates-swifter-conversion-of-sales-into-revenue-profits
The first PLC taken over and now controlled by the Doh family.....

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3379049
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3362630
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=226442&name=EA_DS_ATTACHMENTS
See Slides No 67 and 70 to figure out the PBT to be reported soon.

It's in the regularization exercise paper. Alternatively, just wait until end of this month for the quarterly result to be announced.