winsenlim68

winsenlim68 | Joined since 2021-03-24

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Stock

2023-08-25 11:21 | Report Abuse

Brief Background

§ The Company used to be involved in the M&E segment for property. Company started journey into sustainable energy solutions (“SES”) in 2018 and begun its transformation and diversification into SES.

§ One of the largest SES projects secured thus far is the construction contract awarded by Petronas Gas in early 2023, amounting to RM230m. This includes the EPCC work for a 52 MW gas power plant in Sabah

§ The gas power plant is expected to be the sole source of energy supply to Petronas’s upcoming floating LNG, slated to be Sabah’s first nearshore natural gas facility with minimum capacity of 2.0m tonnes p.a.

§ As part of the arrangement, KAB will also subscribe to a 10% stake in the plant.

§ To date, the Company provides a wide range of alternative sustainable energy solutions which includes:

- Energy saving solutions (chiller optimisation, building management systems)

- Renewable energy (owns solar assets and looking to acquire mini-hydro and biogas)

- Clean energy (owns waste heat recovery plant, co-generation plant and gas power plant in the future)

§ Total capacity under its assets is approximately 80MW (including new projects)

§ Majority of its concession assets have remaining tenure of more than 10 years and will be able to deliver a reliable stream of sustainable income for the future



Financials Update for 1HFY2023

§ PAT for first 6 months was RM5.9 million, an increase of 380.4% from the first half last year. First half PAT already surpassed the past 3 years annual PAT

§ SES segment was the key driver, recording an increase of 182.6% increase in operating profit to RM6.4 million

§ Operating profit margin for SES segment very healthy at 49%



Prospects

§ Company expects acquisition of its 2 projects, namely its 11MW mini hydroplant in Indonesia and 2.4MW biomas plant in Kedah to be completed in the second half of this year

§ From retail briefing by RHB, other than the 2 upcoming projects expected to be completed they still have more SES projects in the pipeline as their net gearing remain low at 0.17x

§ Orderbook stands at RM193 million and RM785 million for M&E and SES divisions respectively



Conclusion

§ Company’s momentum in SES segment is growing, expect 2HFY2023 to be as strong or stronger, we might be witnessing a new market leader to compete with other renewable energy competitors such as Solarvest, Saimaden

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2023-07-20 16:55 | Report Abuse

Their Q1 results is pretty good, EPS 1.33 sens. Think can continue to do better.

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2023-04-07 11:51 | Report Abuse

if there is a rally I wont be surprised, earnings visibility is here

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2023-04-05 16:15 | Report Abuse

https://klse.i3investor.com/web/blog/detail/ranhill13/2023-04-05-story-h-274246018-Update_on_2023_Outlook

Update on 2023 Outlook

Following the latest quarterly results, Ranhill Utilities Berhad appears to be on a steady course for a potential rebound in FY23. The company's prospects look promising, and several developments are expected to uplift the company's outlook.

Here are some updates on the key factors that could drive Ranhill's growth in the upcoming year.


1) Tariff Hike Expected to Boost Earnings in FY23

Ranhill's subsidiary, Ranhill SAJ Sdn Bhd (RSAJ), has begun recognizing the backdated July 2022 gazetted tariff adjustments for Aug-Dec 2022 period. As per the adjustment, the rate for the first 35m3/month has been raised to RM3.10/m3 (from RM2.80/m3), and that of subsequent consumption is raised to MYR3.50/m3 (from RM3.30/m3). This adjustment is expected to lead to an increase in earnings of approximately RM10 million for FY23, according to a report by RHB.


2) Healthy Cash Flow from NRW Matching Grant Receipt

Ranhill has qualified for the Non-Revenue Water (NRW) reduction incentives for FY21, enabling it to recognize a reduction incentive of RM142 million in FY22. The disbursement of the RM142 million grant is expected in FY23 Q2, which will further boost Ranhill's cash flow and could lead to a potential boost in dividend payout for FY23. A simple back of the envelope calculation shows that RM142 million would yield 10 sen dividend per share, translating approximately 20% dividend yield from its current share price.

As per a report by RHB, Ranhill is the most efficient water operator in Malaysia as Johor has the lowest NRW per km of 17.2cu m/km/day. Therefore, it is highly likely that Ranhill will meet the NRW target for FY23 and qualify for the NRW incentive.



3) NRW Incentives Under the 12th Malaysia Plan

The 12th Malaysia Plan has allocated RM1.37 billion under Approach 2 for matching grants to assist water operators in states that has less than 40% NRW rate. Seven state water operators, including Ranhill in Johor are implementing Approach 2, thereby presenting an opportunity for Ranhill.




With the company’s impressive history of reducing NRW, it is anticipated that Ranhill will meet the criteria for the NRW incentive under Approach 2, thus further enhancing its cash flow position.



4) Progression of the Indonesian Djuanda Water Project

According to a report by RHB, the Indonesian Djuanda source-to-tap water project, with an estimated treatment capacity of 605m litres/day (MLD) and USD700-800m capex, is in its final feasibility study. Once accepted by the Indonesian Government, Ranhill will be accorded Initiator Status, which gives it the 'Right-to-Match' privilege as the project enters into the public tender process. Upon completion, the water project is expected to provide clean water access to 3.9 million residents around the Greater Jakarta area, including DKI Jakarta, Bekasi City, Bekasi Regency, and Bogor Regency.

The concession period awarded for this project is estimated to be 30 years, which is a significant boost for Ranhill's bottom line. The successful execution of this project could also open the door for Ranhill to new water project opportunities in Indonesia in the long term.




5) Successful bid for new 100MW CCGT plant in Sabah

Ranhill Utilities and Sabah Energy Corporation's 60:40 consortium won the bid for a 100MW CCGT power facility on Sabah's west coast. The facility has a 21-year PPA with Sabah Electricity and set to begin commercial operation date on 1 March 2026. According to MIDF, it is estimated that the new plant could generate incremental equity value of 11sen/share based on Ranhill’s 60% stake. Ranhill's new plant will expand its power capacity in Sabah by 26%, making it the largest IPP with 30% market share.




According to the Sabah Electricity Supply Industry Outlook 2019, peak energy demand is expected to grow 14% to 1,080MW in 2029, resulting a reserve margin of mere 3%, far lower than the 23% currently. Therefore, Ranhill is proposing to extend the PPA of its existing RP1 power plant by eight years to 2037 to meet Sabah’s growing energy demands. Coupled with the expected completion of the Southern Link project this year, it will enable RAHH to distribute more electricity to the east coast through its existing power plants and hence increase its revenue.



In summary, the recent developments are a positive sign of Ranhill's growth potential. I anticipate the company to experience a re-rating, as these factors have not been fully priced in, along with a potential dividend bump from the government grant. In uncertain times like these, Ranhill's defensive nature is a good fit for investors.

The light at the end of the tunnel seems to be getting closer.

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2023-03-16 11:34 | Report Abuse

Nahh, i dont think so. An ex-ghl boss coming into the picture, dont think the story is that simple

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2023-03-16 09:54 | Report Abuse

why is everyone so focused on ED and the duo? im surprised no 1 is talking about danny leong in the company

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2022-06-27 09:34 | Report Abuse

good time to look for undervalued construction stocks

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2022-06-23 15:30 | Report Abuse

OM Holdings and Press Metal are among the prime beneficiaries that have a significant advantage over global peers, given their access to eco-friendly low-cost hydropower. Commodity prices may stage a reversal once the lockdowns in China are eased, which will improve demand and support prices, backed by favourable supply demand balance

https://www.omholdingsltd.com/wp-content/uploads/2022/06/2022.06.23-UOBKH_Eco-Friendly-Smelters-In-Sarawak-Set-To-Be-Global-Champions.pdf

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2022-06-08 13:59 | Report Abuse

the company's profit should up yoy for FY22 supported by external tailwind in both China and Europe

Stock

2022-06-06 22:04 | Report Abuse

hugeeee dumping on 31st may

Stock

2022-06-01 11:56 | Report Abuse

BUY, new SOP TP of MYR0.66 from MYR0.76, 35% upside, c.4% yield.

We expect a stronger FY22F earnings growth of 32%, partly driven by the revenue streams from the services segment, ie Ranhill Bersekutu and Ranhill Worley. We gathered that Ranhill
Worley – together with Malaysia Marine & Heavy Engineering (MMHE MK, NEUTRAL, TP: MYR0.42) – was successful in a bid for Petronas’ parallel front-end engineering and design works for the Kasawari Phase 2 project,which should further support earnings. Potential rerating catalysts: i) Higher than-expected rate hikes for Ranhill’s Johor water operations, ii) positive
outcome for its ASEAN expansion plans (ie source-to-tap water project in Indonesia), and iii) project wins related to water and renewable energy.

https://research.rhbtradesmart.com/view-file/hash/125692320663902996296ca547073a?NO_CACHE=44bf8b951a0e3063a65567fed863c612

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2022-05-23 00:15 | Report Abuse

https://www.thejakartapost.com/news/2020/06/02/djuanda-project-to-provide-access-to-clean-water-in-greater-jakarta.html

If I remember correctly, Ranhill had a collaboration on this. Anyone have any new updates on this? Hope Ranhill can get the job from it

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2022-05-05 12:26 | Report Abuse

https://klse.i3investor.com/blogs/Ranhill8/

Like any other recovery play, I trust Ranhill may still have some catalyst up their sleeve

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2022-04-28 11:06 | Report Abuse

dead stock. got court case. no money to push

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2022-04-23 15:46 | Report Abuse

As oil price remain elevated, I believe this would present opportunities for Ranhill engineering segment. Upstream increases capex which also means more works/maintenance jobs

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2022-04-11 16:06 | Report Abuse

https://www.thestar.com.my/business/business-news/2022/04/06/moody039s-malaysia-to-record-6-economic-growth-in-2022

With the reopening of international borders, the influx of tourists would provide some boost in terms of consumption

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2022-04-06 14:55 | Report Abuse

Thanks Sslee for your reply. I think I'll still keep for now

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2022-04-06 14:53 | Report Abuse

https://klse.i3investor.com/blogs/Ranhill7/
Just wrote another piece on the company. HODL!!!!!

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2022-04-01 09:53 | Report Abuse

dont think it will up for this so-call recovery stock. operator keep throwing price down while u keep buying operator stock

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2022-03-24 16:32 | Report Abuse

So what was your conclusion sslee? kind to share your thoughts?

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2022-03-21 18:09 | Report Abuse

Good
1. Sarawak development – local based CMS will be beneficiary for its business involvement in cement, construction, construction materials trading, road maintenance, property, telecommunications including 5G, Petros (think that is why the proposed acquisition)
2. OM – commodity prices still looking good for this year
3. Governance – considered as quick enough to fix (as u see some companies drag the issues for long, not good for business)
4. If MPAS can be start production anytime soon

Not so good
1. If covid comes again & affect economy

News & Blogs

2022-03-18 13:57 | Report Abuse

what i like is the good margin, there is a buffer keep when giving out cash and also interest to collect. and risk is minimised with pledges/ collaterals. is like volume game also - open more stores process more transactions, get more cash give out more loans. the market share got room to grow

News & Blogs

2022-03-18 13:35 | Report Abuse

what i like is the good margin, there is a buffer keep when giving out cash and also interest to collect. and risk is minimised with pledges/ collaterals. is like volume game also - open more stores process more transactions, get more cash give out more loans. the market share got room to grow

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2022-03-16 11:25 | Report Abuse

very good question sslee. Hopefully the management would revert again soon

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2022-02-20 23:29 | Report Abuse

https://www.theedgemarkets.com/article/bursa-chairman-companies-ignore-esg-will-be-deprived-equity-debt-financing

Companies that choose to ignore sustainability/environmental, social and governance (ESG) considerations in their business will not be sustainable as they will be deprived of both equity and debt financing to fund their projects.

According to Bursa Malaysia chairman, Tan Sri Abdul Wahid Omar (pictured), these companies will have to pay a higher insurance premium to underwrite some of their risks and will have difficulty in recruiting talents to drive their business.

Thankfully Ranhill business nature revolves around ESG

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2022-02-15 08:45 | Report Abuse

MARGMA expects demand for gloves in 2022 and 2023 to be 10%-15% higher than pre-pandemic level

https://www.theedgemarkets.com/article/margma-expects-demand-gloves-2022-and-2023-be-1015-higher-prepandemic-level

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2022-02-15 08:44 | Report Abuse

MARGMA expects demand for gloves in 2022 and 2023 to be 10%-15% higher than pre-pandemic level

https://www.theedgemarkets.com/article/margma-expects-demand-gloves-2022-and-2023-be-1015-higher-prepandemic-level

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2022-02-11 08:33 | Report Abuse

would its gloves give better results with high omicron cases everywhere?

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2022-02-10 08:53 | Report Abuse

this rieter seems like AT existing client since last time

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2022-02-08 10:58 | Report Abuse

https://klse.i3investor.com/blogs/Ranhill6/

Long term investors need to hold tight! i believe in their energy business

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2022-01-19 10:28 | Report Abuse

Actually, another potential catalyst could be the remaining project from the Rasau Water. Hopefully they will atleast get win a project given their latest acquisition.. they should have the technical expertise...

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2022-01-19 10:25 | Report Abuse

Their cash flow remains healthy, so I think their dividend should remain good. But i hope the management would give out cash dividend instead

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2022-01-19 10:23 | Report Abuse

This company indeed is for long term. The downtrend in share price should be mainly due to slower revision in tariff rate and lower profit for the past few year

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2022-01-10 23:47 | Report Abuse

another level

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2022-01-06 10:22 | Report Abuse

haha dont say it that way. Its an open tender as the news article mentioned.

"The company said this was sixth successive NRW project in Johor secured by RWS through competitive open tender process since 2011. "

I trust they won because of their long term working relationship and capabilities. We shouldn't discount their expertise

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2022-01-04 22:33 | Report Abuse

Two project total value 160-ish million. Nicely done!