Posted by JohnVinson > 2020-05-13 19:50 | Report Abuse

A good article to share…..

I am sure everyone had heard about "The National Fiberisation and Connectivity Plan (NFCP) ", which involved RM21.6 billion capital expenditure to substantially upgrade Malaysia telecommunication connectivity in prepare of digital economy as well as 5G technology.

With the NFCP,we can expect great investment opportunities ahead without any doubt.

But unfortunately,i also found many investors do not really understand how NFCP or even telecommunication industry is working,even famous bloggers make horrible mistake,so i think it is necessary to write this article and share my knowledge here.

1.)what is NFCP?

NFCP is a major plan to revolutionize Malaysia telecommunication industry,with target of building solid foundation for economy to adapt digital industrialisation,like industry 4.0 and Internet of Things(IOT),altimately make malaysia an even competitive economy globally.

The total investment under NFCP was estimated at RM21.6 billion.Among which,50-60% of the total investment will funded by universal services provision(USP) fund managed by MCMC,the remaining will be funded by private sector,namely TM,MAXIS,DIGI,CELCOM,etc.

Investment made by USP fund will be focus on infrastructure in rural area,mainly building new towers,upgrading exsisting towers as well as regular maintainance.

On the other side,investment made by private sector will mainly focus on urban area,included but not limited to building new towers,upgrade current facilities and network,as well as 5G investment.

2.)What is USP fund?

USP fund was set up by MCMC and contributed by telecommunication company every year.

The rationale behind is simple:Due to commercial consideration,telco wont set up their towers in most of the rural area.So,to make sure people in rural area can enjoy telco services too,MCMC request all telco to contribute certain percentage of their profit into USP fund every year,and then use the fund to build towers in rural area.

The towers build by USP fund will altimately connected to telco's network,thus allow all telco to provide services for rural residents.

3.)Which company will be benefited from NFCP?

Redtone is one of the company may benefited from NFCP.

I have wrote few article about how Redtone could benefited from NFCP since august last year,so the answer is YES,Redtone is difinitely one of the major winner.

As i mention before,Redtone had consistantly appointed as USP contractor by MCMC for the last 7 year,so far they already help MCMC to install and maintain hundreds tower in rural area,and already became one of the largest MTNS player in the market.So,NFCP is not something new to Redtone,they have necessary experience,expertise,capital,and track record.

To be even clear,Redtone is the only services provider in Bursa that own excellent record on large scale USP project.

We can expect Redtone to win more towers as soon as next week,as final winners of NFCP 1 that involve 153 towers would be announce anytime from now,following by NFCP 2 that involve 500 new towers.

No matter how,MCMC will spend big on rural towers expansion in years to come.i am pretty sure Redtone can win more towers from MCMC,just the matter of when,as they had clear advantage in USP projects.

Posted by TheSecret > 2020-05-13 22:15 | Report Abuse

Yes, redtone last year I buy in around 0. 49 around Sept. The pricing now still below the price last year I buy in. And let's based on what JohnVinson sharing, the price will shoot if announced rget award

Posted by monetary > 2020-05-14 08:05 | Report Abuse

The teleco services offered by redtone is more comprehensive compared to timecom. Among them r health care n SD wan. Besides, redtone segmental revenue is more diversified. About 60% of its rev is derived from mtns. Redtone is well positioned to b beneficiary of nfcp.

Timecom PE 19.3 Redtone PE 13.9.

Posted by monetary > 2020-05-14 08:26 | Report Abuse

VT holding 47% Johor sultan 18%. There is only 1 institution in the top 30. Philip Security 0.32%.

Posted by monetary > 2020-05-14 08:32 | Report Abuse

there r 2ways to monetize redtone. 1. umobile acquires redtone. 2. unfold it's value n get it listed in main board. transform it into another timecom n invite more institutional investors.

Posted by monetary > 2020-05-14 08:34 | Report Abuse

Just ignore all the roller coaster. Hold until nfcp episode 6

Posted by monetary > 2020-05-14 08:43 | Report Abuse

myinvestor 3
Why is redtone not use spectrum above allocated for mobile network?
13/05/2020 10:43 AM

I think it's to avoid conflict of interest between umobile n redtone. Besides, redtone businesses is more profitable. Retail mobile services too competitive.

Posted by Woodswater > 2020-05-14 09:27 | Report Abuse

The worst scenario is only privatized by VT @ Rm 1

Buy now at least gain 100 + % if really happening

Wakakakaka

Posted by TheSecret > 2020-05-14 14:07 | Report Abuse

Redtone prospect is good, background main holder also strong enough, can hold and wait patiently for rewards.

Posted by 123eztrade > 2020-05-14 14:10 | Report Abuse

why is REDTONE worth RM 1 to VT ?

Posted by monetary > 2020-05-14 15:30 | Report Abuse

he once offered $1 but johor sultan refused.

Posted by makemoney1 > 2020-05-14 15:34 | Report Abuse

Sultan buy ~rm0.8. Impossible to take private to rm1 d la......need to jaga sultan feeling also...

Posted by Woodswater > 2020-05-14 15:34 | Report Abuse

For u acceptable 50 c for privatization in future got NFCP projects?

Posted by TheSecret > 2020-05-14 16:47 | Report Abuse

Today worth to buy in!

Posted by monetary > 2020-05-15 15:06 | Report Abuse

RHB 20 Jewels 2020. Redtone in the list.

Posted by WalaoMoney > 2020-05-15 15:39 | Report Abuse

Investment Case

Fair value. Our estimated fair value range of MYR0.55-0.61 is based on
7-8x FY21F EV/EBITDA, supported by 15-17x FY21F fully diluted P/E –
close to small-mid peers’ forward EV/EBITDA of 8x. Our valuation is
premised on REDtone’s expansion in data revenue, potential significant
growth in the MTNS segment, new contributions from IDS, and
prospective higher dividend yields. We believe it is justifiable, as we
expect a 69% 3-year earnings CAGR and progressive growth in
dividend yields under the helm of its experienced management.

Posted by calvintaneng > 2020-05-15 16:16 | Report Abuse

https://klse.i3investor.com/blogs/future_tech/2020-05-15-story-h1507058327-Digital_divide_narrows_between_Chinese_youth_in_urban_and_rural_areas.jsp

DIGITAL DIVIDE BETWEEN RURAL AND URBAN CHINA NARROWED BY E-COMMERCE

SO REDTONE WILL BRIDGE KAMPUNG AND CITY BY ITS RAN (RADIO ACCESS NETWORK) OF DIGITAL CONNECTION

REDTONE SHOULD BE THE RED HOT NFCP STOCK

REDTONE GO GO GO!!

Posted by WalaoMoney > 2020-05-15 16:32 | Report Abuse

Redtone net cash position.

Posted by WalaoMoney > 2020-05-15 16:33 | Report Abuse

Picking up the pace in IDS. REDtone embarked on a series of digital services, such as data centre hosting for enterprises, cloud computing (Flexicloud) services, 4D/Virtual Reality solutions for businesses to digitise physical spaces and integrate its e-commerce platform, internet of things on smart farming and cities that helps to digitalise agriculture sector and increase farming productivity, and telehealth that facilitate a total web-based medical imaging platform to assist radiologists read scanned images over mobile networks. While it is relatively small for now, this could be a new earnings driver once its revenue picks up.

Posted by WalaoMoney > 2020-05-15 16:33 | Report Abuse

Company Report Card Latest results. 2QFY20 recorded lower PAT (-30% QoQ) mainly due to lower MTNS revenue (-35% QoQ). As the group changed its financial year end from April to June in FY19, no meaningful YoY comparative figures are available. Balance sheet. The group remains in a net cash position, with net cash of MYR40m, or MYR0.05/share as at 1HFY20 with minimal borrowings on hand. ROE. Its ROAE stood at 15.0% in FY19, higher than FY18’s 4.4%. Management. Lau Bik Soon has been Group CEO since 2011 and drives the group to achieve firm footing in the data and broadband space. He has over 25 years of experience in the ICT and telecommunications industry. Lau Hock Chye is the Chief Financial Officer, who has over 20 years of experience in the telecommunication industry with extensive experience in management, business leadership, working with board of directors, bankers, financial and legal advisers.

Posted by monetary > 2020-05-15 16:43 | Report Abuse

RHB report effect? lol!

Posted by WalaoMoney > 2020-05-15 16:48 | Report Abuse

Highly undervalued compared to GPACKET which have similar business. Redtone fundamental much more stronger than Gpacket.

Posted by Depeche > 2020-05-15 17:34 | Report Abuse

Yea....Gpacket fundamentals not impressive yet share price spiked so much...Redtone deserves better pricing.

Posted by Cmhoon > 2020-05-15 19:03 | Report Abuse

Redtone did not win the NFCP 1 award on 153 Towers :

NFCP 1 awarded to :

Edotco M sdn bhd 75%

FGV Prodata 25%

Still on 3G n 4G , last miles is Maxis and Umobile.

Posted by calvintaneng > 2020-05-15 19:14 | Report Abuse

Last miles is Umobile?

Exactly!

Umobile where got go last miles

Umobile is just a user and not an installator

Who install fiber optic last miles?

Redtone of course!!

Posted by calvintaneng > 2020-05-15 19:16 | Report Abuse

Who owns Umobile?

Privately owned by Vincent Tan

Who is the top owner of Redtone?

Vincent Tan is Top and Johor Sultan is top 2 holders of Redtone

So if Umobile wins jobs that means that Redtone got work to do

Posted by Jskoh79 > 2020-05-15 20:30 | Report Abuse

Hi, so this share will fly like rocket? Newbies here... First time buy share

Posted by darkangell > 2020-05-15 20:54 | Report Abuse

Will fly like helicopter, rocket too fast

Posted by Depeche > 2020-05-15 20:54 | Report Abuse

If u bought today...timing is perfect.

Posted by monetary > 2020-05-15 21:07 | Report Abuse

@depeche. correct. next week 40s will b history.

Posted by Depeche > 2020-05-15 21:13 | Report Abuse

@Monetary....TA/FA are indicating huat time here ..enjoy the ride up.

Posted by cicakman > 2020-05-15 22:44 | Report Abuse

Compared with Opcom Binaciom,Redtone is very much better.Normaly All these 3 counters prive move parallel.
As today market,REDTONE shows best price movements.
May be coming FYR will be much better.
Bear in mind,REDmed do buisness in Sri Lanka.that can generate revenue.

What is REDmed???
Redtone will be doing buiness related to C-19 soon

Something brewing,!

Posted by Woodswater > 2020-05-15 22:51 | Report Abuse

So far redtone is laggard behing compare to

Binacom once limited up b4 NFCP 1 released
Opcom lately failed to breach sma 200 @61c then dropped below 50c
Cmsb solidly during CMO from 8x c surged to Rm 1.40 then side wave till now around Rm 1.3x

And Redtone broke sma 200 @46 c. Show time for Redtone next week as leader of NFCP as,

Opcom
Redtone
Binacom
Cmsb
Netx

Wakakakaka

Posted by Woodswater > 2020-05-16 09:57 | Report Abuse

https://klse.i3investor.com/m/blog/kianweiaritcles/2020-05-14-story-h1507032134-RHB_20_Jewels_2020_Edition.jsp

Posted by Mikecyc > 2020-05-16 10:02 |

Post removed.Why?

Posted by Cmhoon > 2020-05-16 10:04 | Report Abuse

Redtone did not win the NFCP 1 award on 153 Towers :

NFCP 1 awarded to :

Edotco M sdn bhd 75%

FGV Prodata 25%

Still on 3G n 4G , last miles retail service provider is Maxis and Umobile.

>>>>>

Edotco M sdn bhd / Group sdn bhd substantial shareholders:

- Axiata Group Bhd
- Innovation Network Corp of Japan
- Khazanah Nasional Bhd
- KWAP


FGV Prodata Systems
@FGVProdata
FGV Prodata Systems Sdn Bhd is the IT arm of FGV Holding, one of Malaysia's largest, and most diversified agro-based enterprises.

Posted by Cmhoon > 2020-05-16 10:05 | Report Abuse

Referring to Q2 ended Dec’2019 :

Trade receivable = 116,029,000

Trade payable = 70,421,000

Compare to June’2019 :

Trade receivable = 35,016,000

Trade payable = 62, 898,000

>>>>

Within 6 months :

Revenue is RM 101 million ,

Trade receivable is increase RM 81 million ,

Trade payable is increase RM 7.52 million

Risk : must be a big project with very high profit margin.

Posted by Mikecyc > 2020-05-16 10:06 | Report Abuse

CEO is keep selling shares in 2019 and resigned as remuneration committee together with ED :

Type of Board Committee Remuneration Committee
Date of change 26 Aug 2019
Salutation MR
Name LAU BIK SOON
Age 49
Gender Male
Nationality Malaysia
Type of change Resignation
Designation Member of Remuneration Committee
Directorate Executive

Posted by Mikecyc > 2020-05-16 10:07 | Report Abuse

ED is resigned...

Type of Board Committee Remuneration Committee
Date of change 26 Aug 2019
Salutation MR
Name HO MENG
Age 60
Gender Male
Nationality Malaysia
Type of change Resignation
Designation Member of Remuneration Committee
Directorate Executive

Date of change 24 Oct 2019
Name MR HO MENG
Age 60
Gender Male
Nationality Malaysia
Designation Executive Director
Directorate Executive
Type of change Resignation
Reason Resignation upon retirement from employment.

Posted by Mikecyc > 2020-05-16 10:13 |

Post removed.Why?

Posted by Mikecyc > 2020-05-16 10:17 |

Post removed.Why?

Posted by calvintaneng > 2020-05-16 10:52 | Report Abuse

https://klse.i3investor.com/blogs/future_tech/2020-05-15-story-h150705...

DIGITAL DIVIDE BETWEEN RURAL AND URBAN CHINA NARROWED BY E-COMMERCE

SO REDTONE WILL BRIDGE KAMPUNG AND CITY BY ITS RAN (RADIO ACCESS NETWORK) OF DIGITAL CONNECTION

REDTONE SHOULD BE THE RED HOT NFCP STOCK

REDTONE GO GO GO!!

Posted by calvintaneng > 2020-05-16 10:55 | Report Abuse

REDTONE HAS VERY GOOD CHANCE OF SECURING NFCP JOBS DIRECTLY OR INDIRECTLY, Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-01-22-story-h1482894817-REDTONE_HAS_VERY_GOOD_CHANCE_OF_SECURING_NFCP_JOBS_DIRECTLY_OR_INDIRECT.jsp

Posted by calvintaneng > 2020-05-16 10:58 | Report Abuse

REDTONE AGM HIGHLIGHT Author: firerain (Reposting & comment by Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2019-12-04-story243656-REDTONE_AGM_HIGHLIGHT_Author_firerain_Reposting_comment_by_Calvin_Tan_Research.jsp

Posted by Mikecyc > 2020-05-16 11:08 |

Post removed.Why?

Posted by Mikecyc > 2020-05-16 11:10 |

Post removed.Why?

Posted by Mikecyc > 2020-05-16 11:11 |

Post removed.Why?

Posted by calvintaneng > 2020-05-16 11:42 | Report Abuse

Whoa Mikecyc missed Redtone and want to badmouth it so that some ignorant people sell redtone for you to buy cheap?

You are the real con artist!

Conned people to sell you esceramic on the cheap by spreading doubt and fear?

Also tried very hard to bad mouth Supermax but people there are smart as they called you Mickey mouse. You failed in Supermax and now try your luck in Redtone?

Posted by Johnchew5 > 2020-05-16 11:57 | Report Abuse

Ho ho ..Are these facts ? U can share your facts .. not twisting n create facts ..

Posted by Mikecyc > 2020-05-16 12:00 |

Post removed.Why?