Penang Chief Minister Chow Kon Yeow, meanwhile, said PBAPP is expected to gain RM86 million a year with the tariff adjustment. "However, PBAPP still has to bear an estimated subsidy of RM78 million for the same period".
i am quite certain investors are making a mistake thinking pba earnings will fly very high. but anyway, congratulations to those who made money. if i were you, i'll sell everything tomorrow on opening. don't be the fool who chase high.
Wow!!! Really drop my glasses. I accumulate at 80+ and sold at 1.60+. When it went to 1.80, I thought that was crazy. Never expect it to go beyond rm2 and now rm2.30.....congrats to those still holding it.
As this is a state gov linked company, do you think this company should make huge profit from basic needs? i agreed with csan all these rally are just emotional play.
@cheeseburger There is actually an operating profit MARGIN CAP of 10% on water operators, and the cap has likely been factored in the tariff itself (I have not heard of profit claw-back for regulated utilities anywhere in the world). However, the water sector is usually regulated based on water accounting standards (known as either WARGA/WIRA/RWA in Malaysia), not financial reporting standards. If the water accounting standards in Malaysia follow the international practice in the sense that they use current-cost accounting, then the profit reported to SPAN will likely be lower than the profit we see in financial reports, which is based on historical-cost accounting.
Under the new water tariff, domestic resident use 60 cubic metre for 2 mths, the total bill = RM77.50 as compare to exiting RM27.20, an increase of 185%.
If the market values PBA at a reasonable 10x PE on RM150m earnings, we're looking at RM4.50.
Warren Buffett and Charlie Munger always tried to buy companies that have monopoly-like status. Ideally an unregulated toll bridge.
PBA's issue of low water tariffs has now been resolved, and water tariffs can now be increased every 3 years. The new tariff rate adjustment also requires water consumers to pay the Imbalance Cost Pass-Through (ICPT) rates; for Penang it will be +7 sen for every cubic metre of water consumption for now. So the new effective 'water' tariff rates are actually higher.
Speakup....dun vote PH then vote PAS kah? Give free water but no short pant, no bak kut teh, no swimming suits atbthe beach and swimming pool ans kill all the tourism industries include hotels and eateries.. free water but no one ro serve to. Hahahahaha
PBAHB wishes to announce that Perbadanan Bekalan Air Pulau Pinang Sdn. Bhd. (“PBAPP”), a subsidiary of the Company has on 19 December 2023 received a letter from the State Government of Penang informing that the Water Intake Fee for year 2024 to 2026 shall remain at the rate of 3 sen per cu.m based on the annual actual production volume.
For cash rich and fundamentally strong stocks with potential future robust earnings, One person’s profit taking is another person’s buy on weakness and accumulate.. Act wisely…..what other stocks are avail to invest for growth except ytlp, ytl and the group ehich already had a good run
3iii has been harping on Netx which is still listed at 11 sen ( up 1 sen from 10 sen) when shares like Rapid Synergy, Ynh Scib, Leform, Widad, Mersec and others which gone limit down and he never bother to do his duty go there and warn innocent people there
This shows 3iii a busy body and a time waster Go and do something productive
50 minutes ago
calvintaneng
Calvin first promoted Pm Corp in year 2013 & 3iii opposed and said Pm Corp only worth 14.4 sen in investlah (now bankrupted by 3iii)
Pm Corp went across 30 sen 3 times & gave a Cash payout of 8 sen So he failed
So many good stocks were picked from years 2014 to 2017 of which 3iii kept total silent
For the next 3 years CPO prices are expected to rise & rise to Rm4,000 a tonne.
Mr, how? Very nervous...whole day can't sleep well
Oh boy!
If you buy shares that cause you to lose sleep you better sell them off and switch to these ones
1) JTIASA (Giant Tressure) 2) Ytl Power (Rock solid & stable) Dividend is 6.8% 3) RceCap (Also Rock Solid) Cash pay out is 25% 4) PBA (This One The MOST SOLID OF ALL) Water is recession proof
Jtiasa was Rm2.70 when CPO was Rm2,600 a ton
Now CPO already crossed Rm2.700 a ton
So Jtiasa going back to Rm2.70 is only a matter of time.
Just buy and forget!
After CPO Cross Rm4,000 a ton then you only SEE how much is Giant Treasure worth.
weak holders and short term traders in PBA are being wiped out by strong funds' buying. Good bargain to have added more at 2.35-2.32 this morning.
With expected EPS of 40 sen every year after the water tariff hikes, PBA is trading at undemanding PER of under 6.0x.
With a huge net cash position, PBA can afford to pay out handsome dividends going forward. Assuming a 50% payout ratio, we may expect dividend payouts of 20 sen per share every year, and dividend yield may exceed 8%
If I add back depreciation & amortisation charges and minus out lease liabilities payments, operating cashflows of PBA will increase by another RM50 million a year. So free cashflows will be likely be more than 40 sen a share, and PBA can well afford annual dividend payouts of 20-25 sen.
Capital commitments Approved Capital Expenditure:- At 30 September ; At 31 December 2023 2022 RM'000 RM'000 i) Contracted but not provided for 107,000 70,000 ii) Authorised but not contracted for 437,000 263,000
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Chong3710
180 posts
Posted by Chong3710 > 2024-01-17 16:27 | Report Abuse
Water of prosperity is on the way