Posted by goldenhope > 2 months ago | Report Abuse

Capex will increase depreciation and reduce cash flow hence reduce the ability to pay higher dividend

Posted by hng33 > 2 months ago | Report Abuse

Increase revenue through traffic hike is direct increase profit earning. The surge in profit allow higher capital to fund capex such as increase water treatment capacity, built new water treatment plant to meet increase water demand which is expect to leap up by another 30% by 2030. The surge in water demand in turn increase higher revenue to PBA. It's win win cycle to generate additional positive cash flow. Of course new and additional water treatment assets subject to annual depreciation review

Posted by dragon328 > 2 months ago | Report Abuse

@hng33, that's right. The increase in water tariffs will raise PBA's revenue by over RM100m a year, the bulk of which will flow to the bottom line.

The increased operating cashflows from the water tariff hike are to fund the capex for next few years, estimated at over RM300m for next 5 years. Hence PBA needs the additional operating cashflows of at least RM100m a year to cater for such capex and slightly increased opex.

Posted by hng33 > 2 months ago | Report Abuse

Dragon328
I expect much higher revenue increase than RM 100m as Penang water consumption just surge new high recently, and higher water consumption is at higher traffic band category at RM 2.07 per m3 which is increase RM1.37 per m3 hike compared to lower band category 50sen per m3 hike.

Posted by hng33 > 2 months ago | Report Abuse

Compared between PBA and RANHILL, PBA strategy is more focus on capex increase water treatment plant capacity to increase treated water supply to meet ever increasing Penang water consumption. Many penang land are consider heritage area, therefore, limit opex on pipe replacement effort.

On the other hand, RANHILL strategy is more focus on opex to aggressively pipe replacement, incur very high cost to meet targeted non revenue water%.

Posted by ValueInv888 > 2 months ago | Report Abuse

https://www.thestar.com.my/news/nation/2024/05/05/perak-agrees-to-supply-water-to-penang-says-pm-anwar

Posted by troy88 > 2 months ago | Report Abuse

Back to uptrend bullish mode!

Posted by dragon328 > 2 months ago | Report Abuse

Good move of PBA today.

Looks like insiders are buying ahead of quarterly result announcement end of this month.

Posted by hng33 > 2 months ago | Report Abuse

Penang has unveiled several crucial initiatives focused on strengthening the state's position as a global economic leader in three key sectors: trade, technology, and tourism.... More water needed....

Chow also revealed that the federal government has given the greenlight for the Kerian Integrated Green Industrial Park to supply surplus water from the park to Penang - - - - > source treated water fom Perak - - ->
higher Penang water traffic rate in next 3 year review

Posted by hng33 > 2 months ago | Report Abuse

Perak penang water transfer have change from raw water to treated water. Therefore, PBA needless to built new water treatment plant to process raw water. These massive capex will alleviate PBA cash hoard forward. PBA only need to lay new pipeline to connect Perak water treatment plant to Penang mainland seberang prai, which free up existing PBA own water capacity to focus supply water to its island Penang.

With direct transfer treated water fro Perak instead of raw water, Penang water traffic will hike much more higher forward.

Posted by hng33 > 2 months ago | Report Abuse

With less capex forward, PBA afford to opt much more higher cash dividend payout forward

Posted by dragon328 > 2 months ago | Report Abuse

It will be interesting to see how much profit PBA can achieve after the water tariff hike.

If there is no more provision for deferred tax charges, my estimation is for RM15m (normal quarterly profit before tariff hike) + RM60m/4 *2/3 = RM25 million net profit for this coming Q1 FY2024

Posted by dragon328 > 2 months ago | Report Abuse

If the revenue increase is as high as RM146m as hng33 stated above, and most of the topline increase flows through to the bottom line, then net profit could increase by RM110 million a year and this upcoming Q1 FY24 may see net profit jump to:
RM15m + RM110m/4 *2/3 = RM33 million

Posted by calvintaneng > 2 months ago | Report Abuse

CALVIN TAN SAY, THANK YOU 9 MILLION TIMES FOR 9 MILLION PAGE VIEWS IN i3 INVESTORS' FORUM!"

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2024-05-10-story-h-181811054-CALVIN_TAN_SAY_THANK_YOU_9_MILLION_TIMES_FOR_9_MILLION_PAGE_VIEWS_IN_i3

Posted by hng33 > 2 months ago | Report Abuse

dragon328
All state now operates under assets light business model. All state water assets now transfer to Federal PAAB which in turn leaseback these water assets to state water operator like PBA, Ranhill SAJ. These state water operator are task to focus on operating these water treatment assets, pipeline, maintain and collect water traffic fee from customer to repay back lease to PAAB under 45 year leaseback arrangement.

Under 45 leaseback arrangement, PAAB charge interest 6% and incur escalating 2.5% fees on outstanding on state operator. The repayment amount varies dependent amount of water assets acquire by PAAB. For Penang, PAAB acquire assets total RM 660m, and PBA repayment is about RM 14.5 m pa since 2009. These repayment amount will increase if PPAB fund to require to built additional new water assets for Penang. The principal amount repayment PBA pay lease to PAAB have since increase to RM 16.5m pa.

Under arrangement, state operator have first right option to use its own fund to built additional water asset or secure fund from banking if their interest cost is less than PAAB. Therefore, PAB need increase water traffic to increase its profitability and cash to fund new water asset instead of solely rely on PAAB funding.

While PBA gradually stand firm financially with net cash position, another water operator Ranhill SAJ have seek moratorium from PAAB since 2021. It have since continued opt only partial lease rental to PAAB in 2022 and 2023 till now.

Posted by hng33 > 2 months ago | Report Abuse

In April 2023, PAAB has notified Ranhill SAJ on the rejection of Ranhill SAJ application for moratorium on partial lease rental for 2022-2023.

Beside, PAAB, via letter dated 15 May 2023 inform Ranhill SAJ it will charge late payment intereswt on outstanding lease payment begin from 1 June 2023 at rate 6.65% pa

On 25 oct 2023, Ranhill SAJ received demand letter from PAAB in relation to partial lease rental for 2022-2023amounting to RM 95.1 m (Source: Ranhill annual report 2023, page 147)

Posted by hng33 > 2 months ago | Report Abuse

Technology, Property, and Construction - Penang- Silicon Hub of ASEAN
https://klse.i3investor.com/web/blog/detail/rhbinvest/2024-05-09-story-h-181842088-Technology_Property_and_Construction_Penang_Silicon_Hub_of_ASEAN

Remark: Penang water consumption is expected to growth from 877MLD in 2023 to 1500MLD in 2030.

PBA revenue growth is compounded propel by both increase water sold + water traffic hike every 3 year review

Posted by Raymond Tiruchelvam > 2 months ago | Report Abuse

waaah.... just realised PBA so thinly traded, or is it seasonal? the buy and sell volumes are chump change only hahahaha.... :-) peace

Posted by hng33 > 2 months ago | Report Abuse

PBA profitability and valuation is much more better than Ranhill

Posted by goldenhope > 2 months ago | Report Abuse

Users complained the water bill charges were extremely high.

Posted by hng33 > 1 month ago | Report Abuse

PBA repprted EPS = 4.34sen, below expectation. There reason is due to earlier planned water disruption for almost entire Penang in Jan for 96 hour and subsequently unplanned water outrage 48 hour happened in Jan 2024.

Therefore, affected water sale revenues. The administration and cost of sale also increase due to abobe water disruption as PBA need to provide free water supply via jumbo water tank to meet residents water consumption. The significance cost also recorded to replace valve and pipeline during these period.

In additional, current period may only able to record 1 month domestic traffic hike instead of 2 month as projected. These is because PBA adpot bimonthly water billing instead of montly.

In short, PBA real traffic impact will be more reflected in next Q result. PBA free cash holding continue increase with increase concession like, recession proof water business.

Posted by paperplane > 1 month ago | Report Abuse

after so many bullshit by hng, the real result is just normal, you can talk all cock on what 25mil bullshit, end result will not be as per your bullshit.

the earlier assumption on good div payout also seemed not forth coming,

Posted by paperplane > 1 month ago | Report Abuse

96 hour and subsequently unplanned water outrage 48 hour happened in Jan 2024.
96 hour and subsequently unplanned water outrage 48 hour happened in Jan 2024.

Posted by paperplane > 1 month ago | Report Abuse

96 hour and subsequently unplanned water outrage 48 hour happened in Jan 2024.
pure sorhxxxxi, how many days only, and caused 10mil gap in q income? you think we kindergarten kids meh hng

Posted by paperplane > 1 month ago | Report Abuse

simple as this: naive assumption, over positive expectation, and EGO

Posted by ltlim74 > 1 month ago | Report Abuse

This forum is about stock investment and sharing of bullish and bearish opinions. If everyone is neutral, then better close down this forum or go elsewhere.

Posted by ltlim74 > 1 month ago | Report Abuse

Even so called expert analyst get it wrong very often. So don't condemn anyone personally here. Only condemn those who talk rubbish and waste our time reading it.

Posted by Erudite > 1 month ago | Report Abuse

Hng33 is not wrong. His assumption reasonable. Only thing disruption + tariff hike only effective in March (Jan, Feb still old rate) as PBA practice bimonthly billing. U can check ur bill… I m penangite so I know. Next Q will be bombastic

Posted by S363636 > 1 month ago | Report Abuse

Yup I agree with @erudite . Next quarter only can see the increase properly !!! And if we see just by quarter comparison the quarter is good . Is standard increase

Posted by Agjl > 1 month ago | Report Abuse

Be nice… everyone here is trying to help each other. The final decision is yours. Cheers!

Posted by dollardollarbill > 1 month ago | Report Abuse

1Q24 Note 15:
15. Current year prospects
Revenue from sales of water is expected to further increase in line with the new water tariff implementation with effect from 1 February 2024 for domestic consumers.

Posted by goldenhope > 1 month ago | Report Abuse

Everyone here just to share their views and insights, accept if you agree, ignore if you feel "talk cock".

Posted by goldenhope > 1 month ago | Report Abuse

Buy more if you confident with the company, not happy then just throw it and keep quiet.

Posted by KingKKK > 1 month ago | Report Abuse

Still think PBA is worth RM2.60, Q1 earnings turned profitable as expected. More to come in Q2 as it will be full 3 months new tariff contribution

Posted by dollardollarbill > 1 month ago | Report Abuse

Hi Erudite, could you kindly share what your water bill was like from Jan-Apr so we can better understand the impact? Thanks.

Posted by Erudite > 1 day ago | Report Abuse

Hng33 is not wrong. His assumption reasonable. Only thing disruption + tariff hike only effective in March (Jan, Feb still old rate) as PBA practice bimonthly billing. U can check ur bill… I m penangite so I know. Next Q will be bombastic

Posted by hng33 > 1 month ago | Report Abuse

sold first at 2.02-2.06, wait for next Q

Posted by mizieXX > 1 month ago | Report Abuse

my water bill increase 100%..from rm40+ now 100+.. can expect how much profit for pba next quarter

Posted by goldenhope > 1 month ago | Report Abuse

@mizieXX May i know the date of your bill RM100+ ?

Posted by S363636 > 1 month ago | Report Abuse

Siliconware Precision Industries Co., Ltd. (SPIL), a leading global semiconductor packaging and testing company, celebrated the groundbreaking of its Malaysia P1 plant at Bandar Cassia Technology Park in Pnenag. This state-of-the-art 8-hectare facility, representing a RM6 billion investment, is expected to create nearly 3,000 skilled jobs over the next 15 years. The plant will feature advanced packaging and testing technologies, including wafer bumping and wafer-level chip packaging, enhancing efficiency and competitiveness in the semiconductor industry.

The ceremony was graced by prominent figures, including YBhg. Dato’ Hairil Yahri Yaacob, Secretary General of MITI; Mr. Sivasuriyamoorthy Sundara Raja, Deputy CEO of MIDA; Dato’ Loo Lee Lian, CEO of InvestPenang; and Mr. Michael Chang, CEO of SPIL Malaysia. Their attendance highlighted the significance of this project to the region and the industry.

YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of MITI, warmly welcomed SPIL’s investment. He emphasized that this development affirms Malaysia’s position as a preferred destination for global semiconductor companies. He noted, “The National Semiconductor Strategic Task Force (NSSTF) and MIDA’s expertise are key to the New Industrial Master Plan 2030, aiming to increase economic complexity, forge stronger global linkages, and create high-paying jobs for Malaysians.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, underscored the benefits of SPIL’s investment, stating, “This facility enhances Malaysia’s semiconductor ecosystem, creating high-value engineering jobs and accelerating the export of Malaysian products globally.” He added that this project positions Malaysia as a key player in the international semiconductor market, driving sustained economic growth.

Dato’ Loo Lee Lian highlighted Penang’s substantial contribution to the semiconductor sector, stating, “Penang is proud to host SPIL, reflecting foreign investors’ confidence in our region as a hub for advanced technologies. This facility will advance Penang up the value chain, reinforcing its reputation as the Silicon Valley of the East.”

Mr. Michael Chang, CEO of SPIL Malaysia, expressed gratitude to MIDA and InvestPenang for their support. He stated that the P1 plant will foster innovation, cultivate semiconductor talent, and enhance technological capabilities in Penang. He emphasized SPIL’s commitment to environmental sustainability, aiming for GBI Green Globes Certification and a net-zero carbon reduction goal by 2050.

As part of ASE Technology Holding, the world’s largest packaging and testing group, SPIL is expanding its global footprint with the P1 plant. This initiative introduces advanced packaging technology, strengthens the packaging and testing industry, and drives innovation and economic growth in Penang and beyond.

Posted by S363636 > 1 month ago | Report Abuse

More water needed soon

Posted by Agjl > 1 month ago | Report Abuse

Hng33, why sold your portion so early when u are optimistic on its prospects?

Posted by mizieXX > 1 month ago | Report Abuse

16 may

Posted by ocbc > 1 month ago | Report Abuse

1) Issue bond like alibaba will do to have low funding cost
2) Take control of Yli Berhad which is cash rich and NTA =1.37 , now selling at lelong price 0.55 PBV

Posted by goldenhope > 1 month ago | Report Abuse

@mizieXX Your bill 16 May, should be covered 17 Mar to 16 May, how about previous bill Jan to Mar 16, still follow old tariffs ?

Posted by mizieXX > 1 month ago | Report Abuse

yes.. march bill still use old tariffs.

Posted by Justaboylearning > 1 month ago | Report Abuse

PBA PBA PBA.... never change . RM 520 million to install a smart meter just for convenience . If the government actually go through with it. It's time to sell the shares as they spend unnecessary money on OPEX...

Or it's time for MACC to look at who benefitting from these deals as it seems like there's some bribery involved.

Posted by hng33 > 1 month ago | Report Abuse

Very funny, only Penang water traffic hike keep received complaint, NOT only from consumer, MCA, now even Penang DAP also blame Penang gov .... now demanding rebate 20 per cubic meter....pressuring on Pnenag government to continue give more rebate.

https://www.chinapress.com.my/20240601/%e6%98%afspan%e6%89%b9%e5%87%86%e6%96%b0%e6%b0%b4%e8%b4%b9%e4%bb%b7%e4%bd%8d-%e6%9b%b9%e8%a7%82%e5%8f%8b%ef%bc%9a%e8%a1%8c%e6%94%bf%e8%ae%ae%e4%bc%9a%e5%b0%86%e8%ae%a8%e8%ae%ba/

Posted by KingKKK > 1 month ago | Report Abuse

Bursa MAGNIFICENT 7 - Update for Jun 2024 - Discussion about PBA, YTL, YTLPOWER, TENAGA, UEMS, IOIPG and SUNWAY - (KingKKK)

https://klse1.i3investor.com/blogs/bestStocks/2024-06-02-story-h-160564341-Bursa_MAGNIFICENT_7_Update_for_Jun_2024_Discussion_about_PBA_YTL_YTLPOW.jsp

Posted by goldenhope > 1 month ago | Report Abuse

Why LGE commented on the price hike now, should be debated before Penang gov approves the proposed rate hike.

Posted by goldenhope > 1 month ago | Report Abuse

They should discuss internally to solve the problem but not openly condemn the CM.