Posted by terence775 > 2021-04-05 19:10 | Report Abuse

Azshah you raise interesting points but I think you misunderstand that PEB is "buying over" renikola
In actuality, renikola is taking over PEB, pumping their assets into the company and also taking over the management.

For sure the current shareholders of PEB will get diluted, considering that PEB is only a 115mil market cap company with ~70mil NOSH. That being said, how much could renikola be worth by independent assessors, and how much could they be worth by the market? This is the "speculative" part of this investment which is the "high risk" section.

Note that Lim Beng Guan, a director at renikola, was assigned as director of PEB. I think it's quite sure that this deal will go through, just what the terms are, and whether the shareholders will be rewarded by this corporate exercise.

I'm personally interested in it and have taken up a stake. Renikola is a pioneer in what they're doing, and it would be worth seeing how things unfold from here.

But do not get me wrong, at this stage this is very highly speculative on whether you will be rewarded, and how much you might be rewarded for.

Investment is all about risks and rewards after all :)

Posted by Azshah > 2021-04-05 21:32 | Report Abuse

Very concise and articulate comments, Terence775. Appreciate them andd well noted. You correctly pointed out the speculative aspect which is crux of my discussion with all. Case in point, the value of reNikola will be revalued upwards in the acquisition by PEB.

LBG and friends will be rewarded handsomely from the sale to PEB even at RM1.07 / share as the profit from the sale of reNikola to PEB is about 1x asset value.

And considering the PEB shares they received is now valued at RM1.70, LBG and friends make another round of gain.

Effectively, just the sale of reNikola itself to PEB has netted them multiple baggers.

Consider our position on the flip side buying at RM1.70 per share. Even for any good company there is a limit on how high a purchase of its shares can go before it becomes a very expensive buy.

Posted by Azshah > 2021-04-05 21:37 | Report Abuse

I really cannot see any other "value" remaining in reNikola not reflected in the current RM1.70 / share. Any other future expansion plans into areas of solar, RE...is just that. A plan.

And until such plans are executable, it is best not to impute too much value into them

Posted by ctth20 > 2021-04-06 12:58 | Report Abuse

1) PEB - 70 mil asset, 114 mil market cap
2) reNikola will reversetake over PEB
3) Independent party will evaluate reNikola Value
4) PEB will issue share to reNikola at a price 1.07/share (Probably non dilutive as share issued to acquire asset)
5) PEB raised 390 mil from sukuk bond

Things to ponder
- What is the fair value of a 88 MWP solar plant operator. (ESG compliace, recurring income)
- What is the fair P/E value for pure play Solar Plant owner / operator.
- How much additional funding do they need for the 330 MW Bukit Kayu Hitam solar plant development

Posted by jazmaster > 2021-04-06 18:31 | Report Abuse

Misunderstanding is ok.... hahaha, Don't misleading.

Posted by jazmaster > 2021-04-06 18:54 | Report Abuse

lol, When some said that can't see the "value" and the keep being offensive ? Investor ke? hater ?

Instead of get misleading by those unreliable comment and unknown source.

I agree that Every Investor should watch the video that posted in YouTube regarding the live playback of 12invest blogger and Renikola.

Regarding stock value I think everyone have different opinion, Like Azshah was keep saying that is not fair to this and that and meanwhile those telegram and supporter keep mention about. TP 4-5.

In this, I can just that value is another story, Stock market need included with demand and need also additional come with market trend and market sentiment. Harta, Very good example, past few year was keep staying at 4, Will you buy it ? Most people will refuse to said, This is too expensive but when pandemic on going, Trend and Demands is the main game player.

If everyone going with a simple math, I guess most of everyone is stock guru. No more blogger and Everyone is a billionaire.

Instead of get misleading to reading those comment, Study the value of the company and understand the share Value . lol....

Posted by alvinchua87 > 2021-04-06 18:56 | Report Abuse

Slowly forming uptrend for PEB, good timing for trader and mid term investor

Posted by PureBULL ... > 2021-04-07 04:13 | Report Abuse

PEB :
I in some at 166-65 for 2nd batch. the price is at 2nd HIGHER low, a good pt to collect on dips.
tis an explosive stock n might have to chase like crazzzy when it u turns UP again soon.

the ex date for MGO at 1.07 was over on April 2nd.

Posted by Azshah > 2021-04-07 10:51 | Report Abuse

jazmaster said it right. If so easy, all of us very rich already.

As I write and read from the response to my comments, I am learning along the way to write in a more polite way as I now realise ppl don't like negative news as they have already invested into the stock.

Another risk I would like to point out is the following:

For those who have purchased property from the secondary market, you will realise that you can go for valuation shopping (i.e. there are always friendly valuer out there that can give a much higher value to the property, some to the extend of 50% above other valuers).

Likewise, the valuation of reNikola can also be pushed to a much higher value. Do remember that LBG is the founder of ZJ Advisory, he is a very astute corporate financier. Do you think he would sell reNikola at a low value to PEB ?

Just for clarity, assuming reNikola mean value ascribed by valuers is RM300 million. It is pushed to RM400 millon using a "friendly" valuer, an increase by RM100 million. The RM400 million will be approved by SC since its validated by the valuer.

Since LBG is an interested party, he can't vote for the acquisition. The fate of the acquisition will fall back to us minority shareholders.

Under normal circumstances, the minority won't vote for it as its RM100 million more than the mean. But do we have a choice in this case ?

I'm afraid we don't . Cause our cost is RM1.70. If we don't vote for, the deal collapses, the share price will fall back to its NA which is 0.96 sen. We will incur an immediate 70+% losess.

We are put in a position where our hands are tied under current market price. Even knowing reNikola is over valued, we will still vote for it cause the alternative is much worse.

Posted by The_Reds > 2021-04-07 13:53 | Report Abuse

current valuation VS future prospect, i will vote for the latter....likewise if 2 years ago u said Tesla share price will reach 600usd, everyone will think u are crazy

Posted by koxkox > 2021-04-07 14:26 | Report Abuse

Friendly valuer exists in everywhere - not only in equities but surely in properties as well. Had you purchased properties before? If yes, you should know that they are able to mark up the price to a certain extent. But 3rd party valuer for equities - especially listed ones are same but more regulated due to their reporting to Bursa & SC. Hence, I believe this is a potential markup but a 50%? It's not realistic lah

Posted by koxkox > 2021-04-07 14:26 | Report Abuse

lol

Posted by xetambaya > 2021-04-07 15:40 | Report Abuse

More wise to invest for future prospect instead of current valuation, but no one can predict the future - we can only use available info & number to make a forecast about what's gonna happen next.

That say, friendly valuer is fine to me as long it is regulated and make sense, in the end it's always ur own decision to invest or not.

Posted by twynstar > 2021-04-07 15:54 | Report Abuse

Lim Beng Guan, the new major shareholder of PEB, is a director in reNikola.

He expertise in corporate finance, not renewable energy.

He gets high paid from reNikola to maximize benefit for owners of reNIkola, not minor shareholders of PEB.

What will you do next if you were Lim Beng Guan?

Posted by jazmaster > 2021-04-08 17:07 | Report Abuse

I guess I'm a bit offensive but standing still to my personal opinion .

People concern more about the future value or the Current trend ?

Why not both, Solar is not working good ? Then Why Tesla and Alibaba is going this business.

Is about a convert century, data and energy will be what more concern in 5-10 years and even. In Japan, US and China. Tech and Energy is still on trend same goes to Malaysia.

Either PEB will be the leading company for Solar Sector. We will see it. During that time, The concern of everyone is different. Just like now, share price drop, you shout here shout there. But if you are a value investor. This is a company, why not buying it ? Uptrend you make profit, down trend , you make an average down.

Most important is not you buying expensive or cheap, Is you understand The value Behind it like winetime said.

Posted by ucrst2140q > 2021-04-08 17:12 | Report Abuse

not gonna speak it out, but there's lots of valid point from everyone here. being sceptical is fine since you gonna understand what are u gonna invest anyway.

Posted by ucrst2140q > 2021-04-08 17:17 | Report Abuse

hope the ppl here can help you to clear ur mind, its always nice to know the true value of a good company

Posted by uemcapital > 2021-04-08 17:20 | Report Abuse

Wahhh.. today all comment so long . Hahaah

Posted by ctth20 > 2021-04-08 17:45 | Report Abuse

From other solar company info, 12MW-15MW plant roughly cost 50mil-60mil.

reNikola is going to build a 330MW solar plant. Whats the cost?

I did ask the reNikola team during the live if they have the funding. They did not really answer the question. The host follow up asking them if they will do private placement to get part of the fund. No definitive answer either.

My main concern is how much funding they required for the 330MW plant?

They raised 390mil from sukuk.Is it enough?

I am a holder.

I like the story.

I am just poking around to try to understand more.

Asking question doesnt mean dislike PEB / dislike solar / spread bad words about the company.

Posted by terence775 > 2021-04-08 17:49 | Report Abuse

Wa... what high quality discussion here.

Posted by Azshah > 2021-04-09 09:21 | Report Abuse

Thanks winetime for your comment. I really enjoy the comments that has a different vantage points. Understanding other people's point of view always expand my knowledge on investment matters. The more I understand, I hope the better my stock picking skills becomes.

Posted by twynstar > 2021-04-12 23:53 | Report Abuse

Solar in Malaysia - challenges, and too much of a good thing?

https://www.thestar.com.my/business/business-news/2021/04/12/solar-in-malaysia---challenges-and-too-much-of-a-good-thing

Posted by justinwee87 > 2021-04-13 12:36 | Report Abuse

So many different opinion on this counter, Very good, It must be a well sharing counter,
Anyhow just read some quality article through and go through all the comment from above. I found out PEB is very good even there are different voice on the counter. Anyhow for future investing. My personal opinion for this counter is actually not and I had chip in a portion to PEB counter at early morning.

Posted by justinwee87 > 2021-04-13 12:41 | Report Abuse

What do you seek in investing in a company?



Is it Dividend? Capital Gain?



Or both?



Well, ultimately every single investor just wants to maximize their return at a level of risks that they are comfortable with. Most investors, however, are overly risk-adverse or risk-taking. It is extremely hard to strike a balance in between.



But if you are one of those risk-taking guys who are keen to aim for > 100% return, you had come to the right place. This company that I’m going to share with you is being underestimated by most investors – including mainstream medias. This undervalued gem is Pimpinan Ehsan Berhad (“PEB” or the “company”).

Posted by justinwee87 > 2021-04-13 12:44 | Report Abuse

In hindsight, you would not find anything interesting about the company itself as it is an empty shell where Bursa has categorized this company as “Cash Company”, and PEB had been tagged as a PN 16 company. To those who are new to the term, PN 16 is merely a grouping by Bursa for companies who do not have a core business or major revenue contributor after disposing their core business. PEB is one of the greatest examples of all.


Now, PEB is having a war chest of RM70.3 million ringgit in cash in the company, pending for potential expansion plans. But what’ so special about a company sitting with a pile of cash?

Nothing.

BUT! A huge but for this company is, PEB is undergoing a reverse takeover (“RTO”) exercise by reNIKOLA group of companies. I do not want to bore with the corporate structure of this company, but PEB is going to go big after the RTO.

Posted by justinwee87 > 2021-04-13 12:45 | Report Abuse

Why?

The newly injected “assets” are extremely valuable in my personal experience and based on market valuation in its peers. Upon completion of the RTO, PEB will be one of the largest solar renewable energy players in town. You heard me right – LARGEST SOLAR RENEWABLE ENERGY PLAYER.

The term “solar” and “renewable energy” is so hot in the market that, two newly listed companies in 2020 had transformed into multibaggers in a year of time. I do believe you know who are they, right?

Nevertheless, I must stress that PEB is different from the said solar companies. Imagine if the said solar companies are contractors, then PEB is the “developer & asset manager” in a property sense. In fact, PEB is the operator of solar farms that would be constructed by these companies.

Had you noticed that our country is going green?

It is not just “our country”, but the trend is on a global scale. Energy sector is transforming from the traditional coal fire electricity generation to renewable energy generation to reduce carbon emission to prevent further global warming. I like heat, but not in this way!

Factually, PEB currently had 3 in-operation solar photovoltaic plant on hand. The capacity of these plants is 5 MWp, 38 MWp and 45 MWp, respectively. How big is one MWp? An average household would consume approximately 20 kWh per day, and a 10 MWp solar power farm could translate into 14.9 GWh in power for household consumption.

In short, 1 kWh = 0.00000010 GWh. You can do the math.

reNIKOLA group of companies are having a total of 88 MWp of solar assets on hand and another huge solar farm of 330 MWp in capacity in the pipeline. Now do you see the potential of this company?

However, these assumptions are made on a successful RTO of PEB. Can it really be successful?

By no means I’m the seer in stock market. But rationally, the ultimate owners of reNIKOLA had purchased up to 66% of ownership in PEB with their cash. If you are the owner, would you let the deal fail?


I believe not.

Posted by justinwee87 > 2021-04-13 12:45 | Report Abuse

Hence, PEB’s RTO case is almost, indefinitely in the bag. Based on the company proposed timeline, the company should have a proper signing of share sales agreement (“SSA”) latest by June. How does that affect us?

I had mentioned that PEB could potentially give a 100% or more in return, right? To achieve that, the company MUST complete the injection of assets by issuing new shares. The market is currently valuing this company with a cash of RM70.3 million ringgit on hand at a total market capitalization of RM 111.0 million ringgit. I bet you couldn’t find any deal as such in the market!

Everyone is waiting for the valuation and dilutive effect of reNIKOLA to be finalized. But let me ask you this – if an information is public, how are you going to benefit from it?

You simply can’t.

This is why, buying PEB now is a potential risky move; but at the same time you could build a position in the company before the market knows about it. Do bear in mind the 66% of the shares are in the new management’s hand. They could not dispose it without making a public announcement, and as you can see from the chart, the share price is consolidating. What does this mean?

It means, someone is collecting PEB’s shares quietly.

If you cannot beat them, simply join them. PEB is one of the rare case where there is still opportunity to double due to lack of knowledge by the general public on the company.

Now, it is up to you to decide.

Do you want to chase after the share price when it spiked a 30% - 50%, or would you like to allocate an acceptable amount of capital for a potential 100% return investment?


I will leave the final decision to you.

Posted by justinwee87 > 2021-04-13 12:50 | Report Abuse

https://klse.i3investor.com/blogs/afsskylimit/2021-04-13-story-h1563303579-THIS_COMPANY_HAD_130_IN_SHARE_PRICE_WITHIN_3_MONTHS_HOW_FAR_CAN_IT_GO.jsp

Posted by justinwee87 > 2021-04-13 12:50 | Report Abuse

This is the article source by the way

Posted by ucrst2140q > 2021-04-13 15:45 | Report Abuse

Regarding about the Start article, more renewable energy is always a good thing, with good approach & regulation, I strongly believe solar energy is the future

Posted by ucrst2140q > 2021-04-13 15:49 | Report Abuse

Once the roadblock of this RTO is cleared, expect big turnaround from PEB

Posted by caonima > 2021-04-30 20:07 | Report Abuse

holland qr

Posted by terence775 > 2021-05-02 19:14 | Report Abuse

what did you expect? the company has no ongoing businesses LOL

Posted by terence775 > 2021-05-02 19:18 | Report Abuse

If you buy expecting the QR to show anything I really don't know what to say.

Posted by Azshah > 2021-05-06 09:48 | Report Abuse

why so quiet this forum ?. Now PEB RM1.50, for those who are so bullish, talking as if reNikola is the next slice bread should buy more. But seems like no buying action.

Posted by Azshah > 2021-05-06 09:49 | Report Abuse

I would buy at RM1.50, I think is good value

Posted by terence775 > 2021-05-10 14:09 | Report Abuse

Alamak, cannot every 5sen drop buy 100 lot right hahaa

Posted by Azshah > 2021-05-19 09:55 | Report Abuse

The price of reNikola is outrageous. PEB shareholders beware, buying reNikola that is grossly overstated. Latest news.

Posted by Azshah > 2021-05-19 09:55 | Report Abuse

I'm selling all my PEB shares.

Posted by TSN001 > 2021-05-19 10:58 | Report Abuse

Appreciate you share the latest news.

Posted by Rinshad26 > 2021-05-20 10:37 | Report Abuse

go go peb

Posted by Azshah > 2021-05-20 10:41 | Report Abuse

the push up in price is to build momentum for the eventual purchase of reNikola by PEB which is coming soon.

Posted by terence775 > 2021-05-20 10:48 | Report Abuse

Azshah, changing your mind so quickly?

Posted by Azshah > 2021-05-21 16:46 | Report Abuse

let's wait for today or early next week announcement on the purchase of reNikola....A lot of you guys will be dissapointed.

Posted by Azshah > 2021-05-21 16:48 | Report Abuse

let us all vote "No" to the exorbitant purchase price

Posted by terence775 > 2021-05-24 10:05 | Report Abuse

How can you vote when you've already sold your shares? haha

Posted by ilovesoya > 2021-05-24 16:34 | Report Abuse

What does the latest proposal means? lol

Posted by terence775 > 2021-05-24 17:09 | Report Abuse

It means they have terminated the proposal to delist the company.

Posted by terence775 > 2021-05-24 17:20 | Report Abuse

Bro RM 373mil to acquire the whole of renikola is expensive? are you crazy? it's cheap!

Posted by Goldberg > 2021-05-24 17:29 | Report Abuse

JOINT PRESS STATEMENT / SIARAN AKHBAR
(FOR IMMEDIATE RELEASE)

PIMPINAN EHSAN INKS SHARE SALE AGREEMENT TO ACQUIRE RENEWABLE ENERGY COMPANY, reNIKOLA HOLDINGS, FOR RM373 MILLION

Kuala Lumpur, 24 May 2021 – Main Market-listed Pimpinan Ehsan Berhad (“PEB” or the “Company”) announced it has, today, entered into a conditional share sale agreement (“SSA”) with renewable energy company, reNIKOLA Sdn. Bhd. (“reNIKOLA”), as well as Boumhidi Abdelali (“Adel”) and YAM Tengku Zaiton Ibni Sultan Abu Bakar, for the proposed acquisition of the entire equity interests in reNIKOLA Holdings Sdn. Bhd. (“reNIKOLA Holdings”) for a total purchase consideration of RM373 million (“Purchase Consideration”), to be satisfied by issuance of new ordinary PEB shares at RM1.07 per share (“Proposed Acquisition”).

The SSA is entered into pursuant to the Heads of Agreement inked earlier on 19 February 2021.
reNIKOLA Holdings is proposed to comprise the following wholly-owned companies:-

(i) reNIKOLA (Arau) Sdn. Bhd.;
(ii) reNIKOLA (Gebeng) Sdn. Bhd.;
(iii) reNIKOLA (Pekan) Sdn. Bhd.;
(iv) reNIKOLA Solar Sdn. Bhd.; and
(v) reNIKOLA (BKH) Sdn. Bhd..
(collectively known as the “Acquiree Companies”)

The Purchase Consideration was arrived at on a “willing buyer-willing seller” basis based on the Acquiree Companies’ fair equity value of RM377 million.