In 2017, we introduced PMB Silicon into our portfolio. Operating from Sarawak, Malaysia, our plant uses renewable energy (hydroelectric) and follows strict industry and sustainable practices in our manufacturing process. The Group’s vision is to become a global player in the production of silicon metal and aluminium fabrication industry.
PMB Silicon is located in Samalaju Industrial Park Sarawak, in an area regulated by the Department of Environment Malaysia. It is built within an area planned for five phases of development and facilitated by two purpose-built ports.
Sarawak is also blessed with high annual rainfall and an abundance of rivers that provide affordable and renewable energy to power our plant. There is also an abundance of high-quality raw materials to ensure our supply chain is never disrupted.
As part of the long-awaited tariff update, Biden will increase tariffs this year under Section 301 of the Trade Act of 1974 from 25% to 100% on EVs, bringing total duties to 102.5%, from 7.5% to 25% on lithium-ion EV batteries and other battery parts and from 25% to 50% on photovoltaic cells used to make solar panels. Some critical minerals will have their tariffs raised from nothing to 25%.
Silicon Metal Price Weakness: Silicon metal prices are currently weak due to a dramatic increase in supply. This is likely due to Chinese producers expanding production beyond reasonable levels.
Check how's the other same industry player, OMH performs, and we will have a rough idea of what the hell of slums of this silicon market are ahead of us
First quarter 2024 earnings released: EPS: RM0.001 (vs RM0.008 in 1Q 2023) First quarter 2024 results: EPS: RM0.001 (down from RM0.008 in 1Q 2023). Revenue: RM264.3m (down 3.9% from 1Q 2023). Net income: RM1.18m (down 88% from 1Q 2023). Profit margin: 0.4% (down from 3.5% in 1Q 2023). Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Metals and Mining industry in Malaysia.
Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings.
KUCHING: PMB Technology Bhd’s metallic silicon plant in Samalaju Industrial Park, Bintulu will raise its annual production by 36,000 tonnes more when its phase three expansion project is operational by September this year.
The furnaces for the phase are currently under testing and commissioning, and are expected to commence production by third quarter 2024 (3Q24).
The related capital expenditure together with the improvement works for the existing facilities, RM320mil, was incurred in financial year 2023 (FY23).
“With both phase one and two up running, the group’s combined annual installed capacity is 108,000 tonnes with a total power of 129MW secured with Syarikat Sesco Bhd,” according to PMB Technology in its 2023 annual report.
PMB Technology is an associate of Press Metal Aluminium Holdings Bhd, which is South-East Asia’s largest integrated aluminum producer having manufacturing facilities in Samalaju Industrial Park and Mukah, Sarawak.
PMB Technology embarked on the phase three expansion project after securing an additional 25MW of electricity from Sesco in October 2022.
The plant’s phase one, which also has an installed production capacity of 36,000 tonnes per annum, started production six years ago. The plant’s capacity was doubled to 72,000 tonnes per annum on commissioning of the phase two in 2020.
The group will continue to explore its potential expansion in Sabah despite an earlier decision not to further extend the period of the memorandum of understanding (MoU) that PMB Technology signed with Sabah Oil & Gas Development Corp, which lapsed on March 28, 2024.
Under the MoU, PMB Technology was exploring the potential sub-lease or sale of 200 acres of land at Sipitang Oil and Gas Industrial Park, Sabah, and the development of a new silicon metal production plant there, with sufficient, constant and steady supply of natural gas at acceptable rates to the company.
Its wholly-owned subsidiary PMB Silicon Sdn Bhd undertakes the metallic silicon manufacturing operations.
Global silicon prices, according to PMB Technology, exhibited a steady decline throughout most of 2023 and ended the year down about 23% despite a strong rebound in 4Q23.
Output outside of China fell during the year as several producers curtailed output due to the challenging market conditions.
This reduction in output was, however, insufficient to offset the lacklustre demand outside of China which remained below the level reached in 2018.
And as output in China during the year was stable and adequate to meet demand, the industry was tipped over into an oversupply situation.
In 1Q24, PMB Technology group chief executive officer Koon Poh Ming said the silicon market indices registered a divergence in performance between Asian and western markets.
“Despite a pickup in activity, price levels in China fell during the quarter as supply continued to outstrip demand, prompting destocking efforts across the industry.
“However, market conditions in China are likely to improve going forward as government measures to revive the property sector and bolster the country’s economic recovery should have a positive impact on the industry.
“On the other hand, persistent supply-side constraints caused prices in Europe and the United States to continue to trend upwards from the preceding quarter. Reduced imports and shipping disruptions contributed to the surge in price levels.
“The sustainability of the higher price levels will eventually depend on underlying demand conditions, which displayed signs of improvement in the first quarter, however, lingering concern about inflation and interest rates cloud the outlook for the rest of the year,” he said when commenting on current year prospects when the company released its 1Q24 financial results recently.
Koon said the group continues to place emphasis on further improving its competitiveness in the global market by driving improvement in operational efficiency and cost reduction.
“In particular, our ongoing efforts to improve the mix of our raw material supply, by seeking supply from reliable sources that are within a closer proximity to our production facilities, have begun yielding encouraging results.
“Our persistent focus on strengthening our position in the industry will improve our chances of capturing a greater share of the market opportunities going forward,” added Koon.
very strange , first because ev and data center then demand of electricity up and tenaga share price up, then goreng companies which support tenaga like those who supply cables, and transformer , even the superlon who supplies condm for aircond pipe alsi they goreng, but is not that pmbtech making silicon sheet metals which is raw materials for making transformers ? why pmbtech price like shit ? what is the story behind ?
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....
faridfet
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Posted by faridfet > 2023-11-30 10:52 | Report Abuse
@BursaVulture is correct.. you all semua sudah kena.. K.O