Half cent a day is better than dropping 2 cents. haha
The largest Malaysia solar power producer is probabaly from reNIKOLA, which is currently being built in Kedah (330MWp) and plan to be injected into Pimpinan Ehsan Bhd. Few days back, NST reported that there would be another large (probably largest) solar site (450MW) in Pengerang, Johor. This might be part of LSS4 to be awarded by Energy Commission. Refer to this webpage : https://www.nst.com.my/news/nation/2021/02/669759/johor-set-become-countrys-largest-solar-power-producer
The announcement said there would groundbreaking ceremony on 23 March 2021, hence industry players are speculating that LSS4 would be announced by this week. However, the announcement by EC might be delayed once again. Guess who are the winner for this project? haha
From the volume, buy and sell queue looks like it will break R1 23.5c anytime soon. Strong buy queue at 22.0c on last Friday, however there is also big selling queue north of share price. Probably operators are yet to be done with accumulation.
With regards to LSS4, the management may have anticipated the cut throat bidding price and the return may not be lucrative as previous LSS award. Hence, it could be wise to stay out from putting a bid and focus on completing their solar asset in Perak. Besides, they have also registered for NEM 3.0, which will open up for more income from solar. Coral Power (70% Minetech subsidiary), won the LSS2 award, and the rate is almost double than LSS4. For information, LSS1 (for up to 10MWac) have seen an average price range of above 40c/kWh, LSS2, at 40c/kWh, LSS3 at below 30c/kWh, and LSS4 at below 24c/kWh.
Based on announcement from Ocean Vantage Holdings (OVH), subcontractor for Andeli Solar (main contractor for Minetec solar asset), they have completed MYR10mil out of MYR30mil award up to 31 Dec 2020. The remaining works may be completed within this quarter if not for MCO. Once operational, it would be recurring income for Minetec.
The recent Selinsing, Pahang gold mining site 3-year contract extension (MYR70mil) is also another positive development for Minetec, as the average contract price is worth approximately MYR23mil/year. This is higher than the previous contract extension value <MYR18mil/year. It is understandable that during period, gold prices is at new high, hence the higher contract value award. This prolific gold mine site, which have been operating from 2009, will provide earning visibility until 2022 for Minetec, and probably beyond that.
Coupled with the wrap up of acquisition of fintech company, Uniqa, Minetec would have another new source of income instead of their traditional expertise.
This is not a buy call, and it is up to your discretion to decide. I do not what future would be, but currently I am positive about the company prospect.
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....
peterchua
41 posts
Posted by peterchua > 2021-03-09 18:54 | Report Abuse
Half cent a day is better than dropping 2 cents. haha
The largest Malaysia solar power producer is probabaly from reNIKOLA, which is currently being built in Kedah (330MWp) and plan to be injected into Pimpinan Ehsan Bhd. Few days back, NST reported that there would be another large (probably largest) solar site (450MW) in Pengerang, Johor. This might be part of LSS4 to be awarded by Energy Commission. Refer to this webpage : https://www.nst.com.my/news/nation/2021/02/669759/johor-set-become-countrys-largest-solar-power-producer
The announcement said there would groundbreaking ceremony on 23 March 2021, hence industry players are speculating that LSS4 would be announced by this week. However, the announcement by EC might be delayed once again. Guess who are the winner for this project? haha