normally after private placement, substantial shareholder usually will sell part of the share to market to maintain market liquity as their shareholding % is too much
Anyhow , it is great to see Kpower and SCIB standing strong in -20point storm. This mean ppl dun simply sell these 2 stock and , actually many are waiting to buyyyyy.
most investors in SCIB are long term investors planning to hold the share to the moon so they have to give up their share to provide more liquidity in market
With a rich historical record of supplying industrialised building systems (IBS) and precast products to key jobs in Sarawak, Sarawak Consolidated Industries Bhd’s (SCIB) new strategy to establish themselves as a contractor in Sarawak is extremely timely as it is ahead of Sarawak’s 2021 state elections which would be held latest by September 2021.
Drawing experience from the 2016 state elections, researchers with Kenanga Investment Bank Bhd (Kenanga Research) noted that the quantum of state budget allocations (from 2012 to 2016) gradually built up to the highest in the election year itself.
“We are convinced that 2021 state budget would likely be a record budget – higher than 2019’s record of RM11.9 billion, providing huge contracting opportunities for SCIB,” it said in a corproate outlook on the company yesterday.
Amongst key mega projects within the state are the Coastal road, Second Trunk Road, Sabah-Sarawak Link Road and the Sarawak Water Grid programme.
“Construction aside, SCIB is the largest precast concrete and IBS manufacturer in East Malaysia, operating three integrated factories based in Sarawak with a total annual capacity of 500k tonnes.
“Owning a manufacturing arm for the prefabrication materials, the vertical integration gives SCIB an added advantage when tendering for jobs. This also protects project margins for SCIB, as they can source prefabrication materials in-house rather than externally – enhancing their competitiveness for projects tenders.”
SCIB also continues to gain from its overseas markets, Kenanga Research said, with one key target market being the Middle East, having already secured some contracts in Qatar and Oman. Outside the Middle East, SCIB is also targeting Indonesia.
“In Qatar, one biggest catalyst would be the World Cup 2022, where the state has been reportedly spending US$500 million per week on capital projects,” it added. “In total, the state is expected to spend US$200 billion in preparation for 2022.
“This is on top of other surrounding infrastructures, such as residential and commercial areas, roads, airports and hospitals to accommodate the global sporting event.
“While most of the direct tenders related to the World Cup event have already been awarded out, SCIB could still participate in sub-bids and other private-sector developments that are being pushed in tandem of 2022,” it opined.
Meanwhile for Oman, the sleepy port town of Duqm has been gazetted as a special economic zone. The state has the ambitions of making the town one of the largest economic projects in the Middle East and in the world, with a generous land space of 2,000 square kilometres.
Currently, a slew of Chinese firms have already poured in billions worth of investments into the region, seeing this as a greater extension of the Belt and Road initiative.
Closer to home, the relocation of its capital from Jakarta to East Kalimantan is reported to cost a total of US$33 billion in new developments.
“With East Kalimantan being also in the Borneo islands and in close proximity of Sarawak, SCIB could also gain a somewhat geographical advantage in new opportunities there,” it concluded.
Need to see how fast the management collect the contracts money from customers, in order to release good qr result. Hope management can collect faster from customers.
Personally, not my cup of tea when director talk about future market cap target.. prefer when they talk more about the business, earnings and etc. Just felt the focus is off.
没错的,大老板的确设下RM62 mil 净利目标在2020财政年!. First Quarter RM4,276,000 Second Quarter RM5,076,000 那么,第三,第四业绩净利估计: Third quarter RM26,328,500 Fourth Quarter RM26,328,500 全年每股盈利RM0.5055. (不计算红股后的股数的话,122,630,000)
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....
RugiOhRugi
13 posts
Posted by RugiOhRugi > 2020-09-03 07:29 | Report Abuse
Drop around 3.20 nice to go in again...