According to a cosec of a PLC, the deadline to implement "capitalisation of share premium into share capital" is 31 Jan 2019. The effective date of this compliance is 1.2.2017. Company can choose to implement bonus issue to utilised the share premium (with free warrants is also possible).
OCK share capital is RM87m. Share Premium is RM157m. It has the ability to issue bonus 3 for 2.
The more crucial issue is OCK: 1) signing long term co-tenancy with MPT in Myanmar; and 2) to seal the remaining 2,000 towers, build and lease back with Telenor.
These 2 events can happen in less than 6 months time, and UOB indicated, rerating will be due after achieving both events.
This is definitely an "ADD" suggestion on OCK! Any weakness is serve as buying opportunities! OCK-WA is looking very attractive to buy even at current price and the upside potential is looking more lucrative! Technical is showing VERY BULLISH entry sign after both OCK and OCK-WA have shown successfully broken from the uncharted territory for the second time in very short period! Technical projection is seeing target at 0.95/0.97/1.03 for OCK. Since current market is looking very bullish in movement, its warrant is deserve to trade with higher premium, as we can see many warrants are traded very aggressively recently with higher premium valuation. However, the current premium for OCK-WA is little low, and it is deserves to see at least a 15% or above in premium for OCK-WA! With 15% premium based on the above projection target on OCK, OCK-WA should worth 0.38/0.405/0.475!!! What about the warrant price is going to trade with above 15% premium since the market is so bullish??? It should price even higher!!! I'm foreseeing soon OCK-WA will be going push higher to 15% or above in premium by tapping into this market bull run, supported by both OCK and OCK-WA are trading at its uncharted territory level as well as with its future prospects!!! Good luck folks!
OCK has a paid up of RM87m and Share Premium of RM157m. There is high probability of proposed bonus issue of 3 for 2 (and balance in free bonus warrants) under the new companies Act. Besides, PAT CAGR is 31% for FY17 and FY18 as per UOB KayHian.
Take note closely on its warrant WA. The premium is simply price too low, it may going to to fly up higher and faster than the the mother's price movement. Good luck!
Shareholder question on Indonesia deal : Why PMT can growing so fast after acquisitive by OCK. Site management has been double from 11k(FY14)->28k(FY16), with 20% of Indonesia market.
Shareholder question on Vietnam deal : What is the benefit of consolidate other independent towerco in Vietnam ? Does the consolidate required additional cash call ? Golden tower aims to roll out 5800 towers through the consolidation of existing tower , in fact they has been aggressively acquisitive towerco since 2015, How OCK overcome current competitor, understand that SEATH is the largest towerco in Vietnam currently?
Shareholder question on Myanmar deal : 1)By end of 2017, Myanmar is targeting to build another 17300towers The Allocation as mention below MNO : 4000, Edotco : 5000 EFT/MIG/OCK : 8000 However tower build had naturally slowed down partly due to reduce capex allocated by operator and focus on urban area to support data demand, which has exceeded expectations. Based on the challenges, How OCK management react to securing another 2080 towers ?(OCK target 3k - 920)
I believe most of the Analysts in Malaysia was too conservative by evaluate OCK Myanmar using 1x tenancy ratio. Understand that OCK is consider as 3rd generation towercos but wasn't management team need to clarify to analysts that we deserve better tenancy ratio. The tenancy ratio for edotco is currently at 1.9 while MIG is already at 1.6 on a fairly modest portfolio of approximately 100 towers.
Some of the Myanmar towerco is exiting tower business example MIG,PAMEL as they claim valuations are declining in Myanmar. How new entrant OCK react ? Understand that current 4G rollout and the fourth MNO launch.
General question :
According to a cosec of a PLC, the deadline to implement "capitalisation of share premium into share capital" is 31 Jan 2019. The effective date of this compliance is 1.2.2017. Company can choose to implement bonus issue to utilised the share premium (with free warrants is also possible). OCK share capital is RM87m. Share Premium is RM157m. It has the ability to issue bonus 3 for 2. Is it correct?
Based on my observations and calculations after the market closed today, all the technical indicators for ock are shaping up well and the price is poised to charge higher-up to the next level...
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....
Jenas Tan
160 posts
Posted by Jenas Tan > 2017-03-17 15:11 | Report Abuse
Lol...where is the crowd