Posted by monetary > 2019-10-19 07:53 | Report Abuse

Hi. M new here. Does 5G really bring more rental rev to ock? The 5G providers will b the same telco n they r existing tenants of ock towers. Basically there is no new tenant. Perhaps the telco need to install smaller devices in the metropolitan areas. Does ock do that? Pls advice.

Posted by sosfinance > 2019-10-19 09:22 | Report Abuse

1) Detail of NFCP https://www.malaymail.com/news/malaysia/2019/09/03/national-fiberisation-and-connectivity-plan-is-not-a-mega-project-mcmc-clar/1786935

2) "with opportunities spread across the construction, operation, and maintenance of the digital infrastructure"

3) NFCP RM21.6b - many areas OCK can participate. OCK has done EPCC work on fiberisation work in Cambodia. Maintenance work also provides recurring income. Few years back OCK benefited from local 4G LTE, so 5G, it will benefit also.

4) 5G requires different type of towers and functionality, cater for short distance (less than 100m), briefly seen here https://www.lifewire.com/5g-cell-towers-4584192

Posted by monetary > 2019-10-19 11:38 | Report Abuse

Thanks, sosfinance. Can I make the following assumptions?
1. Ock will continue to benefit from 4g LTE in rural areas where ock has spent huge capex for the past few yrs n now it reaps the fruits.
2. The true beneficiaries of 5G r those who install the small cell towers n equipments. These equipments either from Huawei or Ericsson.Those who involves in fiber networking will also benefit from 5G.

Posted by Lee1045 > 2019-10-19 19:05 | Report Abuse

投资上兆人民币 中国5G建设如何破解高成本？
http://www.enanyang.my/?p=1304694

Posted by Lee1045 > 2019-10-19 19:09 | Report Abuse

根据以上所说的，马来西亚需要更多的电讯塔。OCK将得到更大的推动。

Posted by Shawn Ng > 2019-10-19 19:40 | Report Abuse

Hit 0.645 next week

Posted by Kakitapau > 2019-10-19 20:26 | Report Abuse

monday gap up

Posted by monetary > 2019-10-20 09:19 | Report Abuse

https://www.lifewire.com/5g-challenges-4580354
5G networks are operating on high radio frequencies called millimeter waves, which have the benefit of being able to carry lots of data but are limited in range (often to less than one square mile). Therefore smallcells r needed to fill the 'gap'. A macrocell cost Rm300k & takes months to build whereas smallcell costs a tiny fraction of the macrocell & take a few hrs to install. Unless geographical landscape limitations present, smallcell will solve the 5G short wave length problem.

Posted by monetary > 2019-10-20 09:25 | Report Abuse

I think OCK investment thesis is identical to landlord. Now it has plenty of assets occupied by good tenants. When the rental incomes slowly pair down it's borrowing we will see earning improvement as a result of lower finance cost. Sosfinance. Pls advice if I m wrong.

Posted by sosfinance > 2019-10-20 11:44 | Report Abuse

OCK has invested up to RM600m in towers, and leased to major telcos for 5-20 years. And some most of the towers can be leased up to 2-3 telcos. At the moment, OCK average tenancy ratio is 1.3-1.4x, and has the capacity to grow up to 2x.

The cash flow yield will be exponential as the cost of maintenance for one, two or three tenants on the tower.
I understand their loan for tower is for 6-7 years, hence, when they pay down the loans, interest will be reduced, earnings will improve.

FYE18 depreciation is RM37m. FYE19 is estimated to be RM60m. Maintenance cost is only a fraction of depreciation.

Posted by monetary > 2019-10-20 11:58 | Report Abuse

Thank again, sosfinance. Yes. depreciation is an item tat I missed. It's just accounting practice but not a real loss or expenditure. Once towers r fully deprecated accounting profit will b handsome. May I know the depreciation time frame?

Posted by Davidyeap > 2019-10-20 13:41 | Report Abuse

OCK 19/10/2019 rebound on support uptrend line ,0.640 is the next target?If breaking 0.665 this stock will have stronger movement

Posted by sosfinance > 2019-10-20 14:30 | Report Abuse

@monetary, normally is 20 years. When we rent our properties to tenants, how many of us really calculate rental yield after depreciation of the properties?

First few years after construction of new towers, the maintenance is very low, unlike the acquisitions of old towers in Vietnam, initial refurbishments is required to prolong the life of the towers. In reality, if maintained well, the towers useful life can exceed 30 over years.

OCK bought 1,983 towers in early 2017 in Vietnam. By end of 2018, the number of towers increased to 2,500 towers. OCK and its JV partners, did not raise any funds to purchase the additional towers, which means, Vietnam existing towers can generate sufficient cash flows to purchase about 500 additional towers without raising new funds.

Posted by monetary > 2019-10-20 19:23 | Report Abuse

TQVM. OCK is indeed a good business model.

Posted by sosfinance > 2019-10-21 07:31 | Report Abuse

1. Tower biz is cash flow rich but profit and loss slow due to depreciation and interest costs

2. While tower biz is expanding, Myanmar tower biz was delayed for almost 2 years

3. Not everything is hunky-dory, Vietnam faces headwind when OCK needs to spend some money to refurbish the older towers to maintain its useful life, acquisition costs, while the TNS segment on contracting biz faces headwinds pre and post GE as telcos is holding back capex spending due to uncertainty of direction on telco policies (FYE17 & 18), the servicing side also faces margin squeeze and forex loss in Indonesia.

4. With LSS3 and NFCP in line, OCK stands to benefit from it in a significant way.

5. One analyst mentioned there may be a re-rating on Vietnam acquisition of another thousand towers.

6. IPO on towerco biz is a medium term catalyst.

7. Despite all the events, market sentiments play a significant role as well.

Posted by sosfinance > 2019-10-21 09:48 | Report Abuse

OCK 62 sen, WA 11.5 sen, Mother is 5.4x of WA, about 14 months to expiry for WA.

For higher risk taker, WA appears interesting as well.

For every 5.5 sen up mother share, WA only needs to go up 1 sen. On a pretext of higher earnings, secure contracts for LSS3, NFCP, Vietnam Acquisition of towers, Listing of Towerco biz (medium term), re-rating is very possible.

Posted by kahsoon888 > 2019-10-21 13:44 | Report Abuse

Price will sustain 0.6x till PP

Posted by sosfinance > 2019-10-21 15:18 | Report Abuse

Many warrants collected between 11.0 sen to 11.5 sen for the last one month. No one will know whether the price will goes up pre or post PP. Some goes up before, some after, and some delay. It may go up gradually until the announcement of 3Q.

Posted by Ahead1268 > 2019-10-21 18:25 | Report Abuse

Can see collection mode, hard to go up.

Posted by Lee1045 > 2019-10-21 19:10 | Report Abuse

Just wait until 3qr announcement....

Posted by bargadcapital > 2019-10-22 14:33 |

Post removed.Why?

Posted by sohaitrader > 2019-10-23 14:34 | Report Abuse

nid to break aboev 635 ...

Posted by Lee1045 > 2019-10-24 00:46 | Report Abuse

Consolidation will continue until this month end. Just patient....

Posted by kahsoon888 > 2019-10-24 13:37 | Report Abuse

John chew, u really hate Calvin

Posted by milodrinker > 2019-10-24 18:16 | Report Abuse

When is the 3qtr will be announced ?? Thanks

Posted by Lee1045 > 2019-10-24 19:40 | Report Abuse

Normally is 28th Nov.

Posted by milodrinker > 2019-10-24 20:06 | Report Abuse

Thanks lee1045

Posted by sohaitrader > 2019-10-25 17:23 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/6322405

Posted by sosfinance > 2019-10-25 18:01 | Report Abuse

PP so fast this round, must be deal will be concluding soon. That's positive news.

Posted by win1661 > 2019-10-26 12:41 | Report Abuse

The share was blocked f from moving up for weeks to set the PP price, and finally done. Now what?

Posted by sonyx123 > 2019-10-26 17:43 | Report Abuse

wait for show then. Hope it flies to the moon

Posted by cicakman > 2019-10-26 19:45 | Report Abuse

John Chew 31,Calvin has many name and even thanks himself .

Posted by cicakman > 2019-10-26 19:49 | Report Abuse

He held netx tightly cz he can't sell and loss opportunities.Well ,in 3 years time,he then come and say he is right.

Posted by bpng0904 > 2019-10-28 21:08 | Report Abuse

sosfinance is still here, i really salute you. OCK is my first big loss in stock market, hopefully myeg is not my second big loss. All OCK investors, be like sosfinance, be a long term investor. Good luck!

Posted by kahsoon888 > 2019-10-29 07:12 | Report Abuse

Pp fast...Good.. can move up jor

Posted by kahsoon888 > 2019-10-29 07:14 | Report Abuse

Bpng, how big losses?

Posted by Asy_Mett > 2019-10-29 10:15 | Report Abuse

OCK sleep

Posted by Woodswater > 2019-10-29 11:43 | Report Abuse

Tingtongbell

Posted by sosfinance > 2019-10-29 11:51 | Report Abuse

@bpng0904 most people make huge losses if they bought small cap stocks during its peak, unless they average at their low. Most small cap rebounded 50-100% from their low, but still 20-40%off its peak. Yes, OCK delayed it’s Myanmar tower project for 2 years due to Telenor changes their planning locations from geographical to demographic coverage. Hence, profits growth delayed for 2 years. Those who bought around 45-55sen will be rewarded later as the growth starts coming in FYE19/20. So, I am hanging on tight, as my average price is 60 sen. Hopefully its gloomy days are over. I just like their long term towerco biz.

MYEG is also an interesting stock, but bashed due to post GE, causes lots of uncertainty on renewals. It already dropped from RM9b to RM4b, I believe if they can renew its concessions, it has a good upside potential. So, it’s a billion dollar questions, but lately came down due to foreign investors. Have to wait till most of foreign selling complete, then is a better time to accumulate and also some of the renewals. Good luck to your MYEG as well.

Posted by ttt > 2019-10-29 14:14 | Report Abuse

anyone know roughly who they will place the 10 % out to ? some one in the industry ?

Posted by Fooksing Wong > 2019-10-29 18:35 | Report Abuse

yes, will sleep awhile , but next month will fly :)

Posted by kahsoon888 > 2019-10-29 19:58 | Report Abuse

Sleeping beauty ...

Posted by sosfinance > 2019-10-30 11:07 | Report Abuse

initial stage, cash flow is higher than profit and loss, due to depreciation and interest expense, when the tenancy ratio is gradually improving from 1.0x to 1.4x concurrent with the increase of number of towers. Good news is there is still potential in gradual increase of tenancy ratio from 1.4x to 1.6x, additional cash flow and profit and loss, with minimal cost. Accumulate when volume is low.

Posted by Lee1045 > 2019-10-30 12:04 | Report Abuse

Maybe this two day will shoot up

Posted by Fooksing Wong > 2019-10-30 18:23 | Report Abuse

break 0.700 no problem . just need time . maybe next month ? maybe december . but i still believe OCK quater report not bad :)

Posted by Fooksing Wong > 2019-10-30 18:25 | Report Abuse

normally 1 stock got good news or good report , price sure up abit 1st.

Posted by PresidentRotiCanai > 2019-10-30 18:32 | Report Abuse

Finally wake up a bit. The chart looks like Dsonic before spike up

Posted by win1661 > 2019-10-30 19:34 | Report Abuse

compare to Dsonic? back in May both around 0.4+, now one above 1.0+ and the other barely can stay above 0.6.... don't even know when can it break 1.0 or never?

Posted by PresidentRotiCanai > 2019-10-30 21:47 | Report Abuse

Macd golden cross... Suiiiiii

Posted by Fooksing Wong > 2019-10-30 22:05 | Report Abuse

President roticanai , I agree what you say. Macd cross already, let.we see show soon :)