This newly acquired company is already a player in large scale solar in Sabah. This acquisition likely for soon to be announced 500MW LSS phase 3 contracts.
PP money is meant to use to grow the green energy biz... well, ock willing to spent 31m for this co...it must have something that ock really interested in i think..
Group managing director Sam Ooi Chin Khoon said this was a synergistic (proposed) acquisition as OCK continued to drive and expand recurring income derived from solar farms business segment."OCK is a turnkey solutions provider in the solar business, equipped with engineering, procurement and construction capabilities, as well as owns solar farms."We will continue to participate in more initiatives within the solar renewable energy industry in Malaysia,” he said in a statement.
Green Leadership is currently in the business of electrical, mechanical, motor, and generation of power including all forms of renewable energy power generation.
Looks like the RM32m acquisition received lukewarm reply. No details on any recurring assets, like ownership of any solar farms, contracts or prospects. Hope they have other exciting news coming.
"Visit with Minister of Energy, Green Technology and Water, Datuk Seri Panglima Dr Maximus Johnity Ongkili to the first Solar Farm at the proposed Keningau Green Industrial Park wholly owned by the service provider, Green Leadership Sdn Bhd on 11 January, 2015."
just few months back.. someone tried compare ock with dsonic to get people to buy.. that time ock above 0.6, dsonic already above 1.0+. since then dsonic move up 50% again and where is ock today? so i would be extra careful with this cunning ock....
hahaha win1661.... at first u ask for the stock to drop back to 0.50 to buy cause u cut loss and now you say OCK is a cunning stock..... so sour grapes la u
sure or not I'm very sure it is not your problem because I have been monitoring this stock for almost 4 months and I bought this stock below 0.59, I have no problem waiting
well, the thing about 5G installation is that it involves micro-cells. I am thinking if do you really need a certain expertise for the installation of micro-cells since its probably about the size of the router and can be cheaply installed and maintained. Wondering if Telcos actually need OCK fo this.
1) This stock needs more analysts to cover. EBITDA of towerco is RM70+ million x multiple of 11 = RM800m. Edotco did it at multiple of 12.5x (for reference). No towerco is listed on Bursa, basically operating cash flow is much better than P&L. It it more appropriate to use EBITDA to value towerco, which is the market practice.
2) Older solar pv cost ranges from RM8-10m (50-60% more expensive against new solar pv, but with higher tariff), assuming they bought 3MW plus (Green Leadership). Solar payback period is about 7 years.
Both towerco and solar is capital intensive (spent RM600m plus, but provide long term sustainable cash flow).
Because solar plants need time to build. so there will be accounting losses during construction. From the sound of it, should commence operation soon and generate sustainable cash flow, presumably selling back to the grid to TNB.
and supported by IRR model is a stupid reason. they should more forms of justification. If it is true there would be a sustainable cashflow, i'm sure the purchase comes with some form of guaranteed profits else whats the risk if there is no generation.
i hope they make a better investment with their balance RM21 million from the placement
u can have a positive IRR but have a 20 years+ payback period.......... and by then, solar panels would be even cheaper... the last i check Green Leadership has i think 1 or 2 MW of solar. These days, on average a MW would cost about RM5 - 7m , depending on the type. So given 2 MW, at most, it would be worth RM15m
I think the acquisition of green leadership is not just for the their solar farms, but their expertise in renewable energy, perhaps putting them at a better position to bid for LSSPV projects in the future. Also,no solar farms have a 20 years payback period. LSSPV plants in Malaysia have a PPA of about 20 years only. The tariffs are fixed upfront, derived from the target IRRs of the owners. So it doesn't matter how cheap solar panels will be in the future. Existing plants will not be undercut.
Lich Because solar plants need time to build. so there will be accounting losses during construction. From the sound of it, should commence operation soon and generate sustainable cash flow, presumably selling back to the grid to TNB.
Sure boh Lich.... all construction related cost can be capitalised an depreciated over the years when it start operation..... else where do u get the fixed assets when it is written off immediately....
the loss is other things related and not construction related....
<SOLAR> Typical solar PV is 6-7 years payback period. In the PPA, tariff is fixed, normally for 21 years from SEDA. Older PPA has higher tariff as the cost of construction is much higher. As long as we do not have the details, it is not possible to evaluate whether they over or under pay. LSS3 estimates the cost of construction is about RM4m per MW (RM2.0b for 500MW).
<If we looked at the research report, the research houses used the enlarged capital after conversion of warrants to arrive at the target price, say 75 sen. However, it did not take into account the proceeds from the conversion, about RM187m, which is worth another 16 sen. Hence, the adjusted TP should be 91 sen>
<The spinoff to the PE will also bring in 15 to 20 sen per share, timing is essence for their warrants conversion>
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Platypus88
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Posted by Platypus88 > 2019-12-20 20:59 | Report Abuse
so is this good or bad investment? what kind of company is this???? how come no details one?????? why buy solar? should they not be busy with 5g?