Didn't this impair already known since Nov and Dec and was mentioned in last QR . Before Nov or DEC , this counter is above 0.30cts or even at 0.40cts . Thereafter the news of losing court battle , it stay in range 0.22 to 0.26+++ since.
In the previous quarter EATECH has made a provision of RM42.6millon for the EPCIC dispute. With the final settlement sum at RM104.7million, they would need at least an additional provision of RM62.1million (unclear what are the agreed payment terms or if this is still subject to negotiations). No doubt that this will seriously drag performance for at least another 2 quarters and the share price will likely remain suppressed for some time unless there are any positive surprises.
However, as at 30.12.2020, the company still has an outstanding order book of RM867.6m and global oil prices have finally recovered to pre-covid-19 levels. As long as the company can survive its current financial problems (which is truly quite difficult), there is a huge potential for its share prices to recover and rebound strongly. With current prices bouncing around RM0.21-0.22, Public Invest's latest TP at RM0.41 marks a 86.36% upside potential.
Markets E.A. Technique (Outperform, TP: RM0.41): Settles with MHB over contract dispute. E.A. Technique (M) has reached a USD25.5m settlement with Malaysia Marine and Heavy Engineering (MHB) over their dispute concerning a 2015 floating storage and offloading conversion project. (The Edge) Comments: While this development is undoubtedly not in EAT’s favor, it is somewhat helpful toward the Group’s prospect moving forward. The settlement amount is ~14% lower than the amount that EAT was ordered to pay by the Arbitral Tribunal. There will be no impact to the Group’s profit and loss statement as it has made provision in 3QFY20. Nonetheless, concerns may now arise on how EAT will pay this amount with cash outstanding of only RM24.1m as of September 2020. While existing cash flow generation may be somewhat supportive, EAT does have three tugboats and a crane worth an estimated USD12m used as collateral which they could dispose. There is no disclosure of other terms in the settlement agreement such as due date, payment structure etc which we believe it is still under negotiations.
You could be possible right .. because the demanded price is for future prospect not past . The Oil rally and recovery terms will be a help here . +++++++++ @Isabelle Hope bursa style still ongoing.bad qr = up
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....
Fundamentalist91
105 posts
Posted by Fundamentalist91 > 2020-12-10 12:36 | Report Abuse
Relax, look at the analyst reports, all give TP around 0.40, that's at least 35% upside.
The orderbook remains healthy at 800 Million+
Institutional investors are buying in, they know better, they are even scared of losing money, so they wouldn't be investing if this was a junk stock.
Rest assured and wait