Edge Weekly Cover Story: Why companies are flocking to Batu Kawan Industrial Park Liew Jia Teng
The Edge Malaysia 18/11/2021
Interestingly, Shah Alam-based automated test equipment (ATE) manufacturer QES is teaming up with US-based Applied Engineering to provide hi-tech electromechanical contract manufacturing services in BKIP.
QES managing director and president Chew Ne Weng says the primary reasons for its investment in BKIP are the availability of large tracts of land as well as complete infrastructure such as roads, connecting bridges to Penang Island and Prai Mainland, internet broadband, water and electricity.
“BKIP is heavily promoted by InvestPenang and Penang Development Corp (PDC), both of which are under the state government. Many MNCs and local listed companies are there, so it’s good for the ecosystem and supply chain because there will be potential business opportunities among the pool of investing companies in BKIP,” he notes.
QES has acquired a two-acre parcel at BKIP from the PDC for around RM5 million and budgeted about RM10 million to construct a factory there, slated for completion by end-2023 or early 2024.
“Our plan is to expand the QES manufacturing division there for both ATE equipment and IR4.0 Smart Manufacturing Solutions. We are also working on integrating or relocating the Applied Engineering-QES (AE-QES) JV company to the new QES BKIP factory,” says Chew.
He predicts that Batu Kawan will eventually overtake Bayan Lepas, as the former’s land area is much larger. Meanwhile, nearby areas such as Penang Science Park will add to the expanding industrialisation of BKIP in the long run.
Therefore, says Chew, Penang will need a larger area for the airport over the next decade or so, owing to the tremendous growth of MNCs relocating to BKIP or Penang Island.
dont purely look at one or two qr. the performance of QES expect to grow significantly by next year onwards. current valuation is not expensive in long run. hold it as long as you can. they are moving in right direction and partner with the right ppl.
You're not alone. By my calculation, the intrinsic value is around RM 0.72. So I guess I didn't pay too high for it. But maybe my calculation is wrong. I guess you need a lot of luck to buy exactly at the bottom and sell at the peak.
The plant first 2 quarter will made losses due to additional depreciation cost and cost of not at economy of scale.This is the example of new plant coming need adjustment.
Need help..... Beginner level...Must come.
Sifu Michael(with ang pow picture) in FB Answer anything in stock include teaching Charging rm 120 per month 3 month non perform im out
Let's do some back-of-the-envelop calculation here
Consider the EPS below:
Q1 - 0.83 sen (at full capacity) Q2 - 0.46 sen (MCO) Q3 - 0.45 sen (MCO) Q4 - 0.83 sen (projected, at full capacity) Total - 2.57 sen
At Forward PE of:
30 - The share price should be around RM 0.77 35 - The share price should be around RM 0.89 40 - The share price should be around RM 1.03
Consider the more conservative projection below: Q1 - 0.83 sen (at full capacity) Q2 - 0.46 sen (MCO) Q3 - 0.45 sen (MCO) Q4 - 0.75 sen (projected, 10% discounted from the Q1 EPS) Total - 2.49 sen
At Forward PE of:
30 - The share price should be around RM 0.75 35 - The share price should be around RM 0.87 40 - The share price should be around RM 1.00
Since the semiconductor industry will be booming for the next few years, I think the forward PE of 30, 35 and 40 are quite reasonable. So, I think there is no time like the present.
New COVID variant sends fear into the market again. Presents another buy opportunity like in the first wave also another chance to make the correct decision this time. Nothing speculative, only buy into stocks with solid fundamentals. Where others fear,...... This is my opinion.
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....
Mr.Sm Invest123
2,267 posts
Posted by Mr.Sm Invest123 > 2021-11-18 23:37 | Report Abuse
Edge Weekly
Cover Story: Why companies are flocking to Batu Kawan Industrial Park
Liew Jia Teng
The Edge Malaysia
18/11/2021
Interestingly, Shah Alam-based automated test equipment (ATE) manufacturer QES is teaming up with US-based Applied Engineering to provide hi-tech electromechanical contract manufacturing services in BKIP.
QES managing director and president Chew Ne Weng says the primary reasons for its investment in BKIP are the availability of large tracts of land as well as complete infrastructure such as roads, connecting bridges to Penang Island and Prai Mainland, internet broadband, water and electricity.
“BKIP is heavily promoted by InvestPenang and Penang Development Corp (PDC), both of which are under the state government. Many MNCs and local listed companies are there, so it’s good for the ecosystem and supply chain because there will be potential business opportunities among the pool of investing companies in BKIP,” he notes.
QES has acquired a two-acre parcel at BKIP from the PDC for around RM5 million and budgeted about RM10 million to construct a factory there, slated for completion by end-2023 or early 2024.
“Our plan is to expand the QES manufacturing division there for both ATE equipment and IR4.0 Smart Manufacturing Solutions. We are also working on integrating or relocating the Applied Engineering-QES (AE-QES) JV company to the new QES BKIP factory,” says Chew.
He predicts that Batu Kawan will eventually overtake Bayan Lepas, as the former’s land area is much larger. Meanwhile, nearby areas such as Penang Science Park will add to the expanding industrialisation of BKIP in the long run.
Therefore, says Chew, Penang will need a larger area for the airport over the next decade or so, owing to the tremendous growth of MNCs relocating to BKIP or Penang Island.