BIG INDUSTRIES BHD riding high on SARAWAK SEDC effort in reducing carbon emission of public transportation by using hydrogen fuel cell buses

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In continuation on my mention on B.I.G INDUSTRIES BHD, here is what you can expect on how Sarawak state government initiative to go green by using hydrogen fuel cell bus in public transportation will benefit the company in the long run.

For detailed reading, here is the reference source

https://www.theborneopost.com/2021/02/28/sarawak-towards-sustainable-mobility/

Basically, Sarawak under SEDC (Sarawak Economic Development Corporation) is aiming to reduce carbon emission and improve energy contribution using green initiative.

Among the start, Sarawak Metro Sdn Bhd (wholly owned subsidiary of SEDC) will be looking to transform the public road system with hydrogen fuel cell feeder bus.

The blue line is hydrogen fuel cell powered bus which will have hydrogen refill station at each end.

Aside from higher consumption of hydrogen from the public transport usage, such facilities (refill station) will require logistic handling and maintenance of hydrogen gas to be transferred through pipe line and special tanks. This will ultimately benefit for B.I.G INDUSTRIAL BHD as they are expert in such work.

Investment will continue to pour in as Sarawak effort to reduce the carbon emission from public transportation. Hence, B.I.G will be getting long term supply and maintenance contract which will ultimately make them a positive cash cow when utilization peak up.

Eventually, Sarawak hope to develop the state to become a green hydrogen producer in the region. With the investment from Samsung Engineering, POSCO International and Lotte Chemical, it will help Sarawak SEDC to realize this target into a reality.

According to EU Hydrogen study, the hydrogen market will worth USD 11 trillion by 2030. It will be a huge market and massive investment will be needed now to build the infrastructure ready.

For this, B.I.G INDUSTRIES BHD will be well positioned to capture all side of growth in the use of hydrogen.

IMPORTANT NOTICE

Please be informed, I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

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Boustead multiple asset disposal over the group and subsidiary asset highlight the seriousness into the new venture of algae biofuel

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Earlier this year, Boustead is going through a series of restructuring which involved in disposal of none core asset and during April 2021, the group had inked a MOU with NEXT GENERATION OIL SDN BHD for the development of 400 acre land involving ALGAE BIOFUEL.

https://www.bursamalaysia.com/bm/market_information/announcements/company_announcement/announcement_details?ann_id=3149133

The MOU will have a 1 year duration to be executed.

Accordingly, Boustead had been disposing asset in order to raise fund for the new venture, and to pare down corporate debts amounting to more than RM 7 billion.

Notable disposal involving

1. Royale chulan hotel

2. Boustead Cruise Centre

3. Disposal of 2 piece of land at Jalan Cochrane to Sunway group

4. Disposal of listed shares in Pharmaniaga (approx 5%)

5. Disposal of land to YTL by Boustead Plantation

6. Disposal of University of Nottingham, Malaysia

More disposal on the move?

There is also rumor of disposal of shopping complex THE CURVE at Mutiara Damansara which had a carrying value of more than RM 500 million.

Season investor will look at this corporate action as a seriousness of Boustead in going into the new venture of ALGAE BIOFUEL.

At the mean time, the current share price of Boustead is sitting at a very low point with NTA worth RM 1.54 per share.

HOW GOOD IS THE NEW VENTURE INTO ALGAE BIOFUEL ?

According to research, Malaysia tropical weather is most suitable for ALGAE BIOFUEL development.

Comparing different agricultural feed stock into refining biofuel, the outcome of ALGAE had far surpassed other agriculture feedstock in terms of yield.

Full reference on the study can be referred here

Feasibility of microalgae as feedstock for alternative fuel in Malaysia: A review - ScienceDirect

As per research, the oil yield (kg/ha/year) is 1500% better than using palm oil to convert into biodiesel.

Boustead group will be the first in Malaysia to pioneer into this venture.

As of now, Bstead will be an interesting company to be invested in at the current price given that it is at the lowest region in the 5 years. While the profit will not come into the effect so fast, it will need at least another 1 to 2 years to see positive contribution, and the group estimate to see biofuel of 500000 barrel a day from algae biofuel by year 2025.

Long term investor looking to invest at least 2 to 3 years can give a further study on Boustead. At the current price below 60 cents, Bstead is very attractive given the future potential of the new venture.

IMPORTANT NOTICE

Please be informed, I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

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GUH is sitting at the sweet attractive position to capture the growth in semiconductor printed circuit board

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GUH - 3247 is a public listed company with business in Semiconductor segment (Printed Circuit Board), property development and waste water management. However, 90% of the revenue is contributed by the semiconductor (PCB) division.

The semiconductor segment continue to see good growth prospect as consumer electronics demands grow. The recent investment made by one of the largest PCB player in the world - SIMMTECH HOLDINGS CO LTD to invest in RM 508 million in Penang for a PCB plant had highlighted the potential of the growth in this sector.

Tech: RM508 mil investment in Penang by South Korea’s Simmtech to give local equipment players a boost | The Edge Markets

Prior before this, there is a corporate move in the market that involve a takeover for BSLCORP which is also a player in the PCB sector.

Two listed firm bosses acquire 52% of BSL Corp, make takeover offer for remaining shares | The Edge Markets

As you can see, BSLCORP had risen greatly as the share price appreciate upwards on the prospect of the company which deal with semiconductors, PCB assemblies line.

As to date, at RM 2.20, BSLCORP commend a market capitalization of RM 216 million.

Another player - SCOPE also involved in PCB and plantation, had see market capitalization growing as share price see more interest

The market capitalization of SCOPE Industries Berhad is RM 403 million

After looking at the above 2 example, GUH could be seen as very undervalued at the current price of RM 0.47

The company had a NTA of RM 1.68. Balance sheet can be considered as fully impaired from the land and building issue arising from Suzhou, China.

The share price of GUH had not appreciated much, and it is still trading at the range of 50 cents after a series of sell down from weak market condition for the past 1 month.

At the current price, the market capitalization is only RM 132 million.

Moving forward, GUH will be seeing new factory at Yancheng, Jiangshu, China operating in full force for automotive electronics. 

Aside from this, they will also be receiving cash proceed from the force disposal of land and building back to the China state government in Suzhou.

At the current price below RM 0.50, GUH is very attractive to invest for long term.

IMPORTANT NOTICE

Please be informed, I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

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PCCS shine out in FYE 2020 despite challenges from Covid19 pandemic

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As you had know, I had been invested into PCCS earlier this year because of several reasons.

I would summarized the reason I am invested into PCCS, or you can refer to my previous posting on PCCS as a research and referencing material for you to study in depth into PCCS.

My core pointers will be

1. PCCS is diversifying into MEDICAL HEALTHCARE TECHNOLOGY. The joint venture between PCCS and SHANGHAI SHENQI MEDICAL had been finalized, and grounds work are going on in bringing the product into the Asia Pacific market (Excluding China and Japan). The product mainly focus on heart related illness.

2. PCCS had been a accidental beneficiaries with the military coup in Myanmar, where apparel orders will divert to neighboring country. PCCS operation in Cambodia will benefit.

3. PCCS label and packing operation will be looking for a good turnaround with more positive development.

4. PCCS had entered into used car financing venture that will see consistent cashflow for the group.

PCCS had delivered Q4 2020 result in a fantastic manner despite being in the Covid19 pandemic.

PCCS deliver EPS 2.81 cents. Future revenue contributor will be used car financing and sales of medical technology product.

Technical outlook

On the technical outlook, PCCS can be seen trading at the bottom support line of the trading range. At the price range of RM 0.46, the share price is well supported.

RM 0.60 will be the resistant line. Breaking above RM 0.60 will signal a very positive uptrend to the share price.

IMPORTANT NOTICE

Please be informed, I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

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Cryptocurrency shift to farming on disk drive storage space are driving up demand for HDD and will benefit MCLEAN positively in the long run

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If you are my hardcore reader, you would have know that I am an avid investor of Mclean Technologies Bhd (Mclean - 0167).

Mclean had established itself as a strategic partner to Seagate by focusing it's resources at Thailand, which is Seagate main production house for data storage devices (HDD/SSD).

The recent market biggest hype cannot be short of cryptocurrency where many multi millionaire and billionaire start appearing as cryptocurrency start to surge into unbelievable amount.

The pioneer of all cryptocurrency - Bitcoin surged past USD 60k for 1 bitcoin last week.

1 of the major letdown on Bitcoin mining is the very high energy consumption to complete the Proof of Work. Very complicated mathematical puzzle are demanding more high powered ASIC / GPU to compute the solution in order to get rewarded with the bitcoin.

While the global leader are tackling on the issue on global warming, bitcoin energy consumption might not be so friendly in the long run. As an improvement to the cryptocurrency technology, a new coin which is based on Proof of Space and Time is now gaining traction globally.

Meet the new coin - Chia Coin

The Chia Coin launching had been gaining massive traction globally, and momentum are getting real when you start to see HDD/SSD getting sold out in certain region.

https://www.techradar.com/sg/news/this-new-cryptocurrency-could-potentially-cause-an-ssd-or-hard-drive-shortage

investing.com/news/cryptocurrency-news/meet-chia-chinas-new-bitcoin-2476600

If that is not convincing you enough, Seagate share price is reflecting positively with strong upside

As we know that Mclean revenue from surface treatment and precision cleaning come from demand of HDD volume.

Since Seagate is going to ramp up production, we can comfortably expect Mclean to deliver revenue growth and better profit.

At the current price of RM 0.46, Mclean market cap is just RM 90 million.

The previous market correction and adjustment and the positive news development in HDD industry had definitely made Mclean a good attractive target for the long run.

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MINHO TO SEE BIG UPSWING WITH HIGHER GLOBAL TIMBER PRICES

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This covid-19 pandemic had unleashed a massive amount of money into the global financial system, resulting in creeping up inflation. We can see that stock market are heading higher with higher PE ratio, crypto currency are gaining track in the market as the digital gold, and commodities are going higher as well.

The latest QE is the known USD1.9 trillion which President Biden had signed into effect. How is the market going to reflect on this money?

Today I am going to talk about Commodities.

CPO chart are showing massive uptrend on the palm oil. The trend is not stopping and will be looking to hit RM 5000 in the next 3 months to come. Some analyst are projecting RM 6000 to RM 7000.

Here are some metal prices. 

ALUMINIUM GLOBAL PRICES

COPPER GLOBAL PRICES

PLATINUM GLOBAL PRICES

Now, I want to talk about TIMBER prices

TIMBER GLOBAL PRICES

Global timber price will look set to trade around USD 1000 per bdsf. This could be a new norm going forward due to the excessive money printing exercise.

As you can see, when commodities prices go up, a lot of raw material prices will go up, and in the end it will end up in inflation because good and product will go up eventually.

In Malaysia, the steel sector already go up. Leading steel maker - Annjoo, despite report a operating losses, share price went up more than 300%

WHAT IS THE NEXT COMMODITY SECTOR TO SEE UPLEG ?

I believe the next one will be TIMBER SECTOR. Timber companies involved in upstream logging and downstream manufacturing will see massive upleg.

One of the laggard is Minho (M) Bhd - MINHO 5576

The company is involved in timber upstream logging, and downstream manufacturing from plywood to sawn timber. Export market 80% and local usage 20%.

Current share price NTA RM 1.10 per share. MINHO chart shown a breakout from short term down trend. With more than 6 months in consolidation and global timber prices breaking upwards, MINHO is just another company waiting to see a big upwards swing in it's share price.

IMPORTANT NOTICE

Please be informed, I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing on my ideas and  opinion of the market outlook. Above materials are taken from original source as a referencing material. This is not a buy/sell/trade call. Please do your own research and buy at your own risk.

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