Showing posts with label PUNCAK. Show all posts
Showing posts with label PUNCAK. Show all posts

Friday, April 14, 2023

Puncak Niaga is grossly undervalued from its NTA, MRT3 finalization in 2H 2023 will be a boost

Blog https://targetinvest88.blogspot.com



About 10 years ago, Puncak is one of the favorite topics among the investor and trader due to the Selangor government water restructuring exercise where multiple water concession will be taken over by the state government, which includes Puncak water asset.

Fast forward the deal is signed at RM 1.56b.

While the deal is far lesser than many had thought, it still went through.

Puncak then buy out entire Triplc property and construction firm which will automatically inherit UITM building and campus expansion plan. It also expanded into 43k hectare of oil palm plantation in Sarawak.


While the company NTA is RM 2.89, the current share price of RM 0.25 is a far cry from the value of the NTA, which is not even 10% of the NTA.

Technical outlook on the short term indicate an uptrend, highlighted in green zone.
On the longer term outlook, the current price might had break away from a long term downtrend line.

Hence, there will be a good chance for Puncak share price to appreciate further in the short term outlook towards 30 cents.



With the current government retendering most of the infrastructure project from previous administration, there will be a good chance for Puncak to enhance their book order in Peninsula Malaysia as well as Sabah Sarawak.


The case of Puncak vs TS Khalid estate and Selangor state government

Based on experienced and learned people in the industry, while declining to comment into much detail, it is said that Puncak might have some chance to salvage something in compensation to the earlier disposal which might be deemed undervalued.

The current price of Puncak compared to it's NTA is very undervalued. Puncak upside tendency is good with supportive technical outlook and improving fundamental on business prospect. With government finalizing MRT3 costing in 2H 2023, construction sector will be in the look out by investor and trader for a bargain hunt.


IMPORTANT NOTICE
Please be informed that 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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Monday, February 21, 2022

PUNCAK to be lifted with speculation on MRT3 and high palm oil prices

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One of the coming excitement for the construction player in 2022 will be tender of MRT 3 related projects. With estimation as high as RM 40 billion for the whole project, investor can expect a mixture of old players in the previous MRT 1 and 2 with a slew of potential new players into the segment.

Here, I will highlight the potential new player that could come into the tender of MRT 3 - Puncak Niaga Holdings Berhad (Puncak - 6807)

With the disposal of water asset to Air Selangor for RM 1.5 billion in 2016, the company had hunt for new asset with the cash load.

The 2 significant new portfolio added into Puncak is as below

1. Purchase of TRIPLC construction firm for RM 210 million in 2016 to boost the firm construction capabilities.


2. Purchase of Shin Yang's oil palm unit in Sarawak for RM 446 million.


Now looking back at the move to purchase these asset back then, it had proven to be a good and strategic move from PUNCAK to acquire such in order to penetrate into new market.


With expectation that MRT 3 tender for civil works to be out at Q2 2022, could we be seeing PUNCAK as one of the new player in the basket as they leverage their construction prowess through the acquisition of TRIPLC back in 2016.

Beside that, it should be noticeable that PUNCAK 90% owned plantation unit is also able to enjoy a higher return from ALL TIME HIGH FCPO prices.



With so much positive news for PUNCAK in 2022, it would give a positive momentum for the company share to move upwards. 

As the company share price had hit the long term resistant, can PUNCAK successfully break above the resistant line and give an upward rally?


The next few days will determine for PUNCAK chart trending. With hopeful news on MRT 3 and all time high palm oil prices, this will bring towards an upwards rally for PUNCAK, which is trading way below is NTA of RM 2.92


IMPORTANT NOTICE

Please be informed that 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.

For latest information, can join us at

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