SCABLE FULL OF UPSIDE POTENTIAL NOW !!! CAN BE RUNNING AHEAD BEFORE SARAWAK ELECTION

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The Sabah state election already passed, votes casted, and new state government formed. Now the heat will be looking at the incoming Sarawak state election.

According to the constitution, the Sarawak state election must be held before the 7th September 2021, which means both parties got lesser than 12 months to prepare for it.

The Sarawak Election will be very crucial. The Sarawak state government had been pushing out a lot of infrastructure upgrade in order to improve the welfare of the people. One of the most significant is the construction of PAN BORNEO HIGHWAY.

According to TheEdge, the current completion of the Sarawak section stands at 52%, and Sabah is 32% as of August 2020.

There is still balance of 20 packages for the highway.

Excerpt taken from The Edge.

Sarawak push for infrastructure upgrade will benefit a lot of local Sarawakian company. Sarawak based company such as CMSB, SCABLE, KKB, HSL, ZECON

For now, my focus light will be SCABLE 5170. SARAWAK CABLE BERHAD

SCABLE price at the current level is very attractive. The company share price currently is resting at technical support line. While the company is making some losses, the political linkage with the Sarawak state government and established ties is very valuable for the company future potential growth.

We see the technical accumulation on 25th June 2020 as a very positive signal for the stock to move forward.

SCABLE substantial shareholder include Dato Sri Mahmud Abu Bekir Taib holding a total of 26%, which is the son of the Sarawak Governor - Tun Taib Mahmud

SARAWAK ENERGY BERHAD (SEB) also held substantial stake of 16%

WHY SCABLE WILL BE ATTRACTIVE 

1. MORE PROJECT TO BE AWARDED IN SARAWAK TO UPGRADE INFRASTRUCTURE AND RURAL AREA. EXAMPLES ARE ELECTRICITY CONNECTIVITY, INTERNET CONNECTIVITY AND ROAD.

2. SCABLE BOOK ORDER CURRENTLY MORE THAN RM 500 MILLION

3. ABLE TO PARTICIPATE MORE OF PAN BORNEO AND OTHER SARAWAK PROJECT IN COMING FUTURE

4. CURRENT SHARE PRICE IS LOW AND ATTRACTIVE WITH MINIMAL DOWNSIDE BUT GOOD UPSIDE POTENTIAL

WE HAD WITNESS SCIB UPSIDE POTENTIAL. FROM RM 1.00 UNTIL RM 4.00

NOW SCABLE CURRENT SHARE PRICE IS RM 0.20, WHERE WILL BE THE UPSIDE POTENTIAL ? RM 1.00 ?

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BE SMART AND DOMINAN !!!! INVEST DOMINAN ON UNDERVALUED POSITION

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Looking for the next trend play in Bursa Malaysia? No need to look further, neither left or right, east or west. The trend that is in play and will continue for a while will be the furniture theme play. But not all furniture player are going to benefit from this Work From Home, only a certain player stand out to benefit more.

Hence, I would like to point out to the FURNITURE HUB of MALAYSIA, that is in MUAR, JOHOR. This is the place where all the popular and branded furniture maker gather together, where raw material, skill worker are centered in a location.

According to data, the furniture export from MUAR, JOHOR represent 50% of the whole Malaysia. That is a very commendable figure to say.

The current COVID-19 situation had created a new market - WORK FROM HOME. This new opportunity is currently having a big void to be filled up for most of the exporting furniture player in MUAR.

The EDGE - Local Furniture players get a boost from WORK FROM HOME POLICY from the US.

https://www.theedgemarkets.com/article/local-furniture-players-get-boost-wfh-policy-us

According to the report, furniture maker in MUAR stand to benefit from US 2 trillion (RM 8.3 trillion) stimulus cash hand out.

So, how are furniture player in MUAR performing in terms of share price? .

POHUAT - REBOUNDED HIGHER FROM THE SELL DOWN DURING LOCKDOWN

WEGMANS - REBOUNDED HIGHER FROM LOCKDOWN SELL OFF

LIIHEN - REBOUNDED HIGHER FROM LOCKDOWN SELL OFF

SWSCAP - REBOUNDED WITH GOOD UPTREND

WHEN MOST OF THE FURNITURE MAKER IN MUAR ARE HAVING THRIVING BUSINESS, HOW ABOUT THE SUPPLIER FOR FURNITURE MAKER ????

I WANT TO INTRODUCE TO YOU - DOMINAN 7169

LESS KNOWN TO MOST, BUT THIS WOOD PANEL / PLYWOOD SUPPLIER TO FURNITURE MAKER IN MUAR AND VIETNAM IS UNDERLOOKED

HOWEVER, THE POTENTIAL TO REBOUND BACK TO IT'S NORM SHOULD NOT BE FAR AWAY AS DOMINAN IS A GOOD FUNDAMENTAL COMPANY, PAY DIVIDEND FEW TIME EVERY YEAR, NTA RM 1.80 AND WELL MANAGED WITH GOOD OWNERS.

DOMINAN STAND TO BENEFIT FROM

1. STRONG ORDER FROM FURNITURE MAKER AT MUAR

2. BETTER PRICING IN WOOD MATERIAL

3. LOWER INTEREST RATE WILL BENEFIT THE OUTSTANDING LOAN TAKEN BY DOMINAN

CURRENT PRICE CHART WILL SEE DOMINAN IS READY TO BREAK OUT FROM THE LOW PRICE RANGE, CONSOLIDATION ALREADY MAX OUT AND READY TO GO UP

DOMINAN

https://www.dominant.com.my/

DOMINAN PROMOTED IN TELEGRAM DURING 68 cents to 70 cents. CURRENT 72 cents. Looking at DOMINAN to reach RM 1.00

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KMLOONG IS THE GOLDEN DRAGON RISING UP IN 2H 2020 WITH STRONG FCPO PRICES

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Prices of Crude Palm Oil continue to rise with strength. The FCPO had broken above 3000 mark for OCTOBER delivery. This is a very good price for plantation company because they will be having good profit margin from the high price that they are selling at open market.

Previously I had introduced a few plantation company, all of them had risen up.

You can check THPLANT, recommend at 38 cents, currently trading at 46 cents

Jaya Tiasa (Jtiasa), recommended at 65 cents, currently trading above 70 cents.

Today want to recommend a good company that is doing good at palm oil plantation previously, and also give dividend yearly. 

This company is KMLOONG (KIM LOONG RESOURCES BHD - 5027)

IN CHINESE, THIS COMPANY IS A GOLDEN DRAGON

THIS YEAR IS BEST YEAR FOR PLANTATION COMPANY TO SEE SHARE PRICE RISING UP STEADILY, JUST LIKE A GOLDEN DRAGON AWAKEN UP TO FLY

WHAT ARE THE REASON FOR PALM OIL PLANTATION TO CONTINUE SEEING A BULLISH PRICE THROUGHOUT END OF 2020 UNTIL START OF 1H OF 2021.

1. CHANGES OF WEATHER AFFECT SOY BEAN HARVEST

THE GLOBAL WARMING EFFECT HAD BROUGHT HEAVIER RAINFALL DURING MONSOON SEASON. THE WETTER THAN USUAL RAIN AND STRONGER THAN USUAL WINDS WILL DESTROY CROPS, HENCE DECREASING THE HARVEST OF GOODS.

2. LOCUST SWARMS ATTACK ON INDIA DEVASTATED AGRICULTURE PRODUCTS, INCLUDING SOYBEAN PLANTATION.

3. GROWING DEMAND FROM ORGANIC BROILERS (CHICKEN FARM) PUSH UP NON-GMO SOYBEAN CONSUMPTION

4. INDIA REPORTED A 30% DROP ON GMO SOYBEAN HARVEST

5. CULTURAL FESTIVAL WHICH ARE LINED UP (CHINESE - MOONCAKE FESTIVAL, INDIA - DEEPAVALI, DECEMBER CHRISTMAS) WILL PUSH UP EDIBLE OIL CONSUMPTION FOR 2H 2020.

US SOYBEAN OIL FUTURE

US SOYBEAN FUTURES

WHY KIMLOONG ?

THIS COMPANY DURING LOWER PALM OIL PRICES STILL CAN BE PROFITABLE, AND ALSO PAY DIVIDEND.

THE COMING QUARTERLY RESULT WILL NOT BE TOO BAD, BUT CAN EXPECT DIVIDEND TO BE DECLARED, PROBABLY AROUND 3 CENTS. DURING GOOD TIMES, KMLOONG PAY 6 CENTS DIVIDEND.

THE DIRECTOR ALSO FEEL GOOD ON THE COMPANY OUTLOOK AND CONTINUE BUYING SHARES FOR COMING RESULT AND DIVIDEND.

KMLOONG PROSPECT AND OUTLOOK POSITIVE, AND WILL BE A VERY STRONG DRAGON AT 2H 2020.

ONCE BREAKOUT FROM RESISTANT LINE RM 1.45, KMLOONG CAN GO FURTHER RM 1.60.

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BTM RESOURCES BHD CONFIRMED UPTREND.. SHAREHOLDER ALSO INDICATE CONFIRMED UPTREND

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BTM RESOURCES BERHAD, A NORTHERN REGION TIMBER PLAYER DIVERSIFYING INTO RENEWABLE ENERGY COULD BE ATTRACTIVE TARGET FOR INVESTOR EYEING TO INVEST INTO THE CONCESSION AT THE CURRENT PRICE.

BTM RESOURCES BACKGROUND

BTM Resources Berhad ("BTM") was incorporated in Malaysia on 10th June 1994 as a public limited company under the Companies Act, 1965. BTM is listed on 27th March 1996 on the Main Market of the Bursa Malaysia.

The principal activity of BTM is that of investment holding and provision of management services while its subsidiary companies are involved in logging, sawmilling, trading of sawn timber, logs and plywood, kiln-drying operations, timber moulding, manufacturing of finger jointed timber and lamination boards, and letting of plant and machineries.

RECENT DEVELOPMENT

BTM TO SELL ENERGY TO TNB FOR 21 YEARS, COMMENCING NO LATER THAN JANUARY 2023. THE CAPACITY IS 10MW, WITH A FIXED RATE OF 34.86 cent PER kWH FOR 21 YEARS.

https://www.nst.com.my/business/2020/07/605491/btm-sell-power-tnb-21-years

While things are still fresh, there are a lot of background work which is already going on.

Firstly is private placement of 10% which is approved.

Secondly, there is a new entry of shareholder which is very bullish on BTM to be CONFIRMED UPTREND

DATUK WOO THIN CHOY 4.45% acquisition via CONFIRMED UPTREND SDN BHD. This company name already giving hint :D

Now that the KLSE MOST PROLIFIC COMPANY, TOPGLOVE, already announce outstanding QR, i believe the shift of trend will be coming towards PLANTATION AND TIMBER INDUSTRY next week

The chart is showing good consolidation effort around 20 cents. Trend like is looking good with uptrend effort able to see BTM trading 25 cents for next spike.

Market talks are looking at BTM probably eyeing for fresh concession from TERENGGANU STATE GOVERNMENT for fresh timber concession. If BTM is able to secure more land for INDUSTRIAL TIMBER PLANTATION, then BTM will be very attractive moving forward.

The INDUSTRIAL TIMBER PLANTATION CONCESSION will be used to feed in fuel for the 10MW BIOMASS ENERGY PLANT.

MARKET OBSERVER ARE POSITIVE BTM WILL BE ABLE TO GET 3000 TO 6000 ACRE OF LAND FOR INDUSTRIAL TIMBER PLANTATION, FROM A MIXED OF PRIVATE JOINT VENTURE AND STATE GOVERNMENT LEASE LAND.

With just a market capitalization of RM 27 million, there are much space for BTM to explore upwards

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FGV IS ALL YOU NEED FOR GORENG GORENG PLANTATION - FIGHT ALL WAY OUT

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TODAY, A VERY VERY IMPORTANT EVENT HAPPENED IN THE MALAYSIA DERIVATIVES MARKET. THE FCPO (CRUDE PALM OIL FUTURES) HAD OPENED WITH A BULLISH START, AND END WITH A BULLISH NOTE THAT HAD DEFEATED THE RESISTANT LINE OF 2900 WITH GOOD STRENGTH AND VOLUME

THE PALM OIL FUTURES ALSO TESTED ABOVE 12 YEAR LONG RESISTANT LINE, WITH GOOD STRENGTH TO PUSH TOWARDS 3000

SINCE ALL LOW AND MID LINER PALM OIL COUNTER HAD MOVED, ONLY 1 FAVORITE BIG GORENG GORENG LEFT.

THE COUNTER IS NONE OTHER THAN  FGV - 5222

FGV HOLDINGS BERHAD

FGV PRODUCTION OUTPUT FOR CRUDE PALM OIL IS EVEN LARGER THAN IOICORP BY 4 TIMES!!!!

TECHNICAL CHART SHOW FGV IS IMPENDING TO EXPLODE ALL WAY OUT !!!!

1. BASED ON 6 MONTH TREND LINE, FGV IS ON UP TREND, AND WILL BREAK ABOVE DOWN THE DOWN TREND LINE AND TRADE HIGHER

2. FGV GOT CUP AND HANDLE FORMATION, AND BACKED WITH HIGHER FCPO PRICE WHICH REAFFIRM BREAK OUT

3. FGV BREAK OUT FROM TRIANGLE SHAPE WILL BE A UPWARDS BREAK UP INSTEAD OF DOWNWARDS BECAUSE FCPO PRICES ARE ALL TIME HIGH IN 2020

WHERE WILL FCPO BE HEADING TOWARDS IN 2020?

IN 2008, IT WAS ABOVE 4000!!

LET ME BRING YOU SOME PROJECTION FOR 2020

FOLLOWING THE UPTRENDING PROJECTION OF THE FCPO, THE FCPO HITTING 3100 / 3200 RANGE IS POSSIBLE.

FGV IS THE LAST BIG POWERFUL WOLF IN PLANTATION INDUSTRY GOING TO MOVE !!!

FGV LETS GO - RM 1.50 

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THPLANT TO TURN INTO BETTER FORTUNES IN 2020

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More than 10 years back, there is a financial crisis that brought down a lot of big corporate into their knees. If you would recall back, during the 2008, when everything is tumbling down, PALM OIL and SOY OIL had risen so sharply in the global market.

Now more than 10 years after that event, is this event going to happen again? Are you looking at CRUDE PALM OIL heading to a great break out from the 10 years long resistant bar?

HERE IS CHART FOR US SOYBEAN OIL

HERE IS THE LONG TERM CHART FOR MALAYSIA CRUDE PALM OIL

HERE ARE SEVERAL REASON FOR FCPO TO BREAK OUT 3000 IN YEAR 2020

1. INDIA INCREASING IMPORT DUE TO DEEPAVALI CELEBRATION 

2. CHINA INCREASING IMPORT DUE TO MOONCAKE FESTIVAL SEASON

3. EUROPE/US INCREASING IMPORT DUE TO CHRISTMAS SEASON

OTHER FACTORS INCLUDE

1. GLOBAL COUNTRY LOOKING FOR FOOD SECURITY DURING CRISIS PERIOD

2. PALM OIL INDUSTRY BOTTOM UP ON SHARE PRICE AND READY FOR UPWARDS RUN

3. CRUDE PALM KERNEL OIL & PROCESSED PALM KERNEL OIL TAX EXEMPTION ON EXPORT DUTY FROM 1ST JULY 2020 UNTIL 31ST DECEMBER 2020

There are many counter that are interesting. Some are good, some are bad, some are turning good but still at low prices.

The one I see turning good and still in low price is THPLANT - 5112

WHY I THINK THPLANT IS GOOD ?

THPLANT is having a good technical chart reading. The uptrend is supported with better outlook in the overall industry. With FCPO at good prices, and THPLANT at the lowest price region in the past 10 years, it is not too bad a gamble with calculated risk.

Comparing with other peers around the similar size, THPLANT FFB production is considerable good. 

Now THPLANT is already fully impaired. Although THPLANT have a large debt pile, the lower interest rate will be beneficial with lower interest servicing. A lot of analyst will be expecting a further cut in the coming BNM policy meeting.

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FCPO UP!! LUMBER PRICE UP!! WHAT TO INVEST? INVEST JTIASA OK OR NOT?

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Today market happening - aside from Coronavirus or Covid19, vaccine for covid 19 or booming gloves industry, something to take note on the raising commodity prices of Palm Oil and the Timber / Lumber should be taken into every investor alert list

FCPO had been raising with continuous purchase from Middle east, India, China and European countries. The trend is looking for FCPO to trade nearer to 3000 for a longer period of time, which will be beneficial for palm oil producer with the price staying at the higher range for a longer period. The subsequent effect of this will see palm oil industry player reporting better earning and profits, hence higher share price.

Another thing to take look is the madness surge up of the Lumber Futures in the global market.

The steep surge in LUMBER FUTURES is from a set of event that contribute to this.

1. LACK OF SUPPLY FROM CANADA PINE FOREST DUE TO BEETLE INFESTATION ON PINE TREE.

2. SAWMILL OFFLINE DUE TO ASSUMPTION THAT PLYWOOD DEMAND WILL DROP DUE TO COVID19 LOCKDOWN

3. LOCKDOWN ACTIVITIES IN US HOUSEHOLD ENCOURAGES DIY PROJECT, CONSUMES MORE PLYWOOD (TIMBER)

4. LATEST EFFECT FROM HURRICANE LAURA PUT IN BIG DEMAND FOR REBUILDING

5. JAPAN REBUILDING FROM TYPHOON HAGIBIS 2019 

Sources

beetle infestation - https://www.bloomberg.com/news/features/2020-08-17/mountain-pine-beetle-infestations-are-killing-forests-could-worsen-emissions

hurricane laura - https://edition.cnn.com/2020/08/28/us/satellite-images-hurricane-laura-before-after-trnd/index.html

Japan Hagibis rebuilding - https://www.mida.gov.my/home/9788/news/plywood-makers-may-see-rebound-in-exports-to-japan/

The LUMBER FUTURES will not be looking to come down fast due to government all over the world will be pushing more infrastructure development to boost up economy and GDP. TIMBER CONSUMPTION WILL CONTINUE TO MAINTAIN HIGH.

IF YOU INVEST IN COMPANIES DEALING WITH EITHER 1 OF THIS INDUSTRY, OR FOR BETTER, BOTH ALSO INVOLVED, YOU ARE MOST PROBABLY IN GOOD HANDS.

ONE COMPANY THAT I THINK WILL BENEFIT GREATLY FROM THESE 2 (HIGHER FCPO PRICE and HIGHER TIMBER PLYWOOD PRICE) WILL BE - JAYA TIASA (JTIASA 4383)

JTIASA have palm oil plantation, and also wood based product and harvesting.

Their output for AUGUST 2020 is not bad.

According to the chart analysis, JTIASA is on an uptrend, with a good entry point.

JTIASA is a good company to get some exposure for the trend. The company have good liquidity and will be an attractive target for investor and trader in the coming days.

Mid Term TP : RM 1.00

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EKSONS INVENTORY VALUE WRITE DOWN OF RM 11.7MILLION IS A BLESSING IN DISGUISE NOW

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Lumber price continue to sky rocket without stopping. These event will be turning into a golden opportunity to a lot of timber/lumber company that had been sleeping for so many years. The current spot rate had gone as high as USD 857 per 1000 bd ft. This is the highest in history on lumber prices had gone up.

A lot of timber company are worth looking at with the surging price of lumber not looking to back off until at least reaching USD 1000

My attention is towards a undervalued company - Eksons Corporation Bhd 9016, a plywood mill at Sabah which export to international market, especially Japan, Europe and US.

This company recently reported a huge losses on FYE 2020 for March 2020. One of the biggest reason is the inventory valuation at the current market price during March 2020, which is at the worst of pricing. The inventory write down RM 11.7 million due to spot price plunged below USD 300 per 1000 bd ft. This resulted in company announcing a loss of 25.6 cent per share despite higher sales revenue from timber division.

The explanation note stated on 2.5 million from property impairment and RM 11.7 million from inventory value write down. 

Here is the ending spot rate for March 2020 of lumber futures. According to the delivery spot rate for LUMBER FUTURE AT MARCH 2020 is USD 276 only!!!! That is the reason for RM 11.7 million write down on inventory value.

However, the current spot price for the LUMBER FUTURE is USD 857. That is an increase of USD 581, or increase of 310% from the MARCH 2020 low point

Based on the current impairment done on EKSONS inventory, now all the TIMBER INVENTORY at EKSONS will be carrying value at 276, but current spot price of more than 800 will be giving EKSONS a very good profitable margin in the coming QR for November.

EKSONS NTA is RM 2.40, current share price RM 0.645.

NET CASH position RM 175.963 million

NET CASH PER SHARE = RM 1.07 net cash per share

How much can EKSONS share price move in the coming future?

Short term looking at RM 0.80

Mid/Long term looking RM 1.20

Above information are just for your reading resource and not a guideline to buy sell or trade.

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