Monday, October 18, 2021

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.



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


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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Thursday, October 14, 2021

Is M&G Berhad a worthy bet at the current price with the current strong oil price recovery

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M&G BERHAD - 5078 is a listed company dealing in energy services by providing OSV (AHTS, SSV) and Oil Tanker logistic services. Formerly known as SILK HOLDINGS BERHAD, the company went through a series of restructuring including the disposal of Silk Highway, capital repayment and with the most recent being a debt restructuring process in 2020.


The covid19 pandemic had clawed the economy down, reduce a lot of capex into the energy sector for the past 2 years. However, as we are looking at a return to the normalization of the economy, and with the controlled oil production in the OPEC+ organization, global oil price is looking to push towards USD 100 per barrel for the WTI crude.




Currently, the WTI crude price had broken above the resistant line and the bull run is looking to see WTI touching USD 100 per barrel.


With the oil price outlook looking steady, is the current price of M&G a worthy bet for a position in the coming oil and gas theme play? 




M&G had 3 division

1. JASA MERIN (MALAYSIA) SDN BHD - 21 OSV vessel, comprises of 19 AHTS and 2 SSV

2. JASA MERIN (LABUAN) PLC - 7 Oil Tanker (Chemical tanker, Clean petroleum product)

3. JASA MERIN SHIP MANAGEMENT - For repair, maintenance or ship vessel.


Due to the impact of Covid19, the utilization rate for the vessel had dropped as oil price plunge. However, the oil price had since recovered and is now sitting at 5 years high.


At the surface outlook, you would think that M&G is a failed company as share price trade below 10, but what are the silver lining to make this company a potential gem to be polished.


1. Shareholder ownership

One of the major shareholder is executive chairman - Dato Mohammed Azlan bin Hashim. With 23.55% stake, Dato Mohammed Azlan bin Hashim is also sit in the board of director in Khazanah Malaysia. Other listed company directorship is IHH, Telekom Malaysia, and D&O GREENTECH Berhad.



2. Strategic ties with TERENGGANU STATE GOVERNMENT

JASA MERIN (MALAYSIA) SDN BHD is 70% owned by M&G berhad and 30% by TERENGGANU STATE GOVERNMENT. TERENGGANU is a state rich with oil and gas production at it's coastal area. The strategic ownership will be advantage for getting provision for OSV at PAC production operation which will benefit the group.



3. Energy supply crunch

China coal mine supply disruption due to flooding had turn energy demand into other resources such as LNG and Crude Oil. Upcoming winter season will also boost oil demand due to demand from heating.


Private placement for the way ahead?
M&G current outlook is good with oil price recovery and coming more demand for oil tanker chartering as oil production increases. However, it's current long term debt might be a question mark for investor.

Due to better prospect ahead, it is possible for M&G to undertake a private placement to pare down debt and for working capital.

If M&G is looking to raise RM 15 to 20 million from 10% private placement, the placement share would be looking to priced around 20 cents range

10% private placement from existing share base of 723m
72.3 million shares x 20 cents = RM 14.4 million


Hence at the current price, will M&G be a worthy bet ???




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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Friday, September 24, 2021

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.


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.


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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Thursday, June 17, 2021

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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Tuesday, April 20, 2021

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.










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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Wednesday, April 7, 2021

PCCS on an uptrend with positive business development

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If you had been following my investment blog, you would have know that I am invested into PCCS for several reasons.

1. PCCS garment operation to be able to see a strong growth of revenue which will be derived from the demand of orders running away from Myanmar due to the military coup. These orders will not be a one time off bonus, but will be recurring for the next possible 3 to 4 years until very structural reformed being seen in Myanmar that can lure the foreign investor back into the country.

2. PCCS label and packaging business should be able to gain traction and increase with more demand in packaging all over the world.

3. PCCS to diversify into healthcare technology sector, which is an evergreen segment going into the long run. Although the company is currently at it's MOU stages and had not signed into any definite agreement of exclusive partnership for exclusivity in product distribution, the outlook is very positive to see that PCCS will definitely not throw the towel, but making it happen. This is reinforced with the setting up of La Prima Medical in Singapore and Malaysia that is specially for the division of healthcare technology.

PCCS Medical Industry website



I had previously mentioned about PCCS and is invested in PCCS.




I will be looking to see PCCS growing further into a big company in the foreseeable future.


The technical outlook for PCCS is very good with convincing strong uptrend. Technical wise, it will be looking for a break out above RM 0.60 once final consolidation at the range of RM 0.57 is completed.



I have to inform all reader that I am invested in PCCS.



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