Target Invest KLSE

CENSOF ENABLING MALAYSIA GOVERNMENT BODIES WITH OPENAI

noreply@blogger.com (TargetInvest) — Thu, 09 Oct 2025 02:27:00 +0000

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Censof, a key player in the e-invoice system implementation within the government bodies, could see more new revenue channel with the potential of enabling Malaysia Government bodies and GLC with OpenAI solution.

Censof 51% owned Cognitive Consulting Sdn Bhd, is a platinum support partner of UIPATH in Malaysia region.

UiPath (PATH) Is Up 5.4% After AI Partnerships with NVIDIA, OpenAI, Google and Microsoft Announced

Cognitive Consulting S/B helps Malaysian companies to integrate AI and robotic process automation into their system process workflow

With the latest partnership of UIPATH with OPENAI, and with CENSOF appointment of Chief AI Officer (MR. JUDE LOPEZ), the digitalization process for Malaysian government bodies will give new revenue channel for the group

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Petrochemical sector outlook might be changing soon with new sanction and foreseeable lower oil price?

noreply@blogger.com (TargetInvest) — Mon, 17 Feb 2025 02:29:00 +0000

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As you know, I had been invested in petrochemical industry through LCTITAN since last year July 2024, which is around RM 1.00 region. At the current share price, it is 50% of losses on my investment due to a lot of happening both in the invested company, as well as the broad industry outlook of petrochemical.

Firstly, there is some very bad news on LCTITAN which include liquidity crisis in the parents company, LOTTE CORP KOREA as well as LOTTE CHEMICAL KOREA.

Then LCTITAN had been rolling in more losses for 14 consecutive quarter, and cash pile is decreasing, and a lot of big impairment is being shelled out at the balance sheet, which include a temporary closure of naphtha crack plant 1.

Then Lotte USA at LOUISANA, which LCTITAN have 40%, also taken a big blow.

Subsequently, the LINE project is also not projected to start until 2Q of 2025, which is also taken a very big pile of cash.

Lastly, unending of bad press article surrounding LOTTE and wave of short selling are pressing the share price further south, with the last shot from MAYBANK INVESTMENT BANK putting a target price of RM 0.39.

IS THERE ANY BRIGHT SIDE FOR PETROCHEMICAL INDUSTRY? LCTITAN?

First, I would like to give you a very easy understanding on why the Petrochemical industry is having such a hard time, especially during the war zone period.

The prime reason of the slump is due to the RUSSIA funding the war with UKRAINE through oil sales, and while RUSSIAN OIL is being sanctioned, China and India are buying the sanctioned oil at a very cheap price and processing it through their refinery, flooding the market with cheap petrochemical goods.

Refinery that are aligned to US and adhere sanction will be buying crude at spot rate, hence output of the petrochemical product will be automatically higher. In order to defend market share, refinery need to defend market share and customer, refinery using legitimate oil need to go into negative margin territory.

The solution for this situation

1. Harsher and stricter sanction and tariffs on supply chain of sanctioned oil (from oil producer, oil tanker, refinery, and end product)

2. legitimate crude oil spot price become lower, so that differential between sanctioned oil and legitimate oil is lesser, petrochemical product will get better margin without needing to fight with sanctioned oil product

PETROCHEMICAL TURNING POINT?

ISRAEL PALESTINE WAR - CEASEFIRE & STOP

RUSSIA & UKRAINE WAR - IN NEGOTIATION TO STOP SOON

1.) HEAVY AND STRICTER SANCTIONED ON ALL PARTY INVOLVED IN SANCTIONED OIL TRADE

https://www.bnnbloomberg.ca/markets/oil/2025/02/13/russian-oil-tanker-fleet-severely-hobbled-by-last-months-us-sanctions/

https://www.reuters.com/business/energy/latest-us-sanctions-russia-throw-global-oil-trade-into-disarray-2025-02-14/

The following sanction had greatly hurt all those involved in sanctioned oil trade for the previous 2 years.

2.) US pull out from PARIS AGREEMENT - signaling coming low oil price season

https://apnews.com/article/trump-paris-agreement-climate-change-788907bb89fe307a964be757313cdfb0

With the share price of LCTITAN being battered so lowly now, which is below 50 cents as of writing, it might be a very good take for opportunist investor to look at the potential turn around of the legitimate petrochemical company

After all, ELON MUSK prediction on HUMANOID AI BOTS like TESLA OPTIMUS 2, and upcoming OPTIMUS 3 will be looking at more than 10 billion unit by 2040. Weighing approximately 50kg, around 50% of the weight will be consisting of high-grade plastic, which will be the new coming demand for petrochemical.

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SHORTSELLER TARGETING ON LCTITAN NOW. CAN A POTENTIAL ASSET SALE IN LCTITAN IS A REPEAT OF WHAT AIRASIA DID WHEN THEY SELL AIRCRAFT LEASING UNIT IN 2017

noreply@blogger.com (TargetInvest) — Thu, 21 Nov 2024 09:15:00 +0000

Blog https://targetinvest88.blogspot.com

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If you had been following me, you would know that I had invested in LCTITAN. For the time being, I am still invested in LCTITAN.

However, LCTITAN had been hammered down in a rough manner due to several factor.

1. Bad quarterly result in 3Q 2024, which saw more than RM 300 million in impairment

2. Bad selling prices for their petrochemical product

3. Bad press in overall for the Lotte Group, Lotte Chemical Korea and LCTITAN in Malaysia

4. Targeted by IB for short selling

5. Parent group Lotte Corp and Lotte Chemical is being targeted by group of trader for short selling

6. Lotte Chemical bond maturing in April 2025, casting some doubt on repayment ability

I had start investing into LCTITAN at the range of RM 1.00, averaging up. It subsequently hit RM 1.39. However, it started to slide below RM 1.00 with a lot of bad press, and with the current price at RM 0.75 with more bad press, bad reports and targeted short selling activities.

According to data, LCTITAN is being shorted by more than 7 million unit of shares as of to date 21 November 2024.

CUT LOSS, HOLD, AVERAGE DOWN, OR MAKE AN ENTRY NOW?

I believe there is a lot of such question in the investor mind now, including me. However, as an experience investor that had seen through a lot of corporate exercises in the past, there is something to think about for LCTITAN, and why it is happening.

If you are in the market long enough and remember different happening of event, one of the popular one include Airasia (Now renamed into CAPITAL A BHD)

Being in the capital intensived market such as airlines, giving out consistent dividend is very hard, because almost every profit made will need to reinvest back into the company for growth, asset replacement due to aging, or contingency fund in case of any big unforeseen scenario such as Covid-19 pandemic. For the case of AirAsia, despite having very big cash flow from ticket sale, they are also 1 of the target from short seller before some big corporate exercise.

As you can see from report, Airasia got targeted by short seller in a negative report, sending share price downwards until it is so low and damaging.

https://www.malaymail.com/news/money/2015/06/12/gmt-research-issues-report-questioning-airasias-accounting-practices/914519

https://finance.yahoo.com/news/short-sellers-put-airasia-crosshairs-051033919.html

https://themalaysianreserve.com/2017/03/31/is-airasia-a-victim-of-short-sellers/

However, after the bout of short selling, the shares of retailer are much lighter, and big good news came flowing in for AirAsia with major asset sale.

https://newsroom.airasia.com/news/2018/3/1/airasia-sells-aircraft-leasing-operations-for-us118-billion#gsc.tab=0

https://www.nst.com.my/business/2018/03/340191/airasia-sells-its-aircraft-leasing-operations-rm463b#google_vignette

In short, 1 year+ of short selling sending Airasia share diving more than 50%

1 major asset sale amounting RM 4.63 billion sending Airasia share rising more than 100% from the low, and give a handsome dividend to shareholder

https://theedgemalaysia.com/article/airasia-shares-special-dividend-pledge

https://theedgemalaysia.com/article/airasia-share-price-jumps-nearly-6-possible-special-dividend

Basically, in the AirAsia event, short seller get retailer cut loss share at the low price for almost free as the asset sale dividend payout is almost similar to the price they buy the share

CAN THIS AIRASIA SAGA BE A REPLICATE IN LCTITAN?

As LCTITAN is in the capital-intensive sector of petroleum manufacturing, such big asset sale will probably warrant for short seller to weed off retailer to the max before a big news will come about.

What we know is that Lotte Chemical had expressed interest to dispose the Malaysian unit of Petrochemical plant. On top of that, they also expressed interest to dispose off other non-core asset in order to focus on their new project.

LOTTE had committed for hydrogen project in Sarawak, while the new plant LINE INDONESIA will be operational in 2025.

As of Petronas, there is a need to diversify from the reliance on Sarawak, which fuel up the possibilities of M&A of PCHEM and LCTITAN, since LOTTE CHEMICAL hold 76% as a single shareholder.

If LOTTE CHEMICAL is to sell all 76% of shares to PCHEM, that will trigger a MGO, and the balance of the shareholder will be rewarded handsomely if their purchase price is at a low level.

THE CONUNDRUM NOW, IS LCTITAN AT IT'S LOWEST POINT?

At RM 0.75, had LCTITAN went on to it's lowest point already? Back in Covid-19 hit era, it went to a low of RM 0.72, subsequently, it rebounded back to above RM 2.00

I would look at the situation now where by entry into LCTITAN at RM 0.75, you had a risk of 10% it will go below RM 0.70, while there is a huge possibility of it going back to RM 1.50 to RM 2.50 if such M&A by PCHEM come through in the future.

10% you will lose

10% you will get bored and sell at breakeven

80% you will win, but how much you want to win, that depends on how long you can hold until the event came real, or maybe not?

Blog https://targetinvest88.blogspot.com

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I INVESTED IN LCTITAN FOR 5 REASONS, AND THE LAST REASON JUST GAVE MY INVESTMENT MORE SPICE AND EXCITEMENT

noreply@blogger.com (TargetInvest) — Sat, 31 Aug 2024 09:11:00 +0000

Blog https://targetinvest88.blogspot.com

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If you do follow my on TargetInvest Telegram, or if you do read my blog posting, you would know by now that I take interest in LCTITAN due to several reason

1. Sharp discount to NTA

Current share price is an attractive 80% discount to the NTA of almost RM 5. With the IPO at RM 6.50, the current share price is very attractive compared to IPO investor a few years ago.

2. Demand uptrend on US interest rate reduction

Petroleum Chemical, Specialty Chemical looking at a rebound as manufacturing look forward to picking up steam as US start to reduce interest rate gradually to stem out a potential recession.

3. Oversupply issue to see an end

China destocking is almost complete going into 3Q 2024. New demand will pick up on 4Q 2024

4. Chemical plant shut down

China closing down smaller chemical plants which have less than 300k ton annual production output. This is in line with China tightening environment regulation. Europe also have plant shut down due to the price pressure.

5. Potential take-over target for Petronas

Lctitan has initiated intention of selling its 75% stake in the Malaysia outfit. Malaysia only potential buyer is Petronas Chemical, which at the same time looking to expand more into specialty chemical as it seeks to replace the revenue lost in Sarawak upstream oil and gas business.

While all the factors are good and interesting, the oil and gas development in Malaysia made it even more interesting as Sarawak take back control on all upstream oil and gas business. (Now start with gas portfolio). Petronas play a very important role in the national coffer, especially when it comes to subsidies. However, as PETROS start to take back upstream business in Sarawak, Petronas will stand to take a potential hit of around RM 100 billion in annual revenue.

Ever since the discussion and start of MA63 in 2018, I noticed that Petronas Chemical had started out acquiring chemical company in a very aggressive manner.

In 2019, Petronas Chemical acquire Da Vinci Group B.V.

PCG Completes Acquisition of Da Vinci Group B.V. | PETRONAS Chemicals Group Berhad (PCG)

Then head on to BASF PETRONAS

PetChem to acquire Gebeng derivatives plant from BASF JV (theedgemalaysia.com)

It also acquired Perstorp in Sweden for RM 10.5 billion

PCG Makes Landmark Acquisition of Perstorp, a Global Leader in Sustainable Specialty Chemicals, for RM10.5 Billion | PETRONAS Chemicals Group Berhad (PCG)

The series of aggressive acquisition had probably sent an underlying message that Petronas is looking to expand the oil and gas downstream business (Chemical division) in order to replace the revenue lost from the asset handover to Sarawak, which is probably looking to complete in Jan 2025.

"While there has not been any formal announcement of a definitive agreement on the transition from Petronas to Petros, Sarawak’s Minister of Utility and Telecommunication Datuk Seri Julaihi Narawi reportedly said that the parties have agreed to sign a definitive agreement by July 1. However, there still had not been any announcement on the signing at the time of writing." taken from TheEdge

Cover Story: Petros’ landmark gas sale agreements a sign of more to come (theedgemalaysia.com)

As of now, there are no official announcement on the handover, except for seeing PETROS signing landmark agreement in gas supply in Sarawak, which could reflect an interesting development behind the wall. However, it will not be a surprise to see Petronas provide an official update on the matter in the later time (official news embargo for 1 to 3 months) as seen before in the contract award for Kasawari CCS project.

Moving forward, the Chemical industry outlook will look set to see an interesting year ahead. As an investor of LCTITAN, I do hope that my investment research will be fruitful.

Referencing material

Petrochemical companies may see a return to normal | McKinsey

Others

Target Invest KLSE: MALAYSIA HYDROGEN ECOSYSTEM - LCTITAN, MISC, M&G (targetinvest88.blogspot.com)

Target Invest KLSE: LCTITAN - A POTENTIAL MISSING PIECE OF JIGSAW PUZZLE FOR PETRONAS ? (targetinvest88.blogspot.com)

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.

Blog https://targetinvest88.blogspot.com

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CENSOF GET HEADSTART ON EINVOICE FROM OTHER LISTED PEERS

noreply@blogger.com (TargetInvest) — Wed, 28 Aug 2024 04:25:00 +0000

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Malaysia had given an extension of 6 month for the 1st phase of e-invoice implementation to all the business that fall in the category of annual revenue turnover which is more than RM 100 million.

While the extension seems to be a dampener for the e-invoice share market hype, I believe that the fundamental of the e-invoice company will not change and such a drop in share price could be a good opportunity to invest in.

There are many companies involve in e-invoice, however the golden lining lies on the accreditation of the service provider by the government. As of current, there are still many companies pending on test and trial with the e-invoice system, however, there are a list of companies which are accredited for e-invoice.

CENSOF is worth a good mention as it is one the listed company in KLSE that had been accredited for the e-invoice system earlier than other of its listed peers (ADB, IFCAMSC, PANDA, YGL) which are still pending on test and trial.

To recap, Censof already have e-invoicing solution and service running in Singapore and some other SEA countries.

Censof partners e-invoicing solutions firm Storecove | The Star

According to the MDEC update on accredited e-invoicing firm, Censof and it's related subsidiary is accredited.

Technically looking, Censof is now trading at the mid term support line

I am invested in CENSOF for the exposure of e-invoice for the long run and I believe CENSOF can benefit from the MyDigital effort further in the future.

IMPORTANT NOTICE

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LCTITAN - A POTENTIAL MISSING PIECE OF JIGSAW PUZZLE FOR PETRONAS ?

noreply@blogger.com (TargetInvest) — Mon, 12 Aug 2024 08:48:00 +0000

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The recent happening in the oil and gas situation in Malaysia had definitely throw an ultimatum to Petronas in searching for asset to replace the potential revenue and profit losses from the handover of Sarawak oil and gas business.

Cover Story: Petros’ landmark gas sale agreements a sign of more to come (theedgemalaysia.com)

This is one of the political promises to honor MA63 agreement.

While it will be a good progress for Sarawak, but Petronas being one of the major revenue and income for Malaysia, it is important to seek for other asset to replace loss of revenue and profit.

LCTITAN main business activities are producing chemical product from refined oil and gas material. Lotte Chemical Titan Holding Berhad (LCT) is a Malaysia-based investment holding company, which manages LCT Group. The Group, comprising the Company and its subsidiary, is an integrated petrochemical producer with two principal product categories: Polyolefins, consisting of polyethylene (PE) and polypropylene (PP), and Olefins, including ethylene and propylene, together with other derivatives, such as butadiene, tertiary butyl alcohol (TBA), benzene and toluene. The Company's products are mainly distributed to plastic fabricators and trading houses in both domestic and export markets, such as China, South Korea, Indonesia and other Southeast Asian countries, as well as various European countries. Other business activities of the Group include investment holding and the manufacture of synthetic rubber. Lotte Chemical Titan Holding Berhad's subsidiaries include Lotte Chemical Titan (M) Sdn Bhd, Lotte Chemical Titan Trading Sdn Bhd and Lotte Chemical Titan Corporation Sdn Bhd.

The recent profit margin squeeze had placed a difficult position in LCTITAN to be profitable as factory utilization rate still hang around 60 to 65%. This had caused LCTITAN continuous losses for 9 quarters, forcing the owner to look into selling the whole Malaysia LCTITAN unit and focus on higher margin business - battery material

One of the reason LCTITAN cannot be profitable is due to LCTITAN do not have refinery business. Unlike Petronas Pengerang Integrated Complex, the upstream downstream refinery until end product can provide the company a strong top to bottom approach in operational profitability.

LCTITAN FOR SALE

News of LCTITAN looking to sell is circulating in the market for quite some moment. However, as the industry is very niche and specialize, there are not much buyer in the market. For the case of Malaysia, it will probably only be Petronas Chemical Group.

Petronas probably had saw the potential of oil and gas business handling back to Sarawak state control Petros, and had formulated a move to diverse out from upstream operation into downstream, with focus on specialty chemical.

Petronas Chemical had bought over BASF PETRONAS JV factory plant in Gebeng Kuantan in 2021.

The most recent will be PERSTORP HOLDING AB from Sweden in 2022.

PCG Makes Landmark Acquisition of Perstorp, a Global Leader in Sustainable Specialty Chemicals, for RM10.5 Billion | PETRONAS Chemicals Group Berhad (PCG)

However, the vacuum of RM 100 billion revenue loss is very big, and potentially can see Petronas going to seek more M&A to boost back the revenue and profit.

An opportunity to acquire LCTITAN is very much a big potential and a deal both parties are looking at, LCTITAN being eager to sell, and Petronas being eager to expand into Chemical.

As an investor, I need to inform my reader that I am invested into LCTITAN due to it's attractiveness in potential coming sale, current share price RM 1.02 being just 21% of the NTA RM 4.99. LCTITAN unit also will be able to produce toluene for future MCH transportation which will be profitable.

Reference

Target Invest KLSE: HOW MUCH HYDROGEN CAN 1 MOLECULE OF TOLUENE CARRY? HOW MUCH TOLUENE IS NEEDED FOR HYDROGEN STORAGE AND TRANSPORT BETWEEN MALAYSIA AND JAPAN KOREA? (targetinvest88.blogspot.com)

IMPORTANT NOTICE

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HOW MUCH HYDROGEN CAN 1 MOLECULE OF TOLUENE CARRY? HOW MUCH TOLUENE IS NEEDED FOR HYDROGEN STORAGE AND TRANSPORT BETWEEN MALAYSIA AND JAPAN KOREA?

noreply@blogger.com (TargetInvest) — Wed, 05 Jun 2024 02:28:00 +0000

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

We are reaching to the 2nd half of 2024. Had you started out your equity market investment in 2024? An investment is where you had study deeply on a certain industry / company, and you are convinced of your study and research, and you can see the potential growth, and willing to put your capital to work, holding it for maybe 1 to 2 years in order to see your invested company come into fruition. We can be talking of multi baggers, 50 to 100% or more.

Here I am invested in CENSOF, and I am still invested in CENSOF without selling a single share. While CENSOF had went up steadily, I had discovered LCTITAN, and I am too invested in LCTITAN due to it's potential growth and involvement in the hydrogen storage logistic, by producing a chemical named Toluene, to mix with hydrogen to get MCH (methylcyclohexane)

Today, I am going to share more in depth of how much hydrogen a molecule of toluene can carry, and working on the potential production needed, along with potential revenue.

The whole reaction involves

3 hydrogen = 3 H2

1 toluene = C6 H5 CH3

and mixing it with a reagent and around 200 degree celcius heat, you get 1 molecule of MCH

1 MCH = CH3 C6 H11

So we will work on the molecule weight of each

1 MCH = 98.186 g/mol

1 Toluene = 92.148 g/mol

3H2 Hydrogen = 6.038 g

(1 H2 = 2.013 g/mol)

Working out on the percentage

1 MCH = 93.85% of TOLUENE + 6.15% of HYDROGEN

Which means, every 1 TON of MCH, it will contain 61.5KG of HYDROGEN that can be dehydrogenated out to use.

According to Petronas,

Kerteh will be exporting 50000 ton of blue hydrogen using MCH (Spot 1 and 2)

Sarawak will be exporting 90000 ton of green hydrogen using MCH (Spot 4)

The total will be 140,000 ton of hydrogen that will be transported via MCH

How much TOLUENE will be needed to transport 140,000 ton of hydrogen?

We will use the formula 140,000 ton / 0.0615 X 0.9385 = 2,136,422 ton of Toluene

Now 1 ton of Toluene is selling around USD 1100 to USD 1300.

The total potential revenue is 2,136,422 x USD 1200 (avg pricing) x RM 4.7 (exchange rate) = RM 12,049,420,080.

Now that is a whopping extra RM 12 billion of Toluene sales coming into LCTITAN pipeline in the future.

According to research, Toluene has a shelf life of 1 year.

If LCTITAN work on a 10% margin, that will be RM 1.2 billion of profit.

Looking at the chart, it looks like LCTITAN had a break out on downtrend on end of May closing, however, it went back down starting beginning of June.

I will possibly explain this situation in my next posting.

I want to informed that I am invested in LCTITAN due to it's prospect in hydrogen storage logistic. Hydrogen is a good prospect as energy storage due to zero carbon produce during the burning process, and many country are shifting towards hydrogen.

IMPORTANT NOTICE

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MALAYSIA HYDROGEN ECOSYSTEM - LCTITAN, MISC, M&G

noreply@blogger.com (TargetInvest) — Thu, 23 May 2024 07:12:00 +0000

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I had been covering on Hydrogen and how LCTITAN can be involved in the hydrogen logistic ecosystem by producing Toluene as a hydrogen carrier to become MCH (Methylcyclohexane)

You can read more here

Target Invest KLSE: HOW LCTITAN CAN BE ROPING INTO THE GREEN HYDROGEN ECOSYSTEM WITH TOLUENE? (targetinvest88.blogspot.com)

I would like to share more on the whole ecosystem and it's stakeholder and company which can be potentially involved in other parts of the hydrogen logistic.

Currently, LCTITAN seems to be very undervalued with NTA ranging at RM 5.

With Blue Hydrogen slated to commence delivery in 2025, LCTITAN toluene production should be kicking in, and will be looking to utilize the factory more towards 90%.

Can LCTITAN finally break out from this down trend and come out like a shining star?

I am invested in LCTITAN and very interested in the green hydrogen ecosystem.

IMPORTANT NOTICE

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

HOW LCTITAN CAN BE ROPING INTO THE GREEN HYDROGEN ECOSYSTEM WITH TOLUENE?

noreply@blogger.com (TargetInvest) — Mon, 20 May 2024 14:05:00 +0000

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Today, I would like to share with you all my reader a potential stock with great exposure in the upcoming development of the green energy era.

As we are battling with global climate warming, develop nation all over the world is rushing to find another alternative to the current energy demand, which boils down to -> renewable energy. The renewable energy sector is very big and diverse, but a cleaner option would be wind, solar and hydro.

But some countries do not have the condition to generate enough sustainable renewable energy, hence will result into importing renewable energy in the form of HYDROGEN (H2).

Malaysia is blessed to be natural resources and ample of sunlight, and Japan and Korea had chosen Malaysia as one of their future renewable energy sources - to use solar and hydroelectric to generate electricity for electrolysis of water into oxygen and hydrogen

Sarawak aiming to be hydrogen hub - MIDA | Malaysian Investment Development Authority

Petronas partners Eneos for hydrogen-to-MCH project (themalaysianreserve.com)

Terengganu berpeluang jadi hub hidrogen Semenanjung Malaysia | MalaysiaNow

Hino joins hydrogen demo study; Advent participates in decarbonising maritime (h2bulletin.com)

What is MCH (Methylcyclohexane)? Why Japan and South Korea is using MCH as Hydrogen import?

Hydrogen can be transported in many forms. Gas form is not viable because it lacks density. Liquid hydrogen is very cost because it is very you need it to be freeze into -253 degree celsius, and stored at constant -162 degree celsius, which is very energy draining.

Hence the alternative will be storing hydrogen as mixture liquid, which is

1. Ammonia (NH3)

2. MCH (methylcyclohexane)

However, Ammonia is corrosive, and will not be suitable to be stored in the existing infrastructure of the oil storage tanks in Japan and Korea.

The best option is MCH, which is a product by mixing hydrogen and toluene.

MCH characteristic

- stable in room temperature

- can be stored in existing oil drum storage facilities

- can be shipped by existing marine oil tanker

- can hold more hydrogen than other liquid

- can be recycled to use

JGC wins FEED contract for green hydrogen project in Malaysia | Upstream (upstreamonline.com)

So how does LCTITAN come into the picture of HYDROGEN and MCH (Methylcyclohexane) ?

From a chemical producer running into green energy supply chain, LCTITAN is poised for a strong rerating as they will be the main player in the whole picture of hydrogen to MCH conversion.

LCTITAN is the main producer for a critical component in the creation of MCH -> toluene

Product Guide | LOTTE CHEMICAL TITAN

Hydrogenation of toluene:

CH3 C6 H5 (Toluene) + 3 H2 (Hydrogen) → CH3 C6 H11 Methylcyclohexane

I will be sharing more information on this area soon.
How much hydrogen is needed by Japan and South Korea?

How much toluene will need to be produce?

What is the timeline?

What is LCTITAN strategy in Malaysia and Indonesia?

Finally, and most interestingly, are you ready to get invested into green hydrogen supply chain by looking up at LCTITAN? I have to informed my reader that I am invested in LCTITAN because of this green hydrogen energy transfer between Malaysia and Japan / South Korea. I had also found of that Petronas Chemical do not produce Toluene, which make LCTITAN a possible sole producer for now.

Please do your own research and study on this area before investing.

IMPORTANT NOTICE

Blog https://targetinvest88.blogspot.com

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IS CENSOF WORTH YOUR HOLDING FOR THE NEXT 3 YEARS? READ THIS BEFORE DECIDING

noreply@blogger.com (TargetInvest) — Fri, 17 May 2024 07:18:00 +0000

Blog https://targetinvest88.blogspot.com

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I am sure that you are aware that I am invested in CENSOF for quite some time (More than 1 year).

From the start when the price is around RM 0.22, I am invested into CENSOF and continue to be invested by adding more shares into my portfolio.

You can refer to my sharing of CENSOF here.

Target Invest KLSE: CENSOF GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION (targetinvest88.blogspot.com)

Target Invest KLSE: WHY I AM INVESTED INTO CENSOF (targetinvest88.blogspot.com)

Target Invest KLSE: E-invoice candidate, who is the best deal now? (targetinvest88.blogspot.com)

The main question is here. Currently, CENSOF is trading at RM 0.30, is this the time to take profit? Can I stay invested into CENSOF longer? What are the business prospect outlook for CENSOF?

By now, most of the technical trader had exited CENSOF. However, there will still be a new batch of trader who will be entering CENSOF for the upward ride.

I will be sharing you my view on CENSOF for the next 3 years and also why this share can be worth to hold for dividend as well.

Malaysia government will be rolling out digital government services, and a lot of it will require transfer of services and storage from physical into digital.

And CENSOF will be one of the main integration partners in all this transfer.

We will be referring to storage of E-invoices, Digital ID, E-passport, and even your house purchasing e-SPA.

This will make CENSOF very good in having GOVERNMENT services and also can enjoy commercial side of business (E invoice). With the current position of net cash and growing strong business model, CENSOF can be a future good dividend company.

For technical view

CENSOF already completed a series of downtrend. The current up trend will be supported with

1. Government digitalization effort

2. Commercial e-invoice and ERP system

I am still invested in CENSOF, and will keep invested into CENSOF for dividend play for the future.

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HOW MUCH DO YOU THINK PAOS WILL GET FROM LAND REVALUATION OR CASH FROM POTENTIAL LAND SALE FOR MALAYSIA HIGH SPEED RAIL DEVELOPMENT

noreply@blogger.com (TargetInvest) — Mon, 29 Apr 2024 13:56:00 +0000

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In my previous posting on PAOS, I mentioned on the potential of factory land acquisition by myHSR for the construction of HIGH SPEED RAIL HSR PUTRAJAYA station around the area of Banting.

MALAYSIA HIGH SPEED RAIL PUTRAJAYA STATION POTENTIAL SITE TO SEE LAND ACQUISITION INVOLVING PAOS FACTORY IN BANTING

noreply@blogger.com (TargetInvest) — Thu, 25 Apr 2024 09:22:00 +0000

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Malaysia is picking up steam on the progress of HSR. While the main place of the station is well known, such as Bandar Malaysia, other places such as Putrajaya, Seremban, Melaka is a guess for most.

Earlier, Target Invest spot a potential location of HSR Batu Pahat landing. You can find it here

Target Invest KLSE: HWATAI - FROM SELLING BISCUIT TO SELLING LAND FOR HSR BATU PAHAT ? (targetinvest88.blogspot.com)

Today, Target Invest would like to make a very good guess on the possibility of the potential location of HSR Putrajaya station and railway line alignment.

After a series of studies, the potential site for the MALAYSIA HIGH SPEED RAIL HSR Putrajaya Station might be landing at Banting.

It will be the best alignment as it will not cut through the KLIA from Seremban. And the location will still have a good proximity to KLIA.

Zooming into it, I will place my bets on the site being here at Banting Industrial area.

The area will eat up a huge place for railway path, parking and other infrastructure.

The site will potentially take up a few factory as to make way for station and railway.

PAOS HOLDING BHD will be in the vicinity of the land for the Putrajaya HSR station and railway which is highly potential to see land acquisition.

There is also a very high co-relationship in Batu Pahat land acquisition and Putrajaya in terms of share prices of potential company involving in land sale.

As of my previous blog, Batu Pahat potential candidate is HWATAI.

Today reveal of Putrajaya candidate will be PAOS.

As you can see, HWATAI and PAOS share price movement are identical on the time frame.

They also have identical shareholder which can further give the case a better boost on the linkage that this 2 companies are going to see their land asset being buy back for HSR station or railway.

So what do you think of this piece of information?

PAOS -> HSR PUTRAJAYA

HWATAI -> HSR BATU PAHAT

HOW MUCH IS MY PREDICTION ON SHARE PRICE MOVEMENT?

BASED ON 100% RETURN THEORY (MY OWN THEORY),

HWATAI COULD BE RM 1.20

and

PAOS COULD BE RM 1.00

If you cannot buy land to capture the opportunity, probably buying shares can get some fractional exposure towards the excitement in the development of the HSR news.

PLEASE BE INFORMED THAT I AM IN NO POSITION LINK WITH ANYONE WITH HSR INFORMATION, GOVERNMENT PERSONNEL, OR INSIDERS. ALL INFORMATION IS PURELY BASED ON EXISTING AVAILABLE INFORMATION ON THE INTERNET, ANNUAL REPORT AND SHARE PRICE MOVEMENT. ALL THE ABOVE INFORMATION IS JUST MY VIEW ON POTENTIAL HSR DEVELOPMENT SITE BASED ON ANNUAL REPORT LAND ASSET, SHARE PRICE MOVEMENT AND COMMON SHAREHOLDERS.

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E-invoice candidate, who is the best deal now?

noreply@blogger.com (TargetInvest) — Tue, 09 Apr 2024 06:26:00 +0000

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Malaysia is launching on e-invoice test run on the month of May 2024, while the 1st batch of compulsory participating company with annual revenue above rm 100 million will go live on August 2024.

So while the trend is going to be picked up soon, let me show you some of the listed company that are involved in e-invoice/ pos system / erp system.

Here is 4 commonly known listed player in KLSE

1. ADB - 0276

2. CENSOF - 5195

3. IFCAMSC - 0023

4. PANDA - 0290

ADB and PANDA is the 2 companies that went IPO within the past 12 months period.

1. ADB

ADB annual revenue is around RM 40 million, with net profit at rm 12 to RM 13 million region

Market capitalization for ADB is RM 522 million with share price at 95 cents region

2. CENSOF

Censof got 2 types of customers. Government and commercial. On the commercial side of business, Censof software sales is around RM 25 million (Since e-invoice is only for commercial business)

The profit for the commercial customer is around RM 7 million annually on average.

3. IFCAMSC

IFCAMSC got the higher revenue compared to all the other, averaging RM 75 million for it's software services. However, it lacks on net profit margin, with the latest 4 quarter net profit at just RM 2.6 million. IFCAMSC can go further if they embark on internal operating cost restructuring.

Market cap is RM 200 million at the current share price.

4. PANDA

Panda annual revenue is around RM 23 million, with net profit at RM 4.3 million range. The market cap for PANDA is now at RM 208 million. The share price has seen a good run forward in the midst of implementation of e-invoice.

TARGET INVEST OPINION

In my opinion, CENSOF and PANDA commercial customer revenue base is very comparable, which is sitting at the range of RM 25 million. However, looking at the valuation, PANDA is currently valued at RM 200 million while CENSOF is just RM 140 million. That is not including the government side of business profit that CENSOF is bringing in to the shareholder.

Should CENSOF trade towards RM 200 million market cap valuation, CENSOF share price will be trading at RM 0.36 per share.

Current share price (RM 0.25) of CENSOF is 30% below valuation for peer to peer comparison on commercial SME customer base. Adding in government revenue and profit will bring CENSOF value more than RM 300 million.

What do you think of the 4 selections? Which one is undervalue?

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HWATAI - FROM SELLING BISCUIT TO SELLING LAND FOR HSR BATU PAHAT ?

noreply@blogger.com (TargetInvest) — Fri, 05 Apr 2024 01:03:00 +0000

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Malaysia government had restarted the HSR (KL-SG) project under Prime Minister Anwar Ibrahim. Ever since then, listed company especially property developer with prime land located near to those subject area had been going up strongly.

This big project will be carrying a mega price tag worth more than RM 100 billion, which include land acquisition and infrastructure construction cost.

As of the latest, three consortia is believed to be on the short listed candidates.

Three consortia believed to be on shortlist for KL-Singapore HSR project (theedgemalaysia.com)

The three consortia are YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd, Malaysian Resources Corp Bhd-IJM Construction Sdn Bhd-Berjaya Rail Sdn Bhd-Keretapi Tanah Melayu Bhd (MRCB-IJM-BRail-KTMB) and a Chinese consortium said to be led by state-owned China Railway Construction.

Most of the developer sitting in big plot of prime land in Johor had saw share price riding up high. While Bandar Malaysia co-owner IWCITY saw share price double up from 40 cents to 80 cents region. UEMS from 25 cents to RM 1.20. SPSETIA from 50 cents to RM 1.40. While those are the big names that had liven up, there are smaller player which will be benefiting from the land acquisition.

I will zoom into the HSR BATU PAHAT station.

As you can see, the HSR station will be from Jurong West -> Iskandar Puteri -> Batu Pahat -> Muar -> Ayer Keroh -> Seremban -> Putrajaya -> Bandar Malaysia

For the case of Batu Pahat, the only best possible slot to go through the town city will be the small neckline of land which comprises of a few old factories.

According to research and studies, the potential proposed station will be most probably on the east side, and follow by an elevated railway that will cut through the northern side of Batu Pahat.

The best possible location is owned by Hwatai biscuit factory.

The current land occupied by Hwatai are all leasehold. Most of the land are not revalued. While remainder lease is low, there are many hidden value inside the land that could possibly bring Hwatai worth more than RM 150 million from compensation.

Based on oustanding shares of 74.833 million shares, that compensation will give Hwatai a war chest of RM 2 per share.

Currently, HWATAI shares is trading at 55 cents. What is to be seen in the future when the HSR railway is confirmed will be the revealed soon.

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MAGNIFICIENT 7 SPENDING ON DATA CENTER EXPANSION GIVING SEAGATE A BIG LIFT UPWARDS, WHAT ABOUT MCLEAN?

noreply@blogger.com (TargetInvest) — Mon, 01 Apr 2024 06:53:00 +0000

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If you had been following my updates on Mclean, you would know that Mclean major customer in surface treatment and cleaning services is mainly provided to SEAGATE in Thailand and Singapore.

Mclean performance will be highly related to SEAGATE performance.

And now with the MAGNIFICIENT 7 company pumping in multi billion into data center to cater for the coming demand from GENERATIVE AI. While high end graphic processor from NVIDIA is the main actor in GENERATIVE AI, the whole equation cannot be completed without ample of storage capacity, where SEAGATE HDD will come into play.

Let's take a look at how much big corporate are spending into the next generation data center.

Microsoft, OpenAI plan $100 billion data-center project, media report says | Reuters

Microsoft + Open AI = USD 100 billion

Oracle (ORCL) Sales Beat Estimates as Cloud Growth Stabilizes - Bloomberg

Oracle unveils $10B data center expansion plan | Construction Dive

Oracle, USD 10 billion

Google to invest $1 billion in UK data centre | Reuters

Google expanding on UK data center - usd 1 billion

Amazon Bets $150 Billion on Data Centers Required for AI Boom - Bloomberg

Amazon - usd 150billion

Meta projects $35 Billion expenditure in 2024, mostly on AI data centres - The Tech Capital

Meta, Facebook - USD 35 billion

With so much interest being center into AI and Generative AI, analyst are looking at spending capex of more than USD 1 trillion by 2027

Data center capex could top $1 trillion by 2027 thanks to AI (silverliningsinfo.com)

Seagate as the leading HDD supplier in market command 43% of market share. With the latest launch of HAMR HDD, SEAGATE will be looking to capture more market share back into it's fort.

With a projection of more than USD 1 trillion looking to be spent into data center in the next 4 years, what is going to be of Mclean, being a critical supplier for surface cleaning and treatment for Seagate?

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MCLEAN TURNAROUND FORTUNE WITH AI

noreply@blogger.com (TargetInvest) — Sun, 31 Mar 2024 10:38:00 +0000

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Mclean had been laying on the low for quite a while after a sensational run from cryptocurrency chia coin craze. The company shareholder then proposed for a new business injection, however the proposed business did not materialize, which might be a blessing in disguise as Mclean is able to focus back on what they do best - providing surface cleaning services to their main customers - SEAGATE Thailand and SEAGATE Singapore.

WHY SEAGATE DEVELOPMENT IS IMPORTANT TO MCLEAN ?

Mclean provide it's expert services in tray cleaning, surface treatment and cleaning to it's main customer SEAGATE. SEAGATE business going up or down is very important to Mclean.

As we can see from chart, SEAGATE share price has some co-relation with Mclean

By comparison, you can see that SEAGATE share price is up during 2021/2022 era, which is almost similar to Mclean 2021 surge which is due to Chia Coin cryptocurrency launching which farm coin using storage space. However, the craze fizzle out as more and more coins come out to the market.

The new surge in HDD storage space demand will be due to GENERATIVE AI entering into production stage. Generative AI will be the next big thing as big corporate like Apple, Google, Meta, Microsoft, Oracle are pumping in more than USD 1 trillion to build data center.

The latest invention from SEAGATE - 30 to 32TB HAMR HDD (Heat assisted magnetic recording) can be scaled up until 50tb in the future. The HDD is on the green light for mass production now and all big corporation is spending big and giving big orders to storage space provider like SEAGATE, WESTERN DIGITAL AND TOSHIBA.

As you know MCLEAN is highly relatable to SEAGATE, the coming GENERATIVE AI push will definitely see SEAGATE going busy for the next 10 years.

For the case of MCLEAN, do you see this as an opportunity or miss?

I will discuss more on Mclean further again.

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WHY I AM INVESTED INTO CENSOF

noreply@blogger.com (TargetInvest) — Thu, 04 Jan 2024 13:56:00 +0000

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As you can see, I am definitely invested in the e-invoice ecosystem. While there are many players in this industry, some are public listed and some are unlisted entity.

While I am in invested in almost all of the public listed company in KLSE which offer e-invoicing / ERP system / POS system, I found a stronger liking to Censof due to several reason

1. Strong relationship with the Malaysia government. Censof is providing software solution service to critical government services in Malaysia.

2. Established player in the POS / ERP ecosystem, with various software catering for different industry from F&B, Manufacturing and construction.

3. Have established pool of customer connected into PEPPOL framework in Singapore, Hong Kong

4. Strong cash flow and giving dividend for past 2 years

5. Net cash company

The ERP research and development is developing very fast, especially with the emergence of Artificial Intelligence.

Soon, ERP system will be equipped with AI to provide insight, projection and probably solution to business owner, which will further put deeper valuation to software provider company.

With such solution running on SaaS (Software as a Service) on cloud internet, and the requirement of the Malaysia government to mandate e-invoice as a compulsory implementation to all businesses by 2025, subscription and renewal fee will be a solid cash flow.

Censof already break out from long term down trend. New trend is back up with e-invoice factor to support stronger fundamental.

While it will take some time to see revenue coming in, however, I think the current share price is very good for long term investor looking for both capital gain and dividend yield in the future.

My previous posting on Censof

Target Invest KLSE: CENSOF GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION (targetinvest88.blogspot.com)

Target Invest KLSE: Malaysia to incentivize digitalization with RM 100 million grant, to benefit CENSOF and others ERP provider (targetinvest88.blogspot.com)

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Malaysia to incentivize digitalization with RM 100 million grant, to benefit CENSOF and others ERP provider

noreply@blogger.com (TargetInvest) — Fri, 29 Dec 2023 02:53:00 +0000

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Malaysia effort to make e-invoice a compulsory for all business by the 2026 will spearhead the growth of POS and ERP system. ERP/POS system provider with revenue model based on SaaS will be able to enjoy a high subscription rate, hence better profit in the coming days.

One of the more established player in the ERP landscape in the SME will be Censof, ABSS.

Accounting Software for Small Businesses | ABSS MY (abssasia.com)

ABSS had been providing e-invoicing services in Singapore and Hong Kong with PEPPOL partnership.

E-invoicing | ABSS MY (abssasia.com)

Understanding traditional invoicing vs e-invoicing through PEPPOL Framework.

E invoicing

The e-invoicing take up rate will be boosted with government initiative to provide RM 100 million digitalization grant to MSME.

Deputy finance minister: IRB to run continuous engagement sessions to firm up e-invoicing requirements | Malay Mail

I am invested in Censof because I can see the growth in the industry for the long term. Censof is also an established player with good fundamental and links to the government services which will further give Censof additional advantages.

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CENSOF GROWTH OPPORTUNITY WITH COMPULSORY E-INVOICE IMPLEMENTATION

noreply@blogger.com (TargetInvest) — Sun, 17 Dec 2023 09:15:00 +0000

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Malaysia is going to implement e-invoice in stages, with a compulsory implementation by year 2027 in all businesses.

LHDN to launch ‘e-invoicing’ system next year (themalaysianreserve.com)

The first stage will be targeted for businesses with turnover exceeding RM 100 million. Subsequently, in 2025 will be business with turnover exceeding RM 50 million. 2026 is for businesses with turnover exceeding RM 25 million, while 2027 will be for all business.

How is this going to benefit Censof in the long run?

Home - Censof Holdings

Censof core business is to provide software solution for financial management system to both government and commercial SME businesses. To make it easy - their business is "Software as a Service".

According to the latest figure, there are approximately 1.22 million of SME in Malaysia, contributing to 38% of the GDP in Malaysia.

Emergence of a new big market pie with compulsory implementation of e-invoice feature in all businesses.

The type e-invoice that is going to be implemented in Malaysia is going to be real time, to ensure that the e-invoice meet the necessary standards and criteria.

With the real time requirement, the software provider will need to link to LHDN system. Hence the software will need a renewal fee every year for support and maintenance.

With the adoption of e-invoice, it will be estimated that each SME will be needing to pay around RM 3000 to RM 4000 (depends on software complexity and number of users).

In summary, the compulsory implementation of e-invoice will bring about a new big market of RM 3.66 billion worth of business in ecosystem of ERP/POS system. (1.22 million SME x RM 3000)

If Censof is about the capture 15% of the market, that will be worth RM 550 million a year in revenue.

I am invested into Censof for a long term as I can see the potential of the company revenue and profit and dividend growth in the next 3 to 4 years.

Will be looking and sharing Censof software application and potential in the following update.

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Can MYCRON surge a signal for privatization from Melewar ?

noreply@blogger.com (TargetInvest) — Thu, 16 Nov 2023 14:26:00 +0000

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The recent boardroom tussle in KNM had the spot light shining towards Tunku Dato Yaakob Khyra. Despite able to fence off the German billionaire led boardroom revamp, there are still much to be done in order to bring KNM out of the dark.

To recap on, Tunku Dato Yaakob Khyra is the single largest shareholder in KNM through indirect shareholding from Melewar Industrial Group Bhd, which is held by MAA Group Bhd.

Melewar > 29.89% MAA > 9.44% KNM

It is also known that Tunku Dato Yaakob Khyra control Mycron through Melewar.

Melewar > 74.13% Mycron

The restructuring of KNM involve a series of asset disposal as well as listing of core asset - Borsig GMBH. However, KNM restructuring effort could had hit a speed bump when Italian Government block the sale of FBM Hudson.

Italian govt nixes KNM unit’s RM112mil disposal of FBM Hudson | Free Malaysia Today (FMT)

KNM had applied for PN17 extension for 1 year.

KNM seeks one-year extension to submit PN17 regularisation plan | Free Malaysia Today (FMT)

While the result of the extension is still unknown, there are some solid movement from Tunku Dato Yaakob Khyra in fund raising activities. The latest involving an asset sale from MAA Philipine business for RM 235 million.

Tunku Yaacob’s MAA surges 37% after selling Philippine biz | Free Malaysia Today (FMT)

While there are much more to be done, the sudden surge in Mycron could raise some eyebrown.

Given Melewar already own 74.13% of Mycron, the surge could ring a bell on potential privatization as to enhance the balance sheet of Melewar.

It is worth to note that the NTA of MYCRON is RM 1.51 based on last financial quarter.

At a steep 50% discount for take over offer will still put it at RM 0.75.

For now, it is anyone guesses on what will be the outcome of Mycron. I wished to inform that I am invested in Mycron as to see along with potential corporate movement.

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Theta gearing up for Jendela Phase 2.0 ?

noreply@blogger.com (TargetInvest) — Wed, 12 Jul 2023 16:17:00 +0000

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The recent market is volatile and trading in thin volume. With the state election coming up in August, many investors will perceive this moment as risky and will not get into big positions to invest. However, some investors will see this as a window of opportunity to get good deals.

One of the major government project that will be announcing soon will be the Jendela phase 2.0, which will be slated on 3q 2023

MCMC COO: Jendela will roll out its Phase 2 later this year | Malay Mail

Jendela Phase 1.0 had a budget of RM 28 billion. For Jendela Phase 2.0 will be more on 5G, and the budget will be finalized later on.

Theta Edge is one of the appointed contractor for the Jendela Phase 1.0 project. The total project site won by Theta is 221 location, worth RM 154 million.

Theta Edge appointed to implement Jendela Phase 1 project (themalaysianreserve.com)

With the timely and good delivery for Jendela Phase 1.0, the existing contractor involved in the phase 1.0 will have a bigger chance to be appointed for phase 2.0.

Furthermore, one of the uprising player - Opcom, had terminated it's agreement with Global Forway. This will indirectly give the existing player to get a bigger pie for the phase 2.0.

Opcom Terminates Agreement After Failing To Secure 5G Contracts | BusinessToday

The other running listed contenders for the Jendela phase 2.0 could see OCK, Mestron, Handal.

Based on the previous sizable contract won by Theta, it is a good reference to bet on another sizable contract from Jendela phase 2.0 by Theta.

Theta is a subsidiary of Lembaga Tabung Haji, and in turn, Lembaga Tabung Haji is under the purview of PMO department. It will be crucial for the current unity government to ensure that Lembaga Tabung Haji will be able to secure the interest of muslim hajj contributors in the long run.

Technical chart of Theta is looking for a break out after a 1 year consolidation.

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

noreply@blogger.com (TargetInvest) — Thu, 13 Apr 2023 16:56:00 +0000

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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.

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Malton might see a special dividend prior to disposal of Pavilion Bukit Jalil for RM 2.2 billion

noreply@blogger.com (TargetInvest) — Tue, 04 Apr 2023 16:19:00 +0000

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One of the largest real estate transactions for the year 2023 will be the disposal of Pavilion Bukit Jalil for RM 2.2 billion to Pavreit. The transaction will finally see Malton Bhd cashing in the gain from the 51% joint venture of Regal Path Sdn Bhd, a subsidiary which holds the 50 acres prized shopping mall.

While the disposal of the shopping mall at book value RM 2.2 billion will result in the company losing money due to the cost of disposal and other related cost, it must noted that the price tag of RM 2.2 billion actually carries a profit of RM 200 million recognized earlier due to revaluation of the property.

In simple terms, Malton 51% ownership will see approximately RM 100 million of profit from the disposal process coming back to the company in the form of cash.

The payment term will be set out in the following manner

The full cash scenario will see RM 2.2 billion paid by cash, while the minimum cash scenario will be RM 1.6 billion in cash and RM 600 million worth in issuance of shares.

Pavilion Bukit Jalil started work in 2015. Loyal shareholder had held out from 8 years to see the fruit of the labour.

With the current share price lingering around RM 0.42 against the NTA of RM 1.87, there is certainly a big gap in the market price with the underlying value of the company. As the disposal of Pavilion Bukit Jalil is certainly to beef up the company cash level, there will be a very high chance to reward loyal shareholder with a special dividend as the last dividend Malton paid out is 2019.

Another catalyst for Malton will be the opening of Pavilion Damansara Height in May 2023.

Pavilion Damansara Heights Mall Phase 1 to open in May 2023, secures tenants for over 70% retail space | The Edge Markets

I am obliged to inform you that I had invested in Malton due to

1. Current share price is at steep discount to NTA, and cheaper than the price 10 years ago

2. Potential special dividend to reward shareholder from Pavilion Bukit Jalil

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CUSCAPI TO BENEFIT ON GST IMPLEMENTATION - GST CAN BE DELAYED, BUT CANNOT BE DENIED

noreply@blogger.com (TargetInvest) — Sun, 05 Feb 2023 14:49:00 +0000

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With Malaysia growing debt in the short term, it is crucial for the current government to address the government debt issues in order to keep the country's debt in control. While Malaysia still has a few options in order to increase government tax collection, and one of the more effective and efficient tax collection method could be the GST.

GST best way to increase revenue, World Bank lead economist tells Malaysia (theborneopost.com)

Citing on World Bank's lead economist comment on Malaysia option to increase government revenue, the GST is one of the best options for the country. A lot of developed country had adopted GST as it is a proven method to collect tax in a more effective manner.

GST is able to tax the untaxed category that is making a living and staying in Malaysia. That will include foreign workers which is more than 2 million of peoples.

About 2.1 million foreign workers in Malaysia as at June 2022, says Statistics Dept | The Star

If we put in a GST rate of 4%

2 million foreign workers with each spending RM 1,500 a month on GST items.

2,000,000 x RM 1,500 x 4% = RM 120,000,000 per month GST collection

1 year

RM 120 million x 12 = RM 1.44 billion

The above is just an example on how GST can help government to get more revenue.

Malaysia had learned a lot from the 1st implementation of GST. One of the major challenges is the GST filling and GST refund.

In order to streamline this process and minimized human error, and reduce the time needed for GST refund, it is suggested that the GST eco system should be connected directly to the Kastam server for live data feed in.

1. This will eradicate malpractice of business owner doing business with 2 set of revenue (a real revenue and a edited revenue for submission)

2. It will also cut off the process of using human to key in GST data into government server every quarterly, which is waste of time and prone to error.

3. It will also enhance GST refund process to the vendors and suppliers.

CUSCAPI - A PIONEER AND PROMINENT PLAYER IN THE F&B INDUSTRY POS SYSTEM

CUSCAPI is an established player in the F&B industry POS system.

With client spanning across South East Asia, the company is set to see more client in the future with the implementation of GST.

At the current price of CUSCAPI, can the share price rose again towards it's recent peak at RM 0.45?

Next on will share with you on my views on CUSCAPI AND GST - WHAT IS THE POTENTIAL BUSINESS MODEL.

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MCLEAN EYING TO MAKE IT BIG ON NICHE BIOTECHNOLOGY SECTOR WITH 40% CAGR

noreply@blogger.com (TargetInvest) — Sun, 15 Jan 2023 14:49:00 +0000

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Every crisis is an opportunity. As most of Malaysian equity were settled down at the lower price range, does not this turn into an opportunity for a good bargain?

Revisit back to Mclean (0167), this company is involved in the E&E industry, specifically on surface treatment and cleaning, with major customer in the HDD industry. While the development of better HDD technology continued to keep HDD relevant in enterprise data storage, Mclean took a big step in diversifying in healthcare through asset injection from the current major shareholder - Yeo Hock Huat.

The latest proposal involving asset injection - Biocair, a Singapore based home grown brand that manufacture and sell bio-active disinfectant.

Room Disinfection Air Sanitizer Machine for Homes | BioCair

The acquisition will be funded through

- private placement

- rights issue and free warrant upon subscription

Upon completion, Mclean will own 60% of JCS Biotech Pte Ltd, which is the holding company for the disinfectant brand, Biocair.

The acquisition will come with a profit guarantee of SGD 5.5 million.

The fund raising and acquisition will also provide a bridge for

Biocair to penetrate into Europe (UK) market for the start.

The market prospect for disinfectant is growing very strong, with CAGR of 41% in the global export market. The covid-19 pandemic had help raise awareness on usage of air purification in the general market.

Market observers are of the view that medical sanitization which include air purification are here to stay. This once a niche segment will be a big growing market especially in the developed country.

The BAIT AND HOOK BUSINESS MODEL

One of the strong and successful business model is bait and hook model. There are a lot of successful example in the consumer product segment which uses this business model such as water filter system and coffee maker (machine and pellets)

This business model operate on selling a one time cost hardware at a low cost, and capture a repetitive revenue from product consumption.

For Biocair, it will be selling air purifying machine for 1 time, and it will lock the customer into purchasing refillable disinfectant liquid for a period of time until the customer changes their brand preferances.

Mclean diversification into this industry will present the listed company with a better growth prospect, which will be good for investor in the long term.

After all, at a price below 20 cents, it represents an attractive prospect for investor on the future growth of Mclean.

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