Pm Najib has just returned from a 5 day trip to Saudi Arabia. USD7 Billions or Rm28 Billions will flow into Malaysia and Petronas RAPID in particular!
With fresh injection of Capital I think these 3 Stocks will be in focus next week. Next week will also be the Spore – Malaysian Leaders’ Retreat to Discuss the RTS from Wood Lands to Bkt Chagar in JB CBD & the High Speed Rail from KL to Jurong east Singapore.
And on 1st February 2018 Spore will also follow Malaysia in reducing Toll Rates for cars from S$6.50 to only S$1.00 round trip. on the Johore Causeway.
These Are The Reasons for being bullish on MRCB, MPHBCAPITAL & UEMS
1) MRCB – EDL Toll Compensation to be out soon. The Scrapping of EDL Toll might bring a windfall of Rm2.75 Billions for UEMS (cancellation of sukuk debt & Cash compensation for years of loss revenue for EDL Toll)
This will pare down MRCB’s borrowings & reduce gearing. And with sale of Bkt Jalil lands to EPF for Rm1.14 Billions, Cash from R! Rm2.9 Billions, Rm165 millions for PDP of Kwasa Damansara, Rm100 millions from Setapak land sales to THB plus upcoming sale of Menara Celcom (RM640 millions), sale of Ascott Hotel (Rm180 millions)
MRCB will turn into a NET CASH COMPANY
MRCB has also teamed up with Gamuda to bid for the PDP Job of High Speed Rail
Then the Mother of All Job Awards will come – “BANDAR MALAYSIA’s Rm160 Billions’ PDP Job Award!! In natural progress All the mapping groundworks for HSR are up. Then PDP for HSR. After that PDP for “BANDAR MALAYSIA!”
All these are powerful boosters for MRCB in coming days, weeks & months until Election GE14 Polling Day. Expected to be at less 4 or 5 months away by late May or June 2018. SO 5 MORE MONTHS OF POWERFUL UPSIDE FOR MRCB!!!
(pls don’t ask Calvin why Polling Day should delay until June 2018, ok?)
2) MPHBCAPITAL (Proxy to Rm170 BILLIONS PENGERANG RAPID. Champion of O&G!!)
With Extra CASH INFUSION OF RM28 BILLIONS INTO PENGERANG’S RAPID. AND PETRONAS’ NEW EMPHASIS INTO DOWNSTREAM NON OIL (Plastic resin , Industrial chemicals, Pharmaseutical, Fertilizers and a million types of end products) the prime lands (grossly undervalue: 82 Sen Psf) of MPHBCAP will be hot assets. And the focus will turn Mphbcap into a hot stock!
So MPHBCAP is really THE BEST KEPT SECRET OF THE O&G Bull Run Stocks yet under researched & undiscovered by Analysts. So very safe to buy while Mr Market still unaware.
Another booster is the scrapping of EDL Toll & Spore Toll Reduction. This will boost Land Value in Johor & Booming Iskandar.
Savings of Rm600 to Rm900 means more purchasing power for the happy people of Johor – commuting to work in Singapore and back daily.
3) UEMS (Signing of HSR & others)
3 Boosters for UEMS
i) High Speed Rail Stops in its very Heart of Gerbang Nusajaya before proceeding to Jurong East, Singapore. In Japan – lands near Shinkasen Railway Station automatically go up 46% when HSR Train Station is up in Japan.
ii) RTS – MRT from Woodlands to Bkt Chagar to be signed soon.
iii) Scrapping of EDL Toll. This will immediately save Rm600 to Rm900 for Johoreans commuting to Singapore for work and back daily. This Huge Saving will add to the purchasing power of happy Johoreans. Thus boosting both sale & rental prices of Johor Real Estates like UEMS.
Pm Najib is visiting Saudi Arabia for a 5 Day Official Visit
Najib on five-day working visit to Saudi Arabia
KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak will make a working visit to Saudi Arabia from tomorrow until Jan 12, at the invitation of the Custodian of the Two Holy Mosques, King Salman Abdulaziz Al Saud.
The prime minister will be accompanied by his wife Datin Seri Rosmah Mansor and senior government officials from the Prime Minister’s Office, according to a statement from the Foreign Ministry.
Najib is scheduled to have an audience with His Majesty King Salman and His Royal Highness Crown Prince Mohammed bin Salman Abdulaziz Al Saud in Riyadh.
“The meetings…will provide them with the opportunity to discuss and exchange views on bilateral, multilateral, regional and international issues, particularly the follow-up actions on issues discussed and agreed upon during the historic state visit by King Salman to Malaysia in March last year,” the statement said.
They include issues related to economic cooperation, investment, haj matters and the establishment of the King Salman Centre for International Peace (KSCIP) in Putrajaya.
“These meetings are very timely as the special relationship between Malaysia and Saudi Arabia is at an all-time high. Certainly, the prime minister’s visit to Saudi Arabia will strengthen the bond of friendship between the two countries,” the Foreign Ministry said. –Bernama
Ha! Did you notice the phrase
“They include issues related to economic cooperation, investment”
What kinds of ECONOMIC COOPERATION & INVESTMENT?
Like Malaysia Saudi Arabia was hit by falling Oil Revenues & huge deficits
And did Saudi learnt from Malaysia in implementing GST?
And raised petrol prices.
Then like Malaysia’s BRIM Saudi also gave out 1,000 Riyals to civil servants.
Very interesting moves by Saudi. A mirror of what Malaysia is doing. And Saudi also followed Malaysia in cracking down corruption. Even Saudi princes were arrested.
So what’s next?
These could be on the agenda
SAUDI HAS PROMISED TO INVEST USD7 BILLIONS INTO PETRONAS’ RAPID.
And since Malaysia is now moving into downstream non oil investments will Saudi pump in more monies into Pengerang’s RAPID?
Petronas to grow non-fuel contribution to downstream business
KUALA LUMPUR: Petronas is looking to increase the non-fuel segment contribution to its downstream business this year, in line with most oil and gas companies worldwide, said its Vice President of Marketing Downstream, Datuk Seri Syed Zainal Abidin Syed Mohd Tahir.
The non-fuel segment’s contribution to the downstream business currently stands at 10 per cent.
“Everywhere in the world, in downstream retailing, people are already doing that (increasing non-fuel contribution) such as Shell, Esso and BP. We are trying to learn and we have done some (of that) here in Malaysia and it’s showing good success.
“Based on that lesson learned and experience, we want to expand that (non-fuel contribution) and we are going to do it smartly. It will require some time but we do have plans,” he told reporters after Petronas Dagangan Bhd’s prize presentation for its latest promotion campaign.
On the outlook for the downstream market this year, Syed Zainal Abidin said the market was projected to remain competitive as demand was expected to be subdued as more people had shifted towards public transportation such as the Mass Rapid Transit (MRT) and Light Rail Transit.
“Last year, the MRT came into play, so generally people tend to leave their cars in the suburbs and take the train to the city, thus cutting back on their overall long-distance travelling. This has impacted the oil and gas industry particularly the retail sector, and we believe this trend will continue this year.
“Cars nowadays (also) become more efficient such electric vehicles and energy-efficient vehicles, which means that fuel consumption will be lower for the same travel distance,” he said.
As a company, Syed Zainal Abidin said Petronas is now looking at different marketing and advertising programmes to ensure that demand can be sustained.
Meanwhile, on the campaign, Nur Firdaus Seet Abdullah and Muhammad Fauzan Mohamad Sallehhan bagged the grand prize of RM5,000 cash each while Aneei Jumarry Mohd Yusof was lucky to win a one-year supply of shoes from Zalora.
They were among eight winners who were celebrated at the prize giving ceremony for “The Only Game Where Everybody Wins” promotion campaign.
Again, what are down stream non – fuel products?
There are millions and millions of products made from oil like all the plastic toys in the world; all the clothes made from polymer; all the shoes, car dashboards, tooth past, plastic bags and what not.
All the plastic pet bottles! Billions of them all over the world.
All the Chemicals like ink and others
See how expensive lands were tenanted out in Jurong Island in Singapore Oil Refinery Clusters
MPHBCAP lands are perfect for Downstream O&G industries like storage for Chemicals made from Oil.
In Jurong Island, Singapore
They rent out industrial warehouses for 90 sen psf
Not sell but rent for 90 sen (Spore sen) or Rm2.70 per month!!!
HOW COULD MPHBCAP LANDS BE WORTH ONLY 82 PSF?
WHY RENT RM2.70 PSF FOR ONLY ONE MONTH?
WHEN WE BUY MPHBCAP’S LANDS FOR ONLY 90 SEN (Malaysia) or only 27 SEN (Spore)
So MPHBCAPITAL’s 1,800 Acres Prime Lands will see very good days ahead. The Land holding cost of Mphbcap’s 1,800 Acres Book Value are only a mere 82 sen psf.
SO MPHBCAPITAL WILL REAP A GOLDEN WINDFALL IN ANY ASSETS DISPOSAL.
Another possibility is the Listing of Saudi Aramco’s IPO – projected to be a whopping USD2 Trillions (About Rm8 Trillions).
Since Malaysia is launching TRX as a Financial Center will there be a Dual Listing in Malaysia for Saudi Aramco.
The Vast movements of Capital will increase income for Malaysia significantly. Just like London, New York, Shanghai, Hong Kong & Singapore are highly profitable Centers of Finance…. so will Malaysia turns into an Islamic Financial Center?
All these will also boost the Immense Asset Values of MphbCapital.