BARAKAH (7251) - A Good Potential Stock - BARAKAH (7251)

I think now is good time to accumulate BARAKAH share at current level. That reasons is below :-

1. Felda Investment Corp (FIC) ceased to be a substantial shareholder in BARAKAH.

FIC dispose the share in open market cause the BARAKAH share price drop to historical low 8.5sen. Since FIC almost finish selling its stakes in open market, BARAKAH selling pressure disappeared. Now BARAKAH share price tend to moving upward.

2. At least 3 companies showing interest in BARAKAH stake.

Nik Hamdan Daud, the controlling shareholder of BARAKAH, is looking to sell a substantial portion of his stake. Nik Hamdan currently has a 40.1% stake in BARAKAH and is the single largest shareholder. It is understood that at least 3 companies have expressed interest. 2 Of the companies that have expressed interest are said to be Serba Dinamik Holdings Bhd and Samling Group.

3. Strong backup - Samling Group.

Samling Group is 2nd largest shareholder in BARAKAH with 14%. The cost Samling Group bought into BARAKAH stake is around 60sen per share 10 July 2017. Yaw’s Samling group is one of the largest conglomerates in Sarawak with a presence ranging from Asia to Australia and North America.

Its main business is in the plantation, forestry and property development sectors, and via Samling Energy, it has a presence in the O&G sector.

The group also has a quarrying business and distributes Bentley cars in Malaysia.

Early this year, Forbes in its ranking of Malaysia’s 50 Richest estimated that the 79-year-old patriarch and his family have a net worth of US$815mil or RM3.5bil. Through a Sarawak connection, Barakah can leverage on a partner with strong financials and business network to expand into the state, where most of the O&G jobs are.

4. BARAKAH forming consortium with Samling Energy and Brooke Dockyard.

BARAKAH is forming consortium with Samling Energy and Brooke Dockyard to jointly bid for O&G related projects in Sawarak. “The consortium agreement is expected to enable the parties to put together competitive integrated service offerings by combining each party’s capability and resources,” it said.

Brooke Dockyard is a leading marine engineering and fabrication company involved in the engineering, procurement, construction and commissioning (EPCC) of offshore oil and gas platforms, shipbuilding and ship repair, bridges, infrastructure, and onshore manufacturing.

The yard recently tripled its capacity with the commissioning of a second yard, and has been steadily winning Sarawak-based EPCC contracts. Brooke Dockyard is own by Sawarak state government.

5. Sarawak setting up its own oil and gas company - PETROS

Sarawak setting up its own oil and gas company, Petros, as the regulator of oil and gas activities in the state based on Sarawak Oil Mining Ordinance. In this sense, all companies including their contractors, sub-contractors and vendors associated with the industry have to apply for licences from Sarawak government in order to operate in Sarawak – in accordance with the Sarawak Oil Mining Ordinance (OMO) 1958 and other relevant regulations.

The OMO stipulates that all O&G industry players in Sarawak, including Petroliam Nasional Bhd (Petronas) should comply with it – this should include the upstream activities carried out by Petronas.

With strong connection in Sawarak ( Samling Group & Sarawak state government ), BARAKAH expect will win contract from PETROS.


With the reasons above, BARAKAH currently is a good potential stock to buy.