-->

Type something and hit enter

On

 


Dear Friends,

I have bought this A to Z Ringgit Bhd Stock for several rounds through the decade

See https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2019-02-15-story-h1457041189-AZRB_A_to_Z_RINGGIT_BERHAD_Reposting_from_May_2018_Article_Calvin_Tan_R.jsp

As the name implies A to Z Ringgit Bhd - Ahmad Zaki has all encompassing businesses of

Oil & Gas through its Marine Oil supply in Tok Bali (Kelantan) & Kemaman in Pahang

Palm Oil Plantations in Indonesia

Engineering & Construction Works

Rm600 Millions Teaching Hospital Concessions

Toll Road

Property Development along ECRL route

And many more. You name it. A to Z Bhd got it

Above all AZRB is Bumi Class A Contractor

So all parties be they PN, BN, PKR, BERSATU, AMANAH, PAS or Others should be very ok

Although AZRB won projects during BN Reign It was also the 1St Bumi Contractor to be awarded Job by PKR Govt

See

1) AZRB is one of those Rare CLASS 1 BUMI CONRACTORS.

So it will get projects based on its own merit in the new PH Government. And it should do well.

 

2) AZRB IS THE FIRST CONTRACTOR TO SECURE FRESH PROJECT IN THE NEW PH GOVERNMENT

See

 

OTHERS CONSTRUCTION OF JALAN HANG JEBAT, JALAN STADIUM (VICTORIA INSTITUTIONS) AND CHINWOO TUNNELS, ELEVATED U-TURN AND FLYOVER, GALLOWAY PEDESTRIAN BRIDGE, RELOCATION OF EXISTING UTILITIES, UPGRADING AND IMPROVEMENT OF SURFACE ROAD AND ASSOCIATED WORKS, MUKIM BANDAR KUALA LUMPUR, DAERAH KUALA LUMPUR, WILAYAH PERSEKUTUAN FOR PNB MERDEKA VENTURES SDN BHD - LETTER OF ACCEPTANCE

AHMAD ZAKI RESOURCES BERHAD

The Board of Directors of Ahmad Zaki Resources Berhad (“AZRB” or “the Company”) is pleased to announce that its wholly-owned subsidiary, Ahmad Zaki Sdn Bhd had on 16 May 2018,(NOTE DATE OF JOB AWARD IS 16TH MAY 2018 AFTER THE MAY 9TH ELECTION; SO THIS AWARD IS IN PH BRAND NEW ERA)  received and accepted a Letter of Acceptance from PNB Merdeka Ventures Sdn Bhd (“the Award”) for a project known as “Construction of Jalan Hang Jebat, Jalan Stadium (Victoria Institutions) and Chinwoo Tunnels, Elevated U-Turn and Flyover, Galloway Pedestrian Bridge, Relocation of Existing Utilities, Upgrading and Improvement of Surface Road and Associated Works, Mukim Bandar Kuala Lumpur, Daerah Kuala Lumpur, Wilayah Persekutuan” (“the Contract Works”).

The Award for the Contract Works amounted to a total value of RM197,961,918.51 excluding GST.  The Contract Works shall commence on 21 May 2018 and is to be completed within 883 calendar days from commencement date.

The Contract Works is expected to contribute positively to the Group’s future earnings.

Politics aside let us look at AZRB Fundamental Strength on Its Own Merit

That is FA ( AZRB qualifies as an FA Stock)

At 32 sen with NTA of 57 sen AZRB is selling at 44% discount to Net Asset Value (meeting Benjamin Graham's 30% margin of safety)

What about TA? Yes! An FA stock will remain value trap unless there are CATALYSTS to Unlock Its Deep Value

And AZRB whose time has come got Many Catalysts as we shall see

First look at its latest quarter result

SUMMARY OF KEY FINANCIAL INFORMATION
31 Dec 2020

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Dec 2020
31 Dec 2019
31 Dec 2020
31 Dec 2019
$$'000
$$'000
$$'000
$$'000
1 Revenue
240,568
283,054
421,356
543,664
2 Profit/(loss) before tax
26,191
-39,721
-18,356
-37,393
3 Profit/(loss) for the period
23,520
-39,992
-24,061
-38,709
4 Profit/(loss) attributable to ordinary equity holders of the parent
23,441
-42,112
-21,422
-39,052
5 Basic earnings/(loss) per share (Subunit)
3.92
-7.04
-3.58
-6.53
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
0.5700
0.5900
 

From a loss of -7.04 sen AZRB has turned around with a very positive 3.92 sen profit

Forward 4 qtrs will be

3.92 x 4 = 15.68 sen 

If we give it a P/E 10 it will be Rm1.56

What about P/E 5?

78.4 sen 

What is the current P/E at 32 sen (today closing price 16 March 2021)

Divides 32 sen by 15.68 = 2.04 P?E

AZRB selling for slightly more than 2 Times Earnings?

That is Value!

What else? Are these earnings sustainable?

For that we go into the Qtr reports of AZRB (please read up yourselves)

REVIEW OF PERFORMANCE
For the quarter ended 31 December 2020, AZRB and its subsidiary companies (“the Group”)
registered a revenue of RM240.6 million, representing a 15% decrease from the revenue
reported in the corresponding quarter of last year. However, the Group managed to post
quarterly profit before tax (“PBT”) of RM26.2 million, improving from a loss before tax
(“LBT”) of RM39.7 million recorded in the corresponding quarter of last year.
Overall, the Engineering & Construction, Oil & Gas and Property Divisions were affected by
the COVID-19 pandemic, resulting in a slow-down of activities and business.
Despite the lower revenues, the Group was able to return to profitability once again this
quarter on the back of the improved profitability of the Engineering & Construction,
Concession and Plantation Divisions. The one-off provisional charges and contract costs
rationalisation exercise in the Engineering & Construction Division performed in the
corresponding quarter of 2019, provided a stable base for the Division to improve its
profitability going forward. The Division’s bottom-line is also further boosted by prudent
financial and operational management exercised during this challenging period.
The Concession Division registered a PBT of RM17.3 million, an 18% increase from the
previous corresponding quarter. The improved profitability for the quarter stems from the
finalisation of costs related to a maintenance contract which was awarded to the Division
recently. The finalisation of these costs resulted in a positive adjustment to the result of the
Division, the cumulative effects of which was reflected in the current quarter.
Furthermore, higher palm product prices and volumes have significantly improved the
revenue during the quarter which in turn reduced the operational losses at the Plantation
Division.
 
Improvements in 4 divisions
 
Read again
 
 the Group was able to return to profitability once again this
quarter on the back of the improved profitability of the 1) Engineering & 2) Construction,
3) Concession and 4) Plantation Divisions.
 
 
And read further
 
The Group’s revenue for the current quarter of RM240.6 million was 33% higher against the
preceding quarter mainly contributed by the Engineering & Construction and Plantation
Divisions, as the lifting of the CMCO and provincial restrictions both in Malaysia and abroad
resulted in increased construction activities and sales growth in the two Divisions.
The Group’s result improved to a PBT of RM26.2 million, from an LBT of RM44.5 million
previously, where both quarters’ results were highly influenced by unrealised forex
movements, substantially originating from the Plantation Division.
Excluding the impact of forex differences, the Group registered a PBT of RM2.5 million,
mainly driven by the higher revenues of the Engineering & Construction and Plantation
Divisions, as well as the improved profitability of the Concession Division.

Read again

 both quarters’ results were highly influenced by unrealised forex
movements, substantially originating from the Plantation Division.
 
Substantial profit frm Plantation Division
 
Where?
 
Answer
 
From its 18,500 acres of palm oil in Kalimantan Indonesia. While Malaysia implemented MCO many Indonesia workers are available for work in AZRB's plantations. Hooray!
 
See my previous writeup
 
 OIL PALM CULTIVATION/ 


AZRB has 18,500 acres of Oil Palm lands in Indonesia. Bought in year 2005 for only RM449 an acre The losses from Oil Palm cultivation is bearing fruit now as trees are fruiting. Ha! AZRB's Oil Palm fruit can easily make RM449 an acre per month. THE PROFIT POTENTIAL IS IMMENSE HERE! 

THIS IS THE ANSWER!

AND CPO NOW OVER RM4,000 PER ACRE ! 

 

Some more

as well as the improved profitability of the Concession Division.

 

YES! Rm600 MILLIONS CONCESSION FROM TEACHING SCHOOL IS LONG TERM CASH COW

 

BRIGHT FUTURE PROSPECTS

SEE

PROSPECTS
Currently in the Engineering & Construction Division, the Group has RM1.2 billion of
outstanding order-book as at 31 December 2020. The Group intends to continue
replenishing its order-book, whilst the current outstanding balance will be able to sustain
AZRB for the next two years.
 
In addition to projects rolled-out by the Government, the Group continues to tender for
projects in the private sector which in turn, keeps its clientele base sufficiently diversified.
Moving forward, the Group intends to leverage on its position as a reputable builder of
distinction to tap into any suitable opportunities on offer in the sector.
 
In the Oil & Gas Division, results going forward are expected to improve with the entry of a
new Production Sharing Contract (“PSC”) operator in January 2021. In addition, the Division
continues to engage with existing customers to secure additional volume of business, as well
as potential customers to set up their base of operations in the Division’s base, especially in
anticipation of the new drilling season expected in year 2021 onwards.
In relation to the Plantation Division, rising CPO prices in the recent months bode well for
the Division, despite the heavy rains in Kalimantan Barat arising from the La Nina
phenomenon, which has continued into early 2021. The Division is hopeful that with the
better weather expected from February 2021 onwards, production and sale of palm
products can be maximised to capitalise on the higher selling prices.
The Group is also encouraged by the contribution from the Concession Division, which
steadily continues to provide positively to the Group, arising from its long-term concession
which will last up to year 2038.

 

VERY GOOD RESULTS AND REPORT
 
AZRB PASSED WITH FLYING COLOURS
 
Only thing now remain is its Neglected Undervalue Pricing
 
Then who are buying
 
See
 
 

So here we know all through the months INSIDERS HAVE BEEN BUYING AND BUYING THIS MOST UNDERVALUE SHARE

 

Calvin also noticed Insider buying Scomi before price exploded up today

See  from Scomi forum site in i3

Now why today Scomi in Top Volume & up 285%?

I really don't know

Scomi still owe Scomi Energy monies.

Since I not sure about Scomi. No comments

BUT THE BUYING OF AZRB BY INSIDERS SHOW VERY DEEP LONG LASTING VALUE OF AZRB

 

AZRB WILL HAVE A VERY LONG BRIGHT FUTURE WHEN EAST COAST RAIL (ECRL ) IS IN PROGRESS AND TO ITS COMPLETION

 

AZRB HAS ASSETS ALL ALONG ECRL ROUTE, QUARRY IN TRENGGANU AND ABOVE ALL ITS TWO PORTS IN TOK BALI KEMAMAN

RIGHT NOW AZRB IS SELLING MARINE FUEL TO OIL AND GAS VESSELS OF BOTH TOK BALI & KEMAMAN PORTS

AND WHEN ECRL IS READY MANY SHIPS WILL UNLOAD GOODS FROM CHINA, JAPAN, KOREA & OTHERS ON ITS TOK BALI & KEMAMAN PORTS BEFORE TRANSPORTING THEM BY THE TRANS KELANTAN - PORT KLANG TRAN ROUTE

SO AZRB HAS CREATED SYSTEMS TO COLLECT WEALTH

TEACHING HOSPITAL CONCESSION

See

The Group is also encouraged by the contribution from the Concession Division, which
steadily continues to provide positively to the Group, arising from its long-term concession
which will last up to year 2038.

TOLL ROAD

PLANTATION NOW FRUITING IN KALIMANTAN

AND MANY OTHER WORKS OF DISTINCTION

AZRB NOW 32 SEN

SHORT TERM TARGET PRICE IS 75 SEN (P/E 5)

SEE WHEN AZRB WILL ARRIVE THERE

(A WORD OF CAUTION: CALVIN HATES PUMP AND DUMP SYNDICATES. SO PLEASE KINDLY STAY AWAY. LET TRUE INVESTOR BUY QUIETLY. THANK YOU VERY MUCH)

 

WARM REGARDS

 

Calvin Tan Research

Jurong West , Singapore

 

Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-03-16-story-h1542839021-AZRB_7078_AHMAD_ZAKI_RESOURCES_BHD_Why_this_is_a_very_undervalue_Stock_.jsp

Back to Top
Back to Top