PEB (5622) - is the solar game a hoax or real deal?
Interestingly, I tumbled upon this stock after reading an extensive analysis did by mr. Rondy from stockbit. And I find it interesting that people are debating whether this stock is a scam or real deal. But nevertheless, I will share a piece of opinion and include the said article.
1st question: is the peb reverse takeover a real deal?
My opinion: ciruela sdn bhd or its ultimate shareholder, lim beng guan and pac had acquired 65.5% of the company’s share for a price of rm 1.07 each, which of course triggered the mgo to takeover the remaining for the price of rm 1.07.
They also paid approximately rm 48.5 million in cash for the shares. So would they consider toy around rm 50 million for the sake of “goreng”? For me, nothing is impossible. But how are they going to sell the shares on inflated share price, or so claimed by some comments in the forum?
Hence, it is very likely that the rto is a real deal.
2nd question: no true valuation on peb, is it overvalued now?
My opinion: this is indeed an open-ended question. However, we had noticed several successful rto cases in 2020 – 2021. Amongst them are the recent “hot” stock of lagenda properties, kerjaya prospek, and the upcoming gran-flo rto. If we were to study their share prices movement, yes, the stock is flat at the very beginning of the rto. However, it returned an average of 100% within a short period of 1 – 2 year, which effectively gives you a cagr of 41.42%.
Could you find other deals as such? Of course. But again, your risks are limited as the current peb shareholders are more concerned about the share price than you, since the owner and pac holds 65.5% of the company.
So, is peb undervalued or overvalued now? I have no answer for this. We have to wait for ta securities to give us a final valuation.
3rd question: is this solar company really worth its salt?
My opinion: in mr. Rondy’s article, it was noted that renikola – the company that is going to be injected into peb has 3 operational solar assets, which gives up to a total capacity of 88 mwp. I had also accessed the ram report provided in renikola’s official website and found out that they had a power purchase agreement with tnb, which is common in the industry.
But doesn’t that proves renikola is an actual operating company?
Of course, some might have some questions on the 330 mwp “upcoming power plant” by the company. Can the market digest so much green energy? Appearently, the management for renikola had prepared for this. The bukit kayu hitam is prepared to supply energy to large corporates. Had you guys noticed more and more company are looking at esg? Yea, that’s the future trend of fund management – if you want fund managers to buy your company, you better have esg ready. And consuming green energy, is indeed one of them, especially if you are a net carbon emmitter.
4th question: if peb is so good, is it a risk-free investment?
My opinion: there is no such thing so called risk-free investment. If you see any, it is either a scam, or a scam. Investing in peb now will expose you to several risks, including a possible failure of rto, fluctuation in share price as well as low trading liquidity. But of course, the biggest risk remains as whether the rto could go through.
There had been some misleading information on the forum where they mentioned in june 2021, should the rto was not approved, peb will be delisted. I would like to point out that listed companies could extend the timeline of the rto. Moreover, peb itself is a pn 16 company, not a pn 17 company. Pn 16 company being a net cash company could not be delisted because of a delay in rto.
However, I think once the rto was confirmed, the volatality in share price as well as low liquidity problem will go away. We shall see how it turns out.
It is certainly no sure-fire way to confirm if peb is a hoax or real deal. However, judging by the public information given by the company and some common sense on shareholding, the chances of peb‘s rto turn sour are low. And based on personal experience by studying recent rto cases, we have no chance to buy at a cheaper price later on, once its gone, its gone.
That being said, there were no controls on when would peb complete the deal as well as the movement of share price. Do your own analysis and make wise investment decision.
Article by mr. Rondy: https://my.Stockbit.Com/post/5904236