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Part 2:

OCK (RM 0.495) (0172)

Overview :

OCK is one of the largest turnkey telecommunications providers,specializing in all things related to telecommunications towerco infrastructure and managed services for towers.

The Group has a telecommunications footprint in 7 Countries, with a workforce of 2600+ ,owns 4,300 Telco Towers and manages over 49,500 towers in the Asia.

The Group started from being a small subcontractor with zero knowledge, listed into ACE market and became MAIN market in merely 2 years.


The Group has bidding in the upcoming MCMC JENDELA Project and is confident to benefit from it, approval somewhere in Q3 August/September.The Group has also been receiving many orders for fiberization and expects many more projects to come, being one of the most experienced company available.


As for 5G , The government proposed "SPV" Rollout and will request telco companies such as OCK to deploy them with the first one expected to be in Klang Valley somewhere in December. Deployment speed will start to increase in FY2022, and expected enhance 5G coverage in FY2022 to arond 38% , and up to 90% within 8-10 years time.


The Group is also active in approaching states for collaboration to setup solar projects in cities and housing areas, and most of the projects are in preliminary stages. Important permits application and approval is required from local counciil. They also have active bidding for solar projects, such as LSS3 & LSS4.

Towerco Updates:

Myanmar, OCK owns more than 1,100 sites with tenancy ratio of 1.42x. OCK targets to have approximately 1,250 towers in Myanmar by 2021, primarily through new built to suit towers.

Vietnam, OCK owns more than 2,700 sites with tenancy ratio of 1.33x. OCK targets to have approximately 3,200 towers in Vietnam by 2021, primarily through acquisition of towers.

Malaysia, OCK owns 500 sites with tenancy ratio of 1.10x. OCK targets to have approximately 700 towers in Malaysia by 2021 through a combination of built to suit towers and acquiring towers.


OCK's foreign assets are all under its Singapore based company, which is a preliminary setup for future plans of listing under Singapore Stock Exchange. The Group mentions that it has to first expand and acquire more towers to become easily chosen to be an attractive company in foreign investors perspective.

Indonesia has recently opened up its restrictions, allowing foreign companies to own and purchase telecommunications assets , which OCK is near towards closing the deal and therefore having a large exposure towards Indonesia's business. Indonesia has 4G covering only 40% of the country and therefore having potential for a huge market.

In Vietnam, OCK has derived a new strategy, by only acquiring and purchasing towers & telecommunications assets from smaller companies Vietnam. This can speed up The Group's expansion in Vietnam significantly and have already acquired 170 New towers which are only 4 years old and has good potential.

Orderbook :

Myanmar - 200 Towers, increase delayed due to coup
Malaysia - 100 Towers and increasing
Vietnam - Plan to acquire up to 800-1200 towers , currently final stages of negotiating for 320 towers.


OCK's IRR is a whopping 10-12%, which is very high compared to rental of assets such as housing with expected IRR of 4%.
This is mainly due to its recurring income and business essentiality, providing it with a strong cashflow.

Tower services have Tenancy Ratio, which means that more than one operator can use the same tower, therefore if more providers are leased, the ratio increases and significantly boosts OCK's profitability.

Managed services over 49,000 towers, the profitability will only get better as expansion towards more operators will reduce operating expenses of the company and will continue consistently grow.

The Group also has very competitive pricing and cost effective methods, able to apply cost reduction methods, such as bulk order and strong negotiation skills.

With their Recent QR hitting all time high (ATH) Revenue, it shows that OCK can weather many hardships despite the challenges.

Myanmar coup :

Most importantly, There are no disturbances on and nearby the towers based in Myanmar. OCK is also able to collect full payments and thus having minimal to no impact on the company. OCK has only reduced their office hours mainly because of government movement restrictions.

The misunderstanding of Telenor having a write-off did not affect them much as well, based on CEO David Low's explanation that customer base has actually increased by 2 million in Q1 2021.

Telco services in Myanmar such as (MPT , Telenor, Mytel & Ooredoo) while their data services have only been disrupted occasionally but calling & SMS services remain operational.

Share Buyback Renewal: 

They have also proposed renewal of share buyback policy of 10%, which is coincidentally the same ratio as their recent Rights Issue.

Conclusion :

OCK is set to grow and expand exponentially in the next 2 years, with its solid fundamentals. This will also be boosted by the catalysts, mainly fast global expansion and upcoming JENDELA and 5G fiberization projects. 

Their recurring income core business will also be extremely sustainable and resilient, capable of unhindered growth even in weaker economical times, such as our current pandemic. 

OCK will be an exceptional choice for steady growth & solid foundation with its different and adaptive approaches towards telecommunications business.

Therefore, OCK is still truly undervalued and unnoticed.


DISCLAIMER : All investment strategies and investments involve risk of loss. Nothing contained in this article should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Not a buy/sell call, Invest at your own risk.

Part 1: https://klse.i3investor.com/blogs/ock_the_5G_battle/2021-02-22-story-h1541199613-OCK_Strategic_Positioning.jsp

There will be a technical, financial & projected growth analysis soon.
Stay tuned for Part 3.

Summary based on

  • All publicly available information
  • Rakuten Ideas Webinar with OCK Bhd Group CEO David Low on 10/5/2021
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