After MQTech, SMTrack & Advance Synergy, it's time for Jiankun, Petra Energy & Reservoir Link to shine?

After MQTech, SMTrack & Advance Synergy, it's time for Jiankun, Petra Energy & Reservoir Link to shine?

KUALA LUMPUR: More politically-linked stocks to the two newly-appointed deputy prime ministers (DPMs) are expected to be in demand this week.

After market closed last Friday, newly-minted 10th Prime Minister Datuk Seri Anwar Ibrahim unveiled Datuk Seri Dr. Ahmad Zahid Hamidi and Datuk Seri Fadillah Yusof as his DPMs.

As expected at the close, "Anwar-related" Advance Synergy Bhd closed at RM0.19, up RM0.015, with 227.1 million shares traded.

Stocks related to Zahid namely MQ Technology Bhd (MQTech) closed at RM0.055, up RM0.005 with a total of 119.5 million shares traded, while SM Technology Bhd (SMTrack) ended at RM0.065, up RM0.005 with a total of 56.5 million shares chaning hands.

Ironically, Jiankun International Bhd, which is also linked to Zahid, was a laggard in terms of traded volume.

Jiankun closed at RM0.260, up RM0.020 with only 11.9 million shares traded.

Zahid's daughter Datuk Nurulhidayah Ahmad Zahid is the director and vice chairman of MQTech, while his son-in-law Datuk Saiful Nizam Mohd Yusoff is on the board of Jiankun and SMTrack.

An analyst said Saiful was the key person who enabled Jiankun to secure a RM1.2 billion development project at Kampung Baru along Jalan Tun Razak, which was announced earlier on Bursa Malaysia website.

According to a market observer, such premium project in the central business district of KL should provide a return of at least RM400 million to Jiankun.

Since the dissolution of Parliament, Advance Synergy shares have been rising from a low of RM0.065 on Nov 4 to a high of RM0.32 on Nov 24, a surge of 400 per cent.

The observer said Jiankun was missed out by the market last week and this week it had a lot of catching up to do.

He expects Jiankun, MQTech and SMTrack to repeat the performance of Advance Synergy.

Jiankun was expected to be chased to a target price of RM1.00, while both MQTech and SMTrack were expected to hit RM0.210, he said.

The surprise appointment of Fadillah, a Sarawakian, as DPM would translate into rising interest in Sarawak-based companies.

"Many investors are shocked with a sizeable increase in the Sarawak presence in the new unity Cabinet and the appointment of Fadillah as DPM," the observer said.

This is the first-ever appointment of East Malaysian as DPM since the independence of Malaysia. Hence, investors will be expected to react positively to some Sarawak-based companies linked to Fadillah.

They will include Petra Energy Bhd and Reservoir Link Energy Bhd.

Petra Energy, an oil and gas company involved in providing a range of integrated brownfield services for upstream oil and gas industry in Malaysia, is 29.04 per cent-owned by Shorefield Resources Sdn Bhd, a private investment vehicle of Tan Sri Bustari Yusof.

Bustari is the brother of Fadillah.

Reservoir Link is another Sarawak-based company that provides oil and gas services as well as services that support operators in the upstream sector of the oil and gas industry.

A little-known fact is that Bustari, via Shorefield Offshore, owned 60 per cent of Reservoir Link Sdn Bhd in 2010.

Apart from that, the company's shareholders also consist of Datuk Eddie Ong Choo Meng as its third largest shareholder with a 4.13 per cent stake, behind Pansar Bhd and Thien Chiet Chai, the founder of Reservoir Link.

Ong is most well-known for his expanding Hextar Group empire.

Other shareholders include Affin Hwang Asset Management via two of its sub-funds and Datuk Au Yee Boon of YB Ventures Bhd, who is also holding a 2.295 per cent stake via Yi-Lai Marketing Sdn Bhd.

Recently, Reservoir Link diversified into renewable energy segment via acquisition of a 51 per cent stake in Founder Energy Sdn Bhd from Solar Bina Engineering Sdn Bhd, one of the largest solar EPCC contractors in Malaysia.

https://www.nst.com.my/business/2022/12/857573/after-mqtech-smtrack-advance-synergy-its-time-jiankun-petra-energy-reservoir