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买复原能力强的股票/冷眼

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Investor’s #1 Concern on Solar Companies Are Wrong
faizalraiz
4-5 minutes

Investor’s #1 Concern on Solar Companies Are Wrong

Recently, there has been an article published by The Edge, Malaysia hammering down the solar companies, claiming that it was a euphoria and the main focus was on Pimpinan Ehsan Berhad (“PEB”).

If this is your first time coming across PEB, this company was classified under PN 16 previously, which means that this company had disposed their core business in the past and transformed into a cash company. The definition of a cash company is that the company do not have any major contributor to their top and bottom line but was cash rich pending for acquisition of any potential investments.

In short, this is somewhat like the SPAC in United State, but it was more prudent in Malaysia, as the market capitalization is much close to the cash war chest the company had.

PEB had in recent signed a Heads of Agreement (“HoA”) with reNIKOLA Sdn. Bhd., a pure play renewable energy company with total 418 MWp assets in line. However, to further clarify the 418 MWp, their solar power plant located in Arau, Perlis, Gebeng, Pahang and Pekan, Pahang sums up to a total of 88 MWp. These solar PV plants had already signed Power Purchase Agreement (“PPA”) with TNB. The article popped up on The Edge weekly today did not mention any of the existing capacity of the operating solar PV plants that the company had, and just emphasised on of the largest was in construction. Which to me, this is extremely lazy and irresponsible and would to the extent I say, misleading.