PMB Technology

[winston]

not vested

Low Risk High Return (10) – PMB Technology (PMBT)

Summary

PMBT is banking on Silicon as an essential material for our future economy.

Silicon is the basic material for solar industry.
Tesla intends to replace cobalt with silicon for its batteries.
China alters global silicon supply demand balance as it pivots on environmental friendly policies.
These factors drove silicon price to a fresh 3-year high.

Majority own and manage by the Koon family, PMBT and PM are of the same playbook. More importantly when PM started off with less resources and market recognition in the past, today’s PMBT – leverage on experience acquired and the market respect from PM – earning will ramp up swifter.

Eventually share price trajectory will follow suit.

Description

Press Metal (PM) – one of the most efficient and lowest cost aluminium producer globally is a majority shareholder of PMB Technology (PMBT). Both companies are mange by the Koon brothers. In late 2019, PMBT disposed its aluminium business (to PM) to stay focus as a silicon provider.

Silicon metal is an important element added to various grades of aluminum alloys used in performance applications such as automotive components and aerospace products.

Silicon metal also is a critical raw material in the production of silicone compounds used in numerous products including sealants, adhesives, rubber gaskets, caulking compounds, lubricants, food additives, coatings, polishes, and cosmetics, among others.

In addition, silicon metal is the base material in the production of polysilicon, a purified form of silicon used in solar cells and semi-conductors.

In summary, Silicon demand will be driven by solar and electronics in many years to come, whilst supported by its widely adopted application in various industries currently.

Growth factors

Management and efficient Hydro power supply
The competitive advantage of the PM series of companies lies in its lean production cost. On top of the very capable management strength, the ultra-competitive position is because of its power procurement contract with Sarawak Energy i.e. Bakun Hydropower.

Aluminium and Silicon production requires substantial amount of power. Energy cost as a single cost component weights more than 40% of the total production cost. The availability of an efficient energy sources alone determines the survival rate of the business.

By securing the ultra-competitive Bakun hydropower supply contract – which is one of the lowest in the world, PM has and PMBT will emerge as one of the lowest cost producer in the world.

Meanwhile PMBT is already position at the middle to lower quartile of the global cost curve despite starting out as a green field player only in 2019. Further improvement is on sight.

https://klse.i3investor.com/blogs/tapda ... y_PMBT.jsp

[winston]

PMB Technology 2Q net profit soars more than eight-fold y-o-y, lifted by better contributions across business segments

by Justin Lim

PMB Technology Bhd saw its net profit soar more than eight times to RM11.58 million in the second quarter ended June 30, 2021 (2QFY21) from RM1.37 million a year ago.

Earnings per share ballooned to 5.62 sen in 2QFY21, compared with 0.67 sen in 2QFY20, said the aluminium manufacturer and distributor.

Revenue for the quarter also swelled more than two times to RM178.25 million year-on-year (y-o-y) from RM84.87 million.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... ons-across

[winston]

not vested

3Q Results

Revenue: +36%
EPS: +233%
NAV: 2.94

https://www.bursamalaysia.com/market_in ... id=3212363

[winston]

not vested

PMB Technology share price rises to record high on dividend, profit spike; four-for-one bonus issue planned

by Izzul Ikram

Full-year net profit soared almost seven-fold to RM152.78 million while dividend quintupled to five sen a share from a year earlier.

Specialises in the design, fabrication and installation of aluminium facade systems for buildings.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... onus-issue

[winston]

not vested

PMB Technology Bhd secured a solid start to the financial year ending Dec 31, 2022 (FY22) as its net profit surged more than eight-fold to RM54.87 million for 1QFY22, from RM6.63 million a year ago, boosted by 86.6% higher revenue of RM301.97 million from RM161.83 million a year earlier, due to improved contribution from its metallic silicon plant.

Source: The Edge

[winston]

not vested

PMB Technology to increase production

By JACK WONG

PMB Technology Bhd, which will raise the annual installed capacity of its metallic silicon output by 50% when its new Phase 3 plant in Samalaju Industrial Park in Bintulu starts commercial production soon, is poised to boost the supply of the strategic raw material to the expanding global solar industry.

The circular is in relation to the company’s proposed rights issue on a full subscription basis to raise an estimated RM300mil.

PMB Technology has announced a second fund-raising exercise – via a proposed private placement – of up to 2% of the company’s total number of issued shares or up to about 32 million new shares. At an indicative issue price of RM2.02 each, the company targets to raise an additional RM64.6mil.

The group had total borrowings of RM949.4mil, of which RM210mil was used to finance the Phase 3 metallic silicon plant project. The proceeds from the proposed rights issue will be utilised entirely to repay bank borrowings after deducting RM1.2mil for the estimated expenses for the rights issue exercise.

Source: the Star

https://www.thestar.com.my/business/bus ... production