OCK Group

OCK Group

Postby winston » Sat Jan 10, 2015 10:18 am

By Phillip Capital Management Sdn Bhd

Stock pick: OCK Group Bhd

OCK is one of the gems in the mid-to-small-cap universe. Although small, OCK offers huge growth potential.

The main gist of it is its plan to develop a recurring income business model, riding on the shift in focus by telco operators from capital expenditure (capex) on non-core competencies such as network infrastructure to operating expenditure in order to streamline their cashflow.

At present, OCK owns and leases 240 transmission sites to U-Mobile, P1 and Celcom, and that will provide earnings visibility for at least the next 10 years.

Presently, there are about 23,000 telco sites nationwide; hence, there is latent potential for OCK to acquire and lease them back to telco operators. Recently, OCK also managed to grab a small pie of the T3 extension projects (30 out of 400 sites) for rural tower construction.

Although small, we see the win potentially opening up more doors for OCK to secure similar contracts, moving forward. It is also growing into tower managed services where it maintains 4,000 sites for Maxis, which would provide relatively regular income.

With telco operators having completed most of the 3G coverage, these players have since moved into the 4G long-term evolution or LTE space, where they plan to roll out more than 5,000 4G sites collectively. This definitely offers huge business opportunity for OCK.

We also like OCK for its stout growth regionally, namely in Cambodia (800km fibre optic cable-laying), Indonesia and recently, Myanmar. Its biggest move into regional territory was the acquisition of a 85% stake in PT Mulia, an Indonesian tower maintenance company which is currently maintaining about 7,500 sites and is targeting to increase this to 20,000 sites within the next three years. This alone will raise financial year 2015 (FY15) earnings by 15% on top of enjoying recurring cash flow.

Source: The Star
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winston
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Re: OCK Group

Postby winston » Mon Mar 11, 2019 9:48 am

not vested

Trading Buy: OCK-0172
(Last price: RM0.575, Potential upside +21.7%)


Company Profile

OCK has 4 major business divisions, namely Telecommunication Network Services (TNS), Trading of Telco and Network Products, Green Energy and Power Solutions, as well as M&E Engineering Services. Currently, it is the largest TNS provider in Malaysia.

Trading Catalyst

We like OCK for its:
i) Strong focus in driving recurring revenues via the regionalisation of its TowerCo business and riding on the passive infrastructure sharing trend;
ii) Robust pipeline of LTE deployments/ fiberisation projects locally;
iii) Value unlocking potential from the spinoff of its TowerCo assets in the longer-term to ease stretched balance sheet.

OCK is trading at attractive risk-reward profile of at 19.9x FY19E P/E (20% below 5Y average 25x) and 1.17x P/B (47% below 5Y average 2.2x), supported by a positive FY18-20 EPS CAGR of 15%.

Technically, the stock is poised to retest RM0.60-0.70 upside targets amid potential cup with handle formation

Technical View
Resistance: RM0.600 / RM0.675 / RM0.700
Support: RM0.550 / RM0.530
Cut loss: RM0.520


Key Financial Stats
Trading at 19.9x FY19E (36% below 5Y average 25x) and 1.17x P/B (47% below 5Y average 2.2x), supported by 15% EPS FY18-20 CAGR

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: OCK Group

Postby winston » Fri Sep 20, 2019 8:58 am

not vested

Jan 12, 2018

OCK Group (OCK MK)
Towerco Shaping Up Nicely, Continuous Value Creation By Management


We continue to like the stock for its good growth prospects underpinned by maiden profit contribution from the Myanmar towerco.

Positively, OCK is able to attract additional tenants.

For a start, ~180 towers have been leased to a second tenant.

We estimate this could lift 2018 net profit by 5%.

Additionally, OCK aims to build another 200-300 towers in Vietnam while working on increasing tenancy ratio.

Maintain BUY with a SOTP-derived target price of RM1.05.

Source: UOBKH

https://research.uobkayhian.com/content ... 35735f67c8
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Re: OCK Group

Postby winston » Sun Jan 05, 2020 9:09 am

not vested

OCK Group Bhd
Price: 61 sen

OCK is involved in the telecommunication infrastructure space by providing telco tower-related services that include the owning and leasing of telco towers, network design, deployment, operations and maintenance, as well as mechanical and electrical engineering services.

The company has about 4,200 towers mostly in Myanmar and Vietnam and managed more than 20,000 towers for telco operators such as Maxis, Digi and Celcom.

The tower leasing business contributes to one third of its revenue and is expected to grow rapidly with more requirement for towers as the Indochina region extend its coverage areas.

OCK is targeting to grow its ownership of towers to more than 5,000 within a year.

As a comparison, Axiata’s Edotco owns almost 30,000 towers in Malaysia, Bangladesh, Cambodia, Sri Lanka, Myanmar and Pakistan.

OCK is a growth story and is a key beneficiary of the 5G deployment and infrastructure projects under the national fiberisation and connectivity plan.

Technology-wise, we understand that 5G network requires significantly more transmission towers, equipment and antennas than 4G network.

Over the next two years, we believe that capital is the main constraint to OCK growth. The group is actively looking for strategic investors to drive this growth. If successful, it would unlock the value of this tower business by providing a base reference value.

Its earnings growth for 2019 is reflective of its potential with three consecutive quarters of growth. We expect consistent earnings growth of 10% over the next three years.

Source: TA Investment Management
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: OCK Group

Postby winston » Wed Mar 18, 2020 9:26 am

not vested

Trading Buy: OCK - 0172
Due for a technical rebound
(Last price: RM0.395, Potential upside +26.6%)

Company Profile

OCK (listed in July 2012) is principally involved in the provision of telco network services (TNS), which is the bread and butter, contributing about 60-65% to revenue. Also, the group is embarking on acquiring/building tower assets in Myanmar, Vietnam, Cambodia and other parts of Indochina. Besides, OCK diversified into Green Energy and Power Solutions, an imminent and a rapidly growing industry in Malaysia.

Trading Catalyst

Under this negative trading sentiment amid the ongoing Covid-19 episode, most of the stocks have taken significant beating and we may see some potential recovery in certain stocks.

In the telco sector, we noticed Perikatan Nasional (PN) commented that the NFCP, budgeted at RM21.6bn will proceed and the plans of rolling out 5G in 3Q are on schedule.

Hence, it may be decent for traders to pick up some short term opportunities within telco stocks after a significant fall recently. OCK could be fitting the bill at this juncture as it has formed a hammer candle after declining 47% from the recent peak of RM0.65.

Technical View
Resistance: RM0.425 / RM0.450 / RM0.500
Support: RM0.370 / RM0.365
Cut loss: RM0.350

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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