Tek Seng

[winston]

vested

September 12, 2014

Penang's Tek Seng, Taiwan's Solartech in RM100m deal

KUALA LUMPUR: Tek Seng Holdings Bhd has entered into a memorandum of understanding (MoU) with Taiwan-listed Solartech Energy Corp, which will invest RM100mil in a subsidiary of Tek Seng.

In a filing with Bursa Malaysia, Tek Seng said under the MoU, Solartech would invest in Tek Seng’s 86.1% owned-subsidiary, TS Solartech Sdn Bhd.

It added that both parties shall negotiate the terms of the proposed investment in good faith and the MoU would lapse if the parties were unable to finalise the terms of the proposed investment.

Established in Taiwan in 2005, Solartech is one of the pioneers in the solar PV industry. Solartech is principally engaged in the manufacturing of solar cells in Taiwan providing multi-crystalline and mono-crystalline solar cells, solar modules and systems.

Earlier, Penang-based Tek Seng was issued an unusual market activity query by Bursa on the recent rise in its price and volume of shares.

The stock finished yesterday 6 sen higher to 84.5 sen, its all-time high, with 28.9 million shares traded.

Source: The Star

[winston]

vested

November 23, 2013

Tek Seng Q3 earnings surge

PETALING JAYA: Tek Seng Holdings Bhd’s net profit jumped 89% from RM1.49mil a year ago to RM2.81mil in the third quarter ended Sept 31, 2013 due to its lower purchase costs for its sheeting and polyvinyl chloride or PVC leather division.

The higher earnings is also attributed to its higher turnover which rose 13% to RM55.96mil from RM49.52mil year-on-year, it told Bursa Malaysia.

“The board of directors foresee the performance of the group for 2013 to remain stable for its PVC business although it may be affected by fluctuation in the price of raw materials.”

Source: The Star

[winston]

vested

April 18, 2013

Tek Seng sees 40% of revenue from solar cell unit

BY DAVID TAN

GEORGE TOWN: Tek Seng Holdings Bhd expects its solar cell business under subsidiary, TS Solartech, to generate over 40% of group revenue for 2013.

Group executive chairman Loh Kok Beng (pic) said the group was now securing orders from local and overseas solar panel manufacturers.

Tek Seng produces crystalline solar cells using German solar technology at its RM120mil plant in the Penang Science Park in Bukit Minyak, which commenced production in January 2013.

The group has allocated another RM480mil over the next five years to upgrade the plant and expand production.

“Local solar panel manufacturers, and there are only a handful of them in the country, save on logistics costs when they buy from us. Overseas, we are competing with China-made solar cells for the Japanese and US markets,” he told StarBiz.

A four-watt solar cell piece is currently sold at US$2 (RM6.21), down from around US$2.50 to US$3.00 two years ago, as the pricing of key raw materials such as silicon wafer has dropped.

Normally, a solar panel uses around 54 to 70 pieces of solar cells.

Loh said the group was currently producing 26,000 pieces of solar cells per day, using one production line and running on one shift.

“We plan to increase the production lines to eight by 2015, with an installed production capacity of 640MW.

“We are targeting about 50% of our solar cell products for the export market and the remainder for the domestic market,” he added.

Using German solar manufacturing equipment, Loh said the group's solar cells were able to convert 17.5% of the sunlight received into energy.

On its polyvinyl chloride (PVC) flooring product business, Loh said the group expected sales for the first quarter of 2013 to increase by a single digit over the previous corresponding period.

“The whole of 2013 is expected to be better than 2012,” he noted.

Loh added that the group would invest around US$1.25mil before mid-2013 to produce higher-end PVC flooring products.

“We are expecting more orders to come in over the next few months, as our customers are worried that PVC resin prices would go up some more.

“We expect to see more orders from Indonesia, South Africa, the Middle East and South America.

“The production per month for 2013 is around 5,000 tonnes, maintaining more or less the same monthly volume of 2012,” he said.

PVC resin prices have increased to around US$1,100 per tonne, compared with US$900 per tonne before.

For the fiscal year ended Dec 31, 2012 (FY12, the group registered a pre-tax profit of RM9.6mil on revenue of RM189.7mil, compared with RM10mil and RM182mil respectively in FY11.

“The pre-tax profit declined slightly due to higher production costs,” he said.


Source: The Star

[sschong92]

Tek Seng gets UMA query
13 September 2014

PETALING JAYA: Tek Seng Holdings Bhd, the shares in which have spiked 43% since Sept 3, was issued an unusual market activity (UMA) query.

The share price of the PVC manufacturer is up a whopping 177% year-to-date.

Yesterday, it closed at 84.5 sen, after an intra-day high of 87.5 sen, with 48 million shares traded.

As at press time, Tek Seng had yet to respond to the UMA.

On Thursday, Tek Seng announced that it had entered into a memorandum of understanding with Taiwan-listed Solartech Energy Corp, which will invest RM100mil in TS Solartech Sdn Bhd, a 86.1% unit of Tek Seng.

Source: The Star

http://www.thestar.com.my/Business/Busi ... ?style=biz

[winston]

not vested

Eye on stock
Saturday, 18 October 2014

By: K.M. LEE

TEK Seng Holdings Bhd (Tek Seng) shares retraced from an all-time high of 88.5 sen on Sept 22 to a low of 74.5 sen four days later, owing to an apparent profit-taking activity after a massive rally.

Thereafter, prices turned range-bound on bargain hunting interest alternated with continuous profit-taking, undergoing consolidation.

This stock hit a high of 84.5 sen during intra-day session, backed by bigger trading volumes, riding on the better sentiment of the principal market.

Based on the daily chart, Tek Seng appeared resilient, as it was among a small basket of stocks that was least affected during the recent market rout, with prices holding up pretty well near the historical peak.

If the broader market sentiment is to continue to improve in the near term, we reckon the bulls would take advantage of the better ambiance to explore the unknown territory on renewed buying interest.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had issued a short-term buy at the mid-range on Thursday.

Also on the upward trend, the 14-day relative strength index spiked from a reading of 43 on Tuesday to end at the 68 points level yesterday.

Though the daily moving average convergence/divergence histogram still flirting below the daily signal line to keep the sell signal, the former had indicated a pretty encouraging convergence pictogram.

Technically, indicators are seen improving rapidly, suggesting Tek Seng shares would strengthen in the short term. A clear breakout of the 88.5 sen heavy barrier would signal a new leg of uptrend.

As for the downside, initial support is pegged at the recent lows of 74.5 sen. An additional support is resting at the 67.5 sen, of which a crack will have a negative impact on the outlook going forward.

The comments above do not represent a recommendation to buy or sell.

Source: The Star

[winston]

not vested

Taiwan’s SolarTech Energy injecting RM13.1m into Teck Seng

KUALA LUMPUR: Taiwan’s SolarTech Energy Corp (SEC) is injecting RM13.10mil into solar business of Penang-based Teck Seng Holdings Bhd in return for a stake in its subsidiary.

Teck Seng said on Thursday SEC would subscribe for 3.17 million shares or 20.92% stake in Teck Seng’s loss-making subsidiary TS Solartech Sdn Bhd,

TS Solartech makes photovoltaic products such as solar cells, solar panels or solar modules and the funds would be used to develop the solar business.

Apart from the share subscription, SEC had sold two solar cells turnkey lines, which could generate a total 140 megawatts (MW) per annum to TS Solartech for RM87.70mil in return for preference shares.

Instead of paying the amount in cash, Teck Seng would issue 87,701 redeemable non-cumulative preference shares of RM1 each in TS Solartech at RM1,000 each (RPS) to SEC.

“The two units of solar cells turnkey line would strengthen TS Solartech’s commercial operations and provide economies of scale,” it said.

To recap, SEC’s subscription of the 20.92% in TS Solartech would see Teck Seng’s current stake of 86.1% reduced to 68.09% while SEC’s stake would increase from nil to 20.92%. Other non-controlling shareholder’s stake would be reduced from 13.9% to 10.99%.

TS Solartech recorded a revenue of RM9.76mil, net assets of RM50.02mil and a loss after tax of RM14.14mil in its financial year ended Dec 31, 2014.

The share sale would provide TS Solartech an opportunity to include a strategic partner to develop its solar business and improve its long-term growth process.

“SEC’s participation will immediately expedite TS Solartech’s expansion plan in improving the limitation of its existing production capacity including upgrading of existing facilities while minimising the impact on the cashflow and gearing of TS Solartech compared to funding by cash and/or bank borrowings,” it said.

It added there would be no change to the management of TS Solartech as Tek Seng would still take charge of TS Solartech’s daily operations while leveraging on SEC’s technical and R&D support.

Teck Seng said the issue price of RM4.15 per share was based on the price-to-book multiple of 1.00 time, based on the net assets of TS Solartech of RM50.02mil as at end-December 2013.

It was also based on the potential increase in TS Solartech’s production capacity after buying two solar cells turnkey lines, which could generate a total 140 megawatts (MW) per annum from SEC for RM87.70mil.

Source: The Star