Tuesday, 27 October 2015
SEB - Twin Dragon
Seremban Engineering Berhad (SEB - 5163) is primary involved the engineering sector with more than 30 years of experiences. The company had distinct record in handling the engineering part of the plant building project dealing with oil and gas and hazardous material. The group also manufacture fabricated process equipment, provide maintenance of plant as well.
For the past 1 year, SEB is involved in the SAMUR project which had saw higher revenue. But due to cost overrun, it had dampened the result. Now that SEB had learn a hard way of experience, where will SEB be heading into the coming days?
SEB had been trading in a thin volume manner for sometime, however, not until the recent transaction which had saw more than 2.5 million of shares crossed hand in the open market on the 21st of October 2015. Prior to the event, SEB had maintained at RM 0.45 as a short term consolidation effort. Should the momentum come back, SEB should be able to see a stronger volume in the coming days that will penetrate above RM 0.50.
SEB could be trading it's way towards RM 0.70 along with several corporate exercise that will see new shareholder unlocking the true value of SEB.
SEB on Pengerang
Nothing can be better with a twin catalyst for SEB's share price to appreciate further. SEB is known for their expertise in plant building as well as fabrication of plant materials. Although the previous project in SAMUR (Sabah Ammonia Urea) plant had saw higher operating cost, the experiences gained from the project will equipped SEB ready for the next bigger chunk of project in Pengerang. SEB involvement in SAMUR also pave way for other Petronas linked projects, especially in Pengerang.
According to close sources, SEB will be looking to secure a package in the Refinery and Petrochemical Integrated Development project (RAPID) in Pengerang valuing almost RM 300 million. As of recent, Bina Puri and Gadang had announced their contract awards from Pengerang.
The management of SEB is also very confident on securing more waste management contract as well as airport terminal facilities.
Emergence of New Shareholder
SEB is a subsidiary of Success Transformer Corp Berhad (Success - 7207) through the ownership of 52 million shares (65.26%). Due to the failure of Success in bringing more value to SEB as a majority shareholder, Success had been looking for new shareholder to unlock and add new value to SEB by selling their block of shares.
According to close known sources, Success had finalize the share sale of SEB at approximately RM 40 million for the whole block of 52 million shares, which could reflect a value of RM 0.77 a share.
As of recent, Success had saw it's share price rocketed from a lowly RM 1.30 to RM 2.00 in a short time frame.
The latest quarter had saw SEB's NTA standing at RM 0.70, however, there are still a considerable sum of undervalue freehold property assets that could be dating back to 2009, where asset had appreciated by a considerable sum
In a quick conclusion, SEB will be an interesting company to look out based on:
- Upcoming announcement on projects secure at Pengerang worth approx RM 300 million
- Success selling at approx RM 0.77 a share to new emerging shareholder
- Potential corporate exercise from new shareholder with new asset injection, bonus issue and private placement
Will SEB hit the ceiling limit with the twin catalyst? You decide.
Bone's short term TP : RM 0.60
Cheers and have a nice day
Regards,
Bone
For the past 1 year, SEB is involved in the SAMUR project which had saw higher revenue. But due to cost overrun, it had dampened the result. Now that SEB had learn a hard way of experience, where will SEB be heading into the coming days?
SEB had been trading in a thin volume manner for sometime, however, not until the recent transaction which had saw more than 2.5 million of shares crossed hand in the open market on the 21st of October 2015. Prior to the event, SEB had maintained at RM 0.45 as a short term consolidation effort. Should the momentum come back, SEB should be able to see a stronger volume in the coming days that will penetrate above RM 0.50.
SEB could be trading it's way towards RM 0.70 along with several corporate exercise that will see new shareholder unlocking the true value of SEB.
SEB on Pengerang
Nothing can be better with a twin catalyst for SEB's share price to appreciate further. SEB is known for their expertise in plant building as well as fabrication of plant materials. Although the previous project in SAMUR (Sabah Ammonia Urea) plant had saw higher operating cost, the experiences gained from the project will equipped SEB ready for the next bigger chunk of project in Pengerang. SEB involvement in SAMUR also pave way for other Petronas linked projects, especially in Pengerang.According to close sources, SEB will be looking to secure a package in the Refinery and Petrochemical Integrated Development project (RAPID) in Pengerang valuing almost RM 300 million. As of recent, Bina Puri and Gadang had announced their contract awards from Pengerang.
The management of SEB is also very confident on securing more waste management contract as well as airport terminal facilities.
Emergence of New Shareholder
SEB is a subsidiary of Success Transformer Corp Berhad (Success - 7207) through the ownership of 52 million shares (65.26%). Due to the failure of Success in bringing more value to SEB as a majority shareholder, Success had been looking for new shareholder to unlock and add new value to SEB by selling their block of shares.
According to close known sources, Success had finalize the share sale of SEB at approximately RM 40 million for the whole block of 52 million shares, which could reflect a value of RM 0.77 a share.
The latest quarter had saw SEB's NTA standing at RM 0.70, however, there are still a considerable sum of undervalue freehold property assets that could be dating back to 2009, where asset had appreciated by a considerable sum
In a quick conclusion, SEB will be an interesting company to look out based on:
- Upcoming announcement on projects secure at Pengerang worth approx RM 300 million
- Success selling at approx RM 0.77 a share to new emerging shareholder
- Potential corporate exercise from new shareholder with new asset injection, bonus issue and private placement
Will SEB hit the ceiling limit with the twin catalyst? You decide.
Bone's short term TP : RM 0.60
Cheers and have a nice day
Regards,
Bone
---success拥有65%的子公司 seb 5163,今天神勇大升 28sen,報rm0.74
看来公司有好消息公布了,rm2.05 加倉.
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