PUC (0007) - PUC ---Apparently Nothing GREAT.............. ...
A keybeneficiary of the rising interest in RE projects is PUC Founder (MSC) Bhd. However, even as the company seeks to expand its footprint in the segment, it has to contend with increasing competition as others jump on the bandwagon.
It will continue to explore more RE business opportunities following its ICULS rights issue which raised more than RM40 mil in the first quarter 2016.
Besides government incentives, the advancement of RE technology has also improved energy production. This, in turn, increased the RE producers’ revenue and profit.
It had hired a consultant to study the power grid in the proposed location of an ecotype biogas electricity plant to be developed with PW Consolidated Bhd. The MoU for the plant’s development was inked between PW Consolidated and PUC Founder’s subsidiary Founder Energy Sdn Bhd, in August 2015.
PUC Founder is principally engaged in three business segments – media and advertising, E-payment services and RE, its recurring income business.
PUC Founder says the business remains sustainable despite rates from SEDA’s feed-in tariff (FiT) system having been lowered.
In March 2015, its wholly-owned subsidiary MaxGreen Energy Sdn Bhd was made a FiT approval holder by SEDA to develop and operate a 1MW solar photovoltaic plant, which was set up in Sungai Petani, Kedah.
Since then, the company has proposed another 50MW solar plant and signed a MoU with PWF Consolidated Bhd to explore biogas energy production.
It has also formed a joint venture with Greentech Malaysia Alliances Sdn Bhd to bid for renewable energy projects by the government or government-linked corporations.
However, not all has been plain sailing for PUC Founder. The company signed a term sheet agreement with Green Forever Energy Sdn Bhd (GFE) in February 2016 to subscribe for three million redeemable convertible preference shares for RM3 mil. However, it terminated the agreement after GFE failed to get approval from SEDA for the FiT application in respect of its proposed 425kWphotovoltaic power plant.
PUC Founder posted a net profit of RM313,000 for the first quarter ended March 31. This is lower than the RM1.2 mil it posted a year ago. The company attributed this to lower contributions from its advertising and media segment as well as non-recurring expenses of some RM900,000 in relation to the issuance of ICULS. Its revenue also dipped slightly to RM8 mil from RM8.7 mil previously.
PUC (0007) - PUC ---Apparently Nothing GREAT.............. ...
http://heartsutraandsoul.blogspot.my/2017/02/puc-apparently-nothing-great.html
