INTRO ABOUT SALCON :
Through the years, the Group has evolved into a leading water and wastewater engineering
company, with focus on the investment, design, construction,
commissioning, operation and maintenance of water and wastewater
treatment plants and ancillary facilities across Asia. In 2003, Salcon
was listed on the Main Board of Bursa Malaysia Securities Berhad
(formerly known as Kuala Lumpur Stock Exchange Bursa Malaysia Securities
Berhad).
Over the past 40 years, Salcon has built an excellent trackrecord in
water and wastewater solutions. To date, the Group has completed more
than 900 water and wastewater projects in Malaysia, Thailand, Sri
Lanka,Vietnam and China. In 2014, Salcon secured the largest water
contract in the Group’s corporate history, namely Langat 2 Water
Treatment Plant Project with its joint venture partners for a total
contract value of RM993,888,000 million. Salcon is the lead partner in
the consortium.
With a strong foothold and solid reputation in the water and wastewater
market, Salcon envisions itself to be in the forefront of future
projects in other parts of Asia which has tremendous growth for
expansion.
While keeping on track in the water and wastewater business, Salcon ventured into two new business sectors ie Property Development and Technology Services to diversify its income stream.
In early 2014, Salcon ventured into technology services as
its 3rd core business. The Group invested RM23.5 mil to acquire 50.1%
in Volksbahn Technologies Sdn Bhd (VBT), a fibre-optic cable layer and
telecommunications service provider, to build and maintain 108 km of fibre-optic cables for public transport operator Syarikat Prasarana Negara Bhd.
Source obtain from http://www.salcon.com.my/company/company-profile
Let talk part by part.
First Part, Let talk about water and waswater related business.
Non-Revenue Water or NRW is the amount of treated water that is put
into a supply system but does not bring in revenue to the water supply
company. The main components that contribute to NRW are pipe leakages,
reservoir overflows, meter under-registration and illegal connections.
SALCON offers comprehensive and holistic solutions in controlling NRW
losses to acceptable levels, using modern NRW concepts and techniques
in:
- Pressure management
- Active leakage control
- Speed & quality of repairs
- Infrastructure management
- Meter replacement programme
- Billing data management
- Identifying illegal connections
Through implementation of NRW reduction and control works in various projects, SALCON has provided benefits to our clients in:
- More water to be made available for the people
- Conserving valuable water resources
- Reduced operational expenditure
- Reduced pumping thus save energy and environment
- Less interruption and contamination in water supply
- Improved financial situation of utilities by improving revenue and deferring capital works program
Source obtain from http://www.salcon.com.my/core-business/water-and-wastewater/water/non-revenue-water
Why talk about this?
1. The
government is focusing on reducing non-revenue water (NRW) to 31% by
the end of the 11th Malaysia Plan (11MP), Minister of Water, Land and
Natural Resources Dr Xavier Jayakumar said.
He said, he was personally dissatisfied with the NRW rate which
recorded an average loss of 5,929 million litres per day (MLD) of
treated water, which was sufficient to meet the water demand in Selangor
at 3,316 MLD or Johor (1,320 MLD).
“One of the primary causes for this is mainly old pipes, especially the
fragile and leaky asbestos cement (AC) pipes that are still widely
available in the distribution system by 27% or 41,560km according to the
2017 statistics.
“In this regard, among the initiatives taken is to implement the
National NRW Reduction Programme 2018/2020 involving an allocation of
RM1.39 billion until 2020, where its main scope is to change and replace
the pipes on a large scale,“ he said.
Source obtain from https://www.thesundaily.my/local/govt-to-reduce-non-revenue-water-to-31-by-end-of-11mp-YX550230
To know more about the story do click above linkage as i only copy paste certain part of the article.
2. Six
states have agreed to increase water tariffs, Water, Land and Natural
Resources Minister Xavier Jayakumar told the Dewan Rakyat today.
Source obtain from https://www.freemalaysiatoday.com/category/nation/2019/04/10/6-states-agree-to-increase-water-tariffs-says-minister/
Above news is telling us the government is serious to reduce NRW.
However, it incur cost to replace water pipe. Therefore, the cost of
improving NRW got to pass down to the people. So, from above news, there
is high possiblity water theme play stock will be moving.
3. Dam Water Level at critical level that push state government to
manage their NRW at their utmost interest. Without water, factory can't
operate as they need water to cool down certain machinery. As human
being, we also can't live without water and this will affect our daily
interest in term of water usage such as taking bath, car wash and etc.
Water dam related news can be obtain by clicking below linkage :
4. Various
figures from PAAB, SPAN and industry players suggest that capital
investments/capex for the water sector, if viewed over the longer term
and on a bigger scale, would amount to RM77bil.
According to SPAN’s estimates, of this value, 70% is the estimated capex needed for nationwide water resource and supply systems and new sources of raw water that involve the construction of dams, off-river storage and new water treatment plants (WTPs).
The balance 30% is the estimated total value of replacing the entire network of old asbestos cement (AC) pipes spanning 43,980km.
CIMB Research pointed out other more recent estimates of water capex (according to Bernama which quoted Selangor Chief Minister Amirudin Shari) include a RM30bil dedicated to the water infrastructure in Selangor.
This is proposed to be implemented from 2019F over a 30-year period (RM1bn p.a.) to improve the state’s overall water services. More specifically, on non-revenue water (NRW), which is the rate that measures the percentage of water loss from distribution pipelines, a total of RM13bn is needed to reduce nationwide non-revenue water (NRW) from 37% in 2015, to 25% in 2020F, and further down to the state’s targeted 15% in 2030F.
Source obtain from https://www.klsescreener.com/v2/news/view/512257/cimb-research-sees-rm77b-capex-for-water-infra
Second Part of the buinsess :
Under Salcon’s technology services division, its 50.1%-owned
subsidiary, Volksbahn Technologies Sdn Bhd (VBT), has secured a 15-year
concession from Prasarana Malaysia Bhd to lay and operate fibre-optic
cables along the light rail transit (LRT) and monorail lines in the
Klang Valley.
Leong said the group has to lay fibre-optic cables on 108km of transport lines, covering about 85 LRT and monorail stations.
“We have signed up with major telcos (telecommunications companies)
such as Celcom Bhd, U Mobile Sdn Bhd and Digi Telecommunications Sdn Bhd
to lease broadband facilities to their customers, leveraging our
fibre-optic cable network,” Leong said.
VBT also signed a master agreement with edotco in August last year to
“fiberise” its 1,400 cell sites, which will provide mobile backhaul
services to other telcos.
Above information obtain from https://www.theedgemarkets.com/article/new-investments-see-profit-%E2%80%94-salcon
Let talk about fibre optic.
fiber optic cable is a network cable that
contains strands of glass fibers inside an insulated casing. They're
designed for long distance, high-performance data networking and
telecommunications.
Compared to wired cables, fiber optic cables provide higher bandwidth
and can transmit data over longer distances. Fiber optic cables support
much of the world's internet, cable television, and telephone systems.
Fiber cables offer several advantages over long-distance copper cabling.
- Fiber optics support a higher capacity. The amount of network bandwidth a fiber cable can carry easily exceeds that of a copper cable with similar thickness. Fiber cables rated at 10 Gbps, 40 Gbps, and even 100 Gbps are standard.
- Because light can travel much longer distances down a fiber cable without losing its strength, it lessens the need for signal boosters.
Source obtain from https://www.lifewire.com/fiber-optic-cable-817874
After new Minister of Communication step in , hurray. Malaysia in the world ranking number 28 in term of Internet Speed.
Source obtain from https://technave.com/gadget/Malaysia-has-climbed-to-the-28th-rank-in-terms-of-broadband-Internet-speed-13869.html
So, ongoing we dont need to suffer the low internet connection which showing in my HP 3G signal. Damm hate it when i see 3G...
In the future, believe it gonna to improve further to provide better
value to the customer else telco company will be drop off and user will
go to their competitor as this day many Malaysian are smart consumer.
So, hopefully more TELCO company will appoint SALCON for laying fibre
optic cable.
Recent Possibile development from salcon
1. Salcon Bhd said its engineering unit has secured a water treatment plant construction contract in Sabah worth RM124.7 million.
In an exchange filing today, Salcon said the contract — awarded to its
wholly-owned subsidiary Salcon Engineering Bhd by Rintis Dinamik Sdn Bhd
— will involve works for the capacity expansion works for the Telibong
II water treatment plant in Tamparuli, Sabah.
The expansion, which will be carried out on its main pipeline and
storage tank, will increase the plant’s capacity from 80 million to 160
million litre a day.
Source obtain from https://www.theedgemarkets.com/article/salcon-bags-rm1247-mil-water-treatment-plant-contract
2. Salcon Bhd has appointed businessman Tan Sri Abdul Rashid Abdul Manaf as its new chairman effective today.
In a filing with Bursa Malaysia today, Salcon said that Abdul Rashid is
the founder director of Eco World Development Group Bhd and is also
presently the group chairman of Cahya Mata Sarawak Bhd.
Source obtain from https://www.theedgemarkets.com/article/salcon-appoints-tan-sri-abdul-rashid-new-chairman
A big guy carry the big name from reputable company is joining SALCON.
What make him a founder of ECO World and Group Chairman of CMSB joining
into this company. There must be some thing he found it worth to join
and make this company turnaround.
FINANCIAL SNAPSHOT
In the past since mid 2014 till current, there is never once SALCON
post consecutive 3 quarter profit in a roll. So, if this happen which
mean there is possibility a turnaround for this counter base on
interepreation on financial result. Although earning may not look that
good for the past 2 quarter which translate about average 9.6% profit
margin.
Techncial Outlook :
Weekly Chart Outlook
SUPPORT : 0.275
RESISTANCE : 0.35 ; 0.40 ; 0.43
Daily Chart Outlook
Technical Interpretation :
1. MACD GOLDEN CROSS : BULLISH SIGNAL
2. SWING-HERO INDICATOR : BULLISH SIGNAL
3. IMPROVE OF TRADING INTEREST WITH MORE BUYING INTEREST
Date : 16 April 2019
Time : 2.30pm - 4.30pm
Language： English
Location : Level 2, P-16, Icon City, No: 1B, Jalan SS8/39, Petaling Jaya, 47300, Selangor
Registration Link : https://www.eventbrite.com/e/malaysia-short-term-technical-analysis-workshop-tickets-59892323552?aff=ebdssbdestsearch
马股免费技术讲座会
日期： 18 April 2019
时间： 2.30p.m- 4.30 p.m
语言： 华语
地点： Level 2, P-16, Icon City, No: 1B, Jalan SS8/39, Petaling Jaya, 47300, Selangor
注册链接：https://www.eventbrite.com/e/59893455939?aff=ebdssbdestsearch
大马投资分享会 | Vol .1
日期： 21 April 2019时间： 1.30p.m- 5.00 p.m
语言： 华语
地点： B-2-13A Plaza Arkadia， No 3, Jalan Intisari Perdana, Desa ParkCity
注册链接：https://www.eventbrite.com/e/vol-1-tickets-60046577931?aff=ebdssbdestsearch
FB : https://www.facebook.com/Steventheeinvestment/
Telegram : https://t.me/steventhee628
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