Malaysian Palm Oil Board (MPOB) and Techbond Greentech Sdn Bhd will be working together to produce palm-based polyol which will be used in polyurethane adhesives to replace formaldehyde-based adhesives. With the introduction of the polyol technology, Techbond Greentech will now produce sustainable palm oil-based polyol to produce new industrial grade polyurethane adhesives and ultimately commercialise the product.
Techbond is likely to enjoy a more favourable second half of the year as its new factory in vietnam will be commercing its operation in the second quarter. With the uplift of movement control, techbond's factories will be ramping up with its production. (higlighted by The Star)
Besides, recent announcement of its collaboration with MPOB to explore on production of palm-based polyol, it solidified my view to favour the long term growth prospect of techbond.
Malaysian Palm Oil Board (MPOB) and Techbond Greentech Sdn Bhd will be working together to produce palm-based polyol which will be used in polyurethane adhesives to replace formaldehyde-based adhesives. With the introduction of the polyol technology, Techbond Greentech will now produce sustainable palm oil-based polyol to produce new industrial grade polyurethane adhesives and ultimately commercialise the product.
I see minimal material impact of techbond being removed from the shariah compliant list recently because of dealing with beer companies as they are part of its fast moving good segment. The company should be added into the list once things normalise as the revenue contribution from the beer companies dropping.
Holding a 26 cents of cash per share (over its share price of 81 cents), the company is fundamentally sound and will definitely be able to maintain its divdend policy of 30% in the coming years.
Reference: https://www.thestar.com.my/business/business-news/2020/06/09/mpob-techbond-greentech-in-palm-based-polyol-production
