MCLEAN 0167 MCLEAN TECHNOLOGIES BERHAD EYING TO MAKE IT BIG ON NICHE BIOTECHNOLOGY SECTOR WITH 40% CAGR
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Every
crisis is an opportunity. As most of Malaysian equity were settled down
at the lower price range, does not this turn into an opportunity for a
good bargain?
Revisit
back to Mclean (0167), this company is involved in the E&E
industry, specifically on surface treatment and cleaning, with major
customer in the HDD industry. While the development of better HDD
technology continued to keep HDD relevant in enterprise data storage,
Mclean took a big step in diversifying in healthcare through asset
injection from the current major shareholder - Yeo Hock Huat.
The
latest proposal involving asset injection - Biocair, a Singapore based
home grown brand that manufacture and sell bio-active disinfectant.
The acquisition will be funded through
- private placement
- rights issue and free warrant upon subscription
Upon completion, Mclean will own 60% of JCS Biotech Pte Ltd, which is the holding company for the disinfectant brand, Biocair.
The acquisition will come with a profit guarantee of SGD 5.5 million.
The fund raising and acquisition will also provide a bridge for
Biocair to penetrate into Europe (UK) market for the start.
The
market prospect for disinfectant is growing very strong, with CAGR of
41% in the global export market. The covid-19 pandemic had help raise
awareness on usage of air purification in the general market.
Market
observers are of the view that medical sanitization which include air
purification are here to stay. This once a niche segment will be a big
growing market especially in the developed country.
The BAIT AND HOOK BUSINESS MODEL
One
of the strong and successful business model is bait and hook model.
There are a lot of successful example in the consumer product segment
which uses this business model such as water filter system and coffee
maker (machine and pellets)
This
business model operate on selling a one time cost hardware at a low
cost, and capture a repetitive revenue from product consumption.
For
Biocair, it will be selling air purifying machine for 1 time, and it
will lock the customer into purchasing refillable disinfectant liquid
for a period of time until the customer changes their brand preferances.
Mclean
diversification into this industry will present the listed company with
a better growth prospect, which will be good for investor in the long
term.
After all, at a price below 20 cents, it represents an attractive prospect for investor on the future growth of Mclean.
IMPORTANT NOTICE
Please
be informed that I am not a professional or certified analyst. I am not
a licensed consultant, just a normal retail investor. I am just sharing
my ideas and opinion on the market outlook. Any company mentioned
should not be interpreted as a buy/sell/trade call. Please do your own
research and buy/sell/trade at your own risk.
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