Dear investors
Before,
I would like to congratulate for those who hold Dnex when my first post was at RM 0.245.
Today,
I find our market getting condensed and hardly to identify potential stocks in our large market due to our economic and political environment. However, something came across my attention this morning. This one stock showed huge potential upside with very little downside plus grand development planning in the future.
STRAITS ENERGY RESOURCES BERHAD
(formerly known Straits Interlogistic Berhad)
Straits Inter Logistics Berhad operates as a holding company.
what does company do:
Major revenue derived
1) Oil trading and fuel bunkering services
2) Port operation and management
3) Ship management
4) Inland transportation
5) Investment holding activities
This is cutting edge ship service provider across Malaysia region waiting imminent to complete next generation infrastructure of asean shipping business history with huge demand from fleet across world.
Summarized for Straits business strength:
1. Share price
Straits is the only port operation and management company that holding price below RM1 as compared MMC (RM1.86), Suria (RM1.14) and Westport (RM4.38). All price stated as at to date.
2. STS Energy Transshipment Hub
Company to build largest offshore transhipment hub in Asia.
“The project is huge. We are creating one of the largest offshore STS liquefied natural gas (LNG) and liquefied petroleum gas (LPG) transshipment hubs in Asia. Its contribution [to revenue] will be quite significant,” Straits group managing director Datuk Seri Ron Ho Kam Choy tells The Edge in an interview.
3. Labuan Liberty Port
Labuan Port is second biggest in Sabah and Sarawak which Straits currently holding 51% through its subsidiary Megah Port Management Sdn Bhd.
4. Oil trading and fuel Bunkering business
There are currently 2 major oil trading and bunkering player listed in Bursa Malaysia. Straits andrs Fast energy. Good things about Straits, they long history doing this business and fast energy just enter offcial recently. Like how vehicle needs petrol then fleets needs fuel.
5. 6 Consecutive years Profit
Company recorded profit from 2016 till to date.
6. Management takes business seriously
Great management posing 6 years profit without fail. Company manage to turnaround and from 2 fleet, now they have 14 fleet with 6 STS berth operating license and port to manage.
7. Good relationship with Petronas
In this years, Petronas and Straits collaborate to supply fuel marine vessel at Malaysian Port. Imagine whole operation of Petronas supply marine fuel. Sounds monopoly.
8. Network across region in Malaysia
Straits currently working at 19 ports ( west Malaysia 14 sabah and sarawak 5)
9. Legacy business to be listed
Banle international currently to listed HK exchange. One of way to penetrate business market in HK / China.
10. Below 1 bil outstanding share unit issued
780 mil share outstanding
11. Government policy
Amid covid 19 post pandemic( to become endemic), Wee Ka Siong announced import and export business can now be allowed to operate 24 hours.
12. Global issued
Shipping rate hike
Conclusion, same as DNEX,this project will not only contribute and benefit to local but also international. Project gonna be huge and the price currently Straits hold is irrelevant.
Be advised all material above is based on our research. Trade at your own risk although we are highly suggest.
grand slam homerun
Tuan Capital
https://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=24831
