thing is, the so-called storm is more like the
aligning of the planets for AZRB. The storm is so
perfect AZRB is walking on water.
As with many counters, AZRB is expected to
announce its quarterly over the next day or two. If
you match it up with Naim (which delivered great
results). It came all the way up from 80 sen a few
days back to hit 97-98 sen today (up 8 sen for
the day). Both are highly comparable.
The government has been putting out soundbites
that were so much more conciliatory over High
Speed Rail and ECRL. More so on ECRL I think.
Even IWCity had a massive volume and jacked up
day when the soundbite was pleasing for HSR but
died down after a day or two.
Looking at the way both projects are going to be
framed. The HSR and ECRL will not be a highly
lucrative project for the winners and sub
contractors.
AZRB buta-buta has the most to benefit from the
ECRL owing to the land and current projects it
has.
Go check their annual report. It has:
- nice tracts of land in Setapak, which is about
20km from the all important Gombak station for
ECRL
- also nice tracts in Bentong
- the stations of Chukai and Kemasik are very
close to Kemaman, and one of the main reason
why ECRL is needed is to support and enhance
RAPID refinery near Kemaman (the marine base
contract by Petronas has been awarded to AZRB
for another 5 years / Tok Bali supply base)
- AZRB has 4.5 acres of freehold land in Kemasik
- an even bigger plot of 66 acres in Marang which
the ECRL will pass through
Looking at the price movements, AZRB is just
discounting the good upcoming results and has
not really priced in the ECRL potential. Be careful
though, it is still potential, not written in stone.
Besides the upcoming results, Tun Mahathir will
be going to China in April, possibly to lock up the
ECRL on better terms.
Posted 1 week ago by Salvador Dali
27
FEB
Whats Up With AZRB
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