As efforts to roll out MLFF and EV infrastructure accelerates, how long can $AMTEL / 7031 (AMTEL HOLDINGS BERHAD) remain in Parking gear?

Few know about Amtel, and while amongst them many know that Amtel is one supplier of charging infrastructure, fewer still know about their exposure to the MLFF rollout in Malaysia.

So let's talk about that.

It had been reported that AMTEL is working with EKOVEST to test MLFF proof of concept at DUKE highway. It had also been reported that AMTEL is potentially working with 2 other highway concessionaires to pilot test MLFF on their respective highways.

Recently, EKOVEST's new highway, called the SPE, Setiawangsa Pantai Expressway, was officially launched.

Amtel claims that a suitable way to run MLFF is by having an OBU, on board unit, together with ANPR, automatic number plate recognition, cameras at toll booths, much like how Singapore does it.

And what do you know? Amtel makes just that. If you drive one of the newer perodua cars (and selected proton packages), you might notice that the car actually comes built in with an OBU, or sometimes called an in built toll reader. Yes, that is Amtel's product.

It was rumoured that Perodua would remove the OBU since the tolls started transitioning to RFID-- but in the 2023 model, the Myvi still has it stock. If the government is steadfast in wanting to break monopolies, there's no reason to make RFID toll payments a T&G exclusive.

What I think? The country is clearly moving in the direction of open market and reviewing monopoly cronies. The country is also clearly moving towards smoother toll systems without needing to stop the car.

With net cash of nearly half of their market cap, priced below book value, improving performance and plenty of opportunities, can Amtel capitalize on this chance being served to them on a golden platter?

And can investors, knowing this, not salivate at this low risk proposition?