EATECH
E.a.technique (M) Berhad
Company Background
Changes in Director's Interest (Section 219 of CA 2016) - DATO' MOHD REDZA SHAH BIN ABDUL WAHID
Change in Boardroom - DATO' LAI KENG ONN
Change in Boardroom - DATUK WIRA MUBARAK HUSSAIN BIN AKHTAR HUSIN
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
All Eyes on E.A. Technique – What to Watch for in 2024
For the uninitiated, E.A. Technique (M) Berhad (“EATECH”) is a financially troubled company due to their shareholder’s equity falls below 25% of the share capital of RM179.8 million back in 2022, where auditors had issued a yellow card – material uncertainty on going concern to the company, resulting to the company falling into Practice Note 17 (PN17).
Back in the days, EATECH was performing reasonably well as a marine transportation and offshore storage of oil & gas and provision of port marine services. However, the company was struck by Covid-19 in 2020, resulting in significant impairment losses in the company.
Nevertheless, we are seeing great opportunity ahead for EATECH as the company’s regularisation plan has been well accepted by shareholders, additional funds of RM79.6 million has been injected into the company, together with regularisation of creditors’ debt, which would effectively put EATECH out of the PN17 status.
There are positive surprises for shareholders of EATECH…
1. Addition of New Shareholders to the company
We had mentioned that there will be additional funds being injected to the company for the regularisation plan of EATECH. A few notably players namely Voultier Sdn Bhd (“VSB”) which was owned by Datuk Wira Mubarak (70%) and Dato’ Lai* (30%) respectively, Mr. Lim, Dato’ Sri Wong, an experienced investor in the realm of Malaysia’s capital market, and Encik Nasrul, the current CEO of EATECH.
*Dato Lai is the major shareholder of Kinergy Advancement Berhad, where the company is currently valued at RM735.0 million in market capitalisation.
Logically speaking, these experienced investors would not invest in EATECH if not for their confidence in turning EATECH around. Currently, EATECH boasts an orderbook of RM146.6 million with extension options of additional RM281.25 million.
On the other hand, VSB is expected to contribute new contracts and opportunities in the oil and gas industry. Which would enhance the prospects of EATECH going forward.
2. Deeper Understanding of Shareholders
The RM79.6 million raised shall first be utilised to repay the creditors pursuant to a Scheme of Arrangement (SOA) with the creditors of the company. For information the initial total debts owing to the creditors is approximately RM259.4 million, of which the creditors had agreed to arrive at 27.4% of the Adjudicated Debt, which is RM71.1 million.
Prior to this regularisation plan, EATECH had gone through a divestment exercise to dispose of some of their assets, and repaid RM46.0 million to the creditors, where the balance is approximately RM31.0 million. After this exercise, this will clean up the balance sheet of EATECH (likely to register a gain, which shall increase the shareholder’s equity) and pull the company out of PN17.
What’s more interesting is the payment back to Sindora Berhad (“Sindora”).
While we are hunting for the next Johor thematic stock, many had forgotten that EATECH’s major shareholders namely Sindora Berhad, Kulim Berhad (“Kulim”) and Johor Corporation, are also part of the exercise, and they are “forgiving” a major chunk of the outstanding debts of EATECH to render this exercise a success.
The Stars are Aligned.
To conclude, $EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD) upliftment from PN17 is just a matter of time. Investors need to monitor this company closely as approximately 80.0% of the shares of the company had been controlled (if you know what I mean).
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$EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD)
Notice of Interest Sub. S-hldr (Section 137 of CA 2016) - DATO' MUBARAK HUSSAIN BIN AKHTAR HUSIN
Notice of Interest Sub. S-hldr (Section 137 of CA 2016) - DATO' LAI KENG ONN
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - VOULTIER SDN BHD
Notice of Interest Sub. S-hldr (Section 137 of CA 2016) - VOULTIER SDN BHD
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : REGULARISATION PLAN
OTHERSE.A TECHNIQUE (M) BERHAD ("EATECH" OR THE "COMPANY")
- OFFER OF SHARE OPTIONS UNDER EATECH EMPLOYEES' SHARE SCHEME 2024 ("ESS")
Additional Listing Announcement /Subdivision of Shares
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : REGULARISATION PLAN
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : REGULARISATION PLAN
EA Technique: Transformational Growth Ahead with New Strategic Investment
Maintain BUY; Transformation Plan in Motion
EA Technique (M) Berhad (EATech) has just received unanimous shareholder approval for a major regularisation plan, signalling a transformative phase for the company. The plan includes issuing up to 795,750,000 new ordinary shares, raising RM79.6 million to bolster its financial position. This move is a significant step in EATech’s strategy to strengthen its balance sheet and drive future growth.
Strategic Investment. The new shares will see Voultier Sdn Bhd (VSB) becoming the largest shareholder with a 51% stake. VSB is jointly owned by industry veterans Datuk Wira Mubarak Hussain Bin Akhtar Husin and Dato’ Lai Keng Onn. Their entry is expected to bring valuable resources and expertise to EATech, marking a new era of growth and stability for the company.
Financial Impact. The regularisation plan is set to significantly improve EATech’s financial health. The company expects to recognize a one-off net income of approximately RM127.4 million due to debt waivers, which will boost net tangible assets from RM57.4 million to RM261.6 million. This financial turnaround positions EATech well to capitalise on future opportunities, especially with PETRONAS planning significant investments in exploration, development, and production.
Operational Strength. EATech operates a diverse fleet of 26 vessels, including product tankers, offshore support vessels (OSVs), and a floating storage and offloading (FSO) vessel. These assets are crucial for transporting petroleum products, light cargoes, and personnel, under various charter arrangements. The enhanced financial position will enable EATech to maintain and potentially expand its fleet, ensuring it meets the growing demands of the marine transportation and offshore storage sectors.
Market Outlook. With the new strategic investment and regularisation plan, EATech is well-positioned to benefit from increased demand for its services. The company’s focus on efficiency and strategic growth aligns with broader industry trends and PETRONAS’s planned investments, creating a favourable outlook for the future.
We maintain a BUY recommendation on EATech, given its strong strategic direction, improved financial health, and the robust backing of its new major shareholders. The company is on a clear path to achieving its growth objectives, making it a compelling investment opportunity in the marine transportation and offshore storage sector.
Key Risks. Potential risks include fluctuations in marine transportation demand, changes in regulatory environments, and unexpected operational challenges. However, with the strategic backing of VSB and a clear focus on financial and operational efficiency, $EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD) is well-equipped to navigate these challenges.
General Meetings: Outcome of Meeting
E.A. TECHNIQUE (M) BERHAD - CIRCULAR TO SHAREHOLDERS IN RELATION TO PART A: (I) PROPOSED SHARES ISSUANCE; (II) PROPOSED EXEMPTION; AND PROPOSED ESS (COLLECTIVELY, REFERRED TO AS THE "PROPOSED REGULARISATION PLAN"), PART B: INDEPENDENT ADVICE LETTER TO THE SHAREHOLDERS IN RELATION TO THE PROPOSED EXEMPTION
General Meetings: Notice of Meeting
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : REGULARISATION PLAN
Titan Trading Notes For Wednesday [29/5/2024]:
$KLSE-KLCI retraced today towards the 1615 points region with an overall negative market sentiment as we saw over 820 counters closing red for the day along with it too. Daily trading also saw a dip back towards the 4.8 billion mark as sellers took over.
Main stocks that showed strong buying momentum today would be the likes of GHLSYS, SMART, REVENUE, CAPITALA, TANCO, GCB, EATECH, PARKSON, and PESONA. All of which were able to sustain their rallies throughout the day on the top volumes list despite the negative market sentiment.
$GHLSYS / 0021 (GHL SYSTEMS BERHAD) had a huge breakout towards the RM 1.08 regions today with good volume and buying momentum after consolidating over the past few weeks with RM 0.90+ as the main support levels.
For now still trending upwards quite healthily here and as long as able to sustain above its RM 1+ immediate support levels, could continue on towards and beyond the RM 1.10+ regions soon for an uptrend continuation pattern.
Will be monitoring GHLSYS closely here.
$EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD) after taking a huge hit all the way back towards the RM 0.32+ major support levels yesterday, was able to rebound briefly towards the RM 0.355 regions today with good volume and buying momentum here.
For now as long as able to sustain above its RM 0.32+ main support levels on the daily chart as a higher low, could rebound further towards and beyond the RM 0.36+ major resistance levels soon in the coming weeks.
Will be monitoring EATECH closely here as it's still en route towards exiting its PN17 status.
$RGB / 0037 (RGB INTERNATIONAL BHD) since breaking out towards the RM 0.46 major resistance levels, had been retracing over the past few trading days here back towards the RM 0.415+ main support levels on the daily chart region.
For now seems to be able to hold quite well here and may rebound back towards the RM 0.44 - RM 0.45+ major resistance levels soon for an uptrend continuation pattern soon in the coming week.
Quarterly rpt on consolidated results for the financial period ended 31/03/2024
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
Annual Report & CG Report - 2023
General Meetings: Notice of Meeting
Titan Trading Notes For Monday [15/4/2024]:
$KLSE-KLCI closed slightly red around the 1551 points region with an overall mixed market sentiment as we still had over 510 counters closing red for the day. Daily trading volume settled around the 3.88 billion mark, which is decent.
Main stocks that showed strong buying momentum would be the likes of HM, DNEX, RGB, MRCB, SPSETIA, SNS, SBH, SIMEPROP, BAHVEST, ZANTAT, TDM, TECHBASE, NOTION, THETA, ASTRO, GFM, and SENDAI. All of which were able to sustain their rallies throughout the day on the top volumes list.
$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) had been trading on a major downtrend over the past few years but was finally able to breakout from its RM 0.40+ main downtrend resistance last Friday and rallied all the way towards the RM 0.42 levels with huge volume and buying momentum.
For now looking quite strong here and as long as able to sustain above its RM 0.40+ immediate support, could continue on towards and beyond its RM 0.435 - RM 0.45+ regions soon for an uptrend rally soon.
Will be monitoring DNEX closely here as could be the start of a total trend reversal.
$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD) on the other hand also had a huge breakout after consolidating over the past few weeks here around its RM 0.65 - RM 0.685 regions on the daily chart, was able to breakout all the way towards its RM 0.715 major resistance levels here, forming a new local high.
For now looking very strong and ripe for an uptrend continuation pattern despite retracing back towards its RM 0.56+ major support levels just last month. As long as able to sustain above its RM 0.685 RM 0.70+ support, could continue strong here.
Will be monitoring MRCB closely.
$EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD) after consolidating over the past few weeks around its RM 0.30+ support levels, was able to breakout strong from its RM 0.34 major resistance with huge volume and buying momentum, breaking out towards the RM 0.35++ regions here.
For now looking very strong for an uptrend continuation and as long as able to hold above its RM 0.34 immediate support, could have a fast breakout towards testing its RM 0.395 major resistance levels soon.
Will be monitoring EATECH closely here as the company is also in the midst of regularising its business activities in hopes of exiting from its PN17 status. Should be in the uptrend for the long run.
Technical Note: E.A. Technique (M) Berhad
EA Technique (M) Berhad (KLSE: EATECH, 5259) had in last week challenged the key resistance level of 35 cents, up from the strong support level of RM0.320. To recap, EATECH was classified as a Practice Note 17 (PN17) company earlier in 2022. Notably, the company is set to complete the regularisation scheme by July as per an article by The Edge (https://cutt.ly/Pw7nBrRU) earlier. In the same article, the company also hinted at a potential win of new contracts of floating storage and offloading (FSO) vessels.
Following the uplifting trend of PN17, we see $EATECH / 5259 (E.A.TECHNIQUE (M) BERHAD) to continue to challenge the 37.0 cents and 38.5 cents resistance level before reaching a 52-weeks new high. We expect 35.0 cents to be a strong resistance-turned-support for the oil and gas company.
PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT
Annual Audited Accounts - 31 Dec 2023