Rex Intl

@Ryunanda $SGX-5WH Rex Intl UOBKH TP SGD$ 58c!

Congrats to those who has HIBISCUS! @mengteck @FIRLGuys @wsk20 @GoldieLoh @zhengyou0705 @Jasonsum

For those who "miss" on $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD) and have exposure in trading Singapore stocks / SGX, they can consider REX International $SGX-5WH - one of my top picks in 2022

Just like HIBISCUS, Rex Intl $REX International Holdings (sgx) is a big beneficiary of high oil price. Their 2H 2021 numbers will blow the lights out. The company could be trading at 2-4x PE.

** Thesis **

Oil & Gas stocks had been underperforming for years. A dollar of earnings earned by the names in the sector are valued very lowly by the investment community these days, due to the apparent “old economy, ESG narrative”… but in an inflationary environment, what better way than parking some money to stocks at dirt cheap valuation and beaten down? Especially now that oil price keeps going up?

Rex intl story is very similar to $HIBISCS. They bought an asset from repsol in 2021 as well. And currently, their absolute price return % performance lag that of oil price AND hibiscus in the YTD / past 3 months.

- Rex will report results around end Feb; I expect 2H21 results to be a wake-up call to the investment community as this include the financials of acquired Norwegian Brage field and its cash flow from 01/01/2021. I repeat, not from the date of purchase, but FROM BEGINNING OF THE YEAR as part of the deal. When the deal was announced, oil prices were hovering around 60 USD, today they are over 90 USD!

- Going forward, Rex will have both Oman Yumna field asset (able to contribute 10k bpd) on top of the Norwegian Brage asset (able to contribute 5k bpd). They also recently won some concession in Malaysia and looking for some contribution in near future.

- On financials and valuation, as I’m no oil n gas expert, it’s hard to quantify as there’s no insight into how Brage field performed during 2021, but looking at 1H numbers from Rex, oil prices, info from production of Oman asset, I calculated that Rex could still only be trading at anywhere between 2-4x FY21 PAT. Beyond that, Looking into FY22, and taking spot oil prices, it is not hard to see FY22 will be a good year for the company too.

- With the huge profit and cashflow that will be attained, the company should be paying a good dividend as well as potentially buying back its own shares. If all goes smoothly, there may be potential of up to double digit dividend yield to be paid out.

Something to ponder!

Tagging my foreign stocks kaki @Jay888 @zhexiangxd @facademy

@weiboy90 just have a quick glance on the stock's key stats. 1) Shenzhen expressway currently trading at 4.5x PE with 6% div yield. Its historical PE can support 8x multiples and 2 analysts covering the stock is giving it HKD11 fairvalue. But this is an , infrastructure play in China and not sure if can be considered as "recovery" play as China has sort of recovered much earlier than the rest of the world.

@weixiang98 on 2) NAGACORP Having some chinese blood in us, I think regardless of regulations, you can't easily take the habit of gambling - something which has sort of became a culture or even a tradition - out of the Chinese haha.

Talking about foreign stocks... @Jay888 @mengteck 3) $PENTA / 7160 (PENTAMASTER CORPORATION BERHAD) HK had moved strongly the past week!

@mokrhutar179 @zhexiangxd @Jay888 @mengteck @zhengyou0705 on 4) PC PARTNER - yummy dividend payment came to pass. The stock also had an analyst coverage recently from Sunwah Kingsway. The article mentioned:

"Riding on the high demand of gaming GPU, we’re confident in the shipments of 2H21-2022. We expect rev/np for FY21E to reach HK$ 15,777 m/ HK$ 2,193 m. The counter is currently trading at ~1.3x FY21E P/E with potential payout ratio at 40% (dividend yield 30.3%), which we think is undemanding. We suggest investors to accumulate on any weakness.."

The stock is also at -20% pullback from the peak while $BTC is nearing all time high. Whilst this is a highly volatile stock with extreme short cycle, I almost bought the stock again. Suffice to say I will not be selling the remaining of my balance PC Partner just yet.

Other interesting foreign stocks I'm keeping an eye on is: 5) $SGX-5WH REX International listed in SGX. The story is very similar to $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD) (bought Repsol field) - yet it's trading at lower valuation whilst oil price remain strong.

6) $SGX-AWX AEM valuation remains undemanding when it's in the middle of INTEL's aggressive expansion drive and new customer win.

Lastly 7) TSLA - I've personally added more position here - second BUY transaction in 2021.. Funny enough, personally quite pleased wf the fact that this year the share price is consolidating after crazy bull of 2020.

Intrinsically the business value has actually gone up through continuous performance beats n development milestones while the stock market price is sort of “stagnant” from where it end last year. Hopefully the pattern continues (business progress catching up to share price / valuation). @facademy @shaun723 @HerculesJr

@andyyap1993 HIBISCS is a good company.. just gotta stay solvent and wait patiently. The wind is not blowing in the direction of oil n gas industry at the moment..

by the way, can try to look at REX International as well in SGX.
$SGX-5WH Very similar to HIBISCS

REX (5WH.SGX) - Break out from accumulation

1. Accumulation Stage
- consistent sideway price in a box with consistent volume
- a lot of T signals appeared to test sellers and buyers during accumulation

2. Shakeout
- Red down bar with low volume
- Smart money shakeout weak hand holders with price breaking below 40MA
- NS signal confirmed with reversal pattern

3. Break out from accumulation stage
- Green Pentagon appeared indicates increasing momentum
- Price break out from previous resistance of 0.165, potential mark-up stage
- Well-supported above 20 MA with increasing volume
- Monitor for continuation of trend

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Disclaimer: This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock.

$SGX-5WH