Working Capital – Premudraja http://premudraja.net/ Wed, 29 Jun 2022 13:33:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://premudraja.net/wp-content/uploads/2021/06/icon-4-150x150.png Working Capital – Premudraja http://premudraja.net/ 32 32 Road contractors expect margins to drop 200 basis points: crisis https://premudraja.net/road-contractors-expect-margins-to-drop-200-basis-points-crisis/ Wed, 29 Jun 2022 13:19:56 +0000 https://premudraja.net/road-contractors-expect-margins-to-drop-200-basis-points-crisis/ Aggressive bidding and high raw material prices will drag operational profitability of EPC (engineering, procurement and construction) highway contractors by 200 to 250 basis points (bps) to a ten-year low this fiscal year, the Department said. rating agency Crisil in a report. Road EPC players’ credit profiles will remain stable, however, supported by debt-free balance […]]]>

Aggressive bidding and high raw material prices will drag operational profitability of EPC (engineering, procurement and construction) highway contractors by 200 to 250 basis points (bps) to a ten-year low this fiscal year, the Department said. rating agency Crisil in a report.

Road EPC players’ credit profiles will remain stable, however, supported by debt-free balance sheets, prudent working capital management and steady cash accumulation, with strong allocations over the past two fiscal years supporting revenue growth, the report Crisisl based on an analysis of 20 EPC actors, which constitute 70% of road sector revenues, said.

The National Highways Authority of India (NHAI) granted 6,300 km last fiscal year, up 30% year-on-year, with 55% under the Hybrid Rent Model (HAM). The relaxation of bidders’ financial and technical capacity criteria led to a peak HAM award of 3,500 km in fiscal year 2022, compared to 2,600 km in the previous fiscal year.

Additionally, to speed up construction by awarding to more players, package sizes have been reduced by 30% in the past two fiscal years compared to order sizes in fiscal years 2016-20. As a result, mid-sized regional players won 40% of HAM awards in fiscal years 2021 and 2022, compared to around 25% in fiscal years 2016-20.

Aniket Dani, Director of Crisil Research, said: “Limited competition in HAM projects had supported healthy profit margins for roadside EPC players between fiscal years 2018 and 2021.

Changes in bid eligibility criteria and smaller package sizes have intensified competition, particularly in the past fiscal year. Average bid premiums fell to 4% last year from 16% earlier. Proposed changes in network eligibility criteria and additional performance security for abnormally low bids may moderate competitive intensity.”

The intensification of competition and the sharp rise in the prices of the main raw materials – steel, bitumen and cement – had reduced the operating margins of road EPC players by 200 basis points last fall. Prices for these key commodities jumped 26%, 60% and 4% respectively in the past fiscal year and are also expected to remain high this fiscal year. The cost of raw materials represents 45-50% of the overall cost of roadside EPC players and therefore margins will remain sensitive to any significant price increase. Although many contracts have built-in escalation clauses, these come into effect with a lag. An expected moderation in input prices could improve margins next year. However, the improvement will be limited to 100 basis points with the execution of aggressive bidding contracts, Crisil said. Anand Kulkarni, Director of Crisil Ratings, said: “Despite declining profitability, road EPC players’ balance sheets will remain healthy. Revenue will grow 13-15% this fiscal year, supported by strong backlogs, as evidenced by the backlog-to-revenue ratio of more than 3x. Sound accrual and limited debt will support comfortable leverage, with the total external liabilities to net worth ratio around 1.1x this fiscal year. Thus, players’ credit profiles should remain stable despite the current headwinds.”

Despite competitive pressures, moderating input prices will remain essential for profitability and accruals. A protracted war between Russia and Ukraine and its impact on commodity prices could affect credit profiles and will be worth watching.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

]]>
Greenbrook TMS Provides Update on Successful Acquisition of TMS https://premudraja.net/greenbrook-tms-provides-update-on-successful-acquisition-of-tms/ Mon, 27 Jun 2022 21:01:00 +0000 https://premudraja.net/greenbrook-tms-provides-update-on-successful-acquisition-of-tms/ TORONTO–(BUSINESS WIRE)–Greenbrook TMS Inc. (TSX: GTMS, NASDAQ: GBNH) (“Greenbrook“or the”Company), a leading provider of transcranial magnetic stimulation (“SMT”) therapy in the United States, today announced an update on the status of its previously announced proposed acquisition (the “Acquisition“) of Check Five LLC, a Delaware limited liability company (doing business as “Success TMS”) (“TMS Success”). Greenbrook […]]]>

TORONTO–(BUSINESS WIRE)–Greenbrook TMS Inc. (TSX: GTMS, NASDAQ: GBNH) (“Greenbrook“or the”Company), a leading provider of transcranial magnetic stimulation (“SMT”) therapy in the United States, today announced an update on the status of its previously announced proposed acquisition (the “Acquisition“) of Check Five LLC, a Delaware limited liability company (doing business as “Success TMS”) (“TMS Success”). Greenbrook and Success TMS continue to work diligently to complete the acquisition and now expect to complete the acquisition in early Q3 2022.

As previously announced on May 15, 2022, Greenbrook has entered into a Member Interest Purchase Agreement pursuant to which Greenbrook will acquire Success TMS, with the intention of securing additional debt financing from a third party lender to fund the Company’s future expansion plans and for general corporate and working capital purposes.

As previously reported, on March 30, 2022, the Company received a waiver from Oxford Finance LLC (“Oxford”) regarding the Company’s obligation under the existing credit agreement to provide annual audited financial statements for the fiscal year 2021 which do not contain any “going concern” or similar qualification or exception (the “Waiver”). In consideration for the waiver, the company has agreed to complete an equity and/or subordinated debt offering for proceeds of at least $12 million by June 30, 2022. In light of the pending acquisition and proposed debt financing processes, Oxford has agreed to extend the waiver until July 15, 2022.

“We are very pleased with the progress we have made on the acquisition. We believe the acquisition will demonstrate our ability to deliver on one of the key pillars of our sustained growth strategy,” said Bill Leonard, President and Chief Executive Officer. “This acquisition will allow us to continue to expand our national footprint of TMS centers across the United States and accelerate our path to profitability. We are excited to begin working with our new colleagues at Success TMS who share our passion for providing exceptional care to patients with depression and other mental disorders.

About Greenbrook TMS Inc.

Operating through 148 company-operated treatment centers, Greenbrook is a leading provider of TMS therapy, an FDA-approved non-invasive therapy for the treatment of major depressive disorder and other mental health disorders, in the United States. -United. TMS therapy delivers local electromagnetic stimulation to specific brain regions known to be directly associated with mood regulation. Greenbrook has provided over 840,000 TMS treatments to over 24,000 patients with depression.

]]>
Critical comparison between Bank First (NASDAQ:BFC) and Capital Bancorp (NASDAQ:CBNK) https://premudraja.net/critical-comparison-between-bank-first-nasdaqbfc-and-capital-bancorp-nasdaqcbnk/ Sun, 26 Jun 2022 05:16:31 +0000 https://premudraja.net/critical-comparison-between-bank-first-nasdaqbfc-and-capital-bancorp-nasdaqcbnk/ Bank first (NASDAQ: BFC – Get a rating) and Capital Bancorp (NASDAQ: CBNK – Get a rating) are both small-cap financial companies, but which stock is better? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation. Institutional and Insider Ownership 26.3% of Bank First shares […]]]>

Bank first (NASDAQ: BFCGet a rating) and Capital Bancorp (NASDAQ: CBNKGet a rating) are both small-cap financial companies, but which stock is better? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

26.3% of Bank First shares are held by institutional investors. By comparison, 46.4% of Capital Bancorp’s shares are held by institutional investors. 7.6% of Bank First shares are held by insiders of the company. By comparison, 33.1% of Capital Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.

Dividends

Bank First pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Capital Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Bank First pays 15.3% of its profits as a dividend. Capital Bancorp pays out 6.9% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Bank First has increased its dividend for 2 consecutive years. Bank First is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This chart compares gross revenue, earnings per share (EPS), and valuation of Bank First and Capital Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bank first $121.90 million 4.78 $45.44 million $5.76 1:47 p.m.
capital bank $173.88 million 1.73 $39.98 million $2.89 7.45

Bank First has higher earnings, but lower earnings than Capital Bancorp. Capital Bancorp is trading at a lower price-to-earnings ratio than Bank First, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of the current ratings and recommendations for Bank First and Capital Bancorp, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bank first 0 0 1 0 3.00
capital bank 0 0 0 0 N / A

Bank First currently has a consensus price target of $84.00, suggesting a potential upside of 8.30%. Given Bank First’s possible higher upside, research analysts clearly believe that Bank First is more favorable than Capital Bancorp.

Profitability

This table compares the net margins, return on equity and return on assets of Bank First and Capital Bancorp.

Net margins Return on equity return on assets
Bank first 36.55% 13.92% 1.53%
capital bank 23.42% 20.73% 1.87%

Volatility and risk

Bank First has a beta of 0.35, which means its stock price is 65% less volatile than the S&P 500. In comparison, Capital Bancorp has a beta of 0.42, which means its stock price is 58% less volatile than the S&P 500.

Summary

Bank First beat Capital Bancorp on 9 out of 16 factors compared between the two stocks.

Bank First Company Profile (Get a rating)

Bank First Corporation operates as a holding company for Bank First NA which provides consumer and commercial financial services to Wisconsin businesses, professionals, consumers, associations, individuals and government authorities. The company offers checking, savings, money market, cash management, retirement and health savings accounts; other term deposits; certificates of deposit; and residential mortgage products. It also provides credit cards; ATM processing; Insurance; data processing and other information technologies; investment and custody; finance management; and online, telephone and mobile banking. The Company’s lending products include real estate loans, including commercial real estate loans, residential mortgages and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing and other business purposes; construction and development loans; residential loans for 1 to 4 families; and consumer loans for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. It operates through 21 offices in Manitowoc, Outagamie, Brown, Winnebago, Sheboygan, Waupaca, Ozaukee, Monroe and Jefferson counties in Wisconsin. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.

Capital Bancorp Company Profile (Get a rating)

Capital Bancorp, Inc. operates as a bank holding company for Capital Bank, NA which provides various banking products and services to businesses, nonprofits, and entrepreneurs in the United States. It operates through Commercial Banking, Capital Bank Home Loans and OpenSky segments. The Company offers a range of deposit products and services, including checking and savings accounts, term, interest-bearing demand and money market accounts, and certificates of deposit; and credit cards. It issues residential mortgage loans and offers residential and commercial real estate loans, construction loans and commercial loans, as well as other consumer loans, such as term loans, auto loans and boat loans to small and medium enterprises, professionals, real estate investors. , and small home builders and individuals. It operates through four commercial bank branches, four mortgage offices and a loan origination office. The company was founded in 1974 and is based in Rockville, Maryland.



Get news and reviews for Bank First Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst notes for Bank First and related companies with MarketBeat.com’s FREE daily newsletter.

]]>
portfolio breakdown: overweight automotive; Beware of banks focused on corporate investment spending: Nilesh Shetty https://premudraja.net/portfolio-breakdown-overweight-automotive-beware-of-banks-focused-on-corporate-investment-spending-nilesh-shetty/ Fri, 24 Jun 2022 04:30:00 +0000 https://premudraja.net/portfolio-breakdown-overweight-automotive-beware-of-banks-focused-on-corporate-investment-spending-nilesh-shetty/ “I will be cautious. I don’t think much value has emerged in this bucket yet. As they have had a massive rally, they are now seeing a correction and investors should still be cautious in this bucket,” said Nilesh ShettyPortfolio Manager, Quantum Advisors. How do you position yourself in deep cyclicals such as the automotive […]]]>
“I will be cautious. I don’t think much value has emerged in this bucket yet. As they have had a massive rally, they are now seeing a correction and investors should still be cautious in this bucket,” said Nilesh ShettyPortfolio Manager, Quantum Advisors.

How do you position yourself in deep cyclicals such as the automotive and automotive auxiliary segment in your portfolio? Have you started increasing your weights here?
We believe in value styling and the automobile is one of the deepest pockets of value available. Valuations there are trading near the bottom of their valuation ranges and we actually continue to have a significant weighting there, particularly in the two-wheeler sector. We have a large oversized position there.

Again, the numbers are back to where they were ten years ago, mainly because the market has had to digest the price increases that have happened over the last three or four years. We’re kind of on the cusp of a recovery in volumes there and if your volumes generally go up. One of the main drivers is the replacement cycle which has lengthened due to economic shocks.



Maybe we’ll see some of those seated buyers come back and replace some of their old vehicles. And of course, a lot of offices are still hybrid and colleges still haven’t returned to 100%. Once that need for mobility kicks in, a combination of factors will cause auto demand to pick up, especially where valuations sit. We expect this bucket to do very well over the next two to three years. So we have a fairly large overweight position.

Also Read: India eyes at least 4-5 years of very high GDP growth rate

Back to recommendation stories



What about capital goods, especially mid-level capital goods, carrier companies? , and all those mid-cap engineering companies that are good feeders for a larger investment cycle. How do you like this universe?

Unfortunately, many of them do not meet our liquidity criteria. We have minimum liquidity criteria and most of these companies tend to trade below this for us, so they did not enter our filters. But there is a cyclical recovery ahead and we will see this bucket do just fine.

You have to choose the quality of management because it is full of companies whose quality of management is not so great. You have to be very careful who you want to buy from in this bucket. I expect that if there is a generally bullish economic cycle in India which we believe is due primarily, you may see a strong recovery in infrastructure spending and the investment cycle again. I expect the capital goods as well as the attachments of those capital goods to do much better.

The CEO of was referring to the return of the credit cycle. He told us that capacity utilization in the system had increased to 75% and that inquiries about new loans related to capital expenditures had increased. Does it reassure you to hold more corporate-focused banks in your portfolio, whether PSUs or private banks?

We have some allocation there, but we have to be careful because of the price inflation you’ve seen over the past two years. Replenishing working capital alone will stimulate credit growth. So it may not be a true reflection of the underlying demand for capital spending, but simply the inflation-induced replenishment of working capital that is causing the this credit growth figure.

But we expect that over the next 12 to 18 months, at some point, companies will get serious about capital spending. We see anecdotal evidence of this in one or two sectors, but whenever I have met with banks, there is no widespread need felt by Indian companies to show strong improvement in capital expenditure. They are still very cautious and vigilant and sitting on the sidelines, but I expect that to change over the next 12-18 months once usage levels reach a certain threshold.

We have banks, but most of them are on the retail side. We have to be careful with banks focused on corporate investments, as many of them are backed by services and the quality of management there is highly suspect. We tend to stick more to the private side at the moment.

GRMs have reached record highs and now refining inventories have started to pull back. The commodity cycle appears to have peaked and lead, zinc and copper are all at multi-week lows. Did you manage to reduce your weight on the pure raw materials in time or do you expect a rebound and a healthy average achievement and therefore keep it?

Sometime late last year, we began to reduce many of these holdings. We don’t have a lot of commodities, but whatever we have, we’ve reduced a significant portion of their weightings primarily on valuations because during cyclical rallies their valuations started trading at higher valuations relative to their historical ranges.

We have reduced this and are patiently waiting. They have corrected quite sharply and in many companies, although the price correction may not justify the kind of stock price correction we have seen. If the price holds and there are opportunities for us to add more, we will have to wait and watch where commodity prices end up. If they end up going down, you might see a little more pain in that bucket, but we’ve reduced our positions in the commodities space.

We know that small and mid caps are more of a bottom-up opportunity, but has the average valuation of this universe corrected enough to start looking for value there?
We have a significant weight on corporate governance and getting quality management at valuations we are comfortable with has been a big challenge for us. So even after the corrections, the best managed companies with excellent franchises or commercial quality continue to trade at higher valuations.

We’ll get value in companies where maybe the quality of management is suspect or the business models aren’t that good and it’s not a space we want to own. So I will be careful. I don’t think much value has emerged in that bucket yet. As they had a massive rally, they are now seeing a correction and investors should still be cautious in this bucket.

]]>
Golden Sun Education Group Limited announces the award of https://premudraja.net/golden-sun-education-group-limited-announces-the-award-of/ Tue, 21 Jun 2022 23:58:00 +0000 https://premudraja.net/golden-sun-education-group-limited-announces-the-award-of/ Shanghai, China, June 21, 2022 (GLOBE NEWSWIRE) — Golden Sun Education Group Limited (the “Company” or “Golden Sun”), a tutoring service provider in China, today announced the price of its public offering (the “Offering”) of 4,400,000 shares of Class A common stock at a public offering price of $4.00 per Class A common stock. The […]]]>

Shanghai, China, June 21, 2022 (GLOBE NEWSWIRE) — Golden Sun Education Group Limited (the “Company” or “Golden Sun”), a tutoring service provider in China, today announced the price of its public offering (the “Offering”) of 4,400,000 shares of Class A common stock at a public offering price of $4.00 per Class A common stock. The Class A common stock has been approved for listing on the Nasdaq Capital and is expected to begin trading on June 22, 2022 under the symbol “GSUN”.

The Company expects to receive aggregate gross proceeds of US$17,600,000 from the Offering, before subscription discounts and other related costs. In addition, the Company has granted the underwriter an option to purchase up to 660,000 additional Class A common shares at the public offering price, less underwriting discounts and commissions, within 45 days of closing. The offering is expected to close on or about June 24, 2022, subject to the satisfaction of customary closing conditions.

The proceeds of the Offering will be used for (i) the acquisition of tutoring centers for foreign languages ​​other than English for Gaokao, as well as schools and tutoring centers abroad; (ii) research and development of non-English foreign language related courses for Gaokao, and expansion of non-English foreign language operation center for Gaokao; (iii) acquisitions of tutoring centers for language training; (iv) recruitment and retention of teachers and supervisory staff; and (v) working capital and other general business needs.

The Offer is made on the basis of a firm commitment. Network 1 Financial Securities, Inc. is acting as the sole underwriter and bookrunner for the Offering. Hunter Taubman Fischer & Li LLC is acting as US counsel to the Company, and Sichenzia Ross Ference LLP is acting as US counsel to Network 1 Financial Securities, Inc. in connection with the Offer.

A registration statement on Form F-1 relating to the offering has been filed with the United States Securities and Exchange Commission (“SEC”) (File Number: 333-255891) and has been declared effective by the SEC on June 21, 2022. The offering is being made only by means of a prospectus, forming part of the registration statement. Copies of the prospectus relating to the Offer may be obtained from Network 1 Financial Securities, Inc., 2 Bridge Avenue, Suite 241, Red Bank, NJ 07701, Attention Karen (Huiyun) Mu, by e-mail at kmu@netw1.com, or by calling +1 (800)-886-7007. In addition, copies of the prospectus relating to the Offer may be obtained through the SEC’s website at www.sec.gov.

Before investing, you should read the prospectus and other documents the Company has filed or will file with the SEC for more information about the Company and the Offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities of the Company, and there will be no offer, solicitation or sale of any of the securities of the Company in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Golden Sun Education Group Limited

Founded in 1997 and headquartered in Shanghai, China, Golden Sun Education Group Limited is a tutoring service provider in China with over twenty years of experience in providing educational services focused on developing everyone’s strengths and potential. of its students, and the promotion of lifelong skills and an interest in learning. Golden Sun has three tutoring centers, an education company that partners with high schools to provide language lessons to its students, and a logistics company that provides logistics and consulting services. Golden Sun’s tutoring centers focus on different target groups of students by offering different tutoring programs. Regarding foreign language courses, Golden Sun offers English, Spanish, German, French and Japanese courses for students who intend to study abroad, people with looking for a job requiring a certain command of these languages ​​and companies or organizations whose workers must have a certain command of these languages. these languages. For more information, visit the Company’s website at ir.jtyjyjt.com.

Forward-looking statements

Certain the statements contained in this announcement are forward-looking statements, including, but not limited to, the Offer proposed by the Company. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projectinformation about future events that the Company to believes can affect his financial condition, results of operations, business strategy and financial needs, including the expectation that the Offer will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “approaches”, “evaluates”, “believes”, “hopes”, “expects”, “anticipates”, “estimates”, “projects”, “intends”, “plans”, ” will”, “would”, “should”, “could”, “could” or similar expressions. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except to the extent Required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will prove to be correct, and the Company cautions investors that actual results may differ materially from anticipated results and encourages investors to review other factors that may affect its future results in the company’s registration statement and other filings with the SEC.

For more information please contact:

Golden Sun Education Group Limited

Investor Relations Department
Email: ir@cngsun.com

Ascent Investor Relations LLC
Tina Xiao
President
Telephone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com

]]>
Offshore and marine industry facing ‘unprecedented times’: Sembcorp Marine https://premudraja.net/offshore-and-marine-industry-facing-unprecedented-times-sembcorp-marine/ Mon, 20 Jun 2022 09:06:00 +0000 https://premudraja.net/offshore-and-marine-industry-facing-unprecedented-times-sembcorp-marine/ The offshore and marine industry is facing “unprecedented times”, Singapore’s Sembcorp Marine said on Monday as it responded to additional comments and questions from shareholders regarding its proposed merger with restructured Keppel Offshore & Marine. . “The O&M sector has faced a prolonged and severe downturn since 2015, exacerbated by the rapid global transition to […]]]>

The offshore and marine industry is facing “unprecedented times”, Singapore’s Sembcorp Marine said on Monday as it responded to additional comments and questions from shareholders regarding its proposed merger with restructured Keppel Offshore & Marine. .

“The O&M sector has faced a prolonged and severe downturn since 2015, exacerbated by the rapid global transition to renewables and clean energy, as well as significant disruptions during the Covid-19 pandemic,” Sembmarine said.

“As oil prices have risen in recent months and conditions in the O&M sector improve, the long-term outlook for the O&M sector will continue to evolve as part of the energy transition.”

The agreement contemplates an internal restructuring of Sembmarine whereby all shareholders will transfer all of their existing Sembmarine shares to the combined entity on a one-for-one basis. Upon completion of the Sembcorp Marine Scheme, Sembcorp Marine will become a wholly owned subsidiary of the combined entity.

This entity would then merge with the restructured Keppel O&M, which will also eventually become a wholly owned subsidiary of the combined entity.

Reiterating the rationale for the proposed merger, Sembmarine said on Monday that since 2015 it has embarked on a strategic journey of business transformation.

The article continues below the ad

The contractor added that it has also strengthened its core engineering capabilities and aligned its research and development programs in key verticals of offshore renewables, new energy and cleaner O&M solutions.

“Over the past few years, we have also made strategic investments and acquisitions to better position and align our business to meet changing market demands. The proposed combination is a major development in this journey of transformation.

“While the market potential is enormous, the need for a larger and more robust platform to take advantage of these opportunities cannot be overstated. Sembmarine is ready to take a bold step to further increase the depth and extent of its engineering and operational capabilities through the proposed combination.

“[This] offers us the best path forward to play a long-term role in meeting the changing needs of our O&M customers, who themselves need new, cleaner energy solutions.

Sembmarine highlighted a potential immediate benefit of the announced merger – the optimization of its larger and newer yards in Singapore and Brazil for the combined entity’s expanded order book, which should translate into financial and operational benefits. .

“Specifically, the restructured Keppel O&M brings a net order book of S$5.1 billion (US$3.66 billion), which would add to Sembcorp’s net order book of S$1.3 billion. Marine. Gearing for the combined entity on a pro forma basis is also below 22% compared to 33% for Sembmarine on a stand-alone basis,” the company added.

Radically changed fundamentals

Sembmarine said if it were to continue to fly solo “it would have to navigate an even more competitive landscape where many offshore players have sought to consolidate or have been challenged by the radically changed fundamentals of the business and the customer needs”.

Responding to questions from shareholders about why Keppel O&M’s related companies, Keppel Floatel International and Dyna-Mac, are being excluded from the proposed merger, Sembmarine noted that these two contractors were loss-making in 2019 and 2020 and were judged ” incongruous” in relation to the proposed merger. case – as were the legacy platforms from Keppel O&M.

Sembmarine has also sought to explain to its shareholders the rationale for its rights issues in 2020 and last year, describing them as “preventive exercises to strengthen the group’s balance sheet in difficult market conditions”, in particular with the company. posting net losses of S$583. million and S$1.175 billion in the 2020 and 2021 financial years respectively.

“The prolonged Covid-19 disruptions have created short-term challenges for the group and the remaining proceeds from the 2020 rights issue have been deemed insufficient for the group to weather the industry downturn and the stresses and impacts of the supply chain caused by the pandemic.

“Further recapitalization via the 2021 rights issue was essential to further strengthen our balance sheet, address the temporary depletion of working capital and rebuild liquidity to meet projected operational funding needs through the end of 2022.”

The balance of approximately S$720 million from last year’s rights issue is to be used for general corporate purposes, including working capital.

Weighing on global liquidity

“[However]the challenging and competitive global operating environment, coupled with further upward pressure on inflation, is expected to weigh on the group’s overall liquidity,” Sembmarine warned on Monday.

Sembmarine’s extraordinary general shareholders’ meeting to vote on the proposed combination with Keppel O&M is expected to be convened in the fourth quarter of 2022.

]]>
AITX CEO Steve Reinharz releases https://premudraja.net/aitx-ceo-steve-reinharz-releases/ Sat, 18 Jun 2022 14:15:25 +0000 https://premudraja.net/aitx-ceo-steve-reinharz-releases/ ‘Navigationg the New Economy: Works & Automating, Challenges & Opportunities‘ Available for download now Detroit, Michigan, May 19, 2022 (GLOBE NEWSWIRE) — Artificial Intelligence Technology Solutions, Inc., (OTCPK:AITX), announced today that its CEO, Steve Reinharz, has released a new composition that examines how businesses must adapt in the new post-COVID and Great Resignation economy. “Navigating […]]]>

Navigationg the New Economy: Works & Automating, Challenges & Opportunities‘ Available for download now

Detroit, Michigan, May 19, 2022 (GLOBE NEWSWIRE) — Artificial Intelligence Technology Solutions, Inc., (OTCPK:AITX), announced today that its CEO, Steve Reinharz, has released a new composition that examines how businesses must adapt in the new post-COVID and Great Resignation economy.

“Navigating the New Economy: Jobs & Automation, Challenges & Opportunities” is available for free download on several company websites. The book reviews the angst felt by businesses of all sizes due to recent labor market fluctuations and showcases several innovative solutions using AI-powered automation.

“As someone building a technology company that provides solutions, I’ve experienced the misery that almost every business is experiencing today,” said Steve Reinharz, CEO of AITX and author of the book. “Staffing, training and maintaining a strong workforce has become so costly and resource draining that it’s critical for businesses to seek out automation in some form or another to get things done. I’ I wrote this article with the goal of sharing what works for us and helping other business leaders better understand what an RAD the future may look like.

The e-book can be downloaded from https://tinyurl.com/uczv5sdj

“For those who follow AITX and those who want to keep up with the fast and difficult times, this article can help you make some profitable and immediate ROI decisions,” Reinharz concluded.

AITX intends to file for OTCQB listing within 10 days of filing its YE2022 10-K which is expected in May.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release other than statements of historical fact are “forward-looking statements” that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: Artificial Intelligence Technology Solutions to meet its obligations, to provide working capital requirements from operating revenues, to obtain additional financing necessary for any future acquisition, to meet competitive challenges and technological changes, to achieve business objectives and financial, including projections and forecasts, and other risks. Artificial Intelligence Technology Solutions assumes no obligation to update any forward-looking statements and/or confirm the statement(s) with respect to actual results or changes in Artificial Intelligence Technology Solutions’ expectations.

About Artificial Intelligence Technology Solutions (AITX, Financial)
AITX is an innovator in delivering artificial intelligence-based solutions that enable organizations to gain new insights, solve complex challenges, and fuel new business ideas. Through its next-generation robotics product offerings, AITX’s RAD, RAD-M, and RAD-G companies help organizations streamline operations, increase return on investment, and strengthen their business. AITX technology improves the simplicity and economy of patrol and guard services and allows experienced personnel to focus on more strategic tasks. Customers increase the capabilities of existing personnel and gain higher levels of situational awareness, all at significantly reduced cost. AITX solutions are well suited for use in multiple industries such as enterprise, government, transportation, critical infrastructure, education, and healthcare. To learn more, visit www.aitx.ai, stevereinharz.com, www.radvertising security.com and www.radlightmyway.comor follow Steve Reinharz on Twitter @SteveReinharz.

###

Steve Reinharz
949-636-7060
@SteveReinharz

Attachment

Artificial-Intelligence-Techno.png

  • CEO Buys, CFO Buys: Stocks bought by their CEO/CFO.
  • Insider Cluster Purchases: Shares purchased by several officers and directors of the company.
  • Double Buys :: Companies that gurus and insiders are buying
  • Triple Buys: Companies that gurus and insiders buy, and the company buys out.

» Take a free trial of the Premium Membership

]]>
CMS will use the proceeds from the sale of the shares for its working capital https://premudraja.net/cms-will-use-the-proceeds-from-the-sale-of-the-shares-for-its-working-capital/ Fri, 17 Jun 2022 00:42:43 +0000 https://premudraja.net/cms-will-use-the-proceeds-from-the-sale-of-the-shares-for-its-working-capital/ PETALING JAYA: Cahya Mata Sarawak Bhd (CMS) plans to use the bulk of the RM526.6 million proceeds it will receive from the sale of its 25% stake in OM Materials (Sarawak) Sdn Bhd and OM Materials (Samalaju) Sdn Bhd for the working capital and investments. The Kuching-based group plans to allocate 50% or RM263.3m of […]]]>

PETALING JAYA: Cahya Mata Sarawak Bhd (CMS) plans to use the bulk of the RM526.6 million proceeds it will receive from the sale of its 25% stake in OM Materials (Sarawak) Sdn Bhd and OM Materials (Samalaju) Sdn Bhd for the working capital and investments.

The Kuching-based group plans to allocate 50% or RM263.3m of the proceeds to working capital while 25% or RM131.7m will be used for future acquisitions or investments with no indication of any payment special dividend, MIDF Research said in a report yesterday. .

The sale of the holdings to OM Materials (S) Pte Ltd, a wholly owned subsidiary of OM Holdings Ltd, will increase CMS’s net cash to RM627.2 million according to the research house.

“We believe this is a good opportunity for CMS to exit the erratic ferrosilicon and manganese alloy smelting activity and benefit from disposals as commodity prices have remained high even after normalizing. since their peak in the third quarter of 2021 (3Q21).

“The outlook is still bright for CMS with growing demand from cement plants and its strengthened war chest for future investments or acquisitions,” he said.

OM Sarawak sells and processes ferroalloys and ores produced at its ferrosilicon manganese alloy smelter in Sarawak, while OM Samalaju provides development and project management services.

OM Sarawak has benefited from higher ferroalloy and ferrosilicon prices over the past year despite lower production volumes due to Covid-19 related disruptions.

The company posted a net profit of RM116 million in the first quarter of FY2022 (1Q22), which contributes approximately 39% to CMS’s core earnings.

In FY21, OM Sarawak recorded RM350.9 million in revenue, which was 49% of CMS’s base revenue. OM Sarawak recorded losses in fiscal years 2017, 2019 and 20, MIDF Research added.

The RM526.6m price tag included loans worth an estimated RM47.3m to OM Sarawak and OM Samalaju.

Excluding loans, the net consideration for the disposal is RM479.4m, representing RM8.1m or a premium of 1.7% to the valuation of RM471.3m for both entities .

The gain on disposal that will potentially be recognized to CMS is RM147.6 million. The sale should be finalized by 4Q22.

MIDF Research maintained a “buy” call on CMS but reduced its target price to RM1.37 per share (from RM1.62), derived by setting a price earning a multiple of eight times the earnings per share of CMS for FY23 of 17.1 sen.

The research house cut CMS’s base profit forecast for FY23 and FY24 by 15% to RM185.6m and RM195.84m respectively due to expectations of lower associate contribution from CMS. CMS closed down 5.5 sen or 5.24% at 99.5 sen, giving the diversified group a market cap of RM1.07 billion.

]]>
AIP acquires a Belgian aluminum rolling mill https://premudraja.net/aip-acquires-a-belgian-aluminum-rolling-mill/ Wed, 15 Jun 2022 09:21:50 +0000 https://premudraja.net/aip-acquires-a-belgian-aluminum-rolling-mill/ The history of Aluminum Duffel dates back to 1946, when the Feron family founded the aluminum rolling mill. Today they are a European leader in the manufacture of aluminum rolled products for various industries around the world, including architecture and design and ABS (automotive body sheet). The company’s ambition is to be a leading sustainable […]]]>

The history of Aluminum Duffel dates back to 1946, when the Feron family founded the aluminum rolling mill. Today they are a European leader in the manufacture of aluminum rolled products for various industries around the world, including architecture and design and ABS (automotive body sheet). The company’s ambition is to be a leading sustainable rolling mill that offers low carbon aluminum products to its customers.

Geert Vannuffelen, General Manager of the Duffel plant, said: “Today marks an important milestone in the history of our company. We look forward to moving under the new ownership of AIP, who is committed to a sustainable future for our business. We are confident of good cooperation between both parties and are positive about the first steps AIP has taken to further invest in our business, which demonstrates their commitment to reaching the full potential of our plant.

AIP intends to continue to operate Aluminum Duffel with the existing local management team and does not anticipate any disruption to normal business operations, including for customers, suppliers and employees. AIP expects to provide additional capital to support the business in the future so that it can successfully execute its business plan, including for working capital, continued employment and important capital investments.

]]>
It’s Here or Looming: How a Recession Could Affect Your Bonding Program | woodruff sawyer https://premudraja.net/its-here-or-looming-how-a-recession-could-affect-your-bonding-program-woodruff-sawyer/ Mon, 13 Jun 2022 16:46:45 +0000 https://premudraja.net/its-here-or-looming-how-a-recession-could-affect-your-bonding-program-woodruff-sawyer/ Surprisingly and fortunately, both industries have shown resilience in the face of the unknowns caused by the pandemic. Now is the time to plan for what’s to come, even if we don’t know precisely when it will happen. With a few notable exceptions in the ranks of individual surety companies, the 2021 results point to […]]]>

Surprisingly and fortunately, both industries have shown resilience in the face of the unknowns caused by the pandemic. Now is the time to plan for what’s to come, even if we don’t know precisely when it will happen.

With a few notable exceptions in the ranks of individual surety companies, the 2021 results point to overall profitability for the industry. The surety bond market has been consistently profitable since the end of the Great Recession, leading to several new entrants, excess capital, and a looser market with relatively easier terms and conditions.

So far, even COVID-19 has not been able to derail the industry’s good fortune. By almost every measure, 2020 and 2021 have been two of the most successful the industry has seen. In 2022, we continue to see the same themes of abundant competition, capital and capacity in the market. However, all of this can easily change due to current events and broader macroeconomic factors.

As we approach the halfway point of 2022, it’s hard to deny the feeling that we’re in uncharted territory. After all, at one point the S&P 500 was down 20% on the year, mortgage rates came back above 5.0% for the first time since 2011, and inflation in April hit 8, 5%, a 40-year high. As usual, there is a wide variety of opinions on what all the data means and how it should be interpreted as a macroeconomic crystal ball.

Fortunately, you don’t need to accurately predict when a recession will occur in order to position your business for predictable and sustainable surety credit. No matter where we are in the business cycle, there are proven steps you can take to ensure your business will always have the bonding capacity you need to execute your business plan.

Anticipating a tightening of the surety bond market

As noted, the surety industry has remained profitable over the past 15 years, allowing capacity to flow with relatively loose market conditions. At some point, and likely in the aftermath of a recession, the current phase of the surety market cycle will end and underwriting will become more disciplined. Capacity will be harder to find, terms and conditions will be less favorable and prices may even increase.

The continued success of the surety industry also means that there are well-established industry veterans who have never had to navigate a tougher surety market. So how can you recognize a changing market? And what can you do to best insulate your business from this external fatality?

Now consider the bond underwriting factors

The good news is that financially strong, well-managed entrepreneurs can still use their “bondability” to differentiate themselves from less qualified competitors. This becomes even more critical and beneficial in the context of a slow growing or shrinking economy where surety credit may be less available.

As such, now is the time to develop a better understanding of surety underwriting qualifications and how to incorporate them into your business planning process.

Credit analysis

As underwriting discipline intensifies, there will be more emphasis on underwriting fundamentals, which will take the form of:

  • Understand how companies manage liquidity, cash flow and leverage
  • Understand that working capital is an important quantitative measure of liquidity; sureties will focus on quality current assets, including accounts receivable and under-invoicing
  • Work-in-progress (WIP) schedules are being scrutinized more closely, with more attention paid to indicators such as profit loss and under/overcharging
  • Sureties assessing break-even points from work-in-progress and overhead analysis and looking to see if contractors have planned overhead reductions to help absorb potential revenue and profit reductions
  • Search for adequate compensation packages to include affiliates, LLCs and individual owners.

Management planning and forecasting

Underwriters will expect to see management plans and forecast models that reflect uncertainties and options for various future market conditions. Expect your guarantor to ask for revenue, profit, and arrears forecasts.

Succession and continuity planning will continue to be an important underwriting consideration, particularly for those entering into long-term contracts.

Management of subcontractor and supplier risks

Guarantors will want a deeper understanding of your subcontractors’ and vendors’ qualification processes, both before work is awarded and on an ongoing basis. They will want companies to consider many factors, which resemble their own underwriting considerations:

  • Strong relationships built from a track record of past performance
  • In-depth knowledge of the client’s organizational capabilities and other commitments, particularly as they relate to specific project personnel
  • Credit analysis based on credible financial information (e.g. financial statements prepared by CPA, solid references, access to liquidity)
  • Bonding of selected subcontractors, especially those on the critical path.

Manage your surety relationship

As economic and market conditions continue to change, you need to take an active approach to your bonding relationship. We recommend that you extend your planning process to this essential credit provider in the following ways:

Establish a relationship with the surety. Contact your broker and allow the surety to make an informed decision. In the absence of information, sureties will err on the side of caution.

Character matters. Be transparent and open with your advisors. Now is when your creditors will test and assess your leadership and integrity.

Ask a professional bond producer to be your partner. Not all sureties will react in the same way to a slowing or hardening of the market. Make sure your business plan is consistent with your surety’s underwriting philosophy and approach to market conditions.

Develop a business plan for the current economic environment. A plan that outlines your strategic goals supported by financial resources and all key operational areas of the business will help guide the bonding discussion. Your surety program shouldn’t dictate your business plan—it should Support your business plan.

Assess your banking relationship. Available liquidity is always needed. If an economic downturn is affecting your cash flow, make sure you have a relationship with a construction banker, not just a bank.

Communicate financial progress throughout the year in a timely manner. Your ability to produce credible interim financial information is paramount. Disseminating accurate WIP information is essential, but you also need to figure out how best to use it as an internal management tool.

Monitor the quantity and quality of your cash and practice prudent debt management. Construction companies go bankrupt when they run out of cash. Manage cash flow, reduce secondary assets and review debt and debt service ratios. Increased revenue will not solve a liquidity problem, and sureties will be reluctant to increase support if it is not supported by their basic financial metrics.

Look forward and up

The robust market of recent years has offered construction companies the opportunity to be more selective in their projects while benefiting from unprecedented access to surety credit. Companies have been able to focus on the types of jobs they do best, while building strong internal balance sheets, relationships and processes during this time of economic expansion.

The discipline, financial resources and tools developed during the good times will serve the successful building organization well in the next recession. The ability of a contractor and their broker to effectively communicate this information to a surety is critical to laying the foundation for a sustainable surety program.

None of us can know exactly what the future holds. However, brokers, sureties, and other professional advisors can help entrepreneurs prepare for several scenarios, helping them emerge stronger from whatever happens.

]]>