Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
0.27 in March 2026 was the last window of opportunity to exit previously. Stay on the sideline. Do not hold any position and can sleep well even after drinking coffee all day :)
rolling in the deep, Eddy. Sukuk over Sukuk if you will. And in this case, Sukuk 1 is in trouble (FSCR < 1.25) and Ptrans has to use Sukuk 2 to redeem Sukuk 1 or face default risk. FSCR in FY2025 was at 0.90 which is lower than 1.25. Definition of FSCR: The FSCR is a covenant imposed by licensed banks (for both Sukuk Murabahah and Sukuk Wakalah) and shall not at any time be less than 1.25 times.
In the financial year ended 31 December 2025, the Company established a Sukuk Wakalah Programme with a total nominal value up to RM1.5 billion, which is structured based on theShariah Principle of Wakalah Bi Al-Istithmar, with a perpetual tenure. In the same financial year, the Company had issued the first tranche unrated Sukuk in nominal value totalling RM700 million, with a tenure of nine (9) years from the date of the first issuance of the Sukuk.The purposes of the Sukuk Wakalah (2) is meant for full redemption of the Sukuk Murabahah, Sukuk Wakalah (1) and settlement of term loan and revolving credit during the financial year.
The proceeds from Sukuk Wakalah Programme 2 will be applied to refinance existing borrowings (Sukuk Wakalah Programme 1) or Shariah-compliant financings, fund capital expenditure, or defray related fees, costs and expenses. That is why it is important to monitor the Finance Service Cover Ratio (FSCR) when borrowings level high in relation to available cash and company profitability.
Ptrans became smarter, daniel. wakalah 1 uses ebitda and its a problem as Ptrans is not earning enough. wakalah 2 uses cumulative cash flow instead of ebitda. Moments later.... calculated FSCR jumped higher than 1.25. Lol, no pun intended. you can have a look at it in page 201 of the annual report. Just be mindful with Ptrans capitalised interest.
Nowadays, we, Ikan Bilis investors are getting smarter too. In any case, Institutional Funds will be the first to react and adverse share price movement will trigger close monitoring by investors.
Mr. Market has indeed priced it accordingly for the capitalised interest part. The next question is whether Mr. Market will also price in the risk of receivables being impaired given that the same 3 customers in FY2024 were causing the spike in FY2025; higher concentration. Expecting at least another 2 cents down?
