$PBA (5041.MY)$ PBA RM1 BILLION REVENUE: [Share Link: PBA an...
PBA RM1 BILLION REVENUE: PBA and the RM1 Billion Question: is it achievable by 2030?
![$PBA (5041.MY)$ PBA RM1 BILLION REVENUE: [Share Link: PBA and the RM1 Billion Question: is it achievable by 2030?] In 2023, Penang’s total manufacturing investm...](https://sgsnsimg.moomoo.com/sns_client_feed/103682559/20241103/1730635942506-random7615-103682559-android-org.jpeg/big?area=104&is_public=true)
In 2023, Penang’s total manufacturing investment amounted to RM63.4bil, constituting 42% of Malaysia’s total. The total manufacturing foreign direct investment (FDI) alone was RM60.1bil, more than the total it received from 2013 to 2020 combined.
Given this, it’s not surprising that PBA has projected water consumption could reach 1,532 million litres per day (MLD) by 2030.
Out of curiosity, I found myself wondering what PBA's revenue might look like in 2030.
Based on available data, the average revenue per cubic meter (1,000 litres) of water sold was RM1.18 in 2023. However, there was a tariff hike in 2024 for domestic users, which was reflected in 2Q24. Revenue from water sales was about RM137mil in 2Q24; annualizing this would mean RM546mil. The average water consumption in the first half of 2024 was 887 MLD. Based on this, the average revenue per 1,000 litres is RM1.69.
Using that RM1.69 rate for the 1,532 MLD in 2030 would imply annual water sales of RM945 million. However, there will be water tariff adjustments before 2030 for both the domestic and non-domestic sectors, as water operators are now able to adjust tariffs every 3 years from when they were last implemented. PBA adjusted its non-domestic tariff in 2023 and its domestic tariff in 2024.
If water consumption reaches 1,532 MLD in 2030, along with additional tariff hikes implemented before then, could PBA's revenue surpass RM1 billion?
Out of curiosity, I found myself wondering what PBA's revenue might look like in 2030.
Based on available data, the average revenue per cubic meter (1,000 litres) of water sold was RM1.18 in 2023. However, there was a tariff hike in 2024 for domestic users, which was reflected in 2Q24. Revenue from water sales was about RM137mil in 2Q24; annualizing this would mean RM546mil. The average water consumption in the first half of 2024 was 887 MLD. Based on this, the average revenue per 1,000 litres is RM1.69.
Using that RM1.69 rate for the 1,532 MLD in 2030 would imply annual water sales of RM945 million. However, there will be water tariff adjustments before 2030 for both the domestic and non-domestic sectors, as water operators are now able to adjust tariffs every 3 years from when they were last implemented. PBA adjusted its non-domestic tariff in 2023 and its domestic tariff in 2024.
If water consumption reaches 1,532 MLD in 2030, along with additional tariff hikes implemented before then, could PBA's revenue surpass RM1 billion?
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sunwukon9 OP : Imagine, even if cost of sales goes up by 30% in 6 yrs time. At RM1bn revenue, GP will be in excess of RM600m. Net profit could range from RM300m-400m. Bottomline/net profit growth of ~20%+ p.a.
sunwukon9 OP : Water may be a commodity that you don't think about when it comes out of the tap, but water is essential to life.
Water is a key input in everything from food and beverages to the cleaning of semiconductor wafers and hydraulic fracturing (fracking). The sourcing, purification, and distribution of water is big business around the world, and the threat of climate change makes that more true now than ever.
sunwukon9 OP : PENANG: THE SILICON VALLEY OF THE EAST
https://www.semi.org/en/sea-newsletter-penang-the-silicon-valley-of-the-east
#PBA