Unison Enviro Private Limited (MGL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Mahanagar Gas Limited Conference Call hosted by YES Securities. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Tiwari from YES Securities. Thank you, and over to you, sir.

Thank you, [ Darwin ]. Good evening, ladies and gentlemen. On behalf of YES Securities, I welcome everyone to this conference call with Mahanagar Gas Limited to discuss the latest acquisition of UEPL [indiscernible] by the company. We are pleased to have with us Mr. Ashu Shinghal, Managing Director; Mr. Rajesh Patel, Chief Financial Officer; and Mr. Rajesh Wagle, Senior Vice President, Marketing. I would also like to take the opportunity to thank the management for giving us the opportunity to host this call and also finding out time to address the investor queries. I will now hand over the floor to [indiscernible] for taking the proceedings further. Over to you, sir.

Yes. Very good afternoon, Nitin and all the investors and analysts connected to the call. Before we start taking questions and answers, let me just give you a brief about the acquisition. So it gives me immense pleasure to inform you all that last Friday, that is 3rd March, we have signed -- MGL has signed a share purchase agreement with Unison Enviro Private Limited, which is an existing shareholder of Ashoka Buildcon and an investment fund manager of Morgan Stanley. For total acquisition of 100% stake in UEPL will be taken over by Mahanagar Gas. This acquisition will enable MGL to expand to newer geographical areas in Maharashtra, which is Ratnagiri is 1GA and Latur and Osmanabad is the other 2 -- other GA and in Karnataka also, which is Chitradurga and Davangere, so total 3 GAs are being acquired with a total cost of acquisition at INR 531 crores. This will provide new avenues for long-term growth for MGL, and it is a good mix for our overall growth in volumes and both top line and bottom line. The transaction is of strategic importance to us. And it's in our footprint for the company will scale future business development activities across larger network and customer base. It is great [indiscernible] integrating resources and diverse synergies from this acquisition. And with our deep domain knowledge and strategies for long-term growth and capital workforce, well equipped to seize these opportunities. MGL is also strategically poised to leverage new opportunities in CGD sector as it continues to expand in areas of operation while providing high-quality service to its customers. We will expand work into beyond Maharashtra for the first time and offer quality services with safety -- with broader customer base. I would also like to inform you that this deal is incumbent upon PNGRB clearance there is after completion of 5 years from the [indiscernible] bidding that is September '23, 5 years will be completed. Post that PNGRB approval will be given, and then we will take 100% shares in one go. So that is how the deal is. The MWP targets are not very steep. So we are very comfortable in seeing that something of them will be achieved during the [indiscernible] basic price. So with this brief background, I will open the floor for questions.

[Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities.

Thank you very much for the opportunity sir, and thank you for having the call to explain the deal. 2 questions from my side. One is that what kind of additional investments do you envisage on the 5 districts or the 3 GAs over the next 3 to 5 years from what we can gather about INR 230 crores to INR 240 crores that's been invested on the books of the company as of now in the first 3 years. So given that there are 5 districts [indiscernible] in the area that you could see is fairly large. Is it fair to assume at least INR 700 crores to INR 800 crores additional investment would be needed over the next 3 to 4 years or meaningful volumes to come from all these areas combined?

See, currently, we are expecting investments in the round of maybe INR 100 crores per year. Depending on the growth potential, we may scale it up or scale it down. But tentatively, we expect that around INR 100 crores, INR 150 crores per year will be [indiscernible] investment. This will be more clear once we take over and see how the book potential is there, then we will take a final call on.

Okay. And the second question was just in terms of the volume potential. Obviously, I'm not going to ask you to put a number to it, if you're not going to share. But can we get a sense of the volume mix from some of these areas? Are these primarily domestic-oriented CGDs or domestic CNG? Or is there a significant industrial and commercial potential as well in any of these deals?

More than 90% volumes are going into CNG only. Balance is through industry and commercial in the Ratnagiri district and some very small in volume in the domestic CNG. So we can say 90% is going to CNG.

And that is the mix that you expect to remain in terms of the potential as well for the next 3 to 5 years? Is that how you see the volumes growing also?

Yes. In future also, we expect that CNG will play a major part because these deals are not very densely populated, so to take into account now that we can do cost to serve and also the returns on domestic CNG connections and also MWP. And others -- so we will take a call on that once we get the ownership of the company, but it seems that majority will -- definitely will continue to come from CNG. And also our focus is to be to bring as many industrial and commercial also on our firm because industrial MIDC areas are there in these places. So we will do a detailed, I mean, analysis before taking a final call on that year-on-year basis.

Great. Sir, one last question, if I may. How is the funding for this INR 530 crores going to be done? Or rather, are we looking to sort of payout straight from our internal resources or can we look at some sort of debt as well to sort of fund the deal?

This existing INR 530 crores once -- this deal goes through will be through internal accruals because we have tariff reserves right now. So we'll utilize that. However, further funding within Unison, we'll be taking call year-on-year basis, based on either debt or equity exclusion. But INR 530 crores one specifically, if we have to say, we will be initially doing from our own treasury status.

[Operator Instructions] The next question is from the line of S. Ramesh from Nirmal Bang Equities.

Thank you, and good evening, and congratulations on this M&A transaction. So can you give us some details on the balance sheet of Unison Enviro Private Limited as of March '22, what is -- because we have the net worth and turnover and the loss. So if you can give us some idea about the total assets and liabilities. And if any debt is there on the books that will be useful? And secondly, to get a sense in terms of the volumes. What does that mean of volumes they have done in March '22 because I understand they have already started operations in some of the CNG stations. So either as of first half this year, [indiscernible] some sense of the volumes they are doing and would the volumes, you say, comparable to the kind of potential you have in the Raigarh district, which are already developing. So if you can just give some thoughts on these details will be grateful?

Yes. Mr. Ramesh, volume, if we look at March '22 was around [ 60,000 ] cubic meter, but if you look at the half year, it was around 1 lakh cubic meter per day CMD.

I missed the March number. March '22, can you repeat again?

March '22 was around 60,000 standard cubic meter per day. On September, this number was 1 lakh -- 0.1 MMSCMD. When it comes to balance sheet, equity of around INR 135 crores, okay. There is an accumulated loss of around INR 52 crores. Net -- net worth is around INR 83 crores, INR 84 crores as of March '22 and as of March '22, their borrowing was in the range of around INR 112 crores.

Okay. So it's INR 195 crore balance sheet. So yes, in terms of the potential volumes either somewhere in the ballpark region or what do you expect in Raigarh where you've indicated a number of 0.5, 0.6 we've witnessed, I'm saying collectively, all the 3 GAs put together, is that something we can go by to estimate the future potential?

So I think Raigarh, we have given around 0.65 or so. However, all these 3 areas put together, we have estimates of potential around 1 to 1.1 MMSCMD.

So this is likely [indiscernible] in a horizon of maybe 7 to 8 years.

Yes. That's under it. So if you're looking at INR 100 crores CapEx and your development plan, but as the time line given by the PNGRB in terms of the authorization letter. So once you take over, would you be able to complete the minimum work within that time line, would you ask for extension? And is there any cost escalation you expect compared to whatever has been already invested? And what is the sense in terms of the final figure you expect to incur as an aggregate CapEx on the GAs. What is the kind of sense you have now? Or would you be able to keep it as in the ballpark you've already shared for your MGL expansion?

Just to give you an update on their MWP, with respect to Ratnagiri their small number of inch kilometers, which is 1,800 inch kilometers for Ratnagiri is okay. And domestic connection MWP is around 20,000 -- 19,000 odd okay? That is their MWP with respect to Ratnagiri. With respect to Latur and Osmanabad, their MWP commitment is just 10-inch kilometer and [ PNG ] connection is around 10,000, okay? And with respect to Chitradurga and Davangere, their PNG connection is 1 lakh odd, okay, and inch kilometer is around 75-inch kilometers. Additionally, since this Chitradurga, Davangere and Latur, Osmanabad, were in [indiscernible] CNG station commitment of 42 in Chitradurga, Davangere and 40 station in Latur, Osmanabad. Out of 42, they have already done 11 in Chitradurga, Davangere. And out of Latur, Osmanabad, 30, they have already done 14 as of December, okay? And this MWP period is up to September 2026 with an extension in case of Chitradurga, Davangere around 160 days because of COVID. And in the case of Latur, Osmanabad around 250 days of extension is there. So practically, it is around '27 or '28, these 2 will have their MWP and time line. So I think we have a reasonable time and very reasonably small numbers as far as [indiscernible] is concerned and CNG stations are concerned, okay.

[Operator Instructions] Ladies and gentlemen, we have reconnected with the management. [Operator Instructions] The next question is from the line of Sabri Hazarika from Emkay Global.

Just wanted to know, you'd be merging this entity with your stand-alone business, right? Or would you keep it as a subsidiary?

We will take a call on that. Right now, we want to keep it as a subsidiary, but definitely, it depends on so many other factors like tax efficiencies and other synergies. So most likely, we'll keep it as a subsidiary as of now.

Okay. But there is no restriction of like merging it with respect to say PNGRB permission or anything of that sort?

No, I don't think so there is any such because MGL will be 100% owner of UEPL, so it is our choice as a [indiscernible] to whether offtake on 2 different companies or merge it.

Okay. Secondly, a small question. I think you mentioned how much of the Ratnagiri...

There are 2 lines, which are on and...

Yes, I think some other line is connecting.

Can you just check, Nitin? Okay. Now continue. Sabri, you can continue now.

Yes. So right now, only Ratnagiri is operational or all the 3 GAs are operational?

All 3 are operational.

All 3 of them are operational, right, okay. And Ratnagiri MWP inch kilometer you mentioned, what was the number?

1,800 inch kilometers.

1,800, whereas Latur was like around, 10...

Latur, Osmanabad is hardly 10-inch kilometer.

Okay. So a big difference between the 2, right? 1,800 versus 10?

Yes.

Okay. And what about the Ratnagiri CNG MWP?

There are no CNG target as such in that round.

[indiscernible] whereas the MWP was set by the regulator. [indiscernible], domestic PNG or MWP which was a function of the population of the GA [indiscernible] square kilometers GAs whereas the other 2 GAs about on the 9th round of bidding [indiscernible]. The MWP was [indiscernible] but successfully bid for Latur, Osmanabad and Chitradurga, Davangere, So that's why we are seeing relatively lower numbers in these 2 years.

The next question is from the line of Pinakin Parekh from JPMorgan.

Sir, my first question is just trying to understand how was the acquisition price arrived at? Was it an asset based, the amount of money that is invested in and a multiple of that, what is their IRR that this particular price will lead to? Just trying to understand how maybe overpay, underpay versus what the asset is?

Mainly the valuation was derived based on projected cash flows and the DCS and other multiples, okay? So this is mainly projected cash flows and the discounted -- So IRR is also indirectly taken care of in that.

Sure. And sir, I mean cumulative investment additionally required is only INR 100 crores or this number will increase over the next 7 years?

No, this number will increase. We are saying we may need around additional INR 1,000 crores over and above what is already incurred. Already incurred is around INR 270 crores. But this INR 1000 crores will go in the next 7 to 10 years. That is what we are saying. However, we will do a detailed survey of the area. We'll check out what are the pockets of potential and then arrive at the exact amount. This is a very, very primary assessment, which I'm giving you the numbers.

It will all depend on the potential there and what are the growth opportunities, how many industries sign, how many vehicles convert. So every year, we will take into account the company's financial position as well as the profitability and the potential and the growth, then we will take the call on CapEx.

Understood. And sir, my last question is now given that PNGRB had auction multiple GAs, many of them may not be able to successfully execute the MWPs or maybe looking to exit. For Mahanagar Gas, is this a start of more acquisitions going forward? Just trying to understand, will the company be open to levering up the balance sheet to buy if more GAs are available and what it leaves attractive valuations? Or is this a one-off acquisition, and we may not do further acquisitions going forward?

See, it's a strategic call. I mean, as you have rightly said that we have been bidding also in some of the rounds. Now our balance sheet is healthy. We don't have any debt. So this is the start of the acquisition. We will keep our eyes and ears open to see what are the opportunities which are available on the block in the market and keep on evaluating them, scouting them for new opportunities also. We don't want to say that this is the end of it, but we can say this is the beginning of a new journey for MGL.

[Operator Instructions] The next question is from the line of Maulik Patel from Equirus.

A couple of questions. You mentioned that the total opportunity in the 3 GAs around 1 MMSCMD and so what kind of volumes you are looking to add or achieve in, let's say, in the first year of full control probably in FY '25. Can we make this [indiscernible] done in the first half of FY '23 to around 0.2 or 0.3, what is your assessment?

If you look at the current volumes, it is around 1 lakh MMSCMD, okay? So we expect that this year, that is '22-'23, maybe a little more than 1 lakh MMSCMD would be an average sale for the company. And if we are able to roll out the further infrastructure and CNG station, I think the ramp-up should be at least 1.5x to 2x next year, okay? That is what our expectation is. But it all depends on how fast we are able to roll out further CNG stations and the pipeline network and able to connect the industrial and commercial potential available...

Sir, you mentioned that 90% volume is CNG, right?

Yes.

Are there any large industrial customers in this 3 GAs?

[indiscernible] about 400-odd industries in those MIDC areas. So then if it's very large, it typically goes through the transition of [indiscernible]. CGD typically only will get 50,000 [indiscernible] below customers. Again, how this will evolve over time, we will have to see because [indiscernible] LNG being where they are. Natural gas is not really competitive with solid fuel and other heavy liquid fuels being used in industries. But with prices now softening and more and more companies going towards [indiscernible] some industrial volume but not as prominent as CNG.

Sir, just coming to the earlier questions, that we will get in FY '25 we may get at least around 0.25 and then the CMD average volume from the 3 GAs?

Possibility exists, okay? And it can be more also, a little less also, okay.

But in '25, I think we can touch that number, slightly more than that also.

[Operator Instructions] The next question is from the line of Ramesh -- sorry, it's S. Ramesh from Nirmal Bang Equities.

Yes. So in terms of the ramp-up you expect in FY '24, when you say 1.5x to 2x, is -- are you talking about the incremental volumes on the base of 0.1 MMSCMD, meaning it will be 0.25 by the end of FY '24? Or is it the target -- are you -- sorry?

Cumulative volume I'm talking about. Say, if this year, already is a little more than 1 lakh and next year, we can see around 1.5 or a little more than that.

Okay. Fair enough. So in terms of the vehicle numbers. So when you look at this potential, 90%, you're talking about almost, let's say, 1 million cubic meters per day, it was about -- roughly about 3.3 lakh needs of the GAs, so what is the kind of fleet size in terms of the vehicle population there? I mean is it going to be more of autorickshaws and [indiscernible] or you have a blend of cars, autorickshaws and in case we have done that kind of analysis that's available that will be useful.

These CNG stations are mainly on the highways. We'll be getting a lot of transit passenger cars and goods vehicles also. Whether there are small cities or towns like Ratnagiri or Latur itself, et cetera, yes, we do have a small amount of autorickshaws, et cetera also, but primarily, the volume will come from commercial goods vehicles and passenger cars. We are also targeting some of the state transport under technical [indiscernible] MSRTC buses which will be operating from those GAs, et cetera. So to get them to use CNG.

And just to add to what Wagle has said is that we -- there are several GAs which are getting ready in between. So the bigger highway is right from Mumbai to Bangalore to Goa or to Hyderabad side. They will be getting connected as other companies who is also developing CGD will come online because we have seen Mumbai to Ahmedabad is through, Mumbai to Pune and Aurangabad is almost through. Similarly, other highways will be getting connected and all GAs if they develop some CNG stations, the connectivity will be through. That will prompt other users and long distance NCVs also to convert into CNG.

So Ramesh, just to give you an update, Ratnagiri has almost 3 highways passing through it, National Highway 66 which is Mumbai, Goa; National Highway 166, Ratnagiri to Solapur; 166E, which is Guhagar, Vijayapura, okay. And Latur, Osmanabad also has Mumbai, Hyderabad; Solapur, Aurangabad; Nanded, Tuljapur. These are passing through Latur, Osmanabad area. When it comes to Chitradurga, Davangere, you have Mumbai, Bengaluru; then Chitradurga, Shimoga; Vijayapura, Chitradurga. These are the 2 to 3 highways passing through each of these geographical area, which adds to the floating potential of the highways in these areas, apart from the local vehicle population.

Understood. So basically, it doesn't necessarily depend on the fleet size in an area and there's a lot of fungibility. It gives you personally a little more visibility and traction in terms of brand. So is there any sense in terms of the potential additional growth even get from new vehicle sales in these regions. It will also possibly give you more driven mileage in the highway. Is that [indiscernible] you expect in future in terms of your growth plan?

New vehicle sales, others will be actually depends on the areas. If you talk about the national capital or Mumbai, the sales numbers are very high. As we discussed earlier, the traffic will be a mix of both local some vehicles, some autorickshaws, but mainly the floating traffic, which is passing through the highways. So that will be the main areas where the same should be -- which is expected to come and accrue for the customers.

But as we are observing, new commercial vehicles getting added in our GA. Similar trend is also there in Ratnagiri and some of -- Raigarh also, we have this...

Raigarh is similar. So what we have seen as soon as we open a CNG station in Raigarh, the sales picked up to 3,000 immediately in few days and then 6,000 and more. So what we are seeing is that if the price differential is conducive between CNG, petrol and diesel, that we expect that numbers to grow faster.

The next question is from the line of Varatharajan Sivasankaran from Antique Limited.

So currently, when you are operating, how much of, like -- are you using any LNG [indiscernible]...

We have one LNG station in Ratnagiri and that LNG station is being operated to service CNG...

Industrial and commercial. They also have this LCNG facility. So you can practically cater to vehicles also through that LCNG. Around 8,000 to 8,000-odd SCMD a day. They are catering to industrial and commercial establishments [indiscernible] industrial estate.

So all the other areas as well as the outlets are serviced through pipeline capability from trunk pipeline?

Either trunk pipeline or [indiscernible] vehicle-mounted...

I think you missed out on the MWP, the online GAs, any number that you would have stated earlier. I think I missed it, can you repeat it please.

See, I think Ratnagiri has 2 online stations. Chitradurga also could be 2. I'm not too sure about the number. Davangere certainly has one online station. So rest of the station, they are catering through -- right now through LCV mounted caskets.

Okay. And minimum work programs, how many outlets are totally [indiscernible] especially?

CNG station, minimum work program is only for Chitradurga, Davangere and Latur, Osmanabad.

He is asking about MWP of around...

Latur, Osmanabad also. So Chitradurga, Davangere CNG station number is 42, out of which 11 are already done. And Latur, Osmanabad number is 30 as per MWP and 14 are already done. And time available is up to almost 2027, '28 with the COVID-related extension.

[Operator Instructions] The next question is from the line of Lokesh Manik from Vallum Capital.

The first question was on the acquisition. So this you have selected from -- is this the first acquisition that has opportunity that has come in the market that you have stacked or you have been evaluating opportunities for some time now. Just to get a sense on the industry scenario right now?

What is the question?

So the acquisition that you have made, have you evaluated further more opportunities in the past and you have selected this? Or this is the first one that has come in the market?

We have been always assessing the market who are open for this. So in terms of actual evaluation and all that, this is the first one, but we have been constantly checking if there are any opportunities available since almost last 1, 1.5 years.

So only would be there any ballpark number that you would have come across, but may not have been liable to...

In this call, we can't discuss these numbers, okay.

Sir, and the second question was on -- so most of the GAs, as I understand, will cater to the -- on the highway side of the GAs and these would mainly cater to commercial vehicles, so your average CNG station volume is around 6,000 SCMD. So with commercial vehicles, what can this go up to where the commercial vehicle proportion is higher in the CNG station?

I don't know whether I've understood your question properly. These 3 new GAs, we have not said that it is 6,000 KGs every day sale, for a day sale.

No, I understand that. But with commercial vehicles consume more than passenger vehicles. So just to get a sense of how much can CNG be per station, if you [indiscernible] dominated by commercial vehicles?

Look, if you have -- you're talking about these 3 new GAs or you talking about MGL's existing?

No, about the new GAs. In your experience, I'm just asking overall in your experience. If you had a CNG station there which is catering mainly to commercial vehicles?

If the number of commercial vehicles are good enough, so per capita bill is very high. It reaches from 10 to 12 kg, which a small commercial vehicle will take in a fill [indiscernible] 70 kg, 80 kg, which are 18-ton or 16-ton of multi. So I mean even a few hundred commercial vehicles come, you can easily fill 4,000, 5,000 kgs or more.

The next question is from the line of Keval Shah from Banyan Tree Advisors.

So could you repeat the number of CNG stations, UEPL's, right, you said 14 and 11? right?

18 in Ratnagiri, total 43 as of today.

Okay. And number of PNG connections in all the 3 GAs?

Number of PNG connections...

7,000 in Ratnagiri, about 700 in Latur, Osmanabad and about 1,700 in Chitradurga, Davangere.

In Ratnagiri, you said?

7,000. Ratnagiri is the oldest area. These 2 areas are new, and there was a COVID impact also. So if you look at, they got this in 2018, which had maybe 1, 1.5 years COVID impact.

Mr. Shah, are you on the line? Your line is unmuted, you may proceed. As there is no response from the current participant, we will move to the next participant. The next question is from the line of Niharika from Aequitas Investment.

So my question is regarding the [indiscernible] lot of around INR 112 [indiscernible] what are you planning to do with that? Are we planning to carry [indiscernible]...

It's an independent entity. And as we said earlier, it will -- we will be initially keeping it as a subsidiary. The loans will be carried in the books of UEPL.

Okay. And regarding...

Some restructuring or some renegotiation based on the balance sheet and the backup of MGL. However, we'll continue with the loan. And then we'll take a call after some time.

And you had CapEx of around INR 100 crores earlier is what we are presenting as of now? So just to get a sense that -- I understand that majority of the volume is coming from CNG. So this INR 100 crores [indiscernible]...

Majority in the infrastructure related to CNG only, but there will be some MWP commitments also in domestic PNG connections. So we will try to complete whatever is required as per the need based on MWP targets as well as CNG.

We will take the last question from the line of Girish Shetty from Banyan Tree Advisors.

Sir, just one question. You had mentioned about the CapEx, right, additional CapEx [indiscernible] has any impact on your dividend payout going forward?

No, no. As far as MGL is concerned, there should not be any impact on our dividend payout because if you look at our treasury surplus and profitability, we have been -- we will be able to maintain the dividend and would be able to even give whatever normal growth you have seen in the past.

Okay. And sir, one last question on UEPL. So how will it impact MGL margins -- overall margins going forward because of extra expenses as an -- apart from CapEx expenses, overhead expenses that might get added on to [indiscernible], how should we look at margins going forward for MGL now?

I think initially, when you have any CGD, so if you look at even UEPL, we are in the initial format [indiscernible], okay. So till you achieve a reasonable level of volume, the profitability margins will be lower in the initial year because we are not able to absorb all overheads. Once the corporate overheads are getting loaded over larger volumes, we should be able to maintain a good margin, maybe a little less than MGL margin initially. But going forward, we'll have to see how it moves. There could be some pressure because of -- initially, we may do this through non-online station and all that. But in the long run, we should be able to see good margins, and we should be able to, but it all depends on kind of load per station, et cetera, because Mumbai is a highly dense area, and you have a very good potential within a smaller geography. Whereas these areas, including like Raigarh of ours and these areas are more spread out. So there could be a little difference in margins we are able to make in these areas. But of course, since these are all B class or C class cities, some of the overheads and like rental, et cetera, could be also cheaper. So we'll have to see how it works out. But initially, it will have some. Overall, if you see a consolidated, there will be some impact on -- adverse impact on overall profitability and going forward, it will improve.

Like there is an X amount, say, like a #100 last year on the other expenses of UEPL. So have you already identified that can that 100 increase or decrease, anything of that sort that we -- just want to trend on that?

See, if you look at last year, they had hardly any volume. So I think those are not representative numbers. But if you look at probably this half year, there is an improvement, and there is overall around INR 7.5, INR 8 kind of EBITDA for [ SCM ] we are able to see here.

Okay. On retail, is it [indiscernible] close to what MGL also does?

This is [indiscernible] UEPL I'm talking about. Yes.

Thank you. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you so much for joining in. We are also excited, as you are, in taking the company forward. And we hope that this transition is smooth and it impacts overall profitability and gives growth revenues to MGL. And you all should view it and I'm sure your analysis will also say that the share price, which has gone up from the end of Friday INR 909 to almost crossing INR 1,000 in 2, 3 days. So the signal is positive from the market. And we would like to take it forward from here and take a smooth transitioning and try to give a growth plan to the new company as well as open up new potential for MGL. Thank you so much for joining in.

On behalf of YES Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Thank you.