OWG – ONLY WORLD GROUP

For newbies over here, I would like to share a little bit on the historical progress on OWG.

OWG secure a RM180 million Komtar revitalization job in return they secure a 45 year lease, with the option to extend another 15 years. More information can be obtain by clicking this link https://www.thestar.com.my/business/business-news/2016/01/20/owg-expects-to-finish-rm180mil-komtar-revitalisation-project-by-year-end/

OWG was riding on the uptrend when it go listed, then it reach to a peak 3.20 and all the way drop since Dec 2015 till now. OWG go as low as 0.86 at 9 April 2018.

What cause the drop of OWG?

Below news release on 13 Jan 2017, since this news came out, it tank all the way down and keep on finding the support.

Total revenue and pre-tax profit for the financial year ended June 30, 2016, will be affected due to temporary closure of its 14 outlets at First World Hotel, Genting Highlands. 

The outlets are temporarily closed due to the on-going redevelopment and transformation of Resorts World Genting. 
 

In a filing with Bursa Malaysia on Friday, the investment holding company said the outlets, comprising food service, family attraction and retail stores contributed between 39% and 59% to its total revenue and pre-tax profit. 

More information can be obtain by clicking below linkage.

https://www.thestar.com.my/business/business-news/2017/01/13/only-world-groups-profit-to-be-hit-by-closure-of-outlets-in-genting-highlands/

What make me look into OWG?

Do click on the link to have a look.

http://pgmasterplan.penang.gov.my/index.php/en/2016-02-26-03-12-57/pengangkutan-awam/lrt

The proposed Bayan Lepas LRT line will be about 30 km in length with 27 stations running from KOMTAR to the future reclaimed islands in the south.

Besides passing through must-go-points at KOMTAR, Bayan Lepas FIZ and the Penang International Airport, the line will also serve established and planned residential townships and employment hubs in Jelutong, The Light, Gelugor, Batu Uban, SPICE in Bayan Baru, Sg Tiram and Batu Maung.

The proposed alignment of the Bayan Lepas LRT serves the heavier travel demand corridor in the eastern or Bayan Lepas belt – from KOMTAR all the way to the Penang International Airport. The LRT system is most suitable to cater for future increases in travel demand from:

• Expansion of the Penang International Airport from 6.5 million passengers per annum to potentially 20 million passengers per annum;
• Expansion of the Bayan Lepas industrial zone; and
• The developments in the southern coast reclaimed islands.

On top of Master Transportation Plan Penang, there is a explosive news came out today.

LCCT dream closer to reality for AirAsia in Penang.

On Aug 2, Fernandes tweeted that he was confident the government will allow for the setting up of three LCCTs in the country. Fernandes had tweeted: “Malaysia I am sure will have three LCC terminals in KL, Penang and Kota Kinabalu. With the momentum in Indonesia and the Philippines, this is huge for @AirAsia.” This followed a meeting on July 27 among Fernandes, Guan Eng, Transport Minister Anthony Loke and MAHB acting group CEO Raja Azmi Raja Nazuddin, which the AirAsia boss had described as “great”.

Above news can be obtain by clicking this linkage. http://www.theedgemarkets.com/article/lcct-dream-closer-reality-airasia-penang

What truly make OWG interesting is the iconic landmark of Penang. If there is more tourist visit Penang state, OWG will definitely benefit from it. With the support of Penang State government, this will boost the Penang economy and more revenue for the state and federal government. There is so many interesting to visit at Komtar such as Jurassic Research center, 7D Discovery Motion Theater, Tech Dome Penang, Ocean Explorer, Dino Gym,  Magic Mirror Maze, Musical Caroussel, Jelly Bump, Ufox, Tongkat Ali King, Durian the King of Fruit, Top Boutique Aquarium.

More information can be obtain by clicking below linkage.

https://thetop.com.my/the-banquet/

So, with the boost of Penang tourism and Genting resume operation. Personally, I foreseen OWG stand a chance to shine till 2019. On top of that, year end holiday will boost OWG income for sure and it should reflect by the First Quarter 2019. So, don’t you think OWG able to deliver a better revenue and profit for the coming year? Beside that, weaker ringgit will attract more foreigner flow in to Malaysia by year end. Visit Malaysia, Visit Penang.

Technical Point of View.

Support : 0.94 ; 0.995

Resistance : 1.13 ; 1.28 ; 1.54 ; 1.62

Disclaimer: Above is for educational sharing purpose. Trade at your own risk.  Kindly consult your dealer/remisier for any investment advise.

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