There is a good news going to be announced by GUH in April. Forget Langat 2, GUH's water subsidiary does not has the capacity to do mega scale water job...but this round Is oversea related stuff and with recurring income. $$$$$$$ TP 1.60 (at least) $$$$$$$
johmajor: can share a bit more? i think some investment bankers/insider might already had knowledge of this and keep accumulating at the expense of minority shareholders who had no access to this good news.
I can give hint for you...."why would they buy a mid size water engineering contractor while they are a PCB manufacturer". Langat 2 isn't the main aim, they do not have such a big stomach for that big slice of cake. If they can secure small part of the sub-contract then it will be a bonus. Now you know what I mean?
johnmajor; getting more interesting; 1) if getting sub-contract for langat 2 , then the earning will only on per project basis. 2) kindly share what sort of recurring income that you had mentioned., more hints please.....
mlg123, you can forget about Langat 2 to contribute to GUH earning. The chances of them securing part of the subcontract is low and one should not build this in when come to valuation to their stock price. As of the recurring income thingy, they will announce earliest is in month of April or May. Let's see how the share price will fair when they announce it. All you have to do now is stay calm, be patient and wait for the good news. My personal opinion is, overall this counter is a BUY with TP of RM1.60.
Export for electrical products/goods has increased since Nov 2013. GUH has benefited from this trend. I am still positive on this counter. Next target 1.80. But I won't buy anymore. It's wont go beyond 1.80 easily unless company has secret business plan or they have captured new market which we don't know.
GUH: It is close to sealing a 30 year water treatment plant concession agreement in Myanmar. The deal if materials, is expected to contribute rm9 million per annum to the company’s bottom line.
This is part of the company’s strategy to diversify its business which is involved principally in the manufacture of PCB. This division is the largest contributor which is 80% of its revenue.
GUH holds some rm40 million in water projects in Malaysia. Plans are afoot for greater participating in the segment via its 70% owned Teknoserv Engineering Sdn Bhd, which GUH acquired in 2012.
The group said the contribution from water projects is expected to generate about 10% of its turnover in 2014.
Apart from water treatment plants, GUG is involved in key businesses including electronics and electrical property development, plantations and power generation.
It has been operating a 35MW diesel engine heavy fuel oil fired power generating plant in Cambodia since 1997 via a 20% stake in an IPP. The concession is due to expire in 2015.
It has property development in Taman Bukit Kepayang on 50ha site in Seremban.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sethoylo
146 posts
Posted by sethoylo > 2014-04-03 22:50 | Report Abuse
it will higher tomorrow!