Bandar RIMBAYU, WCE'S 40 % worths about RM 1 billion, taking the land price @RM30 per sq ft. It is slightly more than WCE's market Cap now.
However, if PLUS highway could be made Toll free, since originally the Concession, as I read in this forum, should have ended by 2018 and If that is the case, it will impact severely on WCE's toll business irrespective of whether it will be toll free or not. The compensation could come in the form of the Construction cost ++++?
provision for impairment on receivables 20m due to change of MFRS9 accounting reporting standard, base on announcement the the remaining receivables is still in negotiable. No problem on quater result, just a one time off recording due to change accounting standard
The remaining outstanding receivable from Talam Transform Berhad (“TTransform”) is expected to be recovered within a timeframe subject to the negotiation in resolving the issue of the Group’s contingent liability to TTransform (see Note 30 as disclosed in our Annual Report 2017, page 108 and Note 40(i) as disclosed in TTransform’s Annual Report 2017, page 151). The outstanding receivables will be settled once the Group and TTransform have reached an amicable settlement on the negotiation in resolving the above issue.
i agree. government has said that they are not going to abolish toll so soon. my view is that when the government does abolish toll they will focus on those that has already recouped their investments first. Even if they do decided to abolish wce tolls they will have to pay compensation. Also certain portions of the highway is expected to open soon. this is a positive for wce.
Good comments. This share is good potential share at this point of time. Can continue accumulate this share at this presence low price. Confirmed is undervalued stock.
I have held the stock, WCE for a long time since 2014 and this drop largely to do with fear of termination of most tolled highways in Malaysia, I think is overdone. There is no denying that any government of the day can do whatever they like - or could they?
More than 50% of tolled highway assets are owned by government linked organizations such as EPF, PNB, Khazanah. Those examples are PLUS Expressway, AKLEH, LKSA, SILK and several more under Prolintas. Many investors do not differentiate the difference between government linked and government. These highways are not owned by government but by the people. Best example is PLUS which is 51% owned through Khazanah and 49% by EPF. The government does not hold ownership of EPF but run the organization on the people's behalf.
By terminating PLUS without fair compensation towards EPF especially will be bad for the governance and future investment profile of the country.
WCE Sdn Bhd is indirectly semi-private and public, as I call it. 20% of the highway is owned by IJM direct, and the largest shareholder for IJM is EPF (yet again). Although it is professionally run by a set of managers, its 2nd and 3rd largest shareholders are Amanah Saham Bumiputera and Tabung Haji respectively. Besides that IJM also holds 26% of WCE Holdings, the listed company which I am buying.
In the event the government is exercising its pitch of eliminating toll highways, it will hugely impact the stock market - and not just tolled highway stocks.
At the price of RM0.75, I think the market is already putting the company on the huge assumption that the highway will not continue. Todate, WCE is 51% completed and it seems that they are continuing with the project without stopping.
On the other hand, as it seems MWE - the other 26% shareholder is picking up its shares of the additional funds - through rights - that is to be raised for the company in the next few months. If the project is affected, usually no one will inject more money. MWE is actually going private which means its company's largest shareholder is now having a larger effective stake of WCEHB.
On the merit of the highway, I do not think there is much change. The government could hold back on price toll increases in the long run which may affect WCE. I still think at RM750 million valuation, it is compensated for whatever that may be negative.
stock price confirmed bottomed based on low trade volume.unfortunately major shareholder not showing confidence and leadership by buying at this low price.only one brave soul of a director picking up .
They will not abolish the tolls, as the government cannot afford it.
They can make all the noise they want, but fact of the matter is, abolish tolls need to pay alot of money, otherwise, you can nationalize it and completely destroy your reputation around the world. Which nobody will do.
If they want to abolish and pay compensation, im ok. Still make money.
who is going to take up righta and warrants when mother share has no support? The previous round of rights at 1.08 and warrant was a total loss for subscribers,warrant lapsed to zero value.once bitten twice shy.Management should not opt for rights until the toll is collecting monies
all the major shareholders dare not even buy at such low price,where is the confidence for others to take up rights.bad financial planning and practice
(i) WCEHB and RHB Investment Bank making clear disclosure in the relevant circular to shareholders as well as the abridged prospectus that the Proposed Rights Issue will be aborted in the event WCEHB is unable to meet the minimum subscription level; and
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Posted by uptrending > 2018-05-21 21:57 | Report Abuse
Bandar RIMBAYU, WCE'S 40 % worths about RM 1 billion, taking the land price @RM30 per sq ft. It is slightly more than WCE's market Cap now.
However, if PLUS highway could be made Toll free, since originally the Concession, as I read in this forum, should have ended by 2018 and If that is the case, it will impact severely on WCE's toll business irrespective of whether it will be toll free or not. The compensation could come in the form of the Construction cost ++++?