4 or 5 billion loan is not a big problem for this type of CASH generating project PLUS is still having double digit billion loan until now in spite of giving out dividend to the government
WCE market capitalization is less than half a billion now and when PLUS was privatised in 2011 it market capitalization is 22 BILLION.If WCE share price move up to RM 1.16 it is only 4 times the market cap now, of course its for comparison only n very much depend on the TRAFFIC FLOWS either way.
infra is a longterm play always. Need a lot of patient. but you compensated with longterm stable cashflows. IJM is not stupid, likewise for MAGNUM boss and MAMEE boss.
Investors always wanna quick profits, like all gloves. 100% return few months......mentality of investors vs bizmen. Tell me is bizmen richer or retail investors? you know the answer
MANAGEMENT DISCUSSION AND ANALYSIS To-date, the percentage of the overall completion of the construction of the Project is 66% and the construction is still on-going. During the financial year, the construction of Section 5, 8, 9 and 10 have been completed and opened for toll operations. The Group experienced some delay in the construction works of the Project primarily due to land acquisition issues. Given the delay, the Group is targeting to open the remaining sections by the financial year 2022 except for a stretch measuring approximately 10km known as Section 7B which is expected to be completed by June 2024.
Interest expenses Rm40mil per quarter! This means Wcehb paying Rm120mil interest per year. This is expected to be so at least tot the next 5 years. Koyak lah like that.
2014 vs 2019 Toll industry and expected traffic is very very different.
==== paperplane infra is a longterm play always. Need a lot of patient. but you compensated with longterm stable cashflows. IJM is not stupid, likewise for MAGNUM boss and MAMEE boss.
Investors always wanna quick profits, like all gloves. 100% return few months......mentality of investors vs bizmen. Tell me is bizmen richer or retail investors? you know the answer 15/07/2020 8:14 AM
Either way for me, my thoughts in the article still stands.
=== abang_misai Interest expenses Rm40mil per quarter! This means Wcehb paying Rm120mil interest per year. This is expected to be so at least tot the next 5 years. Koyak lah like that. 21/08/2020 1:36 PM
This quarter cant tell anything meaningful as some sessions just opened, some sessions going to open next quarter, half of the quarter no interstate travel due to MCO, limited construction/property activities during MCO etc
Do expect Q3,Q4 2020 got much higher interest expenses as more sessions are opening.
"The WCE Project is divided into 11 sections of which Section 8 (Hutan Melintang - Teluk Intan) opened for traffic on 31 May 2019 followed by Sections 9 (Kampung Lekir – Changkat Cermin) and 10 (Changkat Cermin – Beruas) on 23 September 2019. On 10 December 2019, Section 5 (Bandar Bukit Raja to Kapar) was also opened for traffic. To-date, a total of 4 out of 11 sections have been opened for traffic and commenced tolling."
The real traffic only comes when they open sessions connecting port lumut/port klang, selangor part, and when all the sessions fully connected from interchange that connects to NSE.
I think WCE shareholders best hope is this. If govt were to actually move forward with this. WCE may get their book value back.
=== abang_misai Rm40mil interest expenses per quarter when only 3 out of 11 sections start to recognise interest expenses. What if all the 11 sections open? 31/08/2020 10:21 AM
Choivo, good detailed analysis. longer term investment. last friday see some higher volume and movement. well if continue to see break 35/40. Have you collected ?
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Posted by lassy > 2020-06-24 14:15 | Report Abuse
4 or 5 billion loan is not a big problem for this type of CASH generating project PLUS is still having double digit billion loan until now in spite of giving out dividend to the government