Why Neoh sold part of his shares? To give misleading impression to market ?? IJm, Surin and Pang who collectively control 60 % of the company should provide confidence. The disappointment is there isn’t any update on the opening of more stretches for toll collection.
The management deserve a penalty for so much delay in the construction and causing so much delay which is costing the company in loan interest. Start by replacing the most senior members and bring in the China contractors who will finish up in half the time that it takes the locals to do.
The project strategy is also wrong in that the most important aspect should be to finish the front and the end stretch first which is the Changkat Jering to Beruas stetch so that southbound traffic can get into the highway to use the BERUAS,LEKIR,TELUK INTAN toll and the Banting side to rope in northbound traffic which is plentiful on SKVE,ELITE,KESAS.Instead , the highly paid managers completed the middle sections but no traffic coming in from the front and the back.
WCE secures RM301mil contract for the West Coast Expressway project Ayisy Yusof By Ayisy Yusof April 2, 2021 @ 8:36pm
KUALA LUMPUR: WCE Holdings Bhd's construction arm, KEB Builders Sdn Bhd (KEBSB) has secured a RM301 million contract for the West Coast Expressway project.
The contract is to construct and complete Section 7, Part 2 of 2 (Section 7B) of the project which is expected to be 30 months from the construction commencement date.
Section 7B would be the last section of the project to be awarded with about 10km in length from the beginning of the Assam Jawa Interchange towards the Tanjung Karang Interchange.
In an exchange filing today, WCE said it has accepted a letter of award by IJMC-KEB joint venture - the engineering, procurement and construction contractor (EPCC) of the project
@JL99999, I don’t have the patience to wait until it drop to 23-24sen. I decided to add my position from 28.5 sen progressively downwards . Shall I meet you again at 24 sen ? Hehehe…
https://www.wce.com.my/project-updates/#project-update-december-2021 West Coast Expressway Selangor Alignment Status DEC 2021 Seksyen 1: 11 KM: Banting-SKVE: Completion 81% Seksyen 2: 7.2 KM: SKVE- SAE: Completion 71% Seksyen 3: 10.1 KM: SAE-NKVE/FHR2: Completion 69% Seksyen 4: 4.5 KM: NKVE/FHR2- NNKSB: Completion 99% Seksyen 5: 9.7 KM: Bandar Bukit Raja Selatan- Bandar Bukit Raja Utara: Opened Seksyen 6: 21.8 KM: Bandar Bukit Raja Utara – Assam Jawa: Completion 74% Seksyen 7: 29.5 KM: Assam Jawa – Tanjung Karang: Completion 47%
Perak Alignment Status DEC 2021 Seksyen 8: 19.1 KM: Hutan Melintang – Teluk Intan: Opened Seksyen 9: 28 KM: Lekir – Changkat Chermin: Opened Seksyen 10: 16.6 KM: Changkat Chermin – Beruas: Opened Seksyen 11: 35.5 KM: Beruas – Taiping Selatan: Completion 54%
With only 4 Seksyen out of 11 sections were opened for toll collection. It will be many more lose quarter until 2024.
Agreed. The company has 3 solid major shareholders, IJM, Surin and Pang who collectively hold about 60%. IJM who play a pivot role has experience in ensuring the completion of the project.
Stupiak local contractor company cannot finish removing boulders on Seksyen 12 stretch from Beruas to Changkat Jering until delaying the project by 2 years..really useless
Most of the time, New CEO will implement certain plans that will bring a benefit to the company. How about WCE?
I hope the CEO will help to speed up WCE High Way completion date. If possible, I also hope that Mr. Lyndon Alfred Felix (new CEO) will growth the WCE as Gamuda. For example, along the WCE High Way, there are number of lands that have possible for developing.
KUALA LUMPUR (Feb 9): WCE Holdings Bhd has named its chief financial officer Lyndon Alfred Felix as the highway construction group’s new chief executive officer (CEO), effective Feb 17.
Lyndon will replace Datuk Neoh Soon Hiong, who will retire as the group's CEO effective Feb 16, after fulfilling his service contract.
“In view of Felix's appointment as the CEO of the company, he will no longer hold the position of chief financial officer,” WCE said in a bourse filing.
The group said Sisie Lim Shee Shee will be appointed as the general manager of finance and accounts with effect from Feb 17.
According to WCE’s 2021 annual report, Lyndon was appointed as the group’s chief financial officer on Feb 17, 2014
Don't bother to buy at this price. WCE needs to raise at least RM 1 billion to fund the remaining development and we haven't even talk about the huge interest expense costing RM 250 million a year. If you want to know why insiders are throwing you should check out the project cash flow projection. In summary, all i can say is based on a DCF of 8% discount rate, the value of 80% in WCE was originally only around RM 1.8 billion. But now with much higher interest expense than expected and massive cost overrun, i think this company right now only worth around RM 400 million or even less. You won't see it so soon but when yhey have to raise funds up to RM 1 billion, your share in this company will diluted like nobody's business. The only upside is the concession period can extend another 10 years, but that will be in 2060 the value of RM 1 then and now will be huge so barely helps anything. And definitely not enough to cover the huge cost overrun from interest expenses and land
You might find what i wrote above confusing. I also find it confusing like pieces of badly stitch info and opinion.
So i will just emphasise on one matter to show you why dont even think of buying at this price.
In 2021 AR, they disclosed that the remaining performing obligation for the construction is RM 1.7 billion. That remaining constructiin cost alone is already higher than WCE's market cap. Still haven't factored in the insane RM 250 million interest expense a year.
To get some perspective, PLUS revenue in 2010 was 3.3bil, gross profit was 2.3bil, servicing 750m interest expense p.a.
My estimation for WCE is at least 1/4-1/3 of these figures. What is 250m interest expense to them? As at latest quarter ended 31/12/2022, their cash and equivalent was 580m, GSL credit line left with about 100m, term loan credit line left with about 100m also, of course expecting more dilution from RCPS and RUMS etc to get addtional cash if needed, and slight help from 4 opened section of toll. I think right issue is not needed looking at rate of cash flow drain.
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....
Johnzhang
3,098 posts
Posted by Johnzhang > 2022-01-06 16:53 | Report Abuse
Only up 1 sen . No jump lah.