sold at 40sen, wce is need 7-8year to breakeven before making money after highway completion. During these 7-8 year gestation period, interest expense will be higher than toll revenue collection.
of course, at the down side, i have been holdings for more than 5years low losing money. Opportunity cost is high where EPF pay 6% average a year, FD pay 4% avg a year past 5 years.....
Hard to make a call Investing now may take another 2 years, but by then, price may be 50 sen++ Perhaps take a small position now will be good for those on the sideline But those who already hold many years now, definitely will be much lower total returns since price is also cheaper if you buy now
West Coast Expressway will be fully opened by 2024 and no doubt initially the interest expense will be higher but it would not take long until company could dispersed some of the toll collections into dividend payout as the whole project ROI has been carefully calculated. This is the best time to collect more if share price maintain or even better if lower.
Whoever think to stand sideline until it take profit will missed the boat especially those short term this company is not suitable for them.
As long as Section 12 Beruas Changkat Jering is opened then almost all Northern bound heavy vehicles like buses and lorries would divert to WCE as to avoid the dangerous stretch of PLUS highway along Ipoh Kuala Kangsar..do not need to wait for stretches in Selangor to be completed as there are many other options there.
once Section 11 is opened surely a significant amount if not all of heavy vehicle traffic will divert from PLUS to WCE in order to bypass dangerous stretch from Changkat Jering to Ipoh on the NSE...ie the famous Menora tunnel accident prone stretch & Gua Tempurung haunted areas
so as you know the biggest collection for all tolled expressways is the collection for Class 4 vehicles..ie heavy vehicles such as container lorries, express bus coaches and even excavators
This would be the only alternative to NSE ( north section) for a long long time. Dont look a gift horse in the mouth. It is just a wait to grow into valuation
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....
hng33
20,268 posts
Posted by hng33 > 2023-01-27 16:41 | Report Abuse
sold at 40sen, wce is need 7-8year to breakeven before making money after highway completion. During these 7-8 year gestation period, interest expense will be higher than toll revenue collection.