For Keuro, Bandar Rimbayu’s GDV of RM11bil is also another big asset. AmResearch said the original land cost for Bandar Rimbayu is only RM5 per sq ft compared with an average of RM18 per sq ft, imagine how much Keuro can earn with this project alone? Not to mention West Coast Expresway RM5 Billion project, how much profit can Keuro gains from this?
All in all, at current price, investors do not factor in West Coast Expressway Project.
(a) The West Coast Expressway (WCE) Project involves the development of a 233 kilometres tolled highway from Banting, Selangor to Taiping, Perak (including 40 kilometres of highway to be constructed later). The WCE Project is a build-operate-transfer project with a concession period of up to a maximum of 60 years. The total project cost is approximately RM5,900 million and revenue from sectional toll collections is expected to commence in 2018. The Construction Commencement Date was set on 25 August 2014 and will take five years to complete. Currently, the construction in on schedule.
(b) The property market is expected to remain soft due to the weak consumer sentiment coupled with stringent mortgage approval regulations. Bandar Rimbayu is expected to deliver a satisfactory performance for the current financial year on the back of unbilled sales and satisfactory response from product launches.
(c) The Company is also participating in the construction of the WCE as the IJMC-KEB Joint Venture has been appointed as the Turnkey/Engineering and Procurement Contractor for the WCE highway project.
The Group recorded revenue of RM149.9 million in the current quarter compared to RM1.8 million in the preceding year quarter. The increase is largely due to the construction revenue recognised in the current quarter pursuant to IC Interpretation 12 (IC12) Service Concession Arrangements pertaining to the highway project. The Group recorded a pretax loss of RM1.2 million in the current quarter compared to RM15.0 million in the preceding year quarter due mainly the reversal of the interest income earned on placement of borrowed funds in excess of borrowings and lower share of results in associates in the current quarter.
(a) The West Coast Expressway (WCE) Project involves the development of a 233 kilometres tolled highway from Banting, Selangor to Taiping, Perak (including 40 kilometres of highway to be constructed later). The WCE Project is a build-operate-transfer project with a concession period of up to a maximum of 60 years. The total project cost is approximately RM5,900 million and revenue from sectional toll collections is expected to commence in 2018. The Construction Commencement Date was set on 25 August 2014 and will take five years to complete. Currently, the construction is ongoing. (b) The property market is expected to remain soft due to the weak consumer sentiment coupled with stringent mortgage approval regulations. Given the challenging market conditions, Bandar Rimbayu’s financial performance is expected to be weaker for the current financial year. (c) The Company is also participating in the construction of the WCE as the IJMC-KEB Joint Venture has been appointed as the Turnkey/Engineering and Procurement Contractor for the WCE highway project. Barring any unforeseen circumstances, the Group expects the results for the current financial year to be satisfactory.
this is long term stock .... wait until it completes WCE highway ... possible a 5 - 10 year time frame... by which time we are already passed our prime time
stkong123 this is long term stock .... wait until it completes WCE highway ... possible a 5 - 10 year time frame... by which time we are already passed our prime time
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....
paperplane2016
21,644 posts
Posted by paperplane2016 > 2015-12-22 12:16 | Report Abuse
2018 begin run as schedule. delay or not. dunno.
But many funds supporting, hopefully not