KLSE (MYR): WCEHB (3565)
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Last Price
0.795
Today's Change
-0.005 (0.63%)
Day's Change
0.795 - 0.805
Trading Volume
58,100
2024-11-21
2024-11-21
2024-11-19
2024-11-19
2024-11-19
2024-11-19
Zhuge_Liang
2,443 posts
Posted by Zhuge_Liang > 2023-08-27 11:57 | Report Abuse
Earnings in FY 2023 and 2024 are not important anymore.
Investors are looking at future earning.
If you have 8.06 billion now, you cannot build this WCE because the land cost and labour cost are higher than 5 to 10 years ago.
Hence the share price at the current level is very cheap.
If you value WCE at 8.06 billion, the share price should worth 2.70.
The share price will move up north as the completion time is getting nearer and nearer.
Is WCEHB has no money to complete this highway ?
You must be joking, this highway is back-up by Malaysian government.
The Malaysian government wants this highway to be completed as soon as possible.
Most of road users staying in the west coast of Selangor and Perak will prefer to use this WCE than NSE because the cost of toll is cheaper and the distance will be cut short by at least 50 km for "Manjong and Taiping area" users.
I am very sure this WCE will be completed in time in 2024 or the early part of 2025.
Once the WCE is completed, the gross profit per year will be projected at least > 1 billion a year for the next 38 years.
The cost of construction will need < 8 years to recover, the owner of this highway will enjoy > 30 years of > 1 billion gross profit per year. A very good deal for the owner of this highway.
If the share price can drop back to 0.30 or 0.40, the long term investors should add position to take advantage on this cheap sales.
My 2 cents comments.