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.
I agreed with Zhuge_liang 8 billion not able to build cannot build the same highway with current cost.
I disagree Malaysia government has obligation to bailout this highway company. The management should settle this borrow more money or RI or support from IJM .
@speakup, at times you are target of being ridiculed. if the prediction of share price for next few months wrong, then you got chance to turn the tables
@zhuge_liang, thanks you for informative sharing. This forum has many type of people, some knowledgeable like yourself and willing to share info n educate other. Some just want to make comments to draw attention. Some spreading fear and bad news to influence others to sell, so that they can buy at cheaper price (maybe they miss buying at cheap price dulu).
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.
@Zhuge_Liang May i know what assumption you use on the daily road users?
.. the land hearing process for the remaining 0.1% relating to 8 lots of section 3 has been completed and the payment to the land owners are currently being finalised and pay by the end of this year..
Well just hold on and top up. The project will eventually be completed. Closer to completion date that's when this will fly. Now just ignore and let the dogs bark themselves silly.
Speakup, I can feel u, i was same feeling like you for past few days, because we don't know whether it will fall some more. But when I saw the second payment by ijm for the radiant pillar disposal and I see some of investor take the opportunity to collect some more the ticket around 0.64 to 0.65. I think it should uptrend again.
First payment 200m, second payment should be 200m or the balance 290m, then the next qr will be profit, and we don't know in between they complete the 4 section early and open early, show it will reflect on the share price
Section 7(now completed with 62%) slow progress is due to the soft ground. The mgt is taking reasonable steps to ensure that it will be completed on or before 31 March 25
Btw, there is a alternative Jkr road that connect Section 6 to Section 8 if section 7 is closed for construction.
The above info is from CEO from Wce during 30 Aug 23 Agm
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Zhuge_Liang
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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.