1.5 billion project it is a good opportunity to earn big money have to wait the news shown on the newspaper hardcopy just big in 1st while it is still a cheap price
KUALA LUMPUR (March 11): Zecon Bhd shares rose 1.21% in early trade today after its consortium with Kimlun Corporation Bhd clinched a RM1.46 billion contract to develop and upgrade a portion of the Pan Borneo Highway in Sarawak.
At 9.21am, Zecon was up 1 sen to 83.5 sen with 1.06 million shares done.
In separate statements to Bursa Malaysia yesterday, Zecon and Kimlun said they secured the four-year (48 month) project's letter of award from Lebuhraya Borneo Utara Sdn Bhd.
According to Zecon and Kimlun, both companies will set up a joint venture company (JVC) to develop the Serian roundabout-Pantu junction stretch of the Pan Borneo Highway.
Kimlun, which will own 30% in the JVC, said: "Upon the due incorporation of the JVC, the JVC will enter into a contract with the awarder on the project."
Zecon will own the remaining 70% in the JVC. Kimlun and Zecon said the contract was expected to "contribute positively" to their financials.
Measurement of final account for infrastructure works always more than actual workdone . Big project usually many loophole for contractor and consultants make money which is considered as corruption. ' You help me I help you'. Let say contractor can reduce the thickness of asphalt from 100mm thick to 80-90mm thick but claim report still based on specification of 100mm thick. Therefore there is BIG FORTUNE to make money especially MEGA PROJECT. Consultant whoever to certify the claim will just closed their eye because they are always been corrupted by contractor.Win-win and everybody make money. The money is from taxpayer they dont care.
This project will be riddled with issues like over budget, poor quality, delays, etc....Turnkey to mega international contractors will solve all the above issue.
Dont u think a small cap (119m) likes Zecon do get billion ringgit project without huge funding backing? Coming up Ren Irred Unsec Conv Loan Stocks + Right Issues and some candy Bonus Issues........1.00.
Jv with Kimlun almost 9% total of whole Pan Borneo Highway. Assume 5% profit margin for Zecon is rm 51m and net profit rm 38m and eps .32sen into 2020. Price should be.........
Can anyone make a list with key details of; 1. All the projects the company completed in the last 15 years 2. All their current on-going projects 3. All the projects in their order book which are yet to commence work
Wah! change the proposal again: 1) No bonus issue 2) No new warrant issued 3) 5 RCULS for 3 shares (if buy 3000 shares@0.60= 1800, then prepare 2500 to subscribe the RCULS)
these are my understanding, don know correct or not!
Zecon’s major shareholders, Dawal Capital Sdn Bhd and Datuk Zainal Abidin Ahmad, together with Tan Sri Hamid Bugo and Zainurin Ahmad, had in July last year proposed to privatise the company via an SCR and repayment, as well as an acceleration of the maturity of the outstanding 2007/2017 company warrants and cancellation.
The entitled shareholders will be paid 80 sen in cash for every RM1 ordinary share held, while warrant holders will receive five sen per warrant. Upon completion of the exercise, Zecon will exit the local bourse.
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....
Pin Wai Koh
147 posts
Posted by Pin Wai Koh > 2016-03-10 22:49 | Report Abuse
how come a company loss profit everyyear can get this huge project?