Why worry that WCT wont get any project. Their construction business has always been strong and orderbook has been consistent over the years.
If they get any of the large projects that people above mentioned, then i would assume that this is not replacement for diminishing jobs but additional on top of what they already have.
Things you can expect. Realization of the award from the race track Middle East case whereby they have 800m long term trade receivables ( not short term trade ) which they have already won judgement of the case ( Announcement earlier says 1.2b ). Anyone understand that this cashflows means ?
Potential deleveraging of chunky real estate assets via the Pavillion connection which will free up a lot of cash and also reduce interest payable by a significant chunk.
MRT2 (RM896mil), Pan Borneo Highway (RM389mil), several packages at Rapid and the development cost for Paradigm Mall JB, Lead Residence Klang and Waltz Residence KL ...
Wct this quarter financial expected not good compare to previous quarter.. so.. it will not move up.. maybe will drop a litlle bit after quarter announced... after that only news come out and buying signal start..so just waiting the good time..
WCT WD is not encourage to buy at this moment.. just left 4 month before expire date. It will move below 15 cents before slowing down.. too dangerous to take risk.. avoid WD go for WE..
Prospects to grow its order book is good as several large infrastructure projects are expected to kick off this year such as RM55bn East Coast Rail Link, RM12.8bn Pan Borneo Highway Sabah, RM9bn Light Rail Transit Phase 3 and RM60bn Kuala Lumpur-Singapore High Speed Rail.
The Q2 report is considered ok, that's why at support level of 1.85. After today or tomorrow, the share price will be gradually going up as the fundamental is good. The key things are the new projects to be awarded soon : )
Rest assured, Epf has been accumulating the shares lately. Starting from next week, the price will slowly go up back to around RM 2.0 (Around Rm 1.95 to 2.0 range). Then once the good news being announced, then it will be around RM 2.25 to RM 2.35 range. cheers
This is a construction counter. People dont look at just one quarter performance to analyze trends due to accounting treatment of cost and revenue recognition. People are buying into future valuation not current, thats why price goes up when a big project is secured i.e. future profits and potential dividends.
5b order book which should keep them busy without any new big project awardment to be announced. How is the margin ? Common business sense will tell you that if you have not enough jobs or cant get jobs you might lower margins to secure a deal. But when your have so many jobs at hand, you would only want to 'worker harder' if the margins are high else why bother. So if they do announce any more jobs do you think the margins will be high or low ?
WCT is a old name and respectable one in construction. There is a reason why they are traded a relatively high PE.
TH is just selling alot of stocks in general and EPF is buying most of what they are selling.
It is very clear that the stock have been trending down since hitting rm2.45 months ago.. Somethings negative may be coming ... Still not the time to buy,,, Avoid at the moment...
The dropping is due to the tension over North Korea issue, and slight due to delaying of REIT. However, all these are just short term. As Value investment Investor, we should look at the future value of this stock. And the good things are, there will be some good news which will be announced soon. We just wait for good news soon then....
This is just 1st project, there are few more projects to be announced soon. Targeting to achieve 12billions value worth of contract. But guarantee can get one is 5 to 6billions contract.
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....
Ray Mond
171 posts
Posted by Ray Mond > 2017-08-16 21:19 | Report Abuse
china president coming to malaysia on october, will be possibilities that agreement for bandar malaysia being signed during that month.