Not that simple to just draw that conclusion when you dont know whats the margin and what is the amount that will be sub-contracted out.
Anyway look at the big picture, WCT already has order book for the next 3 years and you have potential upside from the 1.2b award from Meydan project still pending enforcement amongst other thing goodies coming.
If you think Sunway Con is better, then sell WCT buy Sunway Con tomorrow. I dont like the latter as i think its fully valued.
Furthermore, once they announce they will bid for the High speed transit KL-Singapore, by way of JV with China huge company, then the share price will be speculated up, It is estimated they will announce it by November.
You guys still remember when WCT speculated high because of JV with wanda for Bandar Malaysia? But actually that's speculation, not the REAL news. But this round they will announce the REAL news which will push up the WCT price
The critics of this counter is high PE. Otherwise, it has sufficient order book to keep them busy for the next 3 years assuming that Revenue stays at about 2b ( they have 6b+ jobs in hand now), reasonably good track record in construction and influential management with the Pavillion connection.
Is 28-30 PE high ? Yes it is. But it is temporary or going to be a recurring situation? Look at their historical performance except for 2016 which most companies didnt 'report healthy profits' due to various circumstances.. the average EPS is 14-15 cents ? If EPS bounces back to conservatively 10 cents this financial year 2017 would PE drop to 15 ?
Do you think for WCT to report a profit of 20M-30m a quarter based on a sales of 400-500m per quarter unreasonable ? If they report any higher PE will drop. Now remember WCT is mainly focusing on infrastructure / govt related jobs that 'reportedly have better margins'. You go figure.
You can buy low PE stocks but expect low PE stocks expected returns and capital gains, or you can buy high PE recovering stocks.
All analysts give HOLD recommendation and neutral of LRT3 win. If is good as u claim....why drop like basket of crabs? Got logic meh? More like hitting lalat lah
This is just temporary, they purposely press down the mother share price in order to collect more WD shares, once WD shares collected at the certain level, then they will push back the mother share to 1.80+. The fundamental of the WCT is still strong, and with strong book order, and upcoming mega projects, the mother share definitely will be back to "reasonable value"
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....
mxlitfly
63 posts
Posted by mxlitfly > 2017-09-27 11:20 | Report Abuse
same with me....just bought mother and collect more WE..........