Bursa Hunter-net-Hunter
MWE bhd's 26% stake in WCE is worth more than its mother, no wonder Upatkoon wanted to privatize it
Divestment of WCE to GLC funds is just the matter of time?
Last year, the Employees Provident Fund (EPF) inked a deal in which it bought 40% of the highly coveted Duta-Ulu Kelang Expressway (Duke 1 and 2) for RM1.13bil.
This price tag had valued Duke 1 and 2 at a whopping RM2.82bil, higher than the market capitalisation of Ekovest Bhd then, the vendor of the highway, at RM2bil.
Recently also, Permodalan Nasional Bhd (PNB) became the latest suitor of Silk Holdings Bhd’s (SHB) unit Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd, the concession holder of the Kajang Traffic Dispersal Ring Road, known popularly as Silk Highway.
The country’s largest fund management company is making a cash offer of RM380mil for the highway company.
More interesting is this - MWE’s 26% stake in WCE now has a market value of RM425mil, which is slightly higher than MWE’s market capitalisation of RM396mil.
MWE Financial Information
* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.
WCEHB Financial Information
* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.
WCE HOLDINGS BERHAD [S] (3565)
Company Website
Annual Report
General Meetings
in Chinese, we call it 母凭子贵
back to December 2015.....
Malaysia's 12th richest man's takeover bid of MWE falls through
PETALING JAYA: Tan Sri Surin Upatkoon’s (pic) investment vehicle Pinjaya Sdn Bhd’s plan to privatise its 31.14%-owned MWE Holdings Bhd has lapsed, annulling the earlier RM391.4mil offer by Pinjaya to take the company private.
The non-interested directors of MWE had on Wednesday requested for a further one month to deliberate on the takeover offer from Surin, also an MWE board member, via his investment vehicle Pinjaya, but the request was declined by Pinjaya yesterday.
Surin, a Thai national who is a long-time Malaysian resident, has been rated by Forbes as the 12th richest man in Malaysia.
The RM391.4mil values MWE at RM1.70 per share. The offer to privatise was originally launched on Nov 30 2015.
The offer values the diversified company at 0.63 times its book value per share.
Read more at http://www.thestar.com.my/business/business-news/2015/12/11/surin-takeover-bid-of-mwe-falls-through/#34tY81c7DhxJk8UB.99
Luckily the deal had fall through, that's mean a golden opportunity for retail investors like us.
KUALA LUMPUR (Feb 10): MWE Holdings Bhd today sold off its entire stake in US-based medical mobile monitoring company, Integrity Tracking, for approximately US$10.26 million (RM44.83 million).
The shares constitute a 10.09% interest or two million shares in Integrity Tracking, and they were sold at US$5.1291 apiece. MWE originally invested in Integrity Tracking in 2012, paying US$4 million for the stake.
According to MWE Holdings’ Bursa filing, the company looks to pocket an estimated US$9.87 million within 45 days from the date of merger, while the remaining US$389,000 is held by a third party to pay for possible expenses after Integrity Tracking’s merger with MobileHelp.
The Disposal is expected to be completed in the 4th quarter of financial year ending 31 March 2017. The earnings and net assets is expected to increase by RM0.19 per share.
Textile manufacturing and leasing of textile factory which made up 70% of MWE Holdings revenue, is its core business. Due to rising manpower cost, the company has focus on production line automation and also a strict control of material wastage. An additional 42 production line in Vietnam is expected to be completed in the end of 2016.
source: Donkey Stockhttp://www.donkeystock.biz/mwe
We shall see more profit contribution from the Vietnam plant.
Kindly check out Magni and Prlexus, who are also doing OEM for Nike for benmarking.
Prolexus profit rose 13.5% on 2QFY17, due to higher contribution from apparel division.
| Date |
Financial Year |
No. |
Financial Quarter |
Revenue (RM,000) |
PBT (RM,000) |
Net Profit (RM,000) |
EPS (Cent) |
Dividend (Cent) |
NTA (RM) |
Download Report |
|---|---|---|---|---|---|---|---|---|---|---|
| 16 Mar 2017 | 30 Apr 2017 | 3 | 31 Jan 2017 | 289,123 | 40,124 | 29,554 | 18.16 | 6.00 | 2.340 |
 |
| 13 Dec 2016 | 30 Apr 2017 | 2 | 31 Oct 2016 | 279,792 | 37,559 | 28,520 | 17.53 | 5.00 | 2.210 |
|
| 15 Sep 2016 | 30 Apr 2017 | 1 | 31 Jul 2016 | 271,392 | 30,980 | 23,529 | 14.46 | 5.00 | 2.130 |
|
| 23 Jun 2016 | 30 Apr 2016 | 4 | 30 Apr 2016 | 193,986 | 23,965 | 18,844 | 11.58 | 5.00 | 1.980 |
|
| 18 Mar 2016 | 30 Apr 2016 | 3 | 31 Jan 2016 | 268,921 | 34,151 | 26,066 | 16.02 | 5.00 | 1.920 |
|
| 22 Dec 2015 | 30 Apr 2016 | 2 | 31 Oct 2015 | 197,342 | 28,675 | 21,631 | 19.94 | 8.00 | 2.760 |
|
| 09 Sep 2015 | 30 Apr 2016 | 1 | 31 Jul 2015 | 193,818 | 20,482 | 15,573 | 14.35 | 0.00 | 2.660 |
|
In my opinion, both Magni and Prolexus are good and fundementally sound apparel counters, but MWE offers a value buy as a proxy to enjoy the rising trend of sport apparel.
In Chinese, we call it 高性价比，just like Samsung and Apple are very good smartphone, but Xiaomi offers much more in value with cheaper price.
Summary
With the disposal gain of telecomunication division and the contribution from the new Vietnam textile plant , we shall anticipate a higher dividend payout of more than 2 cents.
With the revaluation surplus gain from the 26% associate WCE holding bhd, we shall see the share price of MWE should be trading above of its book value of rm2.40.
Appendix：
quaterly report ended Dec 2016
“For current reporting period, the Group recorded RM6.0 million share of profit in associates. However, the Group also recognised RM13.6 million impairment losses for investment in quoted associate, being the effect of mark to market of its share price as at 31/12/2016. As a result, the Group reported total pre-tax profit of RM15.0 million.”
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2 people like this. Showing 4 of 4 comments
In long run, this share worth more than current value... probably 2-10 times of current value.
2017-05-08 20:53
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