Hi! Kc with due respect I am also a civil engineer but I looked at it differently because Weida’s existing engineering businesses are already doing fairly well especially its water tanks and sewerage products manufacturing business which is generating a very stable profit of 20+ to 30 million a year. Then its tele communication towers construction and maintenance contract business which is BOT(Built-operate and transfer) in nature and payments are receive over 10 bullet payments over 10 years hence the high borrowing and receivables need to fund this business. It profit is good and clients(TM, Digi and Maxis) are very reliable. So your so call Pitroski score could be skew. The impairment loss of 5.5m that u mentioned is a one off one and it is only a provision provided for the
5% retention fund (of a completed Sewerage project in Syria) that was jammed up due very likely to operation & maintenance problem disputes. According to Weida’s latest quarterly result it had reported receiving some form of advances and payments already even though at a slow pace hence the reason why no more impairment was allowed in its this latest quarterly result. Regarding their sale of the plantation recently annouced – it is only about 8500 acres of the 16000 acres that they own and from this sale they will receive cash of RM151m cash and their costs is only about RM30m giving rise to an extra ordinary gain of RM121m which is equivalent to EPS of 0.94 and if the sale goes through it will enhance their NTA from 1.60 to 2.56. Their estates are bought at very low cost of less then RM2500 per acres about 5 to 6 years ago hence the reason why I said it is very undervalue because plantation assets which is realizable anytime when they sell them at 4 to 5 times the price over 5 to 6 years are real assets. Let us see what happen on Monday okay? Like I said I am just a civil engineer and no financial expert so this is just my 2cents of sincere sharing of my little understanding of this stock….

Hi! this is too conservative because this counter's plantation asset alone if revalue is worth at least RM4 to RM5 a share.

weida looks good & is consolidating very well with strong volumes so looks like something is up. Also stock has great earnings growth from plantation, luxurious condos and Bio gas projects.