Monetary

Tan Sri Surin bought from Tan Sri Chan in 2013, 141.4 millions shares @rm1.35 per share. He also subscribed the rights issue in 2014, 3 for 4 @rm1.08 for another 109.5 m shares.

monetary The market price now is still way below the average costs of the major shareholders @ about 60 cents,

Have u accounted for RI subscription? Those who bought b4 GE r still in loss even after RI subscription. Those who bought right after GE (80c) just breakeven now.
20/11/2019 8:18 AM

The price has already accounted for the current RI subscription.

Down Elliott Wave should have ended at ex rights price @0.30 from a high of 1.68 b4 rights issue in early 2017, lasting about 30 months. Now is the new phase of the UP Elliott Wave in its infancy.

When the company announced the rights issue to raise fund for the expressway project in March 2018,the share price started to drop since then from rm1+ till the ex date of the rights to ex rights price of 30+ cent. Investors dumped and avoided the shares in the last 2 years as no one likes the idea to fork out more money.

Now that the rights issue has been overscribed by the strong shareholders without the undertakers. The rights issue price was fixed at the rock bottom price of RM0. 24 per rcps.

The market price now is still way below the average costs of the major shareholders @ about 60 cents, not counting interests, and the expressway has progressed to near 70% completion.

The reversal in share price to uptrend has just started.

"recognition of interest expense of RM14.0 million in respect of the financing cost for completed sections which are
opened for traffic"

"Toll collection is expected to be in December 2019 subject to the gazetting of toll by the Government"

No structural fundamental changes /issues to the company or the expressway being built.

The construction of the expressway will be going full force after completion of the rights issue.

Price weakness is opportunity to capitalise.

Most of the shares including PR, before the rights issue payment date, most probably are already in strong hands.

It's still cheap lah..

Keep going up..
Likely already sapu most since announcement of rights issue in March 2018, 20 months ago.
Maybe minimal retailers left.. Most sold.. hihi

If added 4 % interests per annum, the average costs of 2 of them would be 70 cents per share

If add interests @4% per annum, wow!

Still way below the average costs of the 3 major shareholders...

Haha! Can't agree more

Alfl3,

Are you trying to tell us as I thought?

That buyer or buyers who bought up all the PR in those 5 PR trading days, especially the last day buying all the way from 1.5 cent to 5 cent might have bought most of the PR.. Many "smart" retailers waiting to buy at 1 cent and 0.5 cent were probably had been outsmarted..

Who were the buyer or buyers?

Let's see if WCE is going to rise all the way next week prior to the listing of RCPS and warrants on 25th November.

Alfl3
Can't understand why you said that. Isn't it that all the shareholders are also entitled to subscribe for the rights at the same terms and conditions?


AlfI3 This round of rcps will help major share holders to regain back many of their earlier losses, but not benefitting d minority share holders much
16/11/2019 7:48 AM

Whatever Government Policies, they cannot kill Plus. Whereas WCE should be more competitive than Plus due 2 stretches of the wce expressway with a total length of 83 Km built by the govt is toll free. It is shorter and the terrain is flat. Heavy vehicles would love it.. Motorists also
as they can save on toll fees.

Next week, I meant :)

Tomorrow break 40 cent, hopefully..

Why 4 companies scrambled to buy PLUS, when both Khazanah and EPF have no intention to sell their precious asset?

WCE is an alternative to PLUS, maybe a better one.

That's why the 3 major shareholders are very cool, wanted the excess shares to the tune of 80%...

Hahah

Surin upatkoon lose more, on paper... UHF also lose, more than Felicity. Even IJM, bought in 2005 @28 cent also lose, after subscribed for the rights in 2014 and 2019...

Haha!

Equity injected todate is rm688 million, another 320 million from this rights and assume full conversion of the 2B rcps, total equity injected would be rm1. 088B... same market Cap for 3B shares, assume full conversion of rcps with option 1. All efforts put in wcesb in the past years are free? Bandar Rimbayu is free?

How come?

Someone seemed to know the sentiments of the RI which would be fully and overscibed. On the last trading of the PR, it was ramped up to 5 cent from 1.5 cent with a huge volume of 102 millions shares..

Now they have no other option to buy cheap. Rights issue price set so low but could not get. If want to buy more to average down, can only buy from the market..

IJM management proven excellent

Market price is way below the average costs of the major shareholders.

Pintajaya 60 cent...... bought since 2013, 2014
UHF 55 cent.............. bought since 2013, 2014
IJM 42 cents.............bought since 2005.. 2013, 2014...

Price is per share price after the current RCPS rights issue.

Felicity It is not good. High chance of toll collection not happening
15/11/2019 8:50 AM

What do you mean?

The 3 major shareholders can't get excess shares subscription which they were undertaking, they can buy from the market.

Wcehb's cost of the land is only rm5+ per sq ft. against market transacted for a big parcel at about rm33 per sq ft a few year ago. The Surplus in the land value if it is revalued to market value, is about rm500 million.

Bandar Rimbayu is profitable since FY2014. It has contributed accumulatively rm153 Millions share of profit to wcehb for the past 5 Financial Years since FY 2015.

Not to forget that wcehb still has a valuable asset in its 40% associate, Bandar Rimbayu, which is being developed and managed by the other 60 % shareholders, IJM Corp.

As at 31st March 2019, Bandar Rimbayu still hold 415.88 HA land under development.

Money will be rolling in when wce starts collecting toll upon full completion by Aug 2021

Coming soon...First toll collection for the completed stretches, section 8,9 and 10, follow by section 4 and 5...

Tan Sri Surin bought from Tan Sri Chan in 2013, 141.4 millions shares @rm1.35 per share. He also subscribed the rights issue in 2014, 3 for 4 @rm1.08 for another 109.5 m shares. Now, he has undertaken to subscribe for his portion of the rights, and jointly with the other 2 major shareholders, IJM and UHF, to subscribe up to 80% of the total rights issue.

What did Tan Sri Surin see in the company? What we know, he surely already knew. But what we don't know, he must had known.

A shrewd businessman like him, would we go wrong if we also take a long term view investing in the company?

Tan Sri Surin bought from Tan Sri Chan in 2013, 141.4 millions shares @rm1.35 per share. Subscribed rights issue, 3 for 4 @rm1.08 in 2014 for another 109.5 m shares. Now, he has undertaken to subscribe for his portion of the rights and jointly with the other 2 major shareholders, IJM and UHF, to subscribe up to 80% of the total rights issue.

What had Tan Sri Surin seen in the company? What we know, he surely already knew. But what we don't know, he must had known.

A shrewd businessman like him, would we go wrong if we also take a long term view?

RM 2.24 billion is government support loan @ 4%

Motorists saved 100km tolled money by travelling via WCE from Taiping to BUKIT RAJA as compared to via NSE. Dont forget that there are 2 stretches total 83km bulit by the govt in WCE are TOLL FREE. The distance is shorter from Taiping to Bukit Raja via WCE, about 248km while that via NSE is about 272km.

There are about 100K heavy vehicles plying the NSE daily. Many will divert to WCE due to shorter distance, save 100km tolled fee, flat terrain and save petrol.

My 2 cents view

Plus highway highest offer rm38. 338 B

80% revenue from NSE

NSE 772 KM

WCEHB, 80% of wcesb, 193 km

So wcesb should worth
(193/772)*(0.8*RM3.8338)=RM7.667B

Total construction cost is RM6. 69B

80% FINANCING RM5. 352B

EQUITY VALUE WORTH =7.667 - 5.352=2.315B

Wcehb, 80% is worth RM 1.852 B

This has not added the Bandar Rimbayu.

PLUS has 19 years concession left.. WCE has 50 years..

Distance is shorter from Taiping to Bukit Raja via WCE, 248km and 83 km built by the govt is toll free.. flat terrain, ports to ports..165 km is tolled

Whereas via Plus, from Taiping to Bukit Raja is 265 km, full tolled.

http://www.intellecpoint.com/2019/10/why-fundamentals-of-wce-does-not-change.html?m=1

--- Felicity

80% debt is obviously bigger than 20% equity.
The 20% equity for wcehb is already in place after the RI. The CFO did mention in the EGM /AGM that the company can raise additional debt with the addition in equity after the rights issue.

The company mentioned above is wcesb, 20% held by IJM and 80% by wcehb.

Total project cost : rm 6.69B
80% debt financing : rm 5. 35 B
(currently only RM4. 74B)
20% equity required to be injected by wcesb:
rm1. 34B
Equity required to be injected by wcehb, 80% of rm1. 34B, is rm1. 07B
The company can still raise fund for the project, if needed, through debt, instead of equity, after the RI.

Toll collections at Section 8,9,10 and Section 4 & 5, are due to commence anytime soon, I believe. This would help the cash flow.

Leefongyong,
Yes. I attended the last EGM/AGM.
The question you mentioned was raised. The CFO answered that the company can raise more debt to fund the project should the need arise as after the rights issue, the equity portion is enough to fulfill the 20% equity.

I posted earlier :

"No more rights lah..

Actually the company only needs to fork out 20% equity for their portion. The total project cost is rm6.69 Billion, 20% equity is rm1. 338B.
WCEHB's 80% portion would be rm1. 07B

So far WCEHB had already injected
rm673. 73 millions (out of which is a rm150m term loan which would be repaid after the current rights issue). RM320 millions from this rights issue (after repayment of the rm150m term loan with rm4 million interest) will be injected as equity. The proceeds from the conversion of the 2 billion rcps in 2 years would bring in another rm80 million.

So, the total equity injected would have been RM1. 073 billion then.

The company, wcesb, could raise some rm500m-rm600m to fill up the debt portion to 80% which would be RM5. 35B. The current total financing obtained is RM4. 74B. There would be some savings from the land acquisition payments for cases now in the court.

So, no more requirement to raise fund after this RI. This was brought out in the recent AGM and the CFO did say so."

Jon,
Thanks.
So cut the long story short, do you think that at the current price, is wce share undervalued or overvalued?

Yes, Jon
Please share your latest findings and all the facts.
I hope to read it today as I would be travelling after today for 2 weeks.
Thanks.

https://www.sciencedirect.com/science/article/pii/S2095756415306024

This is another old post.
year 2008 - 2013, growth rate for the KL-IPOH route was 9.5% compared to 1.3% and 2.2%, KL - Karak and KL - Seremban respectively


QUOTE
With reference to statistics of one direction traffic flow for 2013, the average daily traffic for KL-Karak were 147.4 thousands, 206.1 thousands for KL-Seremban, and 253.2 thousands for KL-Ipoh. The growth rates for the five-year period of 2008–2013 were estimated at 1.3 percent, 2.2 percent and 9.5 percent, respectively.
UNQUOTE

I read the above post. However, it did not specifically mention NSE.

Plus annual report 2010

Average Daily Traffic Volume
2010....... .2009... ...2008....... ..2007........ 2006
1.142M...1.076M...1.029M....1.007M......0.938M

======================================

Fast forward to 2019,
Daily traffic volume on NSE on normal days is 1.7M, and 1.9M on festive seasons...

Compound annual traffic growth is close to 5%

y2k

This is rights issue, not bonus.
You seems know nothing of investing in Bursa.
Why not you go to your remisier for advice.

From Taiping to Bukit Raja via WCE, the length is 248km, out of which only 165 km is tolled, 83km is toll free. If via NSE, it is 272 km and it is tolled for the whole length.

NSE, total length is 772km against total length in Plus, 1270Km. Total length of WCE from Banting to Taiping is 316km.

So many bidders for Plus.
WCE is a smaller version of the crown jewel in Plus, the NSE.

NSE, contributed 80% of the revenue of Plus.
Plus' 1270Km, which was bid for about RM34.9B EV. NSE being 80% revenue contributor should value at RM28 B
WCE, total length 233 KM+83km, costs
RM 6.69B

wouldn't WCE be viable?