Posted by walau2u > 2015-12-11 14:18 | Report Abuse

MWE spent RM1.35 to buy Keuro. Now keuro only RM0.85, why not directly buy Keuro?

http://www.thestar.com.my/business/business-news/2013/07/12/mwe-buying-bigger-stake-in-keuro/?style=biz

Posted by sharktank > 2015-12-11 22:52 | Report Abuse

pls go lower.

Posted by Sia Ho Yuan > 2015-12-12 14:07 |

Post removed.Why?

Posted by talkcockbotakchek888 > 2015-12-13 10:40 | Report Abuse

Last week's The Edge article: MWE could be worth more

Businessman Tan Sri Surin Upatkoon, also known as KK Lau, finally made his move last week. He is offering RM391.4 million, equivalent to RM1.70 per share, to buy all the assets and liabilities of MWE Holdings Bhd.

The offer comes slightly more than two years after the company bought a 25% stake in highway concessionaire Kumpulan Europlus Bhd (K-Euro).

Upon completion of the disposal, MWE (fundamental: 0.55; valuation: 1.20) would distribute the cash proceeds to its shareholders, except for Surin and parties acting in concert with him. The company would then be delisted from Bursa Malaysia.

Through Pinjaya Sdn Bhd, Surin controls 32.62% of MWE — a company he has invested in for 39 years. But is the price of RM1.70 attractive?

Over the last 15 years, MVVVs share price had only traded above RM1.70 during a brief period in 2013 and 2014. So, the offer could provide minority shareholders with a fairly good exit.

However, MWE's net assets per share was RM2.42 as at Sept 30 — 42% higher than the offer price.

The company's jewel could be its 25% stake in K-Euro (fundamental: 2.40; valuation: 0.90). But its core earnings-generating asset is United Sweethearts Garment Sdn Bhd. It also owns MWE Golf & Country Club Bhd and MWE Properties Sdn Bhd, apart from a whole host of other assets.

As at Sept 30, MWE had cash balances of RM113.65 million, short-term borrowings of RM153.41 million and long-term debts of RM51.82 million. Its total assets amounted to RM842.73 million.

Based on last Thursday's closing, K-Euro had a market capitalisation of RM847.3 million, meaning that MWE's 25% stake is worth about RM211.82 million.

K-Euro has 80% equity interest in the RM6 billion West Coast Expressway (WCE), which spans 316km and links Banting in Selangor to Changkat Jering in Perak. Three months ago, the company's chief financial officer, Lyndon Felix, said WCE's revenue contribution to K-Euro would commence in 2018 but the full impact would only be seen in 2019.

Together with its 20% partner, 11M Corp Bhd, K-Euro has a 5o-year concession for the WCE and an additional 10 years if the targeted internal rate of return is not met. K-Euro also has the Bandar Rimbayu township development, which is located between Kota Kemuning and Bandar Saujana Putra. Measuring 1,878 acres, its total gross development value is about RM11 billion.

To put things in perspective, K-Euro will be worth mole once the WCE commences operations and earnings from Bandar Rimbayu start trickling in, which in turn would also increase the value of MWE's 25% stake in K-Euro.

According to a filing with the Companies Commission of Malaysia, MWE’s textile asset, United Sweethearts, reported a net profit of RM10.85 million on revenue of RM229.9 million for its year ended March 2015. The company had reserves of RM42.75 million for the year in review.

At MWE’s annual general meeting in September, United Sweethearts managing director Tang Chong Chin was quoted by the media as saying that the garment maker was eyeing an additional revenue of USS40 million (RM166.67 million at the exchange rate then) for the financial year ending March 31, 2017, from its new plant in Vietnam He said the plant is expected to commence operations in the middle of next year and start contributing to revenue in the 2017 financial year.

The Vietnamese plant will add 42 lines to Sweethearts’ current 26 lines, he revealed. The aggressive expansion plan augurs well for United Sweethearts’ future earnings.

As for MWE's plantation assets, about two years ago, Fauzi-Lim Plantation Sdn Bhd was pegged at a price of RM93 million when privately held Survival Access Sdn Bhd was keen to acquire it, but Yayasan Islam Kelantan scuttled the deal.

Meanwhile, MWE Golf & Country Club carried a net book value of RM43.89 million as at end-March. MWE also has at least two buildings in George Town, Penang, which collectively have a net book value of more than RM52 million.

For the six months ended Sept 30, the company suffered a net loss of RM52.2 million on revenue of RM174.38 million. The losses were due to an impairment loss of RM58.1 million provided for its investment in K-Euro, being the effect of the mark to market of its share price as at Sept 30 plus a one-off impairment of RM12.3 million for an overseas unquoted investment.

That said, MWE has been profitable in the past 10 financial years. Should things go well, FY2019 would be a robust year for the company once its associate, K-Euro, starts toll collections and its garment operation picks up.

Surin probably sees more value and growth potential in MWE's assets and liabilities than the company, which was founded by his father. MWE was listed in 1974 and Surin joined the board in July 1976 at the age of 28. Will his offer receive widespread acceptance?

Posted by walau2u > 2015-12-13 11:19 | Report Abuse

MWE's jewel could be its 25% stake in Keuro.

MWE spent RM1.35 to buy Keuro. Now keuro only RM0.85, why not directly buy Keuro?

http://www.thestar.com.my/business/business-news/2013/07/12/mwe-buying-bigger-stake-in-keuro/?style=biz

Posted by calvintaneng > 2015-12-13 15:05 | Report Abuse

SEE beyond the obvious. SEE further into the future.

How to SEE?

3 Kinds of SEEING

1) EAGLE SEES VERY VERY FAR FROM THE POSITION IN THE CLOUDS. EAGLES could see a tiny speck on the earth 5 kilometer away and make it out to be a rabbit.

2) The Other Raptors and Flying Birds also can See. See within 1 kilometer

3) The worse are chickens on the ground which can only see less than 100 meter away.

So SEE beyond what Surin SEES in MWE.

Calvin bought KEuro at only 27 cents. KEuro was dragged down by Talam which Crashed by 90% from Rm1.00 to only 10 cents & dropped into PN17.

When Calvin saw IJM buying into KEuro Calvin bought both KEuro at 27 cents & Talam at 10 cents. Calvin reasoned, "If IJM dare to put its leg into KEuro & KEuro in turn owns Talam both should be Ok"

Why IJM?

BECAUSE CALVIN SAW IJM's TOP OWNER IS EPF & in turn Govt Owned. So won't die lah. Calvin told Johor sifu & others to buy Talam & KEuro then. But seeing PN17 very few got guts to buy.

Then was then.

When KEuro doubled & tripled in prices all the way up from 80 cents to over Rm1.00 Calvin Sold & Sold all the way up.

Why Sell KEuro?

Because All The Value of KEuro already factored into its price surge.

So Surin Overpaid for KEuro.

Then why Surin wants to take MWE private?

The MEAT is in the High Profit Textile Factories in Vietnam. More so due to TPP

Another overlooked jewel is MWE's 5% in MphbCapital
This very important angle was overloorked by The EdgeDaily analysts.

Surin also own 32% of MphbCapital diectly. So with MWE's 5% Surin would have a total of 37% in MphbCapital.

Why MphbCapital?

Did Surin SEES Something in MphbCap's hidden assets in the landbanks of Penang, Imbi, Gombak & Pengerang?

Why the sudden offer to take MWE private when last quarter result was so bad?

And Why did JCorb wanted to take Kulim private when Kulim's results were also no good.

The Secret Revealed by Calvin Tan Research here

BECAUSE BOTH JCORP & SURIN SEE VERY CLEARLY THE IMMENSE VALUE OF THOSE LANDS IN PENGERANG'S RAPID.

Hmmmm???

Calvin already visited Pengerang twice.
Latest news from IJM Land people from Seabana Cove:

There is a NEW HIGHWAY ALREADY BUILT FROM Desaru - Ringgit Road

LINKING DIRECTLY INTO THE HEART OF PENGERANG'S RAPID

NEW HIGHWAY LINKING DIRECTLY INTO PENGERANG'S RAPID? By Passing Sungai Renggit?

WOW! WOW! WOW!

If True then MphbCapital's Lands are Just Beside Rapid

MphbCap share holders will be REALLY KAYA & KAYA LEOW!!

Wait?

Let Calvin Tan Research VERIFY This By A Third Trip to BOOMING PENGERANG REGION

Stay tuned....

The Flow of Information Precedes The Flow of Wealth

Be in the KNOW