Posted by moneySIFU > 2017-01-03 06:33 | Report Abuse

We have also set the target to become the top 30 listed companies on Bursa Malaysia within five years. This means that our market capitalisation has to hit RM10bil within five years, from the current RM2bil. It is achievable based on our growth.

Posted by moneySIFU > 2017-01-03 06:33 | Report Abuse

We are doing very well. Our order book is very healthy, with total outstanding external order book of RM4.89bil as at November 2016.

The results for the year ending June 2017 will be much better. You can see from our revenue growth. It’s almost doubled in 2016.

http://klse.i3investor.com/blogs/moneymoney/112909.jsp

Posted by CKNYAM > 2017-01-03 08:38 | Report Abuse

Good article with so much details

Posted by John Lu > 2017-01-03 08:56 | Report Abuse

2.35 x 5 = rm11? Buy!!

Posted by Bruce88 > 2017-01-03 08:59 | Report Abuse

This means that our market capitalisation has to hit RM10bil within five years, from the current RM2bil. It is achievable based on our growth.

A very high target, achievable ? I doubt..haha

Posted by moneySIFU > 2017-01-03 11:13 | Report Abuse

I am not sure about 5 years, but 5 billion market capitalisation in 3 years is very likely achievable to me.

Posted by Ricky Yeo > 2017-01-03 17:05 | Report Abuse

Let's dissect what KC is saying. He wants market cap to achieve 10 bil in 5 years, or 500% from current market cap.

Gamuda and IJM are not similar to Ekovest but comparable, both have 11 bil market cap, with profit around 500-600 mil. To get to that level, Ekovest needs to grow income at CAGR 50%+ for next 5 years non-stop to justify 10 bil cap.

How would one achieve that? That would be either through margin expansion or volume growth or mix of both. Correct me if im wrong, Ekovest is involved in construction and operating toll highway and property development. Margin expansion sounds more reasonable on property development due to high margin, most developers can achieve 15-20% margin, while it is harder for construction and nearly impossible for toll, unless they decide to raise toll fees by 10-30% per year. Even if we consider a 20% margin on property end, with their 7.8 bil GDV, they would have to burn through all of that in order to hit the target, with no more landbank left on year 6 on wards.

Most confusing of all is they wants to maintain dividend while growing 50% yoy. That's achievable if you have ROE of 80%? Again falls back to margin expansion or volume growth, or else how does a company can manage to growth profit for 300% within 5 years with roe less than 20% and still decide to pay dividend?

Posted by soon9913 > 2017-01-03 17:55 | Report Abuse

He will try his best to achieve. there is no guarantee one mar.

Posted by Flintstones > 2017-01-03 18:34 | Report Abuse

Sensible post from JT Yeo. As always, company CEO always talk up their big plans during interviews. Maybe they saw a young and hot lady reporter interviewing them and cant help themselves to brag here and there

Posted by valuelurker > 2017-01-03 18:45 |

Post removed.Why?

Posted by hissyu2 > 2017-01-03 21:07 | Report Abuse

Ricky, if Ekovest is increasing the market cap with profit, it is not possible. What about after duke3 is done and REIT got IPO? it shall boost up the NTA greatly. However, 10b in 5years still very blow cow la~~ Anyway, in long term, i believe it could achieve much better-than-expected growth, CAGR of 20% shouldn't be a big problem. :)

if it manage to achieve 5b market cap in 3 years, i would be more than happy. :)

Posted by hissyu2 > 2017-01-03 23:04 | Report Abuse

i just found that moneysifu has the same "tp" with me, 5b market cap in 3 years :)

Posted by moneySIFU > 2017-01-07 00:49 | Report Abuse

hehe, good one, hissyu2