OTHERS MUHIBBAH ENGINEERING (M) BHD ("MEB" or "the Company") (i) Proposed Renewal of Authority for Share Buy-Back (ii) Proposed Renewal of the Existing Shareholders' Mandate and Proposed New Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature
Plane sifu, the Projected Forwarded P.e. is only 5.8% .... don't u think that GK will advanced to rank top 3or 4 at least from currently # 6 to sit after ; Ijm> Gamuda> Gkent or Ekovest ? (Higher rank will have rating advantage, isn't it ?)
Since u are in the Banking sector, don't u agree Gkent should opt for a re rating this mid 2017 ? Furthermore, it's peer has an forwaded average of 15 - 27 p.e.
MY CONCLUSION IS 100% POTTENTIAL IS FAR TOO CHEAP ... 150% may fit my argument for a ranking # 3 or 4 by mkt. Cap backed by highly visible earning.
SO GO BUY MORE , that why moneySIFU fully bet on GK.
Dividing the RM6.2bn orderbook by 4 to reflect in FY18 revenue may be flawed. Why are u so sure that exactly 1.55bn revenue will be earned in FY18 instead of FY19,20 or 21? This will affect your valuation as you are using PE15x for FY18
One of their (PDP) KPIs (key performance indicators) is managing the VOs (variation orders); if they cannot manage it, then we'll deduct a certain percentage of their fee," he said.
The PDP will receive a fee of 6% of the total aggregate work package contract value. Should the eventual total cost of the project be less than or equal to the target cost, the PDP will be entitled to the full fee. ---------------------------------------------------------------------------------
is that correct to use gross margin of 20% for coming year estimation? The JV only receive 6% management/consultation fee for the 9bil LRT3 contract. Correct me if i'm wrong.
Furthermore, Gkent have Below advantage compare to the peer. 1) Net cash, RM372 millions, which mean RM1.00 per share. 2) High ROE, 26% ( very difficult for construction business ) 3) East Coast Rail Link, Southern Double Track and High Speed Rail contract on the corner. 4) Increase of water metering productivity, Gkent is one of the biggest water meter manufacturer in the world and own largest hot brass forging facility in South East Asia 5) Mr. CEO did mention by introduction the new water meter ( Polymer Meter & Smart meter ) , the revenue of water meter department expected to boost boost by 5 times by 3 years time.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by wangge > 2017-04-07 18:14 | Report Abuse
Hi all, those Ekovest's Leavers, exLovers n Lovers, pls read Wangge message with your heart.
GKent's RM6.2B, RM4.5B is from PDP JV with MRCB for LRT 3 which earn 6% management fee. 6% of RM4.5B is RM270M, 4 years annualized is RM67.5M
Will be good fine tuning the forwarding PE again.