The Public-Private Partnership Masterplan 2030 (PIKAS 2030) launched in September signals the Government's intention to expedite infrastructure expansion by leveraging on private sector resources. Key potential projects (which probably never made public headlines) highlighted under PIKAS 2030 include the Kuantan-Singapore Expressway, expansion of the West Coast Expressway (Banting-Nusajaya), Klang Logistics Corridor, Kuala LumpurKlang Expressway, and Pasir Gudang Expressway among others.
In the long run its definitely a good news If they could expedite completion of existing sections before embarking on the extension towards Johor, it may not dampen the near term prospects so much
Banting to Johor is a long long way to go, perhaps another 5 years at least lol But it is exciting to think of perhaps Banting to Port Dickson to Melaka to Johor
Sector Focus: Despite the ongoing market volatility, we believe the weaker ringgit at RM4.375/USD could lift sentiment in export-oriented sectors such as Gloves and Technology. Additionally, the Plantation sector is likely to trend positively in line with the CPO price rally, while the O&G sector could benefit from the rebound in oil prices amid unresolved tensions in the Middle East. For defensive plays, we favour the Consumer sector, with companies like MRDIY and 99SMART being attractive options.
Revenue improved by 100 % QoQ from RM75.570m to RM151.162m and net loss reduced by 59% QoQ from (25,858m) to (RM10,584m)
During the quarter under review, Section 1 (Banting – SKVE) of the WCE Project opened for traffic on 31 August 2024 and toll collection commenced on 30 September 2024. The recent openings of Sections 1, 6 and 11 have significantly amplified WCE’s daily traffic volume, whereby the sectional average daily traffic for the current financial period increased by a significant 83% compared to FY2024. During the Raya festive period in April 2024, the traffic volume achieved a peak of 350,000 sectional average daily traffic, a significant 150% surge from the previous record in December 2023 of 140,000 sectional average daily traffic.
The concession segment has reported a loss before tax in the current quarter mainly due to interest expense incurred in relation to project financing for completed sections of the WCE Project. In accordance with MFRS 123, an entity shall cease capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use is complete. The interest expense was capitalised as part of the infrastructure development expenditure prior to the completion of construction works. Upon the completion of sectional construction, the interest expense for these sections will be charged to the statement of profit or loss. The Group is expected to incur losses in the early years of toll operations due to the cessation of capitalisation of interest expenses for completed sections. Despite the loss before tax, the Group recorded an earnings before interest, taxes, depreciation and amortisation (EBITDA) of RM38.2 million for 2Q FY2025 (2Q FY2024: RM10.6 million), indicating the Group is profitable at an operating level.
The construction of Section 2 (SKVE – Shah Alam Expressway (KESAS)) has been completed and is currently at the inspection stage with an opening date imminent. The completion of this section will also provide a connection to the Shah Alam Expressway (KESAS), which would enhance the accessibility and connectivity of these areas along the alignment.
The construction for the final 3 sections namely, Section 3 (KESAS – Federal Highway Route 2), Section 4 (Federal Highway Route 2 – New North South Klang Straits Bypass (NNKSB)) and Section 7 (Assam Jawa – Tanjung Karang) is currently ongoing.
Going forward, the additional sectional toll revenue is expected to further improve the future financial performance of the Group in terms of cash flows and operating results. In the long run, once the entire alignment of WCE is fully operational, the Group expects a shift towards profitability as revenue growth outpaces interest cost.
The exercise period of the Warrants comprises the period commencing from the issue date of the Warrants up to the market day immediately before the 5th anniversary of the issue date of the Warrants ("First Exercise Period") and the period commencing from the 5th anniversary of the issue date of the Warrants up to the market day immediately before the 10th anniversary of the issue date of the Warrants ("Second Exercise Period") ("Exercise Period"). The Warrants entail a step-up pricing mechanism whereby the exercise price for the First Exercise Period is RM0.39 and the exercise price for the Second Exercise Period is RM0.45. Any Warrants not exercised during the Exercise Period will thereafter lapse and cease to be valid or have any effect. This Announcement is dated 22 November 2019.
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....
9131
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Posted by 9131 > 2024-09-17 17:07 | Report Abuse
NICE CLOSING