They press down the mother share to have premium on warrant so they can convert it. It shown that the shareholder have confident on the prospect. $$ from the conversion will be use for expansion or business opportunity.
Anyone know if below disposal does provide significant boost to engtex next year earning?
(ii) In November 2016, a wholly-owned subsidiary entered into an agreement with a third party to dispose of a parcel of industrial freehold land located at Mukim Senai, Daerah Kulaijaya, Johor for a total cash consideration of RM11,644,150, of which RM1,164,415 was received as deposit. The transaction was completed subsequent to the financial year end. (iii) In November 2016, a wholly-owned subsidiary entered into an agreement with a third party to dispose of a parcel of industrial leasehold land located at Mukim Kapar, Daerah Klang, Selangor for a total cash consideration of RM6,647,920, of which RM664,792 was received as deposit. The transaction is pending completion.
If u compare with last 10 years, p/b ratio around 0.7 and good eps and roe. And company start to pair down it debt. Just put for mid term and you will get something for return. Not just today vol quite big, recently there were trading vol which are good indicator. Plus market share increasing every years. It is a growth company. Good luck all.
Some useful information from the news article released yesterday 27March 2017. First read through it.....
Engtex secures RM60m contracts in Q1, tenders RM300m jobs
KUALA LUMPUR: Pipe manufacturer Engtex Group Bhd has secured five pipe supply contracts worth RM60mil in the first quarter of 2017 and it is also tendering for more than RM300mil jobs nationwide.
It said on Thursday the contracts were to supply mild steel cement-lined (MS) and ductile iron (DI) pipes to various government water and infrastructure projects in Johor, Pahang, Kedah and Selangor.
These contracts are estimated to be delivered within six to eight months, it said.
Engtex group managing director Datuk Ng Hook said the new contracts placed the company on a strong footing for 2017 and raised its orderbook to RM170mil as at March 31, 2017.
“Most of these are set to be recognised in the financial year ending Dec 31, 2017 (FY2017),” he said.
Ng said Engtex was also tendering for more than RM300mil worth of projects nationwide. These include new pipe supply contracts for residential and infrastructure projects.
Backed by our impeccable track record of product quality and timely delivery, we are optimistic of beefing up our orderbook to sustain our financial performance for the rest of the year.”
He added the MS pipe plant has a production capacity of 42,000 tonnes (MT) per annum and a utilisation rate of about 70%, as at Dec 31, 2016. Engtex had also invested RM7mil to expand the capacity to 66,000 tonnes.
“The MS plant’s ample capacity, ability to produce the largest-diameter MS pipe of 3020mm, and strategic location in the Klang Valley makes us well placed to supply our pipes to the vast number of ongoing developments in a timely manner,” he added.
As for its DI pipe plant in Kuantan, Ng said Engtex was investing RM8mil capital expenditure plan to expand the production capability to produce larger diameter pipes from the current 800mm to 1200mm.
The plant is set to be completed by end-2017 and position Engtex to be the largest diameter DI pipe manufacturer in Malaysia.
Now, if we use the same Gross Profit Margin of Choo Bee of ~ RM500 per ton of MS Steel Pipe from last quarter results, the contribution from the pipes segment alone would be reaching "3.7 Million profit" !!
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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....
HuatRex
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Posted by HuatRex > 2017-04-18 12:59 | Report Abuse
Engtex is under accumulation phase. I believe it will move very soon