Land disposal recently for consideration of RM 40 million, disposal gain about RM30 million. Use to repay load and as working capital for new projects!
Today’s Stock Picks|WASCO could rise 42% as demand for oil and gas picks up Chinapress Thu, Jan 18, 2024 09:11pm - 1 hour
Brokerage: RHB Investment Bank Research Investment recommendation: Buy Target price: RM1.43 Closing price: RM1.06 (as of January 18) Earnings per share: 14 sen (estimated for FY2024) Price-to-earnings ratio: 7.44 times (FY2024) Year estimate) Dividend yield: - (FY 2024 estimate) ESG score: 2.8 points (out of 4 points)
Thanks to the strong demand for floating production, storage and offloading vessels (FPSO) and natural gas projects, which has led to an increase in recent profit potential, order volume and bidding volume, we are optimistic about WASCO (WASCO, 5142, main board energy), with a target price of At RM1.43, it is expected that there is still room for growth of 42%.
In the long term, we believe Huasike can seize the opportunities brought by the global energy transition wave and leverage engineering, procurement and construction (EPC) and pipe-coating capabilities to achieve sustainable growth in the bioenergy sector.
As of the third quarter of 2023, Huasike holds orders worth RM3.6 billion, 92% of which are related to energy services, followed by bioenergy services (8%). The company is bidding for about RM7 billion in projects, mostly in the oil and gas sector in West Asia, Australia, Africa and Malaysia.
Wasco is a Bursa energy services company with a volatile ROE over the past decade. It ranged from negative 34 % to postive 12 % with an average of negative 3%.
Over the same period the ROE of my reference Bursa energy company – Dayang - ranged from negative 27 % to positive 22 % with an average of pos-tive 5%. https://ujianehc.blogspot.com/2023/12/dayang.html
Wasco did not perform as well as Dayang. But Wasco 2023 ROE based on Sep 2023 LTM results show that it is around its historical high. And with the news about coming high crude oil prices, it may mean that the 2024 ROE will also be good.
When you compare Wasco ROE trends with the market price, you can see a reasonable correlation. But the current market price has yet to reach its historical high. Is this a short term investment opportunity? https://i.postimg.cc/TYTvSy6J/Wasco.png
WASCO posted highest revenue 800 million and highest profit 35 million since Dec 2017.
On 28th Feb 2018 WASCO reported the highest revenue, highest profit ever for QR ending Dec 2017. Share price peak at RM 1.65 and moving south after the peak.
Wasco should be bright again once the oil price going up. I think when the US begin cutting interest rate, the oil price will go up. Wasco as one of the best oil stock will benefit from it.
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....
Vincent8864
158 posts
Posted by Vincent8864 > 2023-09-26 00:05 | Report Abuse
Wasco already standing firm above MYR 1.00 out of penny stock. New projects announcement coming very soon. In Oct should have new project.