The OPV contract is expected to contribute positively to the earnings and net assets per share of the Group for the financial years ending 31 December 2018 through 31 December 2020.
The future revenue... "As at 30 September 2018, the Group, via THHE Destini Sdn Bhd has a contract value for supply, delivery, testing and commissioning of three units of OPV for MMEA of RM697.4 million."
Those invested in this company might be putting too much hope on it turning around. Given the new management team at Tabung Haji, i doubt there will be any more support coming from them.
The JV with Destini is also in doubt given that most of Destini's contracts with the government are also being reviewed. Please refer to their most recent quarter report. Revenue drop drastically from above RM100mil to only RM11mil.
Those that are interested should at least wait till you can see a meaningful revenue coming in. For the past 5 quarters revenue was only in the range of RM80k to RM420k.
If you are looking to diversify your portfolio outside of the O&G industry, I would recommend you to look at MBMR.
The company is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.6x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year 4Q17. And FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
Hope TH Heavy can proof me wrong and deliver returns to its shareholders. Management need to start delivering on their turnaround plan. There is no more excuse this time around.
Good price to buy, its just temporary set back, with the new management team at Tabung Haji chosen by Tun M, the new government will go all out to protect TH in order to gain more support from the malays.
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....
Sanofi
576 posts
Posted by Sanofi > 2018-10-16 22:02 | Report Abuse
Not good! News came out already, thheavy might get not bailout from the government! Good luck!