Proposal for right issues have dampened the share price . The share price b4 the announcements have started to move forward pending approval for lifting ban on bauxite. Now , the reversal.......Sian already . Shared dilution and investors have to prepare to fork out money for right issues subscribtion
has been appointed as contractor to undertake earthworks and infrastructure works for Phase 1 of the Kedah Rubber City (KRC) project (Package 1) worth RM121.5mil.
Its wholly-owned construction and civil engineering subsidiary, WZS BinaRaya Sdn Bhd, has accepted the award from the Northern Corridor Implementation Authority (NCIA), the company said in a filing with Bursa Malaysia.
WZ Satu said its unit’s scope of works covered the earthworks, infrastructure works, reservoir tank, bridge works and street lighting services.
The project, located in Padang Terap, will begin on Dec 2, 2019, and completed by Dec 2, 2021. — Bernama
WZ SATU BERHAD: (MYR0.215) Kedah Rubber City project in the pocket but… Maybank IB Retail Research
WZ Satu’s wholly-owned subsidiary WZS BinaRaya S/B was awarded a MYR121.5m contract to undertake earthworks and infrastructure works for the Kedah Rubber City phase 1 project for the Northern Corridor Implementation Authority. The project, which will commence on 2 Dec 2019, is expected to be completed by 2 Dec 2021.
While this project win is positive, execution is key to success. The group was in the red for the past two years. In FY8/19, results were dragged by its civil engineering and construction division as well as the oil and gas segment. That said, the group has an order book of about MYR756m in hand, which could keep the group busy over the next one year. As for its bauxite mining, operations have not resumed to date, pending government’s directive.
As operational risk is real, investors may want to stay on the sidelines until the group returns to profitability. It is understood that management is undertaking cost rationalizing exercises, which include but not limited to downsizing of workforce and rationalization of resources. Meanwhile, its net gearing was at 0.56x at end-Aug 2019.
Valuation wise, the stock is trading at a P/B of 0.80x, a tad below its 3-year historical average P/B of 0.85x. Note that warrants are not included in BV/sh computation as they are out-of-the-money.
Dont blindly tap in despite current price does look attractive. RI soon as the company is running out of cash flow. So expect it will be goreng to the highest possible to have better RI price despite capping at Rm0.13 as minimum. It is a risky counter but the tide will be there
Agong in the house , scare what. Me accumulate 750k shares , want to accumulate another 1mil shares. Better drop until 0.13 cepat , let me accumulate somemore
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3388 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Klse_faizan
181 posts
Posted by Klse_faizan > 2019-11-20 11:49 | Report Abuse
run bro. no good.