-Salcon's turnaround story of securing recurring earnings has begun to materialize with the first cellular site rental contract between VBT with U Mobile in mid-Aug. -VBT had earlier inked an MOU with Celcom and could sign an official contract in the short term -attractive 5-6% yield (RM0.60) -net cash balance of RM165m (24 sen/share), representing 41% of its market cap.
when Husni Finance Minister had announced DEVELOPMENT EXPENDITURE will be increased..Definitely SALCON will receive some..Plus this company track record is impressive..
Wonder how and what basis that CIMB Research used to downgrade this counter? Somemore.how CIMB dig the VBT information, which was not made public before? Suspicious...
Based on the latest report from CIMB dated 22Oct15, the TP is reduced negligibly 0.98 to 0.95. The ADD call is still maintained. I do not read this as a downgrade.
Thursday, 29 October 2015 Salcon unit to generate RM4-RM5mil from new contracts
KUALA LUMPUR: Salcon Bhd’s joint venture entity, Volksbahn Technologies Sdn Bhd (VBT) expects to generate RM4mil to RM5mil per annum from two new contracts it signed recently.
The water and wastewater infrastructure specialist confirmed in its Bursa Malaysia filing that VBT signed two 10-year contracts with U-Mobile Sdn Bhd and Celcom Networks Sdn Bhd for mobile site rental for shared infrastructure on Aug 6, 2015 and Sept 3, 2015 respectively.
This follows a StarBiz report on Oct 26 on Salcon getting two telecom contracts, and may see lower-than-expected contract values for its fibre optics arm.
The company said in its filing on Thursday that VBT entering into the contracts did not warrant an announcement to the local exchange.
“The site rentals are of revenue nature to VBT and are in the ordinary course of business of VBT,” it said.
Also, the contracts would not have a material effect on Salcon’s financials for the years ending Dec 31, 2015 and 2016.
VBT is a fibre-optic cable layer and communication technologies service provider, and had been granted exclusive rights to lay fibre optic cables on Prasarana Malaysia Bhd’s rail network and premises for up to 15 years. Salcon bought a 50% + 1 stake in VBT for RM23.5mil in May 2014.
S’gor to build two treatment plants costing RM778m
SHAH ALAM: The Selangor government will develop new water source projects to mitigate the possibility of supply shortage in the state as the Langat 2 Water Treatment Plant project is not expected to be completed until the middle of 2019.
Menteri Besar Azmin Ali said the new projects to be developed at a cost of RM778 million were the Labohan Dagang Water Treatment Plant and the Semenyih 2 Water Treatment Plant in Jenderam Hilir.
He said this when tabling the state’s 2016 budget of RM2.88 billion at the state assembly sitting here today.
“From Oct 15, Pengurusan Air Selangor Sdn Bhd, the state government’s wholly-owned subsidiary, had officially taken over the operation management of Syabas (Syarikat Bekalan Air Selangor Sdn Bhd) and Puncak Niaga Sdn Bhd.
“Insya-Allah (God willing), there will be no more water rationing in Selangor,” he said.
Azmin also informed the assembly that the state government would begin its comprehensive study on the development of the Klang river involving an allocation of RM15 million next year.
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....
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Posted by bsngpg > 2015-08-24 21:39 | Report Abuse
Scarlett and Rhett