One of the biggest problem with OWG is, its 50x PE. Many would assume its forward PE will come down to 14x or so once all KOMTAR businesses are fully recognised. Unfortunately now is not the case. Its PE will still remain high double digit levels because 14 profitable outlets will be closed down.
The selldown yesterday is really overdone and is an indirect way of getting d CNY angpow from OWG :-)... If u stand back a little to think, d closure of 14 Affected Outlets in First World Hotel w only start from 12 Feb 2017 which is considered a relatively quiet time immediately after d CNY celebration. In fact, tht's really a suitable time indeed to shut down to make way for RWG's on-going development. To compensate for tht, there r already 11 food outlets, 14 family attractions and 5 retail outlets in total, fully operational in booming tourist locations currently. Just ask yrself this - how bad can d closure of outlets in First World Hotel get? From a biz standpoint, I wud say minimal to none. Who knows, d above closures/openings may even derive a small positive outcome in d QR later. OWG management is really smart in making strategies to temporarily close existing outlets and, to concurrently open new ones so tht there w b minimal disruptions to its biz performance. Cheers to all !!!
@Johnny Khong, what you said there is totally valid. Only problem is high PE. With high PE you expect great things, more positive surprises.... not damages. To justify and maintain the high PE, the management needs to further clarify if they get to operate in First World Hotel again once the renovation is completed and how many outlets will be given to them? FYI quite a few Komtar restaurants' earnings have already started coming in, in previous QR and there is not much improvements seen. Visitors who go to Komtar are not stranded there and they can always go home and eat in their hotel, but First World got 6000 rooms and these tourists are stucked there and are forced to eat in one of the restaurants in the hotel everyday.
Specially for Penangites from 15 February to 30 April, 2017
The TOP is pleased to announce special ticket prices exclusively for Penangites, making it an opportune time for those eager to explore The TOP to have a chance to do so. From 15 February to 15 March, Penangites will enjoy a special rates of RM48 (for adults) and RM28 (for children) for the Avenue of Adventures pass, which includes the Jurassic Research Center, while prices for the Window of THE TOP (which includes Rainbow Skywalk) will be RM38 (for adults) and RM28 (for children) from 1 to 30 April, 2017.
Both the private & public sectors are sparing no effort in promoting tourism in Malaysia, related business will definitely benefit from the flourishing smokeless industry.
Last week I went to genting and had a look at the first world area..there was no food stalls temporary closures (just the hainam and kenny rogers closed)...all the outlets still in operation...isnt the temporary closures plan has been postponed?
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Posted by pretty > 2017-01-16 16:44 | Report Abuse
Ryan is brilliant.