XINHWA has a hybrid business model. Being hybrid enable XINHWA to effectively ride on oil price cycles with resilient earnings. When oil price rises, XINHWA benefits from increased O&G contracts flows from clients such as MHB, MISC, KNM, PANTECH and when oil price slumps, transport activities are robust due to high demand and low cargo transportation costs, as well as government infrastructure materials transportation projects and warehousing.
Award of Contract: Xin Hwa gets contract renewal from Port of Tanjung Pelepas
The contract is for the supply of prime mover and drivers for housekeeping and other ancillary yard movement services at the Tanjung Pelepas Port.
In a bourse filing, Xin Hwa said the letter of award for the contract renewal was received on Jan 11 and that the value of the contract is dependent on the volume of services required by PTP, based on the agreed flat rate of RM9.20 per move.
Xin Hwa has been providing services to PTP since 2010, and its business transactions with PTP for the financial year ended Dec 31, 2015 (FY15) contributed approximately RM5.54 million to the group's revenue that year, the filing read.
The duration of the renewal is for one year, from Jan 1 to Dec 31, 2016, with an option for another year's renewal at PTP's sole discretion.
Xin Hwa expects the renewed contract to contribute positively to its earnings and net assets per share for FY16.
RECAP: Award of Contract: Xin Hwa gets contract renewal from Port of Tanjung Pelepas
The contract is for the supply of prime mover and drivers for housekeeping and other ancillary yard movement services at the Tanjung Pelepas Port.
In a bourse filing, Xin Hwa said the letter of award for the contract renewal was received on Jan 11 and that the value of the contract is dependent on the volume of services required by PTP, based on the agreed flat rate of RM9.20 per move.
Xin Hwa has been providing services to PTP since 2010, and its business transactions with PTP for the financial year ended Dec 31, 2015 (FY15) contributed approximately RM5.54 million to the group's revenue that year, the filing read.
The duration of the renewal is for one year, from Jan 1 to Dec 31, 2016, with an option for another year's renewal at PTP's sole discretion.
Xin Hwa expects the renewed contract to contribute positively to its earnings and net assets per share for FY16.
XINHWA has a hybrid business model. Being hybrid enable XINHWA to effectively ride on oil price cycles with resilient earnings. When oil price rises, XINHWA benefits from increased O&G contracts flows from clients such as MHB, MISC, KNM, PANTECH and when oil price slumps, transport activities are robust due to high demand and low cargo transportation costs, as well as government infrastructure materials transportation projects and warehousing.
. Large-scale infrastructure projects such as the MRT, LRT, PBH and HSR will proceed.
The MVV (Sime Darby Bhd-Employees’ Provident Fund), the CCC (Malaysian Resources Corp Bhd) and the HSR will be implemented on a public-private partnership basis, hence private investments will reduce the burden on the government’s finances.
Meanwhile, Rapid will continue to be developed by Petroliam Nasional Bhd due to committed investments in building the refinery and oil storage facilities.
The MRT, LRT and PBH will be funded by government-guaranteed bonds raised by DanaInfra Nasional Bhd, the government’s special-purpose vehicle to finance infrastructure projects.
Hence, it is not affected by the cut in development expenditure since DanaInfra’s government-guaranteed bonds are just a contingent liability, of which repayment and debt servicing will come from operating expenditure in the future. (The Edge)
Q1 2016 net profit is disappointing, for sure price is going south, base on same performance for full year, price per share for fair PE maybe down to RM0.75 only.
Guys, investment we are looking at earning visibility. Company can give all kind of story, investor need to value base on industry PE and earning forecast. If the earning are eroding because of slow down of market and margin squeeze, that will certainly reflect on share price. We can continue to keep the share if we like it, but u can sell if you foresee the earning margin is loosing ground and buy back later at cheaper price. To me the game is over, I will come in to pick up only if the price is back to 70cents, if don't believe wait and see the full year result, market will react naturally to the earning of the company
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....
i_investor
934 posts
Posted by i_investor > 2016-01-08 15:48 | Report Abuse
too early! push up wave still on !