Background:
- Established since 14 January 1981 (30 yrs in business) as WCT Earthworks & Building Contractors Sdn Bhd.
- WCT became a public company on 1 April 1994 and made its debut on the Malaysia Stock Exchange on 16 February 1995.
- The Company assumed its present name WCT Berhad since 5 June 2008 to reflect the diverse businesses within WCT Group of Companies.
- Other than in Malaysia, WCT has also successfully established a strong presence in other parts of the world ~ U.A.E, Bahrain, Qatar, Oman, India and Vietnam
- Malaysia ~ Sepang F1 Circuit
- Bahrain International Circuit
- Abu Dhabi F1 Circuit (Contract Value approx. RM3.3billion)
- New Doha International Airport, Qatar (Contract Value approx. RM3.27billion)
- New Low Cost Carrier Terminal (KLIA2) Integrated Complex, Sepang, Malaysia
- Government Administrative Building, Doha, Qatar (Contract Value approx. RM1.59billion)
Toll Concession (Build, Operate and Transfer ~ BOT):
| BOT Concession |
Location
| Concession Period | Form of Receipts | WCT? Portion |
| Swarna Tollway (Tada - Nellore Highway) | Andhra Pradesh, India | 2004 - 2032 | Toll Collection | 21.60% |
| Emas Infrastructure (Durgapur Expressway) | West Bengal, India | 2005 - 2020 | Semi-Annuity Payments by Government of India | 30% |
| Mapex International (Panargarh-Palsit Expressway) | West Bengal, India | 2005 - 2020 | Semi-Annuity Payments by Government of India | 30% |
Current Share Price: 2.00
My View:
This share has drop around 45% from 3.63 (Jan 2011).
In 2009, WCT's shares have taken a dive when UAE's Meydan LLC cancelled the AED4.6 billion (RM4.6 billion) contract with WCT Bhd and Arabtec Construction LLC to build the racecourse. During that time, the share drop to approx. 1.00.
In less than two years, WCT went up to 3.63 (263% increased). That's a huge profit!! ^_*
The reasons I consider this share for investment are as follows:
- Value drop around 45%
- Net asset per share is 1.73 ~ slightly lower than current share price.
- Dividends pay out approx. 5% per annum ~ higher than banks FD a/c which is around 3% now ~ they pay 5sen dividend almost every two quarter, even when their share price drop to approx. 1.00 in 2009
- One of the major shareholders is EPF with approx. 16.12% ~ this share Rank No. 6 on EPF's List of Top 30 Equity Investments
- Long term cash flow from India for the 3 highways as mentioned above.
Recently, Malaysia Airports Holdings Bhd (MAHB) has signed a concession agreement with WCT Bhd and Segi Astana Sdn Bhd (SASB) for privatisation of the construction, development and financing of the integrated complex at KLIA 2 under a 25-year concession, with an option to extend for another 10 years.
SASB is wholly-owned by WCT Land Sdn Bhd, which in turn is a wholly-owned unit of WCT.
Under the agreement, SASB will undertake construction of the integrated complex which will comprise a transportation hub, a commercial complex consisting of a shopping mall with a net lettable area of about 350,000 sq ft; and car parks with 6,000 parking bays.
Thus another long term cash flow for WCT.
Keep an eye on this share.
SASB is wholly-owned by WCT Land Sdn Bhd, which in turn is a wholly-owned unit of WCT.
Under the agreement, SASB will undertake construction of the integrated complex which will comprise a transportation hub, a commercial complex consisting of a shopping mall with a net lettable area of about 350,000 sq ft; and car parks with 6,000 parking bays.
Thus another long term cash flow for WCT.
Keep an eye on this share.
If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum. For your information, Maybank is currently having an offer from 9 September 2011 until 9 October 2011 ~ up to 4.18% p.a. on Fixed Deposit a/c. [The Promotion]
For similar price, you might consider my previous blog for YTL Power:
YTL Power ~ A Low Risk & Sustainable Share?
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