Stocks In Focus MY (Pensonic, WCT Hldgs, Wong Engineering Corp) – 26/01/15
Pensonic Plans New Business Model
Pensonic Holdings plans to adopt a new business model to market its latest smart power bank device under the fonebud brand, which is to offer the ownership of the fonebud brand to distributors, who had hit a consistent sales target over a two-year period.
The group noted that once the distributors are the brand name owners, they will be able to co-develop the future range of fonebud smart device products by giving the company inputs based on customers’ feedback in their respective countries.
According to Pensonic, a second generation of the fonebud with new features would be revealed in 2Q15 and the firm’s RM50 million warehouse cum design development centre, scheduled for opening this March, will serve as the headquarters to develop future generation of new smart devices.
Significance: Under the new business model, Pensonic hopes to become the product developer and supply chain manager. The fonebud smart power bank marks the first step Pensonic is undertaking to diversify from small domestic appliances marketed under the Pensonic brand, due to challenging market conditions, and the company is targeting 100,000 units to be sold in 2015.
WCT Eyes RM2b Worth Of Jobs In 2015
WCT Holdings aims to clinch RM2 billion worth property development and construction jobs this year. The group is targeting RM1 billion worth of jobs in Malaysia and another RM1 billion from the Middle East and other overseas market.
According to group executive director Kenny Wong, the firm is currently focusing on its 202.3-hectare township in Rawang which is expected to kick-start next year. Wong also noted that the WCT still has a landbank of about 404.7 hectares in the country.
On WCT’s expansion plan, Wong said the group plans to expand its property business in the northern region, particularly in Penang. However he sees the prices and competition in the region as a big challenge.
Significance: Meanwhile, Wong added that WCT is still looking at the right time to set up its first real estate investment trust (REIT) which may take a year to finalise as it is still in the initial process. The group has intentions to list its three existing malls, with an estimated total asset value of RM2 billion in the REIT, which could help unlock the values on these assets.
WECB To Diversify Into Facility Management
Wong Engineering Corporation (WECB) has inked an agreement for an 80:20 joint venture (JV) with Widad Builders, which will see it diversifying its business by participating in a facility management contract for the JB Sentral building in Bukit Chagar, Johor Baru.
Under the JV, WECB will pay a participation fee of RM20 million, a refundable performance deposit of RM100,000, and meet the working capital needs of the JB Sentral contract for up to RM12 million, within a period of 12 months.
In conjunction with the deal, WECB has proposed a special issue of 27.5 million new shares (approximately 30 percent of the issued and paid-up share capital of WECB), as well as a renounceable rights issue of up to 59.6 million new shares on the basis of one-for-two, at RM0.60.
Significance: The proposed JV provides WECB an opportunity to diversify its business as well as provide it with an alternate source of income which is relatively more stable in the next three years. The group reckons its venture into facility management business will likely contribute 25 percent or more to the net profit of the company in the future and will continue to seek and secure more facility management concessions.
http://www.sharesinv.com
Pensonic Plans New Business Model
Pensonic Holdings plans to adopt a new business model to market its latest smart power bank device under the fonebud brand, which is to offer the ownership of the fonebud brand to distributors, who had hit a consistent sales target over a two-year period.
The group noted that once the distributors are the brand name owners, they will be able to co-develop the future range of fonebud smart device products by giving the company inputs based on customers’ feedback in their respective countries.
According to Pensonic, a second generation of the fonebud with new features would be revealed in 2Q15 and the firm’s RM50 million warehouse cum design development centre, scheduled for opening this March, will serve as the headquarters to develop future generation of new smart devices.
Significance: Under the new business model, Pensonic hopes to become the product developer and supply chain manager. The fonebud smart power bank marks the first step Pensonic is undertaking to diversify from small domestic appliances marketed under the Pensonic brand, due to challenging market conditions, and the company is targeting 100,000 units to be sold in 2015.
WCT Eyes RM2b Worth Of Jobs In 2015
WCT Holdings aims to clinch RM2 billion worth property development and construction jobs this year. The group is targeting RM1 billion worth of jobs in Malaysia and another RM1 billion from the Middle East and other overseas market.
According to group executive director Kenny Wong, the firm is currently focusing on its 202.3-hectare township in Rawang which is expected to kick-start next year. Wong also noted that the WCT still has a landbank of about 404.7 hectares in the country.
On WCT’s expansion plan, Wong said the group plans to expand its property business in the northern region, particularly in Penang. However he sees the prices and competition in the region as a big challenge.
Significance: Meanwhile, Wong added that WCT is still looking at the right time to set up its first real estate investment trust (REIT) which may take a year to finalise as it is still in the initial process. The group has intentions to list its three existing malls, with an estimated total asset value of RM2 billion in the REIT, which could help unlock the values on these assets.
WECB To Diversify Into Facility Management
Wong Engineering Corporation (WECB) has inked an agreement for an 80:20 joint venture (JV) with Widad Builders, which will see it diversifying its business by participating in a facility management contract for the JB Sentral building in Bukit Chagar, Johor Baru.
Under the JV, WECB will pay a participation fee of RM20 million, a refundable performance deposit of RM100,000, and meet the working capital needs of the JB Sentral contract for up to RM12 million, within a period of 12 months.
In conjunction with the deal, WECB has proposed a special issue of 27.5 million new shares (approximately 30 percent of the issued and paid-up share capital of WECB), as well as a renounceable rights issue of up to 59.6 million new shares on the basis of one-for-two, at RM0.60.
Significance: The proposed JV provides WECB an opportunity to diversify its business as well as provide it with an alternate source of income which is relatively more stable in the next three years. The group reckons its venture into facility management business will likely contribute 25 percent or more to the net profit of the company in the future and will continue to seek and secure more facility management concessions.
http://www.sharesinv.com
