I think HWGB will be the next Press Metal. We would see turnaround in its net profit and to go into full swing starting next year and thus, this would reflect in its share price ahead of the results.
This current relatively low share price as compared other small caps (that have fully valued) presents huge potential oppportunity for investors to ride undiscover gem while most of people go on holidays.
We could see a sudden resurgence of interest in the stock sooner than later.
I know it sounds crazy but I am done with thorough analysis on the recent annoucements/proposals,
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=83223&name=EA_GA_ATTACHMENTS
and I believe its past of nightmares are over. Forget the past and move forward!
Don't overlook and underestimate small company. Press Metal also started from scratch and made its listing debut on the second board in 1993.
The new chapter of life is starting next year with its expansion story, cost savings and production efficiency and its new business venture into duty and tax free shop business.
"Successful next year and onwards is fruit of the past years knowledge and technical know-how and the recent proposals"
HWGB and its subsidiary companies is principally engaged in the provision of the following businesses:-
(i) Manufacturing of moulded power supply cord sets;
(ii) Trading of wires and cables;
(iii) Tin mining; and
(iv) Travel services.
The company recently annouced to undertake the following:
Proposed share consolidation involving the consolidation of every 4 existing ordinary shares in HWGB into 1 ordinary share
Proposed diversification of HWGB into the travel retail business pursuant to the shareholders‟ agreement dated 25 September 2017 entered into between the Company and Dufry International AG, a member of the Dufry group;and
Proposed private placement of up to 77,624,400 new Consolidated Shares representing up to 30% of the issued shares in HWGB after the Proposed Share Consolidation.
Increase profit contribution from new business
On 25 September 2017, HWGB and Dufry International AG executed a Shareholder's Agreement to regulate and govern their rights and obligations as shareholders in a newly established company (JVCO) for the operation of a duty and tax free shop in Genting Highlands resort, Pahang.
Partnering with the right partner, the Dufry group is a leading global travel retailer owning more than 20% of the market share in airport retail and has with operations in approximately 62 countries, operating over 2,200 shops located at airports, railways, cruise liners, seaports, and other touristic locations. The Dufry group has more than 60 years of travel retail experience and Dufry Ltd is publicly listed in Switzerland and in Brazil, with the headquarters located in Basel, Switzerland.
The management anticipates that with this new business venture with Dufry, this business segment may potentially contribute more than 25% of the net profits and/or net assets of the Group.
JVCO's duty and tax free store, to be named “Plaza by Dufry”, is to be located on T2B-3A, Level 3 of SkyAvenue mall, Genting Highlands resort. JVCO targets for the commencement of business of the store to be by mid January 2018.
The business venture with Dufry is an attractive business proposition in the face of steady visitor traffic in Genting Highlands over the past 2 years. The significant redevelopment and expansion under the Genting Integrated Tourism Plan at Resorts World Genting, is expected to elevate the quality of guest experience and product offerings at the resort.
Resorts World Genting welcomed 20.2 million visitors in the financial year ended 31 December 2016, an encouraging 4% growth from the previous financial year ended 31 December 2015 (Source: Genting Malaysia Berhad - Press Releases for the second & fourth quarters financial period ended 31 December 2016).
Note:- Resorts World Genting has embarked on a 10-year master plan to reinvigorate and transform Resorts World Genting under the Genting Integrated Tourism Plan. This includes the development of the world‟s first Twentieth Century Fox World theme park and SkyAvenue - a lifestyle mall at the resort (Source: Genting Malaysia Berhad Press Release for the fourth quarter and financial year ended 31 December 2016)
Raising funds to maintain competitiveness
Strong order for its copper rods and operates efficiently.
The purchase of copper rods is to increase the inventory level for production of wires and cables, allowing the manufacturing division to plan for a more efficient production, accept more orders, shortening the delivery period of finished goods and yield a higher contribution.
Based on the available proceeds and the copper price of USD6,823 per metric tonne as quoted on the London Metal Exchange as at 31 October 2017 plus premium of USD243 per metric tonne for smelting charges into copper rods, the Board intends to purchase up to 298 metric tonnes of copper rods. Customers make purchases from the Group by way of purchase orders.
The Group consumes an average of 200 metric tonnes of copper rods per month. As at 31 October 2017, the Group‟s inventory level of copper rods is 195 metric tonnes, which is less than one month production consumption while the lead time of copper rods delivery is approximately 2 weeks.
To mitigate the risk of volatile copper price fluctuations which will affect the pricing of moulded power supply cord sets and wire and cables, the Group‟s customers typically place advanced orders of not more than 2 months.
The Board has also undertaken manpower cost reductions and efficiency improvements to increase the performance in the Group‟s manufacturing of moulded power supply cord sets and trading of wire and cable divisions. Production cycles were semi-automated and old machineries were replaced in stages to improve efficiencies.
Putting all these together, this segment could see better both topline and bottomline growth going forward.
Working capital for exploring further tin mining
The working capital for tin mining processing is to purchase tailings, hardwares and spare parts for the processing plant, hire lorries and machineries for tailings transportation, industrial diesel and site operating expenses.
On 15 March 2016, IPS International Process Solutions (Pty) Ltd was engaged to conduct a geophysical survey using the “ELFIS” system, an electromagnetic gradiometry device to detect minerals below ground level. The geophysical survey was carried out at certain targeted areas at the tin mining site and 6 anomaly areas of tin ores were detected. In order to verify the tin deposits, the Group needs to engage a drilling contractor to conduct the drilling and obtain samples for analysis. The estimated cost for the proposed drilling works is approximately RM300,000.
The estimated expenses consist of fees payable to the relevant authorities, advisory and placement fees.
In a nutshell
They have learned the past and the Company has a lot of room and opportunities to grow. They just need to work at it now.
Investors will benefit this with long-term horizon.
http://klse.i3investor.com/blogs/huathuathuat/142046.jsp
This current relatively low share price as compared other small caps (that have fully valued) presents huge potential oppportunity for investors to ride undiscover gem while most of people go on holidays.
We could see a sudden resurgence of interest in the stock sooner than later.
I know it sounds crazy but I am done with thorough analysis on the recent annoucements/proposals,
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=83223&name=EA_GA_ATTACHMENTS
and I believe its past of nightmares are over. Forget the past and move forward!
Don't overlook and underestimate small company. Press Metal also started from scratch and made its listing debut on the second board in 1993.
The new chapter of life is starting next year with its expansion story, cost savings and production efficiency and its new business venture into duty and tax free shop business.
"Successful next year and onwards is fruit of the past years knowledge and technical know-how and the recent proposals"
HWGB and its subsidiary companies is principally engaged in the provision of the following businesses:-
(i) Manufacturing of moulded power supply cord sets;
(ii) Trading of wires and cables;
(iii) Tin mining; and
(iv) Travel services.
The company recently annouced to undertake the following:
Proposed share consolidation involving the consolidation of every 4 existing ordinary shares in HWGB into 1 ordinary share
Proposed diversification of HWGB into the travel retail business pursuant to the shareholders‟ agreement dated 25 September 2017 entered into between the Company and Dufry International AG, a member of the Dufry group;and
Proposed private placement of up to 77,624,400 new Consolidated Shares representing up to 30% of the issued shares in HWGB after the Proposed Share Consolidation.
Increase profit contribution from new business
On 25 September 2017, HWGB and Dufry International AG executed a Shareholder's Agreement to regulate and govern their rights and obligations as shareholders in a newly established company (JVCO) for the operation of a duty and tax free shop in Genting Highlands resort, Pahang.
Partnering with the right partner, the Dufry group is a leading global travel retailer owning more than 20% of the market share in airport retail and has with operations in approximately 62 countries, operating over 2,200 shops located at airports, railways, cruise liners, seaports, and other touristic locations. The Dufry group has more than 60 years of travel retail experience and Dufry Ltd is publicly listed in Switzerland and in Brazil, with the headquarters located in Basel, Switzerland.
The management anticipates that with this new business venture with Dufry, this business segment may potentially contribute more than 25% of the net profits and/or net assets of the Group.
JVCO's duty and tax free store, to be named “Plaza by Dufry”, is to be located on T2B-3A, Level 3 of SkyAvenue mall, Genting Highlands resort. JVCO targets for the commencement of business of the store to be by mid January 2018.
The business venture with Dufry is an attractive business proposition in the face of steady visitor traffic in Genting Highlands over the past 2 years. The significant redevelopment and expansion under the Genting Integrated Tourism Plan at Resorts World Genting, is expected to elevate the quality of guest experience and product offerings at the resort.
Resorts World Genting welcomed 20.2 million visitors in the financial year ended 31 December 2016, an encouraging 4% growth from the previous financial year ended 31 December 2015 (Source: Genting Malaysia Berhad - Press Releases for the second & fourth quarters financial period ended 31 December 2016).
Note:- Resorts World Genting has embarked on a 10-year master plan to reinvigorate and transform Resorts World Genting under the Genting Integrated Tourism Plan. This includes the development of the world‟s first Twentieth Century Fox World theme park and SkyAvenue - a lifestyle mall at the resort (Source: Genting Malaysia Berhad Press Release for the fourth quarter and financial year ended 31 December 2016)
Raising funds to maintain competitiveness
Strong order for its copper rods and operates efficiently.
The purchase of copper rods is to increase the inventory level for production of wires and cables, allowing the manufacturing division to plan for a more efficient production, accept more orders, shortening the delivery period of finished goods and yield a higher contribution.
Based on the available proceeds and the copper price of USD6,823 per metric tonne as quoted on the London Metal Exchange as at 31 October 2017 plus premium of USD243 per metric tonne for smelting charges into copper rods, the Board intends to purchase up to 298 metric tonnes of copper rods. Customers make purchases from the Group by way of purchase orders.
The Group consumes an average of 200 metric tonnes of copper rods per month. As at 31 October 2017, the Group‟s inventory level of copper rods is 195 metric tonnes, which is less than one month production consumption while the lead time of copper rods delivery is approximately 2 weeks.
To mitigate the risk of volatile copper price fluctuations which will affect the pricing of moulded power supply cord sets and wire and cables, the Group‟s customers typically place advanced orders of not more than 2 months.
The Board has also undertaken manpower cost reductions and efficiency improvements to increase the performance in the Group‟s manufacturing of moulded power supply cord sets and trading of wire and cable divisions. Production cycles were semi-automated and old machineries were replaced in stages to improve efficiencies.
Putting all these together, this segment could see better both topline and bottomline growth going forward.
Working capital for exploring further tin mining
The working capital for tin mining processing is to purchase tailings, hardwares and spare parts for the processing plant, hire lorries and machineries for tailings transportation, industrial diesel and site operating expenses.
On 15 March 2016, IPS International Process Solutions (Pty) Ltd was engaged to conduct a geophysical survey using the “ELFIS” system, an electromagnetic gradiometry device to detect minerals below ground level. The geophysical survey was carried out at certain targeted areas at the tin mining site and 6 anomaly areas of tin ores were detected. In order to verify the tin deposits, the Group needs to engage a drilling contractor to conduct the drilling and obtain samples for analysis. The estimated cost for the proposed drilling works is approximately RM300,000.
The estimated expenses consist of fees payable to the relevant authorities, advisory and placement fees.
In a nutshell
They have learned the past and the Company has a lot of room and opportunities to grow. They just need to work at it now.
Investors will benefit this with long-term horizon.
http://klse.i3investor.com/blogs/huathuathuat/142046.jsp
