Monday, April 1, 2013
King Wan
King Wan: Not as liquid as the other 8 stocks highlighted by NextInsight (see posting at 9:00:32am), OSK DMG previously had a rpt on Company, noting that its $167m order book provides a buffer for 3 years worth of work, contributing to the core 1.5¢ dividend.
King Wan has a very strong cash generation ability. Between operations and investments, DMG see a generation of between $10m - $26m of cash per year between FY14F and FY18F.Taking $12m as the reference point, this is equivalent to 12.2% of the market cap.
King Wan is Singapore’s leading Mechanical & Electrical (M&E) services provider for the construction industry, and also operates the country’s largest fleet of mobile lavatories. KWAN’s investment in two Thai associates for $12.3m were sold last year for $50m, and expect this sum to be distributed over the next 10 yrs. Group's core business is mechanical & electrical engineering for construction projects; other contributors being the largest mobile toilet fleet in SG, Property development, Ship owning/chartering.
King Wan currently trades at 19.2x trailing PE, 1.2x P/B.
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