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Friday, June 26, 2015

Salcon seeks to bag 30% to 40% of RM2b tender book (Edge)

Water infrastructure specialist Salcon Bhd (fundamental: 1.65; valuation: 1.2) is confident of securing between 30% and 40% of its RM2 billion tender book by end-2015, despite the gloomy economic outlook.

Executive director Datuk Eddy Leong Kok Wah (pic) said the company’s average success rate on its tender book was at around 20%, but it could hit the targeted figure this year.

“The tenders mainly consist of domestic projects [worth] up to RM2 billion, out of which RM1.25 billion is local and RM750 million is overseas. We have eight [ongoing] local projects and five in Sri Lanka.

“If we can secure one of the local contracts this year, we can easily secure 30% to 40% of our RM2 billion tender book. It still depends on the party … but we know that we are in the running. We are optimistic. We have our track record. And we are trying hard,” said Leong after the company’s annual general meeting yesterday.

He said the company is quite comfortable after receiving payment for eight out of its nine concessions in China. Currently, Salcon is sitting on a RM270 million cash pile as a result of disposing of its China portfolio.

“Currently, the final concession is under arbitration. The issue with our partner in Shantung is that [although] they want to buy [our] shares, they don’t want to pay the same amount that our Beijing client is willing to pay.

“We are confident the matter will be resolved ... by the third quarter of this year,” said Leong, adding that the company is now looking into areas in which to invest its China proceeds as some shareholders are not happy with the 3% bank interest rate the company is gaining as “sleeping money”.

Moving forward, Salcon hopes that its diversification into the property and telecommunication markets will also contribute to future revenue when compared with its more traditional water treatment and waste water business.

“We have secured a 15-year concession with Prasarana to lay fibre optics along monorail and LRT lines to provide broadband to the rail service. It’s known as Vox Bahn Technolog. We laid the cables in January and are now negotiating with all the major telcos.

“The telcos will then lease [the service] to end users or subscribers,” Leong said.

He added that the company has three parcels of land that are being developed but due to “turbulent times”, Salcon is taking more time with it.

“We have diversified a bit into property development. We got our first project in Selayang, Selangor, building 280 units of apartments, [which we] hope to deliver by end of next year. The pick-up rate is 70% and above, so it’s quite positive,” said Leong, adding that the project’s estimated gross development value is RM160 million, which is to be factored in next year.

Salcon’s land bank also includes a 12.5-acre (4.18ha) lot in Johor Baru and 5½ acres in Kampung Attap, Kuala Lumpur.

2 comments:

IBU PUSPITA said...

Saya ingin berbagi cerita kepada anda bahwa saya ini IBU PUSPITA seorang TKI dari malaysia dan secara tidak sengaja saya buka internet dan saya melihat komentar ibu hayati yg dari honkong tentan MBAH KABOIREN yg telah membantu dia menjadi sukses dan akhirnya juga saya mencoba menghubungi beliau dan alhamdulillah beliau mau membantu saya untuk memberikan nomor toto 6D dan alhamdulillah itu betul-betul terbukti tembus,kini saya sangat berterimakasih banyak kepada MBAH KABOIRENG dan jika anda ingin seperti saya silahkan hubungi MBAH KABOIRENG di 085-260-482-111,saya juga tidak lupa mengucap syukur kepada ALLAH karna melalui MBAH KABOIRENG saya juga sudah bisa sesukses ini dan jangan mudah percaya kepada MBAH yg lain selain MBAH KABOIRENG karna saya juga pernah mengalami yg namanya dibohongin sama para normal yg lain,ini bukan rekayasa dari saya melainkan ini kisah nyata dari seorang TKI,jangan ada percaya klau ada yg memakai pesan ini klau bukan atas nama saya krna itu cuma bohan dan ini resmi saya yg menulis.Untuk yg punya rum erimakasih atas tumpangannya. KLIK _ GHOB _ 2D 3D _ 4D _ 6D _ DISINI












Saya ingin berbagi cerita kepada anda bahwa saya ini IBU PUSPITA seorang TKI dari malaysia dan secara tidak sengaja saya buka internet dan saya melihat komentar ibu hayati yg dari honkong tentan MBAH KABOIREN yg telah membantu dia menjadi sukses dan akhirnya juga saya mencoba menghubungi beliau dan alhamdulillah beliau mau membantu saya untuk memberikan nomor toto 6D dan alhamdulillah itu betul-betul terbukti tembus,kini saya sangat berterimakasih banyak kepada MBAH KABOIRENG dan jika anda ingin seperti saya silahkan hubungi MBAH KABOIRENG di 085-260-482-111,saya juga tidak lupa mengucap syukur kepada ALLAH karna melalui MBAH KABOIRENG saya juga sudah bisa sesukses ini dan jangan mudah percaya kepada MBAH yg lain selain MBAH KABOIRENG karna saya juga pernah mengalami yg namanya dibohongin sama para normal yg lain,ini bukan rekayasa dari saya melainkan ini kisah nyata dari seorang TKI,janan ada percaya klau ada yg memakai pesan ini klau bukan atas nama saya krna itu cuma bohon dan ini resmi saya yg menulis.Untuk yg punya rum erimakasih atas tumpangannya. KLIK _ GHOB _ 2D 3D _ 4D _ 6D _ DISINI

Nianjib said...

Not really favour of Salcon as the company's price is quite fluctuate and the management is not really of what I like.