Scomi Group

Scomi Group

Postby winston » Sat Jan 04, 2014 7:02 pm

not vested

SCOMI has been under the radar for some time. The last two big contracts it bagged were the RM1.85bil Mumbai monorail project in 2008 in a joint venture with India’s Larsen and Toubro Ltd and another job in Brazil worth RM5.6bil in 2011.

The fortunes of Scomi hasn’t exactly been bright. It has been in the red over the last three financial years despite having won big contracts. Its share price is also at one of its lowest points at the 39.5 sen level. Its 52-week low is 38 sen on May 3 last year.

So what is there to look forward to? Proposals have been made for the extension of the KL Monorail to Bandar Sunway. Malaysian Resources Corp Bhd and Syarikat Prasarana Negara Bhd have reportedly submitted their proposals.

Scomi, which built and owns the system of Malaysia’s only monorail, is the technical partner to provide the systems and cars (pic).

For the six months to Sept 30, 2013, Scomi recorded net loss of RM24.97mil on the back of revenue of RM110.85mil.

The results were mainly due to net unrealised foreign exchange losses of RM3.6mil for the quarter and RM18.3mil from both Mumbai and Line 17 projects.

The weakening of the Indian rupee has also resulted in the unrealised losses on the receivables from the client in the Mumbai monorail project.

Scomi’s focus at the moment is to strengthen its presence in Malaysia, India and Brazil amidst intense competition. These countries have committed plans to develop Urban Rail Systems in their major cities.

The rail segment will maintain its focus on the implementation of key projects in Mumbai, Kuala Lumpur and Brazil. Phase 1 of the Mumbai Monorail Project was expected to be commissioned in December 2013.

Catalysts

- Winning new contracts.

- Downside limited as it is already making losses and share price close to 52-week low.

Risks

- Failure to bag new contracts.

- Cost overruns in its existing contracts.


Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Scomi Group

Postby winston » Sun Jul 21, 2019 8:32 am

not vested

SELF-MADE MALAY BILLIONAIRE WAN AZMI EXPANDS HIS STOCK POSITIONS

On July 18, after two days of strong speculation, it was announced that Wan Azmi has committed to invest RM21mil in the debt-laden Scomi Group Bhd He is set to become a substantial shareholder in the company via an upcoming rights issue as well as a proposed restricted issue announced two days ago.

The proposed exercises could see Wan Azmi ending up with as much as a 16.99% direct stake in the company or just 6.29%, depending on the take-up of the rights issue the company has planned.

At the moment, he already owns a 0.75% stake in the company.

With regard to Wan Azmi increasing his stake in Scomi, sources believe that the company’s experience in monorail projects could be a pull factor, as the group would be able to partake in the RM46bil Penang Transport Master Plan, even when the financial statements of Scomi do not look good.

Apart from the continuation of many infrastructure projects, the government is also expected to announce more development projects moving forward. These could potentially benefit Scomi, given its previous track record.

“Wan Azmi’s close association with Tun Daim Zainuddin is likely to play a role and benefit Scomi. I believe there could be plans for some interesting corporate exercises and deals ahead,” says a source.

Source: Malaysia Chronicle

https://www.malaysia-chronicle.com/?p=169347
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