Taliworks

Taliworks

Postby winston » Tue Jun 12, 2018 9:45 am

not vested

Trading Buy: TALIWRK - 8521
(Last price: RM0.795, Potential upside +27.0%)

Company Profile
• Taliworks is involved in water and waste-related businesses. It has expanded its core expertise to include highway management and construction & engineering.

Trading Catalyst
• Negatives largely priced after a 28% slump in share prices YTD, mainly attributable to the Selangor water crisis, post GE14 selloff coupled with concern of potential cuts in dividend payment and tolls restructuring.
• Nevertheless, further downside risks are cushioned by an undemanding 11.7x FY19 P/E (35% below 10Y average 18x and supported by a 22% EPS CAGR from FY18-20) coupled with a huge trade receivables of ~RM638m or 52sen/share (66% of its market cap).
• Imminent descending triangle breakout with medium to LT upside targets at RM0.90-1.01.

Technical View
• Resistance: RM0.840 / RM0.900 / RM1.01
• Support: RM0.760 / RM0.740
• Cut loss: RM0.695

Key Financial Stats
• Trading at 11.7x FY19E (35% below 10Y average 18x)
• 0.92x P/B (29% below 10Y average 1.3x)

Source: HLIB
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: Taliworks

Postby winston » Wed Jul 04, 2018 9:21 am

not vested

Trading Buy: TALIWRK - 8521
(Last price: RM0.975, Potential upside +28.2%)

Company Profile
• Taliworks is involved in water and waste-related businesses. It has expanded its core expertise to include highway management and construction & engineering.

Trading Catalyst
• Sentiment on the stock may improve further after newly appointed Water, Land and Natural Resources Minister Xavier Jayakumar yesterday vowed that the long-standing Selangor water supply issue would be resolve soon.
• Valuation is still undemanding at 14.3x FY19 P/E (21% below 10Y average of 18x and supported by a 22% EPS CAGR from FY18-20, coupled with a huge trade receivables of c.RM638m (52sen/share; ~54% of its market cap).
• Positive downtrend line breakout could spur prices higher towards RM1.13-1.25.

Technical View
• Resistance: RM1.06 / RM1.13 / RM1.25
• Support: RM0.910 / RM0.875
• Cut loss: RM0.870

Key Financial Stats
• Trading at 14.3x FY19E (21% below 10Y average 18x) and 1.13x P/B (13% below 10Y average 1.3x)

Source: Bloomberg, HLIB
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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Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Taliworks

Postby winston » Wed Jul 10, 2019 7:17 pm

not vested

Trading Buy: TALIWRK - 8524
(Last price: RM0.920, Potential upside +15.2%)

Company Profile
Taliworks is involved in water and waste-related businesses. It has expanded its core expertise to include highway management and construction & engineering.


Trading Catalyst

With investors likely gravitating towards defensive and yield plays amid low interest rates environment, lacklustre earnings outlook coupled with continued external headwinds, we believe Taliworks (still cum 1.2sen dividend and may generate 5.9%-7.8% yield for FY19-21) could fit the bill as a utilities/infra exposure backed by robust operating cash flow and stable recurring earnings.

Sentiment on the stock could further improve ahead of the total settlement sum of SPLASH’s receivables (~RM700m and the 10% first tranche payment is expected by 3Q19) and more clarity of the negotiation to extend concession for Langkawi’s water treatment plant by end-Dec.

Taliworks may also grow as a water-related construction specialist in tandem with future government spending to focus on improving water supply and distribution infrastructure nations wide starting in 2H19.

Technically, the downtrend line breakout is positive for further rally towards RM0.96-1.06 in mid to long term.

Technical View
Resistance: RM0.960 / RM1.00 / RM1.06
Support: RM0.895 / RM0.870
Cut loss: RM0.860

Key Financial Stats
Trading at 26.8x FY20 P/E, supported by 7.8% dividend yield.

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


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