WTK (4243) - WTK THE OVERLOOKED TIMBER STOCK IN THE SUDDEN INTEREST IN FURNITURE STOCKS, Calvin Tan Research




Dear Friends of i3 Forum,

Today wiith News of Trump raising Tariff against China USD50 Billions Furniture Exports - Stocks like Latitute, Lihen Hevea & Pohuat have surged.
One stock did not but dropped in stead. That stock is WTK
SO CALVIN IS VERY INTERESTED
Why should Calvin be interested in a Stock that dropped and not chase those that have surged?
Good question
The answers now many

1) At 60 sen with NTA  of Rm2.15 WTK is selling at a Huge Discount of 73% Discount to NTA.
This is more than twice the Margin of Safety required by Ben Graham (Note: Calvin follows the Columbia School of Thoughts in Investment. SAFETY FIRST. Then only expect a profit. In other words, "Not to lose money" as propounded by Ben's Best Student called Warren Buffet
See chart
Currency: Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION
31 Mar 2018

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Mar 2018
31 Mar 2017
31 Mar 2018
31 Mar 2017
$$'000
$$'000
$$'000
$$'000
1 Revenue
183,229
209,516
183,229
209,516
2 Profit/(loss) before tax
64,348
7,534
64,348
7,534
3 Profit/(loss) for the period
63,180
-4,276
63,180
-4,276
4 Profit/(loss) attributable to ordinary equity holders of the parent
63,935
-3,580
63,935
-3,580
5 Basic earnings/(loss) per share (Subunit)
13.39
-0.75
13.39
-0.75
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
2.1500
2.0200
 


2) ASSETS OF WTK ARE OF REAL VALUE. SOME OF IMMENSE VALUE

WTK Assets are Rock Solid.

2 ASSETS IN SINGAPORE PIQUED MY INTEREST ESPECIALLY AS I LIVE IN SINGAPORE
No. 86 * Tagore Lane Industrial Estate 11,354 sq.ft. Freehold
Land with office & warehouse 30 September 1983 ( 34 years)  Rm4,080,000

A search in Singapore Propertyguru reveals 9 factories for sale in Tagore Lane
Of the 9 this is the biggest in land scarce Singapore
See
9@Tagore - Property For Sale in Singapore
 
Light Industrial (B1)
Freehold
 
9 Tagore Lane
Marketed by Angela Foo - Call +6590081962
Re-listed on Jul 21, 2018
S$Base64 encoded image 
(Negotiable)
S$ 713.60 psf
4176 sqft / 388 sqm
 
View Details blue arrow     Contact Sales blue arrow     Shortlist blue arrow

It is 4,176 sq ft with asking price of S$2,980,000 or S$713.60
Current Conversion Rate from Sg to Rm is S$1.00 to Rm2.97

So S$2,980,000 x 2.97 = That's Rm8,850,600

Now Look At WTK assets again
It is 11,354 sq ft Book Value is only Rm4,080,000

Now this was 34 year ago prices when WTK bought this factory?
What is the exact Value Now
So
11,354 x 713.60 x 2.97 =  Rm24,063,576

So WTK Assets in Singapore Current Value is 6 X more

That is the IMMENSE HIDDEN VALUE OF WTK ASSETS
What about Its Business?

3) WTK IS MORE TIMBER THAN PALM OIL
SO THE CURRENT FURNITURE CRAZE WILL ALSIO LIFT UP WTK IN A MATTER OF TIME
FURNITURE COMES FROM TIMBER OR LOGS. OF WHICH WTK HAS MANY MANY & MANY MORE
ONE OF THE LARGEST TIMBER PLAYER IN SARAWAK

4) ANOTHER GOOD NEWS IS SARAWAK GOVT FOLLOWS SABAH TO BAN NEW LOGGING LICENSES FOR LOG EXTRACTS
THIS IS VERY GOOD FOR WTK PLYWOOD INDUSTRY JUST LIKE WHAT SABAH DID FOR EKSONS


S’wak govt to stop issuing new timber licenses – CM



The Sarawak government will continue to stop the issuance of new timber licences in all out efforts to protect and retain the remaining indigenous virgin jungle in the state.
Chief Minister Datuk Patinggi Abang Johari Tun Openg stressed that the vast tracts of the forest have already been logged and it was very difficult to restore them.
“Worse still is the stripping of the forests of all their vegetation by plywood factories operating deep in the forests, ostensibly to clear the land for the planting of oil palm,” he told the august House in his winding up speech at the State Assembly Sitting today
“As such, therefore, there will be no more new palm oil plantation licences except for NCR (Native Customary Rights) land,” he pointed out.
The state government, he added, will continue to fight illegal logging.
“Not only are they just stealing timber in areas which are not licensed to them, but they are also intruding into forest reserve areas,” he said.
“If unchecked, we may have no more forest reserves of any kind, fully protected or otherwise. We must protect our protected forests if we want to retain any of our indigenous virgin jungle,” he added


WTK HAS BEEN GIVEN SOLE RIGHTS FOR MANY TIMBER CONCESSIONS. IT IS ALMOST A MONOPOLY WITH TAANN & IN SMALL MEASURE JTIASA

CALVIN FIRST CALLED FOR A BUY ON WTK (WAH TELAH KAYA) AT ABOVE RM1.10

PRICE HAS NOW FALLEN BY A HUGE 45% DISCOUNT
ITS LOSSES FROM OIL & GAS MISADVENTURE NOW OVER
JUST LIKE CALVIN ISSUED BUY CALL ON MEDIA AT RM1.00
THEN CALVIN ISSUED EVEN STRONGER BUY CALL ON MEDIA AT 28 SEN (NOW ALMOST REBOUNDED TO 60 SEN UP BY MORE THAN 100% FRIOM ITS LOWS)
 
NOW CALVIN ISSUES A SCREAMING BUY FOR WTK


Please buy/sell after doing your own due diligence

WARM REGARDS

Calvin Tan Research
Singapore

http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/166591.jsp