18 December - NWP (5025), NWP HOLDINGS BHD [THE VALUE OF SPEED]
Stock code: 5025 NWP
18 December, Friday
SCALABILITY VS PROFITABILITY
Investors look for both. But which is of more value: scalability or profitability?
Let’s compare two companies:
Market cap of both? Similar around ~$100billion USD.
Some may wonder: why?
NEED FOR SPEED
Finance experts were initially dumbfounded when companies such as Uber, Airbnb, managed to raise capital round after rounds, from Series A, A2, B, C…..G, H (goes on until IPO) from platinum-grade investors that consists of:
Sovereign funds: PIF-Saudi Arabia, Temasek-Singapore, QIA-Qatar, CIC-China etc
VC funds: Vulcan Capital (by Microsoft co-founder), Alrai Capital etc
Mega banks: Goldman Sachs, JP Morgan, HSBC etc
Mega corporations: Toyota, Hyundai, Microsoft etc
At first, many could not understand the logic, until they see the magic: SCALE & SPEED.
It is important to have profits, but to grow with speed is even more valuable.
NWP 2.0 - ECOSYSTEMS OF THE FUTURE
One key message from the turnaround strategy of NWP: to provide total solutions to the ecosystems of the future.
To return to profitability is the basic, no questions asked.
To be part of something much greater and larger, to be part of the future? Even better.
Question: HOW MUCH VALUE would you ascribe to a company if the company is the sole partner of UBER in selling, servicing, and managing the entire UBER fleet? 200m? 500m? Possible a billion dollar co?
And THAT is exactly what NWP is doing.
The new venture will bring profits to the company in the first nationwide rollout. Then, the second stage would be scaling regionally beyond, where ridership numbers are much much higher. This is even more enticing for investors and shareholders. Yes, it is not EZ, but it can and will be done.
Stay tuned for updates.