KLSE Trackers: Willowglen MSC Berhad

General Review

Analyzing deep into the trend of technology, there are always counters that caught, whispers into my heart and mind, telling me to explore details and deeper into their business. One of the counters that caught my attention recently is the counter Willowglen MSC Berhad. Under the leadership of Wong Ah Chiew as the Managing Director which is also Tan Sri Ong Leong Huat elder brother, Willowglen continues to grow under a continuous momentum, a gem yet to be revealed.

Business Model

Willowglen MSC Berhad is engaged in the research, development and supply of computer-based control systems. Its supervisory control and data acquisition (SCADA) system is used in security monitoring, building management and environmental control systems.

Financials

(Source: malaysianstock.biz)

(Source: klse.i3investor)

-Growth in revenue of 257% in 10 years (28m to 102m)

-Growth of profit attributable to shareholder from net loss of -2.3 million to net gain 19.3 million

-Growth in Earning-Per Share of -0.94 cents to 7.95 cents

-Good profit margin business (18-20%)

-Net Cash Company with total D/E ratio of 0.2/0.8

-Cash Per-share of 0.17 cents

-10 Malaysian Firms That Made Forbes’ Best Under A Billion - Forbes

(Source: www.businessinsider.my)

Note that 90% of Willow revenue came from the sale and maintenance of SCADA system while the remaining 10% is from the Integrated Monitoring System (IMS). First of all what is SCADA system? SCADA is a system functioned to perform checking on temperature levels, water levels, oil level and other checks (eg: Taiwan explosion case, SCADA system will be able to pre-detect the presence of pressure and leakage, and hence signal the precaution step). And of course for Integrated Monitoring system (IMF) (eg: remote CCTV) tend to assist them in revenue pile up. With the current 80% of business from Singapore and namely overseas, Willow current order book stands at RM150 million, with the upcoming RM240 million project to tender from both local and overseas.

The Entry Point Projects (EPPs) under the Economic Transformation Programme (ETP) are expected to have an extraordinary favour on the company as 2014 upcoming prospect. The allocation of government’s budget for development expenditure in year 2014 is expected to benefit the infrastructure sector and oil and gas industry. The continuous ETP and 10th Malaysia Plan major projects such as the LRT extensions, KVMRT, Langat 2 water treatments, sewerage treatment and PETRONAS’ proposed Refinery and Petrochemical Integrated Development (RAPID) complex etc will continue to provide opportunities to the Group.