Since this is a golden chance to understand about OCK and he is a nice person, we have discussed about the current situation and future prospects of OCK.
Basically OCK is doing well and they estimating to bag in RM200M revenue in 2014. Profit margin is yet to known as it depends on the project management and material cost as RM is weakening. But definitely the prospect will be better than last year.
Below are the prospects outside Malaysia:
- Myanmar - It won't bring any profit to group as the Telco license is yet to award to the one of the two bidders due to some political issues.
- Indonesia - it starts to do well and bring profits to the Group in Q4 last year. It didn't mention in the report but will definitely add it to the report this year.
- They started to have businesses in Brunei, Philippine & Vietnam as well, but not significant yet.
- The group is aggressively sourcing around the potential companies for acquisition within the South East Asia, in order to bring consistent profit to the group.
- The group is aggressively looking for business that can consistently bringing profit to the group, as project income is not consistent and margin is low as well.
We talked about INSTACOM as well. He mentioned that one of the directors may not be sincere as it keeps selling its shares and it looks like political linked.
In summary, I think OCK is genuinely doing business and it's aggressive in it's business expansion. I like the aggressive CEO like Mr. Wong as well. This counter is definitely worth to take a look. But it looks like the current price is a little bit too high for me compare to it's current earning.
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