Willowglen MSC Bhd (-ve)
Willowglen (Fundamental: 3/3, Valuation: 0.9/3) surged to a high of 97 sen, before closing up 5.1% to 93.5 sen yesterday, after it secured two contracts totalling RM9.0 million from Singapore’s Public Utilities Board.
The contracts involve the construction and maintenance of the supply, installation and commissioning of pressure and water quality sensors.
Willowglen, a leading developer of Supervisory Control and Data Acquisition (SCADA) systems and integrated monitoring systems (IMS), provides computerised monitoring and control services mainly to the utilities industry as well as building services. The company derives over 70% of its sales from Singapore, with the balance from domestic market.
Willowglen has a strong, debt-free balance sheet with cash of RM50.9 million or 23.5% of its market capitalisation. ROE was a high 18.8% in 2014.
The stock is trading at a trailing 12-month P/E of 12.4 times and 2.17 times book. Dividends totalled 2 sen (ex-entitlement on May 13, 2015) for 2014, translating into a yield of 2.2%.
This article first appeared in The Edge Financial Daily, on April 15, 2015.