(Post date : 26 August 2010)
Wah Seong Corporation Berhad is engaged in investment holding and the provision of management services to subsidiaries. It operates in three segments: oil and gas; industrial services, and others. Its oil and gas segment include pipe-coating services for the oil and gas industry; fabrication and rental of gas compressors and process equipment; design, installation and commissioning of special tanks, pressure vessels and piping; manufacturing, supply and installation of sacrificial anodes; provision of cathode and corrosion protection services and marketing, and provision related services. Its industrial services segment include the marketing and distribution of building materials, installation services of metal roofing and manufacturing of spiral welded steel pipes for civil and water works.
It is also engaged in processing equipment, manufacturing and distribution of replacement parts for palm oil mills and refineries, and the sale and services of turbines and equipment.
A Rising Global Energy Service Provider
Founded in 1994, Wah Seong Corporation Berhad has successfully harnessed its reservoir of knowledge and diversified oil and gas services to serve accelerating energy demands. The Group has since grown from being a mid-sized Malaysian enterprise to become a major Asian oil and gas service provider today.
Staying focused is imperative in this dynamic, ever-challenging industry. Hence, the Group has now organised itself into 6 business divisions under its wholly owned subsidiary, Wasco Energy Limited.
- Pipe Coating
- Pipe Manufacturing
- Engineering
- Renewable Energy
- Trading
- E&P Services
Listed on the Main Board of Bursa Malaysia Securities Berhad, Wah Seong Corporation Berhad has - via its vast product and service offerings - sealed its footprint in more than 14 countries worldwide. The Group inspires to strengthen its foothold in these territories and expand even further across the world.
From the above chart, the low price for the stock was during February 2009 at the price of RM1 and the highest was during April 2010 RM2.78. After the highest point since April 2010, the stock price start to slowdown and heading down. It has touched 38.2% retracement level at the price of RM2.11 during June and on 26th August 2010. With the weak outlook for the future economy and poor performance for the company financial figure, the stock price has the high possibility to break this 38.2% retracement level and heading to 50% retracement level at the price of RM1.90 in near term. And with the worry of double dip economy situation, it has high possible for this stock to fall further and reach the price of RM1.69, at the 61.8% retracement level in this coming year end or next two quarters.
Quarterly Earnings (Chart)
Yearly Earnings (Chart)
Fundamental (Chart)
From the financial summary table here, you may see the profit for the every quarter is getting much lower. For example, profit for the first quarter 2009 is at RM25,724,000 (RM25.724M) but profit for the first quater 2010 is about RM17,024,000 (RM17.024M). If we compared profit for the first quarter 2009 and 2010, it has dropped 33.82%. For the second quarter, the difference is even more. For the second quarter 2009, profit for this quarter itself is RM29,735,000 (RM29.735M) but during 2010, second quarter profit is just RM1,701,000 (RM1.701M) only. For this single quarter, the profit has dropped 94.28% if we compare year 2010 to 2009.
The financial report for second quarter is released on 25th August after the trading time. On the next day, Waseong stock price dropped as much as 20cent, and closed at the price of RM2.10, compared to the previous day was closed at RM2.30. Is it going to be worse or better for coming quarters? Look around the outlook for the coming quarters economy expectations, I think investors should have their own answer where is the worldwide economy heading to? Better or worse? Haha, DO NOT be the last person to sell the stock. Good luck.
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