Highlight Willowglen eyes Tenaga as potential client, positive on FY15 prospects

by **Cals** Thu 30 Apr 2015, 01:02

Highlight
Willowglen eyes Tenaga as potential client, positive on FY15 prospects

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By Wei Lynn Tang / theedgemarkets.com | April 29, 2015 : 1:01 PM MYT

KUALA LUMPUR (Apr 29): Remote-monitoring specialist [size=14]Willowglen MSC Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is eyeingTenaga Nasional Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) as a potential client. The move will help Willowglen (fundamental: 3, valuation: 0.9) break into the electricity-generation market.

Speaking to the press after Willowglen's annual general meeting here today, executive director Simon Wong said Willowglen hoped to provide supervisory control and data acquisition systems (SCADA) services to Tenaga (fundamental: 1.3; valuation: 1.8).

"We have not participated yet in any of the power SCADA projects (by Tenaga) in Malaysia this year, so we hope to get Tenaga on board as our customer... as Tenaga is the biggest SCADA user (in the country)," Simon Wong said.

Looking ahead, Willowglen is positive on its prospects this year on the back of a strong order book.
Managing director Wong Ah Chiew said the group should do better in both revenue and profit in financial year ending December 31, 2015 (FY15).

Wong said demand for SCADA was growing within the utilities sector. According to him, Willowglen's orderbook stands at RM160 million, which is able to last for one and a half years.

"Willowglen has allocated RM3 million for its R&D this year, an increase from RM2.16 million last year," Wong said.

In FY14, net profit dipped to RM17.41 million from RM19.36 million a year earlier. The company reported higher revenue of RM109.75 million versus RM102.61 million.

Today, Willowglen shares rose 0.5 sen or 0.6% at 12.30pm to settle at 89.5 sen for market capitalisation of RM217.8 million.

The stock had gained 19% this year, surpassing the FBM KLCI's 5% rise.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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