HWGB

HWGB

Ho Wah Genting Berhad

HWGB’s principal activities are investment holding company and the provision of management services, manufacturing and trading of wires and cables, moulded power supply cord sets and cable assemblies for electrical and electronic devices and equipment, tin mining and  its related activities, producing magnesium ingots and supply for various metallurgical grade application.

HWGB has been a top volume stock for the past 2 weeks and making substantial capital gains since the beginning of 2011. However, no fundamental firm specific news has been released by HWGB to drive this gain until the 2^nd of February 2011.

HWGB announced that:

i.                    that Ho Wah Genting Berhad (“HWGB”) via its subsidiary HWG Tin Mining Sdn Bhd is targeting to commence its tin ore mining operation in Pengkalan Hulu after the Chinese New Year as reported in the abovementioned Press;

ii.         that HWG Tin Mining Sdn Bhd is aiming for a compounded annual growth rate of 20% in output over the next three (3) years based on management’s estimation; and

iii.        with the commencement of its tin mining business, HWGB expects to derive an additional source of revenue for financial year ending 31 December 2011 in addition to its existing wire and cable business.

Date	Closing Price
2/2/11	.905
31/1/11	.725
28/1/11	.64
27/1/11	.64
26/1/11	.56
25/1/11	.53
24/1/11	.56
21/1/11	.475
13/1/11	.44
6/1/11	.385

HWGB has been a quiet stock with thin trading volumes for the past 2 years. Volume increased dramatically from the period late Sep 2010 – early Dec 2010 then picked up again as of early January 2011.

Revenue and NP for HWGB

	09/2010	06/2010	03/2010	12/2009	09/2009
Revenue	88036000	57352000	40669000	34205000	51236000
Net profit	2127000	(5360000)	9960000	(9581000)	(2851000)

Issued shares - 413,667,000

Book value of assets (30/9/2010); Total Assets – 204,530,000

Long term borrowings – 23,482,000

Short term borrowings – 54,423,000

6/2/2011 closing price - .905

Market cap – 374,368,635

Book to market - .5463