Just some observations from the 2023 H1 report and today's presentation.
Compared to the format from previous managements, this is like seeing one wearing swimwear vs one who is fully clothed with only the face showing. The segmental result had shown that it was actually IVC that had carried the company through the last 1.5 years. DMWW was slower than expected in picking up, granted the change was only in April 2022 and the US municipal hiring was around October. SEA and China was badly impeded by the continuous closure in China and funding issues of the customers after reopening of the China market. Bright spark is actually the continue performance lead by Manuel Garcia in South America. The Caribbean team seemed to have gone all quiet, perhaps we need the cruise industry in North America to re-start for the Caribbean to move.
In today's presentation, as @@vango and @Daniel03 had pointed out, we are expecting our year-end 2023 backlog to stand at US$135M. What is so transparent and hinting here is:
1. 2H new orders of $132M, comprises of US$53M from IVC Addendum; $16M and that gives a balance of US$63M to be announced.
2. On page 19, it shows an $81M order in 2H and that excludes the US$53 from IVC Addendum. The hint here is we are going to expect BOO contract(s) to the tune of $50M getting booked before end of 2023 with the balance of $13M coming from the other 4 segments.
In order to book these BOO projects, we got to sort out our financing. So like what most of us have echoed on reading this presentation, we need to strengthen our balance sheet and a CR is inevitable. What was interesting in 2022 AGM, RWL had blocked the 10% extra issuance, whereas on the 2023 AGM, it was Ok ed to give the new management 15% + 10% capacity to issue more shares. Maybe if Ron, Doug, Tom, Watermark etc would participate in the CR, it may finally be signaling that they know where the bottom is.
Get the CR over, strengthen the balance sheet and reset the charts.
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