MWE is a conglomerate which involves in several business, which includes textile, telecommunication, plantation, properties distribution of trucks and investment holdings.

Textile manufacturing and leasing of textile factory which made up 70% of MWE Holdings revenue, is its core business. Due to rising manpower cost, the company has focus on production line automation and also a strict control of material wastage. An additional 42 production line in Vietnam is expected to be completed in the end of 2016.

As for MWE telecommunication division, the management as position their product on the ever growing IOT (Internet of Things) potential. This division, which contributes 17% of MWE revenue, is involved in the ODM of MobileHelp and OEM of several communication devices.

Besides the two division as stated above, the non-core business of MWE include a 2000 hectare palm oil operation in Kelantan, property development, leasing of MWE Plaza and distribution of China Dongfeng commercial vehicle in Malaysia.

In 2013, MWE dispose of its lightning division and logistics division. On the same year, MWE invested in Kumpulan Europlus Berhad (now renamed to West Coast Expressway Holdings Berhad), taking up a 25.59% stake. WCE Holdings Berhad is involved in development of the 233KM West Coast Expressway, which spans from Banting, Selangor to Taiping, Perak. The company has been awarded a concession of toll fee collection till year 2065. Partial toll collection will starts in 2018 and the expressway will commence full operation in year 2019.

In year 2016, MWE has dispose MWE Golf & Country Club to pare down its debt. The expansion of textile factory in Vietnam is also expected to be completed in December the same year.

Since 2013, MWE has recorded a decrease in revenue, mainly due to the disposal of lightning division and a tougher business environment leading to a lower demand for commercial vehicle. However, we believe its telecommunication division, which taps into the growth of ageing population and Internet of Things market has a bright prospect in the coming years to come. When West Coast Expressway is completed in Aug 2019, it will lift the company earnings substantially. With a strong Balance Sheet and both Operating Cash Flow and Free Cash Flow recording positive figures for many years, we believe it is a gem in making.

Positive

o   Obtained ISO13485, which provides MWE the licence to design and manufacture product for medical industry.

o   Concession licence for West Coast Expressway up to year 2065

o   TPP may bring more business to the Group.

o   Growth of silver lining population

o   Management effort on disposing non-performing asset and venture into segment with brighter prospect.

Negative

o   Automation process may not outpace the rapidly increasing wages growth rate in both Vietnam and Malaysia

o   Bleak prospect for commercial vehicle.

o   Low margin for OEM business.

o   Low dividend pay-out for the past three years.

o   Uncertainties on TPP when both US presidential candidates do not agree with TPP 

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