Major Shareholders are Buying Back Shares of TWL Holdings Berhad? (8Invests)

When major shareholders start buying back shares from the public market, it’s often seen as a strong indicator of confidence in a company’s future prospects. Recently, there has been a notable trend of significant share buybacks by major shareholders of TWL Holdings Berhad (TWL), a move that could indicate exciting developments on the horizon.

Among the key players buying back shares are TWL Capital Berhad (a holding company), Dato’ Tan Wei Lian, Miss Tan Lee Chin, and Datin Sek Chian Nee, all of whom are related parties within the company. Adding to this vote of confidence is Norges Bank Investment Management, one of the largest global retirement funds, which has also invested in TWL.

Since the new management took charge, TWL has made impressive strides in its financial performance. The company has recorded six consecutive profitable quarters, and in Q4 FY2024, revenue saw a significant jump to RM28.45 million. Despite these improvements, the share price remains relatively low, possibly due to a lack of visibility among investors.

One of the most relevant pieces of information for prospective investors is TWL’s Telaris Alam Impian project, which was launched in 2021–2022 with a gross development value (GDV) of RM196.80 million. The project has already achieved 100% sales, with foundation works completed and awaiting revenue and profit recognition. This could offer a substantial boost to TWL’s financials, with a potential net margin of over 30%, given the low land costs (around RM10 million) and in-house construction control.

This project alone is expected to contribute approximately RM30 million per year to TWL’s revenue over the next two years, providing a solid foundation for the company’s financial growth.

In addition to Telaris Alam Impian, TWL has several upcoming projects that will further support its growth:

1. TWL Alam Impian (Affordable Housing Project) — GDV of RM330 million for 1,000 units on 11.9 acres.

2. Pangsapuri Harmoni TWL (Affordable Housing Project) — GDV of RM207 million for 715 units on 5.49 acres.

3. Taman Pinggiran USJ (Affordable Housing Project) — GDV of RM216 million for 746 units on 6.19 acres.

4. Putra Heights Project (Affordable Housing Project) — GDV of RM273 million for 1,139 units on 8.75 acres.

5. Sungai Buloh Project (Affordable Housing Project) — GDV of RM160 million for 571 units on 5.5 acres.

With four more projects in the pipeline, TWL is poised for steady income growth in the foreseeable future. The combination of ongoing development projects, significant shareholder buybacks, and a steadily improving financial position makes TWL Holdings Berhad a company to watch closely.

Despite the current undervaluation, these developments signal that TWL is laying a strong foundation for future growth, which could offer substantial upside for investors as the company’s visibility and recognition improve in the market.