Would you add this deep value stock into your2025 portfolio?

TWL Holdings Berhad (TWL, 7079) is making waves in the property development and construction sector, and the company’s strong performance is catching the eye of investors. Most notably, Dato' Tan Wei Lian, the Executive Chairman, has recently increased his stake in the company, signalling strong confidence in its future growth.

Dato' Tan Wei Lian has been actively trading TWL shares in recent months. From October to December 2024, he acquired a total of 134.1 million shares, while disposing of 44.6 million shares, resulting in a net acquisition of 89.5 million shares. The largest single acquisitions include 20.67 million shares and 6 million shares on 17 December 2024, further emphasizing his commitment to the company.

Such significant insider buying is often viewed as a strong vote of confidence, reflecting expectations of continued growth and value creation.

TWL’s recent financial results highlight the company’s potential:

– For Q1 FY2025, TWL reported revenue of RM19.3 million, representing a 106% year-on-year growth.

– The Telaris Alam Impian project, fully sold out, has been a major contributor, with revenue now recognized from superstructure works.

– The property development and construction segment recorded a PBT of RM4.9 million, a 38% year-on-year increase, further supported by RM0.3 million profit from the company’s batching plant operations.

With upcoming projects in 2024/2025 valued at RM1.2 billion in GDV, TWL is well-positioned to sustain its growth trajectory. A conservative 70% take-up rate could generate RM840 million in revenue, translating into an estimated RM126 million in net profit over the next two years.

Currently, TWL is trading with a market capitalization of RM187.6 million, backed by RM120 million in cash reserves. With a projected net profit of RM126 million over the next two years, the company is trading at two-thirds of its net cash level and a price-to-earnings (PE) ratio of less than 2, underscoring its deep-value potential.

Dato' Tan Wei Lian’s aggressive share acquisitions underscore his confidence in TWL's future prospects. Combined with the company’s strong financials, strategic expansion plans, and undervalued metrics, TWL presents a compelling opportunity for investors.

As the company continues to execute its growth strategy, there is potential for significant returns, making TWL a stock to watch closely.