Tembo Global - Infrastructure proxy?

Yes, I did have the call with EY relationship manager for Tembo Global

These are the key discussion points:

  • Expansion plans were initiated in 2022, focusing on Engineering (EPC), solar, and defense due to thematic alignment.
  • Margins are reportedly improving, and cashflows are expected to stabilize within the next six months as projects are executed.
  • The representative mentioned high-skill international projects like marine jetty orders contributing to the growth phase.
  • Cashflow strain was attributed to aggressive EPC expansion but is expected to normalize post-project execution.
  • Not entirely convinced that fees like the 10% caution fee have significantly impacted cashflows.
  • Another preferential issuance is planned, assured to be the last with no further fundraising anticipated.
  • Independent director resignations were addressed, with replacements carefully chosen for qualifications and governance.
  • CFO appointments have been made with extra care to strengthen company direction.
  • The call ended early as the representative was on leave.

D: Plan to hold the investment for 4–6 months as the current valuation is cheap, though market confidence remains low in the company’s execution capabilities.

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