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Overview
Financial Highlight
HeadlinesBusiness Background Mega First Corp Bhd is an investment holding company. The group is organised into three main business segments as follows - Power, Resources, and Property. The Power segment builds, owns and operates power plants. The Resources segment is engaged in quarrying of limestone manufacturing and trading of lime products, calcium carbonate powder, and bricks. The Property segment is engaged in the property development and property investment. Its primary geographic markets are Malaysia, China, Laos, India, Australia, New Zealand and other countries. The majority of its revenue is derived from Laos.
  investingiscommonsen I sought clarification from MFCB about the total valuation on the hydropower project. Below is MFCBs' reply. The valuation of the project is USD 425million as I mentioned before in the blog. https://klse.i3investor.com/web/blog/detail/investmentknowledge/2023-11-23-story-h-214221059-Part_2_Mega_First_Corporation_Berhad_is_OVERVALUED "US$85 million is the purchase consideration which MVL has to pay to acquire 20% in DSPC. As MVL is a 56.25%-owned subsidiary of MFCB, MFCB’s share of purchase consideration will be US$47.8 million. MVL’s acquisition will be partly funded by US$55 million bank borrowing. Therefore, the implied equity/shareholder-advance funding will be US$30 million. MFCB’s share of equity/shareholder-advance contribution to MVL will be US$16.9 million. Based on US$85 million for 20%, the implied project valuation is US$425 million." 04/12/2023 12:48 PM Fabien _the efficient capital allocator Revenue growth via new investments. As at 30th Sept 2023, management has allocated capex of RM606.5m, of which 62% or RM376.6m is allocated for the renewable energy segment. Of this, RM198.5m is for the new 5th turbine and the remaining RM178.1m for the 46.5MW solar farm project in Malaysia under the Corporate Green Power Programme, 11.4MW solar farm project in Maldives and 8.1MW commercial and industrial rooftop solar projects. It has also allocated RM61.1m for remaining works on two new packaging factories and RM95.8m for new production lines. RM74m is budgeted for modern farming covering 772 acres in Perak, which also include a 60MW solar project. Positive progress on the 5th turbine concession. Management is currently in the final stage of negotiations with Laos’ Electricite Du Laos (EDL), which will see a favourable new concession for the Don Sahong Hydropower plant that includes all the 5 turbines with a combined capacity of 325MW. Announcement of the new concession is expected to be unveiled by 1QFY24. Meanwhile, Energy Availability Factor is expected to stay around 91% in 2024. Completion of the 5th turbine is in time for the wet season, which could see full capacity utilization. Assuming a conservative EAF assumption of 41%, the 5th turbine could generate annualized pre-tax net profit of RM40m for the group. The solar business is expected to contribute revenue of RM14-15m with a net profit of RM3m in FY24. New food security division. Apart from the 2,560-ha coconut and macadamia plantation in Cambodia, the group is also investing into an established platform in Malaysia that owns 1,300-acre fruit and vegetable farms and distribution channels in Johor and Pahang. Via the platform, they plan to develop modern farming or greenhouse farming for herbs, vegetables and fruits on a 772-acre (allocated 400 acres for modern farming) plot of lowland in Perak. Given the huge capex involved and concerns on heat or high temperature of lowlands in Perak, they have started on a pilot project while in the midst of acquiring the entire landbank in Perak under the MFCB name. Eventually, there are plans to integrate the established platform with the modern farming as it plans to have a bigger stake in the entity. Including nursery, the gestation for vegetable farming is about 30-45 days. To avoid the risk of price fluctuation and middleman costs, MFCB plans to have direct off-takers like supermarkets and hypermarkets. Based on the estimated annual production of 50k mt and average wholesale price of RM6/kg, it could potentially generate revenue of RM200m-300m p.a. or RM500k/acres. The modern farming design is expected to be ready by end-March 2024. 13/12/2023 8:20 PM  BursaVulture To be honest, I am not a fan of indoor farming or vertical farming or whatever they call it. Most greenhouse farming simply doesn't work. I am still holding MFCB and will continue to do so, I hope if things doesn't work out, they will shut it down. But I hope they succeed. I hope they are smart enough to plant Herbs, Onions, Mushrooms and etc. Dont compete with those in Cameroon, compete with food we import, if they are able to scale, our gov might help out without hurting the small farmers in Malaysia. 13/12/2023 8:41 PM 1DERFUL Does anyone know of platform/site to check individual stock dividends history ? 20/02/2024 11:15 PM BursaVulture right here lah... https://klse.i3investor.com/web/stock/entitlement/3069 20/02/2024 11:59 PM  Choivo Capital Through my many interactions with them, i have a strong confidence in their thought processes and business thinking, so its quite likely they have found a way to do it very well, likely via certain fruits/vegetables/herbs, that have very different margin profile etc, due to different methods of growth, geographic constraints, supply/demand mismatch etc. BursaVulture To be honest, I am not a fan of indoor farming or vertical farming or whatever they call it. Most greenhouse farming simply doesn't work. I am still holding MFCB and will continue to do so, I hope if things doesn't work out, they will shut it down. But I hope they succeed. I hope they are smart enough to plant Herbs, Onions, Mushrooms and etc. Dont compete with those in Cameroon, compete with food we import, if they are able to scale, our gov might help out without hurting the small farmers in Malaysia. 25/02/2024 10:25 PM BursaVulture why would it be crazy? you can say slightly higher but crazy is too crazy. almost 90% profit is from their hydro. unless all the other subsidiaries grow at exponential rate, unlikely to be crazy. hydro power gen already somewhat max. 18/03/2024 6:53 PM  EngineeringProfit Exactly Posted by TerrenceLim upcoming quarter profit is crazy......it is like a new YTL Power 2.0 18/03/2024 7:55 PM EngineeringProfit Everything is possible...................but >10% from break out price!! Bilises must have the discipline - not to chase high. 19/03/2024 1:19 PM BursaVulture I own MFCB too, i call super crazy high profit for next QR pure BS. Most likely they will sign a new deal, probably extension from 25 years to 30? who knows. if you read the report, you know 90% profit from hydro, no more room to grow. 19/03/2024 8:01 PM newbie8080 5th turbine is completing soon. Hopeful that it will provide additional revenue and profit 27/03/2024 10:52 AM BLee “Jack888 Next resistance 5.40 ...??? 19 minutes ago” Yes, MFCB is having a good meteoric rise this year. Few days ago, I did a calc for Insas' CAGR, also checked on MFCB over a 10 year period. The results are much better than Insas. Will find time to post the results, maybe over the coming weekend. Happy Trading and TradeAtYourOwnRisk. 03/04/2024 11:40 AM Nepo Food Security Division As of the end of FY2023, the cumulative planted area of our plantation in Cambodia totalled an estimated 2,560 hectares, comprising 1,830 hectares of coconuts and 730 hectares of macadamias. The coconut trees will progressively reach commercial scale maturity starting from 2024, while the macadamia trees are expected take another 1-2 years to reach the same. After careful consideration, we have opted to concentrate on harvesting flower sap of the coconut trees, and refining it into coconut sugar products, including syrup and granulated sugar. This strategic choice is motivated by the scarcity of pure, unadulterated coconut sugar products in both industrial and retail markets, alongside a steady and expanding global demand (forecasted CAGR: 4.8% from 2018-2030). This market potential is underpinned by the superior health benefits of coconut sugar compared to refined white sugar. We are confident that leveraging the capacity of our plantation presents a significant opportunity to meet the burgeoning global demand for coconut sugar products. Upon reaching maximum harvest capacity, we anticipate establishing ourselves as the largest and foremost fully integrated company dedicated to coconut sugar products worldwide. Looking ahead, our commitment remains steadfast in nurturing and expanding the Food Security Division to make a substantial contribution to the Group’s long-term earnings, whether through expansion, diversification or strategic acquisitions 24/04/2024 8:09 AM kai8994 "We are confident that leveraging the capacity of our plantation presents a significant opportunity to meet the burgeoning global demand for coconut sugar products. Upon reaching maximum harvest capacity, we anticipate establishing ourselves as the largest and foremost fully integrated company dedicated to coconut sugar products worldwide." Good highlight, Nepo. Can't wait to ask them more about the venture into coconut sugar biz in the coming AGM / quarterly briefing. Wondering how much revenue they are expecting from this venture. According to this report the top 3 players are having between USD169m - 260m revenue. https://www.globalmarketmonitor.com/report_blog/1861531.html 24/04/2024 5:23 PM kai8994 Maybank's valuation did not ascribe any value to the new ventures. The company is reinvesting the cash to grow and at the same time giving out decent dividend. Why sell? 25/04/2024 4:20 PM kritikos M&A activities.. they bought 64% interest in CSC Agriculture for RM25m... https://www.nst.com.my/business/corporate/2024/05/1048189/mega-first-corp-takes-64pc-interest-csc-agriculture-rm25m 09/05/2024 10:40 PM  Pinky Good company but limited upside already...made 20% with this stock in 6 months and sold. Will look to re-enter around 4.50 maybe 13/05/2024 9:39 AM newbie8080 https://theedgemalaysia.com/node/712541 Mega First Corp Bhd (KL:MFCB), which is involved in renewable energy sales, limestone quarrying and packaging, said its first quarter net profit rose 35.32% to RM95.46 million from RM70.55 million a year earlier amid a significant improvement at its resource division. The higher earnings were also attributed to a one-time boost from fire insurance compensation. The group said it recognised RM22.39 million in insurance income for the fire incident in its flexible plastic packaging factory. 22/05/2024 8:56 AM  VincentTang 22.39 mils from net profit claim from insurance which is one off profit 23/05/2024 9:26 AM kai8994 Y-o-Y Group’s profit after tax and non-controlling interest (“PATNCI”) rose 35.3% from RM70.5 million to RM95.5 million. “Normalised” Group PATNCI (by excluding share of joint ventures and associates’ results, and non-operational one-off items) grew 22.4% from RM79.5 million to RM97.4 million. Q-o-Q Excluding joint ventures and associates, and one-off items in both periods, the Group's normalised PATNCI remained flat quarter-on-quarter at RM98.2 million (compared to RM98.7 million in 4Q2023). This was achieved despite seasonally lower hydro energy sales, underscoring the earnings strength of the Group's core operations and the positive impact of increased effective equity interest in DSPC. How was it a bad quarter? In fact if you follow the Company closely you will know that they will do well this year with the increased effective stake in DSPC and the upcoming 5th turbine running in second half. And next year it will be even more exciting with the Food Security Division plus additional capacity coming from packaging division. 23/05/2024 10:54 AM Pinky Southeast Asia extreme weather. Will that affect that hydro dam? I'm a bit worried. 23/05/2024 3:05 PM hopetobecorrect @kai8994,, i think next year MFCB Laos tax free status will expire? sure this will affect the profit unless i miss something 23/05/2024 9:08 PM kai8994 @hopetobecorrect, yes you right, in fact there is another clause which says the tariff will be adjusted downward at 10th year if I not mistake. The management did highlight the new CA is more favourable to the Company, lets see how it goes. Anyway, irregardless of the terms of the CA, to me the value proposition of MFCB is about the capable management team who know how to reinvest the strong cashflow and enhance the shareholder value. Bet the jockey :) 24/05/2024 9:53 AM hopetobecorrect @kai8994, thank you for the information. Will take the mgmt words on this 24/05/2024 9:32 PM  |
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