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Overview
Financial Highlight
HeadlinesBusiness Background Muhibbah Engineering (M) Bhd is engaged in providing oil and gas, marine, infrastructure, civil and structural engineering contract works. In addition to these, it also manufactures engineering products and distributes and markets construction materials. The segments in which the group operates includes Infrastructure construction, Cranes, Marine shipbuilding and ship repair and Concession. Business activity of the company is functioned through Asia, Europe, America, Middle East and Australia. Muhibbah derives most of the revenue from construction contracts, goods sold and services rendered, dividend income and rental income.
  laulau Morning Friends & Gentlemen! Breakout coming soon once the small block at 0.995 is broken with a Bullish Bursa! Soft target 1.25 with TP 1.34! Accumulate on any weakness! https://www.cnbc.com/2024/07/15/stock-market-today-live-updates.html 17/07/2024 8:41 AM laulau The Block @0.995 already broken! Once Muhibbah exits Penny Stock Status! More Institutional & Foreign Funds will be Buy! More upside coming! The Edge KUALA LUMPUR (July 17): Hong Leong Investment Bank (HLIB) Research maintained its 'overweight' rating of the construction sector, and said domestic contract awards jumped 41% year-on-year to RM20.7 billion in the first half of the year (1H2024), driven by data centre (DC) awards. In a sector update on Wednesday, the research house foresees potential for awards acceleration in 2H2024, driven by long delayed big-ticket infrastructure projects. It said positive sector sentiment could also come from the finalisation of the Johor-Singapore Special Economic Zone and Budget 2025, as well as structural DC and Johor reinvigoration themes. https://theedgemalaysia.com/node/719288 17/07/2024 10:48 AM  ming Cambodia Airports Passengers Traffic (exclude Siem Reap Airport): 1H24: +18% Y-Y (Jan-Jun) 2023 Full year: 4.031mil passengers 2022 Full year: 2.010mil passengers 17/07/2024 12:18 PM ming 越南航空公司计划于今年10月27日起开通河内-金边直飞航班。每周一、周三、周五和周日运营四趟往返航。New routes~ https://www.jianhuadaily.com/20240716/247428 17/07/2024 1:38 PM laulau Morning Friends & Gentlemen! With a Bullish Bursa & Dow Jones at Record High, Analysts Recommends a Strong Buy For Muhibbah! Accumulate on any Weakness & let's break the small block at RM1.01! According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news. https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/ 18/07/2024 8:47 AM ming So far the airport traffic is not impact by the IT crisis.. the daily arrival/departure flights still around the average number as website show.. except small number delay for few hours 21/07/2024 11:52 AM ValueMaker Muhibah's share price hit RM 1.10 on 13th June which is the highest level since Mar 2021. Subsequently the price has fall sharply to lowest RM 0.925 (-15.9%) in the following week. Coincidently, the website showing the number of daily arrival flights in Phnom Penh airport also start dropping since the same week. (big players also refer the same data ?) Here are some figures for comparison: 23Q4: average 341 arrival flights per week 24Q1: average 356 arrival flights per week (still improving compare Q-Q) 1st Apr - 16th Jun: average 359 arrival flights per week (still improving compare Q1) BUT then~ 17th Jun - 23th Jun (the week after share price hit new high): total 343 arrival flights during the week (start falling) 24th Jun - 30th Jun: total 331 arrival flights during the week (lowest in 2024) ** The share price's movement is highly correlative with the airports' traffic~ Thankfully, the flights number has start rebound (back to average) since beginning of July as: 1st Jul - 7th Jul: total 360 arrival flights during the week 8th Jul - 14th Jul: total 352 arrival flights during the week 15th Jul - 21th Jul: total 365 arrival flights during the week Hopefully the share price may rebound in tandem with the traffic soon~ ** Please take note, the Cambodia's toruist low season used to happen during Q2 & Q3 v.s peak season during Q1 & Q4 ! ** If the low season can maintain such number of flights, then Q4 figure will be much much better !! 21/07/2024 5:08 PM ming kena aim by short seller group (RSS)~ first RSS happened in Apr (around 8k lot) , then no more in MAY & JUN. this week start again with : 31/7: 7810 lot 30/7: 6765 lot 29/7: 687 lot 01/08/2024 4:01 PM laulau Morning Friends & Gentlemen! Don't worry too much about short sellers. With not much selling pressure, they will have to cover their short positions sooner or later! Analysts Recommends a Strong Buy For Muhibbah! Just Hold & Accumulate on current Weakness as Infrastructure & Construction is a defensive stock. Breakout will happen as Muhibah is still profitable, once the Budget is announced with goodies for the Construction & Infrastructure sector of which Muhibah is a prime beneficiary! According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news. https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/ 02/08/2024 11:08 AM apple4ver https://asia.nikkei.com/Business/Transportation/Cambodia-resolves-Phnom-Penh-airport-tensions-with-new-rights-grant Khek Norinda, a spokesperson for Cambodia Airports, Vinci's local joint venture, told Nikkei Asia that the unit signed a memorandum of agreement with the government in April giving it rights to operate the new Techo Takhmao International Airport 15/08/2024 9:08 AM uniteen good or not also doesn't matter coz muhibbah's share remains flat. all depends on the sharks now whether it flies or not. 16/08/2024 2:23 PM uniteen muhibbah has never been able to regain its strength to pre-covid level. probably will remain like that for a long time to come. 16/08/2024 2:24 PM apple4ver @Jerung, Fundamentally yes. Back in 2018/2019, Cambodia Airport contributed ~RM150m per annum. What this agreement does is to remove one huge overhang over the stock. Total contribution from Cambodia Airport may be much smaller than pre-Covid time but it is still much better than near zero WITHOUT the agreement. And the upside comes from huge capacity of new airport @50m passenger pa when fully developed vs 5m pa from existing airport. 16/08/2024 5:17 PM laulau Morning Friends & Gentlemen! Bursa already up 9 points to 1,657! @apple4ver Good News Indeed! Accumulate on any weakness! Target price: Resistance between 0.92~0.99? Once broken with a Bullish Bursa, Soft TP 1.10~1.25 with TP 1.34! https://asia.nikkei.com/Business/Transportation/Cambodia-resolves-Phnom-Penh-airport-tensions-with-new-rights-grant Khek Norinda, a spokesperson for Cambodia Airports, Vinci's local joint venture, told Nikkei Asia that the unit signed a memorandum of agreement with the government in April giving it rights to operate the new Techo Takhmao International Airport CGS International Analysis on Muhibbah Engineering. Phnom Penh showing signs of strength Consensus ratings*: Buy 3 Hold 1 Sell 0 ■ 1Q24 results met expectations, with associate profits from its Cambodia airport concession up 32% yoy despite the sale of Siem Reap in Oct 23. ■ Favelle Favco is winning more crane jobs and beefing up recurring income. Up/downside: 35.3% ■ Reiterate Add with unchanged SOP-derived TP of RM1.34. Reuters: MUHI.KL1Q24 results met expectations Bloomberg: MUHI MK ● Muhibbah delivered a 1Q24 core net profit of RM5.9m (vs. RM0.5m in 1Q22) which was Market cap: US$153.3m within expectations at 12%/11% of our/Bloomberg consensus’s full-year net profits RM721.2m. We expect earnings momentum to pick up in the coming quarters as it progressively Average daily turnover: US$0.50m recognises its RM2bn orderbook (as at May 24).RM2.35m ● The key 1Q24 highlight was associate profit contribution of RM13.4m (+32% yoy) Current shares o/s 727.0m coming largely from its Cambodia airport concession. This is commendable as 1Q23 had included the Siem Reap airport concession that was surrendered back to the Cambodian government in Oct 23. Its 1Q24 passenger arrivals for the Phnom Penh. Key financial forecasts Airport concession (PP) and Silhanoukville airport rose 23% yoy to 1.2m, with China passengers making up 22% of the total in 1Q24 (vs. 15% in 1Q23). ● Its construction division posted an RM8.7m pretax profit in 1Q24 (vs. RM5m in 1Q23). Pretax profit for its crane business in 1Q24 rose 30% yoy to RM19m. Of its RM2bn orderbook, RM1.3bn is from construction and RM0.7bn from cranes. Favelle Favco (FF)announced contract wins of RM39m in May 24, which is a combination of tower and offshore cranes. In late-May 24, FF also announced it has entered into an agreement with an Australian developer to build two 14,000 sqm logistic warehouses on its 46,840 sqm land in Sydney, which should boost recurring income once completed in FY26F. Light at the end of the tunnel for PP scenario? ● We had highlighted in our 2 May report (link) that its PP will likely see a favourable outcome, even though a new international airport for Phnom Penh, known as Techo International Airport, located in Kandal, is currently under construction and scheduled to start operations in 1H25F, according to Cambodia’s State Secretariat of Civil Aviation (SSCA). We believe Techo International Airport will replace the current Phnom Penh International Airport that is operated by Muhibbah. ● Muhibbah said negotiations with the authorities are progressing well and it will likely receive compensation for the loss of its existing operations of PP (likely at BV) and be engaged to operate the new airport at Kandal. This is because the new airport is being built by a JV between SSCA and the Overseas Cambodia Investment Corporation Price performance 1M 3M 12M(OCIC), both of whom do not have the expertise to run an airport. An article in the Khmer Times published in Mar 24 also stated that a favourable result for all parties is expected, based on the government’s win-win policy, but details are sparse presently. Reiterate Add and TP of RM1.34 ● We like Muhibbah as a proxy for a recovery in tourist arrivals with its Cambodian airport concessions, while its marine expertise and Petronas fabrication licence should enable to clinch more Petronas jobs, in our view. Key downside risks are patchy execution track record and higher raw material costs. Re-rating catalysts include better earnings delivery and stronger tourist arrivals in Cambodia. 20/08/2024 10:34 AM laulau Good Morning Friends & Gentlemen! More Good News From Muhibbah! Recommendation: Accumulate on any weakness! Pahang poised to become Malaysia's first comprehensive maritime hub By Bernama / Bernama 20 Aug 2024, 08:47 pm Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said the RM2.1 billion project (KMH) which will be a central hub for maritime activities, supporting a range of trade and industrial operations, is expected to make a significant impact on both the local and national economy. "I guarantee the state government's full cooperation in ensuring the project's success, supported by our political stability. I am confident that Muhibbah Engineering (M) Bhd will deliver this project (KMH) smoothly and successfully,” he said. https://theedgemalaysia.com/node/723567 21/08/2024 10:07 AM laulau Good Morning Friends & Gentlemen! Looks like a good Qtr. 2 for Muhibbah? Recommendation: Accumulate on any weakness! 26/08/2024 10:23 AM uniteen told you sharks are the ones controlling the share price. nobody seems to be accumulating muhibbah share on weakness.🐞 28/08/2024 2:34 PM ValueMaker Favco reported lower profit mainly due to Forex. If take out all the one off items & forex from both quarters, the Q2 core PBT actually slightly higher compare Q1. Q2 core PBT: 14.863m Q1 core PBT: 14,686m 28/08/2024 3:47 PM Qwertyuiop Where to find such counter in bursa that is being severely undervalued and overlooked, with almost 500m cash on hand. Crazy 29/08/2024 5:30 PM Qwertyuiop While Market cap only 586m as of today. Revenue and profit all increased significantly without one off items 29/08/2024 5:32 PM Qwertyuiop The last few days and even weeks were shaking off the weak holders. Time to move up to its true value in tandem with its fundamental. Top top 29/08/2024 5:37 PM laulau Good Morning Friends & Gentlemen! Dow Jones is now at Record High! A PBT of RM78.5 million and Order Book of RM1.632 Billion is announced by Muhibbah for current Qtr, A Rebound is Coming Soon! Once Muhibbah exits Penny Stock Status, Muhibbah will be re-rated with more Foreign & Institutional Fund Buyers, soft target 1.25 with TP 1.34! Recommendation: Accumulate on any Weakness! MUHIBBAH ENGINEERING (M) BHD REVIEW OF GROUP PERFORMANCE (YTD 2024 vs. YTD 2023) The Group reported higher consolidated revenue with higher profit before tax of RM78.5 million for the financial period ended 30 June 2024 as compared to consolidated revenue of RM694.9 million and profit before tax of RM23.1million respectively for the corresponding period ended 30 June 2023.This improvement in both Group revenue and Group profit before tax are mainly contributed by Concession division and better performance of Marine Shipyard and Infrastructure Construction divisions. COMPARISON WITH PRECEDING QUARTER RESULTS (Q2 2024 vs. Q1 2024) The Group reported higher consolidated revenue of RM728.0 million ascompared to RM413.9 million in the preceding quarter mainly due to higher revenue from all divisions.This quarter reported higher profit before tax of RM47.5 million as compared to RM30.9 million in the preceding quarter mainly due to better performance from Infrastructure Construction, Marine Shipyard and Concession (Airport). GROUP'S PROSPECT Secured Order Book As at 22 August 2024, the Group's total outstanding secured order book in hand for the construction and cranes division is RM1.623 billion. Prospect The regional infrastructure and oil & gas industry are seeing more capital investments in near future which is a boon for the Group's business moving forward. 30/08/2024 8:59 AM laulau https://www.thestar.com.my/business/business-news/2024/08/30/fbm-klci-rebounds-on-strong-us-economic-forecast 30/08/2024 9:26 AM uniteen even with a good quarter, muhibbah is still a penny stock. waiting for the sharks to see the value. 30/08/2024 12:07 PM laulau That's why the Recommendation is Accumulate on Weakness before the Sharks & Foreign Funds come! Now only nibbling, more chance to grab while still penny stock & we wait for the Breakout! 30/08/2024 1:16 PM ming Muhibah’s 24Q2 result 1. Crane segment (Favco) - accidentally lower earning from crane business as lack of one off gain, eg forex (24Q2 -1.5m vs 24Q1 +4.1m / 23Q2 +7m) - If take off all the one off items, the core PBT in 24Q2: 14.9m vs 24Q1: 14.7m / 23Q2: 7m 2. Concession segment (mainly from airports) - Recorded PBT 16.9m in 24Q2 (+40.6% compare 24Q1 / +77.2% compare 23Q2) - Surprising good as Q2 & Q3 used to be low travel season in Cambodia - Passengers in 24Q2 recorded 1.136m (+13% compare 23Q2) - Passengers in July continue growth with +23% y-y 3. Infrastructure Construction segment - reported PBT 40m (compare 8.7m in 24Q1 / loss 1m in 23Q2) - highest quarter profit since 2018 Overall fantastic result. But concern of order-book replenish as year-to-date yet to get any award. 30/08/2024 1:56 PM laulau Yes! GROUP'S PROSPECT Secured Order Book As at 22 August 2024, the Group's total outstanding secured order book in hand for the construction and cranes division is RM1.623 billion. Prospect The regional infrastructure and oil & gas industry are seeing more capital investments in near future which is a boon for the Group's business moving forward. 30/08/2024 2:14 PM gndthx CIMB Analyst report 29.08.24 https://rfs.cgsi.com/api/download?file=ae6d1589-9311-44b2-8be5-379acfc63b75 30/08/2024 2:43 PM ming Base on CGS/Cimb report, Q1 oni achieve 10% of full year consensus profit base on Tp 1.34. Q2 now alrdy climb back 50%. Q4 use to be strongest in history trend (in term of core profit) High chance to exceed their full year consensus profit then. Raise TP ! 30/08/2024 3:05 PM ValueMaker base on past 2 years history, Muhibah used to clinched in contracts during the year end: RM 479m award in 2023 Nov RM 438m award in 2022 Dec 30/08/2024 3:13 PM uniteen after a week, muhibbah is dropping even further. where are the so-called accumulators? LOL 11/09/2024 9:52 AM ming The outstanding Regulated Short Selling (RSS) has reduce to 1,559,400 unit now~ compare peak at 2,935,200 during mid Sep. The lowest since end of July crash~ 25/09/2024 1:15 AM  | | ||||||||||||||||||||||||||||||||||||||||||||||||
