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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.
  jamestecs Every time company buyback activity the price will press down, so funny. 21/09/2023 10:13 AM  BursaVulture @jamestecs That is because they are trying to hold the price stable when short sellers throw. Don't think too much, at least the founder and owner are willing to support the price, some owners couldn't care to provide necessary support. 27/09/2023 6:31 PM investingiscommonsen Hi, My opinion is MFCB is fully valued at RM3.50. below is my analysis, feel free to give any comments. https://klse.i3investor.com/web/blog/detail/investmentknowledge/2023-11-14-story-h-215117525-Mega_First_Corporation_Berhad_is_FULLY_valued Regards, Raymond Lim 14/11/2023 7:43 AM punpipi Hi, my opinion this MFCB is valued at RM4.6, below don't have my analysis, you need wait next 2 years only comeback to check again. 14/11/2023 4:51 PM BursaVulture @investingiscommonsen Fully valued based on current profit. Can they grow the company / profit? That will depends on management. 15/11/2023 9:48 AM snowball2000 https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=142244&name=EA_GA_ATTACHMENTS 21/11/2023 7:50 PM investingiscommonsen hi, this is my part 2 analysis of MFCB, feel fee to give comments. Based on my personal opinion, this stock is worth RM2.63 . https://klse.i3investor.com/web/blog/detail/investmentknowledge/2023-11-23-story-h-214221059-Part_2_Mega_First_Corporation_Berhad_is_OVERVALUED 23/11/2023 7:53 PM snowball2000 Latest QR is out. Not too bad. Renewable energy continues to do well. Edenor to remain as achilles heel? 29/11/2023 6:28 PM BursaVulture am afraid this might be the case too. share price either remains stagnant for quite sometime. Maybe until 2027 or 2028 if their packaging can grow, their oleo can make money and plantation starts generating profit. 29/11/2023 8:15 PM yong1985cm for profit making/growth company, it make more sense use PE to measure the target price. 04/12/2023 10:49 AM 1DERFUL Positive Earnings Impact: The increase in MFCB's stake in the Don Sahong hydropower project is expected to be earnings accretive, potentially leading to an increase of about 6% in the company's core earnings forecasts for FY24-25. This could positively impact the stock price as higher earnings often lead to increased investor confidence. Diversification of Business: The acquisition of Emery Oleochemicals and Emery Specialty Chemicals, and the expansion into agricultural produce processing, signal a diversification strategy. This diversification could reduce the company's risk profile by not being overly reliant on a single business segment. Market Perception: The market’s perception of these moves is crucial. If investors view these acquisitions and expansions as strategic and beneficial for long-term growth, it could lead to increased demand for MFCB shares. Financial Stability: The manner in which these acquisitions are financed is also important. MFCB's healthy balance sheet and low net gearing position suggest financial stability, which is typically viewed favorably by investors. Market Valuation: The market might re-evaluate the company's valuation based on these developments. For instance, the valuation of the hydropower project at a level higher than the company's current market capitalization could indicate that the stock is undervalued, potentially making it more attractive to investors. Overall, while these developments appear to have positive implications for MFCB's stock, investors should always consider the broader market conditions, the company's overall financial health, and their investment strategy before making decisions. 04/12/2023 12:18 PM 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  | | ||||||||||||||||||||||||||||||||||||||||||||||||
