Even bankrupt Sapura Energy can have a mkt cap of 900 mil when its profit last qtr was barely over 10 mil. MHB is cash rich, net cash & already busy working until at least 2026. Something is absurdly wrong with a mkt that gives it a value of only 1.2 bil.
With the recent secured contracts Kasawari Carbon Capture & Storage Contract - RM4.5Billion JDA Field Development Contract - RM 1.4Billion The earlier Kasawari RM2.5Billion and Jerun Development Project RM1.0Billion near completion (Bulk of the earning is back-loaded) Fundamentally it is bullish
Furthermore the last four quarters were positives Going forward, expects more positive earnings Technically it is still bullish. It is just undergoing a technical correction The correct strategy is accumulates on any market dips and hold for long term (minimum 1 year period)
One more good news The current Unity Government is strongly against corruption As such, it is difficult for corrupt politicians stealing from MHB cookie jars
hi. Anyone can explain why the heavy engineering segment always report losses. The last time they make profit was 2014/15 period. And it always contributes ca.80% of revenue
I read the recent financial reports & realise that MHB actually benefits from the US$ rising agst the RM (47mil for every 10% increase in the US$)...the more they increase their foreign footprint, the more this benefit will accrue.
There is an article on this Monday 6/3/23 Sin Chew Daily, they interview the Deputy Chairman of MPM (Malaysia Petroleum Management),En.Mohamed Firouz Asnan a unit under Petronas.
He pointed that besides the CCS of Kasawari (Sarawak), they will kick off another CCS project at Penisular Malaysia, he said that they will announce the good news SOON!
Hope that MHB able to get this CCS project again :-)
Markets always get hype about getting projects. Most critical is the execution power of the team and to deliver sustained solid earnings. Anyone in O&G have insight into their management quality and culture?
I noticed not much people in Oil and Gas giving comment. Mostly are retail investors but i feel upcycle just only started. Recession or not, oil is inelastic short term. Energy transition needs fossil fuels even more. Such a good opportune time
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
scott88
413 posts
Posted by scott88 > 2023-02-13 17:22 | Report Abuse
Rm1 above soon