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KLSE: MHB       MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BHD
Last Price Avg Target Price   Upside/Downside Price Call
0.80 0.66     -0.14 (17.50%)
* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.
** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).
Date Open Price Target Price Upside/Downside Price Call Source News
14/02/2019 0.645 0.71 +0.065 (10.08%) HOLD KENANGA Price Target News
14/02/2019 0.645 0.83 +0.185 (28.68%) BUY BIMB Price Target News
13/02/2019 0.66 0.61 -0.05 (7.58%) HOLD HLG Price Target News
09/01/2019 0.64 0.55 -0.09 (14.06%) HOLD HLG Price Target News
27/12/2018 0.58 0.83 +0.25 (43.10%) BUY BIMB Price Target News
26/10/2018 0.60 0.64 +0.04 (6.67%) HOLD MIDF Price Target News
26/10/2018 0.60 0.64 +0.04 (6.67%) HOLD KENANGA Price Target News
26/10/2018 0.60 0.68 +0.08 (13.33%) HOLD HLG Price Target News
26/10/2018 0.60 0.62 +0.02 (3.33%) HOLD Affin Hwang Capital Price Target News


Price Target Research Article/News (past 6 months)
14/02/2019  KENANGA MMHE Holdings Berhad - FY18 Plunges Into Losses
14/02/2019  BIMB MMHE - Recovery remain intact
13/02/2019  HLG Malaysia Marine and Heavy Engineering Holdings - Perhaps a Better 2019?
09/01/2019  HLG Malaysia Marine and Heavy Engineering Holdings - Bagged Petronas’ 6-year Frame Agreement - HLIB
27/12/2018  BIMB Malaysoa Marine Heavy Eng - Time to Revisit
26/10/2018  MIDF Malaysia Marine & Heavy Engineering - Operations to Remain Challenging
26/10/2018  KENANGA MMHE Holdings - 3Q18 Results Missed Expectations
26/10/2018  HLG Malaysia Marine and Heavy Engineering Holdings - Another round of disappointment
26/10/2018  Affin Hwang Capital MMHE - Marine Losses a Drag



  4 people like this.
 
eddy888 next target buy in is 55 cent
27/10/2018 3:28 PM
followKing dying slowly !!!!
12/12/2018 5:03 PM
Rowie https://www.nst.com.my/business/2018/12/442027/malaysias-og-activities-rise-next-3-years
19/12/2018 6:57 PM
Rowie I pengsan already
19/12/2018 6:57 PM
nikicheong I have no doubt that MMHE will be a star company in 2019....2019 will be our year!
24/12/2018 7:42 PM
nikicheong Really, really good valuation to buy in at. I'm holding 737 lots in total. It may not seem like much but it's substantial for me!

I think MMHE will benefit from the following in 2019:

1) One major contract award from Petronas - likely Kasawari CPP.
2) Multiple small contracts from Petronas and other local players.
3) One mid-size win from a foreign country (likely a project in Australia).
4) One mid-size win from Saudi Aramco via the LTA.
5) Successful diversification into offshore wind turbine fabrication.
6) Write-back of certain impairments/bad debts made in 2018.
7) Early completion of the Bokor project - means the yard can undertake bigger projects sooner.
8) Near completion of the Dry Dock 3, which should increase revenues by ~RM300-400mil in the first full financial year of operations.

Valuations are super undemanding. There's a net cash position of some RM500mil and the market cap is a mere RM800mil. I'd be worried that MMHE might be a privatisation target for MISC/Petronas. But what would be really interesting is if MMHE can make an acquisition of their own. The market needs some excitement to re-rate the stock. Till that happens, buy...buy...and buy more of this company. Such a clean balance sheet for such a capital heavy industry....imagine the leverage impact when business returns!
24/12/2018 7:52 PM
apolloang 737,add another 263 lah,so 1000 easier for u to count and we also can see your name in top 30 shareholders.....hehe
25/12/2018 1:05 AM
followKing @Nikicheong top up another 263 !
26/12/2018 3:10 PM
MoneyAndHoney MMHE gets deal with Saudi-Aramco

https://www.thestar.com.my/business/business-news/2018/12/26/mmhe-enters-long-term-offshore-agreement-with-saudi-aramco/
27/12/2018 6:04 AM
commonsense The news on MMHE securing a 6 years frame agreement for EPC job from Petronas is actually a very good news. However, it does not mean that MMHE is confirm to get the EPC jobs from Petronas in the future. The company still have to compete with other fabricators like KKB, Muhibah, Sapura Energy etc (who also secured the frame agreement from Petronas) later in another tender between the shortlisted companies for the actual work orders. Given the strength (both in term of technical expertise and balance sheets) of all the participants, you can be sure that the margins for the future tender would most probably will still be thin. Petronas has indicated that they will continue with their cost efficiency drive even if oil price rebound back to above USD70 (now trading below USD60). Any future earnings boost from this agreement is only expected in FY20 (potential peak spending by Petronas) assuming the company managed to secure the work order contracts.

The agreement with Aramco is also similar to Petronas’s where MMHE is shortlisted as one of the potential contractors for the actual work (which still need to be tender later). Other contractors under the umbrella contracts are: McDermott International, Dynamic Industries, Saipem, Larsen & Toubro - Subsea 7 JV, National Petroleum Construction Company (UAE), Sapura Energy, Lamprell – Boksalis – Techinip consortium and China Offshore Oil Engineering.

Investors need to be patient for the company to deliver substantial earning (vis a vis to its market cap) which will only come if MMHE can actually secure substantial orders from these 2 big agreements. Until then they will most probably continue to post losses (or small profit) in the near future.

If you are looking to diversify your portfolio outside of MMHE (due to its earnings uncertainties) I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM10mil to RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.

Good luck.
29/01/2019 7:22 AM
Shareview123 A lot of counters are giving a good opportunity to buy with good returns within a year . This scenario is similar to the beginning of the years 1999 & 2006 .
30/01/2019 2:23 PM
sapurakencana Shareview,can share senerio related to 1999 & 2006.Thanks. what share you brought during that period.
30/01/2019 10:44 PM
Shareview123 I bought Renong , Mrcb , granite , TRI , BOLTON and Time Engineering in 1999.
also bought Public bank , HLIND .
IN 2006 , I bought Uemland , Terbau , Mrcb ,.
04/02/2019 12:20 PM
Shareview123 In beginning of the year 1999 , granite below 0.30 rebounded to 2.50 , Renong below 0.40 rebounded above 3.0 , Mrcb below 0.50 rebounded to around 5.0 in year 2000 , Time Engineering from 1.0 to 7.00 , HL indah from 1.90 to around 25.00 , BOLTON below 1.0 to more than 3.50 .
04/02/2019 12:24 PM
Shareview123 In year 2006 , Ireland from 0.50 rebounded to around 5.00 , Mrcb below 1.0 to more than 3.00
04/02/2019 12:26 PM
Shareview123 Should be in year 2006 , UEMLAND rebounded from 0.50 to around 5.00
04/02/2019 12:27 PM
Shareview123 Between 2006 - 2007 , Granite( Terbau ) rebounded from below 0.50 to around 2.50 again .
In 2017 Iwcity ( or Tebrau or Granite ) rebounded from below 0.80 to around 3.20 .
04/02/2019 12:31 PM
Shareview123 I am still learning , but if you can catch 3 to 5 dark horses which can give you 3 to 5 times , or even
5 - 10 times or even more in 2-3 years , from counter A then shift to counter B , then counter C , then good enough .
In year 2017 , Iwcity , Hengyuan , Petronm and others ,.
In 2018 , after panic sell down , MYEG , 5226 and Carimin , 2 months ago and others .
04/02/2019 12:38 PM
Shareview123 Due to more and more stringent rules and regulations , the price volatility in Bursa become weaker and weaker . Those days are unlikely to be seen .
04/02/2019 12:55 PM
Shareview123 In year 2009 , Uems ( or UEMLAND ) rebounded from 0.50 to more than more than 2.50 in year 2011 then shot up to more than 3.50 in year 2013 . UNISEM also from around 0.50 to more than 2.50 .
04/02/2019 1:06 PM
Eagle_T MHB slips into the red in FY18, fourth consecutive loss-making quarter...
http://www.theedgemarkets.com/article/mhb-slips-red-fy18-fourth-consecutive-lossmaking-quarter
13/02/2019 2:00 PM
nikicheong Very bad result but the positives are that there are no impairments. My worry is if they can't find enough marine business for their Dry Dock 1 (reserved to MISC) and Dry Dock 2...then why the flying F are they "wasting" RM500mil constructing a Dry Dock 3???

I think the heavy engineering has bottomed out, but really the marine business (which was previously dependable) is worrying me. Revenue of <RM50mil for Q4 from this segment is the LOWEST EVER! And this despite O&G activities recovering somewhat in 2018.
13/02/2019 3:21 PM
apolloang now already 65cts mana got 63cts? 4d open then u say ar? hehe
13/02/2019 3:39 PM
nikicheong Well, interesting. Gap down at mid-day open, but managed to recover and close higher by the end of the day. I think the bigger fund managers understand that the worst is over. However, now the stock really could go anywhere - collect more if it drops < 60 sen, but at the same time funds may buy heavily at this rather cheap valuation in anticipation of strong profitability over the next 12 - 24 months.
13/02/2019 6:53 PM
Richard Lee well said collect more if it drops < 60 sen
13/02/2019 7:09 PM
BillyK when petronas is their parent co, still can incur losses
no hope lar
are they over staff, big fat pay cheques and inefficient?
14/02/2019 4:58 PM
nikicheong Maybank's research report is the only one that highlighted MMHE actually posted a core net profit in Q4 2018. You can see there was a net RM24mil in impairment on receivables, and RM4mil writedown in PPE in Q4 2018.

So maybe it wasn't as bad as it seems, plus if they can recover the receivables (which I believe relate to the EA Technique FSO) then there can be some nice little write back this year.
14/02/2019 10:43 PM
cutie this company is also cash rich...37 sen cash per share. Analysts said it will rerate if it wins a contract. Most of the oil companies have a lot of debts .
14/02/2019 10:52 PM
cutie still cheap at this price compared to other O%G counters
15/02/2019 10:01 AM
bigman888 Hope can get RM1.00 by next month
21/02/2019 11:39 AM
nikicheong 5 days of continued solid gains. Interesting...
21/02/2019 11:43 PM
DollyLucky MHE upward trend coming. Do not miss the boat.
Expected to secure big Petronas contract for y19.
12/03/2019 5:44 PM
cutie cash rich and in good hands now.
12/03/2019 8:39 PM
DollyLucky AGM 11th April at SDCC
13/03/2019 1:25 AM
DollyLucky Moving now grab this opportunity before it goes wild. huat ah huat ah huat ah
13/03/2019 3:03 PM
cutie Resistance broken... Hold tight, might go up like a rocket tomorrow
13/03/2019 8:00 PM
Ntpboon 八塊变八毛都没人要?
14/03/2019 2:54 PM
Ntpboon The real O&G stock nobody want ?
14/03/2019 3:04 PM
calvintaneng Hi guys

Calvin want and bought some

See

BUY DESTINI (7212) The Fast, Furious & Frenzied Or BUY MHB (5186) Malaysia Heavy Engineering Slow, Stable & Steady, Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/197843.jsp
14/03/2019 3:21 PM
bonbon Oh my goodness! Calvin, you seem to appear everywhere on i3investor. Almost every stocks I bought I saw your post there
14/03/2019 5:00 PM
cutie calvin nowadays are very chun...very busy these days. making tons of money
14/03/2019 5:01 PM
calvintaneng Posted by TECHfullyBREWED > Mar 18, 2019 08:00 PM | Report Abuse

According to Petronas Activity Outlook 2019-2021, Petronas will be targeting the decommissioning of 50 wells in 2019, 40 in 2020 and 60 in 2021.

Plenty of activity for Destiny, one of the leading players in decommissioning.

CORRECT WAY OF INVESTIGATION! THUMBS UP

TO UNDERSTAND THE JOBS THAT WILL BE AVAILABLE ALL MUST GO SEE PETRONAS 3 YEARS MASTER PLAN

WHAT JOBS ARE AVAILABLE

WHO ARE THE EXPERTS IN THEIR RESPECTIVE FIELDS

WHO GOT THE CORRECT EQUIPMENTS
Calvin already found out an increase of HWUs usage. Also Petronas hinted increase of Oil Rigs by 10 to 14 more in year 2019
All this very good for Velesto

AND BIG HEAVY JOBS WILL GO TO MHB (Malaysia Marine & Heavy enginering)

Also SMEs Supporting OGSE for example is T7 Global
18/03/2019 8:51 PM
malayantiger16888 Regarding: https://www.thestar.com.my/business/business-news/2019/03/18/kpoc-files-rm125m-claim-against-mmhe/#OH1sGSccs8ZfT2Kp.99?

What was the actual details of the breach ? Not meeting specifications and performance , failed , damaged , quality issues ?

quote-
However, KPOC, in its notice of arbitration, claimed MMHE Sdn Bhd was and is in breach of the contracts due to the supply of certain valves
-unquote
19/03/2019 3:16 AM
malayantiger16888 Regarding : https://www.thestar.com.my/business/business-news/2017/06/02/shell-makes-counterclaim-worth-over-rm4bil-against-misc-unit/

What is the details of the below statement ?
(layman understanding , does it mean like a new house, owner found cracks , seller don't want to repair , buyer repair on its own and claim it ?)

quote-
Meanwhile, Sabah Shell is counterclaiming against GKL for alleged defective work, alleged limited functionality of the Gumusut–Kakap semi-FPS, liquidated damages and a refund of the full amount paid to GKL under the adjudication decision.
-unquote
19/03/2019 3:20 AM
cutie 125 million even if claimed, still not a problem coz mhb cash rich. This case will take a long long time in court, By the time , everything have already change for the better
19/03/2019 10:17 AM
DollyLucky Absolutely true and even then mhb can win case as well. Meantime within a year or more mhb will flourish with the rise in Petronas capex for upstream jobs.
19/03/2019 6:47 PM
sapurakencana Forward fr the Star 12.2.2019
PETALING JAYA: MISC Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd ’s (MMHE) are frontrunners for two major contracts from Petronas Carigali’s Limbayong oil and gas field development off Sabah, says AmInvestment Bank Research.

Given the local content requirement for the contracts, the research house said it expected MISC to secure the floating production, storage and offloading (FPSO) vessel charter job, while its 66.5%-owned fabrication provider MMHE was likely to win the engineering, procurement, construction, installation and commissioning (EPCIC) contract.

“For MISC, the earnings impact is likely to be minimal given the group’s huge asset base while the conversion job for MMHE could have a more substantive impact to its depleted order book of RM932mil currently,” it said in its oil and gas sector report.

It was reported recently that local players, including MISC and Yinson Holdings Bhd, were preparing to bid for a FPSO vessel charter for the oil and gas field development, with technical and commercial offers likely to be submitted next month.


AmInvestment Bank Research noted that international FPSO operators such as Modec and SBM Offshore were not expected to bid for contracts, despite having received tenders for the project last year, due to strict local content standards.

The standards include having to carry out the module fabrication and engineering work in Malaysia, with a requirement for up to 90% local manpower.

It said Sapura Energy, MMHE, Kuching-headquartered Brooke Dockyard, Klang-based Muhibbah Marine Engineering and KKB Engineering’s OceanMight were expected to bid for the EPCIC contract.

“However, foreign yards may also be planning to tie up with a local player,” it noted.

The Limbayong tender opened in November last year on a fast-track procurement, with fabrication workto be carried out over 26 months after the award.

Moving forward, the research house said it does not expect any substantive changes to Petronas’ field development activities as Brent crude oil prices were still above its 2018 internal crude oil assumption of US$52/barrel for project feasibility studies.

TAGS / KEYWORDS:
Oil & Gas , Corporate News , Oil And Gas
20/03/2019 2:34 AM
cutie last minute push up
20/03/2019 5:00 PM
nikicheong So crazy, why the push at close? Hate it when this happens, cause tomorrow it will definitely open lower at 0.82 levels. It's not even the end of month / quarter / year, so window dressing is not the answer. Almost 1 million shares changed hands in the last 30 mins. I wonder if someone just decided to push a buy order without any care for the price, or if there's some news about to come out. Doubt there'd be any news...but lets see.
20/03/2019 5:29 PM
cutie 2 days ago, bad news...
20/03/2019 6:17 PM


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