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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.
  dompeilee Only drop 3 c ??? Disappointed! I was hoping to pick up MORE in the 70s =( 30/11/2020 10:25 AM JohanPertama Be prepared to hold for up to 2 years before share price up to RM2. This counter sure up in time. But to reach RM 2 will be a while 30/11/2020 3:52 PM salarynotenough hold on tight. entertainment and travel share are going up....muhibah is silent holder of major airport in Cambodia. Border is open for china traveller to south cambodia for its china one belt one road initiative. airport fees will be sustainable. China investment in sihanoukville requires thousand of traveller in and out and the border never close for this! construction and engineering business will also increase once everything recover... 02/12/2020 4:02 PM certifiedanalyst11 the latest result only further strengthen my prior analysis on its cashflow. the only reason why it is still afloat now is because of loan moratorium, including hire purchase enjoyed by malaysian during pandemic. Take a look at its 3Q cashflow - interest paid is halved of last year’s comparative, 33m. The interest paid should have been higher than last year’s because of higher debt level, despite reduced rate by BNM. Eyes are on its survival after the end of moratorium, which ended 30 September. An interesting fact from 3Q is the 40m shift from Loan payable to Bill payable, when comparing between 2Q and 3Q. That suggests the company has failed to source cheaper fund to repay term loan but rather has “refinanced” due term loan with Bank Acceptance. Most people know that Bank Acceptance is probably the most expensive debt instrument in malaysian corporate financing. The real question to be asked is why the company did not refinance its term loan to take advantage of current lower interest rate? instead switching to higher rate’s debt? the answer is obvious, because banks are aware of its liquidity. By the way, it has 13 panel banks and not even one could provide longer term and cheaper facility - term loan? If one has hard time understanding magnitude of its abusive debt usage, try to imagine yourself in such situation: In 3Q, your 40m house loan is due, you dont have enough money to pay then you take credit card advances from some of 13 credit cards to pay your due house loan. But you still want to shower your wife with birthday party, dividend, for 12m in 4Q because you are afraid wife get mad at you, aka share dropping. That strongly suggests lack of financial discipline. So where is the cash dividend from SCA, cambodian airport? why the company rather pay expensive interest than request the 200M receivable from SCA ? As I have said, apart from plausibility of recoverability of those paper profits, the company being minority in the JV has no influence on SCA’s dividend policy. How fast cambodian airport recover has no bearing to its imminent debt crisis. After all, the cash return from SCA is long term cash flow to the company, whose booked them under long term asset, not my words. Of course with the damage brought by pandemic and ongoing new cambodian airport construction by chinese, the release of substantial dividend from SCA is even remotely possible. There is something worth scrutinisation for what going on with its 60% subsidiary, Favelle Favco (FF), which has been self-sufficient for years, even in this year pandemic, and in 2018 it was so cash-rich to acquire a business for 40m. But in 3Q, it suddenly borrowed 28m in loan. Based on FF past years’ cash flow, the last time FF has net borrowing (proceeds) was in 2009. Throughout 10 years, it has been on net repayment, suggesting it didnt borrow more than it repaid in any given year for 10 years until Q3 2020. Well, FF investors ought to check if any substantial related party purchase from its holding company in the coming annual report. Perhaps some repackaged junk/shell to sell to FF for channelling money into holding company, Muhibbah. FF should expect to face legal proceeding from FF’s minority shareholder if that happens. 2Qvs 3Q: Debt is raising, cash and order book are depleting, excluded FF, loss is greater. No saviour SCA dividend comes to recuse. I dont see what is going against what I have analysed in months ago, rather 3Q provided further facts to support so. Of course, except more gamblers come into picture. If these are not strong enough reasoning of redflags for long term investors, then I can only be amused how blindly a person can be. 08/12/2020 2:15 AM Fundamentalist91 I do my research before purchasing but I always underestimate the effect of cashflows and debts, so when someone like @certifiedanalyst11 reminds us and made it clear for me, I really thank you. I don't let my ego say otherwise, cause you can't fight knowledge with blind confidence, so he said it, and I said it. well then, again, Goodluck gamblers. 08/12/2020 11:59 AM salarynotenough No worries...just hold. Cambodia is the first country to open up for china to travel. Again, china have lot of interest in southern part of Cambodia. You can check the website of each city airport and you will realise main city international flight from kunming, guangzhou, beijing, xiamen, shanghai and even taipei arrive daily to cambodia. May not as frequent as pre-covid, but definitely first few to bear the fruit from china traveller. I also saw singapore, japan and south korea plane arriving and departing from Phnom Pehn. They still have monopoly on cambodia airport up to 2040! As for engineering, oil & gas is picking up....construction is picking up....i don't think we need to worry. Management taking drastic paycut and yet still pay dividend this year...is not that bad after all... 09/12/2020 5:59 PM soon9913 but there is new airports under construction to replace their airport soon. 09/12/2020 6:11 PM salarynotenough true....only for the city phnom pehn....but their contract is up to 2040. Thus there should be compensation by the government for breaching the contract. with influx of china businessman and tourist, there will be flowover of income into siem reap airport and silhouville side. besides from airport, i am betting on their engineering and construction since O&G and civil engineering work are picking up within Malaysia post covid..... 10/12/2020 9:10 AM iskandar100k Its just a small retracement to break a higher high.. Not worth selling when all the good news is around the corner.. 10/12/2020 2:00 PM Keyman188 Muhibbah business also involving energy sector.... 1) EPCIC OF WELLHEAD PLATFORM FOR OPHIR DEVELOPMENT PROJECT 2) TERENGGANU GAS TERMINAL PROJECT (TGAST) 3) RGT1 MINIMUM SEND OUT CAPABILITY IMPROVEMENT PROJECT 4) PETRONAS LNG TRAIN 9, STEEL STRUCTURE ERECTION WORK, BINTULU, SARAWAK 5) EPCIC ALLIANCE FOR THE LNG REGASIFICATION UNIT, ISLAND BERTH AND SUBSEA PIPELINE LEKAS PROJECT, MALACCA 6) EPCC OF THE CENTRAL OIL DISTRIBUTION (CODT) TERMINAL AT TG MANIS MUKAH, SARAWAK 7) YEMEN LNG PROJECT 8) HORIZON BULK LIQUID PRODUCTS TERMINAL ON JURONG ISLAND, SINGAPORE 9) LIQUID BULK TERMINAL PROJECT, WEST PORT, MALAYSIA 10) MG3 LUBE PLANT PROJECT, MALAYSIA 11) LNG3 BERTH BINTULU PORT, BINTULU, SARAWAK 11/12/2020 9:14 AM Rex Ang oil gas...airport..rumah ..semua ada..tapi i beli 75sen saja..tunggu 2.00baru jual 11/12/2020 3:08 PM RainT MUHIBAH construction order book is keep on reducing this is bad for MUHIBAH in long term and MUHIBAH management is not care to get n find more construction contract also Muhibah management just let it be , just let the order book keep on depleting Can anybody see that ? 23/12/2020 12:27 PM iskandar100k I believe this stock will go up to at least RM1.5 by end of next year.. It can go up even higher if they are doing better than expected.. 31/12/2020 9:58 AM dompeilee Whoever keep harping koyak koyak like the dumbo shareinvestor88...cannot prevent the price from standing firm above $1 ....kikikkkk 31/12/2020 10:06 AM Fundamentalist91 @dompeilee I suggest you keep quiet, because you've brag about the price touching RM1 for more than 3 times now, and every time you did that it goes back down, now its at RM0.925. I am just saying, if I were you, very maluuuuu le. btw, I'm not holding any shares, just keeping track. 08/01/2021 1:03 PM Prashan Ram fidelity international..they are an investment management company..like blackrock, vanguard etc.. 19/01/2021 5:26 PM Prashan Ram muhibah is long term anyway..2-5 years holding high chance will be greatly rewarded 19/01/2021 5:27 PM iskandar100k Not going to sell for another few years until covid19 is gone.. You can easily double up your investment after the covid recovery phase.. 27/01/2021 10:30 AM  |
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