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Overview
Financial Highlight
HeadlinesBusiness Background MBM Resources Bhd is a Malaysian company which is in the business of motor trading and manufacturing of auto parts. It has Motor trading, Auto parts manufacturing, Property development and Others segments. Motor trading segment covers marketing and distribution of motor vehicles, spare parts and provision of related services. Auto parts segment comprises manufacturing of automotive parts and components, steel and alloy wheels and discs, noise, vibration and harshness products and provision of tyre assembly services. Property segment includes development of menara MBMR and Others segment encompass investment holding, corporate headquarter and dormant companies. Motor trading segment generates most of the revenues for the company.
  RaksasaKambing The latest proposal for MBMR to buy back another 10% shares will probably be approved, so this will lead to less shares out in the open market for retailers. They probably want to do it because prices are still quite low at this stage, and more treasury shares means more of the dividends get kept in the company as cash flow. What does it mean for retailers? 1. Less exposure to open market means less volatility, less likely to goreng. 2. Higher treasury shares will incentivise them to continue their dividend policy or even make it more generous. 3. On the short term, the buy-back will trigger a rise in share prices, because of temporary buying pressure. This may raise interest in this counter. 4. It will likely improve the financial ratios of the company. They are basically taking advantage of their current high profits but discounted share price. 09/04/2021 9:08 AM ValueInvesting @RaksasaKambing (haha, what an interesting username by the way) I agree with your assessment on the positive impact of share buy-backs by MBMR. However, do take note that the company has received the mandate to buy-back its own shares since 2003 as can be seen in this company announcement https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=60752 However, MBMR has not been buying back its shares for at the past few years. They are likely keen to maintain the current public shareholding spread to avoid triggering any MGO requirements and to allow the share price to float organically. 09/04/2021 9:53 AM  WannaBeTechAnalyst Ahahaha @Gtrade can literally explains why earth is flat instead of sphere shape. "@Gtrade MBMR sells PERODUA cars to the B40 mkt.These group of people especially from the Felda and oil palm sector ,benefit from CPO price touching 4000 rgt. While almost every sector are suffering except glove and semicon sectors, these people are laughing to MBMR Perodua cars CPO price hit 4000 rgt region will benefit good management plantation company. Car related company, especially those that cater to B40 will benefit too. Felda settlers will be zooming to car dealers for their favorite 20k-70k car, not BM w or Mercedes showroom . Kimloong, MBMR should benefit from current commodity bull rally" 14/04/2021 1:04 AM  SincereStock low PE, high DY, below NTA, cash rich (cash balance is more than total liability), good future prospect, proven to be resilent to covid / mco by the most recent continuous excellent 3 QRs value investors, don't miss the boat while it is still undervalued 28/05/2021 12:56 PM RaksasaKambing There will be a beat down due to the new MCO. I expect good entry prices will come in the next week, maybe (optimistically) even sub 3 ringgit 29/05/2021 6:36 AM SincereStock bought 36 lot at 3.16 just now haha @raksasakambing did u got some too? 31/05/2021 10:52 AM SincereStock possibly the last mco before Malaysia mass immunity, takut apa, this morning free discount on uptrend stock for nothing, no more discount, TP easily rm4 above 31/05/2021 3:34 PM RaksasaKambing @Sincerestock my TP is a bit lower than current prices. Maybe it won't move much due to high institutional holding 31/05/2021 8:32 PM SincereStock perhaps retailers also learned their leason previously, won't panic selling that much already this time 31/05/2021 9:46 PM PenangLang9180 Previously scheduled to end on June 2021, now extends to the end of this year. https://paultan.org/2021/05/31/government-extends-sst-exemption-period-again-to-dec-30-2021-100-on-new-ckd-cars-50-for-cbu/ 02/06/2021 9:58 AM SincereStock cash > total liabilities = risk free = high potential to improve the already very high dividend payout by further improving EPS or simply recurring current EPS in upcoming QR (current already high DY is still just less than half of the total earning) next QR YoY also has very good chance to improve as the last same QR records negative result, thus further lowering the already very low PE with the release of next QR positive future prospect + loan moratorium + extends of sst excemption undoubtly the current most undervalued among the listed automotive companies 02/06/2021 10:28 PM SincereStock big volume is yet to come since the latest QR released on 27 may, the price has already shown to be moving in positive direction, imagine what will happen when bigger volume come in, don't wait until too late personally myself have just entered this counter since 28 may after research on this company on 27 may, realising it is deeply undervalued. afterward on next trading day 1 june, add on again by successfully buying the dip during the fmco panic sell. currently still holding tight with good paper earning already, can't wait until it fly~! 02/06/2021 10:41 PM SincereStock @flippiwippi definitely, but I already invest major part of my capital here, maybe my mmc capital and profit can go else where, any other good suggestion? 04/06/2021 8:10 AM aliyusof SincereStock, u still keep mmc till SCR completion? Not buying more at 1.81? Mmc really undervalued stock that SM will have it for himself loh... 17/06/2021 12:09 PM SincereStock @aliyusof buy more already at 1.80 earlier, just not all in, need some free cash for opportunity else where also, don't want put all money in 1 basket, beside there is still risk here although it is very very minor one 17/06/2021 12:17 PM aliyusof Agreed. Rsk quite low, think SM will get it at 2. He has very good succesful privatization track record in the past. 17/06/2021 12:23 PM SincereStock market index recovered quite a lot today, mbmr still few steps behind, bauto also just released improved QR, but of course mbmr is still far better, PE 7.15, DY 6.16, NTA clean clean net cash and asset, time for the price to catch up with it's true value good chance to enter or reenter while it is still at weakness next trading day 18/06/2021 11:57 PM Jeffson87 Sincerestock, can consider uchitec. Reasonable PE, high DY, low debt, stable growth. Can have a look for long term investment =) 22/06/2021 11:29 PM SincereStock @Jeffson87 I prefer stock price with NTA discount, anyway thanks for your suggestion 24/06/2021 10:20 PM keithtrade MBMR great value at current price, safe long term investment with a 6% + yield. 25/06/2021 7:43 AM Jeffson87 Sincerestock. I see. Can have a look at Oriental Holding or MFCB then. 26/06/2021 10:35 AM SincereStock @jeffson87 I just checked both, Oriental not bad, cash balance more than total liabilities. I like clean NTA like this. but MFCB actually priced above NTA, the NTA not yet updated after recent stock split. thanks again for your kind suggestions 26/06/2021 12:48 PM RaksasaKambing I believe automotive manufacturing isn't open during MCO. Sales won't be running anyhow, but if they could do some manufacturing during this, there would be more stock ready for when things re-open. The wait time for some car models was quite long due to demand 09/07/2021 2:42 PM shiby @ RaksasaKambing fyi rtd @ jpj office already open since 1st july.but sale for may /june 2021 will report low number due to mco so no need to be panic 13/07/2021 6:44 PM RaksasaKambing One thing to note is how automotive sales work. If you're in F&B and you close for 2 months, those two months are lost because people will just have to get their food elsewhere. When you open back, they don't come and buy the quantity of food they lost for 2 months. Whereas when it comes to buying vehicles, if you are going to buy a car in 2021/22, it doesn't matter that you can't buy during a certain month. The pent-up demand will come back when the stores re-open. With that said, it is still important that the economy does well. If people don't have money, they can't buy cars. But overall I do not expect the total sales to be much affected by the intermittent closures. More important is whether production levels stay up and the marques we invest in continue to offer competitive models that the market wants. 14/07/2021 9:36 AM wallstreetrookie With fewer new cars being made amid a shortage in critical semiconductors, both retail consumers and rental car companies have gone to the used-vehicle market to get the wheels they need. Wholesale prices have soared as a result, up 54% in April from a year earlier at Manheim, the nation’s largest vehicle auction house. Most analysts say the increase in car prices, like the spike in inflation as a whole, will likely be transitory as production ramps up and demand subsides. Auto sales had soared amid a pandemic-era boom in road trips and hesitancy to take public transportation, trends that look likely to fade over coming months. 21/07/2021 4:10 PM charliecharlie juz sold my holdings in this counter, swapping it to General motor...hope our beloved administration dun drag all the counters to a few years behind / backwards 22/07/2021 3:15 PM PenangLang9180 https://www.theedgemarkets.com/article/auto-sales-shrank-1921-units-june-maa-trims-tiv-forecast Malaysia's Automotive Association (MAA) reduced Total Industry Volume (TIV) Forecast 23/07/2021 5:13 PM RaksasaKambing Depends on your needs and investment strategy. This is the 'buy and then close eye' type of counter. Not very volatile, backed up by high NTA, pays you dividends. The next quarter report will be good but subsequent quarter not good due to FMCO, but you can expect a bounce back in Q4 of this year and Q1-2 of next year. Most likely the SST holiday will be extended yet again. Current entry price is reasonable. 27/07/2021 10:08 AM  | | ||||||||||||||||||||||||||||||||||||||||||||||||||
