Journey to Wealth
Multi-Purpose Holdings (2) - Selling AA Anthony? Buy
- According to news reports, Multi-Purpose Holdings Bhd (MPHB) could be selling its stockbroking arm, AA Anthony Sdn Bhd to the latter's management via a management buyout.
- Sources quoted in the news report said that Penang-based AA Anthony Sdn Bhd's management is led by Datuk Lim Tiong Chin.
- We view this development favourably. It appears that MPHB is on track towards disposing its non-gaming assets.
- We believe that the other non-gaming assets, which are up for sale, are the insurance and hotel divisions.
- According to MPHB's 2011 Annual Report, the stockbroking division had a net asset value of RM171.2mil as at end-FY11.
- Assuming a price to net asset ratio of 1.0x, then the disposal of AA Anthony would fetch proceeds of RM171.2mil.
- We believe that MPHB would be using proceeds from the disposal of its assets to pare down borrowings and pay out more dividends.
- As at end-December 2011, MPHB had net borrowings of RM76.6mil at the company level. MPHB's subsidiary, Magnum Corporation had net borrowings of almost RM900mil.
- We reckon that Magnum would be reducing its borrowings through its operating cashflows, which are estimated at more than RM500mil annually.
- We maintain a BUY on MPHB due to its transformation into a purer NFO. This would narrow the valuation gap between MPHB and Berjaya Sports Toto, which is currently trading at FYE April 2013's PE of 14.5x.
Source: AmeSecurities
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
.png)
MQ Trading Signals
Time
Signal
Duration
Type
2024-10-04 10:40:00
EMA 5
10 Mins
BUY
2024-10-04 10:30:00
EMA 5
10 Mins
SELL
2024-10-04 10:00:00
ADX
Hourly
BUY
2024-10-04 09:40:00
EMA 5
10 Mins
BUY
2024-10-04 09:30:00
EMA 5
10 Mins
SELL
Apps
Top Articles
1
2
save malaysia!
3
save malaysia!
4
5
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
