Art of Investments

MAHB: Matter of time before this stock goes towards RM10 (UPDATED)

Publish date: Sat, 25 Nov 2023, 07:05 PM

Yesterday, China and Malaysia made announcements which will move the needle for tourism and will be a major boost for MAHB. China included Malaysia in their list of countries for visa-free travel to China from 1 December 2023. A few hours later, Malaysia reciprocated by allowing China tourists to come to Malaysia visa-free. This is the first time in the history where Malaysians and the Chinese from China can travel to both countries without applying for a visa. 

In 2019, China was the number 3 destination for Malaysians, with 1.3 million visits to China. Meanwhile, China was also the number 3 country in terms of tourist arrivals to Malaysia, with 3.1 million visitors from China to Malaysia. China tourists were also one of the top spenders in MAHB's duty free. With this visa-free travel for both countries, we will easily see more than 1.3 million and 3.1 million visitors to and from China respectively very soon.

Before Covid in 2019, MAHB was recording record high passenger traffic every year with China contributing significantly to the records. In 2018 and 2019, MAHBs share price was trading at RM9-10 as seen below:

MAHB is certainly not the multi-bagger stock but it is a very high quality and undervalued stock that should re-rate significantly to RM9-10 very soon with this China development. The persistent dumping by EPF is clearly a mistake and people should question the quality of the fund managers and analysts there.

UPDATE: There we go. RM10! It was not supposed to rise this fast as MAHB's results showing full recovery have not even been released yet. I suspect this meteoric rise has something to do with the rumoured takeover of MAHB by Khazanah, EPF and Global Infrastructure Partners. If this deal is announced, investors may want to be extra cautious because GIP themselves is about to be owned by Blackrock and Blackrock is a strong Israeli supporter with massive investments in Israel and American weapon manufacturers. These weapons manufacturers supply weapons to Israel used to kill Palestinian women and children. This also means that if the government gives the green light to this deal, it sends the signal that they are supportive of indirectly giving billions of Ringgit of profits to the Israelis to fund their killing of Palestinian women and children. I myself will protest this and the Muslims will surely erupt at this development.