PetronM fast catching up to HRC. KYY may be loading up PetronM instead . He can’t eat his humble pie .

PetronM at yesterday closing $6.71 still a very good buy !

Very good results instead! Profit increase 67% yoy!

@Contrarian, per account 31/12/21 that segregated the insurance segment:
Asset classified held for disposal $2,906942,000
Liabilities held for disposal ($1,703,465,000)
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Nett asset $1,203,477,000

Less non-controlling interest ($646,158,000) (on assumption this is Generali portion)

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Balance nett asset belong to MPHB $557,319,000

The about $557.4 mil nett asset is before considering disposal gain for the 51% sales of about $ 250 mil which will only be recognized after completion of the sales.

@Contrarian, I think the disposal sum for the 1st 49% of $355+ mil is retained in the insurance holdings and therefore reflected in the asset held for sales amount when the company is separating the total insurance assets and liabilities per account 31/12/21. There is also about $128 mil receivable current which I believe is the credit receivable.

You should also look at the account a qtr earlier before the insurance segment was separated to see how much were the cash , investment securities and receivable.

TheContrarian,
the money is still there , nothing spend and nothing distributed to shareholders since 2014. They are in Cash and in securities investment which the management said are money market funds. Perhaps a small portion is utilized to fund the credit business too.
Although there has been BNM’s restriction on dividend distribution (as the company is a financial holdings), there is no restrictions for the company to utilize the money to acquire new business or expand existing business. Yet nothing is done after 7-8 years and the management is clearly show no appetite to take on new business. I tend to believe that a large chunk of the cash will eventually be distributed to shareholders. The political background of the company in the past (as I share in a separate post this morning) and my suspicions that some ‘old politicians’ are still behind the scenes strengthen my argument on the dividend distribution. I may be wrong .


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Posted by TheContrarian .
@Johnzhang, what happened to the RM700 million over the past 7 years since 2014?

PetronM is fast catching up to Hengyuan

Agreed with TheContrarian that the consideration should be higher than the $355mil for the 1st 49%. Irrespective of what the final amount is, this will add to the existing over $700 mil cash pile after the 1st 49% sales. What is more important for us to think about is what the company is going to do with over $1 billion cash pile.
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http://www.mphbcap.com.my/popup_news.asp?id=156

Though it is an old writeup, it is still relevant to understand the political battle trying to control MPHB. Shareholders should know a bit of this background.

http://lib.perdana.org.my/PLF/News_Online/2017/00105/MalaysiaToday%5B5October2016%5DMAHATHIR%E2%80%99S%20MULTI-BILLION%20RINGGIT%20BANKING%20PHILEO-SOPHY,%20PART%202.pdf

aliyusof, as I am traveling outside Malaysia I have not read the Edge. What’s the gist in the paper?

Below news essentially means LTAT will reduce its investment in Local public equity from existing 44.1% to 20 %. and increase foreign public equity from 0 to 30%. In order to achieve this , LTAT may divest certain entity ? Which one will be most likely candidate?
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KUALA LUMPUR – The Armed Forces Fund Board (LTAT) aims to increase its public equity exposure to 50% through the realignment of its asset allocations as it plans to make a foray into international markets.

Chief executive officer Datuk Ahmad Nazim Abdul Rahman said the retirement fund targets to increase its public equity allocation to 50% from 44.1%, with 30% to be dedicated to foreign investments.

“So, we will see 30% allocated for investments abroad while the remaining 20% will be for the domestic market.

Below news essentially means LTAT will reduce its investment in Local public equity from existing 44.1% to 20 %. and increase foreign public equity from 0 to 30%. In order to achieve this , LTAT may divest certain entity ? Is Bplant to be divested?

KUALA LUMPUR – The Armed Forces Fund Board (LTAT) aims to increase its public equity exposure to 50% through the realignment of its asset allocations as it plans to make a foray into international markets.

Chief executive officer Datuk Ahmad Nazim Abdul Rahman said the retirement fund targets to increase its public equity allocation to 50% from 44.1%, with 30% to be dedicated to foreign investments.

“So, we will see 30% allocated for investments abroad while the remaining 20% will be for the domestic market.

Is Dato Neoh Soo Keat who emerges as a substantial shareholder trying to take controlling stake in BPuri for his property development listing?

Profit surge almost 3 folds !

Posted by StartOfTheBull > 1 hour ago | Report Abuse

Labour shortage caused production dropped and thus revenue and profit dropped.

PChem’s businesses are in the downstream segment like polymer, methanol , urea etc
Fuel oil refining segment belongs to Petronas, the mother company.

Don’t try to fool people with your nonsense!
Cepat’s Q1 2022 profit is 172% increase yoy.
The profit increase may be 200% higher for FY2022 if CPO stay around present level .
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Posted by plantationgameover > 6 hours ago | Report Abuse

CEPAT QR is out, -36% QoQ because of manpower shortage. tomorrow bplant will follow plummet. those who dont listen to me to take profit prepare to cut loss tomorrow kikiki

s3, agreed . There are all sort of players in stock market. But I don’t think you can get $1 price you hope for . Haha..

Just be patient a bit longer. The big news yet to come .

Not true . I started accumulating Hengyuan and PetronM since early Feb 2022 . Hahaha….

Posted by pang72 > 2 hours ago | Report Abuse

If not me and probability hard sell. No one will interest in hengyuan!!

Cepat has today reported 172% increase of profit yoy. MHC results will be fantastic too.

For plantation business which has seasonal high and low crop, it is only meaningful to compare results yoy.
Q1 2022 profit is 172% higher yoy.
Q2 2022 profit growth will easily exceed 200% !

Youwin, I don’t think it is the case . There is no point to keep cash in bank more than necessary for operations. Must well park the idling cash in some liquid and safe investment that generate a few % return . I have been told during the AGMs that the investment securities and unit trusts are money market funds that could generate better return than FD .

Ya. Investment securities and unit trust are very liquid assets too. There is some money in the credit business too. My point is there are still $3-400 mil nett liquid assets apart from the huge insurance sales proceed.

The market is seriously under-appreciating the intrinsic value of mphb cap at the moment. It is going to change very soon .

After selling the insurance, mphb still owns multi billion $ worth of good quality land in KL, Sgor, Penang and Johor.

Assuming mphb decides to distribute 100% of the insurance sales proceeds, the amount is estimated to be about $1.25 per share . And the company still left with about $300 -400 mil liquid current assets from previous land disposal in Penang and Pengarang + all the good value landbank .
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Posted by speakup > 7 minutes ago | Report Abuse

SCGM is a almost an empty shell after the sale. not worthless, but maybe a few sens. IMO

@Contrarian, my gut feeling tells me that the quantum of capital repayment and/or special dividend from MPHBcap will a big positive surprise too. Let’s just be patient a little longer for the announcement.

SCGM to distribute to shareholders $2.25 per share from the disposal of packaging business. How much will MPHB cap distribute the proceed from insurance unit disposal totaling $900mil to $1 bil ( ie 49% earlier +51% now)?
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KUALA LUMPUR (May 9): Food packaging manufacturer SCGM Bhd has sealed a conditional share sale agreement (SSA) to sell its core plastic packaging business to two Japanese firms, Mitsui & Co and FP Corp (FPCO), for RM544.38 million cash.

Of the proposed proceeds of RM544.38 million, SCGM said in a filing with the stock exchange that RM425.56 million has been earmarked for a proposed distribution to its entitled shareholders within nine months.

For illustration purposes, the proposed distribution entails capital reduction and repayment of 36 sen per share, and proposed special dividend of RM1.85 per share. In total, shareholders will receive RM2.21 per share.

Do IDSS on HY is tantamount to suicide . Hahaha

@ Contrarian, kindly share how you arrived at min $620 mil .

MPHB can afford to pay up to $1 as special dividend. Upon completion of the insurance unit sales, it has nett current asset exceeding $1.2 billion . Let’s pray for that to happen.

The first 49% was sold for $356 mil + some $20 mil (?) adjustment too. That was based on 2.45X price to book ratio.

I guess the remaining 51% may be based on the same valuation basis. If it is indeed based on same 2.45X price to book ratio ,the 51% may fetch over $500 mil as book value has gone up with retained earnings from the past 7 years .

@Newbielnsharemarket, pls go through the postings in the last one year in this forum . You will find the answers.

After the special dividend, proposal to take the company private will come within 1 years.

Generali wants to complete the multi party deals by 30th June. As such , EGM will most likely be end May or early June.

BNM approved the disposal. The next thing will be the next big event will be the quantum of special dividend to be announced before EGM to seek shareholders’ approval. I hope the special dividend is extraordinary.

Below is what KYY wrote in 2017. He explained how crack spread determines profitability of a refinery. Now he said doubtful. That’s how cunning he can be !
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Hengyuan: Detailed explanation of its profit margin or crack spread

admin admin
4 years ago
I have written several articles recommending buy on Hengyuan which you can find on my blog. Those who have bought should be laughing and some wanted to know why I am so bullish to buy Hengyuan.

I am not asking you to buy to push up the price to make me richer because based on the huge volume traded daily, obviously big financial institutions are buying aggressively. These financial institutional investors have their experts to analyse the stock in detailed before they buy.

Let me try to give you a clearly understanding of Hengyuan’s business operation.

Hengyuan is in the oil refinery business. It buys crude oil to refine it into several types of oil products which are selling at different prices. The most expensive is high grade petroleum and the cheapest is bitumen tar for the road surface.

Its profit essentially depends on its margin of profit or crack spread.

Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by “cracking” the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products.

In the futures markets, the “crack spread” is a specific spread trade involving simultaneously buying and selling contracts in crude oil and one or more derivative products, typically gasoline and heating oil. Oil refineries may trade a crack spread to hedge the price risk of their operations, while speculators attempt to profit from changes in the oil/gasoline price differential.

Factors affecting the crack spread

One of the most important factors affecting the crack spread is the relative proportion of various petroleum products produced by a refinery. Refineries produce many products from crude oil, including gasoline, kerosene, diesel, heating oil, aviation fuel, asphalt and others. To some degree, the proportion of each product produced can be varied in order to suit the demands of the local market. Regional differences in the demand for each refined product depend upon the relative demand for fuel for heating, cooking or transportation purposes. Within a region, there can also be seasonal differences in demand for heating fuel versus transportation fuel.

The mix of refined products is also affected by the particular blend of crude oil feedstock processed by a refinery, and by the capabilities of the refinery. Heavier crude oils contain a higher proportion of heavy hydrocarbons composed of longer carbon chains. As a result, heavy crude oil is more difficult to refine into lighter products such as gasoline. A refinery using less sophisticated processes will be constrained in its ability to optimize its mix of refined products when processing heavy oil.

The crack spread chart

The chart below shows Hengyuan’s crack spread which has been low in the 1st half year and is improving for the 2nd half year.

As a result, its 1st half year eps was only Rm 1.20, as announced its 3nd quarter was Rm 1.21 and 4th quarter should be better than the 3rd quarter. Assuming its 4th quarter eps is Rm 1.30, its total eps for the year will be Rm 3.71 per share.

Assuming it will be selling at P/E 5, the price should be Rm 18 per share, when its 4th quarter result is announced before the end of February 2018. Can you find another stock with similar quality selling P/E 5?

KYY is damn ignorant that it is the Malaysian government paying the difference between international price and local subsidized price .
It is going to cost the government over RM28 bil as crude stay well above usd 100 .
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Malaysia's 2022 petroleum subsidy to rise to RM28b from RM11b in 2021 if crude oil prices remain above US$100/barrel — Tengku Zafrul

Uncle Koon make himself looks very stvpid with his stvpid reasoning!

Uncle koon make himself look very stvpid with his stvpid reasoning!

Crack spread has gone crazy high. PetronM and Hengyuan should go crazy high soon .

2022年涨幅最大的种植股 - BPLANT:
https://youtu.be/V6HZye504TE

2022年涨幅最大的种植股 - BPLANT:
https://youtu.be/V6HZye504TE

Steel price in China has gone up from RMB4,100 per tonne in Nov 2021 to RMB5,200 now . Good sign ahead .

Steel price in China has gone up from RMB4,100 per tonne in Nov 2021 to RMB5,200 now . Good sign ahead .

Steel price in China has gone up from RMB4,100 per tonne in Nov 2021 to RMB5,200 now . Good sign ahead .

Palm oil producers and now refinery are going to make record profits this year Next shall be steel .

Supersinginvestor , I dump UP 1st thing after seeing the disastrous QR. One share of UP could exchange for 2.5 share SOP.
Between 27th and this afternoon , UP down 31sen after considering the dividend. SOP up about 50 sen the same period. Therefore we gain 2.5x 50 sen =$1.25 per UP share . And avoided the 31 sen loss in UP too.

Valueguru, could you tell us the relative potential between HY and PetronM. If I am not wrong both have about the same refining capacity. I am in both counters

Valueguru, I fully agree with you .

I concur his view