Total Contribution from associate should exceed 80mil this year.

Too bad~ year to date still yet to get any contract award.. lang lebah has been delay to early 2025. Same as Saudi’s Neom city.

The only excitement is Cambodia airport continue to growth.

Phnom Penh airport should record average >380 arrival flights per week in Q4 (versus Q3: 363 flights)

Core earning for 9months 2024 vs 2023:
RM ‘000
84,548 vs 52,910


9month 2024
Construction: -6.166m
Crane: 56.780m
Concessions: 61.902m
Elimination: -27.968m


9month 2023
Construction: 21.171m
Crane: 39.141m
Concessions: 33.230m
Elimination: -40.632m


**PBT exclude all one off items & before minority interest

24Q3 Result:

Construction: terrible, making loss!

Crane: hurt by forex but core earning actually achieve better Q-Q & Y-Y

Concession: superb; almost double Y-Y or Q-Q !
(Airport + roadcare both improve)

Muhibah core PBT (profit before tax & minority interest + exclude all one off items)

(RM‘000)

24Q3: 22,574
24Q2: 39,382
24Q1: 22,592

23Q4: 74,756
23Q3: 36,748
23Q2: 4,971
23Q1: 11,191

**Q4 used to exceptional stronger

NATGATE’s Core PBT (exclude forex impact)

24Q3: 16,990
24Q2: 34,399
24Q1: 20,368

23Q4: 19,767
23Q3: 19,514

Myeg cash flow:

Fy2023
Earn: 503m
Spent: 791m (mostly go to development cost + digital asset)
Debt: increase 402m (for dividend + operating)


Fy2022
Earn: 303m
Spent: 522m (mostly go to development cost + digital asset
Debt: increase 301m (for dividend + operating)


One day if bubble burst, how much the intangible things worth? But the debt is real & exists !

白粉的风险，白菜的利润 ～

Lol.. im the one stuck at 1.36 ! Review the QR first ba

FAVCO’s result Comparison between 9m24 vs 9m23:

Revenue: 569.4m vs 459.4m (+24%)
PBT: 35.6m vs 53.9m (-34%)
Core PBT: 56.8m vs 39.1m (+45%)
Tax pay: 17.7m vs 14.0m (+26%)

**core PBT refer to PBT exclude all one off items

Improving or terbalik? Clearly for judge !!!

FAVCO’s result Comparison between 9m24 vs 9m23:

Revenue: 569.4m vs 459.4m (+24%)
PBT: 35.6m vs 53.9m (-34%)
Core PBT: 56.8m vs 39.1m (+45%)
Tax pay: 17.7m vs 14.0m (+26%)

**core PBT refer to PBT exclude all one off items

Improving or terbalik? Clearly for judge !!!

Favco result Ok la~ 9 months tax paid around 17.6m

Base on 30% tax rate, the actual earning before tax should around 58.9m~ close with reported PBT 35.6m + forex loss of 24.8m

Unrealised loss eh~ Next quarter will add back!

Favco result Ok la~ 9 months tax paid around 17.6m

Base on 30% tax rate, the actual earning before tax should around 58.9m~ close with reported PBT 35.6m + forex loss of 24.8m

Unrealised loss eh~ Next quarter will add back!

RSS outstanding has reduce to 755,200 now;
compare peak at 2,935,200 one month ago

arbitration proceeding has been changed to May 2025 as stated in QR.

base on past 2 years history, Muhibah used to clinched in contracts during the year end:

RM 479m award in 2023 Nov
RM 438m award in 2022 Dec

Favco reported lower profit mainly due to Forex.
If take out all the one off items & forex from both quarters, the Q2 core PBT actually slightly higher compare Q1.

Q2 core PBT: 14.863m
Q1 core PBT: 14,686m

柬埔寨三大国际机场客流量同比增长26%
https://www.jianhuadaily.com/20240724/248297

Muhibah's share price hit RM 1.10 on 13th June which is the highest level since Mar 2021.

Subsequently the price has fall sharply to lowest RM 0.925 (-15.9%) in the following week.

Coincidently, the website showing the number of daily arrival flights in Phnom Penh airport also start dropping since the same week.
(big players also refer the same data ?)

Here are some figures for comparison:

23Q4: average 341 arrival flights per week
24Q1: average 356 arrival flights per week (still improving compare Q-Q)
1st Apr - 16th Jun: average 359 arrival flights per week (still improving compare Q1)
BUT then~
17th Jun - 23th Jun (the week after share price hit new high): total 343 arrival flights during the week (start falling)
24th Jun - 30th Jun: total 331 arrival flights during the week (lowest in 2024)

** The share price's movement is highly correlative with the airports' traffic~

Thankfully, the flights number has start rebound (back to average) since beginning of July as:

1st Jul - 7th Jul: total 360 arrival flights during the week
8th Jul - 14th Jul: total 352 arrival flights during the week
15th Jul - 21th Jul: total 365 arrival flights during the week

Hopefully the share price may rebound in tandem with the traffic soon~



** Please take note, the Cambodia's toruist low season used to happen during Q2 & Q3 v.s peak season during Q1 & Q4 !
** If the low season can maintain such number of flights, then Q4 figure will be much much better !!

Aiyoyo~

O&G - banyak job to award
Construction - banyak job to award
Airport - on track recovering

Ooi keng thye’s another counter - NOVAMSC dah goreng up. He is second largest shareholder of Muhibah leh.

Tunggu apa lagi ni !!

U.s imposed 25% tariff on China made crane~ good for Favco.

Ship-to-Shore Cranes

The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.

The daily departure flight from Sihanoukville airport has double up to 4 flights / day recently.

It has been maintain long long time at only 2 flights departure per day more than a year.

Famous with Frontkn; now in Gtronic

Mr Ooi Keng Thye become 2nd largest shareholder after Mac family..

+20% increase in airport passengers service charge

+Compensation of closure PP airport

+New agreement to operate Techo airport

最新进展：

睦兴旺（MUHIBAH，5703 ，主板建筑股）拥有柬埔寨机场（SCA）21%有效股权，该机场持有金边和西哈努克机场特许经营权。

尽管暹粒的特许经营权，早在2023年10月就交还给柬埔寨政府，不过，位于金边干丹的新国际机场目前正在建设中，预计将在明年首半年开始运作。

有关新机场预计将取代在金边营运的旧机场，而公司也将获得相应的赔偿。

睦兴旺 MUHIBAH
行家建议：

在与睦兴旺管理层进行会谈后，我们更加乐观看待公司在金边的机场特许经营权，将取得良好的成果。

该公司表示，目前正与柬埔寨政府协商，相信退出金边旧机场后，将可获得一笔赔偿费用。

与此同时，位于金边干丹的新国际机场的特许经营权，将交到睦兴旺的手中，取代现有经营权。

就整体而言，我们预计公司在今明财年的净利，会有更好的表现，主要是旅客人数增加，料带动机场业务表现走高。

此外，截至今年2月，公司手握22亿令吉的订单、造船厂的业务有所回升，且凭借海上专业，能从国油公司手中获得更多合约。

综合以上，我们重申“增持”评级，目标价维持1.34令吉不变。


分析：银河国际证券

目标价：1.34令吉

Muhibbah Engineering Bhd having recently secured a noise barrier package contract worth RM22mil under the Johor Baru-Singapore Rapid Transit System Link

SCA acquired operator rights at Techo Airport

https://construction-property.com/sca-acquired-operator-rights-at-techo-airport-while-operating-at-3-airports-in-cambodia/

According to the joint statement from SSCA & SCA, the Cambodia government has approved CAIC to appoint SCA as the key operator of the new airport !!


SCA: SOCIETE CONCESSIONAIRE DE I' AEROPORT (Muhibah’s association)
SSCA: State Secretariat of Civil Aviation (Cambodia Governemnt)
CAIC: Cambodia Airport Investment Co., Ltd (developer & owner of the new airport)


柬政府授权法国机场特许公司参与经营新金边国际机场
https://www.jianhuadaily.com/20240405/234893

KUALA LUMPUR: Rakuten Trade Sdn Bhd has boosted Muhibbah Engineering (M) Sdn Bhd's earnings per share (EPS) for fiscal years 2024 and 2025 (FY24/FY25), marking increases of 41 per cent and 43 per cent respectively.

This surge follows Muhibbah Engineering's remarkable performance, surpassing its expected net profit for fiscal year 2023 (FY23) by an impressive margin of 141 per cent.

"In the fourth quarter of FY23 (4QFY23), Muhibbah achieved a core net profit of RM45 million, contributing to a full-year core net profit of RM53 million, inclusive of its associate's contributions.

"This performance was attributed to improved divisions such as Marine Shipyard, Cranes, and Intelligent Automation, along with a better-than-expected recovery in Cambodian tourist traffic," it said in a note today.

The firm expects Muhibbah to secure more contracts due to Petronas' heightened capital expenditure and transportation infrastructure projects like the Penang LRT, which require noise barrier systems.

"This enhances Muhibbah's earnings predictability as it enters a phase of increased profitability," it added.

Additionally, Rakuten Trade said the engineering company stands to gain from the rapid earnings rebound of its associates through its airports in Cambodia as tourist traffic steadily recovers.

"In the 4QFY23, Cambodia's airport passenger levels reached 40 per cent of the pre-pandemic levels in the same period of fiscal year 2019 (FY19).

"We anticipate further recovery in passenger traffic, especially with the expected increase in Chinese tourists.

"It is worth noting that in FY23, passenger numbers from China only accounted for approximately 41 per cent of the levels seen in FY19.

The firm continued that it has been suggested that Cambodian airports have raised passenger service and aeronautical charges by at least 20 per cent since October 2023.

"This increase partly offsets the loss of revenue and profit contribution from Siam Reap airport after the compensation exercise.

Consequently, it said the combination of these positive factors is expected to drive earnings from its associates to unprecedented levels in FY24 and beyond.

Rakuten Trade has suggested a 'buy' rating for the engineering company, setting a raised target price of RM1.14.

KUALA LUMPUR: Rakuten Trade Sdn Bhd has boosted Muhibbah Engineering (M) Sdn Bhd's earnings per share (EPS) for fiscal years 2024 and 2025 (FY24/FY25), marking increases of 41 per cent and 43 per cent respectively.

This surge follows Muhibbah Engineering's remarkable performance, surpassing its expected net profit for fiscal year 2023 (FY23) by an impressive margin of 141 per cent.

"In the fourth quarter of FY23 (4QFY23), Muhibbah achieved a core net profit of RM45 million, contributing to a full-year core net profit of RM53 million, inclusive of its associate's contributions.

"This performance was attributed to improved divisions such as Marine Shipyard, Cranes, and Intelligent Automation, along with a better-than-expected recovery in Cambodian tourist traffic," it said in a note today.

The firm expects Muhibbah to secure more contracts due to Petronas' heightened capital expenditure and transportation infrastructure projects like the Penang LRT, which require noise barrier systems.

"This enhances Muhibbah's earnings predictability as it enters a phase of increased profitability," it added.

Additionally, Rakuten Trade said the engineering company stands to gain from the rapid earnings rebound of its associates through its airports in Cambodia as tourist traffic steadily recovers.

"In the 4QFY23, Cambodia's airport passenger levels reached 40 per cent of the pre-pandemic levels in the same period of fiscal year 2019 (FY19).

"We anticipate further recovery in passenger traffic, especially with the expected increase in Chinese tourists.

"It is worth noting that in FY23, passenger numbers from China only accounted for approximately 41 per cent of the levels seen in FY19.

The firm continued that it has been suggested that Cambodian airports have raised passenger service and aeronautical charges by at least 20 per cent since October 2023.

"This increase partly offsets the loss of revenue and profit contribution from Siam Reap airport after the compensation exercise.

Consequently, it said the combination of these positive factors is expected to drive earnings from its associates to unprecedented levels in FY24 and beyond.

Rakuten Trade has suggested a 'buy' rating for the engineering company, setting a raised target price of RM1.14.

Part 2: Catalyst / Upcoming events:

1. MRT 3 / Penang LRT
- high chance for Noise Barrier job as it was the winner for past rails/highway projects
- other related parts/works award might be bonus

2. Strong OIL price may support continuous Capex spending
- more than RM 990m jobs awarded directly from Petronas between 2022 & 2023
- Petronas’s RM 25b/year capex to spend locally

3. Recovery of Cambodia tourist
- flights passengers jump > 100% in 2023 compare 2022
- concession profit improved significantly to RM 60m (compare to RM1m loss in 2022)

4. Compensation from Cambodia as early termination of airport concession
- new airport to replace the existing Phnom Penh airport by 2025/26
- unlike the SiemReap airport (non-exclusive rights), Phnom Penh airport which has an exclusive clause in the concession agreement should receive fair compensation
- based on the RHB research in March 2020, the estimate compensation should between RM 747m - 874m (actual value should be lesses now as tenure shorten)

5. Petronas Safina Project (marine)
- aims to build up to 100 vessels over the next 4-5 years to replace the old vessels
- Muhibah is one of the very few local shipyards shortlisted by Petronas
- back to last peak cycle during 2010-2014, Muhibah’s marine division recored continuous > Rm 40m profit / year

6. Westport expansion plan RM 39.6b
- expertise in wharf & port related job
- existing client relationship

7. Saudi Line City project
- a linear smart city which is designed to have no cars, streets or carbon emissions
- CIMB research in Feb 2024 first disclosed that Muhibbah alluded to possible tenders

Part 2: Catalyst / Upcoming events:

1. MRT 3 / Penang LRT
- high chance for Noise Barrier job as it was the winner for past rails/highway projects
- other related parts/works award might be bonus

2. Strong OIL price may support continuous Capex spending
- more than RM 990m jobs awarded directly from Petronas between 2022 & 2023
- Petronas’s RM 25b/year capex to spend locally

3. Recovery of Cambodia tourist
- flights passengers jump > 100% in 2023 compare 2022
- concession profit improved significantly to RM 60m (compare to RM1m loss in 2022)

4. Compensation from Cambodia as early termination of airport concession
- new airport to replace the existing Phnom Penh airport by 2025/26
- unlike the SiemReap airport (non-exclusive rights), Phnom Penh airport which has an exclusive clause in the concession agreement should receive fair compensation
- based on the RHB research in March 2020, the estimate compensation should between RM 747m - 874m (actual value should be lesses now as tenure shorten)

5. Petronas Safina Project (marine)
- aims to build up to 100 vessels over the next 4-5 years to replace the old vessels
- Muhibah is one of the very few local shipyards shortlisted by Petronas
- back to last peak cycle during 2010-2014, Muhibah’s marine division recored continuous > Rm 40m profit / year

6. Westport expansion plan RM 39.6b
- expertise in wharf & port related job
- existing client relationship

7. Saudi Line City project
- a linear smart city which is designed to have no cars, streets or carbon emissions
- CIMB research in Feb 2024 first disclosed that Muhibbah alluded to possible tenders

Part 1: Introduction of Muhibah’s Business


1. Crane division
- owns 64% of total shareholding in Favelle Favco Berhad (stock code: 7229)
- the cranes mainly use for tower building, oil and gas sector, wind farm installation, port handling & etc
- Favco’s crane was used to construct the world tallest buildings, include:
i) Burj Khalifa, Dubai
ii) Merdeka 118, KL
iii) One Word Trade Center, NewYork
iv) Taipei 101, Taipei
v) Shanghai World Financial Center, Shanghai
vi) Tun Razak Exchange, KL
vii) International Commerce Centre, Hongkong
viii) Petronas Twin Towers, KL


2. Infrastructure Construction division
- mainly involve o&g projects, port, highway, railway, airport, bridge and etc
- completed project include:
i) installation of noise barriers for MRT, LRT, SUKE & etc
ii) wharf & terminals at Westport, Klang & Jurong, Singapore
iii) various of Petronas’s projects (onshore & offshore)
iv) large cargo building at Kuala Lumpur International Airport
v) hydroelectric project at Sarawak
vi) Ministry of Transport’s headquarter at Putrajaya
vii) Royal Malaysia Naval Base project
viii) Penang Bridge upgrading project


3. Marine Ship Repairing / Ship Building division
- owns the second largest offshore fabrication yard in Malaysia
- built and delivered more than 70 vessels both locally & overseas
- include Offshore Supply Vessels, Anchor Handling Tug/ Supply Vessels and Offshore Well Support Vessels with DP2 capabilities


4. Airport Concession
- owns 21% effective stake in Cambodia Airports
- manages the 2 operating international airports: Phnom Penh (capital city) and Sihanoukville


5. Road Maintenance Concession
- owns 21% stake in Roadcare (M) Sdn Bhd
- awarded concession to maintain Federal Roads in central and eastern Peninsular Malaysia (Selangor, Pahang, Terengganu & Kelantan)


6. Other
- second largest shareholder (7.96%) in Master-Pack Group Bhd (stock code: 7029)




** Strong outstanding Order-Book of RM 2.20b
- growth from RM 1.58b (2022) / RM 0.83b (2021) / RM 0.97b (2020) / RM 1.5b (2019) / RM 1.7b (2018)

** Nature of it business, good proxy for recovery in Tourist, Infrastructure, Marine and O&G sector

What make Muhibah looks attractive ?

Part 1: Introduction of Muhibah’s Business


1. Crane division
- owns 64% of total shareholding in Favelle Favco Berhad (stock code: 7229)
- the cranes mainly use for tower building, oil and gas sector, wind farm installation, port handling & etc
- Favco’s crane was used to construct the world tallest buildings, include:
i) Burj Khalifa, Dubai
ii) Merdeka 118, KL
iii) One Word Trade Center, NewYork
iv) Taipei 101, Taipei
v) Shanghai World Financial Center, Shanghai
vi) Tun Razak Exchange, KL
vii) International Commerce Centre, Hongkong
viii) Petronas Twin Towers, KL


2. Infrastructure Construction division
- mainly involve o&g projects, port, highway, railway, airport, bridge and etc
- completed project include:
i) installation of noise barriers for MRT, LRT, SUKE & etc
ii) wharf & terminals at Westport, Klang & Jurong, Singapore
iii) various of Petronas’s projects (onshore & offshore)
iv) large cargo building at Kuala Lumpur International Airport
v) hydroelectric project at Sarawak
vi) Ministry of Transport’s headquarter at Putrajaya
vii) Royal Malaysia Naval Base project
viii) Penang Bridge upgrading project


3. Marine Ship Repairing / Ship Building division
- owns the second largest offshore fabrication yard in Malaysia
- built and delivered more than 70 vessels both locally & overseas
- include Offshore Supply Vessels, Anchor Handling Tug/ Supply Vessels and Offshore Well Support Vessels with DP2 capabilities


4. Airport Concession
- owns 21% effective stake in Cambodia Airports
- manages the 2 operating international airports: Phnom Penh (capital city) and Sihanoukville


5. Road Maintenance Concession
- owns 21% stake in Roadcare (M) Sdn Bhd
- awarded concession to maintain Federal Roads in central and eastern Peninsular Malaysia (Selangor, Pahang, Terengganu & Kelantan)


6. Other
- second largest shareholder (7.96%) in Master-Pack Group Bhd (stock code: 7029)

Part 2: Catalyst / Upcoming events:



————— To be Continue —————

Part 1: Introduction of Muhibah’s Business


1. Crane division
- owns 64% of total shareholding in Favelle Favco Berhad (stock code: 7229)
- the cranes mainly use for tower building, oil and gas sector, wind farm installation, port handling & etc
- Favco’s crane was used to construct the world tallest buildings, include:
i) Burj Khalifa, Dubai
ii) Merdeka 118, KL
iii) One Word Trade Center, NewYork
iv) Taipei 101, Taipei
v) Shanghai World Financial Center, Shanghai
vi) Tun Razak Exchange, KL
vii) International Commerce Centre, Hongkong
viii) Petronas Twin Towers, KL


2. Infrastructure Construction division
- mainly involve o&g projects, port, highway, railway, airport, bridge and etc
- completed project include:
i) installation of noise barriers for MRT, LRT, SUKE & etc
ii) wharf & terminals at Westport, Klang & Jurong, Singapore
iii) various of Petronas’s projects (onshore & offshore)
iv) large cargo building at Kuala Lumpur International Airport
v) hydroelectric project at Sarawak
vi) Ministry of Transport’s headquarter at Putrajaya
vii) Royal Malaysia Naval Base project
viii) Penang Bridge upgrading project


3. Marine Ship Repairing / Ship Building division
- owns the second largest offshore fabrication yard in Malaysia
- built and delivered more than 70 vessels both locally & overseas
- include Offshore Supply Vessels, Anchor Handling Tug/ Supply Vessels and Offshore Well Support Vessels with DP2 capabilities


4. Airport Concession
- owns 21% effective stake in Cambodia Airports
- manages the 2 operating international airports: Phnom Penh (capital city) and Sihanoukville


5. Road Maintenance Concession
- owns 21% stake in Roadcare (M) Sdn Bhd
- awarded concession to maintain Federal Roads in central and eastern Peninsular Malaysia (Selangor, Pahang, Terengganu & Kelantan)


6. Other
- second largest shareholder (7.96%) in Master-Pack Group Bhd (stock code: 7029)



Part 2: Catalyst / Upcoming events:



————— To be Continue —————

Part 1: Introduction of Muhibah’s Business


1. Crane division
- owns 64% of total shareholding in Favelle Favco Berhad (stock code: 7229)
- the cranes mainly use for tower building, oil and gas sector, wind farm installation, port handling & etc
- Favco’s crane was used to construct the world tallest buildings, include:
i) Burj Khalifa, Dubai
ii) Merdeka 118, KL
iii) One Word Trade Center, NewYork
iv) Taipei 101, Taipei
v) Shanghai World Financial Center, Shanghai
vi) Tun Razak Exchange, KL
vii) International Commerce Centre, Hongkong
viii) Petronas Twin Towers, KL


2. Infrastructure Construction division
- mainly involve o&g projects, port, highway, railway, airport, bridge and etc
- completed project include:
i) installation of noise barriers for MRT, LRT, SUKE & etc
ii) wharf & terminals at Westport, Klang & Jurong, Singapore
iii) various of Petronas’s projects (onshore & offshore)
iv) large cargo building at Kuala Lumpur International Airport
v) hydroelectric project at Sarawak
vi) Ministry of Transport’s headquarter at Putrajaya
vii) Royal Malaysia Naval Base project
viii) Penang Bridge upgrading project


3. Marine Ship Repairing / Ship Building division
- owns the second largest offshore fabrication yard in Malaysia
- built and delivered more than 70 vessels both locally & overseas
- include Offshore Supply Vessels, Anchor Handling Tug/ Supply Vessels and Offshore Well Support Vessels with DP2 capabilities


4. Airport Concession
- owns 21% effective stake in Cambodia Airports
- manages the 2 operating international airports: Phnom Penh (capital city) and Sihanoukville


5. Road Maintenance Concession
- owns 21% stake in Roadcare (M) Sdn Bhd
- awarded concession to maintain Federal Roads in central and eastern Peninsular Malaysia (Selangor, Pahang, Terengganu & Kelantan)


6. Other
- second largest shareholder (7.96%) in Master-Pack Group Bhd (stock code: 7029)



Part 2: Catalyst / Upcoming events:



————— To be Continue —————