when is the financial result for the 3rd quarter coming out...hopefully it's good...so that it can give the share price a boost...

Good consolidation today....to buy for mid term...

Good trend today...go go...0.08 dividend coming soon!

Hoprfully by dividend ex date reach 3

Nice..if volume continue..1.8 will be reached today;)

Good volume today...;o)

If the companies continues to buy back the shares..hopefully there is some big announcement soon..;o)

Then should be 1.8 by end of this week...;oP

Seems like the next resistance is 1.74...hopefully can break by this week...

Good to know that Yanxuan8...hopefully the bull have recharge and now for round 2...

typical analysis...Newbiestocks (got ban)...then comes newbiestocksreturn..both not having eye to eye with KC Loh...then comes KClow...which types like newbiestocksreturn and when other people having opinion, both is quick to defend each other...go figure....

with the recent stock split..would the expected dividend be half compare to normal - as the nos. of share is double?

Good bull run for the day....let the bull recharge during the weekend with a renew boost next week...Have a good weekend everyone!

I feeling that KClow and Newbiestockreturn is the same guy...

Good volume today...if continue next week with more volume 1.8 will be coming soon...

only thing is those contra players...selling at T4

hit briefly...well if momentum continue next week...then TP will reach even before end of the year...

You seen to volume on Westport....crazy...

better still...if can upper limit today....everyone will be smiling for the weekend...;oP...day dreaming..

now 1.71...Imoogi99...with continue interest...we might hit your target at 1.74 today

Touch 1.7....good...;o)

Any news when the 3rd quarter result will be out...maybe will have additional boost to the counter if result is good..

Moving slowly...sure will reach your price Iwalk...don't worry...

Ya....keep holding...TP 2.38 still long way to go...;o)

If volume continue...then will touch 1.7 today...TP 2.38...still many days to go...buckle your seat belt and wait...;oP

On the way...if can pass 1.66 then should no problem to hit 1.7 today...;o)

If volume continue tomorrow...1.7....;)

Dividend 0.015 ex date 24/10/13...based on last year trend...there should be another dividend by end of this year..Special dividend already given out this year...hopefully next year...same thing...;)

Need more volume to do that..maybe tomorrow...still cheap...to buy in this gold mine..

Hopefully more announcement and coverage by other banks..then we'll see big actions...

The current Government should seriously look into the A & G report on the wastage and take serious action. If can cut cost here and there, then it's better than increasing petrol and other prices which is burden to the people..

Another good dividend payout counter which you might want to consider P & O. Normal dividend is nice and they have also special dividend..

if based on total payout this year..it's more..

Many long term traders here..no worries..TP still intact..

Time to buy in now...as this share will most likely be up when close to the ex date on the dividend...8 cents per share....

both of them has a long history...checkout HLIND...

Any idea if they will announce any dividend in the last quarter of 2013?

Dividend 2012 around 7.2% if based on current price and 2013 including special dividend is slightly more than 16%. If the company have no plans to further invest their capital...there might be a chance for a special dividend also next year...good to keep long term for dividend. Apart from this, the company is constantly buying back their share...

Based on the trend of dividend, there will be one more end of this year...

Anyone got any news if they are annoucing more dividend this year?

1.66 touch...next target 1.74...go go...

TP 2.38...engine moving up and up

Come on Huat ah!

Good volumes in the morning...time to go for TP 2.38....

buying interest is back...time to hold on to the prices and push the price up...

Sorry for the spam...

The new FSA may speed up partial disposal of MPIB. To recap, Parliament has passed the new Financial Services Act, 2013 (FSA), which will consolidate the regulation of all financial services companies which were previously governed by separate Acts. Under the new FSA, MPHB as a company which holds >50% of an insurance company, will be required to apply for financial holding company (FHC) status. Once designated as an FHC, MPHB would not be permitted to carry on any business other than the business of holding investments in corporations which are engaged in financial services, unless approved by BNM. With such a scenario, we believe that MPHB would highly likely pare down its stake in MPIB to below 50% (in theory, it can lower its stake to 30% given today’s maximum 70% foreign ownership cap) to avoid the FHC status which will prohibit the company from operating its property development division.
· Steady earnings outlook… Meanwhile, MPHB is expected to deliver modest growth in the intermediate term, reflecting high single-digit growth at MPIB and flattish earnings at the property division. In 2Q13, MPHB reported revenue of RM80.0m and pre-tax profit (PBT) of RM16.5m. Its insurance arm was the main income generator, contributing 87.9% and 83.7% of revenue and PBT respectively. For FY13, MPHB only has three effective quarters as the company did not consolidate 1Q13 earnings into its financial statements.
· …with the general insurance arm being the main income source. While the property segment is expected to drive MPHB’s growth in the medium term, MPIB accounted for 76% and 69% of the group’s FY12 revenue and operating profit respectively. Meanwhile, the hospitality and property investment segments contributed 23% and 27% of group revenue and operating profit, mainly derived from the hotels (Hotel Flamingo by the beach in Penang and Hotel Flamingo by the lake in Selangor). We expect the JV contribution to kick in by 2016, assuming MPHB launches its Rawang project in 2014.
· MPIB’s earnings prospects should improve in 2016 when product pricing within the general insurance company is scheduled to be de-tariffed. To recap, in 2011, Bank Negara announced it will revise the existing tariff framework, in the aim of a full de-tariffication by 2016. Pricing liberalisation would be most meaningful to the motor segment as all automobile insurers have been largely loss-making as policy rates have not been allowed to be raised to offset continuing large claims. The motor segment is the second-largest contributor to MPIB, accounting for 25% of MPIB’s total gross premiums in 2012.
· An emerging property player. MPHB’s current strategy is to grow its property earnings via JVs as the group is constrained by hefty capital requirements imposed on financial institution-holding companies. However, MPHB could eventually transform into a full-fledged property player once it sufficiently monetises its assets, or after disposing a majority stake of MPIB.

Valuation/Recommendation
· Initiate coverage with a BUY and target price of RM2.38 , or 0.8x FY14F PB and 16.3x FY14F PE. Our target price assumes a 20% discount to our sum-of-the-parts (SOTP) valuation of RM2.98/share, and implies a price upside of 63%.

· Development of selected properties to commence in 2014. These include the redevelopment of Hotel Flamingo in Ampang and the maiden property launch by its JV with BRDB. Injecting the hotel into a planned integrated property development could significantly enhance our estimated market value of RM90m (book value: RM36.6m) for this property. It also appears ripe to realise good value at the current 265-acre property in Rawang, judging from Mah Sing’s well-received M Residence project (first launched in Apr 12) in the neighbouring area, with all phases seeing take-up rates of over 90%. As such, there could be significant value creation from a planned property launch in 2014, above our conservative land-only valuation of RM36m (based on RM14psf and MPHB’s 22% stake in the JV). However, MPHB has not yet revealed its development plans.
· Closer look into MPHB’s JV with BRDB. In Apr 11, MPHB signed three JVs with BRDB to develop its landbank in Rawang (Selangor), Gombak (Selangor) and Teluk Tempoyak (Penang), with a total GDV of RM4,204m. MPHB has a 22% share of the total GDV (Figure 17 and Figure 18).
· Potential compensation on Pengerang land disposal. To recap, MPHB’s 2,800 acre of landbank in Pengerang Johor was compulsorily acquired by the Johor state in 4Q12 as the land was earmarked to be part of Petronas’s Petrochemicals Integrated Development (RAPID). The acquisition price was only RM0.93psf, well below the valuation of many transactions in adjacent areas that were reportedly transacted above RM5.00psf. We understand MPHB has filed for a price discovery court hearing for the land. A favourable judgement could mean a big win for MPHB (eg a RM3.00psf market valuation translates into a compensation of RM252m, or RM0.35/share), which we have not factored into our target price. However, we note a potential compensation would only materialise in the medium term given the likely numerous hearing processes before conclusion.
· MPIB on the lookout for value-enhancing foreign strategic shareholders. Since the liberalisation of the insurance industry in 2009, a number of foreign insurance companies have acquired or merged with local companies, with acquisitions of general insurers valued at an average of 2.2x P/B (Figure 4). MPHB’s 100%-owned insurance arm, Multi-Purpose Insurance (MPIB) is keen to rope in foreign strategic investors, to help enhance its modest 3.5% (or RM13.6b) and 3.2% (or RM12.6b) share of the industry’s gross direct premiums in 2011 and 2010 respectively. We conservatively estimate MPIB could be worth RM504m (or RM0.70/share), based on 1.8x P/B, which implies a forward 2014 PE of 9.8x.
· The new FSA may speed up partial disposal of MPIB. To recap, Parliament has passed the new Financial Services Act, 2013 (FSA), which will consolidate the regulation of all financial services companie

· We value MPHB at RM2.38, based on a 20% discount to our RNAV of RM2.98/share. Our target price implies 0.8x 2014F P/B, deemed undemanding, given its ample opportunities to monetise its prized assets and potential new JVs which may transform MPHB into a purer property company.
· Demerging exercise to unlock value. Prior to a spin-off corporate exercise and a separate listing in 28 Jun 13, MPHB was part of conglomerate Multi-Purpose Holdings. To unlock the value of its non-gaming assets, Multi-Purpose Holdings demerged its gaming and non-gaming businesses. Post corporate exercise and a name-change, MPHB’s principal activities now include general insurance, property investment, hospitality and credit businesses while Magnum (MAG MK) operates the number forecasting business.
· In the midst of unlocking significant values… We foresee MPHB monetising or unlocking more than RM500m (48% of market cap) worth of assets in the next 12 months, and >RM1b in the next two years, via a) the outright sales of its assets, b) JV development with BRDB, and c) the redevelopment of existing properties.
· …starting with the disposal of its Balik Pulau land at pleasantly surprising values. On 21 Aug 13, MPHB sold its 208-acre Balik Pulau land for RM226m (or RM25psf). MPHB is expected to recognise a disposal gain of RM194m in 1Q14, based on the land’s book value of only RM32m. The buyer, Twin Universal Sdn Bhd, paid a forfeitable deposit of RM22.6m and the balance of RM203m would have to be paid by Feb 14. (Note: The buyer has an option to extend the balance payment deadline by 6 months provided they pay another 10% of the total purchase consideration in Feb 14 and 8% interest p.a. until the expiry of the extended completion date)
· More property sales likely. Currently, MPHB operates two hotels - Hotel Flamingo by the beach in Penang and Hotel Flamingo by the lake in Ampang. These two hotels contribute about RM10m EBIT annually. We understand MPHB may consider selling Hotel Flamingo by the beach, which carries a book value of RM45m. We reckon this 280-room, 4-star hotel could fetch RM150m, translating into a gain of RM105m.

MPHB Capital Berhad (MPHB MK) BUY
Price/Tgt: RM1.46/2.38 Mkt Cap: US$322.4m 3-mth Avg Val: US$1.5m 1-Yr Hi/Lo: RM1.57/1.30
Revealing its true value
Analysts: Vincent Khoo, CFA / Yeoh Bit Kun Tel: (603) 2147 1998 / 1971
We initiate coverage with a BUY and a target price of RM2.38, based on a 20% discount to our RNAV of RM2.98/share. Key re-rating events could emerge that would allow MPHB to monetise or unlock its under-appreciated assets estimated to be worth RM500m (48% of market cap) in the next 12 months and potentially >RM1b in the next two years.

Investment Highlights
· Enriched by cash monetisation exercises. MPHB Capital (MPHB) could see cash monetisation exercises, such as the recent sale of its Balik Pulau landbank at a surprisingly lucrative RM226m (or RM25psf). Within the next few months through to 2015, new event milestones could emerge to enrich MPHB, including an outright sale of properties, injecting prized landbank into a new JV, a maiden property launch at its existing JV with Bandar Raya Development (BRDB), and a favourable price discovery of its Pengerang land that was compulsorily acquired. It is also conceivable that it would eventually rope in foreign strategic shareholders for its insurance business to add value to its existing business, which we conservatively value at RM504m or RM0.70/share.
· Transforming into a property-centric company. We believe MPHB would be much more active in directly or indirectly participating in property development over time. The timing of its entry, which should involve landbanking activities, may be fairly ideal by then as land prices increase.
· In good stead to offer attractive dividend yields. Meanwhile, the company would be in a strong position to reward shareholders with attractive dividends, given its estimated cash hoard of RM0.36/share (excluding the Balik Pulau land sale proceeds).