Muhibah is under valued at current price. What puzzled me is why this FIL Ltd kept coming in to sell? One of its FM JP Morgan also sold on the 6th and 7th @80+,90+cent.

Has FIL Ltd finished selling? They still hold some 7.179 % or more than 34 million shares..

value_invest,

"In the meeting, indications are that Muhibbah's French partner Vinci SA are being invited to participate in the building of the new airports in Cambodia."

Can you please quote your source?

I read from news report that they have signed an MOU for further discussion. Nothing is disclosed and firmed.

The consolidated account of Muhibbah, consolidated with its 59.2%subsidiary, Favco, has a cash of rm606 million and total borrowings of rm515 million. If taking away the account of Favco which has a net cash of approx rm200 million, Muhibah construction will has a net debt of approx RM100 million. However, its associate, SCA (Cambodia Airport) is cash rich.

There are challenges on economic downturn. The construction business, mainly in marine engineering and upstream oil and gas, its outstanding order book will only last one year. It has 580 staffs mainly engineers.

The provisions for a total of rm120m are for cost overrun for the Dubai Project and the Bintulu port project which was cancelled by the PH govt.
How sure these could be written back?

Very clever, push just b4 Easter. FM have gone for holidays.

Monday afternoon they will be back and see what happened, maybe this afternoon?

This syndicate is powerful...
Maybe looking for water fish now..
It makes FIL Ltd stupid as they sold at 70+,80+,90+...which they bought 2+

Will FIL comes in and sell down?

The company now in net cash position.
Directors and major shareholders, holding shares, issued to them for debt settlements, at costs ranged from 36-50 cents per share.

The 60 acres land in Pulau Indah alone worth rm100 millions

The 80,000 HA forest land with timber concession rights, in Papua New Guinea, bought at rm260 million in 2011. Turnkey Contractor already appointed to harvest the timber and develop the land into Oil Palm Plantation. The company reserves the right to sell the asset if a buyer could be found anytime.

PIPP, the power plant In Pulau Indah has a Present Value of approx Rm300 million. 35% selling to WHB for RM58. 4million, at 20% and 30% discount due to illliquidity and lack of marketibility (LOL). If Tadmax sells its 100% in PIPP, it would be much more than rm167 million, as the illiquidity and lack of marketibility discounts of 20% and 30 % discount applied in the 35% stake sales to WHB would not be valid ANYMORE, IF it is selling the controlling stake. It should fetch much more than rm200+++ million.

The Market Cap now @19.5 cent is ONLY rm153 million.

Real cheap sales.

Steady31,

How do you get the profit of rm350 million?

steady31 With Posco as EPCC contractor no need for Kepco.There is only 25% holding left and it has to be Tadmax as it is their project.They have to give 75 % to Worldwide in order for the financing package to be successful as the lenders probably insist on them giving a corporate guarantee.So no 75% WW no guarantee no financing and no project takeoff.Even with 25% share Tadmax should be happy with it as profit could be as high as 350M or eps of 0.44.Tadmax share could reach 4.40 on completion of the power plant
07/04/2020 10:17 AM

Steady31

You make a lot of sense..

Kepco is a foreign company, ownership may have to get approval which may not be forthcoming, so it is better to rope in WHB, which is a company of the Selangor State Government.

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Stock: [TADMAX]: TADMAX RESOURCES BHD

Apr 7, 2020 10:37 AM | Report Abuse

alot uncertainties in tadmax as we still dk if they wanna exit the project anot


Stock: [TADMAX]: TADMAX RESOURCES BHD

Apr 3, 2020 3:45 PM | Report Abuse

it seems like uptrending has bought alot of tadmax shares ahaha

Jaks has a 30% stake in the Hai Duong 1200 MW coal fired power plant in Vietnam costing USD1. 87 B, which is about RM7. 8 B. Compare this with Tadmax's PIPP Combine Cycle Power Plant in Pulau Indah which also has the same capacity 1200 MW costing RM3. 3B.

Wouldn't Tadmax stand out?

Actually I think the calculations by the company, the Present Value of PIPP @approximately Rm300 million is understated. Bear in mind that Tadmax has a piece of land in Pulau Indah, about 60 acres, is injected to PIPP as the site of the Power Plant. The land has a market value of RM100 million.

A RM3. 3B Power Plant with 21 years concession and 3 years to construct and more than 3 years to plan, only add value of rm200 million? A return of 6%?

So, I think it is understated..

Take the extreme lower end, since the company is net cash, assume the forest land and concession and the property business are bonus and have zero value, just the value of the power plant, PIPP @ rm225 million, gives a share value of at least, 225/783, 28.7 cent per share

Papua New Guinea Forest land and concession in the book rm266 million, discount 50%, valued at rm133 million..

PV of PIPP Rm300 million.
Assume selling 75% to WHB @rm 150 million
Balance 25% worth rm 75 millions

Hence PIPP to Tadmax worth rm 225 million.

Property development business last year made rm 25 millions, attached a PE of 5 Times, worth rm125 million.

Total value, 133+225+125=483 millions

Value per share 483/783, 61 cents..

Again attach another 30% discount, for better MS, still worth 42 cents per share..

Now at 18 cent, very big margin of safety..

Just go back and check what are the costs of the major shareholders who accepted the Private Placement, settlement of the company debts with shares over the years. Check Bursa announcement on "Additional Listing.."

Can safely say that their average cost is about 30 to 40 cents a share.

Hahaha!
I am a small fly

The company has another huge asset in Papua New Guinea, 80,0000 HA of forest land for timber logging and later to be planted with oil palm.. The asset was bought in 2011 with cash of rm200+ million.

Market Cap still below the value of PIPP, rm167 M, after a discount of 20% and 30% due to illliquidity and marketability.. to arrive at RM58. 4M for the sales of 35% to WHB.

The company is now net cash

Evaluating the associate which probably carries a lot of net cash, IBs valuation with SOP, gives a discount of 50%. Cash holding also discounted 50%?

An established fund manager rated this stock BUY below rm2.50, rating as latest as last week, maintained the rating since early 2019

Not like all those IBs, TP moves according to market share price..

Sudah mari...
Mari mari..

The Cambodia Airport Concession at least, can last till 2023, another 3 years, estimated can bring in profit contribution to Muhibbah for Rm300 million, rm100 million a year average from 2021..

Then there is compensation..

Wow.. Don't want to count already...

Not yet taking in its 59% subsidiary in Favco..

The share price is just crazy..

I calculated the amount of profit, just Muhibbah's portion of 21%, retained in SCA (Cambodia Airport), which is the profit attuibuted by the associate less dividend received, from 2011 to 2019. The amount is a whopping rm431million.

This amount is more than the present company Market Cap of rm 376million.. Haha

Brown Bro Harriman is a private investment fund manager for high net worth individuals. The sellings may not for the whole block, about 31 million left as of 27th March 2020.. Certain individuals were selling from the fund, probably. The selling from FIL may have abated and the price did rebound from the low of 72 to 80.5 yesterday and this morning and retraced to close at 75.5 due to fall of Dow Future

Retailer investors panicked when Tabung Haji and FIL announced they were selling, exacerbated the selling pressure. Now that I know FIL comprises many individual investors and not all would sell, I believe.

https://www.bbh.com/en-us/private-banking/private-wealth-management

There are also reasons why FIL bought at rm2+ just few months ago..

Fund mangers buy when they have inflows of funds and sell when they have outflows when their clients redeem or they restructure portfolio. Times like this is very much due to redemption esp now there are lots of ETF rather than restructuring.

The value is there for Muhibbah. The past few years' profits in SCA still sit there. Muhibah's portion of the profit is about rm150m per annum and it received rm 50m dividend. SCA is definitely cash rich.

When things get back to normal, SCA will be profitable again, at least will contribute till 2023 for another 3 years.

The Muhibbah's worth in its 21% associates SCA is around rm1. 50

Once the block was taken out via OMD, the share price will rise vertically.

Thus will miss the rocket, not boat.. :)

The major seller has balance of about 30 million shares,@80 cent, the block is only about rm24 millions.

It could happen that another fund enter into an off market deal with it and lift off the selling pressure then.

Then, there would be a panic buy for this stock, otherwise the selling could persist till the end of the month which is considered short, and it offer an opportunity for us to accumulate cheap.

Just the value of PIPP, Pulau Indah Power Plant, based on the valuation done for selling a 35% stake to WHB @rm 58.4 millions, is rm167 million after discounted for 20% and 30% for illiquidity and lack of marketability. It implied the PV of PIPP with a DCF of 8% is approx Rm300 millions.

The market Cap of Tadmax @17.5 cent is only rm137M.

The sales of another 40% to WHB should be at a premium as WHB is buying a major controlling stake of 75%.

The sales proceed for 75 % stake of PIPP to WHB would be at least rm125 million, if there is no premium attached which is unlikely. This sum could be injected for Tadmax's 25% equity interest for the rm3. 3B Power Plant. With an equity to debt ratio of 20% to 80%, Tadmax's equity cash injection would be rm165 millions.

Tadmax likely would not need to raise RI and will hold a 25% stake in PIPP after selling 75% stake to WHB. The sales proceed to WHB could fetch Rm150 million if there is a 20 premium attached.

Isn't that beautiful?

Sorry the carrying value of the associates, mainly SCA is rm688 millions.

Lots of Cash in the associate company, SCA, Cambodia Airport, the book carrying value for the 21% stake is RM 663 millions.

Still lots of money on the table from the Airport Concession, minimum till 2023 for Phnom Penh Airport and Siam Reap Airport, not yet taken in any compensation if the concession is terminated prematurely before 2040, whereas the Sihanoukville Airport concession is till 2040..

Car sales should be down all over the world.. Isn't it? What's your view during this uncertained time due to covid-19?

Any sifu's view is appreciated..

Don't think that all the sifus here not holding any stock.

Blood everywhere, not only Jaks..

Sales of 35% of the 100% owned subsidiary PIPP to Worldwide Holding for RM58. 45 million makes a net profit of RM25. 7 million.

The Korea Power Company, KEPCO, which is going to hold 25% in PIPP will buy for RM41. 75 million, prorated. The net profit would be RM 18.36 million.

Total net profit would be RM44 million. If completed by FY20, the EPS from this alone would be 5.6 cents...

With the completion of the Metropolitan Square Project by the end of the year.. EPS for FY20 could be 9 cents..

TTB Technical Analysis TRADING SMART, rated Trading sell on Mar 11, target price 1.50-2.00

lol

Karlos,

TP?

At least a 10 bagger?

Karlos A lot time and energy spend on Jaks and its 30% owned IPP in Vietnam. We should take a look now at Tadmax 100% owned 1,200 MW IPP in our own backyard in Pulau Indah. Surprised not much interest on the Company so far. The two announcements today will guide us on the current progress and status of the IPP Project. Don't miss this good opportunity to take an interest in the Project.
13/03/2020 9:49 PM

THIS IS EVEN MORE DELICIOUS!

A 10 bagger in 4 years by 1st Jan 2024, expected completion and COD of the 1200 MW Combine Cycle Gas Fire Power Plant at Pulau Indah.

Hahaha! Are you a member of the gang?

Strong syndicate forced the price down all the way and collect in the morning, then push it back to surpassed 90 in the afternoon... Then distributed some...

This is a trading stock but you can't beat the syndicate who is in the dark... unless you play the game correctly...The more postings here the more retailers are exposed naked in the open for them to come in for the killings... My 2 cents observations... Hope I am wrong...

The “SELLERS” seems to have unlimited supply of scripts..

This syndicate or operator is terrible..

" Take your life while you are sick"

“趁你病，拿你命”

{(6000+) +(29000+)} /2= 18000 for 50% retracement?

The whole world equity market, including crude oil, collapsed together. Covid-19 still spreading fast.

US and European Markets already entered Bear Market.

What to expect?

Perhaps worse yet to come for the World equity market in general.

Haiz....

Look like buying and selling a commodity instead of shares.

Retailers open cards for the syndicate thro i3 forums.. Whereas the big syndicate hiding in the dark holding their cards close to their chest..

Retailers how to win against them?

Operators against retailers.
Operators hiding in the dark
Retailers are naked in the open.

It is at the mercy of the operators.

Roughly when is the COD for unit 1?

Very strong buyers emerged the last 2 days.. Buyers queued accumulatively 500+ K shares @ 1 buying bit..

March 2018.... so much uncertainties... and
Now March 2020 with COD just round the corner
Still dream of 40 cents... Lol

https://www.khmertimeskh.com/50682943/sihanoukville-runway-to-be-completed-by-midyear

Yoyo with no direction

Stockist stock?