MFCB's 9 month result shows a slight dip in revenue of 2.5%. However its ebit and pretax profit increase by 25%. This was due to higher margin especially in power generation. The bottom line hence very good. But more importantly, its share price has risen by 16% (including dividend) since 4 months ago when it was RM1.70. So is it too expensive now? Bear in mind that a good company is not a good investment if the price is not right.
My opinion is it is not expensive at all. In contrary, MFCB is dirt cheap in relation to its earnings, especially if you measure by its enterprise value. As earnings increases, EV/Ebit becomes even lower.
KC what is your view on the persistent selling by the directors recently ?
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kcchongnz
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Posted by kcchongnz > 2013-09-16 20:44 | Report Abuse
Yes. A substantial amount of the asset belong to MI as the financials of the subsidiaries are consolidated into MFCB statements.