Posted by Lim > 2015-11-14 10:58 | Report Abuse

@antidebt, I'm not really newbie here, but no so much experienced as well. but I took the perspective as a shareholder and as a businessman.

Yes debt is bad (only if not managed well)...however if you have 10K debt and you can make a profit margin 10%/year out of it... means you already profit 1K, and assume the interest is 7% pa. you still have profit rm300.

You can refer to Hevea, how the debt create the growth and bring great return >200% to shareholders in short period of time.
But if the debt not well managed and not bring return, it will bring calamity in just short period time as well.

It just like you use margin financing or playing contra.

Posted by Lim > 2015-11-14 11:10 | Report Abuse

I believe in the management, It has managed to surpassed the orderbook target for this year..

Posted by Anti_debt > 2015-11-14 11:16 | Report Abuse

When debts are high so is interest expenses which totaled RM 100.862 million last QR.

Condensed Consolidated Statement of Cash Flows
6 months ended
In RM’000 30.6.2015 30.6.2014
(unaudited)
Operating activities
Cash receipts from customers 1,041,357 645,928
Cash paid to suppliers and employees (777,753) (522,196)
Cash generated from operations 263,604 123,732
Finance cost paid (1,376) (7,061)
Taxes paid (32,124) (6,811)
Net cash generated from operating activities from continuing operations 230,104 109,860
Net cash used in operating activities from discontinuing operation (54,276) (367)
Net cash generated from operating activities 175,828 109,493
Investing activities
Acquisition of equity investments (17,135) (122,573)
Proceeds from divestment of equity investments - 273,000
Dividend received 48 85
Non equity investments 347,362 (5,201)
Acquisition of subsidiaries - 27,642
Disposal of a subsidiary (6) -
Net cash generated from investing activities from continuing operations 330,269 172,953
Net cash generated from investing activities from discontinuing operations 248 168
Net cash generated from investing activities 330,517 173,121
Financing activities
Proceeds from borrowings 74,917 401,643
Repayment of borrowings (624,849) (277,568)
Proceed from Government grant 33,024 -
Interest paid (100,862) (85,885)

Posted by Bing Feng Tan > 2015-11-14 11:16 | Report Abuse

it is the matters of perspective whether debt is good or bad, why bother keep forcing people to accept your idea?saying like you got zero debt..

Posted by jolie2 > 2015-11-14 11:17 | Report Abuse

explaining too much to this anti-debt also no point. Waste of time. He's like to cling to mrcb like a parasite or leach with his debt stories . Just ignore him.
MRCB already have plan to solve their debt and this leach still won't give up .

Posted by Lim > 2015-11-14 11:42 | Report Abuse

Let time prove it...

Posted by Anti_debt > 2015-11-14 11:55 | Report Abuse

High debts can lead to bankruptcy. Why take trouble when there so many better companies around?

Posted by Anti_debt > 2015-11-14 11:57 | Report Abuse

Bing Feng Tan in my real life I have zero debt hence my ID in i3.

Posted by Lim > 2015-11-14 11:57 | Report Abuse

@Anti_debt:

Bing Feng Tan:
it is the matters of perspective whether debt is good or bad, why bother keep forcing people to accept your idea?saying like you got zero debt..

14/11/2015 11:16

Posted by Anti_debt > 2015-11-14 12:07 | Report Abuse

If debts are so good why so many Ah Long cases end up needing help from MCA Michael Chong? Think about it.

Posted by superegg > 2015-11-14 13:06 | Report Abuse

Anti_dept, 99% companies in this world has debt, if you have good project without the fund to execute, how to make money ? Once the companies get the loan and they pay the loan according to the schedule without fail then they will be ok.

Posted by Lim > 2015-11-14 13:31 | Report Abuse

@Anti_debt, lets time proved it.
No point arguing here about debt as general or in pessimistic view. Everyone has their own view and again it all depends on the MRCB management. If you don't own this shares, you don't need to put much effort and energy to argue in here about your view. And if you have good intention, Please recommend better shares which you think can far outperform MRCB, and lets focus on the figure and business.
All of us are intend to make money here.

Posted by 77huat77 > 2015-11-14 15:47 | Report Abuse

Regret of putting all my money in mrcb !!!hahahah

Posted by tlbeng > 2015-11-14 17:04 | Report Abuse

Anti_debt, do you even bother to read in detail or just look into the figure?
Do you know that 55% of the borrowing is related to EDL?
If they dispose the EDL, that 55% of the borrowing is gone
learn how to read before start barking ok?

Posted by ken75SHG > 2015-11-14 17:22 | Report Abuse

Friendly speaking, anti debt if u not confident MRCB than u can invest to others listed company without debt n also others fellow investors tat no point we keep arguing w him jt let it be......

Posted by telim2 > 2015-11-14 18:19 | Report Abuse

My view on MRCB is it is not like other listed companies. The projects in its order book is not like any other projects. Governments wont let these projects (some involved EPF) fail... EPF money = people s money. I wont invest long term in companies with high debts and I will cabut once hit my expected profit. And I have confidence MRCB will give me the profit. Also, I believe you need to borrow money to invest in investments that will give you high return. Just like you need to borrow to buy house. If you want to save until you got enough to buy house, you better make sure you are super high income earner. And in case you are those people who can afford to buy house without borrowing, congrats coz not many people can achiev tat. I agree with you (anti-debt) that we cant ignore the high gearing of MRCB but I disagree on 0-debt is the best for a company or person.

Everyone has their own investment strategy and opinion.... i believe we all noted that MRCB has high gearing and also they are doing something to reduce it. Anyone got any news or analysis other than these?

Posted by tyran > 2015-11-14 18:40 | Report Abuse

to be fair, the info shared by anti-debt from kcchongnz is true. In general, if you compare company A (high debt, low free cash flow) and company B (low debt, high free cash flow) - of course company A would be the worse option.

however the nature of mrcb's contract wins means that they will definitely need to find more financing somehow in order to deliver their projects. debt is not bad in itself, this is their cost of doing business

so long as they manage things well (all indications are that the ex-gapurna management team knows what they are doing), these new debt-fuelled projects will bring mrcb's earnings to greater heights over the next 10 years or so.

high debt and low free cash flow is only bad if mgmt screws things up. it is your call if you want to bet on or against them

Posted by Lim > 2015-11-14 19:10 | Report Abuse

@telim2,

Part of the funding requirements will be fulfilled via the injection of its current buildings into MRCB-Quill REIT. We gather that Shell Tower and Ascott Residence could be the next to be injected, potentially raising RM900m. Another option that MRCB is exploring is to set up a property development fund. Under this structure, external investors will be invited to take a stake in the fund which will then undertake the developments. Apart from having a stake in the fund, MRCB will also receive a fee for managing the fund’s property developments.

Hong leong Research

Posted by jolie2 > 2015-11-14 19:11 | Report Abuse

Epf and gapurna may privatize mrcb with such huge project coming in. Then epf may inject fund to support all the projects .

Posted by jolie2 > 2015-11-14 19:13 | Report Abuse

Just be patient . Maybe restructuring is on the card.

Posted by telim2 > 2015-11-15 02:24 | Report Abuse

Thanks for sharing the news. I read about that too. Should I do intra-day trading because the fluctuations in share price these few days, its is really tempting... or ahould I just sit on my existing holding and wait....

Posted by Albert Baker > 2015-11-15 09:00 | Report Abuse

the new TP is very encouraging to buy

Posted by mh87 > 2015-11-15 11:43 | Report Abuse

if MRCB got privatized by 'big instituitions/funders'.. sure the price will up double or triple than current.. at the same time, you can imagine how higher the price of its WA would be... Woww.. Just hold for 1 year from now and you will see..

Posted by confuse > 2015-11-15 11:46 | Report Abuse

Why people say ValueCap when EPF not in it?

Bullrun18 Value cap will buy it up til Rm 2.00 next month ):-
14/11/2015 20:02

Posted by confuse > 2015-11-15 11:48 | Report Abuse

EPF got privatised any company? Must be scary to my retirement fund if they do so.

Posted by confuse > 2015-11-15 11:49 | Report Abuse

Yesterday Star mention Johor Corp incur so much debts by privatizing companies. Very scary if EPF do so for those trapped in MRCB.

Posted by mh87 > 2015-11-15 12:20 | Report Abuse

if their expected future profits higher than their debts, nothing to worry la.. sure they will manage their debts wisely together with great profitable projects..

Posted by jolie2 > 2015-11-15 12:31 | Report Abuse

Epf gain little from this bear market. Also have stopped investing overseas due to fed don,t allow. Also, not allowed to implement the 60 years old withdrawal policy.
The only thing they can do is to continue involve in property and construction locally so that to continue pay the 6 % dividend.

Taking mrcb private is the right choice or merge with wct.
Epf don't have much investment choice anymore. The only way is to bet Big in the construction sector.

Posted by jolie2 > 2015-11-15 12:36 | Report Abuse

look at kian joo... epf want to take over this company soon with joint venture with the shareholder.

epf can joint venture with gapurna to take over mrcb,
nothing is impossible.

This giant fund have cash. They only need strong management team (like gapurna) to manage their private company,

This is the only direction EPF is heading to give good dividend to epf contributor.

Posted by valueinvestor > 2015-11-15 13:10 | Report Abuse

http://klse.i3investor.com/blogs/sin_chew_hot_stocks/86133.jsp
http://klse.i3investor.com/blogs/amresearch/85853.jsp

Posted by ken75SHG > 2015-11-15 16:57 | Report Abuse

This mean tomorrow MRCB wl boost TP 1.5 again......

Posted by linghk888 > 2015-11-15 17:44 | Report Abuse

hopefully... i hope the paris attack and tumble in DJ on Friday will not affect our market...

Posted by jolie2 > 2015-11-15 18:00 | Report Abuse

Value cap will attack and save bursa tomorrow

Posted by mh87 > 2015-11-15 19:17 | Report Abuse

if tomorrow has panic selling due to France issue, just accumulate as lower price as you can.. thats not a big issue to the world economy.. even during bomb in Bangkok our market still bullish.. so why need to worry..

Posted by bleuerouge > 2015-11-15 21:40 | Report Abuse

I saw a mini flag, tomorrow open 1.45 and will shoot up.

Posted by ken75SHG > 2015-11-16 02:14 | Report Abuse

Go to go.... Break 1.5

Posted by tlbeng > 2015-11-16 08:14 | Report Abuse

lol market sentiment not so good
I don't expect it to break 1.5
it can support well above 1.4 is good enough

Posted by ken75SHG > 2015-11-16 09:57 | Report Abuse

Loaded 1.42 now 1.44 gogogo.....

Posted by ngsenghuat > 2015-11-16 14:07 | Report Abuse

I think EPF hv some idea on tis counter......

Posted by bleuerouge > 2015-11-16 15:30 | Report Abuse

q 1.42, sikit lagi

Posted by إلهامي عبدالمالك > 2015-11-16 20:05 | Report Abuse

http://disclosure.bursamalaysia.com/FileAccess/viewHtml?e=2626675

Posted by jolie2 > 2015-11-16 20:17 | Report Abuse

private placement to gapurna to raise fund for project and debt reduction.
They may placed out to value-cap.

Posted by Lim > 2015-11-16 21:02 | Report Abuse

will bring down the share price for short term...

Posted by jolie2 > 2015-11-16 21:12 | Report Abuse

this is a good news as the worry of right issue has been removed.
Minorities don't have to take out money.
Slowly the extra earning will able to absorb the extra share issue.
Is a good things to do for growth purpose.
More corporate news soon for them to strengthen the balance sheet.
Be patient.

Posted by tlbeng > 2015-11-16 21:13 | Report Abuse

Lim, it won't bring down because:
1) it's private placement, not right issue, the discount for private placement is lesser compared to right issue, meaning they'll pay around RM1.15~rm1.4
2) this isn't something to be done in short term, it's target to complete at 2016Q2, which is next year June, it will not affect FY2015

you may find this info in the document attached in the announcement

Posted by Lim > 2015-11-16 21:19 | Report Abuse

@tlbeng, It will affect for the short term... the impact and how long it is, I think will be minimum.. It still will dilute the share.. but it will be minimum

Posted by mh87 > 2015-11-16 22:06 | Report Abuse

let see tomorrow trading activities.. if the price is suddenly spike up, so you guys can judge it by yourself..

Posted by tjhldg > 2015-11-16 22:14 | Report Abuse

har ? warrant exercise price will adjust due to pp ? haahhahahahahahaaaa

Posted by TengkuFaisal > 2015-11-16 22:19 | Report Abuse

zzz

Posted by linghk888 > 2015-11-17 06:27 | Report Abuse

private placement will not affect the share price and warrant exercise price. trading will good today,