"We are confident that leveraging the capacity of our plantation presents a significant opportunity to meet the burgeoning global demand for coconut sugar products. Upon reaching maximum harvest capacity, we anticipate establishing ourselves as the largest and foremost fully integrated company dedicated to coconut sugar products worldwide."
Good highlight, Nepo. Can't wait to ask them more about the venture into coconut sugar biz in the coming AGM / quarterly briefing. Wondering how much revenue they are expecting from this venture. According to this report the top 3 players are having between USD169m - 260m revenue. https://www.globalmarketmonitor.com/report_blog/1861531.html
Maybank's valuation did not ascribe any value to the new ventures. The company is reinvesting the cash to grow and at the same time giving out decent dividend. Why sell?
https://theedgemalaysia.com/node/712541 Mega First Corp Bhd (KL:MFCB), which is involved in renewable energy sales, limestone quarrying and packaging, said its first quarter net profit rose 35.32% to RM95.46 million from RM70.55 million a year earlier amid a significant improvement at its resource division.
The higher earnings were also attributed to a one-time boost from fire insurance compensation. The group said it recognised RM22.39 million in insurance income for the fire incident in its flexible plastic packaging factory.
Y-o-Y Group’s profit after tax and non-controlling interest (“PATNCI”) rose 35.3% from RM70.5 million to RM95.5 million. “Normalised” Group PATNCI (by excluding share of joint ventures and associates’ results, and non-operational one-off items) grew 22.4% from RM79.5 million to RM97.4 million.
Q-o-Q Excluding joint ventures and associates, and one-off items in both periods, the Group's normalised PATNCI remained flat quarter-on-quarter at RM98.2 million (compared to RM98.7 million in 4Q2023). This was achieved despite seasonally lower hydro energy sales, underscoring the earnings strength of the Group's core operations and the positive impact of increased effective equity interest in DSPC.
How was it a bad quarter? In fact if you follow the Company closely you will know that they will do well this year with the increased effective stake in DSPC and the upcoming 5th turbine running in second half. And next year it will be even more exciting with the Food Security Division plus additional capacity coming from packaging division.
@hopetobecorrect, yes you right, in fact there is another clause which says the tariff will be adjusted downward at 10th year if I not mistake. The management did highlight the new CA is more favourable to the Company, lets see how it goes.
Anyway, irregardless of the terms of the CA, to me the value proposition of MFCB is about the capable management team who know how to reinvest the strong cashflow and enhance the shareholder value. Bet the jockey :)
The poor financial position of the Laos government is not something new. The management has explained this many times. Actually, the off-taker for the power generated is Cambodia. As long as Cambodia is paying, MFCB will also get paid. Moreover, the payment is in USD.”
“We have nurtured the food security division over the last 10 years and we think it has turned a corner. We are likely to see a bigger contribution from the division, so we are going to carve it out and show it as one of our core businesses,” MFCB non-independent, non-executive director Yeow See Yuen tells The Edge in a recent interview. - https://theedgemalaysia.com/node/716525
should just sell edenor if really cannot turn the company around. kept bleeding money.... their cash pile growing, hopefully can secure another new bigger hydro project while growing the company.
Seasonal or cyclical factors The Group’s principal business operations were not significantly affected by seasonal or cyclical factors other than its Renewable Energy Division where hydropower generation is subject to seasonal fluctuation of the water level. Normally, the water level will peak between June and November during the wet season. More detailed commentary is set out in Notes B3 and B4 to these financial statements.
"It is worth noting that the recent appreciation of the Malaysian Ringgit (5-6% increase since the end of June 2024), if maintained for the remainder of the year, may result in lower reported earnings in Ringgit terms (on same USD term) for the second half of 2024.
Despite the stronger Ringgit, and considering the increase in effective ownership of Don Sahong Power Company (DSPC) from 80% to 95%, we expect that the PATNCI for Don Sahong will demonstrate robust double-digit year-on-year growth of more than 20% in the second half of 2024."
@Pinky, forex is inconsequential, MFCB is anticipating more than 20% y-o-y growth in 2H2024 due to higher effective interest and 5th turbine. Not to forget the rest of the divisions are growing steadily as well. MFCB never disappoints the long term shareholders :)
@ocbc. i already sold back my CCB shares during their 2nd offer, due to my inexperience my maybank remiser said my CCB shares ought to be sold. In fact, later i checked from other sources, if you intend to keep the shares forever even after privitisation, no one can force you to sell..
Btw, good to see you also interested in this counter
28/8/2024 i have participated in the MFCB Q2 online investor briefing. Outlook is look for Q3. If you intend to keep a copy of the briefing, you can go MFCB website, on the right hand corner, try to look for the investor briefing PDF notes and download to aid your investment decision
Hi Willtolive, i guess you are talking about CSC Agruculture Holding S/B..
PETALING JAYA: Mega First Corp Bhd’s (MFCB) venture into fruit and vegetable farming is not expected to contribute significantly to its earnings.
The group, which is involved in the power, resources, and property segments, said on Wednesday that it intends to acquire a 64% stake in plantation firm, CSC Agriculture Holdings Sdn Bhd (CSCAH), for RM25mil.
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