Don't be overly excited. The following events are capping the upside of MFCB.
1. At present, MFCB have 2 Nos' power plants, i.e. Tawau Power Plant (Sabah) and Qixian Power Plant (China). These plants are providing steady recurring income, contributing 74% of its revenue & 70% of its net income for years. Please take note that both power plant agreements are set to expire at December, 2017, i.e. 3 years from now. As of todate, there has been no renewal of power agreement made. Renewal is not easy, take a look at YTLPower power agreement that lapsed without a renewal.
4. The Lao government has on 26-06-2014 agreed to a lengthy public consultation process with its neighbors before building a controversial hydropower dam on the Mekong River. This means if the project is ever to take place, it will be next year (which is highly unlikely) and completed in 2021 the earliest. http://www.opendevelopmentcambodia.net/news/laos-will-consult-with-neighbors-over-dam/
5. Comes 2018, the EPS for MFCB would be substantially reduced from RM0.33 (2014) to RM0.10 (2018). No wonder the directors are selling and the company is buying back its shares.
6. Invest with facts. Don't buy blindly. I would only seriously consider a buy if both the Tawau and China power agreements were renewed.
matakuda, please get your fact correct. YTL Power is not dependent on Malaysian IPP as their main business. Above 90% of their income is derived oversea, so no IPP extension will only cause 5% drop in turnover that's why Francis Yeoh is not selling any of his shares unlike MFCB directors which have sold their stock past few months but buy back shares at the same time. Renewal or no renewal for YTL Power IPP is only sure after Sep 2015 but I think chances are high because their IPP is in Iskandar region where economic activity are high.
just buy whatever stocks matakuda in.. pity him.. who knows up also? hihi kesian dan simpati dengan abang matakuda hihhi kasi lah dia happy sikit.. sedekah stocks .. :-)
You missed out the Most Important Treasure of MFCB,
MFCB took RCI private because it was very lucrative. So MFCB has 100 Acres of Limestone Hills in Perak. MFCB is the Sole Producer of Calcium Silica Bricks in Malaysia.
Just like Cement Companies being so profitable - they turned into Blue Chip.
MFCB 2 power plants (Tawau & Qixian) expire in 3 years from this Dec. 3 years is a long time, nothing to worry about now. In the meantime, the fundamentals for MFCB are still there, still solid.
thanks for the information, the expiry date will always be the discussion point..., MFCB was established in 1966, with close to 50 years of kung-fu they know what is the best........, just where they want to focus only......., just want to berbual only nothing specific...,
For those buying MFCB, a good news for you all. I noticed that there is an argument about whether MFCB manages to get licence renewal for power plant in China & Sabah. While I do not have answer on China, but I have quite firm answer on Sabah's power plant licence renewal. Since 2000 (KLSE can only trace annual report till 2000) till 2013's annual report, Perbadanan Pembangunan Ekonomi Sabah (SEDCO) has been MFCB's major shareholder with over 6% holding. So, with the influence of SEDCO, power plant's licence renewal should not be major concern.
Following a meeting with a visiting U.S. diplomat on Wednesday, Ministry of Foreign Affairs Secretary of State Ouch Borith said the U.S. shares Cambodia’s concerns about a controversial hydropower dam Laos is planning to build on the Mekong River.
Cambodia and Vietnam both fear that the 256-MW Don Sahong dam in southern Laos will severely reduce vital fish stocks in the Lower Mekong and its tributaries.
Mr. Borith said that Scot Marciel, principal deputy assistant secretary at the U.S. State Department’s bureau of East Asian and Pacific Affairs, shared the two countries’ worry.
“We have concerns that this huge dam that Laos wants to build will affect the Mekong,” Mr. Borith told reporters after the meeting. “Mr. Scot said that [U.S. Secretary of State] John Kerry has also discussed this and has pushed Laos to host a summit in Laos by the end of the year.”
In June, Laos agreed to postpone construction of the dam until it consults with its neighbors.
Mr. Borith said Mr. Marciel also asked him about the status of a draft memorandum of understanding between Cambodia and Australia that would see refugees detained while trying to reach Australia resettled in Cambodia.
The deal has come under widespread rebuke from opposition lawmakers and rights groups in both Cambodia and Australia because it would send the refugees to one of the poorest and most corrupt countries in the world.
Mr. Borith said he told the U.S. diplomat that proposals were still being reviewed, but declined to say anything else about the pending deal, which both Cambodia and Australia have shrouded in secrecy.
“No discussion at all, he just want[ed] to know what the situation is,” he said.
Mr. Marciel, he added, also welcomed the recent political settlement that saw the opposition CNRP end its yearlong boycott of the National Assembly over 2013’s national elections, which the opposition accuses the CPP of rigging.
Mr. Marciel did not stop to speak with reporters after the meeting, and the U.S. Embassy did not immediately reply to a request for comment.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
yfchong
5,825 posts
Posted by yfchong > 2014-08-08 13:19 | Report Abuse
yes, @ 2.19. but still ikan bilis.