according to latest sinchew news as link posted above once the hydropower plant in DOn Saho completed , will produce 2000 gigawatt per year which is equal to 2000000000 kilowatt , which will ensure rm500 million revenue yearly , as stated by director
i had google the local laos tariff , which is around 350 kip per kilowatt per hour which 2000000000kw x 350 kip = rm 300-400million ( i use to lowest average electrical tariff in laos , u all can just google this info )
from the 2016 annual report , the PBT for power section is around 22% ( minus off the construction profit from don saho project ) lets assume the revenue from don saho will be rm500million , x 22% = around rm100million PBT
so after all , is this Don Saho project still alluring as stated by public invest house ? with current power section from china and tawau plant , MFCB already achieve close to rm100million PBT in his power section (to be exact , around Rm80million for finanical year 2016 )
so after all , MFCB is merely replacing their china and tawau sector with this don saho hydro power plant
the most profitable sector is still their resources sector
we can see in latest announcement company also intend to diversify into ???? coconut planting business ( er = =!!! )
so will this don saho project contribute double or trifold in company profit ? ..... after all i dont think so
above is just my humble opinion and calculation correct me if i am wrong :)
Xiao Xiao, you are correct that the don saho hydro project does not actually contribute to a double or trifold profit. I don't think this was meant to be in the first place. The project is merely a contributing factor to a more stable earnings over the next few years and possibly provide them the capability to take on bigger jobs going forward. If you look at the profit projections of public bank, it does not project for an exponential growth in profit for FY18 onwards. Construction is only at 25% for now and with watever remaining on its existing contracts, hopefully we see a similar or even better profit this next 6 months.
lack of news from management make shareholder lost confidence. the results speak for itself... if no weak holders then no volatility in sharemarket. :)
Bigbull99 I liquidate already, something is not right with the company. Better exit before they announce the bad news and it will sink to RM3. 24/08/2017 19:27
May i ask what is not right with the company? What kind of bad news are u referring to?
Anyway, best wishes in your investment journey. And don't come back here since u no longer hold MFCB shares.
Hoteye, I think the recent falls in share price is due to the below 4 issues: 1. The Power Purchase Agreement with Sabah Electricity S/B is going to expired on 2nd Dec 2017. 2. China Power Plant will remaining weak in demand & cost increase due to the tightening environment policy. 3. Increase of debt. 4. Slow down of Don Sahong Hydropower construction due to the local raining season on May- Oct 2017.
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....
michaelwong
3,072 posts
Posted by michaelwong > 2017-06-06 22:11 | Report Abuse
The TP set is 4.50 and takes some risks to get in either win or loose .