the fair value of RM12.57 is a bit too optimistic already which may not happen in Malaysia market.
There are many valuations available, I have done up some simple calculation ( you're well come to criticise with a good fact to challenge my numbers)
PE - RM 7.5 DCF - RM 7.0 Dividend - RM 9.0 (provided mgmt committed to pay a good dividend)
Don't ask me whether or when MFCB will hit the TP abovementioned. I don't know and have no idea. If everything is on expectation and market is norm/good. I believe that the fair value.
The 5th Turbine story is too far away from now and that is a bonus to us.
Before the completion of 5th Turbine, I truly believe the management will start talking about their new business segment which I believe that this new segment will bring MFCB to another level
Turbo , I agreed with you that the tgt price of RM 12.57 is too optimistic . Based on report from Public invest , the Don Sahong 260 MW power plant is estimated to generate RM 240 to 260 million per year which translate into about 50 sen per share .Besides the power division , MFCB do have Resource and Property Division which had been generating more than RM 100 million revenue per year and about 20 to 30 million profit annually . Assuming 25 million profit from these divisions , this is an additional 5 sen eps . Lastly , the 5th turbine will also generate profit during the 4 years construction . By taking 1/4 of the 260 mw annual profit which is about 175 million per year , mfcb will have another 43 million annual profit from this 5th turbine project . This is euivalent to another 8.6 sen eps. Hence the total eps from 2020 onwards will be 50 + 5 + 8.6 = 63.6 sen. Assuming a PE of 10, 12 and 15 respectively , the mfcb prices will be RM 6.36, RM 7.63 or RM 9.54 . When the 5th turbine is completed in 2023 , the eps from the commercial operation will be estimated to be 12.5 sen eps ( 50 s divide by 4 ) . Then the total eps will be 67.5 sen .
I think a PE of 12 is reasonable if mfcb pay a dividend of 30 s per share annually. At a price of rm 7.5 , the 30 s dividend.translate into dividend yield of 4 which is better than FD rate.
LKOH,yes . mfcb has a 50 years concessions from.cambodian government to develop 6420 ha. of coconut plantation starting from April 2013. It will be a new stream of revenue.and profit starting from the next few years
the news is actually on 12/12/19, I think by now they should have upgraded their test capacities...few more days until the year of 2020 and it should be ready for full commercial usage
Personally I think the testing output of 85 MW is mainly due to the current transmission cable limitation, as stated on the last quarterly report, they only can transmit max 85 MW until the new transmission cable is ready, which is expected to be ready by end of December 2019.
shareinvestor88 must be coming from stone age bcoz u don't need electricity to survive...by the way how did u post ur comments here ah?? No electricity how can use ur laptop or phone
Shareinvestor88, people can buy hp, pay data charges but can't afford to pay electricity? With the electricity supply, so many Business or commercial activities can be done day & night, this will bring enough economy gain for them . Only shareinvestor88 afraid to pay electric bill, think you better migrate to inner kampung without electric supply so u can save a lot for no turn on light, Fan, Air con, refrigerator, TV and so on..
If power plant is a gold mine, stock of experience company like YTLPOWER & MALAKOF won't be dropping like no tomorrow. Wait for it to turn on the power, and all the shit will flow out
it's funny when someone tried to compare MFCB with other power plant companies...it's like u are driving BMW but u want to talk bad about Mercedes...but the reality is u don't even own any of them, so basically u are just talk kok syok sendiri
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 298 views | 1 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11498 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
gemfinder
6,880 posts
Posted by gemfinder > 2019-12-15 11:02 | Report Abuse
Once break 5, 530 on d way