MEGA FIRST CORPORATION BHD

KLSE (MYR): MFCB (3069)

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Last Price

4.38

Today's Change

-0.04 (0.90%)

Day's Change

4.33 - 4.41

Trading Volume

319,200


17 people like this.

3,619 comment(s). Last comment by BLee 1 week ago

C 88

75 posts

Posted by C 88 > 2021-11-24 06:40 | Report Abuse

Page34
BUDGET 2022 – DISCUSSION ON IMPACT TO MFCB
MEGA FIRST CORPORATION BERHAD – NOV 2021 34
A. “Cukai Makmur”
This is a special one-off tax for Malaysian companies for YA2022. The first RM100 million of taxable earnings will be taxed at 24%
while the remainder will be taxed at 33%.
Preliminary impact assessment: None.

B. “Foreign Source Income (FSI)”
FSI received in Malaysia from 1 Jan 2022 until 30 June 2022 (transition period) will be taxed at 3% on a gross basis. FSI received
in Malaysia from 1 July 2022 onwards would be subject to tax based on the prevailing income tax rate (currently 24%).
Preliminary impact assessment
1. Dividends repatriated from overseas subsidiaries on and after 1 January 2022 will be subject to income tax.
2. Availability of DTA relief.
2. Management is still in the midst of engagement with tax consultants and lawyers on available options.

Short term mitigating measures:
1. Maximise dividend repatriation before the end of 2021.
2. Minimise future dividend repatriation from overseas subsidiaries on “need-to” basis

steady31

315 posts

Posted by steady31 > 2021-11-29 15:57 | Report Abuse

Expect a net profit of 4%-6% on the oleocchemicals ,oils and fats business of up to 3B revenue or a contribution of 120M-150M to its bottomline. This can be seen from KLK's of 10.8B revenue and a profit 0f 680M. Even smallish CI Holdings able to do 3B business with a profit 0f 120M

Posted by Souljaboiiii > 2021-11-30 13:09 | Report Abuse

The management guided the NPM for oleo division is ~10% (industrial standard) in the last briefing.

Posted by Lukesharewalker > 2021-12-10 13:38 | Report Abuse

Seems to be a lot of aelling amidst the share buyback

Posted by Souljaboiiii > 2021-12-12 12:05 | Report Abuse

I guess the main reason why investors are selling is because dividend wasn't declared in this quarter. Hence, there will be a discount on the valuation. Mr. Market values MFCB at PE of 10+, by estimating the EPS of the next quarter (excluding one-off gain), RM3.5 - RM3.6 should be the fair value "NOW".

Posted by wallstreetrookie > 2021-12-13 11:45 | Report Abuse

MFCB performance has been shaky

Posted by Lukesharewalker > 2021-12-13 12:21 | Report Abuse

But share buy back indicates better results to come

Posted by Lukesharewalker > 2021-12-15 12:53 | Report Abuse

Also year end window dressing

Posted by Souljaboiiii > 2021-12-15 20:05 | Report Abuse

Just buy and hold for at least 3 years.

Posted by Lukesharewalker > 2021-12-16 14:09 | Report Abuse

Sooner or later with aggressive share buy back

Posted by InsiderShark > 2021-12-17 22:15 | Report Abuse

I prefer them not doing share buyback and to pay down their debt.

UPlanet

1,450 posts

Posted by UPlanet > 2021-12-18 20:57 | Report Abuse

Haha!!! Fake rebound again? Next week back to 3.53 again???

UPlanet

1,450 posts

Posted by UPlanet > 2021-12-21 11:49 | Report Abuse

Ha already 3.53, Dare not go down below 3.40 la…!!!

Posted by InsiderShark > 2021-12-21 19:45 | Report Abuse

It is going to go sideway for sometime, I dont know why people are mad, only traders are mad, long term investor knows this is good as you have the opportunity to slowly buy more shares. I hope it goes sideway for 1 or 2 years and then fly. I need time to buy more.

LKOH

365 posts

Posted by LKOH > 2022-01-10 20:44 | Report Abuse

has construction of 5th turbine started?

Posted by capitalist > 2022-01-10 20:52 | Report Abuse

ready to place your stop buy order guys ;)

Posted by LongTermInvestor8 > 2022-01-19 23:09 | Report Abuse

.

2022
- Oleo exercise is expected to be completed in January 2022, 12 months to turnaround.

2023
- Construction of an RM100m mega packaging factory sitting on a 10.4-acre plot of land will be completed by 2023.

2024
- Construction of the 5th turbine, which will cost about RM200m-250m, will start in the next dry season (late-2021) and is expected to be commercially operational by Q3-2024.

2026
- The plantation group is still exploring various downstream processing businesses and it does not expect any positive earnings contribution until 2026.

Note
- MFCB 90+% of the earning is from oversea and is tax exempted by Laos Government (5 years from 01/10/2020)
- Normally, the water level will peak between June to November during the wet season.

Posted by capitalist > 2022-01-25 17:31 | Report Abuse

selling time!!!! yeaa

steady31

315 posts

Posted by steady31 > 2022-02-10 11:14 | Report Abuse

MFCB flat for over 1 year without any gain in price.Company needs to pay more interim dividend to staunch the flow of selling from disillusioned holders.It is bad capital management to keep too much cash when it could be used to placate long term holders and attract new institutional funds

newbie8080

2,727 posts

Posted by newbie8080 > 2022-02-10 11:22 | Report Abuse

Initially, most people bought in for the completion of the hydropower plant which will generated steady stream of income for dividend.

However, management seems to have other plans of making use the strong cashflow for renewal energy, Stenta and now Oleochemicals.

steady31

315 posts

Posted by steady31 > 2022-02-10 12:04 | Report Abuse

It will increase the attractiveness of holding MFCB if it makes 3 dividend payments a year of 3c x2,final 4c for a total of 10c or 100m which is less than 30% of the company's annual free cashlow

steady31

315 posts

Posted by steady31 > 2022-02-10 15:58 | Report Abuse

so far these additional investments is taking up to a maximum of 200M .There is still 200M for additional dividend which for a 10c payout is only 100M ,still leave 100M for working capital and loan reduction

Posted by Airline Bobby > 2022-02-10 18:44 | Report Abuse

No no no what give dividend for fcuks ? Rather they use the money and expand into renewables . Screw dividends, hunting for growth here

MiaoMiao7

449 posts

Posted by MiaoMiao7 > 2022-02-10 19:24 | Report Abuse

I dont want dividend, if I want dividends, I know which counter to invest. I want them to use the money to either pay down the debt or go expand into new business. growth earnings is what I want. grow the company.

MiaoMiao7

449 posts

Posted by MiaoMiao7 > 2022-02-10 19:26 | Report Abuse

@steady31

Stock price dont always go up, sometimes down and sometimes flat for a few years, you go look back at QL, PBB, UTDPLT and etc.... there are times when the price is flat for years and then it moves up.

tash1

271 posts

Posted by tash1 > 2022-02-12 14:03 | Report Abuse

LongTermInvestor8, u r wrong. mfcb's don sahong is run of river. wet or dry season won't affect earnings significantly.

Posted by LongTermInvestor8 > 2022-02-15 21:58 | Report Abuse

@tash1

I know it is run of river type of hydro. But during raining season there are more water than dry season, thus they have peak and none peak season. earnings wont be too far off peak because during wet season they will shut down 1 plant for servicing, but during dry season all plant will run.

Posted by wallstreetrookie > 2022-02-24 10:23 | Report Abuse

Mega First Corporation Berhad to report earnings

steven832

18 posts

Posted by steven832 > 2022-02-24 11:06 | Report Abuse

4Q results Friday after market close. Briefing on 28 Feb 2 pm. Those interested can register using link provided in MFCB website.

UPlanet

1,450 posts

Posted by UPlanet > 2022-02-25 17:27 | Report Abuse

Remarkable & historical QR!!!!!!!! Next week, the price should UP UP ALL THE WAY!!!!!!!!!

DannyArcher

1,258 posts

Posted by DannyArcher > 2022-02-25 17:30 | Report Abuse

wtf... i hope this is real, yet to read the qr... hopefully something good. i invested rm1m in mfcb. i will hold this stock long term, good management.

pjseow

2,264 posts

Posted by pjseow > 2022-02-25 17:31 | Report Abuse

MFCB delivered fantastic and record Q4.result with 22. 47 sen eps. Net profit UP 129 % yoy.

newbie8080

2,727 posts

Posted by newbie8080 > 2022-02-25 17:47 | Report Abuse

2021 vs 2020
Group pre-tax profit rose 38.6% from RM389.3 million to RM539.6 million, in part due to
RM122.0 million share of profit in joint venture. Excluding the share of profit in joint
venture, pre-tax profit grew 7.3% to RM417.6 million
The share of profit in joint venture was boosted by the Group’s share
of unallocated bargain gain arising from Edenor’s acquisition of EOM and ESC.

oppstar

18 posts

Posted by oppstar > 2022-02-28 09:44 | Report Abuse

Please bear in mind, only fund & syndicate can influence the share price.

Posted by LongTermInvestor8 > 2022-03-07 19:40 | Report Abuse

2021
- Construction of 5th turbine starts late Dec 2021 on dry season.
- Acquired Stenta

2022
- Oleo [ 300,000 tonne ] exercise is expected to be completed in January 2022, 12 months to turnaround. 1.5B potential yearly revenue, profit margin estimated to be about 5 to 10%, which comes to about RM9 to RM18 million per quarter.
- Solar Power C&L - 6.3MW Jun/July 2022, 19.0MW over the next 18 months

2023
- [ Hexachase ] Construction of a RM100m mega packaging factory sitting on a 10.4-acre plot of land in Melaka will be completed by 1H2023.
- [ Hexachase ] 2021/2022 new production capacity is expected to reach max capacity by 2023.
- [ Stenta ] Construction of a 6.7 acre land factory, when completed will add 8 LLDPE and 1 CCP line.

2024
- Construction of the 5th turbine, which will cost about RM200m-250m is expected to be commercially operational by Q3-2024.

2025
- Coconut and Macadamia planting to be completed by 2025

2026
- The plantation group is still exploring various downstream processing businesses and it does not expect any positive earnings contribution until 2026.

Note
- MFCB 90+% of the earning is from oversea and is tax exempted by Laos Government (5 years from 01/10/2020)
- Normally, the water level will peak between June to November during the wet season.

Posted by wallstreetrookie > 2022-03-09 08:01 | Report Abuse

Renewable energy up in foreign markets.

Posted by wallstreetrookie > 2022-03-10 14:03 | Report Abuse

Mega First Corporation Berhad: Laggards among Bursa Utilities Index

Posted by wallstreetrookie > 2022-03-10 18:27 | Report Abuse

Bought 45k worth of MFCB shares. Renewable energy to outperform crude oil in Q3 2022. Time to build your positions.

Posted by antoniomc27 > 2022-03-22 14:54 | Report Abuse

Open Question : What are the ramifications of a sustained $100+ oil price for MFCB for a couple years to come (very likely given the tremendous oil shock that is coming into play regardless of Ukranian war development)?

IMO the resources, oleochemical, and packaging sectors will be affected, and I am not sure they are able to pass down the cost increase in any of the three divisions, what will mean margin compression down the road

DannyArcher

1,258 posts

Posted by DannyArcher > 2022-03-25 19:57 | Report Abuse

@antoniomc27

Clearly you did not attend the zoom briefing. The management already explain it there, can you please go read up the notes before commenting. Thanks.

Posted by LongTermInvestor8 > 2022-03-30 18:34 | Report Abuse

Environment Ministry signs largest solar PV contract in Maldivian history

https://en.sun.mv/73775

Posted by kennygoh97 > 2022-03-30 21:28 | Report Abuse

Why no announcement in Bursa Malaysia? Any idea ?

kenken85

724 posts

Posted by kenken85 > 2022-03-31 07:33 | Report Abuse

this is what we called diam diam ubi berisi. as far as I know mfcb rarely announce about the solar project.u can follow it from interview and qr report.

Posted by kennygoh97 > 2022-03-31 08:47 | Report Abuse

I did not agree about this. I am not sure whether company should announce all contracts to Bursa ? if yes, they better do so, just to follow the rule and regulations !

Posted by LongTermInvestor8 > 2022-03-31 10:10 | Report Abuse

Am not sure what are the rules and regulation, if every single project needs to announce, then everyday we will be receiving endless info. I am very certain the management knows what they are doing and not breaking any law.

The only company that announced every single tiny project they won is Serba, SCIB and KPower. Every month sure got announcement, win this win that win so many projects, even tiny longkang project also announce.

kai8994

389 posts

Posted by kai8994 > 2022-03-31 11:50 | Report Abuse

There are rules on continuing disclosure (Chapter 9 of Listing Requirements). It's a JV, the financial impact isn't material enough to warrant immediate announcement.

Posted by wallstreetrookie > 2022-03-31 15:46 | Report Abuse

Average up

Posted by wallstreetrookie > 2022-04-18 06:49 | Report Abuse

Utilities stocks are recession-proof

Posted by wallstreetrookie > 2022-04-18 06:49 | Report Abuse

But the problem is, Malaysia is slowly emerging out of economic recession

Posted by wallstreetrookie > 2022-04-18 08:38 | Report Abuse

MFCB should hit RM5 billion valuation in no time

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