KLSE (MYR): MFCB (3069)

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Today's Change

-0.04 (0.83%)

Day's Change

4.79 - 4.88

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17 people like this.

3,623 comment(s). Last comment by Pinky 1 day ago

Posted by BursaVulture > 2022-07-08 19:20 | Report Abuse

HengyuanZai, I think Oleo is not even 1% of MFCB profit, how is it a big problem? I dont think you understand MFCB. Majority of their profit is from the hydro and in USD.

Posted by LongTermInvestor8 > 2022-07-08 19:43 | Report Abuse

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

- 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 based on 50% stake. MFCB expected to recoup the capital investment in 3 to 4 years.
- Solar Power C&L - 6.3MW Jun/July 2022, 19.0MW over the next 18 months
- 1% tariff adjustment for Hydro to take effect on 1 Oct [ Every year for 10 years ].
- MFCB accquired 28.33% of Integrated Smart Technology Sdn Bhd (IST) for RM5.56 million, an ATE company for the semiconductor sector, is expected to generate around RM10 million per year or around RM2.9 million for MFCB’s equity portion

- [ Hexachase ] Construction of a RM100m mega packaging factory sitting on a 10.4-acre plot of land in Melaka will be completed by end-2Q 2023, followed by machinery installation starting from 2H 2023.
- [ 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 by June 2023
- [ Packaging ] Before expansion combine revenue is RM450m, after expansion will be RM1.2B with an estimated 10% profit.
- Q1 2023, 11 megawatt of solar PV will be installed in six islands, including the cities in Maldives. JV with Powerchina Huadong Engineering Corporation. The work will be complete and power generated under the project in Q4 2023.

- Construction of the 5th turbine, which will cost about RM200m-250m is expected to be commercially operational by Q3-2024, an additional profit contribution of RM39m-40m.

- Coconut and Macadamia planting to be completed by 2025.
- October 2025, the 5 year tax free period for Don Sahong Hydro ends. Estimated to be tax at 15% after deduce other factors, not 25%.

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

- Don Sahong Hydro 25-year concession period for the facility will end on Sept. 30, 2045.

- Plantation in Cambodia has 50 years of lease, expires on 29 April 2063.

- Plantation has a 50 year concession of 6420 hectares with plantable area est. 4500 hectares.
- Peak yield can only be achieved after 7-10 years for Macademia Nuts and Coconuts.
- Unlike most public listed solar companies that focus on EPCC solar projects, MFCB is on the power sales side of solar projects.
- Wet season is from June to November
- Dry season is from November to April
- Largest quicklime producer in Malaysia with 1960 tonne per day klin capacity with 100 years of supply.
- Plantation requires 3 to 4m capital investment needed per year until 2026.
- Nestle is now MFCB packaging customer.
- MFCB has allocated RM3m to expand 100%-owned auto company, Bloxwich S/B, which offers supply panels, LED and other parts of foreign car companies. The capex will be used to expand CNC machines.

Earnings Notes:
- MFCB 90+% of the earning is from oversea and is tax exempted by Laos Government (5 years from 01/10/2020)
- The Proton solar projects have recurring income for 15 years by selling electricity. It is a 55-45 JV with Pekat.
- Stenta is in mid stream business, not many competitors, can pass on the cost increases, profit margin should be maintained.
- March 31, 2022 (1QFY2022), Edenor posted a profit after tax of RM7.85 million or RM3.93 million for MFCB’s equity portion, on revenue of RM331 million, current utilisation rate is 65%, PBT margins is at 2%. Edenor looks into improving the profit margin to 5 - 10% in 24 months.
- 100MW solar capacity is only expected to churn out around RM12 million in profit
- Edenor In 1QFY22, it registered sales of RM331m with a net profit of RM8m. At current capacity utilization of 65%, the Group aims to take 2 years to gradually increase its net margin from 2% to 5%-10% with periodic price adjustment for basic oleo products and higher productivity coupled with improved cost efficiency

- Power purchase period - 2020 to 2045
- Don Sahong Hydro Power is capable to generate 2,000 GWh of electricity annually and the electricity generated will be sold to Electricité Du Laos, which also has a 20% stake in the power plant, under a power purchase agreement for an average tariff of US$0.073kw/hr over 25 years on a take-or-pay basis.
- EDL will pay Don Sahong Power Company 90% in USD and 10% Lao Kip (Laos Currency)
- Capacity - Average 2000 GWh/year, will increase to 2500 GWh after completion of 5th turbine
- Tarrif USD 0.0615
- Increase 1% every year for the first 10 years, then reduce 20% after 15 years, then increase 1% till contract expires
- Royalty to Laos Gov - 5% for first 10 years, 15% for the next 10 years, and 30% for the last 5 years
- Income tax exemption for the first 5 years.

Posted by 521onepiece > 2022-07-10 04:07 | Report Abuse

Walau long time no see yall still feeding the sor zai troll?

Posted by HengyuanZai > 2022-07-12 11:53 | Report Abuse

don't worry, you will doubt your fundamentals soon

Posted by HengyuanZai > 2022-07-12 11:54 | Report Abuse

don't have to feed me .. I alrdy told my friends to sell at peak

Posted by HengyuanZai > 2022-07-12 12:30 | Report Abuse

concession can be terminated anytime, especially if a country goes into default


452 posts

Posted by Just88 > 2022-07-12 16:06 | Report Abuse

The sovereign risk is real. It is very difficult to remain absolutely confident especially if you have a large investment in MFCB. No one including the management can tell you that it is absolutely safe now.

Posted by HengyuanZai > 2022-07-12 16:53 | Report Abuse

just88 I've seen many "gurus" out there hard selling mfcb fundamental . so no doubt many people have bought large amlunt of shares in this company. I'm always against the herd. good luck


452 posts

Posted by Just88 > 2022-07-12 17:13 | Report Abuse

HengyuanZai, earnings from DSH is certain and sustainable. However, too dependent on one source of income is risky. DSH is solid under normal circumstances but Laos' currency has dropped substantially recently raising the question of earnings security. If Laos goes bankrupt like Sri Lanka, Laos is likely to delay payments to DSH.


2,729 posts

Posted by newbie8080 > 2022-07-12 17:33 | Report Abuse

Everyone is speculating many things here.
Anyway, every 3 months will have quarterly results.
Any delay will be easily reflected and spotted in the quarter result since DSH earnings represent almost 50% of total revenue.

Posted by BursaVulture > 2022-07-12 18:45 | Report Abuse

Just88, if I am not mistaken, 90% of their profit is from Hydro, which explains the low valuation because of the concentration and investor view this as risky. but the reward will be how they use the profit and diversify into other business.

as for their earnings from hydro, it is 90% in USD and 10% in Laos Kip. All paid by Cambodia gov. As the contract mentioned, all money must be paid to DSH, no amount can be utilized by EDL for other reason than to pay DSH first. This means if Laos goes kaput, DSH will still receive the payment as the cambodian gov guarantees it.

Posted by HengyuanZai > 2022-07-12 20:41 | Report Abuse

I would say certain and sustainable with things I can't see with naked eyes . all we can see is just numbers and papers .diversify into other business .. so exactly what sector to classify them ? even banker see no valuation in this stock

Posted by HengyuanZai > 2022-07-12 20:41 | Report Abuse

wouldn't *

Posted by BursaVulture > 2022-07-12 20:50 | Report Abuse

HengyuanZai, this is why I said it is a high risk stock with high reward. They are diversifying, and it will take time. If they managed to diversify, then you will be rewarded handsomely, if they failed, then you lose. simple. so, no need you to lecturer the investor and bankers, everybody knows this.

Posted by BursaVulture > 2022-07-12 20:52 | Report Abuse

It is impossible to build another new hydro, the growth have to come from other businesses. dont expect much earnings growth until 2026.

Posted by HengyuanZai > 2022-07-13 12:26 | Report Abuse

the herd still confident with this stock.. wait till they lose hope only enter

Posted by BursaVulture > 2022-07-13 19:46 | Report Abuse

HengyuanZai, people like you that talk bad about a certain stock thinks they can influence the price by commenting on i3. I find this amazing, reminds me of those in TopGlove and Serba. If your comment can move the market, then something is wrong with this market.

If you want to buy, just buy and keep quiet.

Posted by HengyuanZai > 2022-07-13 23:28 | Report Abuse

lol the amount of active users in i3 has decreased drastically over the years. back then during trump era this forum is active like crazy..

Posted by LongTermInvestor8 > 2022-07-14 01:11 | Report Abuse

How Singapore imports electricity fron Laos via Thailand & Malaysia [The Strait Times]

Posted by plantationgameover > 2022-07-14 20:28 |

Post removed.Why?


2,729 posts

Posted by newbie8080 > 2022-07-15 09:51 | Report Abuse

Laos Pushes Forward With Seventh Mekong River Dam Project

Posted by LongTermInvestor8 > 2022-07-16 01:19 | Report Abuse

Why China Can't Let Laos Default

Answer: Location. Just like how China will not let North Korea collapse and by hook by crook will supply all the necessary things to the NK gov. The last thing China wants is a USA puppet state with missiles and military base along her borders. NK and Laos are buffer states, just like how Ukraine is Russia's buffer state. The other is China wants to link the high speed railway from Southern China all the way to Singapore. Laos is the gateway, now waiting for Thailand and Malaysia to join if both countries agree to do so, Singapore will just tag along as there are no railway lines to be build in their country, probably 1KM or 2KM or railway lines, more like a station, that's all.


159 posts

Posted by jonathan_k > 2022-07-27 15:54 | Report Abuse

How is it now?

Posted by snowball2000 > 2022-07-28 09:59 | Report Abuse


Posted by HengyuanZai > 2022-08-01 23:16 | Report Abuse

not yet, next month...


159 posts

Posted by jonathan_k > 2022-08-03 09:43 | Report Abuse



159 posts

Posted by jonathan_k > 2022-08-16 17:25 | Report Abuse

Another post qr briefing coming

Posted by snowball2000 > 2022-08-16 19:10 | Report Abuse

QR on 18/8/22..


2,729 posts

Posted by newbie8080 > 2022-08-17 10:16 | Report Abuse

Mega First Corporation Berhad (“MFCB”) will be releasing its 2nd Quarter ended 30 June 2022 results after the market closes at 5.00 p.m. on 18 August 2022. A post results briefing will be held on 18 August 2022 at 6.00 pm. which is open to all shareholders and interested parties.

For those who are interested to participate in the briefing, please register by clicking the link below:

This announcement is dated 16 August 2022.


159 posts

Posted by jonathan_k > 2022-08-18 10:38 | Report Abuse

Add abit first


159 posts

Posted by jonathan_k > 2022-08-18 10:38 | Report Abuse

Today qr

Posted by snowball2000 > 2022-08-18 18:02 | Report Abuse

Excellent QR, profit attributable to shareholders increased by 15.5% QoQ!

Posted by snowball2000 > 2022-08-18 18:03 | Report Abuse

Interim single tier dividend of 3.6sen declared, vs. 3.25sen in previous year..

Posted by snowball2000 > 2022-08-18 18:08 | Report Abuse

"Trade receivable turnover for EDL remains within the normal range of 4-5 months."

Posted by snowball2000 > 2022-08-18 18:11 | Report Abuse

Investment in quoted shares, however, suffered 61.57million in fair value loss.... :(

Posted by snowball2000 > 2022-08-18 18:13 | Report Abuse

"We do not expect Lao's weak fiscal position, relatively high public debt and low foreign exchange reserves to significantly affect Don Sahong's trade receivable collection from EDL."

Posted by snowball2000 > 2022-08-18 18:16 | Report Abuse

"The Group's net debt declined 29.6% or RM154.1 million from RM520.2 million at the beginning of the year to RM366.1 million at the end of the reporting period."

Posted by snowball2000 > 2022-08-18 18:18 | Report Abuse

Appreciate it if anyone can update on info gathered from investor online briefing. Thanks!


1,258 posts

Posted by DannyArcher > 2022-08-19 08:27 | Report Abuse

Ssttoocckkbbiitt got updates, but this name and url banned by i3. Go to st0 ckbit website to download the notes

Posted by snowball2000 > 2022-08-19 09:24 | Report Abuse

Noted TQ.


159 posts

Posted by jonathan_k > 2022-08-19 14:49 | Report Abuse

Looking good. Continue

Posted by nickinvests > 2022-08-22 04:13 |

Post removed.Why?


2,729 posts

Posted by newbie8080 > 2022-08-23 09:40 | Report Abuse

Expected Q4 dividend to reach 3.8c
Expected total for 2022 will be 7.4c

At 10% dividend growth per annum,
Expected total dividend for 2023 will be 8.1c
Expected total dividend for 2024 will be 9c
Expected total dividend for 2025 with 5th turbine contributing additional 20% capacity, will be 11.9c

Any thoughts?

Posted by BatteriesNotIncluded > 2022-08-29 18:44 | Report Abuse

MFCB biggest problem is Laos, people are afraid of Laos going kaput. The other thing is most of their business are partnership or have an end-time to it, like the plantation and hydro will expire in X years time. What MFCB should do is use the money to buy up some plantation to generate more cash, building another hydro is not a good move as it will take too many years. Anyway, who am I to tell them what to do, they are smarter, I'll just invest and wait, hopefully more good news.


2,729 posts

Posted by newbie8080 > 2022-08-30 14:35 | Report Abuse

Don Sahong took 4 years to built the 4 turbines, is given 25 years to operate before transferring to owner.
With cost to built at RM1.7 bil, this hydropower able to generate at least RM459mil cashflow per annum based on 80% of the 256MW at USD6 cent kwh.
By the way, plantation PAT% for most efficient planter range between 10%-15% due to fertilizer cost, labour,etc. These input cost tend to increase overtime as compared with hydropower where water is free resources and able to attain PAT% of 50% to 60% if the management cost control is good.


1,258 posts

Posted by DannyArcher > 2022-08-30 17:54 | Report Abuse

Am not sure when don sahong was proposed, maybe in 2003 or 2004, environmental report for the dam was completed in 2006, construction starts around 2015 and completed in 2019. From proposal to generating power took almost 15 years. So, building a new dam is really out of the question.


190 posts

Posted by jamestecs > 2022-10-07 09:49 | Report Abuse

SHHHH... This is undervalue company.

Posted by HengyuanZai > 2022-10-13 18:44 | Report Abuse

3.15 .. next 3.00 , Then to 2.5 in long term

Posted by snowball2000 > 2022-10-26 15:16 | Report Abuse

3.32.. next 3.40, Then to 4.00 in the long term..... ;)))

Posted by InsiderShark > 2022-10-26 15:31 | Report Abuse

Malaysia, Singapore complete electricity interconnector upgrade

"In addition to mutual support, the interconnector is currently used for cross-border power trade under the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP). The LTMS-PIP imports up to 100 megawatts (MW) of renewable hydropower from Lao PDR to Singapore via Thailand and Malaysia using existing interconnections," the EMA said.

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