MUDA has experienced a trendline breakout above the RM1.99 level with high volumes. The MACD Indicator has issued a BUY Signal, while the RSI has risen above 50. Price may advance, targeting the RM2.30 and RM2.47 levels. Support will be set around the RM1.73 level. https://klse.i3investor.com/blogs/MplusOnline/154336.jsp
above-waste paper cost outside China has collapsed, In USA, Europe and Asia except China where price is surging to RMB2770 to RMB2900 A TON. Now Muda is a monopoly in Malaysia because competition from China is no more.
Muda will be a takeover target by China company, Nine Dragon might take over Muda @RM4.00 a share valueing the company at RM1.2 billion.No more worthwhile to process waste paper in China at skyrocketing cost.
Muda上游有500千吨加上下游现在有240千吨,过后接下来的几个月还有新的三架机器投产。单单Muda的下游240千顿,都已经值得两亿了,如果和Orna比较的话。Oji paper 才要刚建的上游新产能,450千吨的产能就要价12亿。现在Muda 500千上游吨产+240千吨下游产能才卖你6亿,价钱是否低估了? b)good comment from davidtslim: Summary
1)Muda has the highest capacity of paper mill (upstream) in Malaysia. It benefited from China Blue Sky policy (ban of waste paper import) which the selling price of their products have increased consistently from Q4’17 to Q1’18 while the raw material (waste paper) price has dropped. 2)The timely expansion of Muda in 2017 and 2018 (to be completed in Q3 and Q4) for its paper mill and corrugated plants coincident with the price surge of its product. This will further drive its profit growth especially in Q4’18 due to peak season of online retail shopping in Nov and Dec. 3)Since 2nd half of 2017, paper price in China has been rising, and remain elevated until now. This was caused by shutting down of plants to improve environment. As China is a huge consumer of paper packaging products, the price increase spilled over to international market 4)The demands in Malaysia for corrugated products will continue to grow especially Malaysia now serve as Alibaba’s regional e-commerce and logistics hub in South East Asia. 5)Based on the higher demands and selling price of paper mill products, profit margin of Muda should be expanded in 2018 and it may has some export opportunity. 6)Based on estimated EPS of 38 sen, with forward 12-month PEx of 10x, the fair value of Muda is estimated to be around RM3.8. 7)Muda2018 = (Upstream+downstream+trading) X (Expansion+price hike) = High_Profit_Growth
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....
Lala Chew
127 posts
Posted by Lala Chew > 2018-04-18 18:09 | Report Abuse
Today panic buy at 2.16.... Will hold it until TP 2.4.