A lot of counters are giving a good opportunity to buy with good returns within a year . This scenario is similar to the beginning of the years 1999 & 2006 .
I bought Renong , Mrcb , granite , TRI , BOLTON and Time Engineering in 1999. also bought Public bank , HLIND . IN 2006 , I bought Uemland , Terbau , Mrcb ,.
In beginning of the year 1999 , granite below 0.30 rebounded to 2.50 , Renong below 0.40 rebounded above 3.0 , Mrcb below 0.50 rebounded to around 5.0 in year 2000 , Time Engineering from 1.0 to 7.00 , HL indah from 1.90 to around 25.00 , BOLTON below 1.0 to more than 3.50 .
Between 2006 - 2007 , Granite( Terbau ) rebounded from below 0.50 to around 2.50 again . In 2017 Iwcity ( or Tebrau or Granite ) rebounded from below 0.80 to around 3.20 .
I am still learning , but if you can catch 3 to 5 dark horses which can give you 3 to 5 times , or even 5 - 10 times or even more in 2-3 years , from counter A then shift to counter B , then counter C , then good enough . In year 2017 , Iwcity , Hengyuan , Petronm and others ,. In 2018 , after panic sell down , MYEG , 5226 and Carimin , 2 months ago and others .
In year 2009 , Uems ( or UEMLAND ) rebounded from 0.50 to more than more than 2.50 in year 2011 then shot up to more than 3.50 in year 2013 . UNISEM also from around 0.50 to more than 2.50 .
Very bad result but the positives are that there are no impairments. My worry is if they can't find enough marine business for their Dry Dock 1 (reserved to MISC) and Dry Dock 2...then why the flying F are they "wasting" RM500mil constructing a Dry Dock 3???
I think the heavy engineering has bottomed out, but really the marine business (which was previously dependable) is worrying me. Revenue of <RM50mil for Q4 from this segment is the LOWEST EVER! And this despite O&G activities recovering somewhat in 2018.
Well, interesting. Gap down at mid-day open, but managed to recover and close higher by the end of the day. I think the bigger fund managers understand that the worst is over. However, now the stock really could go anywhere - collect more if it drops < 60 sen, but at the same time funds may buy heavily at this rather cheap valuation in anticipation of strong profitability over the next 12 - 24 months.
Maybank's research report is the only one that highlighted MMHE actually posted a core net profit in Q4 2018. You can see there was a net RM24mil in impairment on receivables, and RM4mil writedown in PPE in Q4 2018.
So maybe it wasn't as bad as it seems, plus if they can recover the receivables (which I believe relate to the EA Technique FSO) then there can be some nice little write back this year.
this company is also cash rich...37 sen cash per share. Analysts said it will rerate if it wins a contract. Most of the oil companies have a lot of debts .
Posted by TECHfullyBREWED > Mar 18, 2019 08:00 PM | Report Abuse
According to Petronas Activity Outlook 2019-2021, Petronas will be targeting the decommissioning of 50 wells in 2019, 40 in 2020 and 60 in 2021.
Plenty of activity for Destiny, one of the leading players in decommissioning.
CORRECT WAY OF INVESTIGATION! THUMBS UP
TO UNDERSTAND THE JOBS THAT WILL BE AVAILABLE ALL MUST GO SEE PETRONAS 3 YEARS MASTER PLAN
WHAT JOBS ARE AVAILABLE
WHO ARE THE EXPERTS IN THEIR RESPECTIVE FIELDS
WHO GOT THE CORRECT EQUIPMENTS Calvin already found out an increase of HWUs usage. Also Petronas hinted increase of Oil Rigs by 10 to 14 more in year 2019 All this very good for Velesto
AND BIG HEAVY JOBS WILL GO TO MHB (Malaysia Marine & Heavy enginering)
Also SMEs Supporting OGSE for example is T7 Global
What was the actual details of the breach ? Not meeting specifications and performance , failed , damaged , quality issues ?
quote- However, KPOC, in its notice of arbitration, claimed MMHE Sdn Bhd was and is in breach of the contracts due to the supply of certain valves -unquote
What is the details of the below statement ? (layman understanding , does it mean like a new house, owner found cracks , seller don't want to repair , buyer repair on its own and claim it ?)
quote- Meanwhile, Sabah Shell is counterclaiming against GKL for alleged defective work, alleged limited functionality of the Gumusut–Kakap semi-FPS, liquidated damages and a refund of the full amount paid to GKL under the adjudication decision. -unquote
125 million even if claimed, still not a problem coz mhb cash rich. This case will take a long long time in court, By the time , everything have already change for the better
Absolutely true and even then mhb can win case as well. Meantime within a year or more mhb will flourish with the rise in Petronas capex for upstream jobs.
Forward fr the Star 12.2.2019 PETALING JAYA: MISC Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd ’s (MMHE) are frontrunners for two major contracts from Petronas Carigali’s Limbayong oil and gas field development off Sabah, says AmInvestment Bank Research.
Given the local content requirement for the contracts, the research house said it expected MISC to secure the floating production, storage and offloading (FPSO) vessel charter job, while its 66.5%-owned fabrication provider MMHE was likely to win the engineering, procurement, construction, installation and commissioning (EPCIC) contract.
“For MISC, the earnings impact is likely to be minimal given the group’s huge asset base while the conversion job for MMHE could have a more substantive impact to its depleted order book of RM932mil currently,” it said in its oil and gas sector report.
It was reported recently that local players, including MISC and Yinson Holdings Bhd, were preparing to bid for a FPSO vessel charter for the oil and gas field development, with technical and commercial offers likely to be submitted next month.
AmInvestment Bank Research noted that international FPSO operators such as Modec and SBM Offshore were not expected to bid for contracts, despite having received tenders for the project last year, due to strict local content standards.
The standards include having to carry out the module fabrication and engineering work in Malaysia, with a requirement for up to 90% local manpower.
It said Sapura Energy, MMHE, Kuching-headquartered Brooke Dockyard, Klang-based Muhibbah Marine Engineering and KKB Engineering’s OceanMight were expected to bid for the EPCIC contract.
“However, foreign yards may also be planning to tie up with a local player,” it noted.
The Limbayong tender opened in November last year on a fast-track procurement, with fabrication workto be carried out over 26 months after the award.
Moving forward, the research house said it does not expect any substantive changes to Petronas’ field development activities as Brent crude oil prices were still above its 2018 internal crude oil assumption of US$52/barrel for project feasibility studies.
TAGS / KEYWORDS: Oil & Gas , Corporate News , Oil And Gas
So crazy, why the push at close? Hate it when this happens, cause tomorrow it will definitely open lower at 0.82 levels. It's not even the end of month / quarter / year, so window dressing is not the answer. Almost 1 million shares changed hands in the last 30 mins. I wonder if someone just decided to push a buy order without any care for the price, or if there's some news about to come out. Doubt there'd be any news...but lets see.
"The agreement is valid for a period of 5 years with option to extend by PETRONAS. The contract covers integrated plant turnaround works and daily maintenance work on mechanical static for PETRONAS’ plants group wide."
Also, it seems to be this is for all Petronas plants group wide, as quoted above. So if that is really the case, may be even higher than RM200mil/year.
Don't forget though this is a JV. So MMHE (assuming has a 50% share) will get roughly half the revenue/profits.
My estimate on the low-end is RM200mil/yr, on the higher end perhaps even up to RM400mil/yr. Let's see what it actually is tomorrow in the research reports as hard to find info about this online.
Tomorrow is the annual general meeting as well, so let's see if there's any new news that comes out of there.
Why people saying MHB is cash rich company? Meanwhile, this company almost making loses each quarter for the past few years? Dun it smelly? Actually the cash in hand is long term debt created from RM1b sukuk and MISC (or Petronas) is MHB's guarantor.....
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....
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Posted by Shareview123 > 2019-01-30 14:23 | Report Abuse
A lot of counters are giving a good opportunity to buy with good returns within a year . This scenario is similar to the beginning of the years 1999 & 2006 .