Posted by ragesliew > 2020-08-26 20:40 | Report Abuse

NTA 2.38.
Company performance badly impacted by MCO and Cambodia airport.

Posted by Fundamentalist91 > 2020-08-28 11:24 | Report Abuse

#WorldWideInvestor

That's a very small portion of cash in hand. In this crazy times, its not wise to be overconfident, most stocks are overstretched and got higher than pre-covid even though it is also negatively effected by Covid.

So there might be a big pullback to a more reasonable valuation, Its better to have more cash in hand, more bullet to buy at cheaper price.

As for Muhibbah, its already low, ofcourse Q2,Q3 is bad but the market always reacts earlier, thats why most of the companies that's post bad Q2 result right now didn't get sold, investors already expects that.

The price is already low as it is for Muhibbah, there's not much room for further potential drop.

Sure tech is a great stock, but often times they're over valuated and more prone to pump and dump scenarios.

Anyway, good luck with your method, I bought at RM0.85 and I'm holding Muhibbah long term, its a great company with consistent performance, there's nothing to lose in long term.

Posted by RainT > 2020-08-28 17:51 | Report Abuse

another big loss

Posted by RainT > 2020-08-28 17:54 | Report Abuse

@fundamentalist91

u wrote consistent performance for MUHIBAH ?

Can you see MUHIBAH profit is a roller coaster and also make loss in 2 quarters?

So this can call consistent performance for long term?

Posted by Fundamentalist91 > 2020-08-31 20:24 | Report Abuse

@RainT

I'm talking about years, I'm not talking just about this year.

53 quarters since 2007

How many quarters are loss? 4 quarters only my friend

How many stocks in Malaysia, that's about the same market cap, same sector, that could match Muhibbah consistency? you can easily count la

is there any year that doesn't have dividend payout at all since 2007? None

so you see, this loss that Muhibbah is making right now, its not because they're a company with bad management, but its because of Covid.

and will covid stays forever? for quite a while sure, but forever? Nope, there will be vaccines, there will be a recovery

and Muhibbah, a company without management issue, will recover and be back in business easily.

I would easily pick a company with great management, vision and records than a company that benefits short-term from covid.

Posted by Maxigain > 2020-08-31 22:00 | Report Abuse

Well said

Posted by RainT > 2020-09-02 18:36 | Report Abuse

@Fundamentalist91

good insight!

thanks for sharing!!

Posted by ragesliew > 2020-09-07 20:48 | Report Abuse

Fundamentalist,

Well said. Muhinah has been expanding the yard at Klang to cater for increased and big construction project. Unfortunately, they got hit by CoVID in Malaysia and Cambodia. They re-started work during CMCO but running at 50%. Should see improve results in Q3, 2020 results but it will only be announced in Nov 2020.

Posted by scooter > 2020-09-09 22:18 | Report Abuse

General Meeting tomorrow 130pm.
Will dividend finally declared?

Posted by Prashan Ram > 2020-09-10 18:31 | Report Abuse

2.5 cents

Posted by scooter > 2020-09-10 22:22 | Report Abuse

2.5c, nt bad in tis year. Hopefully share price stand above rm1

Posted by RainT > 2020-09-13 08:23 | Report Abuse

I m waiting to buy at 72 sen

When will come ...

Posted by JayC88 > 2020-09-25 18:48 | Report Abuse

soon soon... i wait at 70

Posted by CertifiedAnalyst > 2020-09-29 17:40 | Report Abuse

Muhibbah is going under. one should look at its cashflow and pause to rely on past paper profits. After all, assuming past is an indicator of future is similar to farm chickens expecting to be feed every morning.

Starting with debt payable by this year, within 12 months, the total is 1.1 billion, included bills payable. those who say it is cash rich should check how much cash it left after removing favelle favco’s portion, left less than 350 million.

It has a practice of rolling over its bill payables, a credit card alike bank facility in layman’s term, with realisation of order book. However, its order book now, excluded that of favelle favco, is less than 700million. If it would manage to exhaust all of its order book in 12 months and banks would willing to finance the heavily debt-ridden company, then, combined with its cash, it has just enough to pay the coming short-term debts, before dividend and other operating expenditures.

The easier way to understand this is to look at the dividend it will receive from favelle favco in November, rm20 million, 60% of total favelle favco dividend, but it will only pay its own for 11million, suggesting that it pockets the difference to finance its ongoing difficulties and that other business segments, airports and construction, are in negative cashflow.

Therefore, those on paper profits with SCA that have been retained for decades are failed to translate into hard currency, even in critical time, raising questions of its management’s effectiveness in converting receivables into cash.

One recent apparent failure is when it failed to collect receivables of a ship it built from M&G, and thus translating the sum into acquisition of the ship’s share.
A simple analogy would be a developer still let a purchaser to buy a newly built customised-house after purchaser failed to secure full loan from bank, in turn, the developer will own certain percentage of the house for the failed payment. That strongly suggests a failed management in planning and execution.

With construction of new cambodian airports by chinese and lack of success in profitable constrcution’s bidding, its prospect is dim. However, the biggest concern now is its going-concern, unless it manages to get new loan amid of pandemic crisis to stay afloat or new project, last announced was more than 12 months, to finance its cashflow with bills payables.

Knowledgable analysts such as those of kwsp and tabung haji have dumped most of their holdings, ceased to be substantial investors since May. those holding for hoping its share price would rebound should consider their chance of profiting is higher on casino’s table.

Posted by michaelwong > 2020-09-29 17:55 | Report Abuse

CertifiedAnalyst , good knowledgeable sound sharing . Ur good work sharings needs to be appreciated much !

Posted by Chekky > 2020-10-02 19:06 | Report Abuse

Stock issue lo, those that believe in the company will cough out more money. Those that are scared will run away.

Posted by uptrending > 2020-10-03 10:46 | Report Abuse

ONE AND ONLY ONE POST FROM A COMPLETELY NEW ACCOUNT OF A SELF CLAIMED CERTIFIED ANALYST...

Posted by Maxigain > 2020-10-03 15:53 |

Post removed.Why?

Posted by uptrending > 2020-10-03 19:18 | Report Abuse

Early bird catches the worms.
Buy stocks that will shoot up when vaccines past the third phase testing. Now is the time, ahead of time.

Posted by RainT > 2020-10-04 19:11 | Report Abuse

MUHIBAH still got hope??

Almost all shareholders were dumping this company

Posted by uptrending > 2020-10-04 23:39 | Report Abuse

Where have all the shares gone? Haha

Posted by uptrending > 2020-10-05 09:34 | Report Abuse

The 21% associate, Cambodia Airport, is cash rich with minimun debt. The carrying value for the 21% stake is RM700+ million.

Over the past 6 years since 2014, total profits due to Muhibah, less dividend received, and retained in the associate is about Rm400 million, which is more than the present Market Cap of RM 385 million.

58.6 % subsidiary, Favelle Favco, worths more than Rm300 million at the present market value..

What a steal @77 cents

Posted by CertifiedAnalyst > 2020-10-05 15:22 | Report Abuse

How could a right issue resolves a 1 billion debt due in 12 months when its market cap is valued at only 380 million? Unless it raise 3 times of its market cap, then its own management, mac’s family and executives, whose own about 25% of total shareholding needs to come out with 280 million from their personal pockets to avoid their shares’ dilution.

Of course 3 times is an extreme measure assuming no other source of fund. Anyway, when everyone in the management knows the company is going under, convincing them to go deeper with extra personal capital is simply impossible.

Anyone familiar with right issue or any other issue including bond knows that most, if not all, of issues are sold to big investors before they are offered to the public, perhaps left less than 10% of raised capital. In this particular case that Muhibbah’s substantial investors, excluding management, such as KWSP and Tabung Haji have disposed their shareholding since May 2020, so it is unlikely to expect any other big investor to fill the gap, even if the management team members are willing to dilute their own shares by not pouring personal capital into a sinking ship.

One does not need to post several to proof his credential, quality of work prevails quantity’s.
@uptrending. may be you should just focus on its recent dividend distribution and seek for truth at the easier ground, given your intellect‘s limitation to understand complexed analysis: Why when it will receive 20 million from Favelle Favco in November but only pay its own dividend for 11 million?

That implied ordinary Favelle Favco shareholder is better off by owning only its crane subsidiary, instead of owning the parental company, Muhibbah, which diluted Favelle Favco’s return at 45% for losses in airport and construction.

That explained Favelle Favco’s share has rebounded but not Muhibbah’s. Your reverse logic, which saying worth of its subsidiary and SCA is not reflected in that of parental is an opportunity is simply ignorance to the fact that the Market has valued Muhibbah as almost negative for its heavy debt, is completely flawed.

SCA like any other airports in the World is suffering from pandemic and will face intense competition from new Chinese-owned Cambodian Airports, so it is unlikely for SCA to pay any dividend to shareholders in coming years.
Moreover, Muhibbah being minority shareholder, even with 30%, in SCA is unable to exert influence on SCA’s dividend policy. It is obvious when it needs to pay 40-50 million interest annually for years because of its heavy debt, but leaving the so called 400 million with SCA for decades for 0 interest. That raised the questions of management’s competency in converting paper profit into cash and plausibility of its revenue recognition, perhaps yet another accounting scandal to be unveiled.

Posted by uptrending > 2020-10-05 16:20 | Report Abuse

2 posts, solely on Muhibah

Posted by uptrending > 2020-10-05 16:28 | Report Abuse

Current Asset is more than rm1 billion is completely ignored...

Muhibah never raised RI in the past 20 years.

Don't try to raise fears to the retailers to collect cheap..

Posted by uptrending > 2020-10-05 16:30 | Report Abuse

In the past 20 years, Muhibah built Favelle Favco, and Airport Concession Business in Cambodia. That speak volume of the Management.

Posted by CertifiedAnalyst > 2020-10-05 17:11 | Report Abuse

Current assets that cannot translate into cash, except cash itself, are merely temporary losses parking in balance sheet, inflated by paper profits through accrual and implausible profit recognition. The management has proven to be incompetent in converting receivables, derived from paper profits, into cash in several cases, including M&G’s. That has always been my focus, unless you are not paying attention just as you do on your blunt analysis.

No one is questioning the management’s ability of expanding its business, after all what is required for expansion is primarily money, raised by equity, or debt such as the 1 billion currently sitting on Muhibbah balance sheet.

Rest assured that no reasonable retail investor will touch this counter until it resolves its severe insolvency doubt, just as KWSP and Tabung Haji have disposed its shares at heavy losses.

Posted by uptrending > 2020-10-05 18:34 | Report Abuse

Receivables and Contract work in progress cannot be translated into cash? Over the past 20 years, Cambodia Airports as an associate accounted for rm1, 026,458,000 share of profits to the company and the company received rm522, 694, 000 as dividend, a pay out ratio of 51%. This profits cannot be converted into cash? Just paper?

Why are you so interested in this counter out of the 1000 in bursa? Purposely created a new account and posted self claim excellent analysis just on this company?

I will just ignore from now on..

Posted by CertifiedAnalyst > 2020-10-05 20:14 | Report Abuse

a wise individual would recognise an effect on balance, in which both positive and negative; both debit and credit, before drawing into conclusion.

What I have demonstrated was that there is reasonably weaker force in the current assets than current liability, a solid, indisputable1 billion debts due to banks.
The weaker current assets consist of only 350 million cash after removing falleve favco’s and of some accruals, paper profit, that are based purely on management’s discretion, accruals that in several cases failed to convert into cash. That would drawing its financial into deep current liabilities, in turn, could result inability of serving the 1 billion debt due in 12 months.

One can continue to brag about single force, without considering into both forces into equilibrium, or worse justify past performance, such as payout ratio, as future’s guarantee.

I am here to show the full pictures to everyone, it’s up to the readers to judge whether they want to invest their hard earned money into Muhibbah, which, in my opinion, has severe going concern doubt, and at least not only judging based on a one-sided, skewed opinion.

Posted by ian0311 > 2020-10-06 13:01 | Report Abuse

feel not so strong
is this a strong stock?

Posted by CertifiedAnalyst > 2020-10-06 17:01 | Report Abuse

I’m here to give an opinion. Just as someone said how strong its payout ratio is but the fact that my whole point is on its 12 months solvency, analysing its current assets, current liability and cashflow, including the 20 million dividend it will receive from Favelle Favco but only paying 11 million to its own shareholder.

The mentioned payout ratio by the someone is referred to dividend receivable from SCA that is recorded as long term asset under investment in associate, that explained it materialise only 51% in 20 years. However, I did touch on it to highlight its unlikelihood of materialising much in coming 12 months given the reasons mentioned above.

The ability of converting receivables, example M&G’s, into cash and the plausibility profit recognition, of which contract assets and contract liability, are the key doubts on its current assets, suggesting weaker force than indisputable 1 billion debt due in 12 months, in turn, driving into deep current liability.

4 possibilities in serving the debt are highlighted but none is convincing:
1) more debt via bank acceptance but limited order book or via loan but unlikely given heavy debt and pandemic.
2) new project then finance via bank acceptance, but unlikely given pandemic
3) IR/Bond, unlikely as large investors such as KWSP and Tabung Haji have left.
4) return from operations, extremely unlikely given its nov dividend is at discount 45% of crane dividend, suggesting that airport and construction are in negative return and thus that its contract asset and liability, exclude crane, are subject to scrutiny.
4a) dividend from SCA, unlikely because pandemic and new airports by Chinese. Besides, it is a long term asset that materialise slowly throughout 20 years, unlikely resolving the immediate 1 billion debt due in 12 months, given being minority so unable to exert influence on dividend policy such that to release all remaining retained profit.

A wise man should ask the right question. There is no need to question my credential and identity as it does not has any bearing to your wealth, question the facts presented. Be smart.

Posted by dompeilee > 2020-11-06 17:00 | Report Abuse

Bought Muhibbah @ 76-77c

Posted by RainT > 2020-11-08 08:40 | Report Abuse

@dompeilee

what is ur buy reasons for MUHIBAH ?

with Cambodia airport is bad prospect

construction order book is depleting

Posted by dompeilee > 2020-11-09 14:52 | Report Abuse

Purely techical analysis & yield considerations =)

Posted by dompeilee > 2020-11-10 09:14 | Report Abuse

dompeilee Bought Muhibbah @ 76-77c
06/11/2020 5:00 PM

=)

Posted by dompeilee > 2020-11-10 19:35 | Report Abuse

Tomorrow LAST DAY to be entitled 2 dividend...don't chase too high ah!

Posted by iskandar100k > 2020-11-12 10:44 | Report Abuse

Bought some at RM0.76 and will probably top up more when the price drops post dividend..

Posted by BRAVOZULU > 2020-11-12 11:43 | Report Abuse

kalau hari ini jual masih boleh dapat dividen keee geng

Posted by dompeilee > 2020-11-12 17:50 | Report Abuse

Got dividend AND capital gain as well! Yahoo!!! But I'm still holding =)

Posted by JayC88 > 2020-11-12 19:53 | Report Abuse

pleasantly surprised. will hold this until above rm1.
dompeilee, i realized we have both this and landmark! haha

Posted by dompeilee > 2020-11-13 07:54 | Report Abuse

Yes, landmrk is yet another challenging share...bought in the 20s & didn't move for months! Play time...

Posted by iskandar100k > 2020-11-13 09:14 | Report Abuse

I'm still waiting for a good time to buy more of this share... I believe it
can do well in the future..

Posted by JayC88 > 2020-11-13 12:51 | Report Abuse

yep. my cash is ready to topup if it dips below 80c.

Posted by iskandar100k > 2020-11-16 11:28 | Report Abuse

If it keeps going up then i can't top up ahhahaa... Might need to buy another stock...So far my YTLREIT stock is doing good even though vaccine is not out yet..

Posted by dompeilee > 2020-11-16 15:28 | Report Abuse

Muhibbah shares hit the highest level since July 27th...really muhibbah for me & my subscribers =)

Posted by Axelrod > 2020-11-16 15:28 | Report Abuse

https://klse.i3investor.com/blogs/buyandholdlt/2020-11-16-story-h1536437889-AN_UNDERVALUED_AIRPORT_COMPANY.jsp

Excellent company to ride recovery story.

Posted by virust > 2020-11-16 16:24 | Report Abuse

A lot ppl dont this share link to an airport which operated in Cambodia.

Posted by JayC88 > 2020-11-17 03:00 | Report Abuse

yep. MAHB airport share has gone up, it is just a matter of time Muhibbah follows. Muhibbah also has stake in FAVCO. Past quarters have been profitable save for the last one due to MCO.

Posted by Fundamentalist91 > 2020-11-17 12:05 | Report Abuse

@CertifiedAnalyst.

Thank you for your research and knowledge. I will sure to keep that in mind, do you have a blog or website where you share your insights?

Posted by PenghuluGia > 2020-11-17 12:13 | Report Abuse

Air Asia and Muhibbah flying