Buy or sell? Datuk Lee's confidence in company and answers to questions make me want top up shares. But Datuk Chong's answers short and no analysis make me want to sell. Buy or sell?
MKHOP @ RM 0.80 already worth RM 800 million, now MKH @RM 1.35 market capitalization is RM 792 million you buy MKH now, free MKH lands & construction biz what are you waiting for?
China’s property crisis deepens as developer Country Garden at risk of default Evergrande has filed for bankruptcy protection and firms covering 40% of Chinese home sales have defaulted
https://themalaysianreserve.com/2023/03/29/mkh-to-list-palm-oil-unit-on-bursa-malaysia-main-market/ MKHOP will be listed at rm1.21 meaning the property biz only worth 8 sen (based on today closing price) ! market is putting almost 0 value to their land bank & buildings! --------------------------------------------------------------------------- not so straight forward la, need to factor the ratio 1:7 for the dividend-in-specie distribution
correct but not direct deduct 1.29 - 1.21 = 8sen like that loh. it can't be 8sen for MKH after price adjustment right ? subject to the ratio of 1:7 once is is finalized.
U can see, if u invest into Plantations it is like u r investing into past, present & future wealth all in one mah!
Past wealth 1. Suppose u buy into a plantation co with net cash per share at a price of rm 0.70 and this co has an nta of rm 1.20.....u r already benefiting from the past wealth by buying at a good discount loh!
2. Present wealth Right now u are benefiting from its earnings of 6 sen per share and the div of 3 sen pa....thus giving u a decent earnings & dividend yield while u wait loh! In addition....should the plantation co revalue its plantation currently....its nta could have been as high as Rm 1.80 giving u another potential higher margin of safety loh!
3. Future wealth. Going fwd with continue development, economic growth, inflation and the company ability to grow its profit after deducting dividend payout......the future wealth of the co should grow every year......say in 7 yr time.....its value should be able to double loh! Thus the plantation co u r holding with NAV of Rm 1.80......would have appreciated to Rm 3.60 NAV loh!
That how u invest in plantation....u buy 70 sen at a discount.............u get future wealth of rm 3.60 in 7 yrs time loh!
Many know MKH as a property developer. But the Malaysia property sector had been so over the past 6 to 8 years. Fortunately for MKH it ventured into oil palm plantations in mid 2000s.
If you look at the chart (refer to https://i.postimg.cc/vZWWskv4/MKH-EBIT.png) you can see that while the EBIT contribution from the property development segment had been declining since 2016, that from the plantation segment had been growing. In 2022, the plantation segment accounted for about half of MKH’s EBIT.
So, what does it mean for an investor? • When the property sector recovers, we can expect better overall profit. • Property and oil palm sectors are cyclical but they are affected by different factors. So MKH performance will be less cyclical.
The estates’ strategic positioning within a 100-kilometre radius of Nusantara, the new capital city of Indonesia, places MKHOP in an advantageous position to leverage on the future capital city’s growth. The group is poised to benefit from the economic transformation of East Kalimantan, driven by the development of Nusantara," Chen said in a statement.
Based on an indicative IPO price of 60 sen per share (final IPO price to be determined at a later stage), MKHOP aims to raise RM132 million from the public issue, while the offer for sale will raise RM18.4 million, bringing the total fundraising exercise to RM150.4 million.
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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....
Jan2022s
2 posts
Posted by Jan2022s > 2022-03-09 14:39 | Report Abuse
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