MCE HOLDINGS BERHAD

KLSE (MYR): MCEHLDG (7004)

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Last Price

1.61

Today's Change

+0.01 (0.63%)

Day's Change

1.60 - 1.62

Trading Volume

167,500


6 people like this.

558 comment(s). Last comment by klee 2 months ago

Stead

162 posts

Posted by Stead > 2016-11-17 08:34 | Report Abuse

The beauty of owning a 51% stake in the Company is that you paid half the price to own 100% resources. All the "value traps" like high NTA, PBA etc are just illusion unless you have the mean to take over the Company and unlock the value. Or else, it remains look good on paper.

Stead

162 posts

Posted by Stead > 2016-11-17 08:41 | Report Abuse

For those who own the share, attending the AGM and questioning the Board and key executives will be much useful, meaningful and helpful towards your investment in MCEholdings. Executive Director Mr. Lee Ming Kee will turn 58 next year. His ability to drive the Company is very important. He is also sitting in a PLC to be listed soon as an Independent Director. Not too sure that will dilute his time towards managing the Company.

Stead

162 posts

Posted by Stead > 2016-11-17 08:44 | Report Abuse

They have ambitious plan to develop medical centre at Setia Alam. The land is good since it is next to the Setia City Mall. But with Dr. Goh KC alone, and without a team of professionals possessing the necessary knowledge in Managing a private hospital, I am doubtful of the execution part. Maybe that's the reason why after almost 2 years since the incorporation of a subsidiary to own and operate the hospital project still nothing concrete to share with shareholders.

pt tey

169 posts

Posted by pt tey > 2016-11-17 21:57 | Report Abuse

as 2nd generations taking biz. and major automotive player is base on klang valley till gurun. why they still want remain factory at jb? aren't transportation for deliver auto parts will higher?

KINGV

54 posts

Posted by KINGV > 2016-11-18 00:04 | Report Abuse

Mr/Miss Stead,
I have read your comments and the comments sound reasonable. You seems to have a good knowledge of what is going on. However there are some points I would like to raise.

1) I gained from you the knowledge that imported intermediate inputs made up 70%.. .Then there is issue of the impact from the depreciating ringgit. The question is will the ringgit keep on depreciating?. There are many determinants of the value of the ringgit such as the current surplus,fiscal deficit,national debt,amount of foreign reserves,interest rates,and others. I think the future value of the ringgit will largely be determined by the future price of petroleum other things remaining the same. Where will be the future price of petroleum is a million dollar question.
Secondly there is a sensitivity analysis for foreign currency risk done by the company (pp.83,annual report 2015). The analysis seem to suggest that the effects are not that terrible.
2)As regards the payment of dividend, as an investor I would prefer to invest in a company that tries to maintain a minimum dividend if she can. What is that dividend of 1% compared to what the executive directors are receiving. Dr. Goh KC is the new managing director (company's website) and so maybe he should try to implement the minimum dividend policy if the company can to maintain the goodwill of minority shareholders who have suffered from the depressed market price of the company.
3)It is true that owning 51% allows you to control 100%. There are value traps in a sense but choice do minority shareholders have?. Unless one have insider information, most of us will look at the good figures as you say in making the choice.
4)I would agree with you that attending the AGM is good but sometimes it is not practical. I have a friend who is a shareholder but he is from Kuching. With all the modern technology, the company could have a site where questions can be posed and answered.
As regards Mr. Lim Ming Kee, he is paid well as a managing director (currently executive director) before(pp.58 annual report 2015) and as such he should try to make MCE great again. The remunerations for an independent non-executive director is generally very small relative to what he is getting.
5)I do not know what is happening to the medical center at Setia Alam and I think you raised some valid points and issues.

The price of the company's share has reached quite a depressing level that maybe the company could set up a buyback scheme which will not cost much but yet greatly enhanced the nta of the share.

Stead

162 posts

Posted by Stead > 2016-11-18 09:31 | Report Abuse

Their AGM will be somewhere January next year. Based on the past records, they would likely host it at some hotel in Johor Bahru again. Unless they wish to meet shareholders outside JB, or location where they own a factory/office i.e. Klang, Port Klang etc.

Mr. Lim only owns a fraction in the Company, 700k+ shares or 1.6%? I will assume that his shareholdings in the Company is relatively immaterial to his remuneration. It is not easy to make the Company great given the headwinds faced by the industry and external woes due to depreciating Ringgit.

However, it will be great if the Management can share the % in their revenue, made up by OEM and After-Sales market respectively. I only noticed that they would announce contracts secured with local automotive companies (which is quite impressive) and I assumed that it is mostly OEM. How about After-Sales segment which is recurrent in nature and should enjoy higher margin based on the information gathered from APM, NHFatt or MBMR. Would love to listen if anybody can share more info.

Stead

162 posts

Posted by Stead > 2016-11-18 09:35 | Report Abuse

Share price wise, I wish not to comment. If the performance is good or improvement can be seen, share buyback scheme is redundant. In fact, if one is confident in the Company's prospects, one should instead take action in the market than urging people to buy into his/her belief in the Company based on fundamentals. Market and fundamental are two separate and distinctive things. Most known the latter while the former requires extraordinary nerve and temperament. No wonder so few investors can become or graduate to be super or great investor.

KINGV

54 posts

Posted by KINGV > 2016-11-20 22:01 | Report Abuse

It is because of the depressed price level and the good financial health that I suggest that maybe the company has a buyback scheme. I am neutral on the company's prospects currently. I support a buyback scheme based on the followings:
1)The current published nta is RM2.05 while the market price is RM0.66 .The nta is more than 3 times the market price. Any purchase at current price will enhanced the nta of the existing shares.
2)You do not require a big sum of money to buy and support the share at current price. At the current price of RM0.66 the market capitalization is just below RM30 million. An allocation of RM3 million will allow the company to buy back around 10% of the outstanding shares.
3) The market for this share is not liquid at all. As such any sudden 'big' purchase/sale will have a 'big' impact on the share price. Under such circumstances, the buyback scheme will come in handy when someone wants to liquidate his/her holdings due to his/her personal need of money. As an example you notice that the share of Yilai is very steady at around RM0.85 due to the company's buyback scheme. You will also notice that the gap between the nta and the market price of Yilai is not that drastic.

I do not think that market and fundamentals are mutually exclusive. I am inclined to believe that improving/deteriorating fundamentals set the trend of the price movement. It is the directors and/or syndicates who overplay the trend. Unless you are very good with technical analysis or have insider information like some of the privileged brokers, many will in the end be caught and overtime disappear from the market. Nothing beats the analysis of the fundamentals and prospects except situations when you have directors without principles and morals.

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-20 22:24 | Report Abuse

MULTICODE IS ONE OF THE MOST UNDERVALUE COMPANY WITH HIGH QUALITY ASSETS IN NTA

1) Factories in Pandan
2) Lands bought from Sp Setia

This is just like Perak Corp selling at 60 cts in those days!

Stead

162 posts

Posted by Stead > 2016-11-21 14:02 | Report Abuse

I am not sure if the current price is depressed enough or there are enough depressed shareholders to continue to let go their share at current price or lower.

Good financial health in terms of NTA but it's the free cash flow they're able to generate over the mid to long term that counts.

Since the market capitalisation is just below RM30mil, a 5% stake is only RM1.5 mil. Why isn't many people spot this "gem" if it's so grossly underpriced or undervalued? Are people mispriced this stock? or wrongly valued the Company?

Maybe by writing to the Board and ask them to consider putting an agenda for share buyback will be more pragmatic instead of rationalize the reasons here? AGM is somewhere Jan next year. It's not too late to write to the Board for additional agenda NOW.

Some observation:

1)The current published nta is RM2.05 while the market price is RM0.66 .The nta is more than 3 times the market price. Any purchase at current price will enhanced the nta of the existing shares.
2)You do not require a big sum of money to buy and support the share at current price. At the current price of RM0.66 the market capitalization is just below RM30 million. An allocation of RM3 million will allow the company to buy back around 10% of the outstanding shares.

>>The Company may have problem continued their listing if they do share buyback as they may not be able to fulfil the minimum listing requirements of issued and paid up capital of 40 mil shares if some shareholders are depressed enough to offload their holdings at current or lower price.

3) The market for this share is not liquid at all. As such any sudden 'big' purchase/sale will have a 'big' impact on the share price. Under such circumstances, the buyback scheme will come in handy when someone wants to liquidate his/her holdings due to his/her personal need of money. As an example you notice that the share of Yilai is very steady at around RM0.85 due to the company's buyback scheme. You will also notice that the gap between the nta and the market price of Yilai is not that drastic.

>>If someone want to liquidate their share at fire sale price, why should the Company be benefitted of such acts? Why not people like you and me who believe in the Company and to be profited handsomely of other people foolishness? I dun understand the logic. The Company's business is to drive the Company's revenue and improve margin. The share market and share price thingy leave it to market participants like you and me. Leave the Company alone.

I do not think that market and fundamentals are mutually exclusive. I am inclined to believe that improving/deteriorating fundamentals set the trend of the price movement. It is the directors and/or syndicates who overplay the trend. Unless you are very good with technical analysis or have insider information like some of the privileged brokers, many will in the end be caught and overtime disappear from the market. Nothing beats the analysis of the fundamentals and prospects except situations when you have directors without principles and morals

>>I am not good in technical analysis. In fact, I knew zero about TA. I always buy expensive and sell too early. But at least I profit from other people's foolishness. I don't like the idea of Company competing with its shareholders in buying their share. I like to take advantage of other people craziness or foolishness.

I meant not to offend anybody here. I will prefer if focus to be placed on the Company's performance and not the share price.

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-21 14:15 | Report Abuse

YES!

CALVIN THINKS MCE HOLDING IS A PRIME TARGET FOR CORPORATE RAIDERS.

CORPORATE RAIDERS WILL BUY UP UNDERVALUE COMPANIES IN THE US.

BREAK IT UP! SELL THEM IN PIECE MEAL ONE AND ONE & REAP THE PROFIT - THEN MOVE ON.

NOW THESE CORPORATE RAIDERS ARE MOVING FROM USA TO AUSTRALIA

MATTER OF TIME THEY COME TO MALAYSIA

AND MCE HOLDING IS A PRIME TARGET AS IT IS GROSSLY UNDERVALUED!!

Stead

162 posts

Posted by Stead > 2016-11-21 14:32 | Report Abuse

Just curious, KINGV, are you having a sizeable block when you suggest MCE is a good candidate for take-over and privatization and share buyback scheme?

KINGV

54 posts

Posted by KINGV > 2016-11-21 20:19 | Report Abuse

Stead,
This is just a forum where participants can exchange views/facts so that one will hopefully gain from the discussion .The limits of the discussion are determined by the administer of this site and not by any individual. The topics I brought up are to help myself and other minority shareholders hopefully. I am uncomfortable with the direction of our discussion and we should part in the spirit of agree to disagree.

KINGV

54 posts

Posted by KINGV > 2016-11-21 20:51 | Report Abuse

Calvintaneng,
The break up of a company into individual parts and sell them was a very common practice after the great crash of 1929. It was during this time many companies have very depressed prices and yet have valuable assets.
Calvin, you should read the book entitled 'The Great Crash 1929' by J.K .Galbraith (Penguin Books) if you can lay hands on the book. It a good read for investors since it tells the dramatic fall in the share prices of many of the blue chips. It also tell the stories of many Wall Street tycoons who became paupers and some committed suicide not able to face the change in their fortunes.

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-22 11:09 | Report Abuse

Yes, like Ben Bernanke who was a student of the Great Depression.
Ben was afraid of a repeat of the 1929 Stock Market crash.

So both Greenspan and Bernanke implemented QE OR QUANTITIVE EASING OR MONEY PRINTING.

THIS WILL AVERT DEPRESSION BUT THE OPPOSITE WILL HAPPEN - HYPER INFLATION AND THE ULTIMATE DESTRUCTION OF ALL PAPER CURRENCIES.

THAT'S WHY CASH ITSELF IS NOT SAFE.

WE MUST HIDE IN THE SAFETY OF REAL ASSETS LIKE PROPERTIES OR BUSINESSES

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-24 14:48 | Report Abuse

WHOA!! VERY GOOD NEWS TODAY

PROTON ERTIGA JUST LAUNCHED AT BELOW RM59K

THIS WILL BEAT PERODUA ALZA, TOYOTA ADVANZA, NISSAN LIVINA HANDS DOWN!!

A CHAMPION FROM DRB HAS FINALLY EMERGED!!!!

YIPPY!!!!!!!!!!!!!!!!!!!!!!!!!!! & HIP HIP HOORAY!!!!!!!!!!!! & YAHOOOOOOOOOO!!!!!!!


http://paultan.org/2016/11/24/proton-ertiga-mpv-launched-in-malaysia-rm59k-65k/

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-28 22:19 | Report Abuse

HOLD TIGHT YOUR PRECIOUS MCE HOLDING SHARES!! CANDIDATE FOR PRIVATIZATION!!


CALVIN HIT PRIVATIZATION JACK POT NO. 4 TODAY

THE STORE BEING TAKEN PRIVATE FOR A 50% UPSIDE GAIN


calvintaneng WOW! WOW! WOW!

Another Chun Chun Call by Calvin Tan Research

On January 19th 2014 Calvin called for a buy on The Store at Rm2.35

Today, It is being taken private at a Nice Rm3.52

So price plus small dividend of 3.75% equal to a 50% Gain!!


Now These Are The Stocks Recommended by Calvin Tan Research taken private

1) SUPER ENTERPRIZE

Call to buy Rm1.25. Taken private Rm3.75 (UP A WHOPPING 200%)

2) KULIM

Call to buy at Rm2.50. Taken private by Johor Corp for Rm4.10 (UP A NICE 60%)

3) TMAKMUR - Land of Prosperity

Call to buy at Rm1.38. Taken private by Pahang Sultan at Rm1.90 (37% Profit)


4) AND NOW THE STORE

Call to buy at Rm2.35 on January 19th 2014 at Rm2.35 .

OFFER TO TAKE PRIVATE AT RM3.52

Plus 3.75% dividend = THE GAIN IS 50%


YAHHOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Calvin Tan Research specializes in overlooked, under researched & undervalue stocks!

HITTING JACK POT TIME AFTER TIME AFTER TIME!!!
28/11/2016 22:08

Yipman

391 posts

Posted by Yipman > 2016-11-28 22:28 | Report Abuse

CALVIN, what about masteel?
why i just keep silent with this counter. Everyone looking for ur explanation. Don't be clown here and there.

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-11-28 23:07 | Report Abuse

Posted by Yipman > Nov 28, 2016 10:28 PM | Report Abuse

CALVIN, what about masteel?
why i just keep silent with this counter. Everyone looking for ur explanation. Don't be clown here and there.

Yipman,

Masteel is the Master of Long Steel.

Longer term it should do very well due to High Speed Rail, East Coastal Rail, All MRT, LRT.

So just at on weakness.

At 72 cts Masteel is still up more than 100% from its 52 week low of 34 cts.

As I am a deep value hunter I now turn extra bullish on those counters that have fallen the most like this MCE Holding. I am bullish on coming GE14 stocks like DRB & MRCB. Also all oil palm plantation stocks as a group!

Super_SKL

179 posts

Posted by Super_SKL > 2016-12-01 16:37 | Report Abuse

________________________
calvintaneng

Multico = MultiGold

Its Salient Factors:

1) At 83 cts with NTA over Rm2.00 Multico is selling at Deep Discount. Provides Margin of Safety.

2) Recently Govt pumped money into DRB to pay for Proton Vendors. So Multico is OK.

3) Multico already secured multi ringgit project for new orders of parts.

4) Multico will be the Number One beneficiary of TPP. Its exports to USA, Canada & Mexico great

5) SEEING Future prospects of MultiGold Insiders have bought at 85 cts. Anything below 85 cts just wallop and wallop!

Another Great Stock brought to you

By Calvin Tan Research

This will be another "Chun Chun" Call of Calvin Tan

HIP HIP HOORAY!!!
02/05/2016 17:21
_______________________

Yes, cheaper now. it's time to kasih sai lang. Good luck!

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-12-05 11:33 | Report Abuse

Good News for MCE Holding

After hot selling Perodua Bezza Proton is launching the popular Proton Ertiga!!

Expected to sell well!

As MCE Holding supplies parts to both National Cars MCE Holding should benefit!!

Stead

162 posts

Posted by Stead > 2016-12-06 15:51 | Report Abuse

Wouldn't it more direct to buy MBMR and DRBHcom if Perodua Bezza and Proton Ertiga are selling like hot cake as you claim?

calvintaneng

53,151 posts

Posted by calvintaneng > 2016-12-19 11:52 | Report Abuse

Yes, both mbmr and Drb should do well.

Since Mce hld sells to both Mce hld has twin support!

KINGV

54 posts

Posted by KINGV > 2017-03-29 19:27 | Report Abuse

It is a good start for the shareholders. The company under the new leadership of Dr Goh is able to make money and declare an interim dividend of 1.5 sen which I have looking forward to.

Stead

162 posts

Posted by Stead > 2017-03-29 22:39 | Report Abuse

Hello, company has higher trade payable yet to pay, and now shrinking cash balance, and they also need funding for hospital project, where the hell money to pay shareholders?

Stead

162 posts

Posted by Stead > 2017-03-29 22:40 | Report Abuse

Pay you peanut and hope you buy their story and sell their stock to you.

calvintaneng

53,151 posts

Posted by calvintaneng > 2017-03-30 09:26 | Report Abuse

Stead,

Mce holding got very good yardsticks

1. It has high Nta.
2. It pays dividend
3. It has contract with both Proton and Perodua.
4. Car sales expected to pick up this year.
5. Riding on Proton Mce holdings will even do more business when FSP injects CASH into Drb's Proton for export into 10 Asean Nations.

So the expansion of Proton jv with FSP will bring more business for Mce holdings

Stead

162 posts

Posted by Stead > 2017-03-30 19:49 | Report Abuse

Calvin, i love your positiveness. But too many factors outside the control of board. I am not too confident about their execution. Some more the executive director has stepped down from the board... how la?

Stead

162 posts

Posted by Stead > 2017-03-31 15:53 | Report Abuse

If change of shareholder happen to Proton, will there still use MCE products? Vice versa, will the new shareholder give MCE more jobs to do and benefit MCE in the long run? Very hard to say.

Stead

162 posts

Posted by Stead > 2017-03-31 15:54 | Report Abuse

Personally I wish them not to develop the hospital and concentrate the business of automotive. Sell the land near SP Setia Conventional Centre and SP Setia mall for handsome profit and use the proceeds to develop the biz of automotive, i.e. Bluetooth technology, LED signal lights, reverse camera etc.

KINGV

54 posts

Posted by KINGV > 2017-04-20 21:01 | Report Abuse

For the information of MCE holdings shareholders, according to MAA in total 53,717 sales units(passenger and commercial)were registered in March 2017,up 11,262 units or 26.5% from February 2017.The association expects April sales to continue at the level set last month(hat is March 2017)due to the continuation of "aggressive promotional activities." You can google to obtain this information.

KINGV

54 posts

Posted by KINGV > 2017-05-24 21:54 | Report Abuse

Please refer to these two webpages for information that has relevance to MCE Holdings. 1. http://www.thestar.com.my/business/business-news/2017/05/24/drb-hicom-to-sell-49pt9pct-in-proton-to-geely-holding/
2. www.freemalaysiatoday.com/category/nation/2017/05/24/govt-to-reimburse rm1-1-billion-rd-money to proton/

Stead

162 posts

Posted by Stead > 2017-09-12 20:59 | Report Abuse

Secure Boyue contract!!

Automan

2 posts

Posted by Automan > 2017-10-17 17:45 | Report Abuse

As far I know, the Geely only need the facility of Proton (showroom, part center and service center), which they can immediately sell their car in Malaysia. As this car was fully developed in China, personally I don't think the part price offer by Malaysia parts maker can match. This response to Stead's comment, will "new" Proton give more job to local supplier? For Multico, it need a cutting edge product which not only impress Proton but also other car maker in Malaysia (as well as in overseas). This is the only way Multico can remain strong and grow steadily in automotive industry especially surrounded by majority Japanese influenced car makers.

5125

26 posts

Posted by 5125 > 2017-11-01 13:43 | Report Abuse

One day during the lifetime of PANTECH-WA, WB price will surpass this MCEHLDG.
When MCEHLDG become 88 sen in some future, this PANTECH-WA/WB will be RM 1.00

5125

26 posts

Posted by 5125 > 2017-11-03 21:15 | Report Abuse

Still 80 sen? one day PANTECH-WB will surpass you

5125

26 posts

Posted by 5125 > 2017-11-03 21:16 | Report Abuse

go go power ranger

4B4B

7 posts

Posted by 4B4B > 2017-12-16 18:10 | Report Abuse

switch iiniix

KINGV

54 posts

Posted by KINGV > 2017-12-20 20:15 | Report Abuse

Decent earnings of 1.8 sen under difficult operating conditions for the latest quarter. One salient feature is that the cash holdings has increased from 13 million ringgit to 20 million ringgit. This is equivalent to 45 sen per share. The increased cash holdings is largely accounted for by changes in receivables and payables. Anyway I prefer a larger cash holdings to a larger receivables under current economic conditions. Borrowings has been slowly decreasing to the current level of 2.5 million ringgit which is negligible. The company should be able to pay a decent dividend assuming the earnings is there.

Stead

162 posts

Posted by Stead > 2017-12-25 11:59 | Report Abuse

@Automan based on your knowledge in this industry, if the whole car, parts and engine of Proton is all imported from China, can it still be considered National Car? Will the new SUV model be taxed as the same like Honda HRV or Mazda CX5 then?

KINGV

54 posts

Posted by KINGV > 2018-01-12 22:42 | Report Abuse

For those who were unable to attend the recent AGM and yet interested to know what transpired at the meeting ( especially the developments with Geely),you can go to the company's website under the heading Q&A Summary-20 December 2017 (Investor Relations). I must give credit to the new management for keeping the shareholders who were unable to attend informed.

Stead

162 posts

Posted by Stead > 2018-01-18 22:29 | Report Abuse

Kudos to management for posting the questions and answers and thank you for shareholders who attended asked relevant questions

Stead

162 posts

Posted by Stead > 2018-02-14 15:16 | Report Abuse

Wasted 28 mil into an "investment property" which should be utilized to build more plant to strengthen their position as preferred vendor to the automotive companies.

A4a4

3 posts

Posted by A4a4 > 2018-02-15 21:37 | Report Abuse

Request an EGM to drop the plan for hospital/health care center

Stead

162 posts

Posted by Stead > 2018-02-21 09:42 | Report Abuse

It will be better to update Bursa and Securities Commission that the Board did not fulfil what they set up to fulfil in their circular to shareholder to build hospital.

Posted by Go_Go_Goh > 2018-02-22 02:14 | Report Abuse

Should read as to ABANDON the plan for hospital.
Wait few years when the price is good, sell the land, and return the profit to shareholders.

Because the company does not have competaitve advantage to diversify into hospital.
Better ABANDON the plan.

Posted by Go_Go_Goh > 2018-02-22 02:15 | Report Abuse

Or split into TWO ENTITY for MCE
. Just like SIME split into 3 of them

Posted by Go_Go_Goh > 2018-02-22 02:55 | Report Abuse

or split Hospital Project into seperate Company Entity and list them in LEAP market
with stock code 03004,03005, 03006 or etc

Stead

162 posts

Posted by Stead > 2018-02-26 18:00 | Report Abuse

@Go_Go_Goh, are you related to the Managing Director, Dr. Goh? ha ha.

Dun rope in shareholder to waste the opportunity cost in land. Focus on ROE. Get the Act together to improve the core competencies in automotive electronics parts supply.

Ayamce

7 posts

Posted by Ayamce > 2018-03-28 01:00 | Report Abuse

Now, confirmed Proton still award the company project.

RM 62 Mil for 10 years
RM 6.2 mil 1 year

Each year RM 1.55 Million Expected Revenue (ALMOST MEANS NOTHING
Profit leh, now tiba-tiba FLAT PROFIT ! !

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