Posted by hihihaha > 2013-10-02 14:53 | Report Abuse

http://research.maybank-ib.com/pdf/document/MPHB_Capital_initiation_20131002_MKE_5118.pdf

Posted by cockroach > 2013-10-02 15:09 | Report Abuse

good potential stock, can keep for long term.

Posted by novandjan > 2013-10-02 16:43 | Report Abuse

1.62

Posted by imoogi99 > 2013-10-02 16:54 | Report Abuse

wow....good closing and good volume. It is now free flow up until it decided to stop or come down.

Posted by member41 > 2013-10-02 17:04 | Report Abuse

land in bk bintang worth alot... near times sq... and the johor land can used for third bridge??? buy buy

Posted by soows8469 > 2013-10-02 17:14 | Report Abuse

Keep! 1.70 soon

Posted by kelvinongbk > 2013-10-02 17:21 | Report Abuse

UOB TP for this share is at RM2.38 with 20% discount of RNAV of RM2.98 / Share...more up side...;oP

Posted by together8 > 2013-10-02 18:57 | Report Abuse

didnt spot this gem until midway up...

Posted by venton > 2013-10-02 20:54 | Report Abuse

Hi kelvinongbk, may i know where to get the UOB report?

Posted by KAQ4468 > 2013-10-02 21:20 | Report Abuse

Maybank report today is justification why i change my portfolio from SKPETRO to MPHB CAP 2 months ago. Now with foreign investor already step in and local traders start viewing this undervalued counter, it will be "Gold Mines" . Happy trading to all. For anyone who acquired @ rm 1.30 to rm 1.35 early last month, that will be the lowest price ever for MPHB CAP.

Posted by member41 > 2013-10-02 21:29 | Report Abuse

Haha also got those former mphb holder who buy for RM1 during demerger.

Posted by OSWALD > 2013-10-02 22:12 | Report Abuse

Ya, one of them is patient me.

Posted by kelvinongbk > 2013-10-02 22:28 | Report Abuse

Got it the report from my broker few days back

Posted by cockroach > 2013-10-03 12:00 | Report Abuse

aiiyooo~! drop back.

Posted by JimYeoh > 2013-10-03 14:38 | Report Abuse

no support..

Posted by kelvinongbk > 2013-10-03 15:08 | Report Abuse

those selling is playing on short term...have to keep for longer term...

Posted by gaomin > 2013-10-03 15:18 | Report Abuse

I am a new member here. Bought some at RM1.41 but haven't sold yet . Good to read all u guys' comments . Yes may be need to be patient .

Posted by fibonacci > 2013-10-03 15:27 | Report Abuse

good fundamentals, current book value of rm1.47; keep 1 year - return is a win!

Posted by kelvinongbk > 2013-10-03 16:07 | Report Abuse

give me your email address and I will sent to you..it's in pdf format

Posted by kelvinongbk > 2013-10-03 16:24 | Report Abuse

tried to copy the whole word file but too many characters...cannot post comment

Posted by kelvinongbk > 2013-10-03 16:25 | Report Abuse

MPHB Capital Berhad (MPHB MK) BUY
Price/Tgt: RM1.46/2.38 Mkt Cap: US$322.4m 3-mth Avg Val: US$1.5m 1-Yr Hi/Lo: RM1.57/1.30
Revealing its true value
Analysts: Vincent Khoo, CFA / Yeoh Bit Kun Tel: (603) 2147 1998 / 1971
We initiate coverage with a BUY and a target price of RM2.38, based on a 20% discount to our RNAV of RM2.98/share. Key re-rating events could emerge that would allow MPHB to monetise or unlock its under-appreciated assets estimated to be worth RM500m (48% of market cap) in the next 12 months and potentially >RM1b in the next two years.

Investment Highlights
· Enriched by cash monetisation exercises. MPHB Capital (MPHB) could see cash monetisation exercises, such as the recent sale of its Balik Pulau landbank at a surprisingly lucrative RM226m (or RM25psf). Within the next few months through to 2015, new event milestones could emerge to enrich MPHB, including an outright sale of properties, injecting prized landbank into a new JV, a maiden property launch at its existing JV with Bandar Raya Development (BRDB), and a favourable price discovery of its Pengerang land that was compulsorily acquired. It is also conceivable that it would eventually rope in foreign strategic shareholders for its insurance business to add value to its existing business, which we conservatively value at RM504m or RM0.70/share.
· Transforming into a property-centric company. We believe MPHB would be much more active in directly or indirectly participating in property development over time. The timing of its entry, which should involve landbanking activities, may be fairly ideal by then as land prices increase.
· In good stead to offer attractive dividend yields. Meanwhile, the company would be in a strong position to reward shareholders with attractive dividends, given its estimated cash hoard of RM0.36/share (excluding the Balik Pulau land sale proceeds).

Posted by kelvinongbk > 2013-10-03 16:27 | Report Abuse

· We value MPHB at RM2.38, based on a 20% discount to our RNAV of RM2.98/share. Our target price implies 0.8x 2014F P/B, deemed undemanding, given its ample opportunities to monetise its prized assets and potential new JVs which may transform MPHB into a purer property company.
· Demerging exercise to unlock value. Prior to a spin-off corporate exercise and a separate listing in 28 Jun 13, MPHB was part of conglomerate Multi-Purpose Holdings. To unlock the value of its non-gaming assets, Multi-Purpose Holdings demerged its gaming and non-gaming businesses. Post corporate exercise and a name-change, MPHB’s principal activities now include general insurance, property investment, hospitality and credit businesses while Magnum (MAG MK) operates the number forecasting business.
· In the midst of unlocking significant values… We foresee MPHB monetising or unlocking more than RM500m (48% of market cap) worth of assets in the next 12 months, and >RM1b in the next two years, via a) the outright sales of its assets, b) JV development with BRDB, and c) the redevelopment of existing properties.
· …starting with the disposal of its Balik Pulau land at pleasantly surprising values. On 21 Aug 13, MPHB sold its 208-acre Balik Pulau land for RM226m (or RM25psf). MPHB is expected to recognise a disposal gain of RM194m in 1Q14, based on the land’s book value of only RM32m. The buyer, Twin Universal Sdn Bhd, paid a forfeitable deposit of RM22.6m and the balance of RM203m would have to be paid by Feb 14. (Note: The buyer has an option to extend the balance payment deadline by 6 months provided they pay another 10% of the total purchase consideration in Feb 14 and 8% interest p.a. until the expiry of the extended completion date)
· More property sales likely. Currently, MPHB operates two hotels - Hotel Flamingo by the beach in Penang and Hotel Flamingo by the lake in Ampang. These two hotels contribute about RM10m EBIT annually. We understand MPHB may consider selling Hotel Flamingo by the beach, which carries a book value of RM45m. We reckon this 280-room, 4-star hotel could fetch RM150m, translating into a gain of RM105m.

Posted by kelvinongbk > 2013-10-03 16:29 | Report Abuse

· Development of selected properties to commence in 2014. These include the redevelopment of Hotel Flamingo in Ampang and the maiden property launch by its JV with BRDB. Injecting the hotel into a planned integrated property development could significantly enhance our estimated market value of RM90m (book value: RM36.6m) for this property. It also appears ripe to realise good value at the current 265-acre property in Rawang, judging from Mah Sing’s well-received M Residence project (first launched in Apr 12) in the neighbouring area, with all phases seeing take-up rates of over 90%. As such, there could be significant value creation from a planned property launch in 2014, above our conservative land-only valuation of RM36m (based on RM14psf and MPHB’s 22% stake in the JV). However, MPHB has not yet revealed its development plans.
· Closer look into MPHB’s JV with BRDB. In Apr 11, MPHB signed three JVs with BRDB to develop its landbank in Rawang (Selangor), Gombak (Selangor) and Teluk Tempoyak (Penang), with a total GDV of RM4,204m. MPHB has a 22% share of the total GDV (Figure 17 and Figure 18).
· Potential compensation on Pengerang land disposal. To recap, MPHB’s 2,800 acre of landbank in Pengerang Johor was compulsorily acquired by the Johor state in 4Q12 as the land was earmarked to be part of Petronas’s Petrochemicals Integrated Development (RAPID). The acquisition price was only RM0.93psf, well below the valuation of many transactions in adjacent areas that were reportedly transacted above RM5.00psf. We understand MPHB has filed for a price discovery court hearing for the land. A favourable judgement could mean a big win for MPHB (eg a RM3.00psf market valuation translates into a compensation of RM252m, or RM0.35/share), which we have not factored into our target price. However, we note a potential compensation would only materialise in the medium term given the likely numerous hearing processes before conclusion.
· MPIB on the lookout for value-enhancing foreign strategic shareholders. Since the liberalisation of the insurance industry in 2009, a number of foreign insurance companies have acquired or merged with local companies, with acquisitions of general insurers valued at an average of 2.2x P/B (Figure 4). MPHB’s 100%-owned insurance arm, Multi-Purpose Insurance (MPIB) is keen to rope in foreign strategic investors, to help enhance its modest 3.5% (or RM13.6b) and 3.2% (or RM12.6b) share of the industry’s gross direct premiums in 2011 and 2010 respectively. We conservatively estimate MPIB could be worth RM504m (or RM0.70/share), based on 1.8x P/B, which implies a forward 2014 PE of 9.8x.
· The new FSA may speed up partial disposal of MPIB. To recap, Parliament has passed the new Financial Services Act, 2013 (FSA), which will consolidate the regulation of all financial services companie

Posted by kelvinongbk > 2013-10-03 16:31 | Report Abuse

The new FSA may speed up partial disposal of MPIB. To recap, Parliament has passed the new Financial Services Act, 2013 (FSA), which will consolidate the regulation of all financial services companies which were previously governed by separate Acts. Under the new FSA, MPHB as a company which holds >50% of an insurance company, will be required to apply for financial holding company (FHC) status. Once designated as an FHC, MPHB would not be permitted to carry on any business other than the business of holding investments in corporations which are engaged in financial services, unless approved by BNM. With such a scenario, we believe that MPHB would highly likely pare down its stake in MPIB to below 50% (in theory, it can lower its stake to 30% given today’s maximum 70% foreign ownership cap) to avoid the FHC status which will prohibit the company from operating its property development division.
· Steady earnings outlook… Meanwhile, MPHB is expected to deliver modest growth in the intermediate term, reflecting high single-digit growth at MPIB and flattish earnings at the property division. In 2Q13, MPHB reported revenue of RM80.0m and pre-tax profit (PBT) of RM16.5m. Its insurance arm was the main income generator, contributing 87.9% and 83.7% of revenue and PBT respectively. For FY13, MPHB only has three effective quarters as the company did not consolidate 1Q13 earnings into its financial statements.
· …with the general insurance arm being the main income source. While the property segment is expected to drive MPHB’s growth in the medium term, MPIB accounted for 76% and 69% of the group’s FY12 revenue and operating profit respectively. Meanwhile, the hospitality and property investment segments contributed 23% and 27% of group revenue and operating profit, mainly derived from the hotels (Hotel Flamingo by the beach in Penang and Hotel Flamingo by the lake in Selangor). We expect the JV contribution to kick in by 2016, assuming MPHB launches its Rawang project in 2014.
· MPIB’s earnings prospects should improve in 2016 when product pricing within the general insurance company is scheduled to be de-tariffed. To recap, in 2011, Bank Negara announced it will revise the existing tariff framework, in the aim of a full de-tariffication by 2016. Pricing liberalisation would be most meaningful to the motor segment as all automobile insurers have been largely loss-making as policy rates have not been allowed to be raised to offset continuing large claims. The motor segment is the second-largest contributor to MPIB, accounting for 25% of MPIB’s total gross premiums in 2012.
· An emerging property player. MPHB’s current strategy is to grow its property earnings via JVs as the group is constrained by hefty capital requirements imposed on financial institution-holding companies. However, MPHB could eventually transform into a full-fledged property player once it sufficiently monetises its assets, or after disposing a majority stake of MPIB.

Valuation/Recommendation
· Initiate coverage with a BUY and target price of RM2.38 , or 0.8x FY14F PB and 16.3x FY14F PE. Our target price assumes a 20% discount to our sum-of-the-parts (SOTP) valuation of RM2.98/share, and implies a price upside of 63%.

Posted by kelvinongbk > 2013-10-03 16:31 | Report Abuse

Sorry for the spam...

Posted by member41 > 2013-10-03 16:44 | Report Abuse

spam is worth it if it hits 2.38 :)

Posted by janetlai > 2013-10-03 18:21 | Report Abuse

yesterday am try to go in at 1.50 but unable, so pls advise wht price should I move in? somebody help to advise
thanks

Posted by JCool > 2013-10-03 18:32 | Report Abuse

adoi.... mbb came out wit valuation n recommendation..... for director to sell at 1.61????

Posted by venton > 2013-10-03 19:39 | Report Abuse

Yeah, director move is not convincing :p

Posted by member41 > 2013-10-03 19:42 | Report Abuse

As long as Tan Sri Upatkoon still holding is ok.

Posted by cockroach > 2013-10-03 22:35 | Report Abuse

price still cheap... 1.60 also can enter...remember it will hit up 2.00

Posted by janetlai > 2013-10-04 13:33 | Report Abuse

tks for all, will call remisier now

Posted by sephiroth > 2013-10-04 13:54 | Report Abuse

why did maybank ib did not apply any discount to sop tp , usually 20-30% discount to 2.12

Posted by janetlai > 2013-10-04 15:06 | Report Abuse

i going at 1.58

Posted by cockroach > 2013-10-04 15:29 | Report Abuse

keep it. Next month got good announcement on it. I buy again at 1.57

Posted by cockroach > 2013-10-04 15:48 | Report Abuse

Don't worry. End of this year this company book value will go up to 1.78 per share.

Posted by fibonacci > 2013-10-04 15:50 | Report Abuse

looking at the company performance, it's book value had been increasing year by year - so i concur to cockroach; altho i would not know the exact value would be rm1.78

Posted by jordanravindran > 2013-10-04 15:51 | Report Abuse

paper shuffling to give you the good book value. No thanks!

Posted by kelvinongbk > 2013-10-04 16:43 | Report Abuse

buying interest is back...time to hold on to the prices and push the price up...

Posted by Peter Lee > 2013-10-04 16:49 | Report Abuse

usa problem be alert

Posted by gweilo > 2013-10-04 19:22 | Report Abuse

i heard from broker analyst share value is 3 RM so i will hold even if market crashes due to usa dollar collapse.

Posted by imoogi99 > 2013-10-04 20:58 | Report Abuse

Wow....suddenly more people found this hidden gem. Good....more to come.

Posted by Sapphire > 2013-10-05 15:10 | Report Abuse

us impossible collapse

Posted by kelvinongbk > 2013-10-07 09:27 | Report Abuse

Good volumes in the morning...time to go for TP 2.38....

Posted by venton > 2013-10-07 12:50 | Report Abuse

wow, the buy Q at 1.60...

Posted by imoogi99 > 2013-10-07 15:39 | Report Abuse

Is 1.62 a tough nut to crack?

Posted by ProfitMan > 2013-10-07 16:33 | Report Abuse

Chart wise, the gap up is a good sign of another bullish rise. If the immediate resistance of 1.62 is taken out, it will scale higher to test new highs.

Posted by kelvinongbk > 2013-10-07 16:36 | Report Abuse

Come on Huat ah!

Posted by gweilo > 2013-10-07 18:41 | Report Abuse

goodie goodie !!!

Posted by KAQ4468 > 2013-10-07 22:14 | Report Abuse

price call for RM 2.3
with current undervalued price @ RM1.60...will put all the money in..
based on discussion with my RHB Investment Trading House indicated RM 3.00 price tag is TP for next 12 months..
Happy Trading for all of you..