MUDAJAYA GROUP BHD
KLSE (MYR): MUDAJYA (5085)
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Last Price
0.12
Today's Change
0.00 (0.00%)
Day's Change
0.115 - 0.12
Trading Volume
356,700
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Discussions
22 people like this. Showing 50 of 10,336 comments
1.Several years ago major shareholders of Mudajaya sold out and a Taiwanese tycoon called Jerry acquired a hugely substantial block of shares and embarked on a journey to reorganize, restrategize, refocus and revive the company.
2. Since than it has made many attempts to energize the company to improve the business operation, generate cash flow, strength of balance sheet, settle some debts and reduce its gearing,
3 The company has several years ago undertaken a fund raising exercise to pay debts and improve working capital.
4 With the new management, there had been some improvements in some quarters announcement with raising revenue and contribution. However, revenue and profit were erratic and inconsistent.
5. Over the years it has undertaken a massive geographical expansion and penetrated into china by acquiring Real Jade a cement company.
6 The acquisition cost for Real Jade was HK400m or about RM240m. Real Jade has begun and managed to contribute in some small way to the bottom line of Mudajaya.
7 Just as the market begins to see a green shoot of recovery in mudajaya, it announced a shocking news a week ago.
8. Apparently, the company is still owing the vendor of real jade RM119M and with added interest payment has ballooned to 127m. Mudajaya is having a tough time and facing a great challenge to repay the remaining acquisition cost.
9 Hence, it has announced a corporate exercise outlining a proposed variation and propose right issue with warrants to address the acquisition cost and debts problems
10 In the proposal, the seller has agreed to accept RM72m in cash and the remaining Rm55m in shares with consideration price at 22 sen or 250m new shares.
11. The company will offer 1 right issue for every 4 share held at an issued price of 17sen. For every right share subscribed, one would rewarded with a free warrant. The conversion price is 22 sen
12. In general, corporate exercise of fund raising through right issue is bad news. The fact that the fund raise is used to pay off debts makes it worse.
However, since its announcement, share price surprisingly still manage to hold on resiliently.
13.Mudajaya has issued share capital of 1875m. It will issue 531m right shares. it will also issue 250m consideration share to the vendor. The vendor will also subscribe 62.5m right shares and upon conversion of new warrant ,531m shares will be added and the total enlarged share capital would ballooned to 1875+531+250++62.5+531 =2999m
14 The enlarged capital would have a severely huge burden and seriously damaging to the EPS and the future share price.
15. The cement industry and business in china and to some extend Real Jade could possibly affected by the negative sentiment in the property and construction sector caused by Evergrander , country garden.
16. Mudajaya closed at 16,5sen last Friday. The reason why it did not fall much could partly because the right share has been priced at 17sen. If it allowed to fall to far below 17sen , than the right share will not be attractive. Existing shareholders will not subscribe to the right shares. The fund raising exercise will fail. Vendor will not be paid and there will be consequences.
17. This is the recent development in Mudajaya.
The company is still facing issues and challenges.
Can Jerry pull through? Would you stay invested. The choice is yours.
18. Hope it helps. Happy trading
2/12/23
2023-12-02 23:11
1.Mudajaya is still continuing on its long term decline. There is no light at the end of the tunnel.
2.It is still struggling with its challenge to raise fund to pay off debts.
3. In the end the enlarged share capital could possibly balloon to 3b shares. It will hurt the EPS and hence the long term share price.
4. Investors would have to endure some scorching heat and brutal cold. The right issue will dampen company sentiment and share price.
5. all the best
Trade wisely
11/12/23
2023-12-11 11:46
Do not be overly discouraged. Profit from the lesson. Sell out,cut loss and move on.
Best wishes n happy trading
11/12/23
2023-12-11 16:19
Used to be one of my most favourite companies to speculate on. Quite a long time ago, maybe 10 years(?) Had thought about buying some for old times sake. But after reading @trader808's comments here... No need old times lah. Better to speculate on something else.
2024-02-21 12:49
1. The company has some time ago acquired Real Jade a cement company in China for RM240M of which it is still owing Rm119m including interest payment.
2. Mudajaya has a proposal and resolved to undertake a right issue together with free warrant to raise sufficient fund to pay the creditor, Real Jade.
3. The right share has been fixed at 17sen and ever since the share price has tumbled down and for several weeks has been languishing without volume at 13.5sen until this morning.
4. It is not difficult to understand why they must push up the share price to 17sen and slightly beyond in order to attract potential investors to subscribe for the right shares.
5. For any price below 17sen, no one would subscribe to the right shares and the fund raising exercise would fail and the debts will not be paid. There will be implication and consequences.
6. In my opinion, this is the reason for the sudden volume and volatility this morning.
7 There is trading opportunity but the risk is enormous.
You must hit and run to profit from it.
8. I shall refrain.
14/3/24
2024-03-14 22:33
Btw Dear Trader808
where did you get to learn this no.2 infor ha?
mind sharing?
2. Mudajaya has a proposal and resolved to undertake a right issue together with free warrant to raise sufficient fund to pay the creditor, Real Jade.
2024-03-14 22:47
It's already mentioned in the Multiple Proposal announcement.
But seems like no subsequent update on the RI issuance.
2024-03-15 00:11
wah...
poem trader is here
may i know what do think abt Mudajya?
are you buying? at what price?
2024-03-15 12:22
trader808, thanks for the update!
What's the situation of the 4 Fxxking power plants in India?
2024-04-01 10:03
1.Finally the rabbit has come out of the magical hat.
They settle part of the Real Jade acquisition debts by issuing new shares.
2. The amount is 55m and the consideration price is 22sen. Hence, the seller was given 250m new shares.
3. Minority shareholders immediately suffer a proportionate share dilution. In some way they actually help to pay the seller. This also means the company does not have sufficient cash to discharge the acquisition price. Considering the on going situation, it is not surprising that the seller is willing to accept new share as payment and agreed to the consideration price of 22 sen whereas the quoted share prices have been languishing between 13.5sen to 16sen
4 In the coming days, the company will continue to undertake a right issue exercise to raise fund to discharge the remaining debts.
5 You can read about it and find out the details in their circular to shareholders.
6 Until the debts are resolved and the the property and construction industry in China improve and the acquired cement company begins to generate meaningful revenue and profit, one should not be overly excited about M despite it selling at low price.
7 There is a huge difference between low and cheap. Think about it.
8. This is my personal and layman perception of the counter. It is not a recommendation to buy or sell and much less intended to influence you investment decision.
9 Trade wisely
21/6/2024
2 months ago
i don't think anyone will subscript since is no benefit at all. market price is 0.14 which 0.03 less than propose at 0.17 and even free warrant will at 0.05 just a different of 0.02. why take risk .. is mainly for their own internal wayang
1 month ago
Again another case of abusing & manipulating company's funds "https://theedgemalaysia.com/node/717951
1 month ago
1.Trading of rights will begin on 10/7/24 and that is tomorrow. Considering that the right share is priced at 17 sen and the current market price is 14.5 sen, the rights therefore has no intrinsic value.
2. It is worthless. In addition the fund raising exercise is specifically intended to pay off cement factory acquisition debts has further dampened market and investors' interest.
3. On the plus side , the management is addressing the long overdue debts issue. Once this is resolved and when the property and construction industry in China improves and the demand for cement is forthcoming, M company could potentially recover and slowly bounce back.
4. Unfortunately, in the immediate term a V shape bounce back or a significant recovery is not expected.
5 Investment is about efficient allocation of capital resources. There is a difference between price and value. At 15 sen it is a low price but not a cheap price.
Die hard investors, it is time to move out and move on.
6.Mr Columbus. it is not a bad idea to sail out and to conquer new promising and prosperous territories elsewhere in Bursa.
7. Trade wisely.
9/7/2024
1 month ago
After tat the underwriter will hav to support the prc up, otherwise shall dey cry for no tears?
1 month ago
Mudajaya now has 2125m shares. At 12.5sen it has a market capital of RM255m. On 6th of August 531m new shares will be added and the enlarged capital will be 2657m shares.
Therefore the price would be RM255m divided by 2657m shares is 9.5sen theoretically.
2. For those who are attracted by the sweetener of free warrants and opted to pay 17sen for the right shares whereas the mother shares is trading at 12 sen is unwittingly wasteful. It is unthinkable anyone would want to subscribe to the right shares and much less the excess shares. Yet, it happened and is true.
3The warrant has a life span of 3 years. The exercise price is 22 sen. Considering that the share is trading at 12sen it therefore has no intrinsic value,
4 Warrant has 2 price components. The intrinsic value and time value. When market opens on the 6/8/24 it will be interesting to see how much investor would value the warrant with 3 years of time value.
5. It will not be good.
Trade wisely
2/8/24
3 weeks ago
Buy Topglov Xiaoeh. Opportunity come again. Just accumulating, don't wait for the lowest. You will miss it again 🤣
3 weeks ago
Posted by Vincenzo999 > 49 seconds ago | Report Abuse
Buy Topglov Xiaoeh. Opportunity come again. Just accumulating, don't wait for the lowest. You will miss it again 🤣
waiting at 0.795 bro...
是我的不会错过
会错过的不是我的...
3 weeks ago
The power of emotion and sentiment - dangerous to have these when it comes to risking one's capital. But I do have these, unfortunately, no thanks to Mudajaya being one of my favourite counters a decade ago. Still following its price movements despite everything screaming to stay away. And today it closed at the lowest ever 0.11...
Even if one gives it benefit of the doubt and `sangka baik' - that things are better controlled whereby it's being run like a tight ship right now - we still have to take into account the economic and business challenges Mudajaya is facing. If its main business is in China, that's not a good place to be right now regarding anything construction-related. Including the cement manufacturing business. Just last week, China's steel industry has warned about the current tough environment, which will only get worse regarding the weak demand. It's likely the same with cement.
Can't dismiss the possibility that the share price might suddenly go up. Especially if those with vested interests want this to be so, to suit whatever objective they might have. So it's possible to make some quick money. But it's also likely it will continue suffering that "Death by a thousand cuts" - of the share price falling bit by bit. One needs "a bit" of good news to even consider speculating a bit of money in Mudajaya. And this has been lacking thus far.
4 days ago
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This counter still got hope ka? Can someone enlighten me as my cost is RM0.22. Thanks
2023-11-30 14:16