MAYBULK (5077): Financial Annual Reports

Re-deployed the capital released by 7-dividend-earning PBA & 5-dividend earning KPS into more of an investment that will give me yet another bumper dividend, this time well before Christmas!🤗

2023-11-09 09:56

newbie9893

buy call... Transportation & Logistics will be the next theme to play..trust me

2023-12-21 15:24

DividendGuy67

Pity. This company is no longer the same company as it was 10-18 years ago.
Last annual report showed it only has 3 vessels left. Customer concentration risks are high.
Market cap is only RM305 million - a small company, no longer a shade of what it was 10-18 years ago.

Last Balance sheet showed 19+ sen cash. NTA 52 sen. Trading at 30.5 sen, so, undervalued by P/NTA basis and interesting.
However, business appears fairly valued (?). My estimate of 1 year EPS is around 1.2 sen. Excluding cash, the business is available for sale at 30.5 sen - 19 sen = 11.5 sen i.e. P/E of < 10, which is very fair for the future earnings from the 3 vessels.
Total cash is around 190 million + meaning they can't scale / grow their business in the future - if they use the entire 190 million to buy 2-3 vessels, that cash is gone.
If they pay out the 190 million + cash as dividends, market is going to drop down ex-div. We already seen that market is pricing fairly - on the last ex-div date, price fell 1.5 sen, exactly equal to the dividend paid out. At this juncture, this is now a penny stock with little upside / downside prospect.

It's not clear to me what happened to MAYBULK. I haven't monitored for over a decade and suddenly noticed this business is nothing like the business that it was 10-18 years ago. It looks to me this company is now ceasing / substantially reducing market's interest.

If you are a Book Value investor and are very patient, perhaps accumulating at low prices and hoping for a price spike to sell out may work out, but this can test even the most patient investors. Keep such plays a small % of one's capital.

For me, my rule is that the dividends must be funded by a % of earnings. If EPS is 1.2 sen and DPS is 1 sen, that's 3.3% of 30 sen price which is similar to FD rates and doesn't beat EPF, so, I'll pass. Sure, I'll grant that MAYBULK might use some of its cash to enhance the DPS to be larger than 1 sen, however, it will reduce its cash and limits its future ability to grow its fleets i.e. the more cash it distributes as dividends, the less chance it can grow its business in the future.

Just documenting my thoughts here for my own future reference to remind me to pass this trade.

2023-12-29 01:23

newbie9893

buy call.............time to fly..

2024-01-04 11:24

sold at 33.5sen

2024-01-09 14:53

knchan2001

Maybulk is my 4th Gem

History of Maybulk
2Ys & Goh bot fr Robert Kuok, while stock @ 0.54 in 2022 April.
2Ys sold to Goh @0.425 a year after.

Core biz:
Shipping, profit margin 20－25%. Biz nature is a CYCLE biz.

Latest exercises:
~Capital reduction on 23Q3
~Venturing into shelving and storage biz, with profit margin ~13%
~Ship sale at 140m on Nov 2023, which will be in 23Q4 (estimate on end of February)

Attractive Points:
~capital reduction, which will turn Maybulk to new reborn company from accounting stabd point of view
~After ship disposal, balance ships has long term orders, which will generate stable income
~potential spwcial dividend of 0.10
~Dividend payout ~100% @0.01 with the yield 3% @0.33
~NTA 0.52
~almost zero debt, 1m
~Cash
cash 29m + deposit 162m , + ship sale deal 140m, which translate into 330m, if no loss no gain for coming qtr. this is talking about 0.33 cash per share, which is below the current price 0.325
~Value relization theme
~Estimate normal annual Net Profit 5－10m, EPS 0.005－0.01. If value the biz at PE 10, this translate into 0.10 for current biz

Target Buy Price:
Target Sell Price:
=cash 0.33 + current biz value 0.10 + potential special dividend 0.10
= 0.53

Report is prepared by Little Kang on 240115

2024-01-16 09:03

Good analysis...that's why I dare to UP my wager to 134,000+ shares...on their likely rising back to 50+c !🚢

2024-01-16 09:09

knchan2001

good

2024-01-17 06:22

bought back at 31sen

2024-01-22 09:58

sold back at 32-32.5sen

2024-01-26 15:14

come on MB, break the 33.5 barrier

2024-01-29 09:52

next resistance 34.5 and 38

2024-01-29 10:15

bullrun2025

No movement at all

2024-02-08 18:25

TY to the dum b fuggs who sold down to 31c....managed to buy more to reach 136,600 shares.

2024-02-22 09:33

0.295

2024-03-27 12:08

ivanlau

conventional vessel charter rate keep increasing, it is good news for Maybulk, 0.315 consider undervalue now .......

2024-05-09 18:54

Dear Shareholders,
We wish to inform that the Circular in relation to the following proposals dated 10 May 2024 is available at www.maybulk.com.my for your preview:
(i) Proposed Share Buy-Back Authority of up to 10% of the total number of issued shares of the Company; and

(ii) Proposed Exemption under subparagraph 4.15(1) of the Rules on Take-overs, Mergers and Compulsory Acquisition to Dato' Goh Cheng Huat and person acting in concert with him from the obligation to undertake a Mandatory Take-Over Offer for all the remaining ordinary shares in Maybulk not already owned by them arising from the purchase by Maybulk of its own shares pursuant to the proposed Share Buy-Back Authority.
If you need a copy of the printed Circular to Shareholders or should you require any assistance on the above, kindly send the request to enquiries@maybulk.com.my

2024-05-10 18:07

lck1300

only fleet and signed long term contract , that is why share price cannot go up eventhough now freight price is sky rocket now ,i guess management dint expected that , anyway , the currency exchange rate cause the lose , will keep in watchlist this under value stock , sell the ship and see what is the management next move to invest to generate good return in other thing....

2024-06-05 12:31

Bull13

Cash rich co. Logistics business very profitable based on very high freight rates

2024-06-10 10:23

huat. 0.50 coming soon?

i'm looking into this counter. will be providing my thoughts on this soon. in the short and medium will be positive.

2024-06-10 16:48

https://bit.ly/maybulk

https://klse.i3investor.com/web/blog/detail/financeforall/2024-06-12-story-h-159700554-Catching_the_Next_Wave_Why_Maybulk_Could_Be_Your_Ticket_to_Short_Term_G

Target Price : 0.64 to 0.65

Lets go!!!!

2024-06-12 00:49

Albukhary

Brother @Alex_Kho, please don't simply create article that can misleading investor ya.

MAYBULK has already sold most of its vessel, now left only 1 vessel.
And this vessel has been chartered to customer at fixed rate long term contract, so the fluctuation in shipping rate will not have impact on MAYBULK.

Technically, MAYBULK is no longer a shipping / Logistic company, now its main business is manufacturing of the steel racking system.

2024-06-12 01:31

Albukhary

Here are the extraction from latest QR:-

Revenue and profit from the shipping bulkers segment is expected to be stable throughout the year 2024 as the only remaining vessel, Alam Kuasa, is under long-term contract at fixed contracted rate subject to bunker price adjustments and will not be affected by open market
charter rate volatility. However, the results of the coming quarter will be affected by dry docking of the vessel for scheduled maintenance.

2024-06-12 01:33

Albukhary

Only 1 vessel, Alam Kuasa.
And take note that for the coming quarter, it has been schedule for dry docking, so revenue will drop due to the dry docking.

2024-06-12 01:34

thanks for the comment. i did mention is a short term thing to capitalise the on-going conflict in the middle east that is sending frieght rate soaring.

2024-06-12 10:43

Note:
Higher Risk: With higher potential returns come higher risks. Maybulk’s stock is more volatile, meaning its price can swing more dramatically. This is not a “set it and forget it” kind of stock — it requires active monitoring.

2024-06-12 10:44

Datokim

Start collecting before this giant ship moving North!!

2024-07-03 10:55

With the co's latest reported net cash, it can mop up ALL of its free-float of 540 mil shares with $16.5 mil left to spare...and has already bought up 13.277 mil shares since August.

2 months ago

Stocks slipped Tuesday as Wall Street took profits coming off an unusually strong month and quarter and as traders eyed what appeared to be an escalating situation in the Middle East.

1 month ago

They're mopping up lot of shares every single day since Aug 22

1 month ago

2.5 months of mopping every single day ... and people are still happily selling.

3 weeks ago