MUHIBAH (5703): Substantial Holder Shares Transactions

The Case For Muhibbah! Exiting Penny Stock Status Soon!

Accumulate on any Weakness! Once Muhibbah exits Penny Stock Status, Muhibbah will be re-rated with more Foreign & Institutional Fund Buyers, soft target 1.25 with TP 1.34!

1Q24 results met expectations Bloomberg: MUHI
● Muhibbah delivered a 1Q24 core net profit of RM5.9m (vs. RM0.5m in 1Q22) which was Market cap: US$153.3m within expectations at 12%/11% of our/Bloomberg consensus’s full-year net profits RM721.2m
We expect earnings momentum to pick up in the coming quarters as it progressively Average daily turnover: US$0.50m recognises its RM2bn orderbook (as at May 24).
● The key 1Q24 highlight was associate profit contribution of RM13.4m (+32% yoy) Current shares o/s 727.0m coming largely from its Cambodia airport concession. This is commendable as 1Q23 Free float: 73.3% had included the Siem Reap airport concession that was surrendered back to the Cambodian government in Oct 23. Its 1Q24 passenger arrivals for the Phnom Penh airport concession (PP) and Silhanoukville airport rose 23% yoy to 1.2m, with China passengers making up 22% of the total in 1Q24 (vs. 15% in 1Q23).
● Its construction division posted an RM8.7m pretax profit in 1Q24 (vs. RM5m in 1Q23). Pretax profit for its crane business in 1Q24 rose 30% yoy to RM19m. Of its RM2bn orderbook, RM1.3bn is from construction and RM0.7bn from cranes. Favelle Favco (FF) announced contract wins of RM39m in May 24, which is a combination of tower and offshore cranes. In late-May 24, FF also announced it has entered into an agreement with an Australian developer to build two 14,000 sqm logistic warehouses on its 46,840 sqm land in Sydney, which should boost recurring income once completed in FY26F.
Light at the end of the tunnel for PP scenario?
● We had highlighted in our 2 May report (link) that its PP will likely see a favourable outcome, even though a new international airport for Phnom Penh, known as Techo International Airport, located in Kandal, is currently under construction and scheduled to start operations in 1H25F, according to Cambodia’s State Secretariat of Civil Aviation (SSCA). We believe Techo International Airport will replace the current Phnom Penh International Airport that is operated by Muhibbah.
● Muhibbah said negotiations with the authorities are progressing well and it will likely receive compensation for the loss of its existing operations of PP (likely at BV) and be engaged to operate the new airport at Kandal. This is because the new airport is being built by a JV between SSCA and the Overseas Cambodia Investment Corporation Price (OCIC), both of whom do not have the expertise to run an airport. An article in the Khmer Absolute Times published in Mar 24 also stated that a favourable result for all parties is expected, based on the government’s win-win policy, but details are sparse presently. Reiterate Add and TP of RM1.34
● We like Muhibbah as a proxy for a recovery in tourist arrivals with its Cambodian airport concessions, while its marine expertise and Petronas fabrication licence should enable it to clinch more Petronas jobs, in our view. Key downside risks are patchy execution track record and higher raw material costs. Re-rating catalysts include better earnings delivery and stronger tourist arrivals in Cambodia.

1 month ago

Morning Friends & Gentlemen! Breakout coming soon once the small block at 0.995 is broken with a Bullish Bursa! Soft target 1.25 with TP 1.34! Accumulate on any weakness!
https://www.cnbc.com/2024/07/15/stock-market-today-live-updates.html

1 month ago

The Block @0.995 already broken! Once Muhibbah exits Penny Stock Status! More Institutional & Foreign Funds will be Buy! More upside coming!

The Edge

KUALA LUMPUR (July 17): Hong Leong Investment Bank (HLIB) Research maintained its 'overweight' rating of the construction sector, and said domestic contract awards jumped 41% year-on-year to RM20.7 billion in the first half of the year (1H2024), driven by data centre (DC) awards.

In a sector update on Wednesday, the research house foresees potential for awards acceleration in 2H2024, driven by long delayed big-ticket infrastructure projects.

It said positive sector sentiment could also come from the finalisation of the Johor-Singapore Special Economic Zone and Budget 2025, as well as structural DC and Johor reinvigoration themes.
https://theedgemalaysia.com/node/719288

1 month ago

Cambodia Airports Passengers Traffic (exclude Siem Reap Airport):
 1H24: +18% Y-Y (Jan-Jun)
 
2023 Full year: 4.031mil passengers 
2022 Full year: 2.010mil passengers  

1 month ago

越南航空公司计划于今年10月27日起开通河内-金边直飞航班。每周一、周三、周五和周日运营四趟往返航。New routes~
https://www.jianhuadaily.com/20240716/247428

1 month ago

Morning Friends & Gentlemen!
With a Bullish Bursa & Dow Jones at Record High, Analysts Recommends a Strong Buy For Muhibbah! Accumulate on any Weakness & let's break the small block at RM1.01!

According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news.
https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/

1 month ago

So far the airport traffic is not impact by the IT crisis.. the daily arrival/departure flights still around the average number as website show.. except small number delay for few hours

1 month ago

ValueMaker

Muhibah's share price hit RM 1.10 on 13th June which is the highest level since Mar 2021.

Subsequently the price has fall sharply to lowest RM 0.925 (-15.9%) in the following week.

Coincidently, the website showing the number of daily arrival flights in Phnom Penh airport also start dropping since the same week.
(big players also refer the same data ?)

Here are some figures for comparison:

23Q4: average 341 arrival flights per week
24Q1: average 356 arrival flights per week (still improving compare Q-Q)
1st Apr - 16th Jun: average 359 arrival flights per week (still improving compare Q1)
BUT then~
17th Jun - 23th Jun (the week after share price hit new high): total 343 arrival flights during the week (start falling)
24th Jun - 30th Jun: total 331 arrival flights during the week (lowest in 2024)

** The share price's movement is highly correlative with the airports' traffic~

Thankfully, the flights number has start rebound (back to average) since beginning of July as:

1st Jul - 7th Jul: total 360 arrival flights during the week
8th Jul - 14th Jul: total 352 arrival flights during the week
15th Jul - 21th Jul: total 365 arrival flights during the week

Hopefully the share price may rebound in tandem with the traffic soon~

** Please take note, the Cambodia's toruist low season used to happen during Q2 & Q3 v.s peak season during Q1 & Q4 !
** If the low season can maintain such number of flights, then Q4 figure will be much much better !!

1 month ago

1 month ago

Nickhew

volume pun x lak

1 month ago

Breakout soon!
https://www.thestar.com.my/business/business-news/2024/07/23/chip-stocks-rebound-ahead-of-megacap-earnings

1 month ago

ValueMaker

柬埔寨三大国际机场客流量同比增长26%
https://www.jianhuadaily.com/20240724/248297

1 month ago

The Case For Muhibbah! Exiting Penny Stock Status Soon!

Accumulate on any Weakness! Muhibbah already reached 1.04 today! Once Muhibbah exits Penny Stock Status, Muhibbah will be re-rated with more Foreign & Institutional Fund Buyers, soft target 1.25 with TP 1.34!

1 month ago

nasgee

soon 110...fasterrr vroomm

1 month ago

Nickhew

u turn lagi, susah

4 weeks ago

penny stock again. ROFL

3 weeks ago

Nickhew

got bad news? drop so heavy

3 weeks ago

kena aim by short seller group (RSS)~

first RSS happened in Apr (around 8k lot) , then no more in MAY & JUN.

this week start again with :
31/7: 7810 lot
30/7: 6765 lot
29/7: 687 lot

3 weeks ago

soon9913

Ming, where to get the RSS list? can share the link?

3 weeks ago

Morning Friends & Gentlemen!
Don't worry too much about short sellers. With not much selling pressure, they will have to cover their short positions sooner or later! Analysts Recommends a Strong Buy For Muhibbah! Just Hold & Accumulate on current Weakness as Infrastructure & Construction is a defensive stock. Breakout will happen as Muhibah is still profitable, once the Budget is announced with goodies for the Construction & Infrastructure sector of which Muhibah is a prime beneficiary!

According to analysts, MUHIBAH price target is 1.27 MYR with a max estimate of 1.34 MYR and a min estimate of 1.20 MYR. Watch MUHIBBAH ENGINEERING (M) BHD stock price chart and keep track of the current situation with MUHIBAH news and stock market news.
https://www.tradingview.com/symbols/MYX-MUHIBAH/forecast/

3 weeks ago

soon9913

All stocks will drop if war starts

3 weeks ago

cut

2 weeks ago

cut what?

2 weeks ago

apple4ver

https://asia.nikkei.com/Business/Transportation/Cambodia-resolves-Phnom-Penh-airport-tensions-with-new-rights-grant
Khek Norinda, a spokesperson for Cambodia Airports, Vinci's local joint venture, told Nikkei Asia that the unit signed a memorandum of agreement with the government in April giving it rights to operate the new Techo Takhmao International Airport

1 week ago

Jerung

Good or no good for Muhibbah @apple4ver?

1 week ago

good or not also doesn't matter coz muhibbah's share remains flat. all depends on the sharks now whether it flies or not.

1 week ago

muhibbah has never been able to regain its strength to pre-covid level. probably will remain like that for a long time to come.

1 week ago

apple4ver

@Jerung, Fundamentally yes. Back in 2018/2019, Cambodia Airport contributed ~RM150m per annum. What this agreement does is to remove one huge overhang over the stock. Total contribution from Cambodia Airport may be much smaller than pre-Covid time but it is still much better than near zero WITHOUT the agreement. And the upside comes from huge capacity of new airport @50m passenger pa when fully developed vs 5m pa from existing airport.

1 week ago

Jerung

Tqvm @apple4ver for your explaination :)

1 week ago

Morning Friends & Gentlemen!
Bursa already up 9 points to 1,657!

@apple4ver Good News Indeed! Accumulate on any weakness!
Target price: Resistance between 0.92~0.99? Once broken with a Bullish Bursa, Soft TP 1.10~1.25 with TP 1.34!

https://asia.nikkei.com/Business/Transportation/Cambodia-resolves-Phnom-Penh-airport-tensions-with-new-rights-grant
Khek Norinda, a spokesperson for Cambodia Airports, Vinci's local joint venture, told Nikkei Asia that the unit signed a memorandum of agreement with the government in April giving it rights to operate the new Techo Takhmao International Airport

CGS International Analysis on Muhibbah Engineering.
Phnom Penh showing signs of strength Consensus ratings*: Buy 3 Hold 1 Sell 0
■ 1Q24 results met expectations, with associate profits from its Cambodia airport concession up 32% yoy despite the sale of Siem Reap in Oct 23.
■ Favelle Favco is winning more crane jobs and beefing up recurring income.
Up/downside: 35.3%
■ Reiterate Add with unchanged SOP-derived TP of RM1.34.
Reuters: MUHI.KL1Q24 results met expectations
Bloomberg: MUHI MK
● Muhibbah delivered a 1Q24 core net profit of RM5.9m (vs. RM0.5m in 1Q22) which was Market cap: US$153.3m within expectations at 12%/11% of our/Bloomberg consensus’s full-year net profits RM721.2m. We expect earnings momentum to pick up in the coming quarters as it progressively
Average daily turnover: US$0.50m recognises its RM2bn orderbook (as at May 24).RM2.35m
● The key 1Q24 highlight was associate profit contribution of RM13.4m (+32% yoy) Current shares o/s 727.0m coming largely from its Cambodia airport concession. This is commendable as 1Q23 had included the Siem Reap airport concession that was surrendered back to the Cambodian government in Oct 23. Its 1Q24 passenger arrivals for the Phnom Penh.
Key financial forecasts
Airport concession (PP) and Silhanoukville airport rose 23% yoy to 1.2m, with China passengers making up 22% of the total in 1Q24 (vs. 15% in 1Q23).
● Its construction division posted an RM8.7m pretax profit in 1Q24 (vs. RM5m in 1Q23). Pretax profit for its crane business in 1Q24 rose 30% yoy to RM19m. Of its RM2bn orderbook, RM1.3bn is from construction and RM0.7bn from cranes. Favelle Favco (FF)announced contract wins of RM39m in May 24, which is a combination of tower and offshore cranes. In late-May 24, FF also announced it has entered into an agreement with an Australian developer to build two 14,000 sqm logistic warehouses on its 46,840 sqm land in Sydney, which should boost recurring income once completed in FY26F.
Light at the end of the tunnel for PP scenario?
● We had highlighted in our 2 May report (link) that its PP will likely see a favourable outcome, even though a new international airport for Phnom Penh, known as Techo International Airport, located in Kandal, is currently under construction and scheduled to start operations in 1H25F, according to Cambodia’s State Secretariat of Civil Aviation (SSCA). We believe Techo International Airport will replace the current Phnom Penh International Airport that is operated by Muhibbah.
● Muhibbah said negotiations with the authorities are progressing well and it will likely receive compensation for the loss of its existing operations of PP (likely at BV) and be engaged to operate the new airport at Kandal. This is because the new airport is being built by a JV between SSCA and the Overseas Cambodia Investment Corporation

Price performance 1M 3M 12M(OCIC), both of whom do not have the expertise to run an airport. An article in the Khmer Times published in Mar 24 also stated that a favourable result for all parties is expected, based on the government’s win-win policy, but details are sparse presently. Reiterate Add and TP of RM1.34
● We like Muhibbah as a proxy for a recovery in tourist arrivals with its Cambodian airport concessions, while its marine expertise and Petronas fabrication licence should enable to clinch more Petronas jobs, in our view. Key downside risks are patchy execution track record and higher raw material costs. Re-rating catalysts include better earnings delivery and stronger tourist arrivals in Cambodia.

5 days ago

Kuantan Marine Hub’s groundbreaking ceremony

4 days ago

Good Morning Friends & Gentlemen!
More Good News From Muhibbah!
Recommendation: Accumulate on any weakness!

Pahang poised to become Malaysia's first comprehensive maritime hub
By Bernama / Bernama
20 Aug 2024, 08:47 pm

Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said the RM2.1 billion project (KMH) which will be a central hub for maritime activities, supporting a range of trade and industrial operations, is expected to make a significant impact on both the local and national economy.

"I guarantee the state government's full cooperation in ensuring the project's success, supported by our political stability. I am confident that Muhibbah Engineering (M) Bhd will deliver this project (KMH) smoothly and successfully,” he said.
https://theedgemalaysia.com/node/723567

4 days ago