Wednesday, November 26, 2014

MFCB ... Re Rating Catalyst From 256MW Hydropower Project.

It is trading at a price to book of 0.8 times and trailing 12 month PER of 8.1 times.

Its net cash stood at rm110 million plus some rm68 million in quoted shares at end June 2014.

Its strong balance sheet and recurring income from the power generation business should support its future dividends.

About 69% of its pre tax earnings were derived from power generation. It partially owns and operates a 83MW coal fired heat and power plant in Shaoxing, China as well as a 36MW diesel plant in Tawau, Sabah. The PPAs for these projects are set to expire in 2017 to 2018.

A major re rating catalyst could come from the 256MW Don Sahong hydropower project in Laos. The project estimated to cost rm1.5 billion is slated for completion in 2019. It would replace the loss of income from the above mentioned projects a(if their concessions are not extended) and more …

The resources arm accounted for roughly 14% of pre tax profit in 2013. This encompasses quarrying of limestone, manufacturing and trading of calcium carbonate powder, lime based products and bricks.

It is one of Malaysia’s largest producers of lime products.

It owns investment properties, primarily PJ8 in PJ, worth come rm121 million from which the company earns recurring rental income. It has also diversified into property development.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.