The number forecast operators (NFOs) like Magnum have been on a steady recovery since the full lifting of COVID-19 restrictions in FY22. There is potential for Magnum’s revenue to return to its pre-pandemic level, which reached a high of RM2.7bil in 2019.
Additionally, a favourable High Court ruling in July overturning Kedah’s ban on NFO outlets offers much-needed clarity and assurance about their operation, especially in opposition-controlled states.
Lady luck also seems to be smiling on Magnum as there was no gaming tax or sales & services tax (SST) rate hikes in the recent Budget 2025. Those are positive factors for NFOs in Malaysia.
Interestingly, U-Mobile winning the 2nd 5G network bid has a positive spillover on Magnum. Recall that Magnum has a hidden gem in the form of its 6.3% stake in cellphone-network operator U Mobile.
U Mobile hogged the limelight recently after it was selected by MCMC to lead the implementation of the nation’s second 5G network. This win has significantly boosted the appeal of U Mobile’s upcoming IPO, which aims to raise new capital for its network rollout. As such, monetisation of U Mobile stake a key catalyst for Magnum.
Based on consensus forecast, Magnum currently trades at an undemanding valuation of 10.7x FY24 PE and offers 5.5% net dividend yield. U Mobile’s 5G win will likely add credibility to news report suggesting a target IPO valuation of RM9bil-RM10bil, therefore valuing Magnum’s 6.3%-stake at about RM567mil-RM630mil.
Chart | Stock Name | Last | Change | Volume |
---|
Created by zaclim | Nov 04, 2024
Syarikat Takaful Malaysia Keluarga has not been impressively in terms of share price movement. BUt there are opportunities to buy into the recent dip as the counters appear to be heading north.
Created by zaclim | Nov 04, 2024
Global demand for palm oil remains resilient, particularly in key markets such as India, China and Pakistan.
Created by zaclim | Nov 01, 2024
TDM Bhd saw heightened interest in April following a RM5.7bil disposal of Ramsay Sime Darby Health Care, as valuations of private hospital operators in Malaysia was at a new benchmark.
Created by zaclim | Oct 30, 2024
UWC Bhd has lost much ground after touching a year high of RM3.83 last year. The counter has since seen its share price climbing and may just continue its upward momentum.
Created by zaclim | Oct 29, 2024
EP Manufacturing Bhd (EPMB) share price has been languishing in the past year, crashing to year low of 58 sen early September. With its move into vehicle assembly, will this help arrest its decline?
Created by zaclim | Oct 28, 2024
Wasco Bhd touched a year high of RM1.60 in May but succumbed to profit taking, pushing the counter downwards. However, things are looking up for the oil & gas services provider.
Created by zaclim | Oct 24, 2024
Agmo Holdings Bhd has been garnering strong shareholders interest given its exposure to e-invoicing and clean energy businesses. This should provide impetus for the counter to trend higher
Created by zaclim | Oct 24, 2024
GenM should benefit from expected rise in footfall to its casino and resort.
Created by zaclim | Oct 17, 2024
Temporary setbacks for the cocoa-derived food ingredients maker as it faces high and volatile cocoa bean price environment that has led to a sizeable increase in Guan Chong Bhd’s working capital.