Indeed. At RM1 , very attractive as cash in hand already RM1. Yet to factor in the value of the landbank. Any corporate announcement will drive the stock price up. My strategy for MPHBCAP is reinvestment to increase the holding. Once hit my target price or opportunity from other stocks , will sell all.

After capital repayment , everything possible with at least 700MM cash in hand. The indicator should be share buy back.

Don't be pessimistic during weak market. Stay firm with your strategy

Market performance quite weak recently. Many stocks in negative territory. MPHBCAP holding firm in term of stock price at thin volume. For the past few months , I continue to increase my holding in MPHBCAP through dividend income and switching from 2 others stocks. One currently at - 40% and another one at - 5%.
I'm looking forward for the capital repayment / dividend to reinvest taking opportunity of the weak market sentiment

Attended EGM few months back for voting. Management updated that if capital repayment rejected by high court , will pay as dividend. The money is coming. Expected timeline announcement mid Oct and payout in mid Nov 2022. I think announcement coming soon.

Good Luck everyone. Looking forward for a brand new MPHBCAP from tomorrow onwards. I increased my holding by 56K shares last week.

Interesting situation now. Bidders waiting at 1.48 for other to sell. Volume getting thinner. Cleaning up weak holder and getting ready to push up to next level ? Clean up the weak holder stage by stage ?

@endgame

Myself I'm quite happy with the 45 sen capital repayment + dividend

After insurance disposal , either further cash distribution , M&A or kick start property development projects will be ok for me.

If cash distribution , can cash out fast

If M&A or JV property development that unlock the value of the asset , will be longer term holding but the return will be far better than cash distribution.

So , I hold on and accumulate more if price going down for short to mid term investment

@joezhang

Thanks for the sharing. Quite interesting info.

@ JoeZhang

The credit business about RM100MM. The cash flow quite uncertain with default in payment and on going legal action

@TheContrarian

I used simple method of calculation as I not sure how far the overlapping between MPHBCAP asset vs Insurance business asset

NA after disposal = 2.82 per share

Net asset = 2.82 x 715MM = 2,016,300,000

From QR 31st March 2022

Asset = 1,362,973,000
Liability = 33,588,000

Net asset excluding insurance business disposal = 1,329,385,000

Adjustment from insurance disposal
= 2,016,3000,000 - 1,329,385,000 = 686,915,000

Total cash and invested security

= 686,915,000 + 274,139,000 + 4,957,000 + 17,313,000 = 983,324,000

Remaining will be equipment , property , receivable , intangible asset etc.

For the past few weeks , observed that MPHBCAP has very strong support at 1.48.
If going below 1.48 , I'm considering to switch fund from my other stocks to increase my holding.

Before MCO , in 2019 , speculation that Flamingo Ampang received offer at 250MM for 13.9 acres of land + office tower + hotel.
I goggle using Goggle Map. The hotel at very strategic location and very valuable for redevopment.
Should not be a problem to find a buyer for outright sales or JV for redevelopment

@johnzhang @theContrarian

I went through the Quarterly Report and the Insurance Sales announcement. Tallying the #.

Only left with RM480MM in cash and short term investment and assets at 791MM. No longer RM700MM in cash and short term investment.

Some cash from land disposal might be use for other means such as adjustment on the fund , purchase of land ( refer to material litigation 3 or 4 years ago )

@johnzhang

AGM will be virtual. Good for me as I'm not staying in KL. I already registered and pending update of dail in code when getting closer to the AGM

Just need to be patient waiting for management to disclose their further plan.

They should address during AGM

What they will do with the remaining cash in hand of RM480MM

Distribute a portion as dividend ?
M&A - acquisition or investing in property development company like BRDB which took private in 2013. Will BRDB going for IPO again ? I'm checking on BRDB as seem like MPHBCAP engaged with them in the past in JV projects to unlock the value of the land ?
A portion as working capital ?

Of the properties and lands

I think for the remaining RM480MM , question should be raise during coming AGM. I'm expecting during AGM , they will provide an update of their plan for this , included how to unlock the value

*betting

I started to invest in MPHBCAP since spin off from Magnum through capital repayment. I sold off all Magnum stock after completed the exercise then switched MPHBCAP and temporary parked at REIT for dividend when the price above 2.
Recently I switched back to MPHBCAP in 2019 berring that Generali will not exercise the Put Option and ready to take advantage of the proceed from the 49% disposal.

I have contacted those holding MPHBCAP that I know. We will vote for the resolution in EGM. Our holding should be 0.5% to 1%

I think the best interest for minority shareholders is the completion of disposal of insurance business and tranfer to property division.
No matter what the management propose in the future , it won't be worst than today

I strongly believe those significant holder of MPHBCAP will vote for the resolution. As if the EGM fail , will back to square one. No dividend..continue waiting as the company has no fund to develop the property and still under the scrutiny of BNM

My view

As the EGM is about the disposal of 51% of Insurance holding , should they provide the break down of the utilization of the proceed of 518.16MM only or everything about the company ?

My view was that the breakdown of the utilization of proceed is fair which address the rewards to the shareholders , to address PN1 status ( no core business after disposal of insurance business ) , working capital and repayment of debt.

After this , only dealing with the remaining of cash and asset post disposal

@theContrarian

Here is my understanding about the Nomura fund

When Generali purchased 49% of MPHBCAP Insurance business , MPHBCAP granted a 3 years call option to increase further 21% and a 5 years Put Option for Generali to resell the 49% of MPHBCAP insurance business to MPHBCAP if the Call Option failed to executed.

As a probation to the Put Option , MPHBCAP need to keep the fund to repay Generali when the Put Option executed.
In the Put Option , stated clearly the calculation of the redeem price ( adjustment ) where MPHBCAP increases the amount over time from cash in hand

I went through the announcement and quarterly report yesterday.

My finding as above

Total cash and short term investment = about 980MM

After deduction of 508.16MM , with RM480MM in hand , which equal to RM0.66 per share.

Asset ( property and land) = 791MM at book value

Conservative calculation , value above RM2B

My view , utilization proceed of 518.16MM will be 1st phase of the action , more action follow after completion of phase 1 action.

More news will be release phase by phase to get the analysts excited like M&A etc

Looking forward for the AGM as I think many questions will be thrown to the management regarding post insurance sales. Can get some light from the sharing.

Why want to put so much attention to predict the daily stock price up and down unless with plan to transact now ?
Else , relax and wait for announcement of EGM date follow by AGM.

I take a neutral stand as of now. Just wait and see , then react. Cautiously optimistic is my usual strategy

I started investing in the 90s. Many majorshareholders did that , privatizing the companies when the stock value way below their value and IPO again many years later with hefty return.
Recently for many cases , minority shareholders awareness increases , team up together and through legal action , blocking unfair deal and delay the execution.

Don't worry too much. Relax and have a nice weekend.

If the management didn't do anything after disposal of insurance business , will be classify as PN1 status.
Privatization possible or the company acquire new businesses through M&A or more JV to release the value of the land bank

@Kaya Toast

Do you have the full report from AM investment ? Can look at it in more details. Thank you

My understanding when MPHBCAP 1st declare 5 sen of dividend.
MPHBCAP yet to dispose the land at Sungai Rusa , Balik Pulau and Pengerang.
MPHBCAP didn't explain the reason of the rejection by BNM but from write up I read , it mentioned that BNM rejection due to the stringent cash flow or liquidity for insurance businesses.
As MPHBCAP selling away insurance business and no longer need approval from BNM for dividend payment , the management will able to pay dividend as long as not exceeding the retain earning. It will be different ball game after the disposal

Scenario 2 will be the best for minor shareholders. While getting cash , can still participate in long term gain from the asset.

My personnel view was that Majorshareholder didn't need cash from MPHBCAP. HE can get cash from Magnum. As Magnum holding few % of U Mobile shares , once U Mobile IPO , Magnum will return the cash to shareholder. The land more valuable to him than cash

@johnzhang. Agree with you. Assume 63.4% of shareholding willing to accept the SCR , majorshareholder will end up with few billion worth of assets , which translated into more than RM10 per share

@johnzhang. Thanks for sharing the term

@theContrarion

Regarding the RM460MM , my view was that this amount of money is not keep aside for dividend payment.
Is a probation if Generali exercise the Put Option by or before 15th Nov 2020 ( if I remember the date correctly ). The amount adjusted every quarter during the QR to reflect the latest calculation as per the deed.
After the Put option lapse , only MPHBCAP can utilize the cash

@TheContrarian

I'm using the privatization term to reflect the action where some company using the internal cash to buy over the remaining of the share while still keeping afloat. ( as per the announcement last Friday)

Do you have any idea of the term use for this action.

My advice. Don't pay too much attention on the short term fluctuation of the stock price. Vote for the resolution during EGM. Attend virtual AGM on 30th June. Then celebrate in Q3

If scenario 1 and 2 happen , stock price will boost beyond 2.
If scenario 3 happen , stock price will stay at current level

I think scenario 1 and 2 higher probability to happen than scenario 3.

Scenario 3

Minimum dividend pay. Keep all cash for acquisition or working capital. Unlock the value of the asset

Scenario 2

Pay RM1 dividend. Keep remaining RM1 per share as working capital or acquisition of property development company to unlock the value of the asset

1. Privatization but remain listing

Majorshareholder with 36.6% holding ( based on JoeZhang's data ) will offer RM3 per share ( against NA of 2.82 ) to remaining shareholders. If all shareholders taking the offer , will be RM1.35B
Shareholders has the option to cash out or holding the stock.
MPHBCAP will merge or JV with property development company to unlock the value of the asset. New shares will be issue through private placement

Base on above assumption. 3 possible scenarios

1. Retain earning after disposal of insurance arm = RM1,034,000,000. Which means max dividend per share the company can out at 1.40 per share

2. Cash in hand and high liquid asset at RM1.4B

3. MPHBCAP has no expertise in property development. The company need to JV with other company to unlock the value of the asset. MPHBCAP will contribute land instead of cash to the JV

Assumption from observation of MPHBCAP for past few years and information available publicly