or should we say that MBSB share price has been all the while heavily discounted by the market and the on-going fair valuation of MBSB-MIDF asset will bring to light the true value of MBSB share ... can't wait to see the reaction of the market on the coming Monday :)
MBSB was trading at 0.5 PB which is insane in my opinion, but that's the market wisdom...but now with MIDF revenue and profit taking into considerations, even if it is still traded and value at 0.5 PB, the price would have to be higher, cannot be 63sen anymore....u see my point?
i fully agree with ur views @Loy Loy Cheong and i do hope market will come to appreciate what we see too ya :) Any guess on what the final dividend payment will look like post MIDF completion?
Looking at MBSB share price, it looks the response from the market is lukewarm only. The incoming MBSB Group Ceo (Ex CIMB Senior Guy) has a lot in his plate to create value for the enlarged group. Good luck to him. Meanwhile, I will just wait patiently and see what rabbit he can pull out from his magic hat when he comes aboard.
I am not too keen on the banking sector especially with the rising interest rates. With the high cost of living and high inflation rates, an increase in interest rates would result in more defaults.
Could the lukewarm response be due to what the market is seeing for the latest numbers? Looking at MBSB's Q1 2023 analyst report, their impaired financing has risen to 6.98%. Profit before tax is down to RM84 million and Financing Loss Coverage seems to have dropped to 57% from over 100% 2 years ago. Have they been reversing provisions to boosts profits in past quarters? Does this make sense when impaired financing is rising (4.6% 2 years ago to 6.98% now).
Apart from concerns about MBSB's financial performance, I have to conceed EPF's total holdings currently is a big drawback too. EPF after merger will hold 58% of MBSB Group, I hope EPF can dilute their total holdings to allow a bigger float in the market. Let us hope EPF can sell some of their holdings at the right price. No need to hold 58% interest to be the controlling stakeholder. Let more participants have stakes in MBSB.
Kstraders, if the percentage of holdings is too high, the stock is illiquid. Some investors will not want to hold such stocks because when it is time to sell, too few interested buyers and the price might not escalate much. There is an element of gambling when we pick stocks and no one wants to hold stocks that cannot gain in value but instead goes down 50% in six years. Of course with EPF as the majority controlling stake, MBSB will not go bust. There was a time in the 80s when shares of MBSB was priced above Rm4.00. We can only hope that MBSB is a growth stock and we will be rewarded in due course. Keep our fingers crossed.
At this juncture, trade MBSB on facts and not sentiments. 1. Before acquisition of MIDF MBSB is already trading at PB of 0.5 (or lesser), the most discounted bank in Malaysia, so based on this fact, it has limited down side but huge upside potential. 2. After acquisition of MIDF, earnings increases, revenue increases, based on this facts, the price if continue trading at this level means it is probably 0.3 PB value which to me is senseless to remain at the this price level, it is only a matter of time the market wisdom will sets in to move the price higher as the quarter progress. 3. MBSB already said there is another post merger dividend, when this is finalize and announce, you think you can get MBSB at 65sen? 4. If banks in Malaysia continue its fine run, there is even the possibility of another interim dividend. 5. MBSB is emerging as the biggest or 2nd biggest Islamic bank in Malaysia. 6. High possibility of adding MBSB as an KLCI Index stock in the very near future. To me, this is the best time to invest in MBSB, not for short term punting but as a mid term investment.
Wow LLC, change of mind, thought you said MBSB has got a bunch of incompetent people managing the bank? Loy Loy Cheong At this juncture, trade MBSB on facts and not sentiments. 1. Before acquisition of MIDF MBSB is already trading at PB of 0.5 (or lesser), the most discounted bank in Malaysia, so based on this fact, it has limited down side but huge upside potential. 2. After acquisition of MIDF, earnings increases, revenue increases, based on this facts, the price if continue trading at this level means it is probably 0.3 PB value which to me is senseless to remain at the this price level, it is only a matter of time the market wisdom will sets in to move the price higher as the quarter progress. 3. MBSB already said there is another post merger dividend, when this is finalize and announce, you think you can get MBSB at 65sen? 4. If banks in Malaysia continue its fine run, there is even the possibility of another interim dividend. 5. MBSB is emerging as the biggest or 2nd biggest Islamic bank in Malaysia. 6. High possibility of adding MBSB as an KLCI Index stock in the very near future. To me, this is the best time to invest in MBSB, not for short term punting but as a mid term investment.
I did not change my mind about the people, still incompetent brunch, otherwise it will not be trading at 50% discount not? I invest in the company but still wish there are better people managing it.
Nothing significant in the comment just it is reasonable, going forward once the acquisition is finalised, will MBSB management be able to create value from the acquisition? And once that is convinced, will MBSB stocks attract external funds to accumulate, requiring a jump in EPS post-acquisition? MBSB exceeded the RM1 bill of NP in 2014 in the last 10 years. So based on LLC comment, the incompetent bunch of people in MBSB will hardly be able to create value. So why are we here buying the shares and expecting another divi? CYChong Another view on MBSB's RM 1 bil acquisition https://www.youtube.com/watch?v=CyYX8nPN1Mk
Even incompetent brunch will have its day, the market has spoken, and from 5 -6 years ago till now, look at what the price of MBSB then and now, what value except disappointment have MBSB bring for their loyal supporters?
Couldn't agree with you more LLC, the current people managing MBSB are a bunch of losers. I am hoping the new Group CEO from CIMB can kick some backsides of the senior management team and make them realise "having a civil service mentality will mean stagnation and eventual demise". I am sure after the CIMB guy comes in, he will bring in some quality people to help him push MBSB to the next level. The current MBSB senior team is definitely mediocre. Not only retail shareholders lost money but EPF also lost big money putting up with this underperforming MBSB team. The only saving grace was the annual dividends could cover our holding costs of holding on to the stocks until it sees better days.
Expect the acquisition of MIDF to be completed by 1st July and announcement of post merger dividend, I am really keen to see how market is going to drive the price of MBSB and what is the co-relations of the new issue price of 96sen, something interesting could be developing there.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ckwee168
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Posted by ckwee168 > 2023-06-09 21:59 | Report Abuse
or should we say that MBSB share price has been all the while heavily discounted by the market and the on-going fair valuation of MBSB-MIDF asset will bring to light the true value of MBSB share ... can't wait to see the reaction of the market on the coming Monday :)