Apart from the cheap valuation, there are also other positive catalysts that will benefit MMC in the near future.
1) better profit level mainly from the return of global trades from the reopening of major economics post covid and also the diminishing tariff war between major economies (US, Europe and China) with Biden as president vs Trump. MMC share price fell starting in early 2018 mainly due to Trumps's trade war with china that hampered global trades which affected cargo volume into MMC's ports.
2) Potential award of MRT 3 contract to MMC-Gamuda which is the main contractor for the current MRT2. MRT 3 would consist mostly of underground tunnelling works where currently MMC Gamuda is the only local contractor with the right expertise. The JV company has a total of 12 boring tunnel machines at its disposition ready to undertake the project. MRT3 contract value and margins are expected to be higher vs MRT2 given the complexity of the works.
3) Monetisation of the port business. As mentioned in local reports, there are rumours that MMC is looking to capitalised on the favourable market condition by raising around rm4bil via IPO. Assuming 40% stake is to be sold given that MMC would still probably want to have a controlling stake in the port business. This would mean a RM10bil valuation for the port business alone or rm 3.28 per share which would put MMC valuation closer to its rival Wesport.
With all this there are actually more catalysts for the share price to trend upward.
to answer @ykyew11 question, if the port goes for listing, there's few ways that can benefit MMC. The valuation of the port will itself become huge and that is a good PR for MMC. Furthermore, assuming MMC will do fundraising, maybe offer for sale, then there's cash going to MMC, that's a positive news to MMC, maybe MMC can give a special dividend to its shareholders...
My predictions seems betul, indexs going to rebound, those get it below 1.05 hold it, graph looks much better, by next weeks close 1.12-1.15 should be no problem, may be higher, Gong Xi Ni Fa Cai!
Guys guys guys. I have no TP. I have 2 modenas krystal invested. Im very light. This week not good week for me. If next mother go above RM 1.2 c23 will touch 12 sen if mother hit RM 1.5 i will quadruple my money at 26 sen. It is all instinctive like a UCL top european footballer ronaldo.
Next week chase alibaba c2 at 3,3.5 sen. I collected geely c3 n xiaomi at 18 sen n 10.5 sen....watch inari c79-82 ... Watch pmetal c5o-53. Melewar wb, overseas, mc lean.....
Global market very shaky no prolonged uptrend these days we cant party like its dec 20, jan/feb 21 again...those were good times for my ataims, d n o, ALibaba c1,2, tencent c9, genm cw, airasia cw...
always be very careful when buying just for assets value
be very clear coz its "their money" and its not "your money"
"their money" will NEVER be given to you. Shareholders dun own "their money"
Smart investors know how to differentiate "their money" type of companies so they avoid counters like this.
That is the "REAL" reason "their money" type of companies will always have very extremely low share prices... some even have share prices 1% of total assets value.
You may wait forever and trapped forever coz the 1% will never rise to even 1.1% of assets value....
sometimes old management just f off and new guy takes over and it might happen. what are the chances of this happening?
we dun buy shares on remote chance of management being sacked...
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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....
petnch2020
79 posts
Posted by petnch2020 > 2021-03-26 11:36 | Report Abuse
Apart from the cheap valuation, there are also other positive catalysts that will benefit MMC in the near future.
1) better profit level mainly from the return of global trades from the reopening of major economics post covid and also the diminishing tariff war between major economies (US, Europe and China) with Biden as president vs Trump. MMC share price fell starting in early 2018 mainly due to Trumps's trade war with china that hampered global trades which affected cargo volume into MMC's ports.
2) Potential award of MRT 3 contract to MMC-Gamuda which is the main contractor for the current MRT2. MRT 3 would consist mostly of underground tunnelling works where currently MMC Gamuda is the only local contractor with the right expertise. The JV company has a total of 12 boring tunnel machines at its disposition ready to undertake the project. MRT3 contract value and margins are expected to be higher vs MRT2 given the complexity of the works.
3) Monetisation of the port business. As mentioned in local reports, there are rumours that MMC is looking to capitalised on the favourable market condition by raising around rm4bil via IPO. Assuming 40% stake is to be sold given that MMC would still probably want to have a controlling stake in the port business. This would mean a RM10bil valuation for the port business alone or rm 3.28 per share which would put MMC valuation closer to its rival Wesport.
With all this there are actually more catalysts for the share price to trend upward.