Posted by emsvsi > 2021-04-20 14:47 | Report Abuse

We are only at the cusp of a global economic recovery that will last for years (as with every economic cycle after each recession) and international trade is the heartbeat of all that growth.

Shipping is the most efficient form of transport for goods

MMC TO THE MOON

Posted by Pinky > 2021-04-20 14:48 | Report Abuse

@emsvsi hahaha u already migrated here from Genting? XD

Posted by Mohd Yazid Mohd Ali > 2021-04-20 17:01 | Report Abuse

Buy some more ,top up some more 2.00 coming soon maybe end of june ?

Posted by jgb349000 > 2021-04-21 09:21 | Report Abuse

Dont know when bankers gonna push up..

Posted by petnch2020 > 2021-04-21 10:04 | Report Abuse

Apart from the earning growth to be deliver in FY21, the biggest rerating catalyst for the company would be the monetisation of the port business (here probably would be the IPO).

Assuming MMC can deliver a total profit of RM600mil and assuming the market still value the company at the current 9xPE, that would translate to a market cap of RM5.4bil or RM1.77 per share. Take note that the smallest port operator, Suria Capital is currently trading at PE of 11x while the 2nd largest port operator, Westport is currently trading at PE of 22x.

Now if MMC succeed in listing its port business, I believe that market would give a fairer valuation to MMC. At PE of 16x (which is the port operators' average multiple) that would push MMC valuation to RM9.6bil or RM3.15 per share. At a similar PE of 22x as Westport (which is fair given that MMC is actually the no1 operator of ports in Malaysia and Westport No 2. And at the same time earning growth expectation of MMC's port is higher vs Westport's), that would translate to a market capital of RM13.2bil or RM4.33 per share.

Hence why I believe the upside of MMC is a lot higher than what the market currently assumes. DBS Bank (Singapore) did highlight this in their March 2021 analyst report which for them is the biggest rerating catalyst for MMC.

Posted by BULLBULL_BULL > 2021-04-21 10:21 | Report Abuse

I love to read analysis from petnch2020
Simple, full of info, make sense and genuine opinions

Posted by JoshuaMS7 > 2021-04-21 10:36 | Report Abuse

But it seems 1 day show again today!! :(

Posted by Inv3st0r69 > 2021-04-21 10:45 | Report Abuse

so sad :(

Very good counter but doesn't really reflect its value

Posted by BilisMrJ39 > 2021-04-21 12:01 | Report Abuse

Just be patient with this stock, its on uptrend for long term. Holding power is important

Posted by winwin88888888 > 2021-04-21 16:20 | Report Abuse

hmm i wonder it can go 1.02?

Posted by vrooom > 2021-04-21 20:18 | Report Abuse

Running out of steam dy

Posted by DepecheM > 2021-04-21 23:24 | Report Abuse

Please retrace to 1.02-1.03.....I want to add some more.

Posted by emsvsi > 2021-04-22 00:21 | Report Abuse

Cargo surge breaks multiple records at Port of Los Angeles
19/04/2021

The Port of Los Angeles, the busiest U.S. port by container volume, has experienced the strongest March in its 114-year history, according to an announcement of the port.

“As more Americans get vaccinated, businesses reopen and the economy strengthens, consumers continue to purchase goods at a dizzying pace,” said Port of Los Angeles Executive Director Gene Seroka Wednesday at an online briefing conference.

According to Seroka, the port processed 957,599 Twenty-Foot Equivalent Units (TEUs) in March for a 113 percent leap compared to March 2020 when global trade slowed to a crawl after the onset of the COVID-19 pandemic.

The loaded imports volume reached 490,115 TEUs last month, an increase of 123 percent compared to the previous year, while loaded exports edged up 1.5 percent to 122,899 TEUs. Empty containers, heavily in demand in Asia, surged 219 percent compared to March 2020 reaching 344,585 TEUs.

As a Western Hemisphere port with the most cargo moved annually, the Port of Los Angeles’ top trading partners include China, Japan, Vietnam and South Korea.

The cargo surge in March also marked the largest monthly year-over-year increase in the port’s history and its busiest first quarter so far. Moreover, the overall cargo volumes through the nation’s busiest container port have increased 44 percent compared to 2020.
Source: Xinhua

https://www.hellenicshippingnews.com/cargo-surge-breaks-multiple-records-at-port-of-los-angeles/

Posted by caonima > 2021-04-22 09:23 | Report Abuse

breakout now, uptrend soon...

Posted by JoshuaMS7 > 2021-04-22 09:23 | Report Abuse

yes 1.20 coming!!

Posted by abc333 > 2021-04-22 09:23 | Report Abuse

mmc start flying to moon

Posted by JoshuaMS7 > 2021-04-22 09:24 | Report Abuse

buy more warrant C24!!

Posted by JoshuaMS7 > 2021-04-22 09:24 | Report Abuse

Crazy undervalued!

Posted by pingdan > 2021-04-22 09:27 | Report Abuse

Round 2 party gogogo!!

Posted by bobochacha > 2021-04-22 09:54 | Report Abuse

stumbled upon this article from DBS singapore published on MARCH 11

https://www.dbs.com.sg/treasures/aics/templatedata/article/equity/data/en/DBSV/012014/MMC_MK.xml

quoted from inside

Deep value with improving earnings. The market continues to overlook one of the deepest value stocks with a varied business encompassing almost the whole Malaysian economy – infrastructure, energy and utilities, airport, industrial land, water concession and ports. Its 4Q results also point to a more sustained earnings recovery. The current market value of its land in Senai alone is worth more than its current market capitalisation.

TP RM1.50 given by this DBS

Posted by nasgee > 2021-04-22 09:55 | Report Abuse

wave 4 bcfll

Posted by Pinky > 2021-04-22 09:55 | Report Abuse

Everybody can party here again! XD

Posted by coffeesheep > 2016-11-17 11:19 | Report Abuse

Yeah let's party haha

Posted by DepecheM > 2021-04-22 12:43 | Report Abuse

Slowly gaining momentum

Posted by jgb349000 > 2021-04-22 15:39 | Report Abuse

Bankers not aware of this stock undervalued?hope they realise and push up soon.

Posted by aliyusof > 2021-04-22 17:06 | Report Abuse

Bankers areprobably uncomfortable with Syed M

Posted by petnch2020 > 2021-04-23 07:57 | Report Abuse

I think the bankers/ analysts are waiting for another positive catalyst before upgrading their target price. Those catalysts, i believe, would be the continuation of the good result of 4Q20 or announcement of potential ipo of the port business.

Take DBS target price of RM1.50 highlighted by bobochacha. If you looked at the full report, the RM1.50 was actually derived after putting a 40% discount on its Sum Of Part Valuation (SOP). The actual SOP valuation given by DBS was around RM2.50. That being said the RM1.50 Target price was an improvement from the previous RM1.35 TP set by DBS prior to 4Q20 result. So i believe if MMC could continue to show the good result, bankers will start to reduce the discount rates applied in their valuation.

In the same DBS report they also shows why they believe an IPO of the port business would provide the biggest valuation rerating. They did a scenario analysis of the port ipo based on valuation ranges from EV/EBITDA of 10x to 14x. That translate to a market cap of RM13.5bil to RM20.3bil for the port business alone. Or rm4.40 to rm6.60 per share.

Currently DBS value the port business at rm4bil (even this is undervalue as they derive the valuation from PTP, Johor Port and Northport only). But after the 40% discount, the value given is only RM2.4bil or rm0.79 per share. So you can see that the potential upside to MMC valuation will be the biggest if there is a potential IPO on its port business.

Posted by turtleking > 2021-04-23 09:37 | Report Abuse

Haizzz boring. Operator should do something attract retailers to come this counter goreng goreng

Posted by jgb349000 > 2021-04-23 09:57 | Report Abuse

So many loss making companies price shoot up.lile crazy bit this gem is way behind.

Posted by DepecheM > 2021-04-24 04:55 | Report Abuse

Slowly moving up... don't think there'll be a big pullback this time.

Posted by Pinky > 2021-04-24 09:29 | Report Abuse

Slow and steady wins the race

Posted by kukubird88 > 2021-04-24 10:52 | Report Abuse

Freight almost reaching milestone 2 while waiting mmc still tortoise speed

Posted by DepecheM > 2021-04-24 10:59 | Report Abuse

Won't sell this stock below 2.00 cos I believe it's worth more.

Posted by paultheoct > 2021-04-24 13:31 | Report Abuse

MMC's share price fell from a high of 4.8 in Jan 2008 to a low of 1.0 in Dec 2008 due to negative perceptions of the purchase of SATS and the associated land, and the 2008 financial crisis. The SAC land has appreciated from RM9.29psf to RM49.98psf and is likely to continue to appreciate!

With the increases in dividend yield, port volumes and tariff, increased gas tariff and higher prices of land sales; as well as possibilities of port IPO and MRT3, MMC's share price may well bounce back to the RM5/share level.



SAC land transaction notes:

Dec 2008
MMC purchased entire stake in SATS for RM1.7 billion. The purchase comprises RM580 million for airport operations and RM1.1 billion for SATS’s
2,718 acres of freehold land slated for development as a Logistics City. The purchase price of the freehold land was only RM0.4047M/acre

Aug 2015
Sold 188.743 acres of SAC land to IPARK Development for RM370M, equivalent to RM1.96M/acre

11Nov 2020
Sold 11.07 acres of SAC land to Shengda at RM24.1M, equivalent to 2.177M/acre

Feb 2021
SOld 21.36 acres of SAC land to electrical & electronic companies for RM46.5M, equivalent to RM2.177M/acre

9th April 2021
Sold 11.07 acres of SAC land to Shengda at RM24.1M, equivalent to 2.177M/acre

Available balance SAC land for sale is now 887.5 acres, valued at RM1.932Billion (using current transaction price as a guide)

Posted by SandCoffee > 2021-04-24 14:32 | Report Abuse

Thanks for the info

Posted by information > 2021-04-24 17:24 | Report Abuse

LOOK HOW BUSY IS THE PORT!:

https://www.marinetraffic.com/en/ais/home/centerx:103.563/centery:1.350/zoom:13

Posted by paultheoct > 2021-04-24 23:18 | Report Abuse

Information: Does look busy (try not to zoom out 2 notches).

The performance for all the ports were impressive. As you have mentioned, the 8 super post-Panamax cranes will improve efficiency and ability to handle traffic for ultra-large container vessels.


Ports FY2020 PAT
PTP: 228M +69%
Northport: 82M + 25%
Tanjung Bruas: 4.6M +22%
Penang Port: 48.4M +17%

Posted by aliyusof > 2021-04-25 09:16 | Report Abuse

Panamax cranes good for handling cargo up to 80,000 dead weight tonnes....can now handles now bigger ships esp dry bulk cargo. Good.

Posted by Invest_888 > 2021-04-25 22:38 | Report Abuse

MMC share has plenty of spaces to fly. Easy to find MMC got a lot good & hidden values e.g. many low valuation lands, current fantastic port business, potential ports IPO & etc.

Posted by Pinky > 2021-04-26 09:22 | Report Abuse

Today seems got good show coming...1.18 also touched

Posted by Superb99 > 2021-04-26 10:01 | Report Abuse

faster break new high lo....still below 1.2

Posted by Superb99 > 2021-04-26 10:42 | Report Abuse

wa...opened at 1.18 and now 1.14, operator fishing again

Posted by abc333 > 2021-04-26 10:46 | Report Abuse

Agree with Invest_888 , besides , coming QR will attract more investor to join. some private group start their accumulation , Hopefully MSCI noticed this gem and make some move in May or Aug.

Posted by lawpc128 > 2021-04-26 15:17 | Report Abuse

For paultheoct, thanks for a great sac land transaction notes. However 2718-188.743-11.07-21.36-11.07 =2485.75 acres balance. Your balance is only 887.5 acres. Is there a miscalculation ? The difference in profits from the land sale would be enormous.

Posted by Superb99 > 2021-04-26 15:34 | Report Abuse

this giant is too heavy to fly

Posted by paultheoct > 2021-04-26 15:42 | Report Abuse

lawpc128:

The vacant land available for sale is disclosed at:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=113669&name=EA_GA_ATTACHMENTS

Those transactions were gathered from public sources and not a tabulation of all land sales. There might well be parcels of land being retained for internal use.

The point that I was trying to make is that MMC was penalized for the 2008 SATS deal and it's share price was thrashed from 4.8 in Jan 2008 to 1.0 in Dec 2008. Now, that the land has appreciated 5 times the original purchase price, it's risky decision is proven to be a correct one.

Posted by coffeesheep > 2021-04-26 16:04 | Report Abuse

if retrace back to 1.05 i definitely top up again

Posted by kevinobc > 2021-04-26 16:58 | Report Abuse

https://www.hellenicshippingnews.com/global-shipping-badly-hit-by-the-pandemic/

Posted by kevinobc > 2021-04-26 16:59 | Report Abuse

https://www.hellenicshippingnews.com/global-shipping-badly-hit-by-the-pandemic/

Posted by kevinobc > 2021-04-26 17:00 | Report Abuse

hopeless for shipping and aviation right now due to the of covid again ! moving to tech and gloves counters...