If I'm not mistaken, there are certain investment policy among the fund managers that only allow them to buy index related counters for their investment funds portfolio, if MMC is going to be excluded from index - meaning these funds managers have to start trimming down their holding of MMC, kind like force selling effect.
NT the counter is taken out fr the top 30 ftse bm klci becoz ihh came in. My question is why not take umw first as mmc is still slightly higher in market capitalisation at no. 28.
Ken, I think there are plans to moved this counter later. Everything has been given to Syed Mokthar and next will be the juggling act.esp for Malakoff debt and listing and Gas Malaysia. A good portion of the plan was the Gas Malaysia BTU increase price of RM6 yearly which did not take place yet becoz of GE. Imagine the relisting, compunded with the increase at every 6 months for the BTU natural gas and the shift of funds fr ahem..... Ask yourself if its your last shot at the making what would you do. Answer: Make as much as you can right? and to do that you need to consolidate one BIG one.
I am excited. Is this what I think it is. Never seen anything like this mega plan. If the powers to be or rather the powers that might not be, controls all the power .....and later water....hmmm this is massive and oOOhhh
How do you revive someone with heart failure? Answer: kickstart the heart. And there are several kickstartz alredi on the way and one of these should do it......:)
MMC Corporation: Overlooked and underappreciated • Overlooked and lagging large cap proxy to infrastructure and Iskandar • Current share price implies land in Johor is free • Strong investor interest in Gamuda and UEML to filter down to under-owned MMC • Raising earnings and TP, High conviction BUY
Overlooked. The lack of large cap liquid infrastructure stocks apart from Gamuda and IJM makes MMC stand out as a strong proxy. The appetite for Malaysian infrastructure has picked up judging by the surge in Gamuda's share price, which is up 35% YTD vs 2% for laggard MMC. We have also received more queries from foreign investors but MMC is often overlooked and this is likely due to its lack of coverage and more complex businesses. This is not justified given its market cap of US$2.5bn, decent trading liquidity, orderbook of RM4bn and strong pipeline ahead. Infrastructure now forms 32% of our revised SOP valuation. The stock is also under-owed with foreign shareholding at 6.9% vs Gamuda’s 45%. With the elections behind us, the substantial overhang on Syed Mokthar-related stocks is now removed.
Iskandar assets feeling the buzz. Iskandar forms 60% of MMC’s SOP. While the direct beneficiary will be its holding of 4,556 acres of land in Senai and Tanjung Bin, its other assets such as ports and airport will continue to benefit from higher throughput and passenger arrivals (1Q13: +26%). Given the success of Vitol in Tanjung Bin, there are 3 other tank operators which will lease land for RM40 psf (including infrastructure) vs Vitol’s RM20 psf. On our estimates, every RM5psf increase in land price over our new base case of RM28-RM30psf will raise SOP by 5%. Current share price implies Iskandar land is free; share price lagging. Based on the market values of its listed entities, the market is assigning a residual value of RM1.4bn for its construction, ports, water and Johor land bank. Putting this in perspective, even at a depressed land price of RM10psf (most recent transacted price is 25-30psf), the land is worth RM2bn.
Raising EPS and TP. We raise our FY14-FY15F earnings to impute in PDP fees of 6%. Our new SOP value of RM6.19 (TP of RM4.95 based on 20% discount) now factors in DCF value of the PDP, expectations of just RM1bn in new orders and higher land values. High conviction BUY.
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....
weiboy90
444 posts
Posted by weiboy90 > 2012-07-26 23:21 | Report Abuse
erm..there is a list whereby the company is rank based on their market capitalisation.
take this as a reference: http://en.wikipedia.org/wiki/Kuala_Lumpur_Composite_Index