MMC’s outlook for its ports and logistics business is still good. While the engineering division may face near-term uncertainties, the ports unit’s net profit should enjoy double digit growth due to full-year contributions from Penang port in 2019.
The port and logistics business is a cash cow gold mine..
There are some construction projects ongoing but the construction division only accounts for less than 20% of the group's net profit. People are selling out of fear (2018) and now its clearly oversold and undervalued.
Any mega projects for MMC would be an unexpected bonus.
At this price of range of 1.xx , Nta 3.14 and dividend of 4 cents...
whether ECRL project, will re–tender or using back the previous administration succeful bidder... 1.,AQRS GABUNGAN 2. SUNWAY CONSTRUCTION 3.MRCB 4. WCT 5. HUME INDUSTRY 6. ANN JOO 7. LAFARGE INDST
u are comparing cronies under previous government.... now different ball game altogether....who own MMC ??.. close ties with Daim..many ppl has forgot kot?..never mind..i will stay big
Thus, not only is Bukhari in the business of oil and gas, he is a joint shareholder with Gamuda in a company that constructs airports, highways, bridges and railway links. That is another reason why Daim is seeking to renegotiate terms associated with the construction of the ECRL. Apart from looking at ways to establish a banking nexus with EXIM and CITIC, the Council of Eminent Persons (CEP) de facto chief is seeking to offer MMC-Gamuda a lucrative slice of the ECRL project in a quid pro quo that involves the transfer of Melati Pertiwi shares to his people. The Chinese government is expected to commit itself to Melati Pertiwi in deep sea drilling at the edge of the South China Sea. https://www.thethirdforce.net/how-daims-china-trip-has-to-do-with-mahathirs-sons-part-two/
CnP ECRL Link will benefit who? Klang Port (MMC North Port n Power Station) ====>> Kuantan Port (IJM) Wait Monday's PC! Fly Fly Fly By-Pass Spore Ports
18.Current prospects (extract from Financial report ending 31 Dec 2018) ..................................
Ports & Logistics division is expected to record positive volume growth across all the ports. Further, the completion of acquisition of the balance 51% interest in Penang Port Sdn Bhd in May 2018 will reflect its full year contribution to the division’s financial performance.
The acquisition allows the Group to establish a strong foothold in the Northern region of Peninsular Malaysia and complement the Group’s strategic presence throughout the Straits of Malacca.
Operational and cost synergies driven by MMC, would further improve the performance of its Ports & Logistics division.
The Energy & Utilities division is expected to contribute positively from the Group’s associated companies, namely Malakoff and Gas Malaysia.
Substantial existing order-book provides earnings visibility for the Engineering division anchored by the KVMRT-SSP Line underground and elevated work.
Furthermore, the earnings contribution from Engineering division will be sustained by on-going projects including Langat 2 Water Treatment Plant and Langat Centralized Sewerage Treatment Project.
Based on the original plans, 44 tunnels are to be constructed at various locations spanning over 50km. The longest tunnel (which is now likely to be scrapped) is the Genting Tunnel measuring 17.8km (37% of total tunnel length).
The ECRL is of strategic importance to China because the Kuantan Port-ECRL-Port Klang route shortens its trading route and cuts the time it takes to travel to the west of Peninsular Malaysia while eliminating the need to use the Singapore Port.
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the max reduction from its original tunnel volumes is 37% only, but more importantly it benefits MMC Corp's Port & Logistics division.
you syphon out trades directly from China instead of getting via Singapore Port route
44 tunnels kan... haha.. MMC-Gamuda is the best ..they even got world class recognition. from the name of that company, one should know who is actually in-charge.
Improvements to the nation’s ports will serve as bookends for the RM55bn ($12.3bn) East Coat Rail Line (ECRL) – a 620-km electrified rail link between Kuantan Port and Port Klang. At the beginning of November, Malaysia and China signed an engineering, procurement and construction contract for the project.
The ECRL will allow for the rapid trans-shipment of freight across the peninsula, reducing shipping congestion in the Malacca Strait, which hosts up to 80% of China’s maritime trade.
Significantly, the new land-sea link will bypass Singapore and move a major portion of regional freighting activity north. This could boost Malaysia’s profile as a leading logistics hub and open up new routes to markets in North Asia. Work on the ECRL is set to begin later this year and be completed in 2022.
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....
Ron90
4,126 posts
Posted by Ron90 > 2019-04-08 23:54 | Report Abuse
$hit !!..no wonder price doesn't move up as expected....EPF is buying !