almost all construction counter under strong consolidation...performance of MMCCorp is consider very good indeed...from technical perspective...it stands good chance to go up further tomorrow (provided no sudden plunge of US stock market)...recent volumn is very very high and some technical indicators have shown high chance of going to to RM1.20 in near term
If we look at historical volume, continous daily volume of about 10mio only happen in 2013 and 2009 uptrend...and now it happened again...look at the chart and you shall notice volume started to consistently pickup since 27/3/2019
Reason to buy mmccorp 1) beneficial from ECRL due to (i) political tie (ii) port klang connection (iii) tunneling experience (iv) capacity to be appointed as major contractor (2) relative slow increase compare to other small cap which already up previously (3) technically high volume recently..and etc..today gap up 2cts...UEM also gap up....there may also be news about PDP status of UEM-MMC for Pan Borneo...highly likely change for HSR as well as it teams with Japan! which Msian has been given low interest loan recently!
70% of ECRL revenue will come from cargo load: Daim
19 APR 2019
KUALA LUMPUR: Cargo load will be the more profitable sector for the East Coast Rail Link (ECRL) compared with passenger ridership as the rail link will provide a land bridge that will boost freight transactions and cut travel time significantly between Port Klang and Kuantan Port.
Council of Eminent Persons (CEP) chairman Tun Daim Zainuddin (pix) said that cargo load would contribute an estimated 70% to revenue versus 30% for passenger traffic due to its shorter travel time and greater reliability as a mode of transport.
“The ECRL provides a land bridge between Port Klang and Kuantan Port, shortening travel time between the two ports by some 30 hours.
“As a result, ECRL provides for a faster alternative transfer of goods between the two ports compared with the much longer sea route,“ he told Bernama in an interview Thursday.
He was responding to questions on the supplementary agreement signed last week between project owner Malaysia Rail Link Sdn Bhd and its joint venture partner China Communications Construction Company Ltd (CCCC) to manage, operate and maintain the ECRL rail network which would be built at a considerably lower cost.
Daim, the special envoy to Prime Minister Tun Dr Mahathir Mohamad, who managed to finalise the ECRL deal after nine months of negotiations, said the rail link would also connect Kuantan and Port Klang with the various industrial hubs, seaports, tourism nodes, and East coast state capitals.
In the process, it would stimulate new growth along the ECRL corridor, as a result of which would require reliable transport for the transfer of goods and passengers.
“We are expecting the cargo load to be the main contributor to the ECRL, but as development along the rail line and in the east coast increases, passenger load will also automatically increase,“ he said.
As far as passenger traffic is concerned, “we are talking about people visiting their relatives and about tourists being provided with an alternative mode of transport to the east coast”.
“In that sense, we have to ensure that ticket prices are kept affordable,“ he said.
To boost passenger traffic, he said the Pakatan Harapan government decided to re-route the ECRL so that it passes through Putrajaya Sentral, which is a far-sighted move as it will connect the east coast to the federal government administrative centre and “this is important for businesses.”
“This will also help increase passenger load for the ECRL,“ Daim, said, adding the ECRL would now pass through five states – Selangor-Federal Territory-Putrajaya, Negeri Sembilan, Pahang, Terengganu and Kelantan, under the renegotiated agreement as opposed to the original deal which covered only four states.
That means more people would stand to benefit from the spillover benefits of the ECRL project, he said. — Bernama
“We are expecting the cargo load to be the main contributor to the ECRL, but as development along the rail line and in the east coast increases, passenger load will also automatically increase,“ he said.
Maintain buy with a lower target price (TP) of RM1.37:
MMC Corp Bhd’s (MMC) current share price of 83.5 sen is cheaper than the value of its ownership in Malakoff and Gas Malaysia combined at 85 sen per share.
Effectively, the market is ascribing zero value for all of MMC’s other assets, with the most obvious mispricing being its port operations, which have generated steady earnings historically.
Going forward, we expect any negative news from the engineering segment to have little impact on MMC’s share price as its earnings before interest, taxes, depreciation and amortisation contribution made up only 6% of MMC’s cumulative nine months of financial year 2018 earnings, with 87% from the ports and logistics segment.
PETALING JAYA: MMC Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2018 (Q4 FY18) surged 59.8% to RM119.72 million from RM74.91 million a year ago due to the full consolidation of Penang Port Sdn Bhd’s result.
In a filing with Bursa Malaysia, the group said higher contribution from the Klang Valley Mass Rapid Transit Sungai Buloh-Serdang-Putrajaya (KVMRT-SSP Line) and
the absence of share of losses from Zelan Bhd also contributed to the improved earnings. .....................
The group also saw higher share of profit from Malakoff Corp Bhd as a result of improved contribution at coal plants, lower depreciation, lower maintenance and finance costs, and higher contribution from associates investment.
.....................
Moving forward, the group said the ports and logistics division is expected to record positive volume growth across all the ports while the completion of acquisition of the balance 51% interest in Penang Port 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 and logistics division.”
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....
alivetoinvest
1,247 posts
Posted by alivetoinvest > 2019-04-15 09:33 | Report Abuse
up so little selllllllllllllllll