Posted by Lioncity > 2021-02-26 12:42 | Report Abuse

And 6.5 sen dividend hehe

Posted by kenken85 > 2021-02-26 12:45 | Report Abuse

only share split need to share suspension.abit disappointed. :(

Posted by i3john2tan > 2021-02-26 12:45 | Report Abuse

Oh yes!!

Posted by newbie8080 > 2021-02-26 12:45 | Report Abuse

Good profit expected for the rainy season

Company not so generous on the dividend.

Next 2Q will be dry season earnings but still expecting at least RM55mil per quarter.

Posted by Lioncity > 2021-02-26 12:49 | Report Abuse

Share split will make it cheaper for new investor to enter, so yes why not.

Posted by wongck > 2021-02-26 13:20 | Report Abuse

No big deal, only share split, dont even declare interim dividend despite impressive profit perfomance

Posted by gemfinder > 2021-02-26 13:23 | Report Abuse

Kedekit company

Posted by i3john2tan > 2021-02-26 13:37 | Report Abuse

Anyway, conclusion is :
1. The highest QR PAT so far
2. share split 1 to 2
3. dividend RM0.065
4. Resources and Packaging division will face some pressure on the operating cost due to higher raw material and freight cost.
5. More solar project to come

End.
(Company show very good improvement, what to u expect?)

Posted by SALAM > 2021-02-26 13:46 | Report Abuse

Dont forget the 6000ha coconut plantation, huge profit otw....CoOil being a health oil and culinary oil is high in demand, one of the major income earner for the Phillipines

Posted by LAC8188 > 2021-02-26 13:46 | Report Abuse

What's the difference btw share split 1 to 2 n bonus 1 for 1...

Posted by TailWagsDog > 2021-02-26 13:51 | Report Abuse

Will it open at 8.50?

Posted by FCM100 > 2021-02-26 13:54 | Report Abuse

Packaging division will drive incremental revenue to the group. By 3Q 2021, capacity for paper bag will grow 200%, flexible package will grow 100%. Will keep an eye on the solar project bid.

Posted by TailWagsDog > 2021-02-26 13:55 | Report Abuse

Bonus would capitalise retained profits, making them non-distributable as dividends.

Posted by chocotop88 > 2021-02-26 14:00 | Report Abuse

simply Q and sold at rm8 last min yesterday while everyone trade at 7.91...should I buy back ...haiz

Posted by Penguin88 > 2021-02-26 14:05 | Report Abuse

Good result, but within expectation. Q4 Energy availability factor shld be alrdy highest and dont expect to see high factor again in near future. I think Growth alrdy fully captured in 2020.

Think twice before making decision. Unless you are too excited of the share split (BI or share split is too common now in Bursa)

Posted by DonWorryBeHappy > 2021-02-26 14:06 | Report Abuse

Belly good

Posted by DonWorryBeHappy > 2021-02-26 14:22 | Report Abuse

My cost becomes 334 soon haha

Posted by chocotop88 > 2021-02-26 14:27 | Report Abuse

true. thanks penguin for advise.

Posted by Jack888 > 2021-02-26 14:43 | Report Abuse

Solar power stock ?

Posted by DonWorryBeHappy > 2021-02-26 14:58 | Report Abuse

Dropping come come

Posted by Jack888 > 2021-02-26 15:04 | Report Abuse

Split news just like a bomb...panic sell..

Posted by Calvin882 > 2021-02-26 15:39 | Report Abuse

Its because investors have higher expectation on the qtr result

Posted by gemfinder > 2021-02-26 16:14 |

Post removed.Why?

Posted by RJ87 > 2021-02-26 16:47 | Report Abuse

No cash how to pay dividend? Compnay pare down their debts by 300 mil u got see or not?

Next year, another 300mil, the Don Sahong damm already fully paid. How long you for ur car? 9 damm years mar. MFCB settle in 2 years.

Ur damm car lose money one. Don Sahong damm generates 50-80mil a quarter. Ur lousy car buy with loan can pay itself?

Posted by FCM100 > 2021-02-26 16:50 | Report Abuse

@RJ87.Chill bro, gemfinder's style is going all counters attacking. Maybe he got shares/wanted to buy cheap, that's why working hard to attack in hoping to bring down the price. Good for us to collect whenever it drops.

Posted by Bullish2021 > 2021-02-26 17:00 | Report Abuse

Better sell the shares and put into FD, can still get 3%. MFCB pays less than 2 %. Boss very kiam siap...the market has spoken ,

Posted by Bullish2021 > 2021-02-26 17:01 | Report Abuse

Shareholders are smarter than boss! Will go to 7.50 by next week

Posted by steelman > 2021-02-26 19:07 | Report Abuse

I believe more good news comming soon, esp after split. Thinking of investing in this counter for long term

Posted by gemfinder > 2021-02-26 22:56 | Report Abuse

Ppl dun like tis management tats y sell down

Posted by Yipman > 2021-02-27 10:33 | Report Abuse

The sell down was pressed down by the expiry of fews call warrants. It's normal. Monday will pick up again with the consistent result and geowth

Posted by pjseow > 2021-02-27 10:41 | Report Abuse

gemfinder, enough lah. You bought mfcb more than a year.ago below 5 and sold a few.months ago at 7.40 . You have made 50 % . If you dont like mfcb now , you can spend time at.those counter you like . You just bought uchitec at 3.31 , go to uchitec and promote lah . I also bought uchitec earlier.

Posted by gemfinder > 2021-02-27 10:45 |

Post removed.Why?

Posted by pjseow > 2021-02-27 11:10 | Report Abuse

MFCB need to prioritise which one to allocate their cash. They have to settle the loan , paying for 2 new packaging factories plus others before paying shareholders dividends. MFCB needs cash to expand its business unlike uchitec.which.is dividend play counter. MFCB.is a growth counter . I think the packaging and solar power business will grow substantially in the next 2 to 3 years

Posted by pputeh > 2021-02-27 12:48 | Report Abuse

Thanks for the info pj. and sharing yr thoughts

Posted by weesiong91 > 2021-02-28 18:00 | Report Abuse

if your feel less devidend better sell it this is growing company no suitable for your，i suggest if need the devidend can buy top glove because the boss agree 70% devidend policy，buy from this price at least 10% by this years

Posted by gemfinder > 2021-02-28 18:19 | Report Abuse

Topglv 70% dividen is forced to do so. The topgl management do watever tactic to suport the share px

Posted by Bullish2021 > 2021-03-01 08:14 | Report Abuse

The surprise sell down after announcing the share split should be seen in the context that price jumped in the last minute of Thursday trading and that price has done very well over the past 12-18 months. However shareholder expected better dividend after patiently waiting for completion of Don Sahong and could not hide their disappointment with the poor dividend of 6.5 sen. Let’s be patient. MFCB has added a lot of value to the long term shareholders.

Posted by kai8994 > 2021-03-01 09:20 | Report Abuse

Bullish2021, to be fair it has increased the div payout by 100%, it paid a interim of 6c already. Full year dividend is 12.5c now compared to 6c last year.

The management has utilised bulk of the cash to settle the debt. I believe dividend could increase further once all the debts are settled this year.

Posted by Bullish2021 > 2021-03-01 09:59 | Report Abuse

Tq for your comments Kai. Dividend payout should be measured as a % of EPS. Based on eps of 65 sens and dividend of 12.5 sen, the payout is less than 20%. By any measure, it is not good. Especially for one which is generating lots of cash and previously dividends were cut during the construction of the dam. There is room to increase dividend. A payout of 50% still leave plenty of cash to reinvest in new business as depreciation of the dam is an expenses which is non cash. Cash flow from operations is RM 530 M ( B4 changes in working capital) as compared with net profit of RM 378M. The company can guide investors by announcing a dividend policy. If not paying now, when will MFCB start to pay ?

Posted by RJ87 > 2021-03-01 10:02 | Report Abuse

Use cash pay dividend first is a dumb thing to do la. Right thing is better focus on paying debt reduce finance cost and increase margin first. This shows how prudent this management. Don't want to take risk. They will settle their debts by this year. If not sooner if cash cow starts producing more milk.

Although, your ticket don't pay dividend now, but reduced RM320mil liability, the total equity of your ticket now worth more.

Sell lo if u don't believe ur ticket is worth more now. Don't regret later.

Posted by Bullish2021 > 2021-03-01 10:04 | Report Abuse

In any case, borrowing is cheap and shareholder fund is expensive. Almost all companies have borrowing in order to reduce the average cost of capital and make the capital structure cost effective. If companies need to have nett cash in their balance sheet in order to pay dividend, 99% of companies won’t be paying dividend

Posted by Fabie > 2021-03-01 10:14 | Report Abuse

Dear @Bullish,

No one analyses Cash flow from operations is RM 530 M ( B4 changes in working capital). In running a business, you need to take working cap into acc too right? As you can see, the company invested back RM190m into the hydropower project and another RM708m repaying debts. Paying more dividends would be like taking a loan to pay shareholders. Although i agree they should come out with a dividend policy soon to attract investors' interest.

Posted by RJ87 > 2021-03-01 12:03 | Report Abuse

I can agree if u wanna sell now first and buy back later when they finally pay dividend or dividend policy...Just dunno what price only that time...

Posted by steady31 > 2021-03-01 15:15 | Report Abuse

By not announcing a dividend of at least 0.10 which ia a mere 20m more, the loss in market caoitalisation is a whopping 300m.

Posted by steady31 > 2021-03-01 15:22 | Report Abuse

To arrest the price slide,may be the company should agree to pay a special dividend of another 0.06 per share to make it attractive for institutional holders. It is not good capital management to keep too much cash reserves which is going to be replenished regularly from the cash cow power plant

Posted by RJ87 > 2021-03-01 19:19 | Report Abuse

Steady31, please do tell what u mean by a lot cash reserve. Do share what’s the actual cash reserve if u know how to read balance sheet.

Posted by steady31 > 2021-03-01 19:41 | Report Abuse

RJ87, MFCB paid 190m towards project costs which is the balance of works done for completion of the power plant in addition to being able to reduce bank borrowings by 88m.This 190m will be replenished by new cash flow from energy sales which is thus available to reduce bank borrowings as well as payment for a higher dividend payment.

Posted by steady31 > 2021-03-01 19:46 | Report Abuse

MFCB's MD bought 200,000 shares on 1st march from open market giving the company a strong endorsement of confidence.This should signal a bottom in the company's share price

Posted by RJ87 > 2021-03-02 09:39 | Report Abuse

steady31, "This 190m will be replenished by new cash flow from energy sales which is thus available to reduce bank borrowings as well as payment for a higher dividend payment."

This line can happen now or it can only happen in future? I understand ur statement correctly, u said MFCB already used the current generate RM190mil to reduce debts and balance used to pay dividend. And only left enough to pay 6.5sen dividend. So have to wait the next RM190 mil right?

You also say "will be" liao...Personally, I prefer to pay debts first. Debt reduce, financing cost reduced. Margin increase. If got things that can invest and generate more profit, better. Then invest first. Then reduced debt first.

Posted by RJ87 > 2021-03-02 10:06 | Report Abuse

ppl should get this logic straight.

If ticket of a company worth RM10. Earnings for the quarter is RM1 per share. If company don't pay dividend, the RM1 per share sit in the company. Equity increases. Your ticket is worth RM11. And if they use RM1 to pay debts. Reduces debts and directly reduce financing cost. Doesn't mean ur ticket worth RM1 less. Because RM10 is based on equity. Equity is asset minus liability. Means asset minus RM1, liability also reduce by RM1. Your ticket is still worth RM11. But next quarter, with reduced debt/financing cost, the earnings could become RM1.20 per share. If they continue to reduce debts, could be RM1.40 the following quarters. Improving PAT and Margin first.

But if company use the earnings to pay dividend, QR reports earnings of RM1 per share, ur ticket become RM11. If they later announce RM1 dividend. The price might bounce to RM12. After ex date. RM1 per share left the company as dividend, ur ticket become RM10, market probably sell lower. Your ticket will worth RM10, no chance to improve earnings by reducing financing cost. But u do hold RM1 cash in ur pocket la. This type of people that kaw beh kaw bu on low dividend is bcos they prefer cash in their pocket than cash in the companies. Cash in companies pocket means ur ticket worth more. But they don't want that. They rather keep the money in their pocket than to allow company improve their earnings and margin.

Those that says that if company pay dividend, then market "will" value at higher PE is NOT COMPLETELY TRUE LA.

Look at TG. Lets say if TG Net Asset worth 10B, 2020 don't pay dividend at all. Whole 20B sit in his account. At minimum, TG is worth 30B. No way market can tank it's market cap below 30B. But now, he spent all TG cash on dividend. And without the cash, it's net asset sit on 10B. Market merciless tank it's market anywhere below 30B as it please. MONEY LEFT THE COMPANY. So u can no longer say the compnay worth 30B liao. In a way, ur ticket worth less.

So, decide what type of investor u are lo. Company will always prioritize ways to improve earnings and margin. Makes their ticket worth more. After all, they are the majority shareholders of the company. And if you are a long term investor this should be priority.

But if you see management find ways to cash out. U also better take profit and quickly ciaoz.
Cos, management themselves are dropping the ball. Most of the time, when company declare big ass dividend. What follows is company director buy back their share from open market. Cos, normally....market simply sell after dividend entitlement. Very funny one. Market see short term ma. They will be thinking, I don't want my money stuck here. I can make else where...But it's most of the time lose elsewhere la. =D