Many know MKH as a property developer. But the Malaysia property sector had been so over the past 6 to 8 years. Fortunately for MKH it ventured into oil palm plantations in mid 2000s.
If you look at the chart (refer to https://i.postimg.cc/vZWWskv4/MKH-EBIT.png) you can see that while the EBIT contribution from the property development segment had been declining since 2016, that from the plantation segment had been growing. In 2022, the plantation segment accounted for about half of MKH’s EBIT.
So, what does it mean for an investor? • When the property sector recovers, we can expect better overall profit. • Property and oil palm sectors are cyclical but they are affected by different factors. So MKH performance will be less cyclical.
The estates’ strategic positioning within a 100-kilometre radius of Nusantara, the new capital city of Indonesia, places MKHOP in an advantageous position to leverage on the future capital city’s growth. The group is poised to benefit from the economic transformation of East Kalimantan, driven by the development of Nusantara," Chen said in a statement.
Based on an indicative IPO price of 60 sen per share (final IPO price to be determined at a later stage), MKHOP aims to raise RM132 million from the public issue, while the offer for sale will raise RM18.4 million, bringing the total fundraising exercise to RM150.4 million.
Distribution of 82,487,981 ordinary shares in MKH Oil Palm (East Kalimantan) Berhad ("MKHOP") ("MKHOP Shares"), representing approximately 10.3% of MKH Berhad's (the "Company" or "MKH") equity interest in MKHOP to the entitled shareholders of the Company by way of dividend-in-specie, on the basis of 1 MKHOP Share for every 7 MKH shares held by the entitled shareholders, on the entitlement date
Entitlement Type: Dividend In Specie Entitlement Date and Time: 15/02/2024 05:00 PM Year Ending/Period Ending/Ended Date: 30/09/2024 EX Date: 14/02/2024
have they determined the MKHOP's IPO price already ? let say if IPO priced at = RM1.21 MKH traded at = RM1.47 theoretical ex-price for MKH is around 1.29
Top Pick. Our favorite within the sector is MKH as we maintain a favorable perspective because of their emphasis on providing affordable homes priced below RM500k and their distinctive transit-oriented developments are expected to continue drawing interest from potential buyers. Additionally, the group's nearly net-cash position offers robust flexibility regarding its financing options, especially in the event of potential expansion in their primary business segments.
When Bursa property development MKH ventured into the plantation sector in 2008, little did it know that it was to provide a lifeline to the company a decade latter.
Prior to 2016, MKH property development segment was the key revenue and earnings contributor. But since then, the Malaysian property market began to soften and the contribution from the property development segment began to decline.
At its 2016 peak, the property development and construction segment contributed nearly RM 250 million EBIT but this declined to RM 70 million in 2021.
On the other hand while the plantation segment performance was cyclical, its 2021 EBIT of RM 110 million was better than the 2016 RM 90 million EBIT. You can see from the chart that without the plantation business, MKH performance would have been worse.
When Bursa property development MKH ventured into the plantation sector in 2008, little did it know that it was to provide a lifeline to the company a decade latter.
Prior to 2016, MKH property development segment was the key revenue and earnings contributor. But since then, the Malaysian property market began to soften and the contribution from the property development segment began to decline.
At its 2016 peak, the property development and construction segment contributed nearly RM 250 million EBIT but this declined to RM 70 million in 2021.
On the other hand while the plantation segment performance was cyclical, its 2021 EBIT of RM 110 million was better than the 2016 RM 90 million EBIT. You can see from the chart that without the plantation business, MKH performance would have been worse.
1.00 Singapore Dollar = 3.3023933 Malaysian Ringgit I bought this stock because it was very cheap. But it just dip and dip. Other property stocks doing well. Any Malaysians know what is holding back this stock?
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....
Dehcomic01
351 posts
Posted by Dehcomic01 > 2023-09-17 08:56 | Report Abuse
Plantations saved MKH.
Many know MKH as a property developer. But the Malaysia property sector had been so over the past 6 to 8 years. Fortunately for MKH it ventured into oil palm plantations in mid 2000s.
If you look at the chart (refer to https://i.postimg.cc/vZWWskv4/MKH-EBIT.png) you can see that while the EBIT contribution from the property development segment had been declining since 2016, that from the plantation segment had been growing. In 2022, the plantation segment accounted for about half of MKH’s EBIT.
So, what does it mean for an investor?
• When the property sector recovers, we can expect better overall profit.
• Property and oil palm sectors are cyclical but they are affected by different factors. So MKH performance will be less cyclical.
For more insights into the Bursa plantation sector, refer to https://www.youtube.com/watch?v=9KhboTCMdEg