Posted by 逍遥子 > 2013-08-28 15:35 | Report Abuse

CPO slowly gain momentum, time to collect slowly.

http://www.theedgemalaysia.com/business-news/252079-palm-oil-poised-for-best-run-since-2010-on-crude-oil-soybeans-.html

Posted by 逍遥子 > 2013-08-28 17:32 | Report Abuse

MKH just posted a solid Qtr results :

Revenue : $185 mils
PAT : 32 mils +
EPS : 9.47 cents

Posted by 逍遥子 > 2013-08-28 18:27 | Report Abuse

(i) Third quarter ended 30 June 2013
The Group recorded higher revenue and profit before tax from continuing operations for the current quarter of RM185.4 million and RM44.3 million as compared to the preceding year corresponding quarter of RM139.0 million and RM20.0 million respectively. The increase in Group’s revenue by 33% and profit before tax by 122% were mainly contributed by the plantation division arising from its increase in sales of crude palm oil (“CPO”) and palm kernel and the property and construction division from the on-going and new development projects.

(ii) Current year-to-date (YTD) ended 30 June 2013 by Segments

Property and construction
This division recorded higher revenue and profit before tax of RM309.3 million and RM80.1 million for the current YTD as compared to the preceding YTD of RM274.1 million and RM67.0 million respectively. The increase in revenue and profit before tax was mainly due to higher percentage of profit recognition of on-going and new development projects namely, Pelangi Semenyih 2, Saville@Melawati, Pelangi Seri Alam, Saville@the Park, Bangsar and Mewah 9 Residence and recognition of bargain purchase gain on acquisition of a subsidiary company amounted to RM4.7 million.
As at 30.06.2013, the Group has locked-in unbilled sales value of RM518.5 million from which attributed sales revenue and profits will be recognised progressively as their development percentage of completion progresses.

Hotel and property investment
This division recorded higher revenue and profit before tax of RM24.5 million and RM11.1 million for the current YTD as compared to the preceding YTD of RM22.1 million and RM8.6 million respectively. The increase in revenue and profit before tax was mainly due to increase in average rental rates.

Trading
This division recorded higher revenue of RM51.4 million as compared to the preceding YTD of RM48.4 million. Despite the increase in revenue, the profit before tax was maintained at RM3.4 million due to higher product mixed of low profit margin building materials.

Manufacturing
This division recorded lower revenue and profit before tax of RM7.5 million and RM146,000 for the current YTD as compared to the preceding YTD of RM10.1 million and RM1.0 million respectively. The lower revenue and profit before tax was mainly due to insufficient sales revenue and gross profit to absorb certain fixed production and administrative overheads.

Plantation
This division recorded CPO and palm kernel revenue totaling RM76.1 million from both matured and immatured palms and profit before tax of RM11.7 million for the current YTD as compared to the preceding YTD revenue of RM9.8 million and loss before tax of RM11.9 million. The profit before tax of RM11.7 million was achieved after charging inter-company interest expenses of RM7.4 million (preceeding YTD: RM Nil)

Investment holding
This division revenue and profit before tax/(loss before tax) were mainly derived from the inter- group transactions on management fees and interest billings and charging which were eliminated at the Group level.

Discontinued operations: Non-Halal Livestock farming, food processing and retail
The Group has completed the disposal of this Non-Halal division on 16 January 2012, there were no revenue and operation profit contribution from this division for the current quarter.

Posted by musang_foxking > 2013-08-28 23:06 | Report Abuse

gov to consider to increase tax of selling house/RGPT-latest...to curb rising price and speculation

Posted by Aero1 > 2013-08-29 09:26 | Report Abuse

羊毛出在羊身上 .. RPGT may be for curbing speculation but I doubt on the rising price? It was not effective previous round .. seller of the houses in KL and PJ will built it in, simply because of location and supply. The issue involves many aspects ...

Posted by Aero1 > 2013-08-29 09:45 | Report Abuse

MKH Boulevard non-bumi units fully sold .. a confidence boost to MKH to continue to pursue its 'high rise' ambitious in Kajang. GDV of more than 200mil on a small piece of land .. higher margin

Posted by 逍遥子 > 2013-08-29 10:01 | Report Abuse

if MKH can sustain the growth and give high dividend, this counter can test $3 in mid term, provided the market sentiment is stable.

Posted by Aero1 > 2013-08-29 10:11 | Report Abuse

MKH has quietly spent more than 100mil this year on landbanking .. to sustain future earnings. Increasing trend on unbilled sales .. at 518mil with potential 25% margin. MKH is expected to start launching development projects with total GDV of 2.2bil in Q4 2013 .. poised for stronger growth next year.

Posted by Aero1 > 2013-08-29 15:10 | Report Abuse

MKH's plantation results were very impressive. With similar revenue in palm oil plantation (70mil+), even QL incurred losses. Its operating margin is comparable to those very well managed estates.

Considering young aged profile of the trees (may be in the range of 2 to 3 ton CPO per ha) and low CPO price at the moment, this division has ample room to significantly enhance MKH's profitability. MKH said its CPO mill capacity is being upgraded from 60ton to 90ton per hour.

Posted by Aero1 > 2013-08-30 12:51 | Report Abuse

Chen has bought in again ..
If next year profit up by more than 30%, EPS 45sen is foreseen. With PE 8 times, that is 3.6 target.

Posted by Aero1 > 2013-09-10 10:40 | Report Abuse

you guys notice it? MKH has opted to raising its profile in the TV. Previously - Work hard talk less. Now - 'Branding' is part of the hard work. Bravo!

Posted by 2862862 > 2013-09-10 13:30 | Report Abuse

Aero, now i slowly collect it WA. He He He i believe when palm oil up again this counter RM 5 :) keep under pillow ya

Posted by Ooi Cheng Kee > 2013-09-10 14:52 | Report Abuse

The warrant is too expensive.

Posted by Aero1 > 2013-09-10 15:00 | Report Abuse

2862862 if your TP is RM5, then the warrant price is 5.00-2.26 = 2.74 Wow! :-)
I look for TP RM3.60 niah ..

Posted by 逍遥子 > 2013-09-10 15:33 | Report Abuse

Slowly..... but steady !!

Posted by 2862862 > 2013-09-10 17:55 | Report Abuse

Hi Cheng Kee, after my study MKH-WA is the fair value of Warrent among all plantation with great potential to growth. Base on the Housing dev and the "just start Harvest!" On palm oil i believe double digit growth start on 4 quarter on wards. Of cos new policy on housing won't affected by new rules they build middle class house :)

Posted by Aero1 > 2013-09-12 11:09 | Report Abuse

MKH should disclose more information about its plantation such as tonnage, yield and CPO price realised .. if earnings from this division is expected to rival or exceed that of property. If not required, do it voluntarily lah.

Posted by 逍遥子 > 2013-09-12 11:23 | Report Abuse

Some people is slowly collecting this undervalue gem, so until they are done only then they will disclose all this good news. Anyway as long as they can sustain their growth and hopefully they will declare higher dividend, then $3 is within the reach in mid term.
12/09/2013 11:22

Posted by Aero1 > 2013-09-12 11:43 | Report Abuse

Probably ya .. probably now they want to protray MKH more as property player .. which in a way easy for people to understand. Q4 should see higher FFB a general trend before taking into consideration more mature trees in the MKH case.

Posted by 逍遥子 > 2013-09-12 12:05 | Report Abuse

Now is the waiting game....... :)

Posted by jkhoo99 > 2013-09-12 20:23 | Report Abuse

keep waiting...

Posted by 2862862 > 2013-09-12 21:06 | Report Abuse

I keep collecting the MKH-WA :) wait it hit RM 5. LoL

Posted by bsngpg > 2013-09-16 23:28 | Report Abuse

沉睡中的巨龙=美景控股(MKH-6114)[上篇] - 小郭

http://klse.i3investor.com/blogs/kianweiaritcles/36837.jsp

I am monitoring, may join you soon.

Posted by 2862862 > 2013-09-17 13:22 | Report Abuse

Bsngpg, it won't fail u if go for long term :) I keep little hope soon become mountain ! LoL

Posted by Aero1 > 2013-09-17 14:59 | Report Abuse

bsngpg 即将腾飞的巨龙美景控股(MKH-6114)[中篇]

Posted by bsngpg > 2013-09-18 00:11 | Report Abuse

2862862 and Aero1: appreciate your info.

I have two concerns:

i) I like MKH for its prospective huge earning from plantation. But I do not know how much profit it can get from its plantation. Based on my rough estimation (unscientific method), the maximum profit from CPO is 69 million/year if all trees enter into 6 yr and above, with CPO at 2300, cost at 1300, FFB 22 ton/hectare, extraction rate 21%. But the actual case is that only trees planted in 2008(3500 hectares) may deliver optimum fruit and RM16mil profit/yr. Trees planted on 2009 and onwards are still young to have high yield on fruit. I am a layman and have limitation to know this kind of info i.e. profit from plantation for each of the upcoming year. Hopeful somebody can shed some light. Thks.

ii) I am not so keen on its property biz thus do not pay much attention on it as I have had big investment on Mahsing already for property biz.

I cannot find Analyst coverage on this company. Can anyone share one ?

Thks

Posted by Aero1 > 2013-09-18 10:27 | Report Abuse

Buying into MKH is still property exposure. Its plantation distinguished it from other property players which I like it. Be it plantation or property, land being a crucial feedstock. Still MKH could increase it plantation landbank but is costly relatively to MKH size. I like to see MKH to actively seize its property's profit which can then be reinvested into palm oil. The successful launch and good take-up rate of the high rise MKH Boulevard has boosted confidence in the pursuit of high rise ambitions in Kajang.
Thanks bsngpg I could use the formula to compute when CPO price rises :-)

Posted by Aero1 > 2013-09-18 14:27 | Report Abuse

Major shareholders Chen members consolidate their shareholdings under one roof. Is this normal? Why? Thanks

Posted by Aero1 > 2013-09-25 10:47 | Report Abuse

no advertisement only phonecalls and sms ... 311 units of the PINES link houses in the Hillpark township were sold out. 412 units of the CHERRY superlink and link houses with higher GDV are now open for pre-booking. Entire GDV for the two projects may be close to RM500 mil. No wonder the directors keep buying ..

Posted by 逍遥子 > 2013-09-25 11:17 | Report Abuse

someone is collecting big time from $2.5+ .... and even last few day the collection is done in the region of $2.6 ! I guess it is matter of time, this counter will have some action !!

Posted by 逍遥子 > 2013-09-26 15:42 | Report Abuse

Bila orang tak mau, kita beli,
Bila orang gila sapu, kita bagi ....

Ka ka ka

Posted by Aero1 > 2013-10-03 10:25 | Report Abuse

1. That's how to see it. At the low cycle of CPO price, IOI bought Unico for RM1 bil. Unico, a pure plantation company, owns planted 12,700 ha in Sabah. IOI is known to be a prudent buyer.
2. MKH owns planted 15,000 ha East Kalimantan and currently has market capitalisation of RM908 mil.
3. Simple comparision - MKH's other assets, which have bigger value than the plantation segment, have no value.
4. Of course you need to consider other factors such as planted area age profile and yields which I think MKH has an advantage to overtake Unico in the foreseeable future.

Posted by Aero1 > 2013-10-03 12:22 | Report Abuse

"Going forward, we will strive to achieve an even contribution between our two core businesses of property development and oil palm plantation,” Chen, the CEO said recently."
Good! Please disclose more information about your plantation such as age profile and FFB and CPO yields.

Posted by Aero1 > 2013-10-07 09:38 | Report Abuse

MKH Bhd, an established property developer in Kajang, recently unveiled part of its 550 acre integrated township, Hillpark Shah Alam, to the public.

The new integrated township, with an estimated GDV of RM1.3 billion, comprises double storey link houses, superlinks, semi-dees, bungalows, shop offices, service apartments, mixed commercial component, a proposed school and a police station.

“Due to the overwhelming response, we opened our second phase, Cherry, for sale, which also received an encouraging response from the public,” said MKH managing director Tan Sri Eddy Chen.

“Hillpark Shah Alam is strategically located in the Northern Corridor of Shah Alam, with easy access to six major highways; Latar Expressway, GCE, NKVE, DASH, Federal Highway and the Puncak Alam Highway. The distance is just 20 minutes away from Shah Alam, Petaling Jaya and Kuala Lumpur,” added Chen.

The project is near University Teknologi Mara, an existing McDonalds, medical centre and an Econsave supermarket. There are plans for a hypermarket to be built soon for the convenience of residents.

Chen said, besides its strategic location, the township was designed with nature in mind throughout the planning stages and caters for people from all stages of life. For those seeking active lifestyles, there will be mountain bike tracks, jogging tracks and innovative playground among other features.

Thematic parks such as Herb Farm, English Orchard, Spanish Courtyard and Japanese Rock Garden within the development will offer residents havens from the daily grind of working life

MKH is keen on making Hillpark Shah Alam a green development.

The company says what set its township apart from other nature-inspired development is the sheer size of its Forest Park and Central Lake Park, providing 50 acres of greenery for all residents to enjoy.

This excludes the neighbourhood parks that will be built in each precinct. As part of the project’s green design, all the units will be built in a north-south orientation to reduce the heat from the sun which effectively lowering the energy required to cool houses.

As safety is also of paramount importance, MKH has incorporated CCTV coverage into the development and perimeter fencing along pedestrian walkways.

The group believes that this latest addition to its growing list of developments will help to meet the high demand for landed properties in Malaysia as well as introducing MKH to a new and wider market in the Northern Klang Valley.

Pines, the first phase of the township, offers 311 double-storey link homes with built-up areas ranging from 20ft by 70ft to 22ft by 70ft. The second phase, Cherry, offers 412 double-storey link and superlink homes that range in size from 22ft by 65ft to 26ft by 80ft. Another phase called Olive consists of 343 22ft by 75ft double-storey link houses.

These units are targeted at house buyers who want larger homes for a growing family. The units in the township start from RM440,000.

“Considering the great value we are offering to the market, the development has attracted young families and first-time buyers,” said Chen, adding that Hillpark Shah Alam has registered over 7,000 interested buyers to date.

Following the successful launch of the Pines phase, Cherry and Olive are now open for sale, with more phases to follow. While both phases will feature their own parks, the more exclusive Cherry phase will have extra greenery in the shape of the Pines Linear Park, Neighbourhood Park, Central Lake Park and the Forest Park.

“We expect Cherry to enjoy quick sales when it is officially launched for sale,” added Chen.

~The Star~ 5 October 2013

Posted by calvinkok > 2013-10-13 13:45 | Report Abuse

This is good counter but not moving much.....

Posted by shrobin > 2013-10-17 11:45 | Report Abuse

If you read MKH's latest Q3 report, In the business segmental section, you will noticed the revenue for plantation has shot up to about 76 millions, Q2 was about 43 millions. My estimate for Q4 is about 110 millions. Q3 margin is about 27% not including interest expenses. Rightly, margin should improves with revenue increases. You would also expect interest expenses to reduce as cash flow is also turning positive for MKH.

By 2017, the trees ages are 5 to 9 years. The average FFB yield should start peaking. Many plantations has low average FFB yield due to wide tree ages spread. In case for MKH, the tree age spread is narrow, within 4 years (the planting started in 2008 and completed in 2011). In this case, a higher average FFB yield of 25 to 28 tons can be expected. Oil extraction rate of 21% can be expected.

Depending on CPO price and MKH's average production cost per ton, an efficient house can still have a margin of RM1,000/ton @ RM2,300 CPO price. Read United Plantation 2012 annual report for margin references.

Posted by bsngpg > 2013-10-17 12:14 | Report Abuse

Thank you, I like your comment. I have more or less the same thinking. That is why it is under my radar for close monitoring. Thks again.

Posted by shrobin > 2013-10-17 14:57 | Report Abuse

bsngpg, you are most welcome!

Posted by bsngpg > 2013-10-17 22:04 | Report Abuse

The Star : Thursday October 17, 2013 MYT 5:40:07 PM
MKH buys RM50mil land, plans residential development

KUALA LUMPUR: MKH Bhd had on Thursday bought a 64-acre land off Semenyih, Ulu Langat in Selangor for RM50.65mil and plans to develop it into a residential and commercial area.
In a Bursa filing on Thursday, the group said the land was bought through MKH’s unit Kajang Resources Corporation Sdn Bhd’s agent Petik Mekar Sdn Bhd.
“Kajang Resources has appointed Petik Mekar to represent and act on behalf of Kajang Resources to negotiate and purchase the land from several co-owners of the land.
“Kajang Resources will provide Petik Mekar with the required funds for the purchase of the land,” it said.
The group said the planned development has an estimated total gross development value of RM300mil over a period of about four years.
It noted source of financing for the purchase is from internally generated funds and/or bank borrowings.

Posted by Aero1 > 2013-10-18 09:19 | Report Abuse

This freehold land serves to compliment its Kajang 2 commercial development by putting in more population ..

Posted by Aero1 > 2013-10-21 11:38 | Report Abuse

I see it this way... at the low cycle of CPO price, IOI bought Unico for RM1 bil. Unico, a pure plantation company, owns planted 12,700 ha in Sabah. IOI is known to be a prudent buyer. MKH owns planted 15,000 ha East Kalimantan and currently has market capitalisation of less than RM1 bil. Simple comparision - market has not attributed any value to other assets in the MKH Group .. Why?

Posted by shrobin > 2013-10-21 14:28 | Report Abuse

If MKH continue to report good earnings in the next few quarters, the market will definitely re rate its share price. MKH is still a relatively low profile counter. If earnings keep improving and dividend kept at least around FD level, it will definitely attract many investors attention. One way share holders can help is to participate in the next AGM and request the board to consider increasing the dividend to 8 cents/share instead of the usual 5 cents/share. At current share price of 2.60, 8 cents will give roughly a dividend yield about 3%. Good dividend yield is necessary to support valuation.

Posted by Aero1 > 2013-10-21 15:53 | Report Abuse

This round MKH may have to hike its dividend to make warrants conversion more attractive. Isn't that one of the things to do for issuing the warrants? I agree .. shrobin that higher dividend rate is imminent .. otherwise MKH will incur higher borrowing cost.

Posted by 逍遥子 > 2013-10-21 16:43 | Report Abuse

Short term I do not think that they will raise the dividend pay out as they have quite a bit of debts, as long as they can sustain the revenue and profit, besides the profit/cash generated from the operation can reduce their debts ratio then long/mid term it should be positive.

CPO price is gradually up, as at today is $2400++ !

This counter fundamental value needs time to be unlocked.

Posted by Aero1 > 2013-10-24 16:36 | Report Abuse

MKH Boulevard
Property Type:
Serviced Apartments & Boutique Shop Offices

Built-Up Area :
Type A1/A1a Built-Up 575 sq.ft: 126 units
Type B1/B1a Built-Up 840 sq.ft: 52 units
Type B2 Built-Up 840 sq.ft (corner units): 21 units
Type B3 Built-Up 840 sq.ft (corner units): 31 units
Type B2a Built-Up 870 sq.ft (corner units): 26 units
Type C1/C1a Built-Up 1,094 sq.ft: 52 units

Total Units :
Serviced Apartment: 308 units
Shop Offices: 25 lots (3 storey) & 5 lots (6 storey)

Status:
Serviced Apartments : Bumi Units Only
Shop Offices : Limited Units Available

Posted by 逍遥子 > 2013-11-06 11:16 | Report Abuse

Engine sudah warm up a bit..... Ha ha

Posted by bsngpg > 2013-11-06 11:49 | Report Abuse

I bought on last Friday.

Posted by 逍遥子 > 2013-11-06 12:33 | Report Abuse

4th Qtr results coming by end of this month, I expect should be quite positive, hopefully the net profit can sustain at around 32 mils+ (EPS of 9 cents+) then the whole financial year net profit will be 110 mils+ (EPS of 32/33 cents) !

Mid term TP $3.

Keep the figures crossing.

Posted by PJTrader > 2013-11-06 15:01 |

Post removed.Why?

Posted by 逍遥子 > 2013-11-06 17:33 | Report Abuse

It seems like the coming Qtr results should be very good.