Posted by CK > 2018-11-30 18:15 | Report Abuse

Bad Qtr result......

Posted by commonsense > 2018-12-01 07:13 | Report Abuse

4Q18 result was lower than expectation. PAT was lower mainly due to the high tax rate of 66% of PBT. That being said PBT of RM26.1mil is still lower compared to 4Q17 RM26.6mil.

Lower PBT mainly from disappointing result of plantation division which recorded a loss of -RM5.4mil due to forex loss of -RM9.8mil and lower average selling price of CPO and palm Kernel.

There was one exceptional item that caught my eye. A land donation amounting to RM9.5mil. If you were to exclude this, PBT would have been RM35.6mil.

At current price and based on a trailing 12 month PATAMI of RM69mil, the company is currently being valued at 9.9x PE. However given the below par result of 4Q18, i am not sure if PATAMI will sustain at that level for FY19.

Would suggest to wait for next quarter result before making decision to buy into the company.

For those that are interested in Property stocks, you could look at both Ewein and Eupe. Valuations are low in terms of PE and just like MKH, they are also trading at a discount to their book value. Both are expected to post better profit results for coming quarters.

For plantation stock, i have yet to seen any stocks that are currently trading at low PE (after excluding none recurring items) but i think this is normal given the current market condition where CPO is currently at the bottom. Feel free to suggest if you manage to find any.

Other stock that you might want to consider is MBMR which provide direct exposure to Perodua via its 22.6% interest in the company. Valuation is low at 5.5x PE (target 2018 PATAMI of RM145mil. 9m PATAMI is already at RM106 mil). PB is less than 0.5x.

Regards.

Posted by lcng123 > 2018-12-01 12:44 | Report Abuse

By looking at rupiah appreciated against USD and Ringgit 4%-5%, unrealised forex gain about RM10mil will be expected.

Posted by Aero1 > 2018-12-01 16:39 | Report Abuse

Interest expense reduced a lot

Posted by CK > 2018-12-02 10:57 | Report Abuse

Hmm....stay at 3.125....dunno how long can leave this .....

Posted by kenken85 > 2018-12-03 11:27 | Report Abuse

I m waiting for the beloved analyst to lower down his target price further. haha

Posted by Aero1 > 2018-12-06 10:02 | Report Abuse

The quality of its assets improves ..
1. Indonesia's palm oil levy relaxed
2. High over a billion ringgit unbilled properties
3. Higher free cash flow with lower borrowings and capex
4. Some properties matured to be turned into property investment
5. Positive repercussion from the land donation to build a Chinese school
6. Company shares buyback
7. Continuous support from key shareholder Public Bank as vote of confidence
8. Directors have been buying its shares

Posted by lcng123 > 2018-12-06 14:14 | Report Abuse

I am waiting it's share price to drop further.... RM1.20 damn cheap

Posted by shareinvestor88 > 2018-12-08 11:18 | Report Abuse

SELL TP 50c

Posted by Aero1 > 2019-01-02 08:47 | Report Abuse

http://www.theedgemarkets.com/article/india-cuts-tax-palm-oil-imports-malaysia-gain-most

Posted by Yap KimTeck > 2019-01-07 15:22 | Report Abuse

haha. looks like MKH top Mgt extremely hungry. few hundreds units also want.

Posted by Yap KimTeck > 2019-01-07 15:23 | Report Abuse

BTW. when is the AGM and annoncement for Dividen ?

Posted by enid888 > 2019-01-09 00:02 | Report Abuse

The property market is expected to improve this year. Maybank IB expects that the ongoing "National Home Ownership Campaign" between 1/1/19 to 30/6/19 is going to increase the housing sales substantially.

MKH was one of the key organiser in the last "National Home Ownership Campaign" in 1999. The 1999 campaign had seen the overall property market sales increased by 36% as compared to 1998. MKH will participate in this campaign in a big way.


http://www.sinchew.com.my/node/1828733/%E9%94%80%E5%94%AE%E8%A7%A6%E5%BA%95-%E5%88%A9%E7%A9%BA%E5%8F%8D%E6%98%A0%E2%80%A7%E4%BA%A7%E4%B8%9A%E8%82%A1%E6%9C%89%E6%9C%9B%E6%89%AD%E8%BD%AC%E5%8A%A3%E5%8A%BF

Posted by enid888 > 2019-01-09 00:04 | Report Abuse

Now is the best time to buy property counters like MKH at the bottom of the property cycle.

Posted by Aero1 > 2019-01-09 08:47 | Report Abuse

A developer that comes a long way ...

Posted by enid888 > 2019-01-11 13:03 | Report Abuse

National Homeownership campaign to be held in KL Convention Centre from 1/3/19 to 3/3/19.

http://www.theedgemarkets.com/article/national-homeownership-campaign-...

Posted by enid888 > 2019-01-12 13:32 | Report Abuse

Major IBs and fund houses had been negative about property stocks for the last 4 years but the property stocks kept reporting good results with single digit PE for many of them. Were the IBs and fund houses wrong? I think they are and their analysis are too crude and coarse. Just simply say "property market not good, so property counters not good". Aunties in pasar also can give this kind of analysis.

If you check back the IBs' and fund houses' recommendations for the last 4 years, they recommended Oil & Gas and Construction counters. Many people loaded onto their lorries and ended up in Holland.

Posted by enid888 > 2019-01-12 13:47 | Report Abuse

Look at their recommendations, UMWOnG (Velesto), Armada, Icon, SapuraEnergy, Perisai, GKent, MRCB and Felda before the share prices tumbled. All are either "Strong Buy", "Buy" or "Hold". May be they gave these ratings to benefit themselves.

Posted by Aero1 > 2019-01-14 08:37 | Report Abuse

Spot on enid888. IBs only looking for story to tell. Story not good Sorry.
Some property counters are paying better dividend.
Properties are necessity!

Posted by Aero1 > 2019-01-17 14:11 | Report Abuse

When people dump you collect. Property industry still not in right time. Property industry not cyclical will stay low for many years to come. Nevermind the company is solid. Nevermind the company has 20 years unbroken profit record. Nevermind the company still pays dividend. Still property is not out of wood yet. Just dump. When people dump you collect. Happy investing!

Posted by IbrahimBinFareed > 2019-01-17 14:24 | Report Abuse

property is for holding long term?

Posted by Icon8888 > 2019-01-18 09:25 | Report Abuse

I am in

contrarian

Posted by TheContrarian > 2019-01-18 09:53 | Report Abuse

I am NOT IN!

Posted by Aero1 > 2019-01-18 17:32 | Report Abuse

只欠東風!

Posted by Icon8888 > 2019-01-18 18:38 | Report Abuse

只欠 CPO

Posted by Icon8888 > 2019-01-18 18:41 | Report Abuse

September 2018 quarter commentaries :

Despite the increase in revenue for the current quarter of RM333.5 million as compared to the preceding quarter of RM228.4 million, the group recorded lower profit before tax of RM26.1 million as compared to the preceding quarter of RM31.2 million mainly due to lower CPO sales volume of 26,500 MT and lower average selling price of RM1,872 per MT in the current quarter as compared to 33,000 MT and RM2,173 per MT respectively in the preceding quarter.

Posted by Icon8888 > 2019-01-18 18:42 | Report Abuse

In September 2018 quarter, CPO price achieved RM1,872 per MT

Now is RM2,223 per MT

next q should be good

Posted by Icon8888 > 2019-01-18 18:44 | Report Abuse

September 2018 quarter lousy result also due to forex loss RM10 mil, land donation RM9 mil

those are not recurrent

Posted by Icon8888 > 2019-01-18 18:46 | Report Abuse

recent lousy performance and CPO down cycle provides opportunities to accumulate on the cheap

one day, CPO price will recover

so will profitability

that is why it is a contrarian move

Posted by qqq3 > 2019-01-18 18:54 | Report Abuse

seems this I con with his BIMB, Affin, MKH and Armada is a good contrarian , with him, u either get second last or second from the top.

Posted by Icon8888 > 2019-01-18 18:57 | Report Abuse

Oh no offence taken

These few stocks are indeed quite dinosaur

I pick them because I have already got adequate high potential high beta stocks

Posted by Icon8888 > 2019-01-18 19:01 | Report Abuse

I have enough high beta to deliver good performance in a hot market, so I am now looking into Low profile stocks that can’t hurt much in the event that market turns sour

More of “think of safety first, only then return” kind of stocks

Posted by Icon8888 > 2019-01-18 19:02 | Report Abuse

Armada is a good one

Cost 16 Sen

CIMB buy call target price 70 Sen

Posted by Choivo Capital > 2019-01-18 19:20 | Report Abuse

I wonder why all these companies like to diversify into CPO. Diversify into Musang King can ah.

Posted by Icon8888 > 2019-01-18 19:21 | Report Abuse

oh oh, here come Jon Choivo

and this round he is trying to crack jokes...

Posted by Connie555 > 2019-01-18 20:06 | Report Abuse

Ask him go and run a company himself....majority shareholder will feel sick listen to him....

Posted by enid888 > 2019-01-19 09:52 | Report Abuse

At CPO price of RM2,223 per MT, MKH is still making decent profit. Their cost should be around RM1,500 per MT.

Posted by sowsc1987 > 2019-01-19 10:24 | Report Abuse

wao....icon8888 sifu also look good this stock....good sign~~i have survey all mkh project....all have good location and good take up rate except saville d'island(almost TOD) concept.....mkh oil plam is at flat land ,the production is higer than hill land ,the valuation of the land almost now the mkh market value.......can say buy 1 free 1

Posted by Icon8888 > 2019-01-19 10:28 | Report Abuse

In today The Star, expert believe average 2019 CPO could be RM2,500

If that happens, you won’t be able to buy mkh at 1.25 anymore

Correct ?

Posted by Icon8888 > 2019-01-19 10:29 | Report Abuse

I have a soft spot for well run companies like this that have been sold down due to cyclical factor

Posted by Icon8888 > 2019-01-19 10:34 | Report Abuse

According to latest quarter report, property unbilled sales RM1 bil

In FY2018, total property development revenue RM700 mil

Meaning in coming FY2019, property profit no problem

Posted by sowsc1987 > 2019-01-19 10:46 | Report Abuse

2018,mkh much project still at early stage development .....2019 the property contribution will more visibility......now kajang area not much land for build landed property,kajang 2 a mkh diamond.....kajang east phase 1 a feng sui land ,located at kajang east highest place....

Posted by Icon8888 > 2019-01-19 10:47 | Report Abuse

thank you sifu. You seem quite familiar. I follow you dumb dumb hold

Posted by sowsc1987 > 2019-01-19 10:48 | Report Abuse

kajang east phase 1 project profit very high.....not need build show room ,low land price and low expense.....

Posted by Icon8888 > 2019-01-19 11:05 | Report Abuse

16,000 heactares planted area produce 478,000 MT FFB

30 MT per hectare

Posted by sowsc1987 > 2019-01-19 11:07 | Report Abuse

yes...well managment....much malaysia oil palm company also cannot achive it

Posted by Icon8888 > 2019-01-19 11:11 | Report Abuse

I heard because their Indonesia’s land got volcanic soil

Very fertile

Posted by sowsc1987 > 2019-01-19 11:16 | Report Abuse

that land around rain land,oil palm need much water, second is flat land ,third is soil and managment

Posted by sowsc1987 > 2019-01-19 11:24 | Report Abuse

Q1 2019 have currency gain ,at least 10 million

Posted by Icon8888 > 2019-01-19 11:25 | Report Abuse

The more we talk the more I like

Next week buy more