i buy already dat day. my friend was hod. he left becoz toxic power struggle. one daughter want full control. get him to find prob with other hods. so he was black sheep. dunno wai no see pic of dat daughter in sinchew.
With unbilled sale of 1 billion, rising CPO price and rupiah strengthened vs usd, this quarter should be better than last year quarter and next quarter will be even better when it realizes higher CPO price.
JAPANESE INSPIRED LIVING MIRAI Residences is a joint venture project between MKH Berhad and Panasonic. MIRAI Residences provides you and your family a Japanese-inspired tranquil living boasting 24-hour 6 tier security system, 159,000 sqft facilities podium and first-in-Malaysia home with Energy Recovery Ventilator (ERV) System. This home improves the quality of living by providing Quality Air For Life through cutting edge technology of air ventilation supplied by Panasonic. A zen lifestyle without sacrificing convenience, MIRAI Residences is situated in Kajang’s 2 with easy access to your daily needs such as shopping malls, train stations, education hubs, medical centres and surrounding highways for easy travelling.
Finally, after starting to buy @ 1.46 nearly two years ago & averaging down in the 1.20s, my MKH shares are profitable even based on my highest entry price =)
Its valuation should be higher than matrix, considering its valuable landbank and investment properties in kajang, and 18k hectares of brownfield plantation land in east kalimantan. Now the cpo price is hovering btw rm 2600 to rm 2700. I believe next quarter will be good. I bought it before right issue 2 years ago and sold it at rm 3. Even after right issue, it has dropped from rm 2.5 to current level. With strong cpo price and 1 billion unbilled sale, it should be able to reap more profit and climb back to above rm 2
Next QR should be good because Indonesia CPO price stood at USD700 (RM2,900) compare to last year same period around USD500. Yearly FFB output more than 460,000mt. Unbilled sales more RM1.0bil. All these are catalyst of MKH's coming QR.
Despite MKH Bhd’s strong share price rally of approximately 25% year to date, we believe it remains undervalued. Trading at 10 times financial year 2020 (FY20) price-earnings ratio and 0.5 times FY20 price-to-book ratio, MKH offers decent earnings visibility with high property unbilled sales that buck the market trend and strong recurring income from its young and mature plantation estates as well as a steady portfolio of investment properties in Kajang/Semenyih.
in FY2018, when the CPO price was RM2163, the plantation division made RM48 million profit. Going to be higher production (more trees enter prime age) and higher price in 2020.
Strong showing for property - unbilled sales > 1 billion - affordable segment - quietly add good location land bank Q1/+8mil, Q2/+7mil, Q3/+6mil, Q4/+10mil - smart alliance with Panasonic and Sunway group Strong showing for plantation - FFB yield 30T/ha impressive - operating profit could hit 100 mil China operation 25% own use. 75% rental Production cost drops + extra rental income - net impact + 5 to 8 mil profit Steady property investment income - 8 to 10 mil
MD mentioned before that the plantation in Indonesia worth more than RM1bil in value. By simple calculation, there are 18,388 ha of oil palm plantation in Indonesia. At RM70,000/ha, the plantation should amount to RM1.3 bil which is already much higher that the current market capitalisation of RM903mil.
That will be best If MKH consider IPO for Plantation sector. If CPO can sustain at RM2,800 in FY2020, the Plantation Revenue will be around RM300mil and Profit before tax more than RM80mil.
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....
jeffrey1989
2 posts
Posted by jeffrey1989 > 2019-09-09 13:15 | Report Abuse
Kkwai, you should collect MKH's shares. I bought many. You can read today's news @ https://www.sinchew.com.my/content/content_2112321.html. See the passion the Tan Sri put into the company.