#ko-ibrahims ... Please go, directors of Brahims told ... oops this was Putrajaya's message to directors to MoF companies, and make no mistake, kick out the directors and the Ibrahims cronies ... can't even make a profit! PLEASE, PLEASE RESIGN AND GO!!!
Top executives in FGV leave amid management shake-up .... when will these Ibrahims from the Chairman to the last of the Ibrahims clan and all their useless cronies leave ... quit and be gone! The disappointing results quarter after quarter, year after year has been terrible ... admit that you are all not capable to manage this company!!
What cause the rally? Why people buying this stock? Saw dato ibrahim bought in 31 dec. He must be the one pushing up the price that day. Mmm either he really think its cheap or he is try to prevent a margin call. Some of his shares are under pledged acct. Most of the time that means its on margin.
Company still loss making and next quarter high chance also will b loss.
Company moving towards to be less dependent on the airline catering business, shift to emphasise on non-airline catering business, such as airport restaurants / food courts operation, corporate clients institutions such as universities and hospitals
Since Brahim’s Berhad lost its lucrative contracts from the dissolvement of Malaysia Airline System to the newly created Malaysia Airline Berhad back in May 2015, the company financials have been on a downward trend (14 consecutive losses since the loss of the contract). Those investors that think that the company would be able to turnaround its financials in FY19 might be putting too much hope on the current management.
The company has a total of RM76.6mil of debt and a cash reserve of only RM6mil. Looking at the cash flow statement, the business has not been able to generate any positive cash flow from its operations since it lost the MAS contract. The disposal of 49% interest in Brahim Airline Catering Holding (BACH) to Singapore’ SATS Ltd back in FY16 for RM110 mil (total amount was actually RM208mil but the remaining RM108mil was tied to financial performance of BACH which we can assume did not go that well) has help the company to stay afloat for a while. But given the bad performance of the business, cash from the sales has also started to deplete to only RM6mil (RM64 mil was used to pay off debt. So, there was still RM44mil to be used for operations). Excluding the intangibles and goodwill, it is highly likely that the NTA to shareholder is actually negative (Shareholder equity RM89.5mil – Brahim portion of intangible and goodwill of RM196mil/2 = -RM8.5mil).
If you are looking to diversify your portfolio outside of Brahim’s Holding (due to its weak earnings outlook and weak balance sheet) I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.7x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the newly revamp Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor is commencing operations in 2019.
Recall
According to the sources, Brahim’s will cater three meals a day for about 10,000 pax at RM15 per head. That works out to revenue of RM54.7 million per annum. Assuming an after tax margin of 15%, this would translate into an estimated RM8.21 million in additional PAT for BACH each year.
“The contract Brahim’s is chasing is to supply three basic meals a day for approximately 10,000 workers in Rapid. The meals will be simple food like roti canai, which has a very low cost. Rapid is quite remote, so securing this catering contract is quite lucrative. There may also be opportunities to secure additional catering contracts in the future,” says one source.
We are long term positive on Pengerang due to its strategic location and availability of vacant land. PIPC phase 2 development which potentially involves foreign international petrochemical players could kick start by 2020. Dialog (Not-Rated) will continue to be one of the key beneficiaries of Pengerang development due to its exposure in PDT, PLNG2, EPCC and maintenance services. With PIC overall at 97% completion, we see further diversification opportunities for PCHEM (HOLD; TP: RM9.74) into derivatives and specialty chemicals. Additionally, plant maintenance jobs would be up for grab for local services players such as Dialog and Serba Dinamik in the next two years
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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....
localmotive
258 posts
Posted by localmotive > 2018-08-01 10:06 | Report Abuse
#ko-ibrahims ... Please go, directors of Brahims told ... oops this was Putrajaya's message to directors to MoF companies, and make no mistake, kick out the directors and the Ibrahims cronies ... can't even make a profit! PLEASE, PLEASE RESIGN AND GO!!!