• Valuation is cheap. Despite being the largest port operator in Malaysia, its valuation is still only less than half of its next biggest competitor, Westport.
• Dividend yield is high at between 5.4% to 6.6%. Given the low interest rate environment, this would appeal to a lot of dividend seeking investors.
• Cargo handled in 4Q20 is already passed precovid level. It is even higher that the pre trade war level which started in FY18. The largest port in the group is Pelabuhan Tanjong Pelepas where the 2M shipping alliance has decided to make it their Asean HQ Port. 2M consist of the 2 largest shipping companies in the world: Maersk and MSC.
• Bonus event. Potential monetisation of Port business via IPO. The group is looking to raised RM4bil via IPO. Assuming the amount is from the sales of up to 40% interest in the port business, this values the port business at RM10bil which is way above the current market cap of only RM2.5bil. This does not include their 38% holding in Malakoff (valued at RM1.8bil), 31% of Gas Malaysia (valued at RM1bil) and their Engineering business which is currently the main contractor for MRT2 (via JV with Gamuda). https://www.thestar.com.my/business/business-news/2020/10/23/mmc-mulls...
With Biden being the new President of US, you can expect him to overturn Trump’s America First Policy. This will make it easier for US to trade with other countries including Europe and China which will increase global trade and benefits ports operators like MMC.
Gooshen should go bash Fpgroup. It still unable to get pass 1.20 since Jul. while uwc , Inari , mi etc etc all smashing record since the near term demand for their product is getting good profit. The only way for fpgroup to go up now is having him bash the counter. Else it might stuck there forever.
Haha fpgroup drop as much as UWC. But it never have a huge spike in last two weeks. I wonder why.... oh ya. Gooshen only praise fpgroup. Never bash it.
Looks like the collection & support between 12.20-12.58isvery strong. Will break 14 or 15 when Bonus date is announced. Hope this big big ang pow will be before CNY ....
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....
STEADYBOMBIBI85
1,077 posts
Posted by STEADYBOMBIBI85 > 2021-01-19 01:25 | Report Abuse
Is d&o the next uwc or never gonna happen ?