Friday, 24 September 2021

MFCB Into Oleochemicals: Good or Bad?

After its 80%-owned 260MW Don Sahong hydroelectric dam in Laos started operation in 2020, we know for sure that MFCB is becoming and will become a cash cow.

The concession period for the dam is 25 years which is up to 30th September 2045. 

From the most recent FY21Q2 quarter report, the 6-months PBT from its renewable energy segment is RM176.8mil which is almost entirely from Don Sahong with negligible contribution from its solar business.

With the second half of the year expected to contribute more, it's safe to estimate a PBT of RM400mil per year from Don Sahong.

As depreciation and amortization are usually huge for such infrastructure, I guess the operating cash flow from it might be around or even more than RM400mil per year.

What will you do if your company has RM400mil cash coming in consistently every year?

Saturday, 4 September 2021

My Portfolio Aug21


Summary For August 21

Stock Portfolio @ End of Aug21

In August 2021, Malaysia has a change of government again. The stock market viewed it quite positively in which the KLCI gained 100 points (~7%) from 1,500 to 1,600.

In the same month, our Covid-19 vaccination rate continued to be encouraging but new Covid-19 cases soared and stayed above 20,000 cases per day.

As of today, it's reported that over 65% of adults population are FULLY vaccinated. 

Even though we're not sure whether the vaccines can successfully fence off the virus mutants, we should be able to achieve 80% adult vaccination mark at the end of this month.

Stock market wise, my monthly portfolio return of 3% was beaten by KLCI's 7% gain.

Wednesday, 4 August 2021

My Portfolio Jul21


Summary For July 2021

Stock Portfolio @ End of Jul21

It's another lackluster month for Bursa Malaysia in which the KLCI fell 2.5% in July and went below 1,500 points.

Most of the stocks in my portfolio fell in the month of July but it still managed to register positive gain of 4.2% thanks to SCIB and JHM.

I have sold all my SCIB shares & SCIB-WB when their share price surged in early and then mid July.

Despite the heavy slump in its share price in recent months, my investment in SCIB still gives me a very good return of 185%.

I won't rule out reinvesting in both SCIB & KPower if the outcome of the Serba Dinamik saga is favourable to both companies.

It seems like tech stocks do well in general in this month, and this positive trend might continue for a longer period of time.

The quarterly results of all the tech companies who released their results in July are very impressive, including Vitrox, MI, Unisem, Genetec, Frontken and Aemulus, with only Gtronic not quite up to expectation.

Looking at Genetec's share price at above RM23 now, I can only shake my head in disbelief. Anyway, if I didn't sell earlier at RM4.20, I don't think I can hold its shares until above RM10.

Wednesday, 28 July 2021

JHM: New Addition to the "Auspicious" BKIP


Batu Kawan Industrial Park (BKIP) in southern Penang mainland has been a great success since Boon Siew Honda first moved into it in year 2011.

There is no surprise that the state government has started the planning of BKIP2 located south of BKIP at Byram Nibong Tebal.

Up to today, many global technology giants have set up their facilities in BKIP.

Those companies include Hewlett-Packard, VAT, Jabil Circuit, Broadcom (Avago), Western Digital, Boston Scientific, Haemonitics, Micron, Hotayi, Flex, Lam Research, Bosch Automotive etc.

Apart from international companies, many local technology-related companies have set up their plants in BKIP as well.

Most of them are listed in Bursa Malaysia and their presence in BKIP indicate expansion of their businesses.

So, with increased business volumes and profits, their share prices have gained tremendously since they planned their move into BKIP.

Who are they?