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.