About MFCB ..

Technically resistance is at rm2.90 of which a successful breakout would propel the share price to rm3.20. Support is at rm2.49.

 

It is trading at a price to book of 1.26 times and trailing 12 month PER of 6.0 times.

 

Its net cash stood at rm110 million plus some rm68 million in quoted shares at end June 2014.

Its strong balance sheet and recurring income from the power generation business should support its future dividends.

About 69% of its pre tax earnings were derived from power generation. It partially owns and operates a 83MW coal fired heat and power plant in Shaoxing, China as well as a 36MW diesel plant in Tawau, Sabah. The PPAs for these projects are set to expire in 2017 to 2018.

The resources arm accounted for roughly 14% of pre tax profit in 2013. This encompasses quarrying of limestone, manufacturing and trading of calcium carbonate powder, lime based products and bricks.

It is one of Malaysia’s largest producers of lime products.

It owns investment properties, primarily PJ8 in PJ, worth come rm121 million from which the company earns recurring rental income. It has also diversified into property development.

Its major re rating is the greenlight given by the Laos government to hold the concession for a 260MW run-of-river hydropower plant in the country, five years after signing a memorandum of understanding (MoU) with the state-owned energy company to develop the plant.

The project will be handled by Don Sahong Power Co Ltd, which Mega First said will eventually sign a concession agreement with the Laotian government, to develop, build and operate the hydropower plant. No timeline for the agreement was given, nor the expected timeframe for the project.

The Don Sahong Hydropower project is a run-of-river hydropower project, located at the Hou Sahong channel of the Mekong River in Khong District, Champassak Province, Lao People’s Democratic Republic. It will have a capacity of 260MW and capable of generating about 2000 GWh of electricity per year.

Concessionaire Don Sahong Power is owned by Ground Roses (with a 79% stake), Silver Acreage (1%) and EDL (20%).

The project estimated to cost rm1.5 billion is slated for completion in 2019. It would replace the loss of income from the above mentioned projects a(if their concessions are not extended) and more ...