Thursday, May 14, 2015
RM2.40 by UOB KayHian
About RM2.30 My friend said from Affin, not sure.
RM2.10 by Inter Pacific Research Sdn Bhd
RM2.09 by TA Securities
Fair value at RM2.18 a share for Malakoff, says PublicInvest Research
Posted on 6 May 2015 - 05:37am
PETALING JAYA: PublicInvest Research has pegged a fair value of RM2.18 for Malakoff Corporation Bhd which is 21.1% above the retail offer price of RM1.80 for its upcoming initial public offering (IPO).
The fair value, using a discounted cash flow (DCF) valuation, translates to financial year 2016 (FY16) price-to-earnings of 15.3 times and enterprise multiple of 7.5 times.
"Key catalysts would be securing new projects for power and water generation plants, renewal or extension for its expiring power purchase agreements (PPAs) and additional capacity in renewable energy," analyst Syarifah Hidayatul Akmal said.
In her report yesterday, Syarifah said key assumptions for the DCF valuation included a discount rate using weighted average cost of capital (WACC) of 7.6%; consistent and continuous capacity payments from the group's Segari Energy Ventures (SEV), GB3, Prai and Tanjung Bin power plants until the expiry of PPA.
She also took into account Tanjung Bin Energy power plant commencing operations in March 2016 and starting to receive capacity payments from then; all power plants to run smoothly without unplanned outages; PD power plant PPA expiring in Jan 2016 and lower capacity payments from extended SEV PPA upon expiry of current PPA.
Syarifah expects capacity payments from Tanjung Bin Energy power plant to boost the group's net profit by 46.6% and 29% for FY16 and FY17 with better net profit margin of 9.9% and 12.2% in FY16 and FY17 respectively from the current 6.1%.
"However, we expect the group's earnings to decline by 22.9% in FY18 due to the full-year effect from the lower capacity payments arising from the revised capacity rate financial (CRF) of the extended PPA.
She also noted that Malakoff's SEV power plant initial PPA, which was to have expired in June 2017, was extended for a 10-year period until 2027 in 2013 under the Track 2 tender for first generation IPPs.
"Management has confirmed there will be a huge step- down in capacity payments and we assume the extended version will be approximately 20% from the original PPA.
"As the SEV power plant infrastructure cost has been paid off upon expiry of original PPAs, the extension at lower rate is still considered a bonus to the Group," she said.
Syarifah also pointed out that based on the assumption of a 70% payout ratio as per its dividend policy, Malafoff's dividend yield is estimated to be 3.1%, 4.6% and 5.9% for FY15, FY16 and FY17 respectively.
"However, as we estimate lower earnings in FY18, the corresponding decline in dividend yield for the year is still expected to be an attractive 4.5%, approximately.
"We like Malakoff for its attractive dividend yield of above 4.5% on an average basis, higher than other power players such as Tenega Nasional Bhd and YTL Power which offer lower yields in the range of 2.3%- 3.0%.
However, she noted that , Malafoff's revenue and earnings are highly dependent on the capacity payments, therefore any operational issues at any of its power plants which could lead to unplanned outages may adversely affect its future cash flows and its valuation.
"It is also crucial for the group to replenish its expiring PPAs with extension or new PPAs to sustain its profitability," she said.
Malakoff is the largest independent power producer (IPP) in Malaysia and Southeast Asia in terms of total generation capacity.
Internationally, the group has presence in Saudi Arabia, Algeria, Bahrain and Oman for power generation and water production, and in Australia for renewable energy.
The group has an effective power generation capacity of 6,036MW (including 210MW renewable energy) and effective water production capacity of 358,850 cubic metres a day.
Malakoff's IPO consists of institutional offering up to 1.28 billion shares and retail offering of 242.5 million shares.
The IPO of up to 1.52 billion shares in Malakoff comprises a public issue of 1 billion new shares and an offer for sale of up to 521.74 million existing shares.
The IPO represents about 30.4% of the group's enlarged issued and paid-up capital of 5 billion shares, with institutional and retail offerings representing about 25.6% and 4.8% of the enlarged issued and paid-up share capital respectively. The final retail and institutional prices have been fixed at RM1.80 per share.
Malakoff will use the entire IPO proceeds of RM1.80 billion to fully redeem its RM1.8 billion Junior Sukuk Musharakah which was used to partly finance the privatisation of Malakoff in 2007.
Monday, April 20, 2015
Opening of application
Closing of application 28/04/2015
Balloting of applications 30/04/2015
Allotment of IPO shares to successful applicants 13/05/2015
Tentative listing date 15/05/2015
Malakoff set for big comeback after RM3.15b IPO
Posted on 20 April 2015 - 05:39am
By Eva Yeong and Wan Ilaika Mohd Zakaria
KUALA LUMPUR: MMC Corp Bhd's power unit, Malakoff Corp Bhd is setting for a big comeback with its relisting on the Main Market of Bursa Malaysia Securities, which is slated for May 15, 2015.
The company is expected to raise up to RM3.15 billion in proceeds from the offering of 1.75 billion shares (including the over-allotment option) at a maximum indicative price of RM1.80 per share, which is subject to final determination.
The initial public offering (IPO) is expected to be one of the biggest in Malaysia and Asia this year.
Malakoff was first listed on the then Kuala Lumpur Stock Exchange in 1976 and was subsequently taken private in July 2007 following the completion of its acquisition by MMC.
"Based on the indicative price of RM1.80 per share, we see our company with a market capitalization value at around RM9 billion upon listing," its chairman Tan Sri Syed Anwar Jamalullail told a press conference after the launch of the IPO prospectus last Friday.
"This IPO is likely the largest in the country since 2012," he added, noting the IPO represents up to 30.4% of Malakoff's enlarged issue and paid-up share capital.
Since its privatisation, Malakoff has been growing its stable of assets and expanded into international water production and the renewable energy business. The IPO will see the inclusion of several new assets under its stable including Port Dickson Power Plant, Macarthur Wind Farm in Australia and Al Hidd IWPP in Bahrain.
Syed Anwar said bulk of the IPO proceeds will be used to fully redeem an RM1.8 billion Junior Sukuk Musharakah.
The IPO secured 12 cornerstone investors for its relisting, which include Social Security Organisation (Socso) and Lembaga Tabung Haji, CIMB-Principal Asset Management Bhd, Maybank Asset Management Bhd, Maybank Islamic Asset Management Sdn Bhd, Great Eastern Life Assurance (Malaysia) Bhd, RHB Asset Management Sdn Bhd, UOB asset Management (Malaysia) Bhd, Hong Leong Asset Management Bhd, Eastspring Investments Bhd, Kencana Capital Sdn Bhd and Corston-Smith Asset Management Sdn Bhd.
The cornerstone investors have agreed to acquire about 533.8 million shares, representing some 10.7% of the enlarged issued and paid-up share capital of the company.
Maybank is the IPO's transaction manager as well as joint global coordinator with CIMB, Credit Suisse and JPMorgan. Bank of America Merrill Lynch, Deutsche Bank, HSBC, Morgan Stanley, Nomura and RHB are the joint bookrunners.
Syed Anwar said the company will continuously looking into opportunities to grow its assets on the back of the increasing demand of power in the region. It aims to increase its power generation capacity to 10,000 megawatts and expand its water production capacity approximately by 150% by 2020, through domestic and international expansion.
Malakoff's core focus is on power generation, water desalination and operation and maintenance services. It currently has a net generating capacity of 6,036 megawatts and water production capacity of 358,850 cubic metres.
"With our international portfolio of power generation and water desalination assets, backed by our experience and established track record in operation and maintenance business, we are well-positioned to leverage the opportunities from growth in electricity and water demand in our target markets," he said, noting currently the company is also the largest independent power producer in South East Asia by effective power generation capacity.
Currently it has a total of six operational plants in the country, in which one is under construction, namely Tanjung Bin Energy Power plant in Pontian, Johor. It is scheduled to start operations in March 2016. This will add 1,000 megawatts to Malakoff's power plant portfolio.
In the Middle East and North Africa, the company owns four plants, a combination of both power and water desalination plants, Syed Anwar said. Its international assets include power and water ventures in Saudi Arabia, Algeria, Kuwait, Bahrain, Oman and Australia.
MMC is controlled by low-profile tycoon Tan Sri Syed Mokhtar Al-Bukhary.
NITIAL PUBLIC OFFERING (“IPO”) OF UP TO 1,521,740,000 ORDINARY SHARES OF RM0.10 EACH IN MALAKOFF CORPORATION BERHAD (“MALAKOFF”) (“IPO SHARES”) IN CONJUNCTION WITH THE LISTING OF AND QUOTATION FOR THE ENTIRE 5,000,000,000 ORDINARY SHARES OF RM0.10 EACH IN MALAKOFF (“SHARES”) ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING AN OFFER FOR SALE OF UP TO 521,740,000 EXISTING SHARES AND A PUBLIC ISSUE OF 1,000,000,000 NEW SHARES (“ISSUE SHARES”) INVOLVING:
(I) INSTITUTIONAL OFFERING OF UP TO 1,279,240,000 IPO SHARES TO MALAYSIAN AND FOREIGN INSTITUTIONAL AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE INSTITUTIONAL PRICE TO BE DETERMINED BY WAY OF BOOKBUILDING (“INSTITUTIONAL PRICE”); AND
(II) RETAIL OFFERING OF 242,500,000 ISSUE SHARES TO THE DIRECTORS OF MALAKOFF, THE ELIGIBLE EMPLOYEES OF MALAKOFF AND ITS SUBSIDIARIES (“MALAKOFF GROUP”), PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF THE MALAKOFF GROUP THE DIRECTORS AND ELIGIBLE EMPLOYEES OF MMC CORPORATION BERHAD (“MMC”), THE ENTITLED SHAREHOLDERS OF MMC
AND THE MALAYSIAN PUBLIC, AT THE RETAIL PRICE OF RM1.80 PER SHARE (“RETAIL PRICE”),
PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE BETWEEN THE RETAIL PRICE AND THE FINAL RETAIL PRICE (AS DEFINED HEREIN) IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE,
SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISIONS AND THE OVER-ALLOTMENT OPTION (AS DEFINED HEREIN). THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF:
Wednesday, April 8, 2015
Another investor, he is more advance, not really a newbie, but what he is doing is the same as me, the first newbie, and all who is and will continue be doing:
Buy fundamental stock.
About the same value per transaction (increase evenly if got more money)
Continue for at least 3, 5 or 7 years or more.
Month Stock Cost Current Price Profit/(Loss)
1 B 1.45 0.855 (41.03)
2 D 2.22 1.97 (11.26)
3 C 1.2 1.18 (1.67)
4 H 1.4 1.55 10.71
Month Stock Cost Current Price Profit/(loss) %
1 H 0.485 0.535 10.31%
2 Y 1.500 2.090 39.33%
3 P 1.260 1.380 9.52%
4 L 13.680 14.880 8.77%
5 C 1.080 1.040 (3.70%)
6 U 2.760 2.850 3.26%
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