MMC Corp Bhd / Sri Syed Mokhtar Albukhary

MMC Corp Bhd / Sri Syed Mokhtar Albukhary

Postby winston » Sat Feb 04, 2017 10:42 pm

TAN SRI SYED MOKHTAR ALBUKHARY
Flagship: MMC Corp Bhd
Net Worth: RM5bil

SYED Mokhtar has been in recent years streamlining his portfolio of assets.

Last year MMC Corp Bhd, his main listed vehicle, took private NCB Holdings Bhd at RM4.40 cash per share, valuing the company at RM2.07bil. NCB wholly owns Northport (M) Bhd, a major gateway for the import and export of containers in Port Klang.

In 2015, MMC Corp listed Malakoff Corp Bhd– the country’s largest independent power producer. It has also closed its loss-making fabrication facility and divested the oil and gas division.

The tycoon is said to be working to further unlock value of his 51.8% controlled MMC Corp that has interest in ports and logistics, and energy and utilities, as well as construction and engineering.

The group owns almostmost of the ports on the west coast of Peninsular Malaysia, namely, Penang Port, Northport, Port of Tanjung Pelepas, Johor Port and the recently acquired Tanjung Bruas Port in Malacca from the Port Klang Authority.

However, the value of the port is not reflected in its share price. MMC’s market cap stood at RM7.1bil based on the RM2.33 share price at end December.

Industry observes say that MMC’s port business could be well valued at about RM10bil or more.

MMC also has a 30.9% stake in Gas Malaysia Bhd. In the construction side it is undertaking the [b]Mass Rapid Transit project with Gamuda Bhd and the Rapid Cogeneration Plant project in Pengerang, Johor with Siemens.[/b] Its construction order book stands at about RM30bil.

The tycoon’s other listed vehicle is DRB-Hicom Bhd, which in turn controls Pos Malaysia Bhd. The other assets under DRB-Hicom are Proton Holdings Bhd and Bank Muamalat (M) Bhd.

Last year DRB-Hicom injected its logistics assets, namely KL Airport Services Sdn Bhd and a parcel of freehold industrial land in Shah Alam, Selangor into Pos Malaysia, raising its stake in the latter to the current 53.5% from 32.2% previously.

Pos Malaysia shares surged 44% to RM3.91 as at Dec 31 on better earnings outlook.

It also expects its courier business, Pos Laju, to be the main contributor of its revenue come FY18.

Source: The Star
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Re: MMC Corp Bhd / Sri Syed Mokhtar Albukhary

Postby winston » Sun Jan 07, 2018 9:17 am

not vested

MMC CORP BHD
By MIDF Research

Maintain buy
Target price: RM2.67

The company on Dec 29, 2017 announced that it has received Notices of Assessment from the Inland Revenue Board (IRB).

MIDF Research said the notices followed a tax audit for the years of assessment from 2011 to 2013 pertaining to additional income tax and penalties totalling RM45.9mil.

“The company noted that it will be making the full payment for the additional income tax without prejudice basis to the IRB.

“The IRB imposed the additional income tax on MMC Corp on grounds that interest expenses relating to certain investments are not eligible for tax deduction according to Section 33 of the Income Tax Act, 1967.”

Pursuant to MMC Corp’s consultation with its tax counsel, MIDF Research said the company opined that there are reasonable grounds to challenge the Notices of Assessment.

“Henceforth, the company intends to file Notices of Appeal to the Special Commissioners of Income Tax while taking all steps to challenge the disputed Notices of Assessment.

“Based on our understanding, an appeal proceeding may take up as long as 12 months to be completed. Hence, any impact from the appeal, if it were to be in favour of MMC Corp, will not likely be reflected in the near term.”

As the payment to IRB will likely be settled on an instalment basis, MIDF Research reckons that the additional income tax and penalties worth RM45.9mil will not have any material impact on MMC Corp’s day-to-day operations.

It noted that MMC Corp has generated a net operating cashflow of RM168mil, on average, for the past three quarters in 2017.

“Meanwhile, as at Sept 30, 2017, MMC Corp has a cashpile of RM844mil and debt worth RM9bil, which translates to a net debt-to-equity ratio of 0.79 times,” the brokerage said.

Source: The Star
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Re: MMC Corp Bhd / Sri Syed Mokhtar Albukhary

Postby winston » Sun Jan 05, 2020 8:51 am

not vested

MMC Corp Bhd
Price: 98.5 sen

We continue to favour MMC Corp due to the valuations supported by the market capitalisation of its listed associate Malakoff whereby the expected net gain disposal on Malakoff’s 50% stake in MacArthur Wind Farm of RM546mil (expected completion in 1QFY20) could be channelled to firm up Alam Flora’s operations or Malakoff’s existing business segments.

Meanwhile, Gas Malaysia’s FY20 gas volume sales will increase in line with its recently acquired customers.

Aside from that, synergies from the full acquisition of Penang Ports supported by the container terminal business and the cruise terminal operations (in collaboration with Royal Caribbean Cruises Ltd), will be driven by the growth in tourism in Penang in tandem with Visit Malaysia Year 2020 (VMY2020).

Other catalysts for MMC Corp include the possible reinstatement of the KVMRT3 project at a revised cost (possibly half the original price tag of RM45bil). Latest updates indicated that consultants have been appointed to find a suitable model, and a decision on the MRT3 project would be made in middle of this year.

Key downside risks to our call include:
(i) prolonged global trade tensions
(ii) weak container volumes of MMC Corp’s ports and
(iii) downward revision of its listed associates.

All factors considered, we reiterate our buy call on MMC Corp with an unchanged target price of RM1.30 per share based on sum-of-parts valuation.

On a side note, MMC Corp has already been included as a constituent of the FTSE Bursa Malaysia Mid 70 Index effective end trading day on Dec 20,2019.

Source: MIDF
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