KUALA LUMPUR (May 25): Mega First Corp Bhd (MFCB), which builds, owns and operates renewable energy (RE) power plants, has invited the public to its earnings briefing for the first quarter ended May 31 March 2022 (1QFY22), which is probably the first time a listed company in Malaysia has done so.
The invitation to the virtual briefing on Thursday, May 26, issued through a deposit with Bursa Malaysia, is extended to all “interested parties”.
It will be interesting to see what the turnout will be for the 56-year-old company which is also active in limestone mining and the manufacture and trade of lime products, calcium carbonate powder and bricks. . It also has a packaging business where it manufactures printed labels and stickers, paper bags and flexible packaging products for various industries.
Analysts expect MFCB to perform better in FY22, supported by growth in its packaging segment, although new contributions from its Don Sahong hydropower project in southern Laos may experience some delays .
“The packaging business is expected to nearly double its sales in FY22, supported by consolidating full-year contributions from upstream packaging, Stenta, new production capacities and growing customer demand existing and new in domestic and export markets,” PublicInvest said. Search in a note dated March 7.
“To our surprise, Edenor Technology Sdn Bhd, its new investment in the jointly owned oleochemicals and specialty chemicals business, is expected to become profitable this year,” said PublicInvest Research, which saw its base net profit rise from $339 million. RM to RM386m for FY21 and revenue up 19% to RM1.09bn from RM914m.
The search house has a target price (TP) based on the coin sum of RM4.36 for the meter.
Meanwhile, Maybank IB Research has a slightly lower TP of RM4.20 for the stock, citing the delay in commissioning Don Sahong’s fifth turbine to FY24 from FY23.
“We continue to expect management to seek value-added RE opportunities,” Maybank IB Research said. The group intends to increase solar capacity by an additional 15 to 20 MW from the current 14.5 MW.
MFCB is also conserving cash for potential merger and acquisition opportunities in the future, the two research firms said.
For FY21, MFCB’s net profit jumped 43.9% to a record high of RM462.33 million or 48.81 sen per share from RM321.29 million or 6.25 sen per share, as revenue rose 19.23% to RM914.67 million, its highest since 2017. – from RM767.13 million. This was thanks to a RM122.03 million gain from its oleochemical joint venture Edenor Technology.
It paid dividends of 6.75 sen in FY21 compared to 6.25 sen in FY20.
MFCB shares were three sen or 0.8% higher at RM3.77 at Wednesday’s writing, giving it a market capitalization of RM3.73 billion.