1) Low PE at around 6-7 only
2) Existing major profit contribution from the following division seems very attractive:
a) Power division - 2 power plan in full operation - 1 in Tawau, Sabah and 1 in Shaoxing, Zhejiang province of China. which contributed at least 80% of profit to the Company.
b) Property division - MFCB owns quite a number of vacant land in KL, Selangor, Perak, and Melaka. which can be used for property development.
c) Limestone division - MFCB also owns a number of quarring and limestone hills in Perak.
3) Low gearing ratio - debt to equity ratio at 0.18
But, the following matters to be monitor closely:
1) Don Sahong Hydropower Project in Laos, its investment cost is expected to be huge. the progress of project shall be monitored closely, esp on the area of what happened in SIME about project cost overran.
2) It appears that its management likes to invest in quote shares which may not related to MEGB's core businesses. The return on this kind investments need to be monitored very closely in fact. But I have limited accessability for immediate information, Hopefully, they can strike the right counter.
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