Friday, February 25, 2011

Mega First posts RM39m pre-tax for Q4 2010

MFCB Q4FY2010 results isn't good enough to attract buying interest. As mentioned before, its core businesses are mainly power plant operator, property development, limestone quarrying, and trading of quote shares, of which power plant business is contributed the most to MFCB.  With the pressure of price rising in commodities, the profitablity of power plant business will definately be affected, while this had exactly been reflected and reported in financial announcement for Q4FY2010.

As refer to B7 in Quarter report Q4FY2010, its management are quite well in investing in quote shares. they even managed to record some gains. But, this will not get credit points from most of share investors, as investors who choose to invest their money in equity market, will prefer to buy shares by themselves. if not, investing in unit trust is more appropriate.

Having said the above, MEGB is still worth to hold, given its treasury buyback undergoing, strong cash flow and very low PE.

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Mega First posts RM39m pre-tax for Q4

Published: 2011/02/24 in http://www.btimes.com.my/

Mega First Corporation Bhd's pre-tax profit for the fourth quarter ended Dec 31, 2010 rose to RM38.866 million from
RM34.305 million in the same period last year.

Its revenue decreased to RM136.720 million from RM141.711 million
previously. The company's principal activities are building, owning and operating power plants.

In a filing to Bursa Malaysia today, Mega First said the higher pre-tax profit was largely attributable to higher contribution from the property division and higher gain from disposal of quoted shares, partially offset by lower contribution from the power division.


For the twelve-month period, its pre-tax profit went up to RM121.126 million from RM117.520 million in the same period of 2009.

Revenue increased to RM523.323 million from RM463.103 million previously. -- Bernama
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