MORE ON HUAAN..


Costlier coal unlikely to hit Sino Hua-An


UPDATE (@ 10/01/11)

Rising coal prices around the world has minimal effect on Hua-An's raw material costs as expected. It may even be a plus.

http://www.btimes.com.my/Current_News/BTIM.../6SINO/Article/



LATEST REPORT: Published: 2011/01/10


Cash Cash Costlier coal unlikely to hit Sino Hua-An


By Hamisah Hamid
Published: 2011/01/10


RISING international coal prices due to the floods in Australia's coal-rich state of Queensland are not likely to have a significant impact on metallurgical coke manufacturer Sino Hua-An International Bhd's (2739) plant in China.


RISING international coal prices due to the floods in Australia's coal-rich state of Queensland are not likely to have a significant impact on metallurgical coke manufacturer Sino Hua-An International Bhd's (2739) plant in China.

Besides getting its supply of coking coal from China domestic mines, Sino Hua-An also buys cheaper coking coal in bulk for the winter season.

Vice president corporate communication and investors relations Bernard Tan said the company's metallurgical coke plant in Shandong province buys and uses most of its coking coal from mines located in Shandong, Henan and Shanxi provinces.

"Every year during winter season in North Eastern China, the normal domestic coking coal pricing trend tends to increase a little as the extraction rate from the mines is usually slower than expected.
"As part of Sino Hua-An's contingency plan, we usually increase our coking coal inventory during winter season by negotiating and purchasing cheaper coking coal in bulk from our raw material suppliers," he said in a statement.

Sino Hua-An, the first China-based company to be listed on Bursa Malaysia, produces metallurgical coke from coal. Coke is a critical raw material in steel-making.

Tan said the company's usual coking coal inventory is about 50,000 tonnes but currently, it is more than triple to 170,000 tonnes. This inventory level is enough for more than a month's use.

Coal prices for delivery in March have already risen to some US$130 (RM398) a tonne, from around US$100 (RM306) a tonne at the start of December last year.

The floods in Queensland, the worst in decades that has displaced hundreds of thousand people, may temporarily halt production and export of high-grade coking coal and force the international coking coal price to skyrocket to over US$300 (RM921) per tonne in the near future.

At the same time, the rising crude oil price exceeding US$90 (RM276) per barrel is working in favour of Sino Hua-An.

Tan said the company's two main by-products, which are crude benzene and tar oil, are oil-based.

"Therefore, the rising crude oil prices also 'push' up the selling prices of our by-products accordingly," he said.

Read more: Costlier coal unlikely to hit Sino Hua-An http://www.btimes.com.my/Current_News/BTIM.../#ixzz1DSQwFj00



CHEEERS......THE FACTS ARE HERE, YOU MAKE YOUR OWN DECISION BUT AS IT'S NOW BEING GORENG, IT'S WORTHWHILE TO PICK IT UP.

MPHB announcement out.....
-MOU-
~they are going to buy the remaining 49% of Magnum... cost to buy share and loan stocks is about RM 1.6B..
~purchase to be satisfied with issuance of 343M new MPHB shares @ 2.30 and 800M cash...
~rationale is to make gaming as MPHB's core with 100% ownership of magnum
--
is it practical to list Magnum after this exercise ?

This post has been edited by mopster: Feb 9 2011, 07:47 PM

Doesn't seem like a great news to me...
Or I missed out something?

hehehe.. lets go back to chopping board...

***I assume the segment reporting for gaming in Qtr report only consists of 51% of Magnum's profit. If it is 100% of Magnum's profit, then the whole calculation is void. ***

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Added on
MPHB Gaming Profit Before Tax for 9Months : RM291M
Assume full year Gaming Profit Before Tax : 291x4/3 = RM388M. lets round to RM360M

The additional 49% of Magnum shares will increase annual Profit Before Tax by approx RM360M.
i dunno how much is the tax, so use 25%. profit after tax : 0.75 x 360M = 270M.

Currently MPHB has 1.077B shares. With 343M new shares, total shares will be ~ 1.4B [havent consider RCULS]
so the remaining magnum stake of 49% will bring in additional ~0.19c [let's round to 0.20c] EPS annually to MPHB....

4 rolling Qtr profit = 328M. With additional 270M from the 49% of Magnum, that will total to 600M annually.
RM600M / 1.4B shares = 42c EPS..
Last traded : RM2.70 [round up]
PER : 6.42x
30% of profit as Divvy : 12.6c or abt 4.7%Yield [i dunno their divvy policy, could be 50% . if ur cost is lower, of coz the yield is higher]

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Added on
At the moment, MPHB has about 750M cash, 1.8B Debt..
~the share dilution is probably offset by the new income.
~only thing is how they plan to finance the 800M cash.
~i believe this exercise will increase debt by a bit but also increase eps and dividend by a bit. no "Big" impact.
~However, it will be a different ball game if they wanna relist magnum after that

***just some newbie calculation only~ kindly point out the mistakes... ***

This post has been edited by mopster: Feb 9 2011, 08:47 PM

Based on what you have calculate and the data I seen from the announcement, I think it is a pretty good deal that MPHB have struck. My only concern would be how CVC is going to exit the position or whether they will exit at all. CVC is a private equity firm, so presumably, they will exit at some point in time.

The concern would be when they eventually decide to exit their position, it will depresses the share price or make the share price stagnant for some time unless they manage to find another buyer to buy up the entire block of shares. It is 20% plus of the shareholding, so, may take some time to sell out the whole thing. As it is a gambling firm, it probably will rule out things like EPF, PNB and Tabung Haji, so, not much local buyer left that are capable of taking up such a huge chunk of shares.

But, valuation looks cheap at first glance. A good deal for MPHB pending further information. If you are in it for the long run, should not be a problem.

Balance Sheet as at 2009-12-31
CURRENT ASSET
Cash & Securities 1,010,546
Stocks 5,344
Debtors/Receivable 547,071
Others 0

TOTAL CURRENT ASSET 1,562,961

NET CURRENT ASSETS 920,213
LAND & BUILDING 776,000
PLANT & MACHINERY 63,020
INVESTMENTS 532,664
INTANGIBLE ASSETS 2,891,863
LONG-TERM ASSETS 0





TOTAL NET ASSETS 5,183,760

CURRENT LIABILITES
Short-term Loans 314
Creditors/Payables 635,180
Taxation 7,254
Dividends 0
others 0
TOTAL CURRENT LIABILITIES 642,748

LONG-TERM LIABILITIES 2,578,302
MINORITY INTEREST 439,366
SHAREHOLDER'S FUND
preferred Stock 0
Common Stock 1,077,749
Treasury Stock 0
Share Premium 681,390
Accumulated Earnings 373,549
Reserves 33,404
TOTAL SHAREHOLDERS' FUND 2,166,092

if the suspension will not be lifted tml, maybe the next announcement is right issue to finance the 800M?

Dun forget KKB also!

a bit disappointment, no goodies for us

maybe a bad news for share price in short term...........but in long run, the 100% share would benefit MPHB in profit

This step is expected actually, before the relisting, MPHB need to acquire the share from CVC as MPHB claimed that they will hold at least 51% share even after listing

if magnum relisted, i'll dump my mphb for magnum....

I believe there is no cheap thing for magnum...........

but can confirmed the relisting of magnum sure benefit to MPHB

i believe the chance of magnum getting listed again is rather low since through this corporate exercise cvc will be able to sell their shares in magnum,
if magnum is to be listed again, it is not rationale for cvc to buy back magnum shares again (with assumption magnum shares will be offered to mphb shareholders)

I dun think so actually............this exercise should higher the possibility of re-listing
If CVC still hold the 49%, it not easily to sell when it re-listing. MPHB announced on last year that they will buy over CVC's share and re-list magnum, the MPHB shareholder will get priority.

I believe this exercise is one of the stage of re-listing

Announcement news in chinese
馬化控股16億購萬能49%股權
http://www2.orientaldaily.com.my/read/LBZ/...RL62PU711Ug0iqo

This post has been edited by StupidGuyPlayComp: Feb 9 2011, 11:37 PM

Actually this week theme are as follows ;

1. Ace Tech stocks
2. Telcos - Maxis, Axiata, Digi, TM.......................................and Keywest
3. Natural resource
4. Valuation & future potential such as Huann, YTLand, Karambunai, Naim.............................but do not fooled by FFHB (senang beli, susah jual stock)

if cvc still hold 49%, cvc can easily sell it through magnum IPO, right?

anyway, for me personally, if magnum relist plan is cancelled, i would not be disappointed,
since magnum is 100% owned by mphb, then holding mphb shares is akin holding magnum already,

only difference is, maybe people are happier to have their share counter name as 'magnum' which is more well-known than "mphb"

This category is darn dangerous in my opinion.
In just 1 day, I am just looking at how people profit from IRIS, and how people got burn like nothing before.
So after IRIS, could it be FOCUS ?

I am not sure whether they can sell all the share on IPO or require reserve a portion as a shareholder

but my stupid view
-total share issued of MPHB will be around same with BJTOTO after adjustment
-Magnum profit is higher than BJTOTO in now day
-But MPHB share price is much lower than BJTOTO

MPHB will be undervalue after this?

if moppy's analyst is practice able, the PER 6.42 is extremely undervalue for a gaming counter

flash back memory:
did you remember mphb stupid move of buying some umobile shares from vincent tan, the old fox.....?

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Added on February 10, 2011, 12:03 amyea, yea, the reason, the PE is lower than bjtoto, is because of mphb higher risk..... mphb been spending money investing in some risky sections.

This post has been edited by john123x: Feb 10 2011, 12:03 AM

Maybe or maybe other PN17 counters as well...

By the way - NTPM & Silk close to 52 week low wor & someone diam2 accumulating

This post has been edited by mazda626: Feb 10 2011, 12:15 AM

These 2 might be a good, and safer pick.. In my opinion..