I failed to be selected as one of the investors for MHB during IPO. Many of my friends failed as well. How about you? If you are the lucky one, congratulates to you. I believe invest in MHB IPO just like buying Amanah Saham. It's hard and require a lot of chances and luck, especially for non-bumiputra. Of course, selected investor would be consider entering at a safe entry point, just like Maxis IPO.
Anyway, we won't be so upset because we failed to be selected, as MHB has great buy-in interests and managed to push the price up closely to 13%, a good intraday profit for short-term investor. By looking atthe history, Maxis might be an unfortunate case and yes, many of us burned our hand by enter early when the market opens. That would not always the case.
On Friday, finishing at RM4.51, MHB was the most active counter yesterday with 1.42 billion shares changing hands against the bourse’s total trading volume of 1.62 billion shares. MHB hit an intra-day high of RM4.69 and low of RM4.12.
“Currently, we are busy with the Gumusut-Kakap deepwater project. We are the only fabricator in the country with the capability to do deepwater structures,” the chariman told reporters after MHB’s listing ceremony. Managing director and chief executive officer Wan Yusoff Wan Hamat said the yard optimisation programme would enable MHB to execute more complex projects of higher tonnage. “The additional funding will also enable us to optimise our capital structure and undertake more high value projects,” he said.
Meanwhile, MHB’s closing price far exceeded the RM4.20 projected by MIDF Research. The research house, however, said MHB’s order book of RM5.9bil, which would only last until next year, would need replenishment soon. “Order book replenishment is the number one priority right now, failing which MHB’s revenue and earnings for financial year 2013 onwards will be severely impacted.
“During a recent analyst briefing, MHB disclosed that its tender book was circa RM9bil, with a 60:40 mix between domestic and foreign tenders,” said MIDF Research in a report yesterday. However, MIDF Research believed that some major oil and gas contract awards were imminent from, among others, Petroliam Nasional Bhd and MISC Bhd. “Among the potential new projects soon to be awarded are Malikai deepwater field, enhanced oil recovery contracts, phase 2 of Turkmenistan project and liquefied natural gas regasification,” it said.
Kenanga Research said MHB’s strategic partnership with Technip SA, a French oilfield services group, would present new opportunities to MHB in the global arena. “MHB is also strongly positioned to benefit from its operations in Turkmenistan and its excellent track record in the domestic oil and gas industry with its steady stream of contracts. “Hence, we fair value MHB at RM4 per share using earnings per share of 26.7 sen on 15 times price-earnings ratio,” it said in a report.
MHB, one of seven offshore fabrication yard licence holders in the country, posted a net profit of RM110.2mil for its first quarter ended June 30, a 207.8% increase over the previous corresponding period. Its revenue stood at RM1.17bil against RM1.67bil previously. Its major stakeholders include MISC with a 66.5% stake and Technip SA, 8%.
From the look at it, the closing price of RM4.51 seems like a little bit overprice by now. Well, that's for analysts, not investors. Let's see whether it'll repeats what Maxis price did.
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