MPHB is planning to have a major restructuring

MPHB is planning to have a major restructuring that will separate the non-gaming and gaming units. By doing so, a new entity will appear to house its non-gaming assets and leaving Magnum Corporation Bhd the cash-cow and profitable numbers forecast operator alone.


Below are news extracted from Theedgemalaysia.com:

KUALA LUMPUR: Multi-Purpose Holdings Bhd (MPHB) is planning a major restructuring that will feature the creation of a new entity to house its non-gaming assets, a move that will turn the group into a pure proxy for the gaming sector.

Under the plan, MPHB is proposing to inject its interests in properties, hotels and financial services into a special purpose vehicle and leave the group with one asset, Magnum Corp Bhd, the profitable numbers forecast operator.

Financial executives familiar with the corporate proposal said shares in the new entity that will house the group’s non-gaming assets will be distributed to shareholders before a public listing.

MPHB is considering presenting the plan to shareholders at the company AGM today, according to a financial executive familiar with the exercise.

“The purpose of this exercise is to make MPHB a pure gaming outfit while creating another new listed company focusing on properties, hotels and financial services. It’s better to separate the gaming and non-gaming businesses into two listed entities to unlock the values for shareholders,” he said, adding that the listed companies would have greater appeal to different sets of institutional investors.

A restructuring at the MPHB group has been expected since it acquired a 47% stake in Magnum from private equity firm CVC Asia Pacific Ltd and another 2% from certain members of Magnum’s management for a total consideration of RM1.64 billion. That transaction was financed via the issue of new MPHB shares and cash.
In a nutshell, the exercise made Magnum a 100% subsidiary of MPHB, while CVC realised some RM600 million cash from its Magnum stake and received new shares in MPHB. CVC held an 11.21% stake in MPHB as at April 4, making it the second largest shareholder after Casi Management Sdn Bhd, which holds 28.35% equity interest. Casi is a vehicle controlled by Datuk Surin Upatkoon, who effectively owns a 33% stake in MPHB.

While the 2011 exercise mainly benefited CVC, the latest restructuring plan could benefit other MPHB shareholders, who would have shares in the new listed company in addition to their current holdings in MPHB, said a market observer.

Shareholders can either cash out from the new listed company containing the non-gaming assets or stay on to reap the growth of its property development plans.

MPHB entered into a deal with Bandar Raya Developments Bhd (BRDB) last year to jointly develop land in Penang, Rawang and Mimaland (Gombak) in Selangor. The joint development deal covers a total of 670 acres (271ha) and is expected to generate a combined gross development value of around RM4.25 billion.

However, it remains to be seen if the group wishes to further grow its financial services business, which comprises a general insurance business under Multi-Purpose Insurans Bhd and stockbroking outfit A A Anthony Securities Sdn Bhd. It has been reported that MPHB is looking to divest Penang-based A A Anthony through a management buyout.

This article appeared in The Edge Financial Daily, May 23, 2012.

MPHB is moving up again

MPHB share price has been moving up steadily for last few days. The price had gone up from RM2.70 to RM3.02.

MPHB had been aggressively selling their non-gaming businesses, meaning there are to transform the group into a gaming company. Magnum Corporation Sdn Bhd a numbers forecast operator (NFO) is under MPHB group.

There are also planning to dispose their insurance company, Multi-Purpose Insurance.

Another reason for the share price to move up is the company may pay-out special dividend to investors.
For last few years, the company had been consistently paying out 10% dividends to shareholders.

Kenanga Investment Research target price for MPHB is RM3.72.

Earning Up More Than Double For MPHB

MULTI-PURPOSE HOLDINGS BERHAD ( MPHB )
- Fourth quarter ended 31/12/2011
- Announcement date 24/02/2012

MPHB profit half gone !

MULTI-PURPOSE HOLDINGS BERHAD ( MPHB )
- Third quarter ended 30/09/2011
- Announcement date 23/11/2011

MPHB sells Menara Multi-Purpose to MCA

 MULTI-PURPOSE HOLDINGS BHD ( MPHB ) announced today that there are disposing its Menara Multi-Purpose to the Malaysian Chinese Association ( MCA ) for RM375 million cash and based on the sales, there will be an estimated gain of RM199 million.

The package includes the office tower known as Menara Multi-Purpose together with 414 car park bays.

The earnings and earnings per share of the MPHB Group for the financial year ended 31 Dec 2011 will definitely be positively affected from the disposal.

MPHB said the sales proceeds from the disposal would be utilised to repay the company's bank borrowings. The purpose of the disposal also in-line with the group's asset rationalization exercise to dispose of its non-core assets.

The original cost of the tower and parking bays were at a total of RM289 million.

Don't Sell MPHB !

A TECHNICAL SELL was put on MPHB shares by CIMB Research....... A big mistake !

Another mistaken done by Technical Analyst (TA) !!! Actually in a volatile market like now, TA is not workable, all technical indicators, like MACD, RSI, bla bla bla, are gone hire-wired.

Therefore all the indicators pointing to sell on MPHB is a mistake by TA. With current situation, all the indicators will point to sell on most counters.

In fact, with the company good fundamental, there should put a HOLD on the counter. This is so-called FA, keep the good counters instead of TA, sell when sell indicator was hit.

Below is the sell-call published in theedgemalaysia.com.

CIMB Research has Technical Sell on MPHB

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on Multi-Purpose Holdings (MPHB) at RM2.59 at which it is trading at price-to-book value of 1.3 times.


It said on Tuesday, Sept 20 that MPHB is trading below all its key moving averages. If the triangle support fails to hold, we expect next downleg to be steep. A slip below RM2.51 would push prices towards RM2.43 and RM2.35.


“Technical landscape is deteriorating. MACD signal line has staged a negative crossover while RSI is below the 50pts mark.


“Our strategy here is to unload on strength, especially near the RM2.68-RM2.80 resistances. Only a rise above RM2.80 would prompt us to review our call,” it said.

MULTI-PURPOSE HOLDING BERHAD (MPHB) - Q2, 2011

MULTI-PURPOSE HOLDING BERHAD 

- second quarter ended 30 June 2011

Revenue down from RM871 million to RM865 million.
Profit before tax up from RM121 million to RM133 million.
A dividend of RM0.05 per share was declared for this period compared to none last year.

On year to year, revenue was down more than RM50 million.
Profit up RM40 million.
Dividend was higher than last year, RM0.10 to RM0.04.

NTA was up from 2.22 to 2.62.

MULTI-PURPOSE Holdings Bhd (MPHB) Q2 Profit JUMP !

MULTI-PURPOSE Holdings Bhd (MPHB)’s net profit for the second quarter increased from RM60 million to RM70 million, a 16.5% increase.

The jump was due to a better results from gaming and stockbroking divisions.

However, its revenue was down from RM871 million to RM865 million.

The company also announced a 5% interim dividend to be pay on October.

Another good result from the company but the fell of revenue is not a good sign. Is it due to inflation, causing people don't have extra money to bet?

MPHB Sold, what to do next..........

Last week sell my MPHB at RM2.96 for some profits. May sell some more to swap with other counters.

Wanted to buy AFG, but she is flying now. Up 21 cents yesterday.

Changed target to PJDEV.

Why I buy MPHB?

MPHB has been kind to me  making money from this counter has never been easy in the last few years.

To make money from this counter, one has to be patience and have holding power. But not now, since the counter is hot after it announcement to own 100% of Magnum shares last week.

I have been buying and selling MPHB shares for sometime and let me tell you why I like this counter?

Firstly, MPHB is the parent company to Magnum, one of the four gaming company in Peninsula Malaysia, and Magnum has already delisted from Bursa a few years ago, therefore by buying MPHB indirectly I am owning Magnum shares.

Second, share price for MPHB is the cheapest among the four gaming company in the Peninsula Malaysia, namely GENTING, TANJONG and BJTOTO. The cheapest among these three are BJTOTO which is values at RM4.00++.

Third, MPHB's management team also doing their job by discarding non-profits businesses before and after delisting of Magnum and tried to concentrate on its core business. Therefore, the potential to turn the company into profitable is insight.

Fourth, as Magnum is a cash-cow company, whoever holding it will not short of money.

Fifth, MPHB is buying-back their shares continuously and has been paying good dividends for last few years, which is better than FD.

Example in 2009, MPHB was very generous by declaring a distribution of treasury shares of one (1) treasury share for every ten (10) existing ordinary shares, a 10% return.

Anyway, I have been buying and selling MPHB shares since it was valued at RM0.90 until now, RM2.72 as at yesterday closing. With MPHB holding 100% on Magnum, I will hold the remaining a little bit longer. Probably will buy in some more if the price drop below RM2.30.

The comments above do not represent a recommendation to buy or sell. Buy or sell at your own risks.

MPHB : Magnum 4D's Winning Amounts reduced

MPHB announced that their subsidiary company, Magnum obtained approval from Ministry of Finance (MoF)  to revise their Special Prizes for its 4 Digit Big Game from RM200 to RM180 per RM1 bet (Big) effective from 15 December 2010.
The revised also involved Special Prizes for 4 Digit mBox Big game.

This is really a good news to the company as the revise will have a positive impact on the earnings for Magnum and also MPHB in the coming earning reports.

Although it was just a RM20+ reduction but definitely this amount will contra-off the earlier increased in Pool Betting Duty this year.

With Magnum getting the approval, it won't be surprised to see the other two NFO also getting the same goodies.

Will analysts revise MPHB target price? Will see...

MPHB up up up......