Eastland Equity Bhd

Equity Research Note: Meta Bright Group Bhd (2097)

Date: March 13, 2025

Ticker: MBRIGHT (Bursa Malaysia)

Current Price: RM0.115 (-4.17% intraday)

Market Cap: RM291 million

Recommendation: Buy

Target Price: RM0.18 (56% upside)

Investment Thesis

Meta Bright Group Bhd (MBRIGHT), formerly Eastland Equity Bhd, is set to capitalize on Sabah’s infrastructure boom through its subsidiary, Expogaya Sdn Bhd, the state’s largest ready-mix concrete supplier. With Sabah’s construction sector fuelled by RM23.8 billion in federal infrastructure allocations (Budget 2025) and a growing pipeline of private developments, Expogaya’s operational scale, strategic investments, and sustainability focus position METABRIGHT as an undervalued growth play in Malaysia’s industrial materials space.

At RM0.115, MBG trades at a discount to its intrinsic value, supported by a robust RM800 million project pipeline and a planned RM20 million capacity expansion. We initiate coverage with a Buy rating and a 12-month target price of RM0.18.

Company Overview

Meta Bright Group, listed on Bursa Malaysia, operates across multiple sectors but derives significant revenue momentum from Expogaya, its wholly-owned subsidiary established in 2006. Expogaya dominates Sabah’s ready-mix concrete market, leveraging 16 batching plants and a fleet of 318 vehicles to deliver 7,200 cubic meters daily.

In FY2025, Expogaya contributed RM98.44 million to MBG’s topline, reflecting its growing importance to the group amid Sabah’s infrastructure-driven tailwinds.

Macro Tailwinds: Sabah’s Infrastructure Surge

Sabah’s construction sector is undergoing a transformative phase, underpinned by:

Budget 2025 Allocations: RM6.7 billion for rural development and RM9.7 billion for the Pan Borneo Highway, alongside RM7.4 billion for the Sabah-Sarawak Link Road (SSLR) Phase 2.

Private Sector Growth: Mixed-use projects like 88 Avenue in Kota Kinabalu (RM60 million Expogaya contract) signal rising urban demand.

These investments translate into an “insatiable” demand for ready-mix concrete, a critical input for highways, bridges, and urban developments. Expogaya’s entrenched position as Sabah’s leading supplier gives MBG a first-mover advantage in this high-growth market.

Operational Excellence and Growth Catalysts

Scale and Efficiency:

· 16 batching plants across Sabah ensure supply chain resilience despite logistical challenges.

· A 318-vehicle fleet (mixer trucks, dump trucks, concrete pumps) minimizes delays, enhancing client reliability.

· Daily capacity of 7,200 cubic meters, with a RM20 million investment from MBG slated to boost output within two years.

Revenue Momentum:

FY2025 contribution of RM98.44 million underscores Expogaya’s profitability.

Completed RM220 million in projects over the past two years, with an RM800 million pipeline over the next 3-4 years signalling sustained growth.

Sustainability Edge:

· Adoption of low-carbon concrete aligns with Malaysia’s green building standards, enhancing appeal to ESG-focused investors.

· Annual CAPEX of RM10 million ensures cutting-edge equipment and eco-friendly production.

Financial Snapshot

While full FY2025 financials are pending, Expogaya’s RM98.44 million revenue contribution suggests it accounts for a significant portion of MBRIGHT’s topline. At a market cap of RM291 million and a share price of RM0.115, MBRIGHT appears undervalued relative to its growth prospects. Assuming a conservative 10% net margin on Expogaya’s revenue and factoring in the broader group’s diversification, we estimate MBRIGHT’s forward P/E at ~8x, well below the Bursa Malaysia industrial sector average of 12-15x.

Valuation and Price Target

We value MBG using a discounted cash flow (DCF) model, projecting Expogaya’s cash flows from its RM800 million pipeline and capacity expansion. Key assumptions:

· Revenue CAGR of 15% over 2025-2028, driven by infrastructure spending.

· EBIT margin of 12%, reflecting operational leverage.

· WACC of 10%, conservative for a mid-cap industrial player.

· This yields a target price of RM0.18, implying a 56% upside. Upside risks include accelerated project awards, while downside risks include execution delays or commodity price volatility (e.g., cement costs).

Investment Risks

· Execution Risk: Delays in Sabah’s infrastructure projects could defer revenue recognition.

· Commodity Inflation: Rising input costs (e.g., cement, fuel) may pressure margins.

· Liquidity: Low trading volume may deter institutional interest.

Conclusion

Meta Bright Group offers a rare opportunity to invest in Sabah’s infrastructure boom via Expogaya, a market leader with operational scale, a strong project pipeline, and ESG credentials. At RM0.115, the stock is mispriced relative to its growth trajectory. We recommend Buy with a target of RM0.18, anticipating catalysts from capacity expansion and project execution over the next 12-18 months.

$EASTLND / 2097 (EASTLAND EQUITY BHD)

Meta Bright’s Property ‘Ang Pao’: A RM8.25 Million Surprise Gift in Setapak?

In a twist reminiscent of finding cash in a festive red envelope, Meta Bright Group Berhad (MBGB) recently uncovered an unexpected windfall: five forgotten shoplots in Setapak, Kuala Lumpur, worth a collective RM8.25 million. The discovery, announced on January 24, 2025, feels like a stroke of corporate luck—a hidden gem tucked away in the company’s portfolio, waiting to be opened.

The ‘Ang Pao’ Moment: How It Happened

The story begins with a routine audit sparked by an unrelated legal tussle. In 2022, MBGB’s subsidiary, FBO Land, settled a small debt with Indah Water Konsortium. But like shaking an old coat and finding money in the pocket, this process led to a bigger surprise: five commercial shoplots, developed in the 1990s, had slipped through the cracks of FBO’s records.

Located at Jalan 3/23A, Off Jalan Genting Klang, these 3-storey units were quietly sitting in a bustling part of Setapak—a stone’s throw from Kuala Lumpur’s city center. For years, they went unnoticed, much like missing coins misplaced under a sofa. Yet, their value is no small change: each shoplot is priced at RM1.65 million, with all five already rented out to tenants.

Why This Discovery Matters?

For Meta Bright, this isn’t just about balancing the books. It’s a strategic jackpot. Imagine receiving an angpao that keeps giving:

Instant Cash Flow: All five units are already occupied, meaning rental income is flowing in today. While exact figures aren’t public, similar properties in Setapak generate 5–7% annual returns—potentially adding over RM500,000 yearly to MBGB’s coffers.

Future Flexibility: The company could hold the properties for steady income or sell them as Setapak’s market heats up. Recent sales nearby hit RM1.78 million per unit, suggesting even bigger gains down the road.

A Confidence Boost: The recovery shows MBGB’s commitment to cleaning house. After resolving legal hiccups (like a lien holder’s caveat) and replacing lost title deeds, the company has turned a paperwork headache into a win for shareholders.

What’s Next for Meta Bright?

While the RM8.25 million windfall won’t immediately spike earnings, it’s a long-term play. CEO Datuk Lim Chong Jin hinted at “strategic options,” including using the spaces for MBGB’s renewable energy ventures or hospitality projects. For now, the rentals alone act like a yearly Ang Pao—reliable, recurring, and ripe for growth as Setapak evolves.

In the end, Meta Bright’s story isn’t just about luck. It’s about diligence—turning an oversight into opportunity. Like finding money in an old pair of jeans, this discovery rewards patience and prudence. For investors, it’s a reminder that sometimes, the best gifts aren’t just handed out; they’re uncovered where you least expect them.

Meta Bright’s “property Ang Pao” might just be the start of a prosperous Lunar New Year—or fiscal year—for the company.

$EASTLND / 2097 (EASTLAND EQUITY BHD)

Technical Indicator – Meta Bright Group Berhad (2097)

Meta Bright Group Berhad has been showing some interesting price action, especially as it approaches critical levels on the chart. The stock is currently holding at a crucial support level of RM0.120. This level has proven to be a significant zone of buying interest in the past, as evidenced by the repeated testing and subsequent rebounds.

On the upside, the nearest resistance stands at RM0.130. This level aligns with previous consolidation zones and could act as the first barrier for any upward movement. Beyond RM0.130, additional resistance levels are seen at RM0.140, RM0.150, and RM0.160, which reflect historical price clusters where selling pressure has been dominant. Breaking through these levels would require strong bullish momentum, supported by higher trading volumes.

Volume analysis shows a noticeable increase as the price approached RM0.120, suggesting active participation from buyers at this key support level. This reinforces the strength of the RM0.120 zone and its importance in determining the stock's next move. Traders should watch for any changes in volume behaviour, as it could indicate shifts in market sentiment.

The Relative Strength Index (RSI) further adds an intriguing element to the analysis. Currently, the RSI suggests a potential oversold condition, which often signals that selling pressure may be exhausted.

In conclusion, RM0.120 is a vital support level that could determine the stock's trajectory.

Holding above this level may provide an opportunity for a rebound, particularly with the RSI hinting at oversold conditions. On the other hand, a break below could lead to further declines. If the stock manages to regain bullish momentum, RM0.130 will serve as the first resistance level to watch, followed by RM0.140, RM0.150, and RM0.160.

$EASTLND / 2097 (EASTLAND EQUITY BHD)

刚增持了正源集团 Meta Bright（2097）？

最近比较弱的市场，是非常好寻找投资机会的时机，而我们也增持了正源集团这家公司的股权，以下则是为什么：

长期战略明确，专注多元化投资

正源集团从一家以房地产为主的公司，成功转型为一个多元化的投资控股集团，展现了出色的市场适应能力。

公司未来的增长依赖于如何进一步整合新业务，尤其是在高增长领域进行并购，目标是通过这些业务为股东创造长期的可持续收入。管理层的目标明确，未来可能分拆上市或合并互补业务，从而创造更多价值。

能源与租赁业务前景广阔

能源业务（尤其是可再生能源）专注于商业和工业建筑，不仅符合环保趋势，还带来了稳定的经常性收入来源。

租赁业务尤其在澳洲的采矿设备租赁方面表现突出，受益于铜矿业的需求大增，为公司带来良好的业务机会。这些新兴业务标志着公司进入一个新的发展阶段，具有极大的增长潜力。

近期财务表现亮眼

正源集团在2024财年实现了35.51%的盈利增长，达到1178万令吉，营业额也大幅上涨了三倍，达到1亿292万令吉。

尤其是建筑材料业务（通过收购Expogaya公司）为公司贡献了6053万令吉的收入。未来五年，这笔收购预计还将带来至少3000万令吉的利润保障。

房地产仍是核心业务，产业升级带来新机会

房地产业务依然是公司的核心之一，尤其是其位于吉兰丹的旗舰酒店Renai正在进行翻新，虽然当前客房收入有所下降，但未来有望吸引更多商务旅客，增长潜力巨大。

公司积极推动并购与整合

正源集团的管理层长期以来专注于通过战略并购和业务整合，尤其是在能源和租赁领域，进一步提升公司的市场竞争力和盈利能力。

这种并购策略不仅增加了收入来源，也使公司能够在瞬息万变的市场环境中应对挑战，抓住新的机会。

$EASTLND / 2097 (EASTLAND EQUITY BHD)

PROVISION OF FINANCIAL ASSISTANCE

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

MEMORANDUM OF UNDERSTANDINGMEMORANDUM OF UNDERSTANDING META BRIGHT GROUP BERHAD ("THE COMPANY" OR "MBGB") - UPDATE ON THE STATUS OF MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN MBGB AND KOPERASI KAKITANGAN ISTANA PAHANG BERHAD ("KKIPB") TO EXPLORE THE POTENTIAL COLLABORATION AS JOINT VENTURE PARTNERS IN RESPECT OF RENEWABLE ENERGY AND ENERGY EFFICIENCY PROJECTS ("MoU")

MEMORANDUM OF UNDERSTANDINGMETA BRIGHT GROUP BERHAD ("THE COMPANY" OR "MBGB") - MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN MBGB AND CHEMPARTNER PHARMATECH CO., LTD

OTHERSMETA BRIGHT GROUP BERHAD ("MBGB" OR THE "COMPANY")
- ACCEPTANCE OF BANKING FACILITIES FROM AMBANK (M) BERHAD BY ITS WHOLLY-OWNED SUBSIDIARY, META BRIGHT SDN BHD

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSMETA BRIGHT GROUP BERHAD ("MBGB" OR THE "COMPANY")
- DRY HIRE EQUIPMENT RENTAL AGREEMENT ENTERED INTO BETWEEN META BRIGHT AUSTRALIA PTY LTD ("META BRIGHT AUSTRALIA") AND MT CUTHBERT RESOURCES PTY LTD ("MCR") FOR THE LEASING OF MACHINERIES AND/OR EQUIPMENT BY META BRIGHT AUSTRALIA TO MCR

OTHERSMeta Bright Group Berhad ("MBGB" or the "Company")
- Novation of the Solar Supply Agreement entered into between Doople Tech Sdn. Bhd. and Cherengin Hills Sdn. Bhd. to FBO Land (Serendah) Sdn. Bhd., the wholly-owned subsidiary of the Company

OTHERSMeta Bright Group Berhad ("MBGB" or the "Company")
- Subscription and Joint Venture Agreement between Doople Tech Sdn. Bhd. and FBO Land (Serendah) Sdn. Bhd., the wholly-owned subsidiary of the Company

PROVISION OF FINANCIAL ASSISTANCE

OTHERSMETA BRIGHT GROUP BERHAD ("MBGB" OR THE "COMPANY")
- SOLAR PROGRAM ACCEPTANCE BY SINERGI PERDANA SDN. BHD.

Changes in Director's Interest (Section 219 of CA 2016) - DATO' LEE WAI MUN, DIMP., JMK., JP.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - LEADING VENTURES SDN. BHD.

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATO' LEE WAI MUN, DIMP., JMK., JP.

Changes in Director's Interest (Section 219 of CA 2016) - MR PHANG KIEW LIM

MEMORANDUM OF UNDERSTANDINGMETA BRIGHT GROUP BERHAD ("THE COMPANY" OR "MBGB") - UPDATE ON THE STATUS OF MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN MBGB AND KOPERASI KAKITANGAN ISTANA PAHANG BERHAD ("KKIPB") TO EXPLORE THE POTENTIAL COLLABORATION AS JOINT VENTURE PARTNERS IN RESPECT OF RENEWABLE ENERGY AND ENERGY EFFICIENCY PROJECTS ("MoU")

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period

Additional Listing Announcement /Subdivision of Shares

MULTIPLE PROPOSALSMETA BRIGHT GROUP BERHAD ("MBGB" OR "COMPANY")

(I) PROPOSED ACQUISITION; AND

(II) PROPOSED DIVERSIFICATION

(COLLECTIVELY, REFERRED TO AS THE "PROPOSALS")

Additional Listing Announcement /Subdivision of Shares

Changes in Director's Interest (Section 219 of CA 2016) - MR PHANG KIEW LIM

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR PHANG KIEW LIM

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR PHANG KIEW LIM