Saham: KLSE-MBL - PT. Muar Ban Lee Group Berhad

MATERIAL LITIGATIONMUAR BAN LEE GROUP BERHAD ("MBL" OR "THE COMPANY")
[PENANG HIGH COURT, CIVIL SUIT NO.: PA-22NCC-13-04/2022]
DOA HUAT HOLDINGS SDN BHD ("PLAINTIFF") VS. MBL PLANTATION SDN BHD ("MBLPSB" OR "DEFENDANT")

MATERIAL LITIGATION [MBL]

MATERIAL LITIGATIONMUAR BAN LEE GROUP BERHAD ("MBL" OR "THE COMPANY")
[PENANG HIGH COURT, CIVIL SUIT NO.: PA-22NCC-13-04/2022]
DOA HUAT HOLDINGS SDN BHD ("PLAINTIFF") VS. MBL PLANTATION SDN BHD ("MBLPSB" OR "DEFENDANT")

OTHERS [MBL]

OTHERSMUAR BAN LEE GROUP BERHAD
-PROPOSED RENEWAL OF THE AUTHORITY FOR SHARES BUY-BACK

MATERIAL LITIGATION [MBL]

MATERIAL LITIGATIONMUAR BAN LEE GROUP BERHAD ("MBL" OR "THE COMPANY")
[PENANG HIGH COURT, CIVIL SUIT NO.: PA-22NCC-13-04/2022]
DOA HUAT HOLDINGS SDN BHD ("PLAINTIFF") VS. MBL PLANTATION SDN BHD ("MBLPSB" OR "DEFENDANT")

CPO PRICES GOING BACK TO RM5,000? TIME TO LOOK AT THIS COMPANY!

With CPO prices skyrocketing, it is quite common for investors to look for the next “gold mine” to invest their money. But as you may know, the share price of several plantation companies with relatively good extraction yield and tree profile has already gone up.

Hence, your risks of investing into these companies are relatively higher NOW.
In the rush of gold mining, those who sell shovels and jeans are in fact, the more safer option. And in the context of CPO in Malaysia, perhaps this company – Muar Ban Lee Group might be interesting.

Muar Ban Lee Group, or MBL in short, had over 40 years of experience in palm kernel expeller machines manufacturing, Empty Fruit Bunch or FFB treatment machine, palm kernel oil leaf filter, as well as involvement in the biogas industry.

Currently, MBL is trading at only a PE of 5.70 times, with a market capitalization of RM109.0 million, where the net assets of the company are easily double of their market value. This poses a potential trading or investment opportunity for many investors, as MBL is rarely mentioned by investors.

Will $MBL / 5152 (MUAR BAN LEE GROUP BERHAD) be the next gold to shine in this market?

MATERIAL LITIGATION [MBL]

MATERIAL LITIGATIONMUAR BAN LEE GROUP BERHAD ("MBL" OR "THE COMPANY")
[PENANG HIGH COURT, CIVIL SUIT NO.: PA-22NCC-13-04/2022]
DOA HUAT HOLDINGS SDN BHD ("PLAINTIFF") VS. MBL PLANTATION SDN BHD ("MBLPSB" OR "DEFENDANT")

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

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

The Plantation Themed Stock that Deserve More Attention

Muar Ban Lee Group Bhd (MBL), a well-known plantation themed company in Bursa Malaysia, recently has caught my attention as a very interesting company amidst the sea of investment prospects, particularly for its proactive approach in the palm kernel oil sector amidst the uncertainties of El Niño.

This weather pattern, worse known for its disruptive impact on agriculture, poses a significant challenge, especially in key palm oil-producing regions like Malaysia and Indonesia. However, MBL’s roots in the technology and its foray into the biogas sector suggest a robust framework for navigating these challenges, making it a noteworthy consideration for my investment watchlist.

Let us delve deeper into the topic today.

The variability of El Niño’s impact on crop yields, particularly for palm oil, is a concern for the industry. Yet, the presence of factors such as labour force and mature plantations may offer some mitigation. Despite mixed forecasts on palm oil production for the upcoming year, there’s a cautiously optimistic outlook for Malaysia’s production capabilities, which could bode well for companies like MBL.

An anticipated uptick in palm oil prices, influenced by global policy shifts and demand dynamics, notably from China, adds another layer of potential for MBL. These market conditions could potentially enhance the revenue from MBL’s core operations of enhancing efficiency yield in palm kennel processing, which is inline with the company’s strategic initiatives in palm kernel oil processing and biogas production.

The move towards biogas is also interesting. It not only diversifies MBL’s revenue streams but also aligns with the global momentum towards renewable energy sources. This venture could mitigate some of the risks tied to traditional palm oil markets and the potential production volatilities brought about by El Niño, further strengthening MBL’s position as an investment prospect.

Diversification is another key aspect of MBL’s strategy, with ventures into the automotive sector and plantation investments broadening its business scope. This multifaceted approach underpins MBL’s potential for sustained growth and resilience, further validating its watchlist-worthy status.

The valuation of MBL, particularly when contrasted with its net asset value of 95.0 cents compared to the current share price of 43.5 cents, suggests an undervaluation that piques my interest as an investor. Coupled with the company’s historical propensity for consistent dividend payouts pre-pandemic, there’s a tangible appeal for potential future returns.

However, the looming El Niño presents a variable that necessitates close monitoring, given its potential implications for palm oil production and, subsequently, MBL’s performance. The company’s ability to leverage its strengths and adapt to these challenges will be crucial in affirming its place on my investment watchlist.

Now, do you why $MBL / 5152 (MUAR BAN LEE GROUP BERHAD) remains in my investment watchlist?

MBL

Muar Ban Lee Group Berhad

Company Background