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POWER
MALAKOFFCORPORATION(MLK MK EQUITY, MALA.KL) 22 Mar 2016
T4 plant achieves COD
Company report BUYMax Koh
[email protected]
03-2036 2299
Price: RM1.60Fair Value: RM2.10
Rationale for report : Comp any upd ate
YE to Dec FY15 FY16F FY17F FY18F
FD Core EPS (sen) 9.1 10.6 12.0 12.1PE (x) 17.8 15.1 13.5
13.3
Source: AmInvestment Bank Bhd
In a Bursa filing, Malakoff Corp Bhd said its 1,000MW T4 plant
in Tanjung Binachieved COD yesterday. This is in line with its
targeted completion of March thisyear.
The ultra-supercritical coal-fired plant was developed by its
wholly-ownedsubsidiary, Tanjung Bin Energy Sdn Bhd (TBE), for
RM6.7bil. By achieving COD,
Malakoffs total net effective generation capacity has increased
to 6,346MW from
5,346MW.
TBE has a 25-year PPA with TNB effective from the COD of the T4
plant.
Recall that TBE is the first IPP project awarded by the Energy
Commission via acompetitive bidding process. It also signed a coal
supply and transportation
agreement with TNB Fuel Services Sdn Bhd for the supply of coal
to the power plant.
The T4 plant was built by a consortium comprising GE Steam Power
Systems,Mudajaya Corp and Shin Eversendai Engineering (M) Sdn Bhd.
Construction beganin 2012 and it was completed on schedule.
T4 is located on a 65ha plot of land adjacent to Malakoffs
existing 2,100MW TanjungBin Power (TBP) power plant. Both plants
share common infrastructure, such as
coal handling facilities, power evacuation, seawater intake and
other access
facilities.
Malakoff said the new plant will enhance the groups
profitability in FY16F onwards.
There are no changes in our numbers as we have already factored
in contributionsfrom the new plant. In our model, we have computed
the new plant to contribute
RM842mil (or 14% of groups revenue) this year, before increasing
to ~RM1.4bil in
FY17F as it increases power dispatch. Our BUY call and
DCF-derived fair value of
RM2.10/share is maintained.
Published by
AmInvestment Bank Bhd (23742-V)(A member of the AmBank
Group)
1 5 t h F l o o r B a n g u n a n A m B a n k G r o u p55 Jalan
Raja Chulan50200 Kuala LumpurTel: ( 03)2070-2 444 ( r esearch)F a x
: ( 0 3 ) 2 0 7 8 - 3 1 6 2
Printed by
AmInvestment Bank Bhd (23742-V)(A member of the AmBank Group)1 5
t h F l o o r B a n g u n a n A m B a n k G r o u p
55 Jalan Raja Chulan50200 Kuala LumpurTel: ( 03)2070-2 444 ( r
esearch)F a x : ( 0 3 ) 2 0 7 8 - 3 1 6 2
The information and opinions in this report were prepared by
AmInvestment Bank Bhd. The investments discussed or recommended
in
this report may not be suitable for all investors. This report
has been prepared for information purpose s only and is not an
offer to sell
or a solicitation to buy any securities. The directors and
employee s of AmInvestment Bank Bhd may from time to time have a
position
in or with the securities mentioned herein. Members of the
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company
and affiliates of such companies whose securities are mentioned
herein. The information herein was obtained or derived from
sources
that we believe are reliable, but while all reasonable care has
been taken to ensure that stated facts are accurate and opinions
fair and
reasonable, we do not represent that it is accurate or complete
and it should not be relied upon as such. No liability can be
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this date and are subject to change without notice.
For AmInvestment Bank Bhd
Benny Chew
SR VP Equity Research
7/26/2019 Malakoff 160322
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Malakoff Corporation 22 Mar 2016
AmInvestment Bank Bhd 2
TABLE 1 :VALUATION MATRIX
YE 31 Dec FY14 FY15 FY16F FY17F FY18F
Revenue (RM mil) 5,594.5 5,302.0 6,191.8 6,341.1 6,499.8Core net
profit (RM mil) 280.6 453.3 532.4 597.7 603.6
FD Core EPS (sen) 5.6 9.1 10.6 12.0 12.1FD Core EPS growth (%)
73.7 61.6 17.4 12.3 1.0Consensus Net Profit (RM mil) - - 550.1
556.5 508.9DPS (sen) 4.0 7.0 7.5 8.5 9.0PE (x) 28.7 17.8 15.1 13.5
13.3EV/EBITDA (x) 9.6 9.1 6.6 5.8 5.6Div yield (%) 2.5 4.4 4.7 5.3
5.7
ROE (%) 8.7 9.3 9.2 10.3 10.4Net Gearing (%) 369.7 249.7 156.1
126.7 101.7
Source: Company, AmInvestment Bank Bhd estimates
