Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Muhibbah Engineering (M) Bhd. is a diversified engineering and construction group that undertakes oil and gas, marine, infrastructure, civil, and structural engineering projects across Malaysia and internationally. The company's operations are structured across four key segments: Infrastructure Construction, Cranes, Marine Shipbuilding and Ship Repair, and Concession. The Infrastructure Construction segment is responsible for building a broad range of facilities, including petroleum hubs, oil and gas terminals, liquefied natural gas (LNG) jetties, marine ports, bridges, dams, airport runways, terminal buildings, and substantial concrete foundations. Beyond construction, this segment also involves structural steel fabrication, the manufacturing and maintenance of airline support equipment, property development and real estate trading, the distribution and marketing of construction materials, and the provision of marine and offshore leasing along with vessel chartering services. Uniquely, it also includes the manufacturing of items like aluminum foils, carbonless papers, and refrigerator containers, and trading in waste heat recovery units and spare parts. The Cranes segment specializes in the design, manufacture, supply, trade, lease, and maintenance of heavy lifting machinery, such as offshore oil and gas pedestal and tower cranes, and shipyard cranes. This segment also offers crane rental and repair services, provides management support, and deals with winches, hydraulic systems, and other material handling equipment. Additionally, it provides engineering and servicing for integrated automation solutions, process analyzers, and specialized industrial equipment. The Marine Shipbuilding and Ship Repair segment focuses on the design, engineering, construction, and maintenance of various vessels, including anchor handling tugboats, supply and marine vessels, and accommodation ships, primarily serving the offshore oil and gas exploration and production sector. This segment also engages in ship rentals and trades marine supplies. The Concession segment is involved in the privatization and operation of international airports in Cambodia, alongside providing road maintenance services. Established in 1972, the company maintains its headquarters in Klang, Malaysia.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, undervalue
Target Price
The average target price of 5703.KL is 0.81 and suggests 51.4% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i