is a reputed website selling apple developer account, providing us, China and worldwide developer individual accounts for sale. It's at low price and good quality. Always provides satisfying services!


aws全区号(’s rights issue exercise raises concerns



aws全区号提供aws账号、aws全区号、aws32v账号、亚马逊云账号出售,提供api ,质量稳定,数量持续。另有售azure oracle linode等账号.

Kenanga said that in their view, this was an unexpected rights issuance. (File pic shows a Muhibbah project)

PETALING JAYA: Muhibbah Engineering (M) Bhd’s proposed rights issue, which targets to raise RM120mil, has raised concerns.

Kenanga Research noted the exercise, which was to raise funds mainly to pare down the company’s debt, was a cause for concern due to the impact on the company’s gearing.

“It can raise another RM1.65bil before hitting the two times net gearing limit. With so much additional debt head room, we opined that such rights exercise could potentially allude to the inability to collect receivables, which could lead to cash constraints and impairments and the inability to raise additional debt to bridge funding needs,” Kenanga Research said.

Kenanga said that in their view, this was an unexpected rights issuance.

“We were completely caught off guard by such an exercise to pare down debts as Muhibah’s net gearing has been trending down from its peak of 0.58 times in the fourth quarter of the financial year 2019 (FY19) and currently stands at manageable levels of 0.50 times,” it said.

It noted that its receivable turnover days have remained rather healthy by historical means at 292 days compared to the five-year average of 279 days and that operating cash-flows were also positive.

Kenanga also said that in a low interest rate environment, the use of equity to solely pare down debts to save a 3% interest cost is a poor allocation of capital which dilutes earnings per share and returns on equity.

“What’s more perplexing was that our checks with management revealed that they are comfortable with a net gearing of below two times and there is currently no covenant that prohibits them from raising additional borrowings,” it said.

“While an acquisition could potentially be on the cards, we still feel using debt to fund acquisitions would be a better option. Even if equity was the preferred choice for funding, it would be wiser to time the rights announcement alongside the acquisition which would clear suspicion over cash-flows issues,” Kenanga added.

The research house raised Muhibbah’s FY22 earnings forecast by 6% to RM25.5mil to factor in the potential interest savings later this year.

However, it downgraded the stock to a “market perform” from “outperform” with a lower target price of 60 sen, or 56.5 sen post rights issuance, from RM1.25 after completely omitting valuations for its infrastructure division due to poor execution and potential impairments, among other factors.



Popular tags