Logo of Phnom Penh Post newspaper Phnom Penh Post - Maybank lauds Mega First’s Cambodian power project

Maybank lauds Mega First’s Cambodian power project

Maybank lauds Mega First’s Cambodian power project

Maybank Investment Bank Research is positive on the progress of Mega First Corp Bhd’s (MFCB) transmission line from the Don Sahong Hydropower Project in Khong district in Laos’ Champasak province to Cambodia’s Stung Treng province.

On Tuesday, it said the line is expected to be completed by early December, in time for Don Sahong’s commercial operations in January.

“We raise our sum-of-parts target price by 15 per cent to five ringgit [$1.20] after adjusting for lower risks on completion of the line.

“Potential upside to our [fiscal year 2020-2021] forecasts having imputed for more conservative efficiency rates and margins at Don Sahong against management’s guidance. Reiterate ‘Buy’ on undemanding valuations of 7.8 times [expected fiscal year 2020] price-to-earnings ratio [-0.5 standard deviation],” it said.

Maybank Research said to speed up the process of channelling power from Don Sahong to Cambodia, Electricite du Laos (EdL) will port a connection from Tower 23 of MFCB’s newly-completed Don Sahong-Ban Hat transmission line straight to the Laos-Cambodia border.

EdL’s “interim” transmission line is expected to be completed in December.

Electricite du Cambodge is constructing a 60km stretch on the Cambodian side.

Based on the current progress, MFCB does not foresee any delays to the start of Don Sahong’s commercial operations in January.

“Wet testing and power transmission of the project’s four turbines will begin in phases from October 2019.

“The sale of energy during wet testing could boost [expected fiscal year 2019] core net profit by up to $8 million. Given this, we expect [the fourth quarter of this year] to be a bumper quarter.

“Additionally, costs for Don Sahong at the project level could be lower than the projected $401 million, partly due to lower-than-expected interest rates.

“If so, MFCB could book a one-off cumulative adjustment in [the fourth quarter of this year] to reflect its lower project costs,” the research house said.

THE STAR (MALAYSIA)

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be