KUALA LUMPUR: MMC Corp Bhd (MMC) is expected to fare better this year without trade disruptions on anticipation that there would be no further wide-scale lockdowns that could hinder movement of trade.
In comparison with last year, AmBank Investment Research said the port player’s operation would be supported by the positive outlook on global trade and investments in the manufacturing sector this year which is likely to generate more feedstock and finished products throughput for ports.
“MMC is well positioned to capitalise on these via its stable of five ports in Peninsular Malaysia with a total container handling capacity of 21.3 million twenty-foot equivalent units (TEUs) annually, which is 50% higher than its peer, Westports’ capacity of 14 milion TEUs annually.
“We see value in MMC with its port business valued at nine times forward price-to-earnings ratio on a stand-alone basis, ” it added.
On another positive note, MIDF Research also believed MMC-Gamuda joint venture has high chances of securing the MRT 3 project on a turnkey basis given its prior experience with the first two lines.
As such, the research house said there is an urgency for the group to enhance its order book visibility after financial year 2023 (FY23).
“Given its track record and financial strength, we are quite optimistic on MMC’s capabilities to replenish its order book, ” it added.