25 April 2012
OSK Research remains prudent and did not impute any earnings enhancement for MMC Corp for possible Pakistan ventures given the dire situation of electricity generation in Pakistan
Share price of MMC Corporation Bhd fell on Wednesday on concerns about its unit Malakoff Corp's possible entry into Pakistan to set up two power plants.
At 10.49am, MMC was down 12 sen to RM2.62 at 10.49am.
The FBM KLCI was up 0.03 of a point to 1,582.31. Turnover was 512.73 million shares valued at RM312.28mil. There were 252 gainers, 199 losers and 263 stocks unchanged.
News reports said Malakoff Corp was looking to energy-hungry Pakistan for new investment opportunities and has proposed to its government the setting up of two power plants, including a 1,200MW imported coal-fired project and a 250MW wind power project which could cost about US$450,000 (RM1.38mil). The wind farm could cost about US$1,800/MW.
OSK Research said given the dire situation of electricity generation in Pakistan, it prefered to remain prudent and did not impute any earnings enhancement from any possible Pakistan ventures.
“We understand from Tenaga Nasional (TNB) that operating a power plant in Pakistan (TNB has its 232MW Liberty power plant there) is not that easy. Nonetheless, newsflow continues to remain positive for MMC and we maintain our Trading Buy call on the company with an unchanged FV of RM3.70,” it said.