Maybulk is the 4th Gem

History of Maybulk
2Ys & Goh bot fr Robert Kuok, while stock @ 0.54 in 2022 April.
2Ys sold to Goh @0.425 a year after.

Core biz:
Shipping, profit margin 20－25%. Biz nature is a CYCLE biz.

Latest exercises:
~Capital reduction on 23Q3
~Venturing into shelving and storage biz, with profit margin ~13%
~Ship sale at 140m on Nov 2023, which will be in 23Q4 (estimate on end of February)

Attractive Points:
~capital reduction, which will turn Maybulk to new reborn company from accounting stabd point of view
~After ship disposal, balance ships has long term orders, which will generate stable income
~potential spwcial dividend of 0.10
~Dividend payout ~100% @0.01 with the yield 3% @0.33
~NTA 0.52
~almost zero debt, 1m
~Cash
cash 29m + deposit 162m , + ship sale deal 140m, which translate into 330m, if no loss no gain for coming qtr. this is talking about 0.33 cash per share, which is below the current price 0.325
~Value relization theme
~Estimate normal annual Net Profit 5－10m, EPS 0.005－0.01. If value the biz at PE 10, this translate into 0.10 for current biz

Target Buy Price: <0.33
Target Sell Price:
=cash 0.33 + current biz value 0.10 + potential special dividend 0.10
= 0.53

Report is prepared by Little Kang on 240115