MMH - Marsden Maritime Holdings

[traineeinvestor]

That's a radical thought...planning !

There also needs to be a fair amount of doing to follow the planning ... something those currently in power seem to be chronically incapable of doing.

Disclosure: hold MMH

[Scrunch]

The auditor general reported in the paper this morning saying that (I have already forgotten but roughly) there should be an overall logistics plan for the ports or planned investment by some (unnamed ports) will be a waste of time.

I had a look at Port of Tauranga's audit information and it was KPMG on behalf of the Auditor-General. MMH is audited by EY, but on behalf of the Auditor-General.

While this quote may have been a dig at Ports of Auckland's plans, it unfortunately can't be narrowed down to this as the Auditor-General would appear to have responsibility for all the Port auditing work, although much of this work is sub-contracted to CA firms.

[RTM]

The auditor general reported in the paper this morning saying that (I have already forgotten but roughly) there should be an overall logistics plan for the ports or planned investment by some (unnamed ports) will be a waste of time.

Now I recall...this is what the report was called: "Upper North Island Supply Chain Strategy". Seems to fit the bill !
https://www.transport.govt.nz/area-o...hain-strategy/

[RTM]

https://www.newsroom.co.nz/pro/polit...orthport-plans

For those who might be interested.

[Oakwood]

Good result announcement from MMH

[Sideshow Bob]

Marsden Maritime posts record result - NZX, New Zealand’s Exchange

Marsden Maritime posts record result

27/8/2021, 8:30 amFLLYRMarsden Maritime Holdings Ltd (NZX:MMH) has announced a net profit of $14.260 million for the year ended 30 June 2021, more than doubling the previous year’s result of $6.681 million. Earnings from its joint venture interest in Northport Ltd were a record $9.525 million on the back of strong cargo volumes. Revenue from the Group’s property and marina operations grew significantly, up 14.6% on last year.

Bulk cargo throughput at Northport grew by 18.3% over the year to 3,546,744 tonnes. Log exports of 2,836,602 tonnes, up from 2,250,002 tonnes a year ago, accounted for 80% of volume, up from 75% percent in 2020. Annual container volumes were up slightly on the previous financial year with 13,451 TEU handled.
The company has seen a $3.862 million increase in the valuation of its investment property which is reflective of strong demand for its commercial and industrial property.

Underlying earnings, excluding the revaluation of investment property and fair value movements, grew to $10.605 million from $9.661 million last year, being an increase of 9.8%.

Chief Executive Felix Richter said the company had undertaken four significant construction projects over the past 12 months and seen solid growth in the commercial property, marina and marine services.

“We have delivered convincingly against our long-term business strategy with developments that support the growth of Northport, reinforce Marsden Point’s reputation as a marine services hub, grow the local economy more generally, and assist with the transformation of the wider Northland economy,” Mr Richter said.

The company will continue to focus on driving growth in its non-port areas of activity, investing in the infrastructure that would both enable and encourage organisations interested in relocating to Marsden Point to do so. The company’s new ‘ecosystem’ - based business strategy had provided direction and focus for growth and would ensure that land holdings continued to be optimised for best long-term results.

The company will pay a fully imputed final dividend of 11.25 cents per share on 24 September 2021. This will bring the total dividend distribution for the year to 18 cents per share, up two cents from last year.

ENDS

[traineeinvestor]

A great result.

Particularly good to see income from sources other than log exports continue to grow. Over the longer term these income sources will (I hope) become and increasingly significant source of earnings growth.

Disclosure: hold MMH

[Scrunch]

A great result.

Particularly good to see income from sources other than log exports continue to grow. Over the longer term these income sources will (I hope) become and increasingly significant source of earnings growth.

Disclosure: hold MMH

So the new EPS is 34.5c. At $6.24 the PE has fallen back down to 18.1

As context the DirectBroking reported forecast for Southport is a profit of $9.4m (PE of 23.7), Port of Napier is $22.0m (PE of 28.6) and Port of Tauranga is $86.7m (PE of 57.7). PoT of just announced a profit of $102.4m for the year to June so using that PE may be a bit lower at 48x.

Looking pretty cheap but DYOR

Disc Holding

[Scrunch]

Looking at the interest rate paid on borrowing, BNZ agrees that MMH is low risk, otherwise the margin applied over market interest rates would be higher.

Page 18 of the Annual Report "Interest rates are determined by reference to prevailing money market rates at the time of draw-down plus a margin. Interest rates (excluding establishment and line fees) paid during the year ranged from 1.26% to 1.51% (2020: 1.27% to 2.86%)."

[RTM]

I see Wayne Brown is running for Mayor of Auckland. Does he have a chance ?

https://www.fixauckland.co.nz/?msclk...8a910b631bbc29

I wonder what the future of Auckland Port might be under Wayne's leadership ?

https://www.transport.govt.nz/area-o...hain-strategy/