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Still no news. I' m not surprised if they sell partial shares to big players.
They havent announced contract wins in a long time.
Worst case imo is they offer to buy the whole company for 2 dollars a share...
Worst case imo is they offer to buy the whole company for 2 dollars a share...
Wonder what was announcement going to be ? Hope it is something very positive. Contract wins ?
Trading halt pending release of announcement
Mitsubishi bought a 15% stake at around 14pe, double the current valuation of XMH. They did so even though they have more bargaining power in this relationship.
It is an incredible deal. XMH now has a more secure supply of diesel generators, and can lean on Mitsubishi' s support and customer leads.
Fair value of XMH is now 1.90+
It is an incredible deal. XMH now has a more secure supply of diesel generators, and can lean on Mitsubishi' s support and customer leads.
Fair value of XMH is now 1.90+
XMH Holdings to book gain of $10 million selling 14.8% stake in subsidiary to Mitsubishi unit
XMH Holdings is selling 14.8% in a fully-held unit to Mitsubishi Heavy Industries Energy System Asia for $12.3 million, and will be booking a gain if $10 million from this deal.
According to XMH on Sept 15, after selling this stake in Mech-Power Generator, the latter will remain as a subsidiary, which is in the business of assembly and sale of generators and related accessories.
The buyer, an indirect subsidiary of Japan' s Mitsubishi Heavy Industries, is an existing supplier of generators and marine engines to XMH in the Asia Pacific region.
" The proposed disposal presents a strategic opportunity to establish and foster closer collaboration between Mech-Power and MHIESA and to enhance strategic partnerships and operational synergies between them," says XMH.
Following the deal, Mech-Power will work closely with MHIESA on production capabilities and capacity.
This deal will enable Mech-Power to leverage MHIESA' s established business network, thereby expanding its market reach beyond its current customer base.
" This expansion is expected to generate additional revenue streams and in turn improve shareholder value and returns," the company says.
The sale is also a " good opportunity" for XMH to realise an appreciation in value over its investment in Mech-Power, and channel proceeds to improve its working capital and explore new opportunities for investments.
XMH Holdings shares closed at $1.65 on Sept 15, up 0.61% for the day and up 132.39% year to date. This gives the company a market value of nearly $190 million and a historical PE of 7.08x.
This is a massive valuation increase in mech power, and with a strong shareholder Mitsubishi , it' s going to solidify their gen set position in market at Johor and neighbouring countries.
As we approach 10 PE, worth looking at other names with a similar story.
I suggest 2722 in HK. They have genset JV with Cummins buried in what looks like a Chinese SOE conglomerate. The conglomerate includes a JV with Hitachi, the largest transformer manufacturer in the world. That means you get both data centre exposure and power crunch exposure.
The rest of the conglomerate barely makes any money but the hope is that some reforms will introduce some operational efficiency + the central pressure to reduce competition.
I believe it is now around 10 PE.
I suggest 2722 in HK. They have genset JV with Cummins buried in what looks like a Chinese SOE conglomerate. The conglomerate includes a JV with Hitachi, the largest transformer manufacturer in the world. That means you get both data centre exposure and power crunch exposure.
The rest of the conglomerate barely makes any money but the hope is that some reforms will introduce some operational efficiency + the central pressure to reduce competition.
I believe it is now around 10 PE.
Looking at their balance sheet, they are significantly undervalued. The tuas property was last valued $87m in 2020, they have approx $32m cash, and uniquely the business require minimal operating capital. Payables is 180days , longer than receivables. They use their property as collateral to get favorable credit facilities terms to run the business. With a prudent management thanks to covid and sgx watchlist lessons, I believe the stock price will fly!
Something brewing. Do not sell. Very exciting developments ahead. A star in the making
$1.8
We are getting close? no press no analyst coverage.
We are getting close? no press no analyst coverage.
Yes, i think this is going to S$2 on the back of that confidence. It really says something when those close to the company and the management for so long are buying every share they can get their hands on.
beachlover1270 ( Date: 02-Sep-2025 16:58) Posted:
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Those at the AGM have a reassuring confidence about the management and the prospects of the company. Ot could be the star of 2025.
Power play.Saw this at 50-60cent but could not buy because the share is so illiquid. Bid and Sell so big spread apart then.
Kudos to those who managed to buy and keep till now.
Congrats for the gains
Kudos to those who managed to buy and keep till now.
Congrats for the gains
Yes it sounded like management is much more focused now.
Shareholder base not selling off despite the wider drop in the market today.
Shareholder base not selling off despite the wider drop in the market today.
Yeah I agree. I think the covid and sgx watchlist have helped the management learned valuable lessons and they are more prudent now. Their business is asset light with low capex too.
Well lets not oversell sustainability of Johore. Johore will build data centres until they run out of water and electricity - whether that is two years or longer i am not sure. Then the data centres will move to the next most sensible market - Indonesia, Philippines, Thailand.
The question for this company, like so many other data centre plays, is how long do you think we will need to build data centres for a potentially once in a generation growth in AI use? Does 6 pe fairly value that upside? Don' t think anybody should be looking at this as a 4 to 6% dividend yield....
The question for this company, like so many other data centre plays, is how long do you think we will need to build data centres for a potentially once in a generation growth in AI use? Does 6 pe fairly value that upside? Don' t think anybody should be looking at this as a 4 to 6% dividend yield....
Kikikiki ( Date: 28-Aug-2025 15:23) Posted:
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Even at $2 the yield is still attractive 4% ?
Mind sharing about the content of the AGM? I' m new investor and couldn' t make it in time to attend the agm. I see that the data centre boom in Johor is going to be a huge boost to their success. Not sure if its sustainable though, wanted to ask in agm but they don' t allow me to attend as my shares not yet reflected in CDP.