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KLSE: CCM       CHEMICAL CO OF MALAYSIA BHD
Last Price Avg Target Price   Upside/Downside Price Call
2.09 3.08     +0.99 (47.37%)
* Average Target Price, Price Call and Upside/Downside are derived from Price Targets in the past 6 months.
** Price Targets are adjusted for Bonus Issue, Shares Split & Shares Consolidation (where applicable).
Date Open Price Target Price Upside/Downside Price Call Source News
29/05/2019 1.93 3.08 +1.15 (59.59%) BUY HLG Price Target News
23/05/2019 1.94 3.08 +1.14 (58.76%) BUY HLG Price Target News
09/05/2019 2.17 3.08 +0.91 (41.94%) BUY HLG Price Target News
23/04/2019 2.12 3.08 +0.96 (45.28%) BUY HLG Price Target News
04/03/2019 1.98 3.08 +1.10 (55.56%) BUY HLG Price Target News


Price Target Research Article/News (past 6 months)
29/05/2019  HLG Chemical Company of Malaysia - Slow and steady wins the race
23/05/2019  HLG Chemical Company of Malaysia - Slow and Steady Wins the Race
09/05/2019  HLG Chemical Company of Malaysia - PGW1 Reactivation Is the Real Deal
23/04/2019  HLG Chemical Company of Malaysia - RAPID Job Wrapped Up
04/03/2019  HLG Chemical Company of Malaysia - A Rapid Turnaround in Fortunes



  3 people like this.
 
cricketlast Hi Wolf,

Sorry late reply. Had a busy weekend this time round.

Currently, in the malaysia market there is no direct comparable for CCM. The other main caustic soda supplier is Malay Sino Chemical Sdn Bhd which is privately held by Batu Kawan Berhad (however, this company's earning is mainly derive by its plantation division, so basically it's actually plantation company).

The closest comparable that we have at the moment are the Malaysian public listed chemical related companies such as Luxchem (PE 15.1x), Pchem (17.4x), Lctitan (10.1x), Nylex (6.9x), Samchem (9.9x) and KGB (14.7x). The average PE multiples of these companies are 12.4x.

Using the industry average PE of 12.4 x and FY19 PAT target of RM40mil this translate to a market cap of RM496mil or RM 2.97/ share.

Anyway, the current valuation now is still undemanding if compared to other listed chemical companies. I just don't see why the market needs to put a big discount on CCM given the potential growth that it can reap once the RAPID refinery in Pasir Gudang starts operation in 2019 (CCM main plant is also located in Pasir Gudang. Malay Sino, the other main supplier of caustic soda has plants in Kemaman and Lahat).

Feel free to comment. Appreciate the any input that you have on this company.


Thanks.
20/08/2018 12:33 PM
HoselGoh KUALA LUMPUR: The chemical manufacturing unit of Petroliam Nasional Bhd (Petronas) is actively looking to acquire companies to expand its specialty chemical business, its chief executive officer said.
Read more at https://www.thestar.com.my/business/business-news/2018/08/22/petchem-eyes-acquisitions-to-boost-specialty-business/#0wg1lPAtdxpRmfkY.99

CCM will be in focused this week.
22/08/2018 2:00 PM
cricketlast Hi guys,

I need to highlight certain things for the 2nd quarter 2018 that was just reported earlier.

The PAT of RM5.3 mil is actually inclusive of a RM4.1mil gain on disposal of Shah Alam lands as well as the Real Property Gain Tax that are associated to the disposal amounting to RM9.3mil.

If we were to take both of these non recurring items out, the PAT would actually amount to RM10.5mil which is not that far from what was recorded in the 1st quarter of 2018. Both the Chemical and Polymer divisions have shown improvement in the revenue as well as profit before tax for the 2nd quarter.

Please refer to Note A9: Segment Reporting located in page 9 of the financial report (Below are the extract for continuing ops. I have excluded the results of the pharmaceutical division, which is now actually under CCM Duopharma)

Revenue 2Q18 vs 2Q17

Chemical : RM 76.65m vs RM 65.14m

Polymer : RM 23.04m vs RM 19.48m

Others : (RM 0.67m) vs (RM 0.20m)

Total: RM 99.01m vs RM 84.42m


PBT 2Q18 vs 2Q17

Chemical: RM 12.63m vs RM 9.94m

Polymer: RM 5.10m vs RM 4.59m

Others : (RM1.36m) vs (RM 11.49m)

Total : RM 16.37m vs RM 3.04m

As you can see, both the divisions have actually reported better revenue and PBT compared to last year. Hopefully this will continue in the second half of the year as well.

Appreciate any input on the matter especially if i had missed any other information that might be important.

Best regards
28/08/2018 9:45 PM
L2 Summary data in portals typically cannot do justice in a comparative where a whole business segment/division has been hived off. Hence deep red where it should be very green for CCM for Rev, PBT, PAT. The gem is still hidden.

Net Profit 2Q18 vs 2Q17, from page 1 of the QR:

PAT 2Q17 0.288m (including CCM Duopharma's 9.632m = 9.920m)

PAT 2Q18 5.298m (without pharma contribution now)

Earnings growth has continued.
29/08/2018 9:13 AM
L2 Likewise 3Q18, based on current positivity in consecutive quarters, should surpass 3Q17's Revenue of 88.118m and PAT 1.150m (not the 8.199m which includes pharma's 7.049m). Ditto for 4Q18 vs 4Q17.
29/08/2018 10:20 AM
Jordan Khoo Good show ! Very strong... will move tomorrow and profit incoming
29/08/2018 10:38 AM
alpacino @cricketlast - agreed. RM2 just a matter of time.
29/08/2018 10:43 AM
alpacino @cricketlast - what is your take on CCMDBIO, did you. invest?
29/08/2018 10:45 AM
cricketlast Hi alpacino,

No i did not invest in CCMDBIO. For the health manufacturer sector i prefer AHEALTH or Apex healthcare.

AHEALTh valuation is currently at 17.9x 12 months rolling Earning vs CCMD 19.5xPE.

The growth story for APEX are :

1) New oral dosage plant (to be commission by 4Q18) which will double the oral dosage capacity.

2) Potential penetration into the Europe drug market given the company's recent EU good manufacturing practice certificate award early this year.

3) Expiry of the current govt concession for generic drugs by Nov 2019. Currently APEX revenue from this segment only represent 5% of total group rev. Most of the rev actually comes from the private sectors (private hospitals etc)

My FY19 PAT target is around RM60mil which values the company at around 15.2x PE.

Please take not that the company has basically ZERO debt (at least as at 30 June 2018).

Regards.
29/08/2018 2:41 PM
alpacino @cricketlast - much obliged.
29/08/2018 2:57 PM
trulyinvest so it is a good result? even yoy drop bcos of absence of ccmdbio?
30/08/2018 9:33 AM
cricketlast Hi trulyinvest,

The drop is actually because of higher tax which relates to the RPGT for the disposal of Shah Alam land. The RPGT was RM9.3mil (which is non recurring).

If you take that out, PAT would actually show growth (even if you include CCMDBIO profit in 2Q17).

PAT excluding non recurring items (gain on disposal of land & RPGT on disposal of land) would have been RM10.5mil.

Regards
31/08/2018 8:01 AM
trulyinvest Wat is d best px ti enter? Market seems very bad
31/08/2018 8:27 AM
wai011 @cricketlast, did you observed Q2 FY18 recorded higher non-controlling interest? Why the amount so high in that quarter?
01/09/2018 10:48 PM
Jasper Coo Very interesting stock ! Worth to invest tho
07/09/2018 11:24 AM
HoselGoh almost RM2 leh, operator must knowing something.. keep going up...
07/09/2018 12:43 PM
xgakuseix stil going up.tomorrow try to buy.huhu
10/09/2018 7:25 PM
Jasper Coo This is a winning stock....best of the best
12/09/2018 11:00 AM
trulyinvest BOUGHT 1.93 SOLD 1.97 THX
19/09/2018 12:17 PM
BursaKakis Price now RM2.05, TP RM3.08 by HLInvest on 21/9/2018
21/09/2018 2:16 PM
ddd ccc Any fee if I want to join?
16/10/2018 8:11 AM
thenextwave Bonus issue coming soon
17/10/2018 12:49 PM
ks5S Technical good to buy for updates
Join my group for daily updates with TP and TA/FA
Whatsap at 6767676767
17/10/2018 3:21 PM
trulyinvest Very strong suport
20/10/2018 10:56 PM
trulyinvest U sendiri bongok. X faham ka
21/10/2018 12:31 AM
trulyinvest Poor result
13/11/2018 8:08 PM
Malton91 Nice Result. If you look properly at the Quarter Report, the profit on 2018 Q3 is lower than 2017 Q3 is because of the "Profit from discontinued operations, net of tax" on 2017 Q3. Also, the revenue and profit of current quarter is actually growing from the previous quarter. From the report, it can be seen that the management is reducing the expenses and making more revenue. Apart from that, dont forget of the theme of this stock, which is the capability to win job to supply caustic soda to Rapid. Buy CALL
14/11/2018 12:11 AM
Malton91 In Fact, if you remove the "Profit from discontinued operations, net of tax" on 2017 Q3. The y-o-y profit growth rate is actually more than 1000%. Cheer
14/11/2018 12:14 AM
trulyinvest Eps only a few sen. No surprise
14/11/2018 7:09 AM
commonsense Management objectives for this year are to improvement performance of existing businesses (chemical and polymer) and improved the balance sheet of the company via disposal of non core assets. As of 3Q, both of these has actually improved.

I was expecting a higher profit though. Notice that the main reason for the lower profit in 3q was the high tax rate. Rm5mil tax for PBT of rm10mil. Anyone knows why? Another issue is the caustic price which has gone down by a lot.

Still with Rapid next year, outlook remains bright on condition that the caustic price will recover back to usd500/ tonne level.
16/11/2018 6:17 AM
stevenwongg Low volume, no push up
22/11/2018 5:57 PM
stevenwongg What happen to ccm??
30/11/2018 12:02 PM
Dakewlest Bila mau naik...
02/12/2018 6:16 PM
trulyinvest X akan naik, post poor result
02/12/2018 6:51 PM
Dakewlest Next catalyst is rapid ???
04/12/2018 11:42 AM
Dakewlest Second dividend 4 sen.
14/12/2018 10:06 PM
stevenwongg Dropping fast
18/12/2018 4:06 PM
commonsense Hi Dakewlest,

Yes, rapid is the next positive catalyst for the company given that CCM has already a chemical plant located in Pasir Gudang compared to the other big caustic soda player, Malay Sino Industries whose plants are located in Perak and Terengganu. Rapid will need around 100MT of caustic soda for its refinery once it starts operations. This is why management are planning to spend at least RM68mil to increase the Pasir Gudang plant capacity by another 50% which is expected to be completed by mid of next year.

However, you need to take note that the financial performance of the company is still highly dependent on the price of South East Asia caustic soda. Hong Leong analyst are projecting a profit of around RM40mil for the company in FY19. But this projection is still based on a caustic price of USD500/tonne. As of early Dec, South East Asia caustic price has fallen to only USD346/tonne vs more than USD600 a year ago. Until the price rebound back to USD500, it might be a while before CCM will be able to deliver a profit of more than RM40mil to its investors. The caustic price is tracked on a weekly basis which you can check via the Bloomberg Platform.

If you are looking to diversify your portfolio outside of CCM (due to the volatility of the caustic soda price), I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19 and also the new Alza in 2H19.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.18.

Good luck.
23/12/2018 3:05 PM
Dakewlest Commonsense, thank you so much.
26/12/2018 6:05 PM
wai011 Hi commonsense, are you able to provide the link to track caustic soda price from Bloomberg platform? Thanks.
01/01/2019 9:36 AM
Penguin88 I think the financial performance of the company will be affected by the falling caustic soda price. It will take time for the price to rebound to previous high level. Hence, CCM will probably deliver a weaker qoq results for Q4. Also, if you look at 1Q2018, the results was good due to high caustic soda price in 1Q2018. Moving to 1Q2019, there will be a high base comparison.It will be challenging for the company to surpass the 1Q2018 if caustic soda price is not rebounding.
Please be aware of this.
04/01/2019 12:55 PM
Penguin88 Today's slump of glove counter's share price is most probably because of the concerns on glove oversupply. This make me worry on whether CCM's polymer business will be affected moving forward.

According to research report, CCM has direct exposure to glove sector due to its polymer is used in glove manufacturing process. To note, polymer segment account for c.23% of group’s revenues and c.30% of PBT.
08/01/2019 10:36 PM
James Ng https://klse.i3investor.com/blogs/general/189840.jsp
[转贴] [CHEMICAL CO OF MALAYSIA BHD:市场仍然充满竞争性] - James的股票投资James Share Investing
12/01/2019 12:55 PM
Dakewlest Any good news?
22/01/2019 5:08 PM
Penguin88 Is someone manipulating the price? Couldn't understand why the price will keep on increasing given the gloomy outlook in near term.
22/01/2019 5:37 PM
Dakewlest Good quarter result
Perhaps??
22/01/2019 5:50 PM
Penguin88 Don't think so..caustic soda price dropped a lot yoy and qoq..based on this i would think 4q results will weak.
22/01/2019 7:07 PM
Jasonlow So fast and efficient already arrested 3 ppl

will charge on morning...............

Luckily, seems like no any listed company involve, is one illegal tyre shop ppl do this ..........


https://www.facebook.com/watch/?v=339455013363244
14/03/2019 1:53 AM
Jasonlow https://www.sinchew.com.my/content/2019-03/13/content_2021753.html

Good news , Case Done so fast , no company involve, congraz all ......................
14/03/2019 1:55 AM
yakuza lol but it doesn't help the price go up also
01/04/2019 5:39 PM


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