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Overview
Financial Highlight
Headlines
Business Background Sunzen Biotech Bhd is engaged in the business of research and development of biotechnology and manufacturing and marketing of animal health products. The company operates through two divisions. The Manufacturing division is involved in the manufacturing and marketing of animal health products such as orgacids, zenacids, om, pfactor, and pfi-lyte. In addition, it also produces palm oil products such as powder fats for livestock animals. The Trading division includes the distribution and marketing of veterinary pharmaceuticals and animal vaccines, and detergent and disinfectant products such as shift, lindores and gpc 8.
  Russell high revenue but low profit/incur loss on trading palm oil. What are your thoughts duit? 26/08/2018 7:12 PM chyeoh1972 i am still waiting 0.195 to buy back...not buyer not momentum...if can get... will keep for year end divieng 31/08/2018 12:53 PM  鹅麟依旧≈ 扫地僧 Hope volume come after CPO strong. Good news from India to cushion CPO price 02/01/2019 10:15 PM 鹅麟依旧≈ 扫地僧 WB confirm gone case. I lose much at WB also Sunzen mother just out from HCU. Move to ICU today Wake. Up pls. Don't die first 03/01/2019 11:03 PM commonsense Revenue increase significantly since 1Q17 when the company decided to venture into the trading of palm oil products which has since deliver higher revenue compared to the company’s original business of selling animal health products. This has helped increase the company profit to shareholder to RM3.5mil in FY17 from a loss of RM100k in FY16. Then in mid FY17, management had proposed to diversify the company into the business of Chinese medicine via the acquisition of 70% of Ecolite Biotech for RM12.1mil. This acquisition was supposed to help increase the profit of the group by around RM1.8mil annually. The acquisition was completed in May 2018. However, based on the 3Q18 result, it does not seem that the acquisition had delivered on the expected profit expected by the shareholders. The newly acquired business posted a loss of RM500k in 3Q18. Please take note, that the core losses in 3Q18 is actually around -RM5mil (after stripping out the gain from negative goodwill of RM3.6mil) and not the reported -RM1.4mil. All of the company’ s divisions fail to report any profit for the quarter. Given the compression of profit margins seen in 3Q18 for all of the company’s main division (animal health products, palm oil trading and Chinese medicine), investors have to be prepared to see further losses in 4Q18 and potentially in the most part of FY19 as well. If you are looking to diversify your portfolio outside of Sunzen (due to its weak earnings outlook), 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 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17. FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE. Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50. Good luck. 06/02/2019 8:10 AM 鹅麟依旧≈ 扫地僧 Whole year net loss RM6. 9 million... Tomorrow waterfall and also limit down.... No eyes see 28/02/2019 6:05 PM Shinnzaii There is allowance of impairment for machinery of 6mil...consider separately still okay...next quarter cash outflow might be more larh due to purchase of land with 12mil... 28/02/2019 6:44 PM here Trading of oil palm is not working, it is just for the revenue to look good. 17/04/2019 10:17 AM here Growth of revenue is better to be in line with profit. There is no point to trade Palm Oil with over 70, 80 or 100mil revenue and got net loss or 0.1% profit for every quarter. The revenue also inconsistent. There is no need for the BOD to brag about revenue increased double triple digits due to this. 29/04/2019 11:56 PM here Current BODs/Senior Management very weak, have no experience and no relation in Animal Health or entire business operation except for Lin Hong Kong(General Manager). Unlike previous owner Dr. Tan Kim Sing who co-founded Sunzen, had more than 20 years experience in animal health or in sales and marketing. Maybe Datuk Hong (CEO) "Datuk" title is just for show. Since 2014 the animal health did not grow much. Doubt that hIs knowledge in ICT and Interior design going to help Sunzen. With Madam Ooi currently resigned. The Board only left 3 person..Hope they get someone with good expertise. Also can consider Mr Chum Mun Cuan (from Ecolite) a try in Board. 15/05/2019 11:20 PM  YAPSS Hey! Today, R-Table will be covering Sunzen Biotech Berhad by presenting 10 years financial results in a short, fun & interesting way. Click the link below to watch the video. Link: https://youtu.be/BsiGr1lSYmM #YAPSS #RTable #SunzenBiotechBerhad #CashRichSeries 15/06/2019 6:47 PM here Cannot get profit still want to buy real estate using bank loan, when cannot pay back sure they going to ask shareholder to pay. Share price have reached lowest, closure of retail outlets going to reduce operating costs(let us see whether next quarter can get profit or CEO will create another fairytale stories). Disposal of Amplio not because of Amplio can't reach profit guarantee, it is caused by the weak CEO and BOD. Amplio is also not in line with the board vision which is to get above 50mil revenue in a blink of an eye without giving any effort just like the Palm Oil trading. No Profit no problem, Very high revenue is enough. Failure to compete with Peterlabs and Rhonema. It is sad to see a good business such as Ecolite falls under a bad holding company. 26/08/2019 3:34 PM kyosan guys...oil palm stock hot right now right~.... why not hoot this Sunzen liao~ their trading crude oil palm oil already 75% contribute total revenue.... so...price increase..then this sunzen will get more profit... u can check their qtr rslt... peace~ happy trading~ don't goreng too much~ :p 12/11/2019 2:29 PM  |
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