Ajinomoto (Malaysia) Bhd is engaged in manufacturing and selling of monosodium glutamate (MSG) and other related products. The company operates through two segments. Its Consumer business segment manufactures and distributes various consumer products, seasonings as well as provides services in relation to the food industry. The Industrial business segment consists of production and distribution of MSG for industry-use and industrial seasonings. In addition, it offers retail products under the brands, such as AJI-NO-MOTO, TUMIX, SERI-AJI, AJI-SHIO, Pal Sweet, AJI-MIX and AJI-NO-MOTO PLUS. The company's industrial products include hydrolyzed vegetable protein (HVP), AJI-AROMA, AJIMATE and ACTIVA TG.
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SilverHawkAji interest income = 10% of Aji total operating profit.
Aji cash position at Q1 2019 RM302,621k, net finance income 2,301K. 5 quarter down the road at Q2 2020 cash RM 258,231k finance income 2,130K. Finance income down on cash position down. It seems not significant BUT ...
The capital commitment not yet provided for amounting to RM 379,189k. This will completely deplete all the cash in hand and will incur borrowing of more than 150,000K. Aji is a company with annual net profit of 50M ONLY. It will need years to rebuild it's cash position.
It will shock me if Aji continue its 50% dividend payout. In normal scenario with good business sense, Aji should had plan on dividend CUT !!
