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Overview
Financial Highlight
Headlines
Business Background Power Root Bhd is an investment holding company, engaged in the production of premixed instant powder beverages in Malaysia. It is also engaged in property development. The group operates principally in Malaysia with the manufacturing and distribution of beverage products (Fast Moving Consumers Goods) being the core business of the group. The company's product range includes Instant and Tin.
  shpg22 Revenue has been sliding & FCF is deteriorating fast. High dividend may not sustainable. At current price of 1.61 est DY of only 2.6% for FY19. 02/09/2018 12:50 AM shpg22 Expected total FY19 dividend payout of 4.5 cents. Fair price at 1.00 translating to a DY of 4.5% 02/10/2018 8:05 PM shlang17 3 Oct 2018 - MR WONG TAK KEONG (191,400 units Acquired) 21 Sep 2018 - MR WONG TAK KEONG (3,010,600 units Disposed) last mth Mr. Wong disposed so many share, this mth acquired so little........ 04/10/2018 3:00 PM vinvin Drops I think probably due to their products being too sweet n taxable. I think they have to check their products n adjust the sweetness to the level that r not taxable then the company will make better profit n will push the price up. This is my opinion only! 31/12/2018 3:18 PM commonsense The company’s profit reached its peak back in FY17 when it managed to deliver a profit of RM43.5mil to its shareholder. In FY18 core net profit fell to only RM15.7mil but has since rebound back. FY19 is expected to deliver a profit of around RM30mil to its shareholders. That being said, at the current share price, the company is already being valued at a PE of 19x which is high considering the lower profit delivered since FY17. Given the lower profit margin seen in 3Q19, a return to FY17 profit level might not be possible in FY20. If margin compression persists, expect lower profit level in FY20 compared to the expected RM30mil profit in FY19. If you are looking to diversify your portfolio outside of Power Root (due to its relatively high valuation), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV. FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well). MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x. Good luck. 05/03/2019 2:04 PM liltrader The main expenses of their operating is COGS, which means is the coffee bean.While the price of bean dropped for consecutive 3 years (you can see it right here https://markets.businessinsider.com/commodities/coffee-price )and sure the net profit margin will raise back to somewhere near 11-13% and the financial statements showed that they have a lot of raw material and finished good back in 2018, so an expectation of they will have lower expenses because they can sell the finished goods and use up the raw material at 2018. While the indicator rsi climbed back above 50 with the macdcrosses 0 line. The 10ma crosses 20ma. Indicates short-medium uptrend , or you can hold until next annual report to come out. Happy trading :D 01/05/2019 5:16 PM shpg22 Sales dropping. Arab fellow now realized the tongkat ali drink can't make their c0ck stand, too much sugar. 30/06/2019 11:03 AM  |
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