Public Packages Holdings Bhd (PPHB) has fared pretty well in the past year. It has gained 12% to close at 80 sen on April 19.
Interest in the manufacturer of corrugated cartons could stem from talks of possible privatisation exercise. When the privatisation talks first surfaced, PPHB had about RM140 million cash in hand. Assuming the controlling shareholders already has about 70% stake in the company collectively, they just need to fork out the cash for the remaining 30% (80 million shares).
Based on the current price, if they offer 10% premium to the last closing price of 80 sen, they only need to fork out some RM64 million to buy the remaining shares in PPHB. Essentially, the controlling shareholders can have access to the balance of some RM20 million since PPHB has about RM83 million cash balance as at Dec 31, 2023.
Furthermore, PPHB has been showing improved results. Its biggest revenue contributor, which is the manufacturing division, registered a drop in revenue in FY23.
The decreased sales performance was mainly due to low demand from customers and unfavorable product mix. However, its net profit rose to RM48.5 million in FY23 from RM38.5 million in the previous year. The better performance was primarily driven by its continuous cost controlled measures and enhancements in production efficiencies.
Additionally, improvement in hotel division and investment activities throughout the year contributed to the Group's overall performance. Furthermore, it benefited from an one-off gain resulting from fair value adjustment on joint venture investment properties.
PPHB also gained from higher interest/dividend rates offered by investment funds, and unrealised gain arising from foreign currency translation. The counter may see further upside as it rides on the positive sentiments.
Created by zaclim | Jul 22, 2024
Optimax Holdings Bhd has set its sights on an upturn in its result after a less than desirable year end This augurs well for the company and investors may want a piece of the boom
Created by zaclim | Jul 22, 2024
Total logistics solutions provider has been hit by freight rates that fell to pre-pandemic levels. Hopes are high that the company will recover and trend higher.
Created by zaclim | Jul 19, 2024
Integrated layer farming company Teo Seng Capital Bhd is garnering much attention as it has almost doubled in terms of share price in the past year. Shold investors continue to hold on to it?
Created by zaclim | Jul 18, 2024
Price rose to a 52-week high of RM1.45 as it posted more than 3-fold increase in its net profit 4QFY24. Now that the counter has trended lower, indicate a good time to consider investing in Superlon
Created by zaclim | Jul 16, 2024
Unisem (M) Bhd is slowly but surely regaining its lustre. All things are moving towards better days for the manufacturer of semiconductor devices.
Created by zaclim | Jul 15, 2024
Texcycle has been on the upcycle in terms of share price, touching a record high of RM1.49. It has lost some ground since its high but the counter is trending out recently.
Created by zaclim | Jul 15, 2024
Electronic manufacturing services provider ATA IMS Bhd has been trading higher in the last couple of weeks and looks to be able to sustain its upward momentum. Is it still time for investors to enter?
Created by zaclim | Jul 11, 2024
Kobay Technology Bhd is seeing upward traction again after trending lower since touching a year high of RM2.58. Can it surpass its recent high?
Created by zaclim | Jul 09, 2024
The company recently ventured into the manufacturing of power cables and wires following a takeover exercise of Central Cables Bhd.
Created by zaclim | Jul 09, 2024
OCK Group Bhd continued its upward momentum on anticipation of a record breaking year in terms of earnings. Can the good run be sustained?