Johore Tin FY15Q2 Financial Result
| JOHOTIN (RM mil) | FY15Q2 | FY15Q1 | FY14Q4 | FY14Q3 | FY14Q2 |
| Revenue | 113.6 | 90.8 | 104.7 | 90.7 | 58.8 |
| Gross Profit | 18.4 | 14.6 | 16.0 | 11.7 | 5.7 |
| Gross % | 16.2 | 16.1 | 15.3 | 12.9 | 9.7 |
| PBT | 9.2 | 6.1 | 6.6 | 4.0 | -0.5 |
| PBT% | 8.1 | 6.7 | 6.3 | 4.4 | |
| PATAMI | 6.7 | 4.0 | 5.2 | 2.9 | -0.3 |
| Tin Rev | 20.8 | 20.9 | 24.7 | 21.1 | 21.4 |
| Tin PBT | 2.7 | 1.3 | 4.4 | 1.3 | 3.3 |
| F&B Rev | 93.1 | 69.9 | 79.9 | 69.6 | 37.3 |
| F&B PBT | 7.3 | 5.2 | 3.0 | 3.0 | -3.4 |
| Total Equity | 191.4 | 184.7 | 179.9 | 175.5 | 174.4 |
| Total Assets | 320.2 | 328.8 | 323.6 | 252.8 | 253.6 |
| Trade Receivables | 75.6 | 42.0 | 70.5 | 39.4 | 44.3 |
| Inventories | 112.6 | 148.2 | 125.0 | 81.8 | 74.1 |
| Cash | 21.8 | 28.9 | 25.5 | 31.1 | 38.7 |
| Total Liabilities | 128.9 | 144.1 | 143.6 | 77.2 | 79.0 |
| Trade Payables | 26.9 | 14.8 | 54.5 | 16.1 | 18.6 |
| ST Borrowings | 69.7 | 95.0 | 58.8 | 35.6 | 32.9 |
| LT Borrowings | 8.1 | 9.4 | 10.5 | 11.7 | 12.9 |
| Net Cash Flow | -3.7 | 3.4 | -12.7 | -7.1 | 0.6 |
| CFOperation | -6.6 | -26.7 | -28.7 | -9.0 | -6.3 |
| Depreciation | 3.8 | 1.9 | 7.1 | 5.3 | 3.5 |
| CFInvestment | -6.5 | -6.5 | -12.3 | -6.7 | -2.5 |
| Purchase PPE | 6.6 | 6.5 | 12.7 | 7.1 | 2.8 |
| CFFinancing | 9.4 | 36.5 | 28.3 | 8.7 | 9.4 |
| FreeCF | -13.2 | -33.2 | -41.4 | -16.1 | -5.8 |
| Dividend paid | 0.0 | 0.0 | 1.9 | 1.9 | 0.0 |
| EPS | 7.16 | 4.27 | 5.59 | 3.15 | -0.27 |
| NAS | 2.05 | 1.98 | 1.94 | 1.88 | 1.87 |
| D/E Ratio | 0.29 | 0.41 | 0.24 | 0.09 | 0.04 |
Johotin's FY15Q2 financial result does not disappoint. It posts the highest ever quarterly revenue and second highest PBT in its history.
Compared QoQ, revenue increases by 25% to RM113.6mil and PATAMI jumps 68% to RM6.68mil.
While its tin manufacturing segment is still suffering from soft demand and higher material cost due to stronger USD, profit margin of F&B segment increases due to higher demand and lower milk powder price.
Whole milk powder price: Getting even lower
Compared to preceding quarter of FY15Q1, inventories, borrowings and debt/equity ratio fall back to a more comfortable level but trade receivables has increased.
However, operating cash flow improves tremendously in current quarter and the company is able to make net short-term borrowings repayment of about RM25mil in FY15Q2.
Anyway, there is still a realised foreign exchange loss of RM1.5mil in current quarter but it has actually improved compared to RM2.7mil in FY15Q1.
The lower forex loss might be due to lower USD borrowings in FY15Q2. If operating cash flow continue to improve then it might have lower borrowings in Q3.
When I first invested in Johotin early this year, I expect at least RM20mil PATAMI in a year.
With RM10.7mil PATAMI at 1H15, Johotin is definitely on track to achieving this target.
If we annualize 1H15's earning, projected EPS for Johotin will be 22.9sen which means it is currently trading at PE ratio of just 6.4x at share price of RM1.47.
This makes Johotin super cheap as a consumer & dairy stock.
What's more, its new milk packaging factory is still not completed yet!
Johotin's management did mention earlier that this new milk packaging business can generate ~RM40mil revenue a quarter, or USD4mil a month, when fully operational.
Its management hoped that with this new venture, revenue in its F&B segment can hit RM250mil and above by FY15.
Currently at 1HFY15, revenue in its F&B segment has already reached RM163mil and it should surpass RM250mil easily by year end even without the contribution from milk packaging business which has been delayed.
I think the increase in sales is mainly because Johotin has successfully penetrated Central America market.
So, when milk packaging business starts to contribute probably in Q4, it should lift Johotin to a new height.
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BD, I have been waiting for this article......
2015-08-29 07:14