TheInvestDiary
Why BIOHLDG become my FIRST investment in Malaysia stock market? (Part 2)
(This post is the continuation of 'Why BIOHLDG become my FIRST investment in Malaysia stock market?' Part 1)
4) Plant expansion programme
Currently, BIOHLDG main production plant in Bangi, Selangor is reaching an utilisation rate of 80% by end of this year. While refurbishment and expansion for this plant has already began, a new production plan in Pasir Raja (next to the agriculture land) will commence its operation by 1Q 2019. These two expansion are expected to increase 50% of current capacity over the next 2-5 years.
5) Land clearing to grow agriculture business
BIOHLDG land bank for plantation is ~1,200acres (300acres in Desaru, Johor and ~900acres in Pasir Raja, Terengganu). To date, only 300+ acres of land has been used for plantation. BIOHLDG is planning to clear the rest of the land for its 2nd phase planting (200acres by end of this year) which will boast its production to 2,000 tons by 2020 (currently at ~400 tons).
6) Pharmacy expansion programme
BIOHLDG owns a portfolio of 15 pharmacy with a brand name Constant. Constant Pharmacy are mostly located in Terengganu and Kelantan where Muslim population density are relatively high. BIOHLDG plans to open 10 more pharmacy through franchising in the next 6 months. BIOHLDG also opens for opportunity to acquire retail pharmacy chain with 2-50 outlets. This is fully possible as BIOHLDG is now a net cash company with RM12million cash in hand.
7) E-commerce frenzy
In 2017, BIOHLDG launched e-Constant (eC) which allows customers to buy pharmacy healthcare products online and register as referral agents. The said agent will own an eC virtual shop and sell the products through a referral mechanism. This project is between Constant Pharmacy and Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa) members only (under 70:30 JV). Angkasa is the national co-operative organisation of Malaysia with 12,000 co-operatives and eight million members nationwide.
Also in 2017, BIOHLDG started its presence in Alibaba B2B platform as Gold Supplier. This year, BIOHLDG announced that they are in the midst of searching for exclusive internet platform partner to establish its B2C channel in China. This will accelerate the process to educate local consumer on BIOHLDG products.
8) Synergy from recent NWE acquisition
BIOHLDG recently made an acquisition of North West Enterprise (NWE), one of the leading hotel amenities distributors for hotel industry in Malaysia. While the exact amount of the acquisition is not disclosed (BIOHLDG recently made a private placement of RM24million), it is believed that BIOHLDG can make use of NWE extensive client base to sell its products such as herbal tea or other herbal related products.
Conclusion
As you can see in the previous section, it is easy to understand that the grow factors for BIOHLDG are promising. Each segment in its value chain has plenty space to grow and will start to contribute to its top line revenue very soon. Despite medical approval in China and Indonesia may still come in play as a significant challenge to BIOHLDG, I am still very optimistic that there is huge potential growth in (Halal) herbal-based health supplement market, resulting me to make the decision to invest in BIOHLDG.
Let me know what you think about BIOHLDG.
(You can access to Part 1 in i3investor or https://theinvestdiary.blogspot.com)
Disclaimer: All stock recommendations and comments are the opinion of writer who happened to own the stock. The analysis, ratings, and/or recommendations made by this blog do not provide, imply, or otherwise constitute a guarantee of performance. Buy or sell at your own judgement and risk.
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on TheInvestDiary
Why BIOHLDG become my FIRST investment in Malaysia stock market? (Part 1)
Created by TheInvestDiary | Oct 13, 2018
Discussions
1 person likes this. Showing 9 of 9 comments
Hi Alex, kindly refer to my part 1. I have bought it at RM0.24 and will continue to add more from time being
2018-10-13 16:09
not bad as background infor for biohldg
suggest you come out with part 3 to focus on valuation e.g pe, roe, projection & etc
like that your articles will cover all aspects of a company.
keep up the good work bro....
2018-10-13 17:15
Hi smartly. Thank you for your encouraging note. I have planned to write about valuation. Stay tuned ya!
2018-10-13 20:54
and i forget to tell
biohldg in 2016 AGM say will expand to 30 pharmacy
that time they have 17 pharmacy
i wait and wait until 2017 , it still remain the same at 17 branch
i go AGM and ask the director , he say some branch francise out
he say will add new pharmacy branch
ok i believe him
but 2018 already wanted to end also , the pharmacy branch not increase but even decreasing to 15 branch only !!
2018-10-14 18:01
tis year only 15branch is actually less then 17branch and just open 1-2 branch recently......even the main board listing news which heard 2years ago also no further news oredi....all the news from the company seem just to attract ppl to buy but wont happen in near future....too good to be true for this company future....
2018-10-15 10:20
all the TP given by the bank in past seem is just promote the company share out and wont happen in this few years time....if you really want to buy tis share it seem will buy your holding for few years will very little div payout ....better search for better if can...
2018-10-15 10:24
Ya I agree with biohldg is not a easy and simple company as that
U talking alot of expansion and future of company
Let me talk to you the risk as a shareholder for this company for 3 years already
Bioalpha is a relative small company with large share base
Why? Because the director keep issuing share and esos
Too rapidly fund raising activity
Listed on 2015 ipo already fund raising
Subsequently company have another right issue and esos the following year
This year biohldg announce another 10% of private placement
If u study the company closely, this company have negative cash flow
Although the expansion and future looks good, this is something u need to really consider on
Director William holding too little of share
Only hold 19%
If director is confidence why don't he increase his share more??
Transferring to main market, expansion of pharmacy chain
All those thing and promise by director had never been fulfill since listing until now
Now company wanted to acquire some business that is no related to Healthcare supplement at all
In conclusion.
I would seriously advise against people to rush in this company
Especially newbie like u
This company is not a simple company as you type
Best time is wait until 2020 and see how this company going on
And better wait until all segment is stable
Because we never know is the management serious in managing business or simply just Wan to con shareholder money
2018-10-15 10:42
Not to forget China and Indonesia market dropping and this is seriously concerning
Last time biohldg even mention Wan to penetrare Saudi Arabia market but at the end no news
Last time they try to penetrare to Taiwan and Australia but fail as well
2018-10-15 10:43
Post a Comment
Featured Posts
MQ Trading Signals
Time
Signal
Duration
Type
2024-05-10 10:00:00
ADX
Hourly
BUY
Apps
Top Articles
1
Nuclearinvestment
2
3
RHB Investment Research Reports
Technology, Property, and Construction - Penang- Silicon Hub of ASEAN
4
Follow Kim's Stockwatch!
THIS ANOTHER GEMS READY TO SKYROCKET!!! - MAJOR DEVELOPER IN PENANG
5
6
THE INVESTMENT APPROACH OF CALVIN TAN
CALVIN TAN SAY, THANK YOU 9 MILLION TIMES FOR 9 MILLION PAGE VIEWS IN i3 INVESTORS' FORUM!
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Alex™
Buy first, publish later
2018-10-13 16:08