calvintaneng of Netx fame promoted PMCorp at 15 sen on 20/9/2012 as he posted. Yet, I believe the majority of those who invested into this counter AFTER his recommendation or promotion, probably LOST money. Do you agree, Calvintan?

Carlsberg is just as great too.

It is better to own a great company at fair price than to own a fair company at a great price. (For long term investors).

Quality: Great Business, Brand, Unique Product
Management: Excellent
Valuation: Fair value

>>>
Posted by Alipapapa > 2022-03-22 10:29 | Report Abuse

Dairy Producer Farm Fresh Surges in Kuala Lumpur Trading Debut
Shares advance as much as 34% in early trade on Tuesday
It’s the country’s biggest initial public offering since July
ByFilipe Pacheco and Yantoultra Ngui
22 March 2022, 09:05 GMT+8
Malaysian dairy producer Farm Fresh Bhd. jumped in its trading debut in Kuala Lumpur, following the Southeast Asian country’s largest initial public offering since July.

The shares traded as high as 1.81 ringgit, after being sold at 1.35 ringgit each. The company and shareholders raised about 1 billion ringgit ($238 million) in an offering that lured a record 30 cornerstone investors including Abrdn and Franklin Templeton Asset Management (Malaysia).

The firm, which has a unit of sovereign wealth fund Khazanah Nasional Bhd. among its investors, is reviving the IPO market in Kuala Lumpur at a time of slow activity in traditional venues due to rising interest rates and Russia’s invasion of Ukraine. It’s the third company to list in the Bursa Malaysia this year and the largest since CTOS Digital Bhd. more than eight months ago.

The IPO allowed “investors to have exposure in defensive or non-cyclical stocks amid prevailing market volatility with the escalating Russia-Ukraine tensions and rising interest rate atmosphere,” analysts at JF Apex Securities Bhd wrote in a note before the shares started trading.

Outstanding Size
Farm Fresh's IPO was the largest in Malaysia in over eight months


Source: Bloomberg

Starting out producing dairy products from 60 cows imported from Australia, Farm Fresh had expanded to a network of more than 800 home dealers and 38 regional stockists as of last year, according to its website. It controls 18% of Malaysia’s ready-to-drink dairy market.

The company is set to get 301 million ringgit from the sale. It plans to use the money to build a manufacturing hub, a diary farm and processing facility in Malaysia as well as boost production in Australia and elsewhere in Southeast Asia.

“We like Farm Fresh for its strong market presence in Malaysia’s dairy industry, local and regional expansion plans. The company has a dividend policy of 25%,” Ronnie Tan, an analyst at Mercury Securities Sdn. Bhd. wrote in a note prior to the debut giving a subscribe recommendation on the shares.

CIMB Investment Bank, Maybank Investment Bank and Credit Suisse are joint global coordinators in the IPO.

>>>

Has any creditor taken bankruptcy actions on Capital A so far?

Debt-Laden Company Survival Plan

Default (GPT-3.5)

User
Company has negative equity. Huge debts. However business is viable and profitable going forward.

How can this business continue to operate

ChatGPT
If a company has negative equity and significant debts but is still viable and profitable going forward, there are several strategies it can consider to continue operating:

Debt Restructuring: The company can negotiate with its creditors to restructure its debt. This may involve extending the repayment period, reducing interest rates, or even converting some debt into equity, which can help improve the balance sheet.

Equity Injection: The company could seek additional equity investment from existing shareholders or external investors to shore up its capital base and address the negative equity situation.

Cost Reduction: Implementing cost-cutting measures can help improve profitability and free up cash flow to service debt. This might involve streamlining operations, renegotiating contracts, or reducing non-essential expenses.

Asset Sales: The company can sell non-core assets to generate cash and reduce debt. This should be done strategically to ensure that essential business operations are not adversely affected.

Improved Cash Management: Efficient cash flow management is crucial. The company should closely monitor its cash flows, prioritize payments, and implement strict credit policies to maintain liquidity.

Profitable Growth: Focus on growing profitable segments of the business to increase revenue and improve overall financial health.

Refinancing: Explore opportunities to refinance debt at more favorable terms, such as lower interest rates or longer maturities.

Strategic Partnerships: Consider forming strategic partnerships or alliances that can provide access to resources and capital to support growth and debt repayment.

Professional Advice: Seek guidance from financial advisors, accountants, and legal experts who specialize in turnaround and debt management strategies.

It's important for the company's management to work closely with financial professionals to develop a comprehensive plan tailored to its specific situation. It may take time to recover from a negative equity position, but with the right strategies and diligent execution, the business can continue to operate and thrive.

Comparing Farm Fresh with Dutch Lady

Market cap of Farm Fresh (RM'000) 2,283,742
Market cap of Dutch Lady (RM'000) 1,433,600

Farm Fresh Adj PER – Latest 45.35
Dutch Lady Adj PER – Latest 14.03

Performance Info
Farm Fresh ROE - 5 Yr Avg10.56 ROE - Latest FY 7.94
Dutch Lady ROE - 5 Yr Avg 62.91 ROE - Latest FY 11.66


Farm Fresh Latest YR D/E 0.55 NAB/Share (RM) 0.34 Latest PX / NAB 3.59
EV/EBITDA 25.43
Dutch Lady Latest YR D/E 0.02 NAB/Share (RM) 6.20 Latest PX / NAB 3.61
EV/EBITDA 14.72

Comparing Farm Fresh with Dutch Lady

Market cap of Farm Fresh (RM'000) 2,283,742
Market cap of Dutch Lady (RM'000) 1,433,600

Farm Fresh Adj PER – Latest 45.35
Dutch Lady Adj PER – Latest 14.03

Performance Info
Farm Fresh ROE - 5 Yr Avg10.56 ROE - Latest FY 7.94
Dutch Lady ROE - 5 Yr Avg 62.91 ROE - Latest FY 11.66


Farm Fresh Latest YR D/E 0.55 NAB/Share (RM) 0.34 Latest PX / NAB 3.59
EV/EBITDA 25.43
Dutch Lady Latest YR D/E 0.02 NAB/Share (RM) 6.20 Latest PX / NAB 3.61
EV/EBITDA 14.72

Farm Fresh
MKT CAP (RM'000) 2,283,742

Market Valuation
Adj MR PER - 5 Yr Avg 41.59
Adj PER - 5 Yr Range 30.35 - 61.34
Adj PER – Latest 45.35
Adj PER – Prosp 61.00
Adj DY (%) - 5 Yr Avg 0.70
Adj DY (%) - 5 Yr Range 0.58 - 1.01
Latest DY (%) on 22 DPS 0.88
Latest DY (%) on 23 DPS 0.82

Performance Info
ROE - 5 Yr Avg10.56
ROE - Latest FY 7.94

Latest YR D/E 0.55
NAB/Share (RM) 0.34
Latest PX / NAB 3.59
EV/EBITDA 25.43


Dutch Lady
MKT CAP (RM'000) 1,433,600
Market Valuation
Adj MR PER - 5 Yr Avg 27.29
Adj PER - 5 Yr Range 16.85 - 43.78
Adj PER – Latest 14.03
Adj PER – Prosp 18.67
Adj DY (%) - 5 Yr Avg 1.74
Adj DY (%) - 5 Yr Range 1.33 - 2.47
Latest DY (%) on 22 DPS 2.23
Latest DY (%) on 23 DPS 2.23

Performance Info
ROE - 5 Yr Avg 62.91
ROE - Latest FY 11.66

Latest YR D/E 0.02
NAB/Share (RM) 6.20
Latest PX / NAB 3.61
EV/EBITDA 14.72

Farm Fresh
MKT CAP (RM'000) 2,283,742

Market Valuation
Adj MR PER - 5 Yr Avg 41.59
Adj PER - 5 Yr Range 30.35 - 61.34
Adj PER – Latest 45.35
Adj PER – Prosp 61.00
Adj DY (%) - 5 Yr Avg 0.70
Adj DY (%) - 5 Yr Range 0.58 - 1.01
Latest DY (%) on 22 DPS 0.88
Latest DY (%) on 23 DPS 0.82

Performance Info
ROE - 5 Yr Avg10.56
ROE - Latest FY 7.94

Latest YR D/E 0.55
NAB/Share (RM) 0.34
Latest PX / NAB 3.59
EV/EBITDA 25.43


Dutch Lady
MKT CAP (RM'000) 1,433,600
Market Valuation
Adj MR PER - 5 Yr Avg 27.29
Adj PER - 5 Yr Range 16.85 - 43.78
Adj PER – Latest 14.03
Adj PER – Prosp 18.67
Adj DY (%) - 5 Yr Avg 1.74
Adj DY (%) - 5 Yr Range 1.33 - 2.47
Latest DY (%) on 22 DPS 2.23
Latest DY (%) on 23 DPS 2.23

Performance Info
ROE - 5 Yr Avg 62.91
ROE - Latest FY 11.66

Latest YR D/E 0.02
NAB/Share (RM) 6.20
Latest PX / NAB 3.61
EV/EBITDA 14.72

Dutch Lady

Adj Prosp EPS (Sen) 120.00
Adj DPS (Sen) 50.00Adj
Prosp PER 18.67
Prosp DY (%) 2.23

FYEDEC 22 MSEB Sector
Consumer Products & Services
DQ Rating 7.0

Price Info
Latest PX as at 19.09.2023(RM) 22.40
Latest 12 Months PX Range (RM) 20.22 - 31.78
Adj 5 Years PX Range (RM) 20.22 - 64.78
MKT CAP (RM'000) 1,433,600

Earnings Info
Adj EPS (Sen) - 5 Yr Avg 155.47
Adj EPS (Sen) - Prev FY 146.25
Adj EPS (Sen) - Latest FY 159.64
Adj EPS (Sen) - Prosp FY 120.00

Dividend Info
Adj DPS (Sen) - 5 Yr Avg 96.00
Adj DPS (Sen) – 2022 50.00
Adj DPS (Sen) – 2023 50.00

Market Valuation
Adj MR PER - 5 Yr Avg 27.29
Adj PER - 5 Yr Range 16.85 - 43.78
Adj PER – Latest 14.03
Adj PER – Prosp 18.67
Adj DY (%) - 5 Yr Avg 1.74
Adj DY (%) - 5 Yr Range 1.33 - 2.47
Latest DY (%) on 22 DPS 2.23
Latest DY (%) on 23 DPS 2.23

Performance Info
ROE - 5 Yr Avg 62.91
ROE - Latest FY 11.66
PX Growth Rate - 5 Yr Avg (%) -18.42
DPS Growth Rate - 5 Yr Avg (%) -29.15
EPS Growth Rate - 5 Yr Avg (%) -3.23

Latest YR D/E 0.02
NAB/Share (RM) 6.20
Latest PX / NAB 3.61
Liquid Asset / Share (RM) 1.64
Altman's Z-Score 4.26
CF/Share (Sen) 174.06
EV/EBITDA 14.72

Farm Fresh

Adj Prosp EPS (Sen) 2.00
Adj DPS (Sen) 1.00
Adj Prosp PER 61.00
Prosp DY (%) 0.82
FYEMAR 23MSEB Sector
Consumer Products & Services
DQ Rating2.0

Price Info
Latest PX as at 19.09.2023(RM)1.22
Latest 12 Months PX Range (RM)0.99 - 1.67
Adj 5 Years PX Range (RM)0.99 - 1.86
MKT CAP (RM'000)2,283,742

Earnings Info
Adj EPS (Sen) - 5 Yr Avg2.66
Adj EPS (Sen) - Prev FY4.91
Adj EPS (Sen) - Latest FY2.69P
Adj EPS (Sen) - Prosp FY2.00

Dividend Info
Adj DPS (Sen) - 5 Yr Avg 0.27
Adj DPS (Sen) – 2022 1.07
Adj DPS (Sen) – 2023 1.00

Market Valuation
Adj MR PER - 5 Yr Avg 41.59
Adj PER - 5 Yr Range 30.35 - 61.34
Adj PER – Latest 45.35
Adj PER – Prosp 61.00
Adj DY (%) - 5 Yr Avg 0.70
Adj DY (%) - 5 Yr Range 0.58 - 1.01
Latest DY (%) on 22 DPS 0.88
Latest DY (%) on 23 DPS 0.82

Performance Info
ROE - 5 Yr Avg10.56
ROE - Latest FY 7.94
PX Growth Rate - 5 Yr Avg (%)
DPS Growth Rate - 5 Yr Avg (%) NM
EPS Growth Rate - 5 Yr Avg (%) NM

Latest YR D/E 0.55
NAB/Share (RM) 0.34
Latest PX / NAB 3.59
Liquid Asset / Share (RM) 0.10
Altman's Z-Score 4.78
CF/Share (Sen) 5.15
EV/EBITDA 25.43

>>>>
Stock: [CAPITALA]: CAPITAL A BERHAD

2 days ago | Report Abuse

Balance Sheet

Jun 2023 Qtr (millions)


Cash 735
STDebt 6249
LTDebt 17,632



AR 1103
AP 1226



Current Asset 2,270
Current Liability 14,209
Current Ratio 0.16


Other CL 6702


Fixed Asset 13,906
Total Asset 27,758
Total Liabilities 37,963
Total Equities (8,391)

Total Equity/Total Asset - 30.23%



Equity
Common stock 8660
Retained Earnings (15,659)

>>>>

The equity is deeply negative. The company is bankrupt.
The current liabilities >>> current asset. It is insolvent.
ST Debt and LT Debt >>> Cash. It is net debt.

MKT Capt (RM m) : 4,293.8
ENT Value (RM m) : 18,026.5


Despite equity at RM - 8.4 billion, market gives it a market cap of RM 4.3 billion!

Gruesome company.

Performance Info
ROE - 5 Yr Avg
4.62
ROE - Latest FY
5.45
PX Growth Rate - 5 Yr Avg (%)
9.93
DPS Growth Rate - 5 Yr Avg (%)
NM
EPS Growth Rate - 5 Yr Avg (%)
-7.74
Latest YR D/E
0.02
NAB/Share (RM)
3.24
Latest PX / NAB
0.35

Dividend

In respect of the financial year ended 31 July 2023, the Board of Directors recommended a single tier final dividend of 5 sen per ordinary share (single tier final dividend for financial year 2022 of 5 sen per ordinary share). The dividend will be payable on 26 January 2024, subject to shareholders’ approval at the forthcoming Annual General Meeting of the Company.

For the current financial year, the Division saw strong take-up rates for its property launches in Pulai Mutiara 2, Scientex Sungai Petani, Scientex Kota Tinggi and Bandar Scientex Jasin. Moving forward, we will continue to launch new phases of affordable housing across its developments in Peninsular Malaysia to meet the robust demand by leveraging on its branding and strategic locations. The latest land acquisitions were located in Jenjarom in Selangor, Tebrau and Kulai in Johor Bahru, which are expected to be completed in the coming financial year 2024 and will contribute positively on the Division’s performance in the near future.

Barring unforeseen circumstances, the Property Division is optimistic that demand for its affordable housing will remain resilient for the coming financial year.

12-month review
For the financial year ended 31 July 2023, the Group recorded its higher revenue of RM4.08 billion, an increase of 2.3% compared to the preceding financial year of RM3.99 billion. Operating profit also came in higher at RM589.6 million compared to the preceding financial year of RM561.0 million. The higher revenue and operating profit were contributed by the better performance from Property Division.

For the three months ended 31 July 2023, group revenue increased 4.4% to RM185.32 million from RM177.49 million in the preceding quarter mainly due to higher demand from both domestic and export markets.
Despite the higher revenue, the Group registered a loss before tax of RM7.86 million compared to a profit before tax of RM12.83 million in the preceding quarter, primarily attributable to the goodwill impairment of RM22.71 million in relation to its operations in Myanmar. Excluding the impact of the goodwill impairment, the Group’s profit before tax increased by 15.8% compared to the preceding quarter mainly due to the increase in revenue.

SCIPACK

YEAR .. DPS(SEN) .. EPS(SEN) .. YEPX
2009 .. 3.44 .. 6.87 .. 0.53
2010 .. 3.55 .. 5.53 .. 0.6
2011 .. 2.98 .. 6.16 .. 0.61
2012 .. 4.29 .. 7.46 .. 0.88
2013 .. 4.98 .. 8.29 .. 1.43
2014 .. 4.64 .. 7.19 .. 1.46
2015 .. 4.98 .. 8.17 .. 1.89
2016 .. 4.45 .. 7.63 .. 1.84
2017 .. 4.33 .. 7.41 .. 2.29
2018 .. 4.15 .. CFY .. 1.62
2019 .. 0.5 .. 4.73 .. 2.26
2020 .. 5 .. 15.86 .. 2.6
2021 .. 4.5 .. 15.17 .. 2.4
2022 .. 2.5 .. 13.03 .. 2.4

Mainland China imports food and energy.

Its government has a policy in place to be self sufficient in food (food security).

As for energy, it too has a policy in place too.

When PM Badawi took over, food prices were very high and he promoted growing food to be self sufficient. This has since not been emphasized.

MKT Capt (RM m) : 4,293.8
ENT Value (RM m) : 18,026.5
Total Shareholders Equity: (5,725.1) Dec 2022

Dec 2022

Raw Materials 1,092 million

I recalled Guan Chong stocks up cocoa with each order they received. They did benefit when the price of cocoa goes up in the past too.

>>>
Posted by i3lurker > Sep 19, 2023 4:41 PM | Report Abuse

3iii lost money in 2008 due to belief in fake figures.
History repeats itself.
>>>

?????

Capital A suffered hugely during the pandemic years. Its 2020, 2021 and 2022 financial statements showed clearly.

The last 5 qtrs from showed improving trends in its business, especially the lastest quarter. Its Net Operating Cash Flow and Free Cash Flow had been positive the last 2 quarters.

Cash Flow Statement
Capital A

Year … 2022 … 2021 … 2020 … 2019 … 2018
Net Income … -3,304 … -3,575 … -5,551 … -522 … 1,335
FFO … -455 … -873 … -1,362 … 2,089 … 1,709
NOCF … -282 … -678 … -2,165 … 2,087 … 524
Cap Exp … -91 … -50 … -100 … -306 … -1,130
Div Pd … - … - … - … -3,409 … -1,738
FCF … -373 … -726 … -2,259 … 1,792 … -600

Cash Flow Statement
Capital A

All values MYR Thousands.

Qtr … 30-Jun-23 … 31-Mar-23 … 31-Dec-22 … 30-Sep-22 … 30-Jun-22
Net Income … 937,105.00 … 29,890.00 … 41,103.00 … -1,153,824.00 … -1,114,473.00
FFO … 321,574.00 … 458,318.00 … 66,121.00 … -86,192.00 … -39,505.00
NOCF … 484,934.00 … 528,709.00 … -180,608.00 … 65,567.00 … 273,946.00
Cap Exp … -20,538.00 … -38,100.00 … -59,950.00 … -19,725.00 … -2,505.00
FCF … 463,754.00 … 491,251.00 … -240,558.00 … 45,842.00 … 271,441.00

How can CapitalA turnaround?

Its business suffered hugely during the pandemic, leaving it with huge liabilities and borrowings.

Now its planes are flying. More passengers are flying. Soon, more of its planes will be flying. The initial starting will incur costs. Soon, profits and cash flows flow again.

For now, it is also dependent on the goodwill and mercy of its creditors, bankers and bond holders.

"When you owe a little bit of money, you have a problem. When you owe a lot of money, your lenders have a problem."

Hopefully, with ingenuity, patience, coordination and cooperation between many parties, CapitalA will turnaround, sooner than later.

https://www.visualcapitalist.com/the-50-most-valuable-companies-in-the-world-in-2023/

https://www.visualcapitalist.com/the-50-most-valuable-companies-in-the-world-in-2023/

https://www.visualcapitalist.com/the-25-worst-stocks-by-shareholder-wealth-losses-1926-2022/

https://www.visualcapitalist.com/the-25-best-stocks-by-shareholder-wealth-creation-1926-2022/

Finding the Next Winners
Given that the names on this list account for 0.1% of all public U.S. stocks, picking out one of the next long-term winners could be a difficult task. In fact, 95% of actively-managed large cap funds—which aim to beat the market through stock picking—underperformed their benchmark over a 20-year period.

Investing in index funds is one possible way to get exposure to top performers. For instance, Apple has been part of the S&P 500 since 1982, about a year after it went public.

My advice is to stop this politicking and start delivering, even as an opposition member of Parliament.

Focus on the important issues: the Malaysian economy and Unity among various races.

This list of Southeast Asian countries by GDP provides a list of Southeast Asian countries according to their respective gross domestic products (GDP).

Nominal GDP World Bank 2022
# World rank Country GDP
(US$ millions)
1 16 Indonesia 1,319,100
2 29 Thailand 495,340
3 34 Singapore 466,788
4 36 Vietnam 408,802
5 37 Malaysia 406,305
6 39 Philippines 404,284
7 87 Myanmar 59,364
8 105 Cambodia 29,956
9 131 Brunei 16,681
10 132 Laos 15,724
11 178 Timor Leste 3,163

Will Malaysia run out of oil?
KUALA LUMPUR: Malaysia's petroleum reserves for oil and gas resources are projected to last for only 15 years, according to the Reserves Life Index calculation.28 Mar 2023

Crack Spread: What it is, How to Trade It
https://www.investopedia.com/terms/c/crackspread.asp

https://klse.i3investor.com/web/blog/detail/koonyewyinblog/2022-08-25-story-h1628751611-Hengyuan_s_profit_is_erratic_Koon_Yew_Yin

YEAR .. DPS(SEN) .. EPS(SEN) .. YEPX .. PER
2009 .. 37.5 .. 96.64 .. 10.52 .. 10.9
2010 .. 37.5 .. 35.46 .. 10.76 .. 30.3
2011 .. 37.5 .. -41.91 .. 9.18 .. -21.9
2012 .. 18.75 .. -31.55 .. 8.4 .. -26.6
2013 .. 11.25 .. -51.99 .. 6.36 .. -12.2
2014 .. 0 .. -242.63 .. 4.69 .. -1.9
2015 .. 0 .. 117.26 .. 4.97 .. 4.2
2016 .. 0 .. 111.75 .. 2.03 .. 1.8
2017 .. 0 .. 305.66 .. 16.3 .. 5.3
2018 .. 2 .. -12.59 .. 4.66 .. -37.0
2019 .. 0 .. -14.62 .. 4.22 .. -28.9
2020 .. 0 .. 76.92 .. 5.99 .. 7.8
2021 .. 4 .. 65 .. 3.87 .. 6.0
2022 .. 2 .. 75 .. 3.52 .. 4.7


In 2017/2018, many in this forum cheered for Hengyuan at price of RM 16 per share!

GENM

Year EBITDA (million)
2022 2,288
2021 551
2020 314
2019 2,593
2018 2,766

YEAR .. DPS(SEN) .. EPS(SEN) .. YEPX
2009 .. 5.25 .. 23.42 .. 2.81
2010 .. 5.93 .. 23.77 .. 3.39
2011 .. 6.15 .. 26.32 .. 3.83
2012 .. 6.45 .. 27.03 .. 3.55
2013 .. 6.98 .. 27.38 .. 4.38
2014 .. 6.9 .. 20.02 .. 4.07
2015 .. 6.3 .. 17.87 .. 4.38
2016 .. 7.3 .. 27.01 .. 4.58
2017 .. 17.5 .. 22.99 .. 5.63
2018 .. 19 .. 31.83 .. 3.02
2019 .. 19 .. 20.35 .. 3.29
2020 .. 20 .. -38.36 .. 2.69
2021 .. 8.5 .. -17.46 .. 2.88
2022 .. 15 .. 2.6 .. 2.69

Div Yield HDY % LDY %
5 Yr 4.47 2.89
10 Yr 4.43 3.01

Takaful


Its usual historical PE ranged from
Low PE of 5.6 and High PE of 13.1
and its average or signature PE was 9.7

At the current price of RM 3.69 per share.
it is trading at a PER = 8.79E
and DY = 3.66E

Quality: Gruesome
Management: Poor
Valuation: -

KEY STOCK DATA
P/E Ratio (TTM)
7.86(09/18/23)
EPS (TTM)
RM0.13
Market Cap
RM4.25 B
Shares Outstanding
4.21 B
Public Float
2.27 B
Yield
5099 is not currently paying a regular dividend.




Balance Sheet

Jun 2023 Qtr (millions)

Asset
Cash 735
AR 1103
Inventory 293
Current Asset 2,270
Fixed Asset 13,906
Total Asset 27,758

Liabilities and Equities
STDebt 6249
AP 1226
Other CL 6702
Current Liability 14,209

LTDebt 17,632

Total Liabilities 37,963

Equity
Common stock 8660
Retained Earnings (15,659)
Total Equities (8,391)



Total Equity/Total Asset - 30.23%
Current Ratio 0.16

Balance Sheet

Jun 2023 Qtr (millions)


Cash 735
STDebt 6249
LTDebt 17,632



AR 1103
AP 1226



Current Asset 2,270
Current Liability 14,209
Current Ratio 0.16


Other CL 6702


Fixed Asset 13,906
Total Asset 27,758
Total Liabilities 37,963
Total Equities (8,391)

Total Equity/Total Asset - 30.23%



Equity
Common stock 8660
Retained Earnings (15,659)

>>>

Posted by skoh888 > Sep 18, 2023 10:05 AM | Report Abuse

You twisting longkang clown, read carefully! It was never about palm oil stock! Its about you and the way you promote stocks. maybe you dont know how to read or are just a great twister and manipulative character

>>>>

... and he promoted so many stocks in this forum!

Earnings appear cyclical.
Its EPSs were higher in the years 2009 to 2016 compared to the years 2017 to 2022.
Its PERs similarly was cyclical, were lower in the years 2009 to 2016 (PE ranged 10.6 to 15.7) compared to the years 2017 to 2022 (PE ranged from 21.9 to 29.0).

The company has been profitable during this period. Its earnings over these years were essentially flat.
It has been generous in paying 94.5% of its earnings as dividends. Its dividend yield at its various prices ranged from a low of 5.93% to 9.02%.

How to benefit from investing in this stock long term?
Not much growth over the long term. Essentially for income (its dividends).

As usual do not buy when its price is "high". When is its price high and when is it low?
2 methods can be used:
1. Buy when its EPS is at the lowest and its PE is near the highest. This usually corresponds to low price.
2. Buy when its DY is at the upper end of its DY. This also reflects that it is priced low.

At the current price of RM 5.14 per share, it is trading at a
PER = 13.53E and DY = 6.81E


Trading at fair price.

YEAR .. DPS(SEN) .. EPS(SEN) .. YEPX
2009 .. 11.25 .. 26.15 .. 2.78
2010 .. 15 .. 25.6 .. 3.01
2011 .. 19.25 .. 22.32 .. 2.87
2012 .. 20 .. 27.18 .. 3.29
2013 .. 20 .. 40.1 .. 4.7
2014 .. 25 .. 41.84 .. 4.4
2015 .. 25 .. 33.95 .. 5.71
2016 .. 25 .. 33.32 .. 5.24
2017 .. 30 .. 18.42 .. 4.45
2018 .. 25 .. 14.18 .. 3.63
2019 .. 20 .. 22.13 .. 3.6
2020 .. 20 .. 17.25 .. 3.78
2021 .. 30 .. 19.11 .. 3.62
2022 .. 50 .. 13.31 .. 3.86
2023 .. 35.00E .. 39.02P .. 5.14

*Cumulative 14 years (sen) 2009 to 2022
*Total cum. EPS 354.86
*Total cum. DPS 335.5
Tot Retain Earns 19.36
DPO Ratio 94.5%

For every $1 earnings retained, we expect company to deliver $1 increment in share price.
For the amount retained of 0.19 , its share price has gained or lost 2.36

Hallmark of Success for Hard-Asset-Based Businesses

Cost leadership: Because hard-asset-based companies have large fixed costs, those that deliver their products most efficiently have a strong advantage and can achieve superior financial performance, such as Southwest in the airline industry. Firms don't usually advertise their cost structures per se, so to get an idea about how efficiently a company operatees, look at its fixed assets turnover, operating margins, and ROIC - and compare its numbers to industry peers.

Unique assets: When limited assets are required to fulfill the delivery of a particular service, ownership of those assets is key. For example, Waste Management's numerous, well-located landfill assets represent a significant competitive advantage and brrier to entry in the waste management market because it's unlikely that enough new landfill locations will get government approval to diminish its share of this business.

Prudent financing: Remember, having a load of debt is not itself a bad thing. Having a load of debt that cannot be easily financed by the cash flow of the business is a reccipe for disaster. When analyzing companies with high debt, always be sure that the debt can be serviced from free cash flow, even under a downside scenario.

(Some Malaysian companies in this hard-asset-based businesses are Air Asia, MAS, Maybulk and Transmile.)

Understanding the business model: Hard-Asset-Based Businesses

Companies in the hard-asset-based subsector depend on big investments in fixed assets to grow their businesses. Airlines, waste haulers (Waste Management, Allied Waste, Republic Services), and expedited delivery companies (FedEx, UPS) all fall into this subsector.

In general, these companies aren't as attractive as technology-based businesses, but investors can still find some wide-moat stocks and good investments in this area.

Industry Structure

Growth for hard-asset-based businesses inevitably requires large incremental outlays for fixed assets. After all, once an airline is flyinng full planes, the only way to get more passengers from point A to point B is to acquire an additional aircraft, which can cost $35 million or more.

Because the incremental fixed investment occurs before asset deployment, companies in this sector generally finance their growth with external funding. Debt can be used to finance almost all of the asset's cost, so lenders generally require the asset to provide collateral against the loan. With this model, high leverage is not necessarily a bad thing, provided that the company can make enough money deploying the asset to cover the cost of debt financing and earn a reasonable return for shareholders.

With this in mind, airlines are generally the least attractive investment of all the companies in this subsector. Airlines must bear enormous fixed costs to maintain their fleets and meet the demands of expensive labour contracts, yet they sell a commodity service that's difficult to differentiate. As a result price competition is intense, profit margins are razor-thin - and often non-existent - and operating leverage is so high that the firms can swing from being wildly profitable to nearly bankrupt in a short time. If you don't think this sounds like a recipe for good long-term investments, you're right - airlines have lost a collective $11 billion (excluding the impact of recent government handouts) between deregulation in 1987 and 2002. Over the same time period, 125 airlines had filed for Chapter 11 bankruptcy protection, and 12 of them filed for Chapter 7 liquidation.

But despite the terrible performance for airlines in general, a few carriers have fared very well. Southwest, for one, has been profitable for 30 consecutive years - an amazing achievement considering the cyclicality of its business and the dismal operating environment for the industry in 2002. Southwest's superior financial performance is largely because of its main strategic advantage: a low cost structure driven by its practice of flying one type of aircraft for all its no frills, point-to-point routes. In an industry with less-than-desirable fundamentals, Southwest has achieved superior financial results by deploying a different and dominant, business strategy.

Other characteristics of hard-asset-based businesses make this segment worth watching. The idea of limited or shrinking assets, for example, can go a long way to provide stability in the competitive landscape for these companies. Because of the NIMBY (not in my back yard) principle, it is very difficult to get approval for new landfill sites. As a result, it is highly unlikely that new competitors will enter the landfill side of the waste management business. That puts a company such as Waste Management, which owns 40 percent of the total U.S. disposal capacity via its 300 landfills, at an advantage.

The majority of hard-asset-based companies fall into the narrow- or no-moat buckets. With few, if any, competitive advantages for many of these companies, investors should look for a pretty steep discount to a fair value estimate before buying shares.

Airline industry

This is a most challenging and difficult industry indeed.
Since the Wright's brothers first flight, the airline industry as an aggregate has destroyed more capital over the many years.
Buffett joked that he has a toll free number to remind him not to invest in airlines. Yet, he conveniently forgot, and invested in 2019 and then divested of these very quickly when the Covid pandemic struck.

The airline industry is one where despite growth in the industry as a whole, with more people flying worldwide; and yet, the wealth created by the industry for the invested capital remained elusive.

Many airline casualties in the past.

Growth can be both good and bad. It is worthwhile reminding ourselves of this.