On behalf of the Board of Directors of Lii Hen Industries Bhd. ("LHIB" or the "Company"), Alliance Investment Bank Berhad wishes to announce that the Company proposes to undertake a bonus issue of 359,999,976 Bonus Shares on the basis of two (2) Bonus Shares for every one (1) existing LHIB Share held on the Entitlement Date.
Further details of the Proposed Bonus Issue are set out in the attachment enclosed.
Special dividend 5 sen but today's price seems don't move. Many people still ask why PAT and EPS are so low. Maybe if people prefers high profit & EPS but low cash flows, they should go to collect Serbadk at this moment.
BP Plastics Holding Bhd (Fundamental BUY with TP 2.28) • We are sanguine on the prospect of BP Plastics Holding Bhd (BPPLAS) as a prominent Polyethylene (PE) film player and see demand to pick up from the resumption of global and regional trade activities from 2H2021 amid on-going capacity expansion. • The stretch film maker is currently trading at undemanding valuation of FY22 PER 8x further supported by projected attractive dividend yield of 5.8%. Solid balance sheet with zero borrowings. BUY with target price of RM2.28 based on 11.5x FY22 PER as per the 5-year average valuation. • BBPLAS is now one of the largest PE film makers in Asia, supplying cast stretch film and industrial packaging films and bags to over 54 countries. About 76% of the sales are export driven supplying to countries across Asia, Middle East, Europe and North American region. We expect the order for stretch films and industrial bags to pick up due to anticipated global trade recovery in 2H2021 of which the company is currently experiencing especially from Japan. • BPPLAS has a combined production capacity of 8,500 MT/month and to deploy new 9th cast stretch film machine (to be commissioned by end FY21) from most of the capex spending of RM35.6m. 75% of the sales are derived from stretch films and 25% are from blown PE films. Presently, approximately 40% of the stretch film are premium products (thin gauge film), commanding 20% - 30% higher selling price than the conventional films. • We expect the proportion of premium film to conventional film to increase with the new cast stretch film line in place. For blown film division, due to highly customized specification to fit for different industrial purposes, it garners higher margin though volume is lower when compared to stretch film. • The plastics packaging industry in Malaysia has over the years undergone consolidation. In effect, the elimination of competition has enabled BPPLAS and other industry player like TGUAN to gain access to new clients where previously was not possible, which is an added advantage. • BPPLAS average dividend payout ratio is attractive at 58.3% over the past 5 years, translating to a projected yield of 5.8%. Its zero borrowings and cash position of RM76.1m would comfortably fund future CAPEX requirements. • All in, we forecast EPS growth of 13% for FY21 and 11% for FY22 respectively. BPPLAS is an attractive value proposition given its undemanding valuation and decent dividend yield. BP Plastics Holding Bhd (BPPLAS, 5100)
Profit guarantee is total RM60 mil PAT for 3 financial years, average RM20 mil PAT x 55% = RM11 mil. Based on purchase consideration of RM121 mil, PE ratio is 11, consider quite fair benchmark.
Check official website, Lexis Chemicals have 2,600mt/month or 31,200mt per annum capacity, more than Transfer Master S/B of 24,000mt per year but lower than LPI of 40,000mt per year. But of course there's different products range and market/customers.
Q3 PBT is better than Q2 actually, but tax expense is extremely high (mainly arising from overseas subsidiaries) hence drag down the net profits. Cranes segment performance dip but total outstanding order books on hand still have RM511mil.
This is amazing result. If 1Q20 excluding the FV gain on deemed disposal of JV ~ RM28.5mil, the net profit will be adjusted to RM140.6mil, slightly lower than latest profit despite the lower revenue. And profit margin is at high side eg. above 40% which is highest in recent years. That show how well they did in cost management, and the high profit margin on midstream business as now they're focus more on storage & terminals at this low crude oil pricing environment.
@ ForceBWithU Understand where you come from. My guess is Ocncash producing spunbond non-woven while TS is producing meltdown non-woven, which contributes higher profit margin. That's why Ocncash emphasizes that new expansion is able to produce 3-ply materials for 3-ply masks.