Of these 30s, comparing their shareholding in 2023 to 2022: 1. 17 still own the same number of shares in 2023 as the previous year. 2. 7 sold some shares (small amount relative to their shareholdings). 3. 3 bought more shares compared with previous year. 4. 3 (2 funds and 1 individual) dropped out of the top 30s list and were replaced by new shareholders.
Conclusion: Among the Top 30 shareholders in DLady, the overwhelming majority are still holding onto their shares. The share price of DLady has dropped significantly over that 1 year period.
Revenue increased last 10 years year on year, profit however fluctuated due to cost of goods mostly. Positive cash flow all these years except 2021,company spending to expand to double capacity by 2024. High raw milk price that contributed to lower profit margin, has now dropped. Dlady should recover next 1-2 years I figure, unless we all stop drinking milk.
at least nestle got Milo (captures 95% of beverage market while dlady losing market share to many others like fernleaf, f&n, good day milk and others )
it is not cost effective like Ikea or Walmart which buy from source at lowest price and sell full at retail) dlady sources it's milk from 3rd parties and middle men at higher cost (now it eats into its profits )
no moat, no edge, no margin of safety and so?
so must suffer from profit erosion and more market share to competitors
DLADY is not a local Company ..... they investigating more than +500Million do you think its all for malaysia market ...this is not MSM where they just build factory without having even thinking bout demand ... indeed its in bad shape but again question is how low one want to buy thats it .
palm oil vs Milk very difference industry ... you go plant based no matter what majority will still drink milk ...and again dlady milk all coming from netherlands as well ..anyway i will keep on eye on this if touch below 19 sure will collect some
Milk powder price sinks to three-year low as dairy demand wanes By Tracy Withers / Bloomberg 02 Aug 2023, 06:42 am
main news image (Aug 2): Whole milk powder auction prices have slumped to a three-year low amid signs that demand for dairy products is waning.
The average price for whole milk powder fell to US$2,864 a ton at the GlobalDairyTrade auction overnight, the lowest since June 2020. The weighted index for whole milk powder dropped 8% from the previous auction, while the index for all dairy products declined 4.3%.
Prices have tumbled almost 40% from a record US$4,757 in March 2022 as a weak Chinese economy damps demand at the same time as producers are boosting output. The decline suggests that New Zealand-based Fonterra Cooperative Group, the world’s largest dairy exporter, will reduce payments to its local suppliers this year.
Last week, Westpac New Zealand senior economist Nathan Penny said the ongoing sluggishness of the Chinese economy meant a downtrend in global dairy prices had been sustained much longer than expected.
Penny cut his projection for Fonterra’s milk price for the current season to NZ$7.80 per kilogram of milksolids from his previous forecast of NZ$8.90.
Fonterra has signaled it will pay NZ$8.20 for the previous season.
Historically the company delivered > 50% ROE. Last year was a bad one with 12%. But at 12% it is much better than most Bursa companies. The question is whether you believe that the business fundamentals has changed so that the historical performance is no longer valid or whether last year was an anomaly.
Demand for milk remains strong. Operating profit increased due to softening of dairy raw materials, but negatively impacted by weak Malaysian ringgit currency. The global dairy prices remain historically at high levels, but are expected to soften further in the remainder of 2023.
Over the long term, the outlook for DLMI remains cautiously optimistic due to the strength of our brands, and the increasing need for and recognition of the goodness and nutritional value of milk amongst Malaysians. The Company will continue to support the local dairy farmers and increase the quantity and quality of local fresh milk.
Dutch Lady: Focuses on cash flow management amid challenging market . Dutch Lady Milk Industries (DLMI) will continue to strictly manage its cash flow to steer the company in a tough market and manage internal financing for the new facility construction in Bandar Enstek, according to MD Ramjeet Kaur Virik. DLMI is investing RM540m in the new world-class manufacturing plant under construction in Bandar Enstek. The manufacturing plant will be fully operational within the course of 2024. (StarBiz)
Improved margins ahead. We expect a stronger 2H in terms of sales, especially in 4Q due to seasonality. DLADY is also poised for improved margins given the softening soft commodity prices.
We like DLADY for: (i) its resilient top line underpinned by steady demand for staple food items despite an uncertain global economic outlook, (ii) the upside potential of its margins (beyond FY23) given the softening food commodity prices, (iii) its strong brand recognition and increasing awareness of the nutritional value of dairy products.
Here are some interesting data: - Market Cap: 1.4b - Revenue (2022): 1.33b, revenue almost matches market cap. - Debt: Almost none, 14m (negligible ) - New factory: 540m (internal financing, no loan) - Margin improving as raw materials price start coming down from pandemic high.
Raw materials price skyrocketed during pandemic causing margin to shrink. Recently, raw materials price started coming down, combined with previous cost efficiency efforts and increased in products pricing, the margin is improving.
Currently the stock trades at 16x FY24F PE, according to BIMB Research.
KUALA LUMPUR (Sept 6): Consumer staples sectors, specifically food and beverage (F&B) players, may offer more defensive investment opportunities with potential margin improvement due to easing food commodity prices, said Kenanga Research. Notwithstanding that, the research house anticipates a steady uptick in consumer spending post the conclusion of the recent six state elections and extending into the fourth quarter of the year, bolstered by the government's accelerated implementation of policy initiatives. “Additionally, the traditional year-end festive and shopping season is likely to provide a boost to market sentiment. Our outlook is further supported by a stable job market and indications that inflation has reached its peak,” said Kenanga in a note on Wednesday.
The research house said it favours Dutch Lady Milk Industries Bhd (‘outperform’, target price [TP]: RM27) due to its resilient top line underpinned by steady demand for staple food items despite an uncertain global economic outlook, the upside potential of its margins given the softening food commodity prices, and its strong brand recognition and increasing awareness of the nutritional value of dairy products.. https://theedgemalaysia.com/node/681472
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....