i don't like the behavior of both. It reminds of my boss in my earlier year of my career, they can shout at you.... but once you talk back, they sabul you.... without good reasons
i digested what kon-kon informed us in i3 forum, i did my study and prepare for the right time to execut the orders , patiently waited for fruits to mature and harvest it. That all. He informed us with his preparation to exit, after seeing jaya tiasa history, I know his ball of game.
shud be fine... if the management refuse to sell at 22 pe for f&b, means it could worth much more....currently private equity becoming a trend... not much company like f&B for instituitonal fund to invest.... can ezly hit 5@6 if nothing goes wrong....
the company looks solid although short term may lack excitement absence of newsflow. its own tin operations contribution is not doing great but the food products is still growing and kian joo contribution also stabilised after some previous forex losses. for the past 5 years, excluding extraordinary gain for purchase of KJ in 2012, the profit was also on a strong upward trend. it wouldn't be surprising if they achieve profit of RM80-RM100m for 2016 which for a market cap of RM650m, it's not expensive at 6-8 times PE.
yeoh jin hoo seems to me a very typical chinaman businessmen. low profile, doesn't talk much in public and not overly generous to shareholders as well (in terms of dividend). but from his raiding of kian joo, buying over of FnB, sales of KingKoil to KPS and his own takeover of Alcom, I think it's fair to say he's quite a ruthless and shrewd in his biz dealings.
kian joo stake itself has decent value (about RM400m by market value), FnB as well. not sure if the rumours of KWAP is still ongoing (RM280 for 30% stake), but from what I heard from sources was that an IPO was always on the plan in these few years (which was why they bought over the remaining 20%). for separate listing of FnB, it is unlikely that it will be at such low PE that Can-One commands now, so that would unlock some value for shareholders.
a company with good value and great potential but when will the value be realised, that's the million dollar question. its low profile doesn't help...
let's see how the sugar price hike impact to Canone 's F&B bottom line in next QR since a mixture of whole milk and sugar, 40%-45% of which is sugar for condensed milk.
Q1 2016 Sugar spike 9%, Q2 2016 sugar spike 28% from 16 cent USD/Lb to 21 cents USD/LB. But in Q3 2016, the price is quite stable at around 21 cents. Based on reported Q1 & Q2 result, the result seems better and better...will be interesting to see if cost-past-through will give better margin or not. Too bad we do not know the biz volume of evaporated milk vs condensed milk.
that's the problem with companies below the radar, the disclosure is almost non-existent. we don't know the sales volume of their milk biz, the product mix, the sugar cost proportion, sugar source (whether local/international and whether affected by MSM price hike) and their ability to pass through any cost increase
The ultimate looser will be those at the bottom of FOOD CHAIN--> consumer.
The stall buy 30% higher price of milk.. and trust me, they will likely increase the price by 30% even though the raw mat price per cup increase is maybe only 3%
ultimate loser is consumer. but can can-one successfully pass through the cost without hurting their volumes will remain to be seen. long term higher chance, short term not sure
the overseas orders for condensed milk could be based on tender basis. prices are normally fixed over a certain period. Canone may suffer margin squeeze in short term.
Bro Up_Down, this counter will only become sexy again when the long rumoured sales of their milk biz comes true..anyway, the coming Q results shall be OK
CharlesT. Don't know when spinning off F&B would materialize. Wait and see their QR first. I'm not in hurry....more than 30 counters in my waiting list.
i still have high expectation with canone diary business. The impact of sugar prices hike will be temporary, long term no problem. Canone will be a company that earn 100million per annum in within 1-3 years.
Popo92, see this week Business Weekly, F&B companies profit margin has been affected by raise of raw material. Price of sugar, dairy and tin are raising for past few months. Keep for long term and dont expected outperform QR.
yes that is the main reason i said within 1- 3 years, i am confident in long term canone business will have no problem earning 100million per annum. Raw materials rise is always something that consumers have to deal with more than manufacturers. Furthermore, F&B is a necessity.
Canone is exporting a lot of 'Milk' and 'Creamer' to the third world countries. Their raw materials costs are highly related to CPO price and Sugar for its products ' 'Sweetened Condensed Filled Milk' and 'Sweetened Creamer' . As you can see the ingredients of the product consists 'edible vegetable fat', it is actually CPO . Let's see how's the impact of CPO and Sugar price hikes impact on its bottom lines in next 2 quarters.
All our sweetened condensed milk products have been adequately pasteurized and packed in a safe, hygiene condition and ready to consume or use as part of an ingredient.
DEFINITION & COMPARISON
Sweetened Condensed Milk is a product resulting from evaporation of a portion of water from a recombined mix of sugar, milk solids and anhydrous milk fat. It shall also contain not less than 8% of milk fat and 20% of total milk solids.
Sweetened Condensed Filled Milk is a product resulting from evaporation of a portion of water from a recombined mix of sugar, milk solids and edible vegetable fat. It shall also contain not less than 8% of vegetable fat and 20% of total milk solids.
Sweetened Creamer is a product resulting from evaporation of a portion of water from a recombined mix of sugar, milk solids and edible vegetable fat. It shall also contain not less than 10% of vegetable fat and 24% of total non-sugar solids.
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CharlesT
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Posted by CharlesT > 2016-10-11 15:59 | Report Abuse
Looks like u like Koon Koon as much as u like TTB