johotin is very similar to canone. both in the packaging biz then diversified into condensed milk biz. canone price has remained relatively flat while johotin has surged. so is canone undervalued or johotin overvalued? I'm not sure but time will tell
1) If canone source sugar locally, sugar price increased only in 1st August if not mistaken. There should be enough old sugar stock. If the replenishment is done recently, there should bemixture of old + new stock and therefore there should be no cost spike.
If canone hold import permit, the sugar price hike is not a new issue and could have already absorb and pass through. 21/11/2016 11:54
latest Q3 quarter contribution from kian joo should be around 16 mil, this is already about 60% of canone Q2 earning. Therefore, Canone should be able to exceed, or at least maintain it Q2's performance. Let wait and see.
johotin food division PBT and margin did decrease this quarter compared to last q cushioned by some forex gain. but kian joo will contribute additional RM3.5m this quarter so it may be enough to offset any decrease
General Cans division Revenue of General Cans division decreased from RM96.8 million in Q2, 2016 to RM94.2 million in Q3, 2016 mainly due to lower demand in jerry cans. Profit before taxation decreased by RM0.7 million compared to the last quarter attributable mainly to lower sales and higher operating expenses. Food Products division Revenue of Food Products division decreased by RM27.1 million to RM143.1 million in Q3, 2016 when compared to Q2, 2016 mainly due to lower production. Profit before taxation was lower at RM12.2 million as compared to RM20.6 million for Q2, 2016. The decline in profit before taxation was mainly due to lower sales and higher material consumption. International Trading division International Trading division's revenue decreased by RM2.2 million to RM13.2 million for Q3, 2016 when compared with Q2, 2016.
CanOne is one of kyy's top pick started early 2016. By looking at the past earnings records heading south for the last 2 consecutive quarters, is it kyy golden rules still applicable in this case? Or this is an exceptional case due to 1. potential of CanOne dispose of its F & B to KWAP at premium price. 2. current earnings just a temporary setback as a result of higher raw material costs 3. potential export play as RM keeps depreciating against USD 4. potential higher contribution from the associate, KianJoo
EPS 30 Sep 16 - 12.3 cents 30 Jun 16 - 14.05 cents 31 Mar 16 - 5.7 cents 31 DEc 15 - 7.25 cents 30 Sep 15 - 14.28 cents 30 Jun 15 - 14.77 cents
With 12 sen earnings last quarter, I wouldn't be worried.....Kian Joo earnings have recovered a long way in the last few quarters........and the milk is exported to many countries......can look forward to even better days ahead.
don't get all the pessimism, let's just put figures to get a clearer picture
Can-One v Johotin Trailing 4Q profit: RM75.5m vs RM28m Annualised last q: RM94.6 vs RM43.1m Market cap: RM718m vs RM313m
One quarter sometimes have a lot of noise, so let's say we use 4Q.
we know KJ was hit by forex, last 4q total around RM22.3m, impact on Can-One is around 33% or RM7.4m while Can-One has forex gain of 2m so Can-One adjusted 4Q is RM80.9m. Johotin in the same period was forex gain of RM2.3m so adjusted 4Q is RM25.7m.
so basically the adjusted trailing 4Q PE of Can-One is 8.9 times vs Johotin 12.1 times Even if we just take last q annualised without adj PE is 7.6 times vs 7.3 times
current share price even after slight increase for the past week doesn't seem overpriced but like I said, it's a decent quarter but not the greatest can-one had.
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Posted by Blink22 > 2016-11-21 09:31 | Report Abuse
buy