Thanks for correcting my mistake on the edible oil segment.
After a more detailed study, edible oils & fats is a new business segment that the company has venture in to tap on some existing assets after the divestment of milk powder segment. Yoy, revenue grows a whopping 183x from 789k to 145m, while asset grows 130m, from 579m to 709m. Qoq, revenue grows 84.5m based on the notes quoted from 2Q19 below.
(Contract Manufacturing division registered revenue of RM512.8 million in YTD Q2, 2019, an increase of RM84.5 million compared to YTD Q2, 2018, mainly contributed by edible oils and beverages segments)
The losses i suspect should be one off set up costs incurred of moving machinery & perform re-calibration on the machinery computer setting to swift from milk powder to edible oil, & hiring costs of the new staff.
This will be a new revenue stream to partially off set the impact after divest of milk powder segment once the setting up expenses stabilized.
Can-one just announced that the company has received tranche 2 amount payment consists of RM153.5m principal amount plus RM2.5m interest.
It means the minimal selling price of F&B Nutrition is RM900m & the company has earned other income of RM2.5m. Also, additional interest saving of RM1m per quarter from this RM153.5 m received).
The remaining balance of tranche 2 amount will be known & be paid soon in 1Q2020 after audited the financial statement.
I hope for a big fat dividend from this disposal. A lean company is good discipline for any management. However going by the track record and prejudiced by years of suffering as Kian Joo shareholder, I'm supremely confident that this will not happen.
Wait for price drop till DY=5% or increase dividend. This company management is not generous to minority, no point to support it now. It broke my previous TP below 2. Next level is 1.50 as market conditions is becoming bad.
does anyone know when their operation resumed in 2Q after MCO? 1Q revenue impacted even just for 10 days halt. trying to estimate the revenue impact for 2Q
Just my thoughts on the industry and the company. It's probably trading at fair value even though the NTA is high. We have to consider the fact that the business does not generate high free cash flow as most of its cash if used up to purchase new equipment and to pay off debts.
You should check in on some of those fields below.
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Lukey_Greek
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Posted by Lukey_Greek > 2019-12-03 23:33 | Report Abuse
Thanks for correcting my mistake on the edible oil segment.
After a more detailed study, edible oils & fats is a new business segment that the company has venture in to tap on some existing assets after the divestment of milk powder segment. Yoy, revenue grows a whopping 183x from 789k to 145m, while asset grows 130m, from 579m to 709m. Qoq, revenue grows 84.5m based on the notes quoted from 2Q19 below.
(Contract Manufacturing division registered revenue of RM512.8 million in YTD Q2, 2019, an
increase of RM84.5 million compared to YTD Q2, 2018, mainly contributed by edible oils and
beverages segments)
The losses i suspect should be one off set up costs incurred of moving machinery & perform re-calibration on the machinery computer setting to swift from milk powder to edible oil, & hiring costs of the new staff.
This will be a new revenue stream to partially off set the impact after divest of milk powder segment once the setting up expenses stabilized.