A STORY OF RICE (MONOPOLY)! Do you remember Mossino vs Gardenia? And now Hock Ju Edar brands vs Rice Monopoly! An interesting article below:
BUY Hock Ju Edar brands, Thai King, Dragon and go against the RICE MONOPOLY
Briefly, this article sets out to describe how BN Govt., using the legislation and economic powers, to erode and eventually take over the rice milling and distribution businesses of the Chinese held companies.In the eighties, the rice market was mainly controlled by the Chinese carrying such brand names, e.g. Dragon and Pearl,Jasmine, etc. Robert Kuok was then one of the biggest dealers of rice. Mahathir, in pursuit of the NEP policy, instituted the requirement of obtaining APs for the import of the most commodities. The import of Chinese oranges during the CNY festive period was included in this exercise.Shortly after, the rice market was also targeted by the setting up of Bernas National Bhd. to oversee this policy. Import permits held by the Chinese were rescinded with Bernas being replaced as the sole importer instead. The price of rice was then dictated by Bernas henceforth. All production of padi must only be delivered and sold to Bernas.
Bernas was originally a Government entity. Later, it was divested to Rosmah’s family connections. Having taken over this monopoly, Bernas began to wrest control of wholesale distribution market of this important commodity. Robert Kuok saw through the evil intents of the Government policies and sold off to venture elsewhere.
Not all other rice dealers had his type of potentials and thus had to soldier on despite the mounting harassment and exploitations by Bernas.
In the 90s, Bernas started to absorb the other Chinese rice merchants who had managed to sustain such encroachments thus far. Supplies can be obtained only through Bernas.
After a lapse of another decade, most of the Chinese rice dealers had had to sell off. The remaining one of note is Hock Ju Co.Ltd. the owner of which, Mr. Khoo, stood steadfastly his ground.
The reasons why Bernas could so easily take over the Chinese companies are twofold, viz. (1) the lifeline of supply is solely in their hands and (2) the lack of trading capital of the Chinese merchants.
Bernas would extend credit line to the rice merchants and allowed the credits to accumulate to the tune of million of ringgits which amount eventually had to be settled in the form of shares exchange to Bernas. The one who refused to surrender to Bernas was Hock Ju Edar. It had prepared itself well for this eventuality and its boss is the leader of the Malaysian Rice Merchant Association.
In 2006, Bernas applied pressure on this company by letting it be known that Bernas was interested in acquiring 51 per cent shares of the company. It assured Hock Ju that it will not face rice supplies shortages for its milling operations resulting from this deal.
The other condition was that the company, upon it becoming a part of Bernas, would have to contribute in the million of ringgits to the coffer of BN once every 5 years during national election time. The boss of Hock Ju forthwith rejected the offer because he did not relish the thought of losing his company which he had toiled and built up through decades so easily and undeservedly.
The other condition was that the company, upon it becoming a part of Bernas, would have to contribute in the million of ringgits to the coffer of BN once every 5 years during national election time. The boss of Hock Ju forthwith rejected the offer because he did not relish the thought of losing his company which he had toiled and built up through decades so easily and undeservedly.
The matter concerning the political contributions was particularly meaningless to him since he had been running his business scrupulously with no political affiliation whatever.
Not willing to let the matter rest, Bernas officials purposely curtailed his orders for supply of rice by giving lame reasons for such shortages.
During the periods of rice shortages, price fluctuations always favoured the Bernas connected companies.
Hock Ju had to deposit with Bernas a banker’s Letter of Guarantee of Ringgit 5 million in lieu of the rice supplies. Suddenly, Bernas informed Hock Ju that the LC had to be redeemed in the form of cash within a fortnight. With the support of the bank and its own resources, Hock Ju managed to overcome this problem temporarily.
However, will Bernas cease to harass Hock Ju further with their sinister intentions? The boss of Hock Ju personally feels that he might not be able to hold on much longer against the might of the evil forces and thus become the last vestige of his kind…!!!
You can help by buying the Hock Ju Edar brands, Thai King, Dragon and Floral.
An aromatic rice grown in Thailand. It has a flavor and aroma, and a soft, moist texture that clings together. Recommended use for Chinese & Thai restaurants, delicacies, porridge, chicken rice, fried rice and Chinese cuisine, home delicacies. 2. Thai King - Gred : Super Wangi AAA - Texture : Soft and Aromatic - Origin : Thailand - Packing : 5kg, 10kg
3. Thai Majesty - Gred : Super Wangi AAA - Texture : Medium Soft and Aromatic - Origin : Thailand - Packing : 10kg
5. Fiona - Gred : Super Wangi - Texture : Medium Soft and Mild Aromatic - Origin : Thailand - Packing : 10kg
6. Singa - Gred : Super Wangi - Texture : Medium Soft and Mild Aromatic - Origin : Thailand - Packing : 10kg
An medium hard & soft aromatic Thai White Rice. Recommended use for home and restaurants delicacies, local style fried rice, Malay and Thai delicacies. 1. Siam Super - Gred : Super Siam - Texture : Soft - Origin : Thailand - Packing : 5kg, 10kg
2. Thai King - Gred : 100% Super Siam - Texture : Medium Hard & Soft - Origin : Thailand - Packing : 5kg, 10kg
In my personal opinion, Malaysia is a beautiful country but ruined by a handful of greedy people. The Malays, Chinese, Indians, etc could live harmoniously and build this country if given a chance. At the rate this is going, we are no different from the apartheid regime previously in south Africa. So, that's politics!
Back to padiberas, its a monopoly. So any business that holds a monopoly and care for shareholders (thru dividends, rights issue, etc) then its a winner. That, is investment! Look out for opportunity to get in the price u want. For monopolies, research the YTD high & low and enter appropriately. Monopolies usually does not fluctuatate too much in price! Namo may have hit something in his last post :)
Anwar Ibrahim is not rated very highly to me! He and his sidekick admin doesnt care who they trample to get their way. Either way, we are screwed unless we have another clean Malay leader/party that could come tthru the ranks and take the lead. Not so much into politics but from an investment point of view, stocks will climb if BN takes the GE13. Many investors in this ccountry held the view to "better work with the devil that we know than the angel we don't"!
Reiteration: I don't give a hoot who wins in the GE. May many years travelling tells me no government is perfect and one has to make all contingency for oneself. One could learn from the likes of Robert Kiosk although he states its for lower tax purposes. Bought my house in UK, Australia and Thailand already. Third choice may be a no-brainer I know. Unlike Kuok, mine is for stress purposes LOL
Solid business - selling essential product , rice is a staple for asian. Whether good time or bad time, we still need to eat rice. Unless rice can be replaced with potatoes, cassava or other grains, then it is time to reconsider this counter. Otherwise, business is highly defensive in nature.
I notice this under the income statement: Revenue - Changes in inventory of finishes goods and work in progress = RM (219,544,000.00). This is the significant figure that made the profit to slump.
However, under the Note 15 : It is mentioned the lower profit is due to higher cost of imported rice sold and operating cost.
Still cannot relate the above in the report....maybe need to drop investor relation an email or a call for clarification.
The Company wishes to announce that it has on 28 February 2013 received a notice of the unconditional take-over offer from the Joint Offerors through Maybank IB to acquire all the remaining ordinary shares of RM1.00 each in Bernas (“Bernas Shares”) not already owned by the Joint Offerors and Tradewinds (M) Berhad,
being the person acting in concert with the Joint Offerors (“Offer Shares”) for a cash offer price of RM3.70 per Bernas Share (“Offer”).
Should not support this company as they monopoly your daily "rice". After they have force so many rice companies to sell to them they have increase the price of rice....
They monopoly daily rice mean that the share price will continue grow due to BERNAS ard King of ''rice'' in MSIA....so can create some earning of it...:)
FR2 = Financial Report II, my lecturer just ask the class to find all key ratios. But can any one here please teach me how to deal with it? Should refer to "GROUP" or "COMPANY", the lecturer said "你说呢?"
We don't know baru go to study we paid high tuition fee to the college........ 到底用group 还是company??
那些profit margin 是不是只要 (sales-cost of good sales) / (sales) ?? 不过bernas的report 是用raw materials and consumables, 是不是COGS???
Gross profit = Revenue - Cost of Good sold Cost of Good Sold= Cost of good manufactured (Work in progress)- closing finish good inventory
From bernas Jun 2013 Report:
Revenue=879,898 COGS= Cost of good manufactured - closing finish good inventory COGM = work in progress & change in inventory (16,477 ) - end of inventory (722,486) = 879,898 + 16,477 - 722,486 =173,889 (Gross profit)
Padiberas Nasional Bhd's (Bernas) proposed delisting was opposed by 155 shareholders at its EGM on Monday. Bernas said the 155 shareholders who voted against the special resolution represented 70.45% of shareholders of Bernas present in person or by proxy and had voted...thestar
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 5911 views | 5 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
chong
3,074 posts
Posted by chong > 2012-04-30 07:04 | Report Abuse
A STORY OF RICE (MONOPOLY)!
Do you remember Mossino vs Gardenia?
And now Hock Ju Edar brands vs Rice Monopoly!
An interesting article below:
BUY Hock Ju Edar brands, Thai King, Dragon and go
against the RICE MONOPOLY
Briefly, this article sets out to describe how BN Govt., using the legislation and economic powers, to erode and eventually take over the rice milling and distribution businesses of the Chinese held
companies.In the eighties, the rice market was mainly controlled by the Chinese carrying such brand names, e.g. Dragon and Pearl,Jasmine, etc. Robert Kuok was then one of the biggest dealers of rice. Mahathir, in pursuit of the NEP policy, instituted the requirement of obtaining APs for the
import of the most commodities. The import of Chinese oranges during the CNY festive period was included in this exercise.Shortly after, the rice market was also targeted by the setting up of Bernas National Bhd. to oversee this policy. Import permits held by the Chinese were rescinded with Bernas being replaced as the sole importer instead. The price of rice was then dictated by Bernas
henceforth. All production of padi must only be delivered and sold to Bernas.
Bernas was originally a Government entity. Later, it was divested to Rosmah’s family connections. Having taken over this monopoly, Bernas began to wrest control of wholesale distribution market of this important commodity. Robert Kuok saw through the evil intents of the Government policies and sold off to venture elsewhere.
Not all other rice dealers had his type of potentials and thus had to soldier on despite the mounting harassment and exploitations by Bernas.
In the 90s, Bernas started to absorb the other Chinese rice merchants who had managed to sustain such encroachments thus far. Supplies can be obtained only through Bernas.
After a lapse of another decade, most of the Chinese rice dealers had had to sell off. The remaining one of note is Hock Ju Co.Ltd. the owner of which, Mr. Khoo, stood steadfastly his ground.
The reasons why Bernas could so easily take over the Chinese companies
are twofold, viz.
(1) the lifeline of supply is solely in their hands and
(2) the lack of trading capital of the Chinese merchants.
Bernas would extend credit line to the rice merchants and allowed the credits to accumulate to the tune of million of ringgits which amount eventually had to be settled in the form of shares exchange to Bernas. The one who refused to surrender to Bernas was Hock Ju Edar. It had prepared itself well for this eventuality and its boss is the leader of the Malaysian Rice Merchant Association.
In 2006, Bernas applied pressure on this company by letting it be known that Bernas was interested in acquiring 51 per cent shares of the company. It assured Hock Ju that it will not face rice supplies shortages for its milling operations resulting from this deal.
The other condition was that the company, upon it becoming a part of Bernas, would have to contribute in the million of ringgits to the coffer of BN once every 5 years during national election time. The boss of Hock Ju forthwith rejected the offer because he did not relish the thought of losing his company which he had toiled and built up through decades so easily and
undeservedly.
...to continue