As munchy has been sucessfully acquired, does it mean this stock has higher chance being acquired by Redsena? Hope the acquired price will boost the share up.
Pursuant to Paragraph 14.08 of Bursa Malaysia Securities Berhad Main Market Listing Requirements, the Company wishes to announce that Tan Sri Dato' Sri Koh Kin Lip, a Director of the Company, has given notice of his intention to deal in the securities of the Company during the closed period pending announcement of the Company's quarterly financial results for the period ended 31 March 2018, details of his current holdings of securities are as follows:-
Leverage Success Sdn Bhd a company controlled by the company's director which in turns control 38.04% of Cocoaland Berhad and Frazer & Neave Holding Bhd. controls 27.19, this shows that the management holds substantial interest in the company and with F&N as second largest shareholder it will definitely brings strategic synergy to Cocoaland because F&N being in the consumer industry itself will not simply invest its money for the sake of capital appreciation or dividend income.The effect of this synergy can been seen in the development and improvement of Cocoaland's business over the years
Cocoaland Bhd is on its way toward a steady and consistent growth. Cocoland is suitable for investor with a long term horizon (more than 1 year) not for those who seek instant gratification on their stock picks.
There are 2 representatives from F&N participating as board members of Cocoaland, assisting to lead long term growth and formulate strategic directions of the Company.Cocoaland currently acts as a nonexclusive contract packer for F&N to prepare, package, pack and deliver F&N’s products in Malaysia.
FY19 will see another phase of expansion for Cocoaland. This is for the company's GUMMIES! Capex committed as reported in this QR is about RM 12.8M, total projected is rm 56.1m. The Capex for the new Gummy line is RM42 M.
The revenue and profit will be elevated to another level. Could expect the share price will move in tandem. Stay invested.
Below are copy and paste from FY17 Annual Report.
"In addition to its expanding higher quality products in particular to cater for the sales growth in gummies, Cocoaland expects to commence a new gummy line project towards the second half of 2018 located in Rawang with expected capital expenditure projected at RM42.0 million. Cocoaland is also working towards to expand its gummy products in terms of new flavours and healthier ingredients to cater for demand in both local and overseas markets. Cocoaland has projected a RM56.1 million capital expenditure for FY2018 which is mainly for acquisition of plant and machinery and factory equipment. The aim is to upgrade and expand its facilities to further increase production capacity as well as capability in producing higher quality products to meet the growing demand towards naturally healthy foods and beverages. With the rising labour cost and production overheads, Cocoaland is exploring new ways to further enhance automation and workforce development in its operational and manufacturing processes to improve operational efficiencies. This in turn helps to reduce the reliance of labour force. Cocoaland is aiming for increasing cost-saving measures and higher productivity in FY2018. There will be about of US$10.0 million or RM39.0 million for use in the event of merger and acquisition opportunities. The Group is targeting manufacturers and distributors in Asian countries."
Day 39 of Fundamental Daily, YAPSS will be covering Cocoaland Holdings Berhad's fundamental via a short animated video. I hope it helps and please enjoy the video, see ya! #YAPSS #FundamentalDaily #CocoalandHoldingsBerhad
"1. New Gummy Production Line As part of plans to expand our gummy production capacity, the Group is developing the 2.6-acre Lot 28 as Lots 88 and 100 have reached an estimated 83.6% capacity for gummy production. The addition of another line for gummy production, expected to be completed in the first quarter of 2020, is part of our expansion and growth plans as the Group sees rapid revenue growth potential for gummy products (in- house brand as well as for Original Equipment Manufacturing (“OEM”)"
------ PAGE 19, AR 2018
Expansion on the way for the star products, Gummy lot 100
The NEW Fruit Gummy production line will raise the total production capacity to 14,200 MT from the present 9,200 MT, an increase of 43%. The fruit gummy accounted for approximately 50% revenue of the company and about 50% of which is derived from Export Markets.
Bright future, by just banking on the growing sales and acceptance of the gummy candy which has already established a brand name, LOT 100
Maintain BUY with unchanged TP of MYR2.70. Our TP is derived from an unchanged target 18x P/E (+1.5SD from its 5-year mean), based on 2019F’s earnings. We like Cocoaland given resilient demand for its gummy products, generous dividend payouts backed by a sturdy balance sheet, healthy cash flow generation, and proven track record. Strong brand equity in both the domestic and overseas markets should also ensure sustainability of its future earnings. Source: RHB Securities Research - 28 February 2019
Still BUY and MYR2.70 TP, 43% expected total returns. Cocoaland’s 1Q19 earnings were within expectations – they were down mainly on higher marketing expenses. Demand for its gummy and hard candy products stayed resilient, though. Cost optimisation initiatives saw some results: lower employee costs. We continue to like the stock, given its sustainable earnings on robust gummy products demand, supported by a proven track record and strong brand equity. No surprises. Cocoaland’s 1Q19 results were within our and consensus expectations, with earnings of MYR8.4m (-1.8% YoY, -12.6% QoQ) that accounted for 25% and 27% of full-year forecasts. The lower earnings were mainly attributed to higher marketing expenses and decreased other income, netting off increased revenue of MYR65.6m (+1.9% YoY, +7% QoQ). No dividend was declared. Cost optimisation bearing fruit. The manufacturing segment’s performance improved, reporting 1Q19 PBT of MYR4m (1Q18: MYR83,000 LBT) – thanks to a better product mix and lower employee costs. However, Cocoaland continued to feel the impact of sluggish demand for beverage products, dragging revenue down 9.2% YoY (-0.02% QoQ) to MYR16.9m – this offset growing demand for gummy and hard candy products. Marketing expenses a drag. The trading unit registered higher revenue of MYR48.7m (+6.3% YoY, +9.7% QoQ), as demand for gummy, snacks, and coco-pie products grew. However, higher marketing expenses from exhibition and promotional activities dragged PBT down to MYR6.5m (-52.7% YoY, +5.3% QoQ). We also note that this unit’s PBT margin dropped 12ppts when compared to 1Q18’s numbers. Key risks and forecasts. Downside risks to our recommendation and earnings forecasts include sharp rises in raw material costs and weaker consumer sentiment. A strengthening of the MYR against the USD should also negatively affect Cocoaland’s earnings. We make no changes to our forecasts. We keep our call on the stock, as we expect resilient demand for the company’s gummy products on strong brand equity to continue support earnings. We like Cocoaland for its generous dividend payouts (translating into prospective yields of 5%), backed by a sturdy balance sheet and healthy cash flow generation. There is no change to our TP, with total expected returns of 43% – this based on 2019F earnings of an unchanged 18x target P/E, +1.5SD from its 5-year mean. Source: RHB Securities Research - 23 May 2019
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
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 2959 views | 2 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....
Hafid
1,135 posts
Posted by Hafid > 2018-03-20 20:15 | Report Abuse
Heard from my friend mention Sarawak distribution do not want cocoaland product because of more expensive and less profit margin