current dividend at least 5%? is it good to hold it for long term? as seems like too many competitors...anyway I am holding a lot of this share just thinking whether shld top up more or not...:)
Yistock brother,tks you for more good comments, buy buy,property profit 10m(eps=3,2 sen) will coming at Q3(5m) and Q4(5m),haha,chance to correct more rm1.37
Pwroot tongkat ali is the most famous among others....... I don't believe it not able to compete..... I guess somebody pressing down the price.....bonus issue might be coming.......
Dato How Say Swee has bought at RM1.50 in latest director dealing. If he has no confidence in Poweroot why is he buying at high price? Beside this he has even bought even more RM2 if you check carefully all Bursa announcement.
是否看到power root Rm1.43的投资价值? Business NewsHome › Business › Business News
Overseas markets, notable Mideast and North Africa, now account for 32% of total revenue Saturday, 17 May 2014 By: DANIEL KHOO
THE Middle East and North African (MENA) region is turning out to be huge success for Power Root Bhd, the maker of “Tongkat Ali”-flavoured coffee drinks. Sales to the MENA market, where Power Root first ventured into back in 2005-2006, have grown by more than 100% since three years ago. Exports now account for 32% of its total revenue, compared with just 5.5% when the company was first listed on Bursa Malaysia in 2007. “The MENA region contributes approximately 23% while Singapore accounted for 4% of total sales in the financial year ended Feb 28, 2014 (FY14),” its executive director, See Thuan Po, tells StarBizWeek in a recent interview. He says that Power Root’s Alicafe brand has been doing well in the MENA region and remains the main driver of its sales there. “The product taste appeals to them and we also have concerted marketing and promotional activities there. Export countries from MENA region broke even around 2010. Thereafter, it contributed positively to the group,” he adds. The strong exports have nudged Power Root to a healthy growth in both its top line and bottom line numbers for its FY14. In FY14, its top and bottom line continued to register a commendable year-on-year growth of 9.8% to RM306.85mil and 13.6% to RM38.77mil respectively. The healthy earnings also indicate that Power Root has been able to withstand gradual rises in its raw material prices, which had faced the company for the last few years. The company had said before that its healthy margins were the reason why it had been able to achieve that. Power Root now plans to start its second overseas manufacturing plant in the United Arab Emirates that will help cater to the growing demand from the MENA region. “The plant will cost US$15mil-US$16mil (RM48.35mil-RM51.58mil) and will provide an initial capacity of 100,000 cartons per month. We will commence building the plant once certain sales milestones are achieved,” See says. It is in the company’s hopes that this plant will eventually minimise handling and logistics costs as its prospects in the MENA region grow. At present, its factory in Johor Baru caters to all needs, with a capacity to produce 150,000 cartons a month for its instant products segment and 160,000 cartons a month for its ready-to-drink can beverages. Its instant products segment consists of mostly three-in-one and five-in-one drink mixes such as the Alicafe and Alitea range while the ready-to-drink can beverages consists of the Extra Power Root, Ginseng Tongkat Ali and the Per’l Kacip Fatimahrange. According to See, another reason why Power Root has been able to get a handle on its cost structure is that it has embarked on improving key processes and personnel. “Operational efficiency can be attained through better procurement management, inventory management as well as production planning,” he says. Its beverage mix requires three main key raw ingredients – sugar, coffee and creamer – that had seen price hikes in the past two years. “We do not hedge but we do take positions through pre-agreed prices with our suppliers where the prices are locked in together with the quantity for the raw material.” Moving forward, the company says it will try its best to maintain profit margins with more product launches planned this year and increasing sales of its Ah Huat White Coffee product, that presently constitutes 15%-16% of total sales.
The company will further target marketing the Ah Huat White Coffee to other Asian countries, noting that the product is only around 1½ years old with further room for growth moving ahead. Power Root, which was listed at an IPO price of RM1.48, presently trades at around 15 times its FY14 earnings and that is at a slight discount to some of its close Bursa Malaysia-listed comparables such as Oldtown Bhd (19.01) and Carlsberg Brewery Malaysia Bhd (20.41). It is, however, on par or trades at a slight premium to other comparables such as Spritzer Bhd (12.4) and Guinness Anchor Bhd (14.37). Power Root also provides a decent dividend yield of some 4.5% according toBloomberg’s statistics with a trending net cash position of RM24.23mil and a rising net assets per share figure which rose to 73 sen from 68 sen a year ago. A notable development in the company’s shareholding is that Koperasi Permodalan Felda Malaysia Bhd (KPF) had recently pared down its shareholding in the company. KPF had emerged as one of the largest shareholders in Power Root, buying into the company since its IPO and holding as much as 20% of the company a few years ago. Over the last few months, KPF has trimmed down its stake to 7.71% of Power Root and is believed to have made handsome capital gains from this investment. A fund manager who owns stock in the company says he views the stock favourably due to its positive growth prospects and its attractiveness as a consumer play. Power Root’s controlling shareholders are its founders Low Chee Yen, Wong Fuei Boon and How Say Swee, who collectively own about 62% of the company. Power Root’s shares have seen its ups and down after it was listed at RM1.48 in 2007. Shareholders who bought into the company at its listing had seen their value reducing significantly soon after, as Power Root’s share price had dipped to a low of 21.7 sen in 2009 on the negative impact from the global financial crisis in the United States. Power Root closed yesterday at RM2.02. Meanwhile, See also says that Power Root will enjoy a gain of around RM10mil in FY15 from its property division, where it has developed shop lots on some of its land in Pasir Gudang, Johor. 个人估计具有上升潜力,催化因素有-- a,中东广房的开展. b,具有吸引力的dy(周息率)=5%. c,上市8年未发出红股,每年赚钱,红股效应. d,股价rm1.43比IPO RM1.48还低,8年资产增加,股价沒大增长. E,2015年有产业进帳(10M),约EPS=3.2SEN贡献净利,将带动股价上升. F,公司ALICAFE,AH HUAT品牌己深入民心. G,股东買回公司股票足以见證对未来充满信心. H,PWROOT债务只有2113万,现金有6785万,扣除后还有4672万, 相等于每股15.4 sen的现金,是净现金公司,因此有能力派出高息. 投资快乐,丰衣足食.
PWROOT: Notice of Shares Buy Back - Immediate Announcement Back Date Of Buy Back Jan 22, 2015 Description Of Shares Purchased Ordinary Shares of RM0.20 each Total Number Of Shares Purchased (Units) 115,600 Minimum Price Paid For Each Share Purchased (RM) 1.390 Maximum Price Paid For Each Share Purchased (RM) 1.390 Total Consideration Paid (RM) 161,375.26 Number Of Shares Purchased Retained In Treasury (Units) 115,600 Number Of Shares Purchased Which Are Proposed To Be Cancelled (Units) 0 Cumulative Net Outstanding Treasury Shares As At To-Date (Units) 4,348,800 Adjusted Issued Capital After Cancellation (Units) 0
Beside half yearly dividend, share holders can look forward to reward of share dividend as share buy back reach 1.54% yesterday. Maybe when reach 2% can reward us 1 for 50 share dividend?
rich, I think it's better that the company reward us with bonus warrants say 1 for 1 or at least 1 for 2 whereby the company can expand further with bigger paid-up capital upon conversation of the warrants. What say u? Trade at own risk
People says competition are slowly eating their margin. But there are only few brands that stand out from the rest. Oldtown, Nescafe, Super, La Coffee. Believe that power root can sustain in the thriving market. Post GST, less people will go to starbuck, oldtown as they can see the GST in their bill. Thus instant coffee will sales will pick up then.
Date Of Buy Back Feb 06, 2015 Description Of Shares Purchased Ordinary Shares of RM0.20 each Total Number Of Shares Purchased (Units) 312,700 Minimum Price Paid For Each Share Purchased (RM) 1.470 Maximum Price Paid For Each Share Purchased (RM) 1.490 Total Consideration Paid (RM) 464,227.39 Number Of Shares Purchased Retained In Treasury (Units) 312,700 Number Of Shares Purchased Which Are Proposed To Be Cancelled (Units) 0 Cumulative Net Outstanding Treasury Shares As At To-Date (Units) 4,661,500 Adjusted Issued Capital After Cancellation (Units) 0
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....
anson938
2,020 posts
Posted by anson938 > 2015-01-15 09:27 | Report Abuse
huat ah huat ah,incoming chinese new year.......