MSM's pivot towards value-added products is crucial, says Affin Hwang ANALYST REPORTS Wednesday, 23 Oct 2019
9:06 AM MYT
KUALA LUMPUR: MSM Malaysia Holdings Bhd could see an earnings boost from 2020 on contribution from new value-added products and a recovery in sugar prices, says Affin Hwang Capital research.
It added that MSM is likely to post a weak set of results quarter-on-quarter for 3Q19 with the new Johor refinery running at 18-20% of its production capacity due to due to the weakness in raw sugar prices.
This represents a dip from the 20-30% utilisation rate in 2Q19.
However, losses are expected to narrow progressively from 4Q19 onwards owing to an increase in global sugar prices, a local average selling price revision and maiden volume orders for MSM's high margin liquid sugar and sugar premix starting October 2019, said Affin Hwang.
The research house believes the move towards value-added products as crucial given uncertainties such as a potential liberalisation of the local sugar industry and public campaigns against sugar consumption due to rising obesity rates in Southeast Asia.
"Amid the choppy industry landscape, MSM is still considering various corporate exercise proposals and strategic collaborations," it said.
if you read carefully, Q3 is going to be worse as ASP for Q3 is still low and MSM needs to service high Interest rate of the buiding the new refinery. going back the Q2 report where revenue barely covers the cost of sale on top operating expenses + loan interests, hence the disposal of the chuping land.
Read from an article that EPF is disposing off most of its retail shares due to the economic slowdown and buying power from the people as EPF is re-evaluating its retail stock exposure.
In_G2K MSM IPO price RM4.60 sometime in 2011 and went up to RM6+. After 8yrs the price down to RM0.965, just about 20% of the IPO price. The 30 ... 04/10/2019 4:50 PM
IPO awal RM4.60 jatuh sehingga RM0.965 hanya kira-kira 20%? Bukankah kira-kira 79%?
Sugars are a source of energy for the body. Simple sugars then travel through the blood stream to body cells. There they provide energy and help form proteins, or are stored for future use. The brain and red blood cells can only use glucose for energy. BUY MSM for energy muaaah
More than one billiom loans, basically is a gone case. Only selling point is NTA which can be eroded fast if anything happened as like many other non performers. Good luck.
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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....
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Posted by 7300 > 2019-10-09 00:00 | Report Abuse
teacher busy running naked with wrong stocks valuation
, dont know with skill baby will cry without sugar ...hehe
https://www.orientaldaily.com.my/news/business/2019/10/08/309664